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91_HB1805enr HB1805 Enrolled LRB9102826ACtm 1 AN ACT to create the Auction License Act, amending named 2 Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 ARTICLE 5. GENERAL PROVISIONS 6 Section 5-1. Short title. This Act may be cited as the 7 Auction License Act. 8 Section 5-5. Legislative intent. The General Assembly 9 finds that Illinois does not have the ability, without 10 legislation, to enter into reciprocal agreements with other 11 states to allow residents of Illinois to practice 12 auctioneering in other states. This body further finds that, 13 without legislation, Illinois does not have the ability to 14 evaluate the competency of persons engaged in the auction 15 business or to regulate this business for the protection of 16 the public. Therefore, it is the purpose of this Act to 17 license and regulate auctioneers. 18 Section 5-10. Definitions, as used in this Act: 19 "Advertisement" means any written, oral, or electronic 20 communication that contains a promotion, inducement, or offer 21 to conduct an auction or offer to provide an auction service, 22 including but not limited to brochures, pamphlets, radio and 23 television scripts, telephone and direct mail solicitations, 24 electronic media, and other means of promotion. 25 "Advisory Board" means the Auctioneer Advisory Board. 26 "Associate auctioneer" means a person who conducts an 27 auction, but who is under the direct supervision of, and is 28 sponsored by, a licensed auctioneer or auction firm. 29 "Auction" means the sale or lease of property, real or HB1805 Enrolled -2- LRB9102826ACtm 1 personal, by means of exchanges between an auctioneer or 2 associate auctioneer and prospective purchasers or lessees, 3 which consists of a series of invitations for offers made by 4 the auctioneer or associate auctioneer and offers by 5 prospective purchasers or lessees for the purpose of 6 obtaining an acceptable offer for the sale or lease of the 7 property, including the sale or lease of property via mail, 8 telecommunications, or the Internet. 9 "Auction contract" means a written agreement between an 10 auctioneer, associate auctioneer, or an auction firm and a 11 seller or sellers. 12 "Auction firm" means any corporation, partnership, or 13 limited liability company that acts as an auctioneer and 14 provides an auction service. 15 "Auction school" means any educational institution, 16 public or private, which offers a curriculum of auctioneer 17 education and training approved by the Office of Banks and 18 Real Estate. 19 "Auction service" means the service of arranging, 20 managing, advertising, or conducting auctions. 21 "Auctioneer" means a person or entity who, for another, 22 for a fee, compensation, commission, or any other valuable 23 consideration at auction or with the intention or expectation 24 of receiving valuable consideration by the means of or 25 process of an auction or sale at auction or providing an 26 auction service, offers, negotiates, or attempts to negotiate 27 an auction contract, sale, purchase, or exchange of goods, 28 chattels, merchandise, personal property, real property, or 29 any commodity that may be lawfully kept or offered for sale 30 by or at auction. 31 "Commissioner" means the Commissioner of the Office of 32 Banks and Real Estate or his or her designee. 33 "Director" means the Director of Auction Regulation. 34 "Goods" means chattels, movable goods, merchandise, or HB1805 Enrolled -3- LRB9102826ACtm 1 personal property or commodities of any form or type that may 2 be lawfully kept or offered for sale. 3 "Licensee" means any person licensed under this Act. 4 "Managing auctioneer" means any person licensed as an 5 auctioneer who manages and supervises licensees sponsored by 6 an auction firm or auctioneer. 7 "OBRE" means the Office of Banks and Real Estate. 8 "Person" means an individual, association, partnership, 9 corporation, limited liability company or the officers, 10 directors, or employees of the same. 11 "Pre-renewal period" means the 24 months prior to the 12 expiration date of a license issued under this Act. 13 "Sponsoring auctioneer" means the auctioneer or auction 14 firm who has issued a sponsor card to a licensed associate 15 auctioneer or auctioneer. 16 "Sponsor card" shall mean the temporary permit issued by 17 the sponsoring auctioneer certifying that the licensee named 18 thereon is employed by or associated with the sponsoring 19 auctioneer and the sponsoring auctioneer shall be responsible 20 for the actions of the sponsored licensee. 21 ARTICLE 10. LICENSING PROVISIONS 22 Section 10-1. Necessity of license; exemptions. (a) It 23 is unlawful for any person, corporation, limited liability 24 company, partnership, or other entity to conduct an auction, 25 provide an auction service, hold himself or herself out as an 26 auctioneer, or advertise his or her services as an auctioneer 27 in the State of Illinois without a license issued by OBRE 28 under this Act, except at: 29 (1) an auction conducted solely by or for a 30 not-for-profit organization for charitable purposes; 31 (2) an auction conducted by the owner of the 32 property, real or personal; HB1805 Enrolled -4- LRB9102826ACtm 1 (3) an auction for the sale or lease of real 2 property conducted by a licensee under the Real Estate 3 License Act, or its successor Acts, in accordance with 4 the terms of that Act; and 5 (4) an auction conducted by a business registered 6 as a market agency under the federal Packers and 7 Stockyards Act (7 U.S.C. 181 et seq.) or under the 8 Livestock Auction Market Law. 9 (b) Nothing in this Act shall be construed to apply to a 10 vehicle dealer licensed by the Secretary of State of 11 Illinois, or to any employee of the licensee, who is a 12 resident of the State of Illinois, while the employee is 13 acting in the regular scope of his or her employment for the 14 licensee, or to sales by or through the licensee. 15 (c) Nothing in this Act shall be construed to prohibit a 16 person under the age of 18 from selling property under $250 17 in value while under the direct supervision of a licensed 18 auctioneer. 19 Section 10-5. Requirements for auctioneer license; 20 application. Every person who desires to obtain an 21 auctioneer license under this Act shall: 22 (1) apply to OBRE on forms provided by OBRE 23 accompanied by the required fee; 24 (2) be at least 18 years of age; 25 (3) have attained a high school diploma or 26 successfully completed an equivalent course of study 27 determined by an examination conducted by the Illinois 28 State Board of Education; 29 (4) personally take and pass a written examination 30 authorized by OBRE to prove competence, including but not 31 limited to general knowledge of Illinois and federal laws 32 pertaining to personal property contracts, auctions, real 33 property, relevant provisions of Article 4 of the Uniform HB1805 Enrolled -5- LRB9102826ACtm 1 Commercial Code, ethics, and other topics relating to the 2 auction business; and 3 (5) submit to OBRE a properly completed 45-Day 4 Permit Sponsor Card on forms provided by OBRE. 5 Section 10-15. Requirements for associate auctioneer 6 license; application. Every person who desires to obtain an 7 associate auctioneer license under this Act shall: 8 (1) apply to OBRE on forms provided by OBRE 9 accompanied by the required fee; 10 (2) be at least 18 years of age; 11 (3) have attained a high school diploma or 12 successfully completed an equivalent course of study 13 determined by an examination conducted by the Illinois 14 State Board of Education; 15 (4) personally take and pass a written examination 16 authorized by OBRE to prove competence, including but not 17 limited to general knowledge of Illinois and federal laws 18 pertaining to personal property contracts, auctions, real 19 property, relevant provisions of Article 4 of the Uniform 20 Commercial Code, ethics, and other topics relating to the 21 auction business; and 22 (5) submit to OBRE a properly completed 45-day 23 permit sponsor card on forms provided by OBRE. 24 Section 10-20. Requirements for auction firm license; 25 application. Any corporation, limited liability company, or 26 partnership who desires to obtain an auction firm license 27 shall: 28 (1) apply to OBRE on forms provided by OBRE 29 accompanied by the required fee; and 30 (2) provide evidence to OBRE that the auction firm 31 has a properly licensed managing auctioneer. HB1805 Enrolled -6- LRB9102826ACtm 1 Section 10-25. Practice prior to this Act. A person who 2 has actively and lawfully practiced as an auctioneer in the 3 State of Illinois prior to the effective date of this Act may 4 obtain an auctioneer or associate auctioneer license without 5 examination provided he or she: 6 (1) is a resident of the State of Illinois; 7 (2) applies to OBRE and pays the required fees 8 within 6 months after the effective date of this Act; 9 (3) verifies that he or she has practiced as an 10 auctioneer for a period of at least 2 years prior to the 11 effective date of this Act; and 12 (4) verifies that he or she has conducted a minimum 13 of 5 auctions of real or personal property within the 2 14 years prior to the effective date of this Act. 15 Section 10-30. Expiration, renewal, and continuing 16 education. 17 (a) A license issued under this Act shall expire every 2 18 years beginning on September 30, 2001. The OBRE shall issue 19 a renewal license without examination to an applicant upon 20 submission of a completed renewal application and payment of 21 the required fee. 22 (b) The OBRE shall develop a program for continuing 23 education as established in Article 25 of this Act. No 24 auctioneer or associate auctioneer shall receive a renewal 25 license without completing 12 hours of approved continuing 26 education course work during the pre-renewal period prior to 27 the expiration date of the license from continuing education 28 schools that are approved by the OBRE, as established in 29 Article 25 of this Act. The applicant shall verify on the 30 application that he or she: 31 (1) has complied with the continuing education 32 requirements; or 33 (2) is exempt from the continuing education HB1805 Enrolled -7- LRB9102826ACtm 1 requirements because it is his or her first renewal and 2 he or she was initially licensed as an auctioneer or 3 associate auctioneer during the pre-renewal period prior 4 to the expiration date. 5 (c) A renewal applicant may request a waiver of the 6 continuing education requirements under subsection (d) of 7 this Section, but shall not practice as an auctioneer or 8 associate auctioneer until such waiver is granted and a 9 renewal license is issued. 10 (d) The Commissioner, with the recommendation of the 11 Advisory Board, may grant a renewal applicant a waiver from 12 all or part of the continuing education requirements for the 13 pre-renewal period if the applicant was not able to fulfill 14 the requirements as a result of the following conditions: 15 (1) Service in the armed forces of the United 16 States during a substantial part of the pre-renewal 17 period. 18 (2) Service as an elected State or federal 19 official. 20 (3) Service as a full-time employee of the OBRE. 21 (4) Other extreme circumstances as recommended by 22 the Advisory Board. 23 Section 10-35. Completed 45-day permit sponsor card; 24 termination by sponsoring auctioneer; inoperative status. 25 (a) No auctioneer or associate auctioneer shall conduct 26 an auction or provide an auction service without being 27 properly sponsored by a licensed auctioneer or auction firm. 28 (b) The sponsoring auctioneer or sponsoring auction firm 29 shall prepare upon forms provided by the OBRE and deliver to 30 each auctioneer or associate auctioneer employed by or 31 associated with the sponsoring auctioneer or sponsoring 32 auction firm a properly completed duplicate 45-day permit 33 sponsor card certifying that the person whose name appears HB1805 Enrolled -8- LRB9102826ACtm 1 thereon is in fact employed by or associated with said 2 sponsoring auctioneer or sponsoring auction firm. The 3 sponsoring auctioneer or sponsoring auction firm shall send 4 the original 45-day permit sponsor card, along with a valid 5 terminated license or other authorization as provided by rule 6 and the appropriate fee, to the OBRE within 24 hours after 7 the issuance of the sponsor card. It is a violation of this 8 Act for any sponsoring auctioneer or sponsoring auction firm 9 to issue a sponsor card to any auctioneer, associate 10 auctioneer, or applicant, unless the auctioneer, associate 11 auctioneer, or applicant presents in hand a valid terminated 12 license or other authorization, as provided by rule. 13 (c) An auctioneer may be self-sponsored or may be 14 sponsored by another licensed auctioneer or auction firm. 15 (d) An associate auctioneer must be sponsored by a 16 licensed auctioneer or auction firm. 17 (e) When an auctioneer or associate auctioneer 18 terminates his or her employment or association with a 19 sponsoring auctioneer or sponsoring auction firm or the 20 employment or association is terminated by the sponsoring 21 auctioneer or sponsoring auction firm, the terminated 22 licensee shall obtain from that sponsoring auctioneer or 23 sponsoring auction firm his or her license endorsed by the 24 sponsoring auctioneer or sponsoring auction firm indicating 25 the termination. The terminating sponsoring auctioneer or 26 sponsoring auction firm shall send a copy of the terminated 27 license within 5 days after the termination to the OBRE or 28 shall notify the OBRE in writing of the termination and 29 explain why a copy of the terminated license was not 30 surrendered. 31 (f) The license of any auctioneer or associate 32 auctioneer whose association with a sponsoring auctioneer or 33 sponsoring auction firm has terminated shall automatically 34 become inoperative immediately upon such termination, unless HB1805 Enrolled -9- LRB9102826ACtm 1 the terminated licensee accepts employment or becomes 2 associated with a new sponsoring auctioneer or sponsoring 3 auction firm pursuant to subsection (g) of this Section. An 4 inoperative licensee under this Act shall not conduct an 5 auction or provide auction services while the license is in 6 inoperative status. 7 (g) When a terminated or inoperative auctioneer or 8 associate auctioneer accepts employment or becomes associated 9 with a new sponsoring auctioneer or sponsoring auction firm, 10 the new sponsoring auctioneer or sponsoring auction firm 11 shall send to the OBRE a properly completed 45-day permit 12 sponsor card, the terminated license, and the appropriate 13 fee. 14 Section 10-40. Restoration. 15 (a) A licensee whose license has lapsed or expired shall 16 have 2 years from the expiration date to restore his or her 17 license without examination. The expired licensee shall make 18 application to the OBRE on forms provided by the OBRE, 19 including a properly completed 45-day permit sponsor card, 20 provide evidence of successful completion of 12 hours of 21 approved continuing education during the period of time the 22 license had lapsed, and pay all lapsed fees and penalties as 23 established by administrative rule. 24 (b) Notwithstanding any other provisions of this Act to 25 the contrary, any licensee whose license under this Act has 26 expired is eligible to restore such license without paying 27 any lapsed fees and penalties provided that the license 28 expired while the licensee was: 29 (1) on active duty with the United States Army, 30 United State Marine Corps, United States Navy, United 31 States Air Force, United States Coast Guard, the State 32 Militia called into service or training; 33 (2) engaged in training or education under the HB1805 Enrolled -10- LRB9102826ACtm 1 supervision of the United States prior to induction into 2 military service; or 3 (3) serving as an employee of the OBRE, while the 4 employee was required to surrender his or her license due 5 to a possible conflict of interest. 6 A licensee shall be eligible to restore a license under 7 the provisions of this subsection for a period of 2 years 8 following the termination of the service, education, or 9 training by providing a properly completed application and 10 45-day permit sponsor card, provided that the termination 11 was by other than dishonorable discharge and provided that 12 the licensee furnishes the OBRE with an affidavit specifying 13 that the licensee has been so engaged. 14 (c) At any time after the suspension, revocation, 15 placement on probationary status, or other disciplinary 16 action taken under this Act with reference to any license, 17 the OBRE may restore the license to the licensee without 18 examination upon the order of the Commissioner, if the 19 licensee submits a properly completed application and 45-day 20 permit sponsor card, pays appropriate fees, and otherwise 21 complies with the conditions of the order. 22 Section 10-45. Nonresident auctioneer reciprocity. 23 (a) A person holding a license to engage in auctions 24 issued to him or her by the proper authority of a state, 25 territory, or possession of the United States of America or 26 the District of Columbia that has licensing requirements 27 equal to or substantially equivalent to the requirements of 28 this State and that otherwise meets the requirements of this 29 Act may obtain a license under this Act without examination, 30 provided: 31 (1) that the OBRE has entered into a valid 32 reciprocal agreement with the proper authority of the 33 state, territory, or possession of the United States of HB1805 Enrolled -11- LRB9102826ACtm 1 America or the District of Columbia from which the 2 nonresident applicant has a valid license; 3 (2) that the applicant provides the OBRE with a 4 certificate of good standing from the applicant's 5 resident state; 6 (3) that the applicant completes and submits an 7 application as provided by the OBRE; and 8 (4) that the applicant pays all applicable fees 9 required under this Act. 10 (b) A nonresident applicant shall file an irrevocable 11 consent with the OBRE that actions may be commenced against 12 the applicant or nonresident licensee in a court of competent 13 jurisdiction in this State by the service of summons, 14 process, or other pleading authorized by the law upon the 15 Commissioner. The consent shall stipulate and agree that 16 service of the process, summons, or pleading upon the 17 Commissioner shall be taken and held in all courts to be 18 valid and binding as if actual service had been made upon the 19 applicant in Illinois. If a summons, process, or other 20 pleading is served upon the Commissioner, it shall be by 21 duplicate copies, one of which shall be retained by the OBRE 22 and the other immediately forwarded by certified or 23 registered mail to the last known business address of the 24 applicant or nonresident licensee against whom the summons, 25 process, or other pleading may be directed. 26 Section 10-50. Fees. The OBRE shall provide by 27 administrative rule for fees to be paid by applicants, 28 licensees, and schools to cover the reasonable costs of the 29 OBRE in administering and enforcing the provisions of this 30 Act. The OBRE shall provide by administrative rule for fees 31 to be collected from licensees and applicants to cover the 32 statutory requirements for funding the Auctioneer Recovery 33 Fund. The OBRE may also provide by administrative rule for HB1805 Enrolled -12- LRB9102826ACtm 1 general fees to cover the reasonable expenses of carrying out 2 other functions and responsibilities under this Act. 3 ARTICLE 15. BUSINESS PRACTICES PROVISIONS 4 Section 15-5. Representations. An auctioneer, associate 5 auctioneer, or auction firm or the sponsored licensees, 6 agents, or employees of an auctioneer or auction firm, 7 conducting an auction or providing an auction service shall 8 not: 9 (1) misrepresent a fact material to a purchaser's 10 decision to buy at or by auction; 11 (2) predict specific or immediate increases in the 12 value of any item offered for sale at auction; or 13 (3) materially misrepresent the qualities or 14 characteristics of any item offered for sale at auction. 15 Section 15-10. Auction contract. Any auctioneer, 16 associate auctioneer, or auction firm shall not conduct an 17 auction or provide an auction service, unless the auctioneer, 18 associate auctioneer, or auction firm enters into a written 19 or oral auction contract with the seller of any property at 20 auction prior to the date of the auction. The agreement 21 shall be signed by the auctioneer, associate auctioneer, or 22 auction firm conducting an auction or providing an auction 23 service and the seller or sellers, or the legal agent of the 24 seller or sellers of the property to be offered at or by 25 auction, and shall include, but not be limited to the 26 following disclosures: 27 (1) Licensees shall disclose: 28 (A) the name, license number, business 29 address, and phone number of the auctioneer, 30 associate auctioneer, or auction firm conducting an 31 auction or providing an auction service; HB1805 Enrolled -13- LRB9102826ACtm 1 (B) the fee to be paid to the auctioneer, 2 associate auctioneer, or auction firm for conducting 3 an auction or providing an auction service; and 4 (C) an estimate of the advertising costs that 5 shall be paid by the seller or sellers of property 6 at auction and a disclosure that, if the actual 7 advertising costs exceeds 120% of the estimated 8 advertising cost, the auctioneer, associate 9 auctioneer, or auction firm shall pay the 10 advertising costs that exceed 120% of the estimated 11 advertising costs or shall have the seller or 12 sellers agree in writing to pay for the actual 13 advertising costs in excess of 120% of the estimated 14 advertising costs. 15 (2) Sellers shall disclose: 16 (A) the name, address, and phone number of the 17 seller or sellers or the legal agent of the seller 18 or sellers of property to be sold at auction; and 19 (B) any mortgage, lien, or encumbrance of 20 which the seller has knowledge on any property or 21 goods to be sold or leased at or by auction. 22 Section 15-15. Supervisory duties. The sponsoring 23 auctioneer, auction firm, and managing auctioneer shall have 24 the duty and responsibility to supervise, manage, and control 25 any sponsored licensee, agent, or employee while conducting 26 an auction or providing an auction service. Any violation of 27 this Act by a sponsored licensee, agent, or employee of a 28 sponsoring auctioneer, auction firm, or managing auctioneer 29 shall be deemed to be a violation by the sponsoring 30 auctioneer, auction firm, or managing auctioneer as well as 31 by the sponsored licensee, agent, or employee. 32 Section 15-20. Associate auctioneer. An associate HB1805 Enrolled -14- LRB9102826ACtm 1 auctioneer shall not conduct an auction or provide an auction 2 service without the proper supervision of a licensed 3 auctioneer or receive compensation for conducting an auction 4 other than from a licensed auctioneer or auction firm. An 5 associate auctioneer shall not work for or receive 6 compensation from another auctioneer or an auction firm other 7 than his or her sponsoring auctioneer or sponsoring auction 8 firm without the written consent of his or her sponsoring 9 auctioneer or sponsoring auction firm. The sponsoring 10 auctioneer or sponsoring auction firm and managing auctioneer 11 shall be responsible for the actions of any sponsored 12 associate auctioneer while conducting an auction or providing 13 an auction service. 14 Section 15-25. Auction firm. No corporation, limited 15 liability company, or partnership shall be licensed without 16 being managed by a licensed auctioneer. The managing 17 auctioneer of any auction firm shall be responsible for the 18 actions of all licensed and unlicensed employees, agents, and 19 representatives of said auction firm while the firm is 20 conducting an auction or providing an auction service. 21 ARTICLE 20. DISCIPLINARY PROVISIONS 22 Section 20-5. Unlicensed practice; civil penalty. 23 (a) Any person who practices, offers to practice, 24 attempts to practice, or holds oneself out to practice as an 25 auctioneer, an associate auctioneer, an auction firm, or any 26 other licensee under this Act without being licensed under 27 this Act shall, in addition to any other penalty provided by 28 law, pay a civil fine to OBRE in an amount not to exceed 29 $10,000 for each offense as determined by the OBRE. The 30 civil fine shall be assessed by the OBRE after a hearing is 31 held in accordance with the provisions set forth in this Act HB1805 Enrolled -15- LRB9102826ACtm 1 regarding a hearing for the discipline of a license. 2 (b) The OBRE has the authority and power to investigate 3 any and all unlicensed activity pursuant to this Act. 4 (c) The civil fine shall be paid within 60 days after 5 the effective date of the order imposing the civil fine. The 6 order shall constitute a judgement and may be filed and 7 execution had thereon in the same manner from any court of 8 record. 9 (d) Conducting an auction or providing an auction 10 service in Illinois without holding a valid and current 11 license under this Act is declared to be adverse to the 12 public welfare, to constitute a public nuisance, and to cause 13 irreparable harm to the public welfare. The Commissioner, 14 the Attorney General, the State's Attorney of any county in 15 the State, or any other person may maintain an action in the 16 name of the People of the State of Illinois and may apply for 17 injunctive relief in any circuit court to enjoin the person 18 or entity from engaging in such practice. 19 Upon the filing of a verified petition in a circuit 20 court, the court, if satisfied by affidavit or otherwise that 21 the person or entity has been engaged in the practice of 22 auctioning without a valid and current license, may enter a 23 temporary restraining order without notice or bond enjoining 24 the defendant from further practice. Only the showing of 25 non-licensure, by affidavit or otherwise, is necessary in 26 order for a temporary injunction to be issued. A copy of the 27 verified complaint shall be served upon the defendant and the 28 proceedings shall thereafter be conducted as in other civil 29 cases except as modified by this Section. If it is 30 established that the defendant has been or is engaged in 31 unlawful practice, the court may enter an order or judgment 32 perpetually enjoining the defendant from further practice. 33 In all proceedings hereunder, the court, in its discretion, 34 may apportion the costs among the parties interested in the HB1805 Enrolled -16- LRB9102826ACtm 1 action, including cost of filing the complaint, service of 2 process, witness fees and expenses, court reporter charges, 3 and reasonable attorneys' fees. In case of violation of any 4 injunctive order entered under the provisions of this 5 Section, the court may summarily try and punish the offender 6 for contempt of court. These injunction proceedings shall be 7 in addition to, and not in lieu of, all penalties and other 8 remedies provided in this Act. 9 Section 20-10. Violations. The commission of a single 10 act prohibited by this Act or prohibited by the rules 11 promulgated under this Act or a violation of a disciplinary 12 order issued under this Act constitutes a violation of this 13 Act. 14 Section 20-15. Disciplinary actions; grounds. The OBRE 15 may refuse to issue or renew a license, may place on 16 probation or administrative supervision, suspend, or revoke 17 any license or may reprimand or otherwise discipline or 18 impose a civil fine not to exceed $10,000 upon any licensee 19 hereunder for any one or any combination of the following 20 causes: 21 (1) False or fraudulent representation or material 22 misstatement in furnishing information to the OBRE in 23 obtaining or seeking to obtain a license. 24 (2) Violation of any provision of this Act or the 25 rules promulgated pursuant to this Act. 26 (3) Conviction of any crime, an essential element 27 of which is dishonesty or fraud, or larceny, 28 embezzlement, or obtaining money, property, or credit by 29 false pretenses or by means of a confidence game, 30 conviction in this or another state of a crime that is a 31 felony under the laws of this State, or conviction of a 32 felony in a federal court. HB1805 Enrolled -17- LRB9102826ACtm 1 (4) Being adjudged to be a person under legal 2 disability or subject to involuntary admission or to meet 3 the standard for judicial admission as provided in the 4 Mental Health and Developmental Disabilities Code. 5 (5) Discipline of a licensee by another state, the 6 District of Columbia, a territory of the United States, a 7 foreign nation, a governmental agency, or any other 8 entity authorized to impose discipline if at least one of 9 the grounds for that discipline is the same as or the 10 equivalent to one of the grounds for discipline set forth 11 in this Act or for failing to report to the OBRE, within 12 30 days, any adverse final action taken against the 13 licensee by any other licensing jurisdiction, government 14 agency, law enforcement agency, or court, or liability 15 for conduct that would constitute grounds for action as 16 set forth in this Act. 17 (6) Engaging in the practice of auctioneering, 18 conducting an auction, or providing an auction service 19 without a license or after the license was expired, 20 revoked, suspended, or terminated or while the license 21 was inoperative. 22 (7) Attempting to subvert or cheat on the 23 auctioneer exam or any continuing education exam, or 24 aiding or abetting another to do the same. 25 (8) Directly or indirectly giving to or receiving 26 from a person, firm, corporation, partnership, or 27 association a fee, commission, rebate, or other form of 28 compensation for professional service not actually or 29 personally rendered. 30 (9) Making any substantial misrepresentation or 31 untruthful advertising. 32 (10) Making any false promises of a character 33 likely to influence, persuade, or induce. 34 (11) Pursuing a continued and flagrant course of HB1805 Enrolled -18- LRB9102826ACtm 1 misrepresentation or the making of false promises through 2 a licensee, agent, employee, advertising, or otherwise. 3 (12) Any misleading or untruthful advertising, or 4 using any trade name or insignia of membership in any 5 auctioneer association or organization of which the 6 licensee is not a member. 7 (13) Commingling funds of others with his or her 8 own funds or failing to keep the funds of others in an 9 escrow or trustee account. 10 (14) Failure to account for, remit, or return any 11 moneys, property, or documents coming into his or her 12 possession that belong to others, acquired through the 13 practice of auctioneering, conducting an auction, or 14 providing an auction service within 30 days of the 15 written request from the owner of said moneys, property, 16 or documents. 17 (15) Failure to maintain and deposit into a special 18 account, separate and apart from any personal or other 19 business accounts, all moneys belonging to others 20 entrusted to a licensee while acting as an auctioneer, 21 associate auctioneer, auction firm, or as a temporary 22 custodian of the funds of others. 23 (16) Failure to make available to OBRE personnel 24 during normal business hours all escrow and trustee 25 records and related documents maintained in connection 26 with the practice of auctioneering, conducting an 27 auction, or providing an auction service within 24 hours 28 after a request from OBRE personnel. 29 (17) Making or filing false records or reports in 30 his or her practice, including but not limited to false 31 records or reports filed with State agencies. 32 (18) Failing to voluntarily furnish copies of all 33 written instruments prepared by the auctioneer and signed 34 by all parties to all parties at the time of execution. HB1805 Enrolled -19- LRB9102826ACtm 1 (19) Failing to provide information within 30 days 2 in response to a written request made by the OBRE. 3 (20) Engaging in any act that constitutes a 4 violation of Section 2-102, 3-103, or 3-105 of the 5 Illinois Human Rights Act. 6 (21) Causing a payment from the Auction Recovery 7 Fund. 8 (22) Engaging in dishonorable, unethical, or 9 unprofessional conduct of a character likely to deceive, 10 defraud, or harm the public. 11 (23) Offering or advertising real estate for sale 12 or lease at auction without a valid broker or 13 salesperson's license under the Real Estate License Act 14 of 1983, or any successor Act, unless exempt from 15 licensure under the terms of the Real Estate License Act 16 of 1983, or any successor Act. 17 Section 20-20. Termination without hearing for failure 18 to pay taxes, child support, or a student loan. OBRE may 19 terminate or otherwise discipline any license issued under 20 this Act without hearing if the appropriate administering 21 agency provides adequate information and proof that the 22 licensee has: 23 (1) failed to file a return, to pay the tax, 24 penalty, or interest shown in a filed return, or to pay 25 any final assessment of tax, penalty, or interest, as 26 required by any tax act administered by the Illinois 27 Department of Revenue until the requirements of the tax 28 act are satisfied; 29 (2) failed to pay any court ordered child support 30 as determined by a court order or by referral from the 31 Illinois Department of Public Aid; or 32 (3) failed to repay any student loan or assistance 33 as determined by the Illinois Student Assistance HB1805 Enrolled -20- LRB9102826ACtm 1 Commission. If a license is terminated or otherwise 2 disciplined pursuant to this Section, the licensee may 3 request a hearing as provided by this Act within 30 days 4 of notice of termination or discipline. 5 Section 20-25. Investigation. OBRE may investigate the 6 actions or qualifications of any person or persons holding or 7 claiming to hold a license under this Act, who shall 8 hereinafter be called the respondent. 9 Section 20-30. Consent orders. Notwithstanding any 10 provisions concerning the conduct of hearings and 11 recommendations for disciplinary actions, OBRE has the 12 authority to negotiate agreements with licensees and 13 applicants resulting in disciplinary consent orders. The 14 consent orders may provide for any form of discipline 15 provided for in this Act. The consent orders shall provide 16 that they were not entered into as a result of any coercion 17 by OBRE. Any consent order shall be accepted by or rejected 18 by the Commissioner in a timely manner. 19 Section 20-35. Subpoenas; attendance of witnesses; 20 oaths. 21 (a) OBRE shall have the power to issue subpoenas ad 22 testificandum (subpoena for documents) and to bring before it 23 any persons and to take testimony, either orally or by 24 deposition or both, with the same fees and mileage and in the 25 same manner as prescribed in civil cases in the courts of 26 this State. OBRE shall have the power to issue subpoenas 27 duces tecum and to bring before it any documents, papers, 28 files, books, and records with the same costs and in the same 29 manner as prescribed in civil cases in the courts of this 30 State. 31 (b) Any circuit court may, upon application of OBRE or HB1805 Enrolled -21- LRB9102826ACtm 1 its designee or of the applicant, licensee, or person holding 2 a certificate of licensure against whom proceedings under 3 this Act are pending, enter an order compelling the 4 enforcement of any OBRE subpoena issued in connection with 5 any hearing or investigation. 6 (c) The Commissioner or his or her designee or the Board 7 shall have power to administer oaths to witnesses at any 8 hearing that OBRE is authorized to conduct and any other 9 oaths authorized in any Act administered by OBRE. 10 Section 20-40. Hearings; record of hearings. 11 (a) OBRE shall have the authority to conduct hearings 12 before the Advisory Board on proceedings to revoke, suspend, 13 place on probation or administrative review, reprimand, or 14 refuse to issue or renew any license under this Act or to 15 impose a civil penalty not to exceed $10,000 upon any 16 licensee under this Act. 17 (b) OBRE, at its expense, shall preserve a record of all 18 proceedings at the formal hearing of any case involving the 19 discipline of any license under this Act. The notice of 20 hearing, complaint and all other documents in the nature of 21 pleadings and written motions filed in the proceedings, the 22 transcript of testimony, the report of the Board, and the 23 order of OBRE shall be the record of proceeding. At all 24 hearings or prehearing conference, OBRE and the respondent 25 shall be entitled to have a court reporter in attendance for 26 purposes of transcribing the proceeding or prehearing 27 conference. 28 Section 20-45. Notice. OBRE shall (i) notify the 29 respondent in writing at least 30 days prior to the date set 30 for the hearing of any charges made and the time and place 31 for the hearing of the charges to be heard under oath and 32 (ii) inform the respondent that, upon failure to file an HB1805 Enrolled -22- LRB9102826ACtm 1 answer before the date originally set for the hearing, 2 default will be taken against the respondent and the 3 respondent's license may be suspended, revoked, or otherwise 4 disciplined as OBRE may deem proper before taking any 5 disciplinary action with regard to any license under this 6 Act. 7 If the respondent fails to file an answer after receiving 8 notice, the respondent's license may, in the discretion of 9 OBRE, be revoked, suspended, or otherwise disciplined as 10 deemed proper, without a hearing, if the act or acts charged 11 constitute sufficient grounds for such action under this Act. 12 At the time and place fixed in the notice, OBRE shall 13 proceed to hearing of the charges and both the respondent and 14 the complainant shall be accorded ample opportunity to 15 present in person or by counsel such statements, testimony, 16 evidence, and argument as may be pertinent to the charges or 17 any defense thereto. 18 Section 20-50. Board's findings of fact, conclusions of 19 law, and recommendation to the Commissioner. At the 20 conclusion of the hearing, the Advisory Board shall present 21 to the Commissioner a written report of its findings of 22 facts, conclusions of law, and recommendations regarding 23 discipline or a fine. The report shall contain a finding 24 whether or not the accused person violated this Act or failed 25 to comply with the conditions required in this Act. The 26 Advisory Board shall specify the nature of the violation or 27 failure to comply and shall make its recommendations to the 28 Commissioner. 29 If the Commissioner disagrees in any regard with the 30 report of the Advisory Board, the Commissioner may issue an 31 order in contravention of the report. The Commissioner shall 32 provide a written report to the Advisory Board on any 33 deviation and shall specify with particularity the reasons HB1805 Enrolled -23- LRB9102826ACtm 1 for that action in the final order. 2 Section 20-55. Motion for rehearing; rehearing. In any 3 hearing involving the discipline of a license, a copy of the 4 Advisory Board's report shall be served upon the respondent 5 by OBRE, either personally or as provided in this Act for the 6 service of the notice of hearing. Within 20 calendar days 7 after the service, the respondent may present to OBRE a 8 motion in writing for a rehearing, which shall specify the 9 particular grounds for rehearing. 10 If no motion for rehearing is filed, then upon the 11 expiration of the time specified for filing a motion, or if a 12 motion for rehearing is denied, then upon denial, the 13 Commissioner may enter an order in accordance with the 14 recommendations of the Advisory Board, except as provided for 15 in this Act. If the respondent orders a transcript of the 16 record from the reporting service and pays for it within the 17 time for filing a motion for rehearing, the 20 calendar day 18 period within which a motion for rehearing may be filed shall 19 commence upon the delivery of the transcript to the 20 respondent. 21 Whenever the Commissioner is not satisfied that 22 substantial justice has been done in the hearing or in the 23 Advisory Board's report, the Commissioner may order a 24 rehearing by the same. 25 Section 20-60. Order; certified copy. An order or a 26 certified copy of an order, over the seal of OBRE and 27 purporting to be signed by the Commissioner or his or her 28 designee, shall be prima facie proof that: 29 (1) the signature is the genuine signature of the 30 Commissioner or his or her designee; 31 (2) the Commissioner is duly appointed and 32 qualified; and HB1805 Enrolled -24- LRB9102826ACtm 1 (3) the Advisory Board is duly appointed and 2 qualified. 3 Section 20-65. Restoration of license. At any time 4 after the suspension or revocation of any license, OBRE may 5 restore the license to the accused person upon the written 6 recommendation of the Advisory Board, unless after an 7 investigation and a hearing the Advisory Board determines 8 that restoration is not in the public interest. 9 Section 20-70. Surrender of license. Upon the 10 revocation or suspension of any license the licensee shall 11 immediately surrender the license to OBRE. If the licensee 12 fails to do so, OBRE shall have the right to seize the 13 license. 14 Section 20-75. Administrative Review Law. All final 15 administrative decisions of OBRE are subject to judicial 16 review under the Administrative Review Law and its rules. 17 The term "administrative decision" is defined as in Section 18 3-101 of the Code of Civil Procedure. 19 Proceedings for judicial review shall be commenced in the 20 circuit court of the county in which the party applying for 21 review resides, but if the party is not a resident of this 22 State, the venue shall be in Cook or Sangamon County. 23 Pending final decision on the review, the acts, orders, 24 sanctions, and rulings of OBRE regarding any license shall 25 remain in full force and effect, unless modified or suspended 26 by a court order pending final judicial decision. OBRE shall 27 not be required to certify any record to the court, file any 28 answer in court, or otherwise appear in any court in a 29 judicial review proceeding, unless there is filed in the 30 court, with the complaint, a receipt from OBRE acknowledging 31 payment of the costs of furnishing and certifying the record. HB1805 Enrolled -25- LRB9102826ACtm 1 Failure on the part of the plaintiff to file a receipt in 2 court shall be grounds for dismissal of the action. 3 Section 20-80. Summary suspension. The Commissioner may 4 temporarily suspend any license pursuant to this Act, without 5 hearing, simultaneously with the institution of proceedings 6 for a hearing provided for in this Act, if the Commissioner 7 finds that the evidence indicates that the public interest, 8 safety, or welfare requires emergency action. In the event 9 that the Commissioner temporarily suspends any license 10 without a hearing, a hearing shall be held within 30 calendar 11 days after the suspension has begun. The suspended licensee 12 may seek a continuance of the hearing during which the 13 suspension shall remain in effect. The proceeding shall be 14 concluded without appreciable delay. 15 Section 20-85. Action for compensation; allegation and 16 proof of license. No action or counterclaim shall be 17 maintained by any person in any court in this State with 18 respect to any agreement, contract, or services for which a 19 license is required by this Act or to recover the agreed 20 price or any compensation under any such agreement or for 21 such services for which a license is required by this Act 22 without alleging and proving that the person had a valid 23 license at the time of making such agreement or doing such 24 work. 25 Section 20-90. Cease and desist orders. OBRE may issue 26 cease and desist orders to persons who engage in activities 27 prohibited by this Act. Any person in violation of a cease 28 and desist order obtained by OBRE is subject to all of the 29 remedies provided by law. 30 Section 20-95. Returned checks; fine. A person who HB1805 Enrolled -26- LRB9102826ACtm 1 delivers a check or other payment to OBRE that is returned to 2 OBRE unpaid by the financial institution upon which it is 3 drawn shall pay to OBRE, in addition to the amount already 4 owed to OBRE, a fee of $50. If the check or other payment 5 was for issuance of a license under this Act and that person 6 conducts an auction or provides an auction service, that 7 person may be subject to discipline for unlicensed practice. 8 OBRE shall notify the person that his or her check has been 9 returned and that the person shall pay to OBRE by certified 10 check or money order the amount of the returned check plus 11 the $50 fee within 30 calendar days after the date of the 12 notification. If, after the expiration of 30 calendar days 13 of the notification, the person has failed to submit the 14 necessary remittance, OBRE shall automatically terminate the 15 license or deny the application without a hearing. If, after 16 termination or denial, the person seeks a license, he or she 17 shall petition OBRE for restoration and he or she may be 18 subject to additional discipline or fines. The Commissioner 19 may waive the fines due under this Section in individual 20 cases where the Commissioner finds that the fines would be 21 unreasonable or unnecessarily burdensome. 22 ARTICLE 25. SCHOOL AND CONTINUING EDUCATION PROVISIONS 23 Section 25-5. Continuing education. 24 (a) For each pre-renewal period, each auctioneer and 25 associate auctioneer who makes application to renew his or 26 her license must successfully complete auction continuing 27 education courses approved by the Advisory Board and OBRE 28 from a school approved by the Advisory Board and OBRE. 29 (b) Each renewal applicant shall successfully complete 30 12 hours of continuing education, of which at least 6 hours 31 shall be mandatory core subjects in the following categories: 32 (1) Illinois statutes and rules governing HB1805 Enrolled -27- LRB9102826ACtm 1 auctioneering; 2 (2) federal statutes and regulations governing 3 auctioneering; 4 (3) auctioneering ethics; 5 (4) escrow and trust accounts; 6 (5) contracts; and 7 (6) other subject matter approved by the Board and 8 established by rule. 9 (c) Each renewal applicant may satisfy the remaining 6 10 hours of continuing education from the mandatory core 11 subjects from the categories as provided in subsection (b) or 12 successfully complete an additional 6 hours of continuing 13 education in the following elective subject categories: 14 (1) agency; 15 (2) business courses related to auctioneering; 16 (3) real estate related courses; 17 (4) auction management; 18 (5) bid calling; 19 (6) public speaking; 20 (7) advertising; 21 (8) specialty auction courses; or 22 (9) other subject matter approved by the Board and 23 established by rule. 24 (d) Every licensee shall personally take and pass an 25 examination after each continuing education course, as 26 provided by rule. For the purposes of this Section, 70% 27 shall be deemed a passing score. 28 Section 25-10. School license; requirements; 29 application. 30 (a) Only schools approved by the Board and OBRE may 31 provide approved continuing education. 32 (b) Schools seeking to be approved as continuing 33 education schools shall provide satisfactory proof of the HB1805 Enrolled -28- LRB9102826ACtm 1 following: 2 (1) a sound financial base for establishing, 3 promoting, and delivering the necessary courses; 4 (2) a sufficient number of qualified instructors; 5 (3) adequate support personnel to assist with 6 administrative matters and technical assistance; 7 (4) a written policy dealing with procedures for 8 the management of grievances and fee refunds; 9 (5) a qualified school administrator, who is 10 responsible for the administration of the school and the 11 actions of instructors; and 12 (6) any other requirements as provided by rule. 13 (c) All schools shall provide each successful course 14 participants with a certificate of completion signed by the 15 school administrator containing the following information: 16 (1) the name, address, and license number of the 17 school; 18 (2) the name, address, social security number, and 19 license number of the successful participant; 20 (3) the name of the course, which describes the 21 subject matter thereof; 22 (4) the number of approved credit hours and whether 23 the course is from the mandatory or elective category; 24 (5) the date the course was completed; and 25 (6) other information as required and provided by 26 rule. 27 (d) All schools shall provide to OBRE a monthly roster 28 of all successful participants containing: 29 (1) the name, address, and license number of the 30 school; 31 (2) the name, address, social security, and license 32 number of the successful participants; 33 (3) the name of the course, which describes the 34 subject matter thereof, and the license number of the HB1805 Enrolled -29- LRB9102826ACtm 1 course; 2 (4) the number of approved credit hours and whether 3 the course is from the mandatory or elective category; 4 (5) the date the course was completed; and 5 (6) other information as required and in a format 6 as provided by rule. 7 (e) All schools shall make application to OBRE on forms 8 provided by OBRE and pay the appropriate fee for a school 9 license. A school license shall expire on December 31 of 10 each odd numbered year. A school shall make application to 11 the OBRE on forms provided by OBRE and pay the appropriate 12 fee as provided by rule for a renewal license. 13 (f) A school license may be disciplined as provided by 14 rule. 15 Section 25-15. Course approval; license. A school may 16 submit courses for approval by the Advisory Board and OBRE. 17 The criteria and information for course approval shall be 18 established by rule. For each course that is approved as a 19 continuing education course, OBRE shall issue a license to 20 the school for the course. Approved course licenses shall 21 expire on December 31 of odd number years along with the 22 school license. 23 ARTICLE 30. ADMINISTRATIVE PROVISIONS 24 Section 30-5. OBRE; powers and duties. The OBRE shall 25 exercise the powers and duties prescribed by the Civil 26 Administrative Code of Illinois for the administration of 27 licensing acts and shall exercise such other powers and 28 duties as prescribed by this Act. The OBRE may contract with 29 third parties for services necessary for the proper 30 administration of this Act. HB1805 Enrolled -30- LRB9102826ACtm 1 Section 30-10. Rules. OBRE, after notifying and 2 considering the recommendations of the Advisory Board, if 3 any, shall adopt any rules that may be necessary for the 4 administration, implementation and enforcement of this Act. 5 Section 30-15. Auction Regulation Administration Fund. 6 A special fund to be known as the Auction Regulation 7 Administration Fund is created in the State Treasury. All 8 fees received by the OBRE under this Act shall be deposited 9 into the Auction Regulation Administration Fund. Subject to 10 appropriation, the moneys deposited into the Auction 11 Regulation Administration Fund shall be used by the OBRE for 12 the administration of this Act. Moneys in the Auction 13 Regulation Administration Fund may be invested and reinvested 14 in the same manner as authorized for pension funds in Article 15 14 of the Illinois Pension Code. All earnings, interest, and 16 dividends received from investment of funds in the Auction 17 Regulation Administration Fund shall be deposited into the 18 Auction Regulation Administration Fund and shall be used for 19 the same purposes as other moneys deposited in the Auction 20 Regulation Administration Fund. 21 This fund shall be created on July 1, 1999. The State 22 Treasurer shall cause a transfer of $300,000 to the Auction 23 Regulation Administration Fund from the Real Estate License 24 Administration Fund on August 1, 1999. The State Treasurer 25 shall cause a transfer of $200,000 on August 1, 2000 and a 26 transfer of $100,000 on January 1, 2002 from the Auction 27 Regulation Administration Fund to the Real Estate License 28 Administration Fund, or if there is a sufficient fund balance 29 in the Auction Regulation Administration Fund to properly 30 administer this Act, the OBRE may recommend to the State 31 Treasurer to cause a transfer from the Auction Regulation 32 Administration Fund to the Real Estate License Administration 33 Fund on a date and in an amount which is accelerated, but not HB1805 Enrolled -31- LRB9102826ACtm 1 less than set forth in this Section. In addition to the 2 license fees required under this Act, each initial applicant 3 for licensure under this Act shall pay to the OBRE an 4 additional $100 for deposit into the Auction Regulation 5 Administration Fund for a period of 2 years or until such 6 time the original transfer amount to the Auction Regulation 7 Administration Fund from the Real Estate License 8 Administration Fund is repaid. 9 Upon completion of any audit of the OBRE as prescribed by 10 the Illinois State Auditing Act, which includes an audit of 11 the Auction Regulation Administration Fund, the OBRE shall 12 make the audit open to inspection by any interested party. 13 Section 30-20. Auction Recovery Fund. A special fund to 14 be known as the Auction Recovery Fund is created in the State 15 Treasury. The moneys in the Auction Recovery Fund shall be 16 used by the OBRE exclusively for carrying out the purposes 17 established pursuant to the provisions of Section 30-35 of 18 this Act. 19 The sums received by the OBRE pursuant to the provisions 20 of Sections 20-5 through Sections 20-20 of this Act shall be 21 deposited into the State Treasury and held in the Auction 22 Recovery Fund. In addition to the license fees required 23 under this Act, each initial and renewal applicant shall pay 24 to the OBRE an additional $25 for deposit into the Auction 25 Recovery Fund for a period of 2 years after the effective 26 date of this Act. After such time the Auction Regulation 27 Administration Fund has totally repaid the Real Estate 28 License Administration Fund, the State Treasurer shall cause 29 a transfer of $50,000 from the Auction Regulation 30 Administration Fund to the Auction Recovery Fund annually on 31 January 1 so as to sustain a minimum balance of $400,000 in 32 the Auction Recovery Fund. If the fund balance in the 33 Auction Recovery Fund on January 1 of any year after 2002 is HB1805 Enrolled -32- LRB9102826ACtm 1 less than $100,000, in addition to the renewal license fee 2 required under this Act, each renewal applicant shall pay the 3 OBRE an additional $25 fee for deposit into the Auction 4 Recovery Fund. 5 The funds held in the Auction Recovery Fund may be 6 invested and reinvested in the same manner as funds in the 7 Auction Regulation Administration Fund. All earnings 8 received from investment may be deposited into the Auction 9 Recovery Fund and may be used for the same purposes as other 10 moneys deposited into the Auction Recovery Fund or may be 11 deposited into the Auction Education Fund as provided in 12 Section 30-25 of this Act and as established by rule. 13 Section 30-25. Auction Education Fund. A special fund 14 to be known as the Auction Education Fund is created in the 15 State Treasury. The Auction Education Fund shall be 16 administered by OBRE. Subject to appropriation, moneys 17 deposited into the Auction Education Fund may be used for the 18 advancement of education in the auction industry, as 19 established by rule. The moneys deposited in the Auction 20 Education Fund may be invested and reinvested in the same 21 manner as funds in the Auction Regulation Administration 22 Fund. All earnings received from investment shall be 23 deposited into the Auction Education Fund and may be used for 24 the same purposes as other moneys deposited into the Auction 25 Education Fund. 26 Section 30-30. Auction Advisory Board. 27 (a) There is hereby created the Auction Advisory Board. 28 The Advisory Board shall consist of 7 members and shall be 29 appointed by the Commissioner. In making the appointments, 30 the Commissioner shall give due consideration to the 31 recommendations by members and organizations of the industry, 32 including but not limited to the Illinois State Auctioneers HB1805 Enrolled -33- LRB9102826ACtm 1 Association. Four members of the Advisory Board shall be 2 licensed auctioneers, except that for the initial 3 appointments, these members may be persons without a license, 4 but who have been auctioneers for at least 5 years preceding 5 their appointment to the Advisory Board. One member shall be 6 a public member who represents the interests of consumers and 7 who is not licensed under this Act or the spouse of a person 8 licensed under this Act or who has any responsibility for 9 management or formation of policy of or any financial 10 interest in the auctioneering profession or any other 11 connection with the profession. One member shall be actively 12 engaged in the real estate industry and licensed as a broker 13 or salesperson. One member shall be the Director of Auction 14 Regulation, ex-officio, and shall serve as the Chairperson of 15 the Advisory Board. 16 (b) Members shall be appointed for a term of 4 years, 17 except that of the initial appointments, 3 members shall be 18 appointed to serve a term of 3 years and 4 members shall be 19 appointed to serve a term of 4 years, including the Director. 20 The Commissioner shall fill a vacancy for the remainder of 21 any unexpired term. Each member shall serve on the Advisory 22 Board until his or her successor is appointed and qualified. 23 No person shall be appointed to serve more than 2 terms, 24 including the unexpired portion of a term due to vacancy. To 25 the extent practicable, the Commissioner shall appoint 26 members to insure that the various geographic regions of the 27 State are properly represented on the Advisory Board. 28 (c) A majority of the Advisory Board members currently 29 appointed shall constitute a quorum. A vacancy in the 30 membership of the Advisory Board shall not impair the right 31 of a quorum to exercise all of the rights and perform all the 32 duties of the Board. 33 (d) Each member of the Advisory Board shall receive a 34 per diem stipend in an amount to be determined by the HB1805 Enrolled -34- LRB9102826ACtm 1 Commissioner. Each member shall be paid his or her necessary 2 expenses while engaged in the performance of his or her 3 duties. 4 (e) Members of the Advisory Board shall be immune from 5 suit in an action based upon any disciplinary proceedings or 6 other acts performed in good faith as members of the Advisory 7 Board. 8 (f) The Advisory Board shall meet monthly or as convened 9 by the Chairperson. 10 (g) The Advisory Board shall advise the OBRE on matters 11 of licensing and education and make recommendations to the 12 OBRE on those matters and shall hear and make recommendations 13 to the Commissioner on disciplinary matters that require a 14 formal evidentiary hearing. 15 (h) The Commissioner shall give due consideration to all 16 recommendations of the Advisory Board. 17 Section 30-35. Director of Auction Regulation. The 18 Commissioner shall appoint a Director of Auction Regulation 19 in the OBRE for a term of 4 years. The Director shall hold a 20 valid auctioneer license under this Act, which shall be 21 surrendered to OBRE during his or her appointment, except for 22 the initial appointment. During the initial appointment, the 23 Director may be a person without a license who has been an 24 auctioneer for at least 5 years and who has sufficient 25 experience and knowledge in public administration. The 26 Director of Auction Regulation shall report to the 27 Commissioner and shall do the following: 28 (1) act as Chairperson of the Advisory Board, 29 ex-officio; 30 (2) be the direct liaison between OBRE, the 31 profession; and the auction organizations and 32 associations; 33 (3) prepare and circulate to licensees such HB1805 Enrolled -35- LRB9102826ACtm 1 educational and informational material as the OBRE deems 2 necessary for providing guidance or assistance to 3 licensees; 4 (4) appoint any necessary committees to assist in 5 the performance of the functions and duties of the OBRE 6 under this Act; and 7 (5) subject to the administrative approval of the 8 Commissioner, supervise the Auction Regulation division 9 of OBRE. 10 In appointing the Director of Auction Regulation, the 11 Commissioner shall give due consideration to recommendations 12 by members and organizations of the auction industry. 13 Section 30-40. Auction Recovery Fund; recovery; actions; 14 procedures. The OBRE shall maintain an Auction Recovery Fund 15 from which any person aggrieved by an act, representation, 16 transaction, or the conduct of a duly licensed auctioneer, 17 associate auctioneer or auction firm that constitutes a 18 violation of this Act or the regulations promulgated pursuant 19 thereto or that constitutes embezzlement of money or 20 property or results in money or property being unlawfully 21 obtained from any person by false pretenses, artifice, 22 trickery, or forgery or by reason of any fraud, 23 misrepresentation, discrimination or deceit by or on the part 24 of any licensee or the unlicensed employee of any auctioneer, 25 associate auctioneer, or auction firm and that results in a 26 loss of actual cash money as opposed to losses in market 27 value, may recover. The aggrieved person may recover, by 28 order of the circuit court of the county where the violation 29 occurred, an amount of not more than $10,000 from the fund 30 for damages sustained by the act, representation, 31 transaction, or conduct, together with the costs of suit and 32 attorneys' fees incurred in connection therewith of not to 33 exceed 15% of the amount of the recovery ordered paid from HB1805 Enrolled -36- LRB9102826ACtm 1 the Fund. However, no licensed auctioneer, associate 2 auctioneer, or auction firm may recover from the Fund, unless 3 the court finds that the person suffered a loss resulting 4 from intentional misconduct. The court order shall not 5 include interest on the judgment. 6 The maximum liability against the Fund arising out of any 7 one act by any auctioneer, associate auctioneer, or auction 8 firm shall be $50,000, and the judgment order shall spread 9 the award equitably among all aggrieved persons. 10 Section 30-45. Auction Recovery Fund; collection. 11 (a) No action for a judgment that subsequently results 12 in an order for collection from the Auction Recovery Fund 13 shall be started later than 2 years after the date on which 14 the aggrieved person knew or, through the use of reasonable 15 diligence, should have known of the acts or omissions giving 16 rise to a right of recovery from the Auction Recovery Fund. 17 (b) When any aggrieved person commences action for a 18 judgment that may result in collection from the Auction 19 Recovery Fund, the aggrieved person must name as parties to 20 that action any and all individual auctioneers, associate 21 auctioneers, auction firms, or their employees or agents who 22 allegedly committed or are responsible for acts or omissions 23 giving rise to a right of recovery from the Auction Recovery 24 Fund. Failure to name these individuals as parties shall 25 preclude recovery from the Auction Recovery Fund of any 26 portion of the judgment received in the action. 27 (c) When any aggrieved person commences action for a 28 judgment that may result in collection from the Auction 29 Recovery Fund, the aggrieved person must notify OBRE in 30 writing to this effect at the time of the commencement of the 31 action. Failure to so notify OBRE shall preclude recovery 32 from the Auction Recovery Fund of any portion of the judgment 33 received in the action. After receiving notice of the HB1805 Enrolled -37- LRB9102826ACtm 1 commencement of such an action, OBRE, upon timely 2 application, shall be permitted to intervene as a party to 3 that action. 4 (d) When an aggrieved party commences action for a 5 judgment that may result in collection from the Auction 6 Recovery Fund and the court in which the action is commenced 7 enters judgment by default against the defendant and in favor 8 of the aggrieved party, the court shall, upon motion of OBRE, 9 set aside that judgment by default. After a judgment by 10 default has been set aside, OBRE shall appear as a party to 11 that action and thereafter the court shall require proof of 12 the allegations in the pleading upon which relief is sought. 13 (e) The aggrieved person shall give written notice to 14 OBRE within 30 days after the entry of any judgment that may 15 result in collection from the Auction Recovery Fund. That 16 aggrieved person shall provide OBRE 20 days written notice of 17 all supplementary proceeding so as to allow OBRE to 18 participate in all efforts to collect on the judgment. 19 (f) When any aggrieved person recovers a valid judgment 20 in any court of competent jurisdiction against any licensee 21 or an unlicensed employee or agent of any licensee on the 22 grounds of fraud, misrepresentation, discrimination, or 23 deceit, the aggrieved person may, upon the termination of all 24 proceedings, including review and appeals in connection with 25 the judgment, file a verified claim in the court in which the 26 judgment was entered and, upon 30 days written notice to OBRE 27 and to the person against whom the judgment was obtained, may 28 apply to the court for an order directing payment out of the 29 Auction Recovery Fund of the amount unpaid upon the judgment, 30 not including interest on the judgment, and subject to the 31 limitation stated in Section 30-40 of this Act. The 32 aggrieved person must set out in that verified claim and at 33 an evidentiary hearing to be held by the court that the 34 aggrieved person: HB1805 Enrolled -38- LRB9102826ACtm 1 (1) is not the spouse of the debtor or the personal 2 representative of the spouse; 3 (2) has complied with all the requirements of this 4 Section; 5 (3) has obtained a judgment stating the amount 6 thereof and the amount owing thereon, not including 7 interest thereon, at the date of the application; 8 (4) has made all reasonable searches and inquiries 9 to ascertain whether the judgment debtor possesses real 10 or personal property or other assets which may be sold or 11 applied in satisfaction of the judgment; 12 (5) has discovered no personal or real property or 13 other assets liable to be sold or applied, or has 14 discovered certain of them, describing them owned by the 15 judgment debtor and liable to be so applied, and has 16 taken all necessary action and proceeding for the 17 realization thereof, and the amount thereby realized was 18 insufficient to satisfy the judgment, stating the amount 19 so realized and the balance remaining due on the judgment 20 after application of the amount realized; 21 (6) has diligently pursued all remedies against all 22 the judgment debtors and all other persons liable to the 23 aggrieved person in the transaction for which recovery is 24 sought from the Auction Recovery Fund; 25 (7) has filed an adversary action to have the debts 26 declared non-dischargeable in any bankruptcy petition 27 matter filed by any judgment debtor or person liable to 28 the aggrieved person. The aggrieved person shall also be 29 required to prove the amount of attorney's fees sought to 30 be recovered and the reasonableness of those fees up to 31 the maximum allowed pursuant to Section 30-40 of this 32 Act. 33 (g) The court shall make an order directed to OBRE 34 requiring payment from the Auction Recovery Fund of whatever HB1805 Enrolled -39- LRB9102826ACtm 1 sum it finds to be payable upon the claim, pursuant to and in 2 accordance with the limitations contained in Section 30-40 of 3 this Act, if the court is satisfied, upon the hearing, of the 4 truth of all matters required to be shown by the aggrieved 5 person by subsection (f) of this Section and that the 6 aggrieved person has fully pursued and exhausted all remedies 7 available for recovering the amount awarded by the judgment 8 of the court. 9 (h) If the OBRE pays from the Auction Recovery Fund any 10 amount in settlement of a claim or toward satisfaction of a 11 judgment against any licensee, or employee or agent of any 12 licensee, the license of said licensee shall be automatically 13 terminated without hearing upon the issuance of a court order 14 authorizing payment from the Auction Recovery Fund. No 15 petition for restoration of the license shall be heard until 16 repayment of the amount paid from the Auction Recovery Fund 17 on their account has been made in full, plus interest at the 18 rate prescribed in Section 12-109 of the Code of Civil 19 Procedure. A discharge in bankruptcy shall not relieve a 20 person from the penalties and disabilities provided in this 21 subsection. 22 (i) If, at any time, the money deposited in the Auction 23 Recovery Fund is insufficient to satisfy any duly authorized 24 claim or portion thereof, OBRE shall, when sufficient money 25 has been deposited in the Auction Recovery Fund, satisfy such 26 unpaid claims or portions thereof, in the order that the 27 claims or portions thereof were originally filed, plus 28 accumulated interest at the rate prescribed in Section 12-109 29 of the Code of Civil Procedure. 30 Section 30-50. Contractual agreements. The OBRE may 31 enter into contractual agreements with third parties to carry 32 out the provisions of this Act. HB1805 Enrolled -40- LRB9102826ACtm 1 Section 30-55. Reciprocal agreements. The OBRE shall 2 have the authority to enter into reciprocal licensing 3 agreements with the proper authority of a state, territory, 4 or possession of the United States or the District of 5 Columbia having licensing requirements equal to or 6 substantially equivalent to the requirements of this State. 7 ARTICLE 950. AMENDATORY PROVISIONS 8 Section 950-5. The Regulatory Sunset Act is amended by 9 adding Section 4.20 as follows: 10 (5 ILCS 80/4.20 new) 11 Sec. 4.20. Act repealed on January 1, 2010. The 12 following Act is repealed on January 1, 2010: 13 The Auction License Act. 14 Section 950-10. The State Finance Act is amended by 15 adding Sections 5.490, 5.491, and 5.492 as follows: 16 (30 ILCS 105/5.490 new) 17 Sec. 5.490. The Auction Regulation Administration Fund. 18 19 (30 ILCS 105/5.491 new) 20 Sec. 5.491. The Auction Recovery Fund. 21 (30 ILCS 105/5.492 new) 22 Sec. 5.492. The Auction Education Fund. 23 Section 950-15. If and only if House Bill 902 of the 24 91st General Assembly becomes law, the Real Estate License 25 Act of 1999 is amended by changing Sections 1-10 and 5-20 as 26 follows: HB1805 Enrolled -41- LRB9102826ACtm 1 (91HB0902, Sec. 1-10) 2 Sec. 1-10. Definitions. In this Act, unless the context 3 otherwise requires: 4 "Act" means the Real Estate License Act of 1999. 5 "Advisory Council" means the Real Estate Education 6 Advisory Council created under Section 30-10 of this Act. 7 "Agency" means a relationship in which a real estate 8 broker or licensee, whether directly or through an affiliated 9 licensee, represents a consumer by the consumer's consent, 10 whether express or implied, in a real property transaction. 11 "Applicant" means any person, as defined in this Section, 12 who applies to OBRE for a valid license as a real estate 13 broker, real estate salesperson, or leasing agent. 14 "Blind advertisement" means any real estate advertisement 15 that does not include the sponsoring broker's business name 16 and that is used by any licensee regarding the sale or lease 17 of real estate, including his or her own, licensed 18 activities, or the hiring of any licensee under this Act. 19 The broker's business name in the case of a franchise shall 20 include the franchise affiliation as well as the name of the 21 individual firm. 22 "Board" means the Real Estate Administration and 23 Disciplinary Board of OBRE. 24 "Branch office" means a sponsoring broker's office other 25 than the sponsoring broker's principal office. 26 "Broker" means an individual, partnership, limited 27 liability company, corporation, or registered limited 28 liability partnership other than a real estate salesperson or 29 leasing agent who for another and for compensation either 30 directly or indirectly: 31 (1) Sells, exchanges, purchases, rents, or leases 32 real estate. 33 (2) Offers to sell, exchange, purchase, rent, or 34 lease real estate. HB1805 Enrolled -42- LRB9102826ACtm 1 (3) Negotiates, offers, attempts, or agrees to 2 negotiate the sale, exchange, purchase, rental, or 3 leasing of real estate. 4 (4) Lists, offers, attempts, or agrees to list real 5 estate for sale, lease, or exchange. 6 (5) Buys, sells, offers to buy or sell, or 7 otherwise deals in options on real estate or improvements 8 thereon. 9 (6) Supervises the collection, offer, attempt, or 10 agreement to collect rent for the use of real estate. 11 (7) Advertises or represents himself or herself as 12 being engaged in the business of buying, selling, 13 exchanging, renting, or leasing real estate. 14 (8) Assists or directs in procuring or referring of 15 prospects, intended to result in the sale, exchange, 16 lease, or rental of real estate. 17 (9) Assists or directs in the negotiation of any 18 transaction intended to result in the sale, exchange, 19 lease, or rental of real estate. 20 (10) Opens real estate to the public for marketing 21 purposes. 22 (11) Sells, leases, or offers for sale or lease 23 real estate at auction. 24 "Brokerage agreement" means a written or oral agreement 25 between a sponsoring broker and a consumer for licensed 26 activities to be provided to a consumer in return for 27 compensation or the right to receive compensation from 28 another. Brokerage agreements may constitute either a 29 bilateral or a unilateral agreement between the broker and 30 the broker's client depending upon the content of the 31 brokerage agreement. All exclusive brokerage agreements shall 32 be in writing. 33 "Client" means a person who is being represented by a 34 licensee. HB1805 Enrolled -43- LRB9102826ACtm 1 "Commissioner" means the Commissioner of Banks and Real 2 Estate or a person authorized by the Commissioner, the Office 3 of Banks and Real Estate Act, or this Act to act in the 4 Commissioner's stead. 5 "Compensation" means the valuable consideration given by 6 one person or entity to another person or entity in exchange 7 for the performance of some activity or service. 8 Compensation shall include the transfer of valuable 9 consideration, including without limitation the following: 10 (1) commissions; 11 (2) referral fees; 12 (3) bonuses; 13 (4) prizes; 14 (5) merchandise; 15 (6) finder fees; 16 (7) performance of services; 17 (8) coupons or gift certificates; 18 (9) discounts; 19 (10) rebates; 20 (11) a chance to win a raffle, drawing, lottery, or 21 similar game of chance not prohibited by any other law or 22 statute; 23 (12) retainer fee; or 24 (13) salary. 25 "Confidential information" means information obtained by 26 a licensee from a client during the term of a brokerage 27 agreement that (i) was made confidential by the written 28 request or written instruction of the client, (ii) deals with 29 the negotiating position of the client, or (iii) is 30 information the disclosure of which could materially harm the 31 negotiating position of the client, unless at any time: 32 (1) the client permits the disclosure of 33 information given by that client by word or conduct; 34 (2) the disclosure is required by law; or HB1805 Enrolled -44- LRB9102826ACtm 1 (3) the information becomes public from a source 2 other than the licensee. 3 "Confidential information" shall not be considered to 4 include material information about the physical condition of 5 the property. 6 "Consumer" means a person or entity seeking or receiving 7 licensed activities. 8 "Continuing education school" means any person licensed 9 by OBRE as a school for continuing education in accordance 10 with Section 30-15 of this Act. 11 "Credit hour" means 50 minutes of classroom instruction 12 in course work that meets the requirements set forth in rules 13 adopted by OBRE. 14 "Customer" means a consumer who is not being represented 15 by the licensee but for whom the licensee is performing 16 ministerial acts. 17 "Designated agency" means a contractual relationship 18 between a sponsoring broker and a client under Section 15-50 19 of this Act in which one or more licensees associated with or 20 employed by the broker are designated as agent of the client. 21 "Designated agent" means a sponsored licensee named by a 22 sponsoring broker as the legal agent of a client, as provided 23 for in Section 15-50 of this Act. 24 "Director" means the Director of the Real Estate 25 Division, OBRE. 26 "Dual agency" means an agency relationship in which a 27 licensee is representing both buyer and seller or both 28 landlord and tenant in the same transaction. When the agency 29 relationship is a designated agency, the question of whether 30 there is a dual agency shall be determined by the agency 31 relationships of the designated agent of the parties and not 32 of the sponsoring broker. 33 "Employee" or other derivative of the word "employee", 34 when used to refer to, describe, or delineate the HB1805 Enrolled -45- LRB9102826ACtm 1 relationship between a real estate broker and a real estate 2 salesperson, another real estate broker, or a leasing agent, 3 shall be construed to include an independent contractor 4 relationship, provided that a written agreement exists that 5 clearly establishes and states the relationship. All 6 responsibilities of a broker shall remain. 7 "Escrow moneys" means all moneys, promissory notes or any 8 other type or manner of legal tender or financial 9 consideration deposited with any person for the benefit of 10 the parties to the transaction. A transaction exists once an 11 agreement has been reached and an accepted real estate 12 contract signed or lease agreed to by the parties. Escrow 13 moneys includes without limitation earnest moneys and 14 security deposits, except those security deposits in which 15 the person holding the security deposit is also the sole 16 owner of the property being leased and for which the security 17 deposit is being held. 18 "Inoperative" means a status of licensure where the 19 licensee holds a current license under this Act, but the 20 licensee is prohibited from engaging in licensed activities 21 because the licensee is unsponsored or the license of the 22 sponsoring broker with whom the licensee is associated or by 23 whom he or she is employed is currently expired, revoked, 24 suspended, or otherwise rendered invalid under this Act. 25 "Leasing Agent" means a person who is employed by a real 26 estate broker to engage in licensed activities limited to 27 leasing residential real estate who has obtained a license as 28 provided for in Section 5-5 of this Act. 29 "License" means the document issued by OBRE certifying 30 that the person named thereon has fulfilled all requirements 31 prerequisite to licensure under this Act. 32 "Licensed activities" means those activities listed in 33 the definition of "broker" under this Section. 34 "Licensee" means any person, as defined in this Section, HB1805 Enrolled -46- LRB9102826ACtm 1 who holds a valid unexpired license as a real estate broker, 2 real estate salesperson, or leasing agent. 3 "Listing presentation" means a communication between a 4 real estate broker or salesperson and a consumer in which the 5 licensee is attempting to secure a brokerage agreement with 6 the consumer to market the consumer's real estate for sale or 7 lease. 8 "Managing broker" means a broker who has supervisory 9 responsibilities for licensees in one or, in the case of a 10 multi-office company, more than one office and who has been 11 appointed as such by the sponsoring broker of the real estate 12 firm. 13 "Medium of advertising" means any method of communication 14 intended to influence the general public to use or purchase a 15 particular good or service or real estate. 16 "Ministerial acts" means those acts that a licensee may 17 perform for a consumer that are informative or clerical in 18 nature and do not rise to the level of active representation 19 on behalf of a consumer. Examples of these acts include 20 without limitation (i) responding to phone inquiries by 21 consumers as to the availability and pricing of brokerage 22 services, (ii) responding to phone inquiries from a consumer 23 concerning the price or location of property, (iii) attending 24 an open house and responding to questions about the property 25 from a consumer, (iv) setting an appointment to view 26 property, (v) responding to questions of consumers walking 27 into a licensee's office concerning brokerage services 28 offered or particular properties, (vi) accompanying an 29 appraiser, inspector, contractor, or similar third party on a 30 visit to a property, (vii) describing a property or the 31 property's condition in response to a consumer's inquiry, 32 (viii) completing business or factual information for a 33 consumer on an offer or contract to purchase on behalf of a 34 client, (ix) showing a client through a property being sold HB1805 Enrolled -47- LRB9102826ACtm 1 by an owner on his or her own behalf, or (x) referral to 2 another broker or service provider. 3 "OBRE" means the Office of Banks and Real Estate. 4 "Office" means a real estate broker's place of business 5 where the general public is invited to transact business and 6 where records may be maintained and licenses displayed, 7 whether or not it is the broker's principal place of 8 business. 9 "Person" means and includes individuals, entities, 10 corporations, limited liability companies, registered limited 11 liability partnerships, and partnerships, foreign or 12 domestic, except that when the context otherwise requires, 13 the term may refer to a single individual or other described 14 entity. 15 "Personal assistant" means a licensed or unlicensed 16 person who has been hired for the purpose of aiding or 17 assisting a sponsored licensee in the performance of the 18 sponsored licensee's job. 19 "Pocket card" means the card issued by OBRE to signify 20 that the person named on the card is currently licensed under 21 this Act. 22 "Pre-license school" means a school licensed by OBRE 23 offering courses in subjects related to real estate 24 transactions, including the subjects upon which an applicant 25 is examined in determining fitness to receive a license. 26 "Pre-renewal period" means the period between the date of 27 issue of a currently valid license and the license's 28 expiration date. 29 "Real estate" means and includes leaseholds as well as 30 any other interest or estate in land, whether corporeal, 31 incorporeal, freehold, or non-freehold and whether the real 32 estate is situated in this State or elsewhere. 33 "Real Estate Administration and Disciplinary Board" or 34 "Board" means the Real Estate Administration and Disciplinary HB1805 Enrolled -48- LRB9102826ACtm 1 Board created by Section 25-10 of this Act. 2 "Salesperson" means any individual, other than a real 3 estate broker or leasing agent, who is employed by a real 4 estate broker or is associated by written agreement with a 5 real estate broker as an independent contractor and 6 participates in any activity described in the definition of 7 "broker" under this Section. 8 "Sponsoring broker" means the broker who has issued a 9 sponsor card to a licensed salesperson, another licensed 10 broker, or a leasing agent. 11 "Sponsor card" means the temporary permit issued by the 12 sponsoring real estate broker certifying that the real estate 13 broker, real estate salesperson, or leasing agent named 14 thereon is employed by or associated by written agreement 15 with the sponsoring real estate broker, as provided for in 16 Section 5-40 of this Act. 17 (Source: 91HB0902 as introduced.) 18 (91HB0902, Sec. 5-20) 19 Sec. 5-20. Exemptions from broker, salesperson, or 20 leasing agent license requirement. The requirement for 21 holding a license under this Article 5 shall not apply to: 22 (1) Any person, partnership, or corporation that as 23 owner or lessor performs any of the acts described in the 24 definition of "broker" under Section 1-10 of this Act with 25 reference to property owned or leased by it, or to the 26 regular employees thereof with respect to the property so 27 owned or leased, where such acts are performed in the regular 28 course of or as an incident to the management, sale, or other 29 disposition of such property and the investment therein, 30 provided that such regular employees do not perform any of 31 the acts described in the definition of "broker" under 32 Section 1-10 of this Act in connection with a vocation of 33 selling or leasing any real estate or the improvements HB1805 Enrolled -49- LRB9102826ACtm 1 thereon not so owned or leased. 2 (2) An attorney in fact acting under a duly executed and 3 recorded power of attorney to convey real estate from the 4 owner or lessor or the services rendered by an attorney at 5 law in the performance of the attorney's duty as an attorney 6 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 apartment 14 complex, when the resident manager resides on the premises, 15 the premises is his or her primary residence, and the 16 resident manager is engaged in the leasing of the property of 17 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 duties. 22 (7) Any multiple listing service or other information 23 exchange that is engaged in the collection and dissemination 24 of information concerning real estate available for sale, 25 purchase, lease, or exchange along with which no other 26 licensed activities are provided. 27 (8) Railroads and other public utilities regulated by 28 the State of Illinois, or the officers or full time employees 29 thereof, unless the performance of any licensed activities is 30 in connection with the sale, purchase, lease, or other 31 disposition of real estate or investment therein not needing 32 the approval of the appropriate State regulatory authority. 33 (9) Any medium of advertising in the routine course of 34 selling or publishing advertising along with which no other HB1805 Enrolled -50- LRB9102826ACtm 1 licensed activities are provided. 2 (10) Any resident lessee of a residential dwelling unit 3 who refers for compensation to the owner of the dwelling 4 unit, or to the owner's agent, prospective lessees of 5 dwelling units in the same building or complex as the 6 resident lessee's unit, but only if the resident lessee (i) 7 refers no more than 3 prospective lessees in any 12-month 8 period, (ii) receives compensation of no more than $1,000 or 9 the equivalent of one month's rent, whichever is less, in any 10 12-month period, and (iii) limits his or her activities to 11 referring prospective lessees to the owner, or the owner's 12 agent, and does not show a residential dwelling unit to a 13 prospective lessee, discuss terms or conditions of leasing a 14 dwelling unit with a prospective lessee, or otherwise 15 participate in the negotiation of the leasing of a dwelling 16 unit. 17 (11) Any person who is licensed without examination under 18 Section 10-25 of the Auction License Act is exempt from 19 holding a broker's or salesperson's license under this Act 20 for the limited purpose of selling or leasing real estate at 21 auction, so long as: 22 (A) that person has made application for said 23 exemption by July 1, 2000; 24 (B) that person verifies to OBRE that he or 25 she has sold real estate at auction for a period of 26 5 years prior to licensure as an auctioneer; 27 (C) the person has had no lapse in his or her 28 license as an auctioneer; and 29 (D) the license issued under the Auction 30 License Act has not been disciplined for violation 31 of those provisions of Article 20 of the Auction 32 License Act dealing with or related to the sale or 33 lease of real estate at auction. 34 (Source: 91HB0902 as introduced.) HB1805 Enrolled -51- LRB9102826ACtm 1 ARTICLE 999. EFFECTIVE DATE 2 Section 999-99. Effective date. This Act takes effect 3 on January 1, 2000, except that Sections 30-15 and 30-40 take 4 effect July 1, 1999.