Bill Text: IL HB1635 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Real Estate Appraiser Licensing Act of 2002. Defines "address of record". Requires a licensee of this Act to retain records as required by the most recent version of the USPAP and as further defined by rule. Permits the Department of Financial and Professional Regulation to disclose information and documents related to an examination or investigation of a licensee or applicant only to law enforcement officials, other regulatory agencies that have an appropriate regulatory interest as determined by the Secretary, or a party presenting a lawful subpoena to the Department. Provides that any formal complaint against a licensee filed with the Department or an order issued by the Department against a licensee or applicant shall be a public record. Authorizes the Coordinator of Real Estate Appraisal to investigate and determine the facts of a complaint, to interview witnesses, the complainant, and any licensees involved in the alleged matter, and to make a recommendation as to the findings of fact. Makes other changes. Amends the Regulatory Sunset Act to extend the Real Estate Appraiser Licensing Act of 2002 from January 1, 2012 to January 1, 2022. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB1635 Detail]

Download: Illinois-2011-HB1635-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB1635 Introduced 2/15/2011, by Rep. Robert Rita SYNOPSIS AS INTRODUCED:
5 ILCS 80/4.22
5 ILCS 80/4.32 new
225 ILCS 458/1-10
225 ILCS 458/10-20
225 ILCS 458/15-10
225 ILCS 458/15-30
225 ILCS 458/15-65 new
225 ILCS 458/25-15
225 ILCS 458/5-21 rep.
Amends the Real Estate Appraiser Licensing Act of 2002. Defines "address of record". Requires a licensee of this Act to retain records as required by the most recent version of the USPAP and as further defined by rule. Permits the Department to disclose information and documents related to an examination or investigation of a licensee or applicant only to law enforcement officials, other regulatory agencies that have an appropriate regulatory interest as determined by the Secretary, or a party presenting a lawful subpoena to the Department. Provides that any formal complaint against a licensee filed with the Department or an order issued by the Department against a licensee or applicant shall be a public record. Authorizes the Coordinator of Real Estate Appraisal to investigate and determine the facts of a complaint, to interview witnesses, the complainant, and any licensees involved in the alleged matter, and to make a recommendation as to the findings of fact. Makes other changes. Amends the Regulatory Sunset Act to extend the Real Estate Appraiser Licensing Act of 2002 from January 1, 2012 to January 1, 2022. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Regulatory Sunset Act is amended by changing
Section 4.22 and by adding Section 4.32 as follows:
(5 ILCS 80/4.22)
Sec. 4.22. Acts repealed on January 1, 2012. The following
Acts are repealed on January 1, 2012:
The Detection of Deception Examiners Act.
The Home Inspector License Act.
The Interior Design Title Act.
The Massage Licensing Act.
The Petroleum Equipment Contractors Licensing Act.
The Professional Boxing Act.
The Real Estate Appraiser Licensing Act of 2002.
The Water Well and Pump Installation Contractor's License
Act.
(Source: P.A. 95-331, eff. 8-21-07.)
(5 ILCS 80/4.32 new)
Sec. 4.32. Act repealed on January 1, 2022. The following
Act is repealed on January 1, 2022:
The Real Estate Appraiser Licensing Act of 2002.

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Section 10. The Real Estate Appraiser Licensing Act of 2002
is amended changing Sections 1-10, 10-20, 15-10, 15-30, and
25-15 and by adding Section 15-65 as follows:
(225 ILCS 458/1-10)
(Section scheduled to be repealed on January 1, 2012)
Sec. 1-10. Definitions. As used in this Act, unless the
context otherwise requires:
"Accredited college or university, junior college, or
community college" means a college or university, junior
college, or community college that is approved or accredited by
the Board of Higher Education, a regional or national
accreditation association, or by an accrediting agency that is
recognized by the U.S. Secretary of Education.
"Address of record" means the designated address recorded
by the Department in the applicant's or licensee's application
file or license file as maintained by the Department's
licensure maintenance unit. It is the duty of the applicant or
licensee to inform the Department of any change of address and
those changes must be made either through the Department's
website or by contacting the Department.
"Applicant" means person who applies to the Department for
a license under this Act.
"Appraisal" means (noun) the act or process of developing
an opinion of value; an opinion of value (adjective) of or

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pertaining to appraising and related functions, such as
appraisal practice or appraisal services.
"Appraisal assignment" means a valuation service provided
as a consequence of an agreement between an appraiser and a
client.
"Appraisal consulting" means the act or process of
developing an analysis, recommendation, or opinion to solve a
problem, where an opinion of value is a component of the
analysis leading to the assignment results.
"Appraisal practice" means valuation services performed by
an individual acting as an appraiser, including, but not
limited to, appraisal, appraisal review, or appraisal
consulting.
"Appraisal report" means any communication, written or
oral, of an appraisal, appraisal review, or appraisal
consulting service that is transmitted to a client upon
completion of an assignment.
"Appraisal review" means the act or process of developing
and communicating an opinion about the quality of another
appraiser's work that was performed as part of an appraisal,
appraisal review, or appraisal assignment.
"Appraisal Subcommittee" means the Appraisal Subcommittee
of the Federal Financial Institutions Examination Council as
established by Title XI.
"Appraiser" means a person who performs real estate or real
property appraisals.

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"AQB" means the Appraisal Qualifications Board of the
Appraisal Foundation.
"Associate real estate trainee appraiser" means an
entry-level appraiser who holds a license of this
classification under this Act with restrictions as to the scope
of practice in accordance with this Act.
"Board" means the Real Estate Appraisal Administration and
Disciplinary Board.
"Classroom hour" means 50 minutes of instruction out of
each 60 minute segment of coursework.
"Client" means the party or parties who engage an appraiser
by employment or contract in a specific assignment.
"Coordinator" means the Coordinator of Real Estate
Appraisal of the Division of Professional Regulation of the
Department of Financial and Professional Regulation.
"Department" means the Department of Financial and
Professional Regulation.
"Federal financial institutions regulatory agencies" means
the Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the Office of the
Comptroller of the Currency, the Office of Thrift Supervision,
and the National Credit Union Administration.
"Federally related transaction" means any real
estate-related financial transaction in which a federal
financial institutions regulatory agency, the Department of
Housing and Urban Development, Fannie Mae, Freddie Mae, or the

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National Credit Union Administration engages in, contracts
for, or regulates and requires the services of an appraiser.
"Financial institution" means any bank, savings bank,
savings and loan association, credit union, mortgage broker,
mortgage banker, licensee under the Consumer Installment Loan
Act or the Sales Finance Agency Act, or a corporate fiduciary,
subsidiary, affiliate, parent company, or holding company of
any such licensee, or any institution involved in real estate
financing that is regulated by state or federal law.
"Modular Course" means the Appraisal Qualifying Course
Design conforming to the Sub Topics Course Outline contained in
the AQB Criteria 2008.
"Real estate" means an identified parcel or tract of land,
including any improvements.
"Real estate related financial transaction" means any
transaction involving:
(1) the sale, lease, purchase, investment in, or
exchange of real property, including interests in property
or the financing thereof;
(2) the refinancing of real property or interests in
real property; and
(3) the use of real property or interest in property as
security for a loan or investment, including mortgage
backed securities.
"Real property" means the interests, benefits, and rights
inherent in the ownership of real estate.

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"Secretary" means the Secretary of Financial and
Professional Regulation.
"State certified general real estate appraiser" means an
appraiser who holds a license of this classification under this
Act and such classification applies to the appraisal of all
types of real property without restrictions as to the scope of
practice.
"State certified residential real estate appraiser" means
an appraiser who holds a license of this classification under
this Act and such classification applies to the appraisal of
one to 4 units of residential real property without regard to
transaction value or complexity, but with restrictions as to
the scope of practice in a federally related transaction in
accordance with Title XI, the provisions of USPAP, criteria
established by the AQB, and further defined by rule.
"Supervising appraiser" means either (i) an appraiser who
holds a valid license under this Act as either a State
certified general real estate appraiser or a State certified
residential real estate appraiser, who co-signs an appraisal
report for an associate real estate trainee appraiser or (ii) a
State certified general real estate appraiser who holds a valid
license under this Act who co-signs an appraisal report for a
State certified residential real estate appraiser on
properties other than one to 4 units of residential real
property without regard to transaction value or complexity.
"Title XI" means Title XI of the federal Financial

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Institutions Reform, Recovery and Enforcement Act of 1989.
"USPAP" means the Uniform Standards of Professional
Appraisal Practice as promulgated by the Appraisal Standards
Board pursuant to Title XI and by rule.
"Valuation services" means services pertaining to aspects
of property value.
(Source: P.A. 96-844, eff. 12-23-09.)
(225 ILCS 458/10-20)
(Section scheduled to be repealed on January 1, 2012)
Sec. 10-20. Retention of records. A person licensed under
this Act shall retain records as required by the most recent
version of the USPAP and as further defined by rule the
original copy of all written contracts engaging his or her
services as an appraiser and all appraisal reports, including
any supporting data used to develop the appraisal report, for a
period of 5 years or 2 years after the final disposition of any
judicial proceeding in which testimony was given, whichever is
longer. In addition, a person licensed under this Act shall
retain contracts, logs, and appraisal reports used in meeting
pre-license experience requirements for a period of 5 years and
shall be made available to the Department upon request.
(Source: P.A. 96-844, eff. 12-23-09.)
(225 ILCS 458/15-10)
(Section scheduled to be repealed on January 1, 2012)

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Sec. 15-10. Grounds for disciplinary action.
(a) The Department may suspend, revoke, refuse to issue,
renew, or restore a license and may reprimand place on
probation or administrative supervision, or take any
disciplinary or non-disciplinary action, including imposing
conditions limiting the scope, nature, or extent of the real
estate appraisal practice of a licensee or reducing the
appraisal rank of a licensee, and may impose an administrative
fine not to exceed $25,000 for each violation upon a licensee
for any one or combination of the following:
(1) Procuring or attempting to procure a license by
knowingly making a false statement, submitting false
information, engaging in any form of fraud or
misrepresentation, or refusing to provide complete
information in response to a question in an application for
licensure.
(2) Failing to meet the minimum qualifications for
licensure as an appraiser established by this Act.
(3) Paying money, other than for the fees provided for
by this Act, or anything of value to a member or employee
of the Board or the Department to procure licensure under
this Act.
(4) Conviction by plea of guilty or nolo contendere,
finding of guilt, jury verdict, or entry of judgment or by
sentencing of any crime, including, but not limited to,
convictions, preceding sentences of supervision,

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conditional discharge, or first offender probation, under
the laws of any jurisdiction of the United States: (i) that
is a felony; or (ii) that is a misdemeanor, an essential
element of which is dishonesty, or that is directly related
to the practice of the profession. Conviction of or entry
of a plea of guilty or nolo contendere to any crime that is
a felony under the laws of the United States or any state
or territory thereof or a misdemeanor of which an essential
element is dishonesty or that is directly related to the
practice of the profession.
(5) Committing an act or omission involving
dishonesty, fraud, or misrepresentation with the intent to
substantially benefit the licensee or another person or
with intent to substantially injure another person as
defined by rule.
(6) Violating a provision or standard for the
development or communication of real estate appraisals as
provided in Section 10-10 of this Act or as defined by
rule.
(7) Failing or refusing without good cause to exercise
reasonable diligence in developing, reporting, or
communicating an appraisal, as defined by this Act or by
rule.
(8) Violating a provision of this Act or the rules
adopted pursuant to this Act.
(9) Having been disciplined by another state, the

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District of Columbia, a territory, a foreign nation, a
governmental agency, or any other entity authorized to
impose discipline if at least one of the grounds for that
discipline is the same as or the equivalent of one of the
grounds for which a licensee may be disciplined under this
Act.
(10) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud, or harm the public.
(11) Accepting an appraisal assignment when the
employment itself is contingent upon the appraiser
reporting a predetermined estimate, analysis, or opinion
or when the fee to be paid is contingent upon the opinion,
conclusion, or valuation reached or upon the consequences
resulting from the appraisal assignment.
(12) Developing valuation conclusions based on the
race, color, religion, sex, national origin, ancestry,
age, marital status, family status, physical or mental
handicap, or unfavorable military discharge, as defined
under the Illinois Human Rights Act, of the prospective or
present owners or occupants of the area or property under
appraisal.
(13) Violating the confidential nature of government
records to which the licensee gained access through
employment or engagement as an appraiser by a government
agency.

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(14) Being adjudicated liable in a civil proceeding on
grounds of fraud, misrepresentation, or deceit. In a
disciplinary proceeding based upon a finding of civil
liability, the appraiser shall be afforded an opportunity
to present mitigating and extenuating circumstances, but
may not collaterally attack the civil adjudication.
(15) Being adjudicated liable in a civil proceeding for
violation of a state or federal fair housing law.
(16) Engaging in misleading or untruthful advertising
or using a trade name or insignia of membership in a real
estate appraisal or real estate organization of which the
licensee is not a member.
(17) Failing to fully cooperate with a Department
investigation by knowingly making a false statement,
submitting false or misleading information, or refusing to
provide complete information in response to written
interrogatories or a written request for documentation
within 30 days of the request.
(18) Failing to include within the certificate of
appraisal for all written appraisal reports the
appraiser's license number and licensure title. All
appraisers providing significant contribution to the
development and reporting of an appraisal must be disclosed
in the appraisal report. It is a violation of this Act for
an appraiser to sign a report, transmittal letter, or
appraisal certification knowing that a person providing a

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significant contribution to the report has not been
disclosed in the appraisal report.
(19) Violating the terms of a disciplinary order or
consent to administrative supervision order.
(20) Habitual or excessive use or addiction to alcohol,
narcotics, stimulants, or any other chemical agent or drug
that results in a licensee's inability to practice with
reasonable judgment, skill, or safety.
(21) A physical or mental illness or disability which
results in the inability to practice under this Act with
reasonable judgment, skill, or safety.
(22) Gross negligence in developing an appraisal or in
communicating an appraisal or failing to observe one or
more of the Uniform Standards of Professional Appraisal
Practice.
(23) A pattern of practice or other behavior that
demonstrates incapacity or incompetence to practice under
this Act.
(24) Using or attempting to use the seal, certificate,
or license of another as his or her own; falsely
impersonating any duly licensed appraiser; using or
attempting to use an inactive, expired, suspended, or
revoked license; or aiding or abetting any of the
foregoing.
(25) Solicitation of professional services by using
false, misleading, or deceptive advertising.

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(26) Making a material misstatement in furnishing
information to the Department.
(27) Failure to furnish information to the Department
upon written request.
(b) The Department may reprimand suspend, revoke, or refuse
to issue or renew an education provider's license, may
reprimand, place on probation, or otherwise discipline an
education provider and may suspend or revoke the course
approval of any course offered by an education provider and may
impose an administrative fine not to exceed $25,000 upon an
education provider, for any of the following:
(1) Procuring or attempting to procure licensure by
knowingly making a false statement, submitting false
information, engaging in any form of fraud or
misrepresentation, or refusing to provide complete
information in response to a question in an application for
licensure.
(2) Failing to comply with the covenants certified to
on the application for licensure as an education provider.
(3) Committing an act or omission involving
dishonesty, fraud, or misrepresentation or allowing any
such act or omission by any employee or contractor under
the control of the provider.
(4) Engaging in misleading or untruthful advertising.
(5) Failing to retain competent instructors in
accordance with rules adopted under this Act.

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(6) Failing to meet the topic or time requirements for
course approval as the provider of a pre-license curriculum
course or a continuing education course.
(7) Failing to administer an approved course using the
course materials, syllabus, and examinations submitted as
the basis of the course approval.
(8) Failing to provide an appropriate classroom
environment for presentation of courses, with
consideration for student comfort, acoustics, lighting,
seating, workspace, and visual aid material.
(9) Failing to maintain student records in compliance
with the rules adopted under this Act.
(10) Failing to provide a certificate, transcript, or
other student record to the Department or to a student as
may be required by rule.
(11) Failing to fully cooperate with an investigation
by the Department by knowingly making a false statement,
submitting false or misleading information, or refusing to
provide complete information in response to written
interrogatories or a written request for documentation
within 30 days of the request.
(c) In appropriate cases, the Department may resolve a
complaint against a licensee through the issuance of a Consent
to Administrative Supervision order. A licensee subject to a
Consent to Administrative Supervision order shall be
considered by the Department as an active licensee in good

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standing. This order shall not be reported or considered by the
Department to be a discipline of the licensee. The records
regarding an investigation and a Consent to Administrative
Supervision order shall be considered confidential and shall
not be released by the Department except as mandated by law. A
complainant shall be notified if his or her complaint has been
resolved by a Consent to Administrative Supervision order.
(Source: P.A. 96-844, eff. 12-23-09.)
(225 ILCS 458/15-30)
(Section scheduled to be repealed on January 1, 2012)
Sec. 15-30. Statute of limitations. No action may be taken
under this Act against a person licensed under this Act unless
the action is commenced within 5 years after the occurrence of
the alleged violation or within at least 2 years after final
disposition of any judicial proceeding, including any appeals,
in which the appraiser provided testimony related to the
assignment, whichever period expires last. A continuing
violation is deemed to have occurred on the date when the
circumstances last existed that gave rise to the alleged
continuing violation.
(Source: P.A. 96-844, eff. 12-23-09.)
(225 ILCS 458/15-65 new)
Sec. 15-65. Confidentiality. All information collected by
the Department in the course of an examination or investigation

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of a licensee or applicant, including, but not limited to, any
complaint against a licensee filed with the Department and
information collected to investigate any such complaint, shall
be maintained for the confidential use of the Department and
shall not be disclosed. The Department may not disclose the
information to anyone other than law enforcement officials,
other regulatory agencies that have an appropriate regulatory
interest as determined by the Secretary, or to a party
presenting a lawful subpoena to the Department. Information and
documents disclosed to a federal, State, county, or local law
enforcement agency shall not be disclosed by the agency for any
purpose to any other agency or person. A formal complaint filed
against a licensee by the Department or any order issued by the
Department against a licensee or applicant shall be a public
record, except as otherwise prohibited by law.
(225 ILCS 458/25-15)
(Section scheduled to be repealed on January 1, 2012)
Sec. 25-15. Coordinator of Real Estate Appraisal;
appointment; duties. The Secretary shall appoint, subject to
the Personnel Code, a Coordinator of Real Estate Appraisal. In
appointing the Coordinator, the Secretary shall give due
consideration to recommendations made by members,
organizations, and associations of the real estate appraisal
industry. On or after January 1, 2010, the Coordinator must
hold a current, valid State certified general real estate

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appraiser license or a State certified residential real estate
appraiser license, which shall be surrendered to the Department
during the term of his or her appointment. The Coordinator must
take the 30-hour National Instructors Course on Uniform
Standards of Professional Appraisal Practice. The
Coordinator's license shall be returned in the same status as
it was on the date of surrender, credited with all fees that
came due during his or her employment. The Coordinator shall:
(1) serve as a member of the Real Estate Appraisal
Administration and Disciplinary Board without vote;
(2) be the direct liaison between the Department, the
profession, and the real estate appraisal industry
organizations and associations;
(3) prepare and circulate to licensees such
educational and informational material as the Department
deems necessary for providing guidance or assistance to
licensees;
(4) appoint necessary committees to assist in the
performance of the functions and duties of the Department
under this Act; and
(5) (blank); and .
(6) be authorized to investigate and determine the
facts of a complaint; the coordinator may interview
witnesses, the complainant, and any licensees involved in
the alleged matter and make a recommendation as to the
findings of fact.

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(Source: P.A. 96-844, eff. 12-23-09.)
(225 ILCS 458/5-21 rep.)
Section 15. The Real Estate Appraiser Licensing Act of 2002
is amended by repealing Section 5-21.
Section 99. Effective date. This Act takes effect upon
becoming law.