Bill Text: IL HB5868 | 2009-2010 | 96th General Assembly | Engrossed

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Bill Title: Amends the Real Estate Appraiser Licensing Act of 2002. Provides for the licensure of appraisal companies under the Act. Provides that the Department of Financial and Professional Regulation shall adopt by rule standards for the licensure of appraisal companies and charge a licensing fee not to exceed $50. Provides conditions for licensure as a real estate appraiser or appraisal company for corporations and partnerships. Prohibits the licensure of limited liability companies. Provides conditional exemptions from the Act to certain persons and entities. Provides criminal penalties for engaging in certain activities without a license as a real estate appraiser or appraisal company. Prohibits certain means of influencing an appraisal. Provides requirements for appraisers concerning the maintenance of a place of business within the State. Specifies that the Board has the power to investigate the actions of a licensee or applicant. Defines "appraisal company", "appraisal management company", "managing appraiser", "turnaround time", and "due date"; requires due dates to be calculated on Central Standard (rather than Daylight Savings) Time. Makes other changes.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2010-05-07 - Rule 3-9(a) / Re-referred to Assignments [HB5868 Detail]

Download: Illinois-2009-HB5868-Engrossed.html

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AN ACT concerning professional regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Real Estate Appraiser Licensing Act of 2002
is amended by changing Sections 1-10, 5-5, 10-10, 15-5, 15-15,
and 25-10 and by adding Section 5-20.3 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(Section scheduled to be repealed on January 1, 2012)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.
"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
pertaining to appraising and related functions, such as
appraisal practice or appraisal services.
"Appraisal assignment" means a valuation service provided

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as a consequence of an agreement between an appraiser and a
client.
"Appraisal company" means any individual, corporation,
partnership, sole proprietorship, subsidiary, unit, or other
business entity that (i) administers networks of independent
contractor appraisers to perform real estate appraisal
services for clients; (ii) receives requests for real estate
appraisal services from clients and enters into an agreement
with one or more independent contractor appraisers to perform
the real estate appraisal services contained in the request; or
(iii) otherwise serves as a third-party broker of appraisal
services between clients and appraisers.
For the purposes of this definition, "appraisal company"
includes an appraisal management company.
"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 management company" means a business entity
that (i) administers a network of certified and licensed
appraisers to fulfill real estate appraisal assignments on
behalf of mortgage lending institutions, as well as other
entities; (ii) recruits, qualifies, verifies the licensing of,
and negotiates fees and service level expectations with a
network of third-party appraisers; (iii) provides
administrative duties including order entry and assignment,

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tracking and status updates, pre-delivery quality control, and
preliminary and hard copy report delivery; and (iv) involves
ongoing quality control, accounts payable and receivable,
market value dispute resolution, warranty administration, and
record retention.
"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, corporation, limited liability
company, registered limited liability partnership, or
partnership that who performs real estate or real property
appraisals. "Appraiser" does not mean an appraisal company or
appraisal management company.
"AQB" means the Appraisal Qualifications Board of the

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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 (i) the party or parties who engage an
appraiser or appraisal management company by employment or
contract in a specific assignment or (ii) the person who
utilizes the services of an appraiser or engages an appraiser
for an appraisal 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.
"Due date" means the agreed upon date, based on Central
Standard Time, by which an assignment result is to be received
by the client.
"Federal financial institutions regulatory agencies" means
the Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the Office of the

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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
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.
"Managing appraiser" means a certified appraiser who has
supervisory responsibilities for licensees in one or, in the
case of a multi-office company, more than one office and who
has been appointed as such by the owning appraiser.
"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:

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(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.
"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

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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
Institutions Reform, Recovery and Enforcement Act of 1989.
"Turnaround time" or "turn time" means the period from when
an appraisal assignment is accepted by an appraiser or
appraisal company until it is received by the vendor management
company.
"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 458/5-5)
(Section scheduled to be repealed on January 1, 2012)
Sec. 5-5. Necessity of license; use of title; exemptions.
(a) It is unlawful for a person to (i) act, offer services,

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or advertise services as a State certified general real estate
appraiser, State certified residential real estate appraiser,
or associate real estate trainee appraiser, (ii) develop a real
estate appraisal, (iii) practice as a real estate appraiser,
(iv) advertise or hold himself or herself out to be a real
estate appraiser, or (v) solicit clients or enter into an
appraisal engagement with clients without a license issued
under this Act. A person who violates this subsection is guilty
of a Class A misdemeanor for a first offense and a Class 4
felony for any subsequent offense.
(b) It is unlawful for a person, other than a person who
holds a valid license issued pursuant to this Act as a State
certified general real estate appraiser, a State certified
residential real estate appraiser, or an associate real estate
trainee appraiser to use these titles or any other title,
designation, or abbreviation likely to create the impression
that the person is licensed as a real estate appraiser pursuant
to this Act. A person who violates this subsection is guilty of
a Class A misdemeanor for a first offense and a Class 4 felony
for any subsequent offense.
(b-1) It is unlawful for any person, corporation, limited
liability company, registered limited liability partnership,
or partnership (i) to act as an appraiser or appraisal company
or to advertise or assume to act as such appraiser or appraisal
company without a properly issued license issued under this Act
by the Department, either directly or through its authorized

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designee; (ii) to develop a real estate appraisal; (iii) to
practice as a real estate appraiser; (iv) to advertise or hold
himself, herself, or itself out to be a real estate appraiser
or appraisal company; or (v) to solicit clients or enter into
an appraisal engagement with clients without a real estate
appraiser license or appraisal company license issued under
this Act. A person who violates this subsection (b-1) is guilty
of a Class A misdemeanor for a first offense and a Class 4
felony for any subsequent offense.
(b-2) No corporation shall be granted a license or engage
in the business or capacity, either directly or indirectly, of
a real estate appraiser or appraisal company, unless every
officer of the corporation who actively participates in the
activities of the corporation holds a license as a certified
general real estate appraiser or a certified residential real
estate appraiser and unless every employee who acts as an
appraiser for the corporation holds a license as a certified
general real estate appraiser, a certified residential real
estate appraiser, or an associate real estate appraisal
trainee.
(b-3) No partnership shall be granted a license or engage
in the business or serve in the capacity, either directly or
indirectly, of a real estate appraiser or appraisal company
unless every general partner in the partnership holds a license
as a certified general real estate appraiser or as a certified
residential real estate appraiser and unless every employee who

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acts as an appraiser holds a license as a certified general
real estate appraiser, a certified residential appraiser, or as
an associate real estate appraisal trainee.
In the case of a registered limited liability partnership
(LLP), every partner in the LLP must hold a license as a
certified general real estate appraiser or as a certified
residential real estate appraiser and every employee who acts
as an appraiser must hold a license as a certified general real
estate appraiser, a certified residential real estate
appraiser, or an associate real estate appraisal trainee.
(b-4) No limited liability company shall be granted a
license or engage in the business or serve in the capacity,
either directly or indirectly, of a real estate appraiser or
appraisal company unless every member, employee, and
independent contractor of the limited liability company who
acts as an appraiser holds a license as a certified residential
real estate appraiser or an associate real estate appraisal
trainee.
(b-5) No person, corporation, limited liability company,
registered limited liability partnership, or partnership shall
be licensed to conduct an appraisal business if an individual
or group of individuals who are not licensed as certified
appraisers in this State directly own or indirectly control
more than 49% of the shares of stock or other ownership in the
partnership or corporation.
(b-6) Except as provided in this Section, each appraiser

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shall maintain a definite office or place of business within
this State for the transaction of appraisal business, and shall
conspicuously display his or her license in his or her office
or place of business. An appraiser who is licensed in this
State pursuant to Sections 5-10, 5-15, and 5-30 of this Act
shall not be required to maintain a definite office or place of
business in this State provided all of the following conditions
are met:
(1) the appraiser maintains an active certified
general real estate appraiser license or a certified
residential real estate appraiser license in the
appraiser's state of domicile;
(2) the appraiser maintains an office in the
appraiser's state of domicile; and
(3) the appraiser has filed with the Department written
statements appointing the Secretary to act as the
appraiser's agent upon whom all judicial and other process
or legal notices directed to the licensee may be served and
agreeing to abide by all of the provisions of this Act with
respect to his or her appraisal activities within the State
of Illinois and submitting to the jurisdiction of the
Department.
(b-7) Except as provided in this Section, each appraisal
company shall maintain a definite office or place of business
within this State for the transaction of appraisal business,
and shall conspicuously display its license in its office or

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place of business. An appraisal company that is licensed in
this State pursuant to Section 5-20.3 of this Act shall not be
required to maintain a definite office or place of business in
this State provided all of the following conditions are met:
(1) the appraisal company is authorized to conduct
business as an appraisal company in its state of domicile;
(2) the appraisal company maintains an office in its
state of domicile; and
(3) the appraisal company has filed with the Department
written statements appointing the Secretary to act as the
appraisal company's agent upon whom all judicial and other
process or legal notices directed to the licensee may be
served and agreeing to abide by all of the provisions of
this Act with respect to its appraisal activities within
the State of Illinois and submitting to the jurisdiction of
the Department.
(b-8) Upon the loss of a managing appraiser who is not
replaced or in the event of the death or adjudicated disability
of the sole proprietor of an office, a written request for
authorization allowing the continued operation of the office
may be submitted to the Department within 15 days after the
loss. The Department may issue a written authorization allowing
the continued operation, provided that a certified appraiser,
or in the case of the death or adjudicated disability of a sole
proprietor, the representative of the estate assumes
responsibility, in writing, for the operation of the office and

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agrees to personally supervise the operation of the office. No
such written authorization shall be valid for more than 60 days
unless extended by the Department for good cause shown and upon
written request by the appraiser or representative.
(c) The licensing requirements of this Act do not require a
person who holds a valid license pursuant to the Real Estate
License Act of 2000, to be licensed as a real estate appraiser
under this Act, unless that person is providing or attempting
to provide an appraisal report, as defined in Section 1-10 of
this Act, in connection with a federally-related transaction.
Nothing in this Act shall prohibit a person who holds a valid
license under the Real Estate License Act of 2000 from
performing a comparative market analysis or broker price
opinion for compensation, provided that the person does not
hold himself out as being a licensed real estate appraiser.
(d) Nothing in this Act shall preclude a State certified
general real estate appraiser, a State certified residential
real estate appraiser, or an associate real estate trainee
appraiser from rendering appraisals for or on behalf of a
partnership, association, corporation, firm, or group.
However, no State appraisal license or certification shall be
issued under this Act to a partnership, association,
corporation, firm, or group.
(e) This Act does not apply to a county assessor, township
assessor, multi-township assessor, county supervisor of
assessments, or any deputy or employee of any county assessor,

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township assessor, multi-township assessor, or county
supervisor of assessments who is performing his or her
respective duties in accordance with the provisions of the
Property Tax Code.
(f) A State real estate appraisal certification or license
is not required under this Act for any of the following:
(1) A person, partnership, association, or corporation
that performs appraisals of property owned by that person,
partnership, association, or corporation for the sole use
of that person, partnership, association, or corporation.
(2) A court-appointed commissioner who conducts an
appraisal pursuant to a judicially ordered evaluation of
property.
However, any person who is certified or licensed under this Act
and who performs any of the activities set forth in this
subsection (f) must comply with the provisions of this Act. A
person who violates this subsection (f) is guilty of a Class A
misdemeanor for a first offense and a Class 4 felony for any
subsequent offense.
(g) This Act does not apply to an employee, officer,
director, or member of a credit or loan committee of a
financial institution or any other person engaged by a
financial institution when performing an evaluation of real
property for the sole use of the financial institution in a
transaction for which the financial institution would not be
required to use the services of a State licensed or State

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certified appraiser pursuant to federal regulations adopted
under Title XI of the federal Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, nor does this Act apply
to the procurement of an automated valuation model.
"Automated valuation model" means an automated system that
is used to derive a property value through the use of publicly
available property records and various analytic methodologies
such as comparable sales prices, home characteristics, and
historical home price appreciations.
(h) This Act does not apply to a corporate relocation
company whereby the appraisal is not used for mortgage purposes
and the end user client is an employer company.
(i) This Section shall not be applicable to appraisers or
appraisal companies that contract with independent appraisers
for the performance of fewer than 10 appraisals in this State
in a calendar year.
(Source: P.A. 96-844, eff. 12-23-09.)
(225 ILCS 458/5-20.3 new)
(Section scheduled to be repealed on January 1, 2012)
Sec. 5-20.3. Licensure of appraisal company. The
Department of Financial and Professional Regulation shall
adopt by rule standards for the licensure of appraisal
companies designed to protect the public interest and to ensure
compliance with this Act. The Department shall specify any
qualifications, including education or training, necessary for

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licensure. The fee for licensure as an appraisal company
license shall not exceed $50.
(225 ILCS 458/10-10)
(Section scheduled to be repealed on January 1, 2012)
Sec. 10-10. Standards of practice. All persons licensed
under this Act as certified general real estate appraisers,
certified residential real estate appraisers, or associate
real estate appraisal trainees must comply with standards of
professional appraisal practice adopted by the Department. The
Department must adopt, as part of its rules, the Uniform
Standards of Professional Appraisal Practice (USPAP) as
published from time to time by the Appraisal Standards Board of
the Appraisal Foundation. The Department shall consider
federal laws and regulations regarding the licensure of real
estate appraisers prior to adopting its rules for the
administration of this Act. An appraisal company shall not
request that an appraiser in any way violate the standards of
USPAP. An appraisal company shall not redact or otherwise
obscure compensation related disclosures contained within the
body of an appraisal report.
(Source: P.A. 96-844, eff. 12-23-09.)
(225 ILCS 458/15-5)
(Section scheduled to be repealed on January 1, 2012)
Sec. 15-5. Unlicensed practice; civil penalty; injunctive

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relief; unlawful influence.
(a) A person who violates Section 5-5 of this Act shall, in
addition to any other penalty provided by law, pay a civil
penalty to the Department in an amount not to exceed $25,000
for each violation as determined by the Secretary. The civil
penalty shall be assessed by the Secretary after a hearing in
accordance with the provisions of this Act regarding the
provision of a hearing for the discipline of a license.
(b) The Department has the authority to investigate any
activity that may violate this Act.
(c) A civil penalty imposed pursuant to subsection (a)
shall be paid within 60 days after the effective date of the
order imposing the civil penalty. The order shall constitute a
judgment and may be filed and executed in the same manner as
any judgment from any court of record. Any civil penalty
collected under this Act shall be made payable to the
Department of Financial and Professional Regulation and
deposited into the Appraisal Administration Fund. In addition
to or in lieu of the imposition of a civil penalty, the
Department may report a violation of this Act or the failure or
refusal to comply with an order of the Department to the
Attorney General or to the appropriate State's Attorney.
(d) Practicing as an appraiser without holding a valid
license as required under this Act is declared to be adverse to
the public welfare, to constitute a public nuisance, and to
cause irreparable harm to the public welfare. The Secretary,

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the Attorney General, or the State's Attorney of any county in
the State may maintain an action for injunctive relief in any
circuit court to enjoin any person from engaging in such
practice.
Upon the filing of a verified petition in a circuit court,
the court, if satisfied by affidavit or otherwise that a person
has been engaged in the practice of real estate appraisal
without a valid license, may enter a temporary restraining
order without notice or bond enjoining the defendant from
further practice. The showing of non-licensure, by affidavit or
otherwise, is sufficient for the issuance of a temporary
injunction. If it is established that the defendant has been or
is engaged in unlawful practice, the court may enter an order
or judgment perpetually enjoining the defendant from further
unlawful practice. In all proceedings under this Section, the
court, in its discretion, may apportion the costs among the
parties interested in the action, including the cost of filing
the complaint, service of process, witness fees and expenses,
court reporter charges, and reasonable attorneys' fees. These
injunction proceedings shall be in addition to, and not in lieu
of, all penalties and other remedies provided in this Act.
(e) No person shall influence or attempt to influence
through coercion, extortion, or bribery the independent
judgment of an appraiser licensed or certified under this Act
in the development, reporting, result, or review of a real
estate appraisal. A person who violates this subsection (e) is

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guilty of a Class A misdemeanor for the first offense and a
Class 4 felony for any subsequent offense.
(f) It shall be unlawful for any employee, director,
officer, or agent of an appraisal company licensed in this
State to influence or attempt to influence the development,
reporting, or review of an appraisal through coercion,
extortion, collusion, compensation, instruction, inducement,
intimidation, bribery, or in any other manner, including, but
not limited to, the following:
(1) withholding or threatening to withhold timely
payment for an appraisal;
(2) withholding or threatening to withhold future
business for an independent appraiser, or demoting or
terminating or threatening to demote or terminate an
independent appraiser;
(3) imposing turnaround time monetary penalties that
are not specified at the time of engagement;
(4) requiring an appraiser to submit a notice of
absence when not an employee of the entity;
(5) requiring an appraiser to sign a non-compete clause
when not an employee of the entity;
(6) requesting the payment of compensation to achieve
higher priority in the assignment of appraisal business;
(7) requiring an appraiser to pay or otherwise
compensate the appraisal company for fees to upload or
otherwise deliver an appraisal report, fees for a report

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transmitted after a due date, or fees for reviewing the
report;
(8) requiring an appraiser or appraisal company to sign
any sort of indemnification agreement that would require
the appraiser to defend and hold harmless the appraisal
company, any software provider that an appraisal company
requires an appraiser to use, or any other entity that the
appraisal company does business with, from any liability,
damage, loss, or claim that does not arise as a result of
the appraiser's performance of the appraisal assignment;
and
(9) requiring an appraiser who is not an employee of
the appraisal company to collect the appraisal fee from the
borrower, occupant, or any other person.
(g) It shall be unlawful for any licensed appraiser or
appraisal company to alter, modify, or otherwise change a
completed appraisal report submitted by an independent
appraiser, including, without limitation, by doing any of the
following:
(1) permanently removing the appraiser's signature or
seal;
(2) adding information to, or removing information
from, the appraisal report with an intent to change the
value conclusion;
(3) expressly or impliedly promising future business,
promotions, or increased compensation for an independent

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appraiser;
(4) conditioning the request for an appraisal service
or the payment of an appraisal fee or salary or bonus on
the opinion, conclusion, or valuation to be reached, or on
a preliminary estimate or opinion requested from an
independent appraiser;
(5) requesting that an independent appraiser provide
an estimated, predetermined, or desired valuation in an
appraisal report, or provide estimated values or
comparable sales at any time prior to the independent
appraiser's completion of an appraisal service;
(6) providing to an independent appraiser an
anticipated, estimated, encouraged, or desired value for a
subject property or a proposed or target amount to be
loaned to the borrower, except that a copy of the sales
contract for purchase transactions may be provided;
(7) providing to an independent appraiser, or any
entity or person related to the appraiser, stock or other
financial or non-financial benefits;
(8) allowing the removal of an independent appraiser
from an appraiser panel, without prior written notice to
such appraiser;
(9) obtaining, using, or paying for a second or
subsequent appraisal or ordering an automated valuation
model in connection with a mortgage financing transaction
unless there is a reasonable basis to believe that the

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initial appraisal was flawed or tainted and such basis is
clearly and appropriately noted in the loan file, or unless
such appraisal or automated valuation model is done
pursuant to a bona fide pre- or post-funding appraisal
review or quality control process; or
(10) any other act or practice that impairs or attempts
to impair an appraiser's independence, objectivity, or
impartiality.
(Source: P.A. 96-844, eff. 12-23-09.)
(225 ILCS 458/15-15)
(Section scheduled to be repealed on January 1, 2012)
Sec. 15-15. Investigation; notice; hearing.
(a) Upon the motion of the Department or the Board or upon
a complaint in writing of a person setting forth facts that, if
proven, would constitute grounds for suspension, revocation,
or other disciplinary action against a licensee or applicant
for licensure, the Department or the Board shall investigate
the actions of the licensee or applicant. If, upon
investigation, the Department believes that there may be cause
for suspension, revocation, or other disciplinary action, the
Department shall use the services of a State certified general
real estate appraiser, a State certified residential real
estate appraiser, or the Real Estate Coordinator to assist in
determining whether grounds for disciplinary action exist
prior to commencing formal disciplinary proceedings.

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(b) Formal disciplinary proceedings shall commence upon
the issuance of a written complaint describing the charges that
are the basis of the disciplinary action and delivery of the
detailed complaint to the address of record of the licensee or
applicant. The Department shall notify the licensee or
applicant to file a verified written answer within 20 days
after the service of the notice and complaint. The notification
shall inform the licensee or applicant of his or her right to
be heard in person or by legal counsel; that the hearing will
be afforded not sooner than 30 days after service of the
complaint; that failure to file an answer will result in a
default being entered against the licensee or applicant; that
the license may be suspended, revoked, or placed on
probationary status; and that other disciplinary action may be
taken pursuant to this Act, including limiting the scope,
nature, or extent of the licensee's practice. If the licensee
or applicant fails to file an answer after service of notice,
his or her license may, at the discretion of the Department, be
suspended, revoked, or placed on probationary status and the
Department may take whatever disciplinary action it deems
proper, including limiting the scope, nature, or extent of the
person's practice, without a hearing.
(c) At the time and place fixed in the notice, the Board
shall conduct hearing of the charges, providing both the
accused person and the complainant ample opportunity to present
in person or by counsel such statements, testimony, evidence,

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and argument as may be pertinent to the charges or to a defense
thereto.
(d) The Board shall present to the Secretary a written
report of its findings and recommendations. A copy of the
report shall be served upon the licensee or applicant, either
personally or by certified mail. Within 20 days after the
service, the licensee or applicant may present the Secretary
with a motion in writing for either a rehearing, a proposed
finding of fact, a conclusion of law, or an alternative
sanction, and shall specify the particular grounds for the
request. If the accused orders a transcript of the record as
provided in this Act, the time elapsing thereafter and before
the transcript is ready for delivery to the accused shall not
be counted as part of the 20 days. If the Secretary is not
satisfied that substantial justice has been done, the Secretary
may order a rehearing by the Board or other special committee
appointed by the Secretary, may remand the matter to the Board
for its reconsideration of the matter based on the pleadings
and evidence presented to the Board, or may enter a final order
in contravention of the Board's recommendation. In all
instances under this Act in which the Board has rendered a
recommendation to the Secretary with respect to a particular
licensee or applicant, the Secretary, if he or she disagrees
with the recommendation of the Board, shall file with the Board
and provide to the licensee or applicant a copy of the
Secretary's specific written reasons for disagreement with the

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Board. The reasons shall be filed within 60 days of the Board's
recommendation to the Secretary and prior to any contrary
action. Notwithstanding a licensee's or applicant's failure to
file a motion for rehearing, the Secretary shall have the right
to take any of the actions specified in this subsection (d).
Upon the suspension or revocation of a license, the licensee
shall be required to surrender his or her license to the
Department, and upon failure or refusal to do so, the
Department shall have the right to seize the license.
(e) The Department has the power to issue subpoenas and
subpoenas duces tecum to bring before it any person in this
State, to take testimony, or to require production of any
records relevant to an inquiry or hearing by the Board in the
same manner as prescribed by law in judicial proceedings in the
courts of this State. In a case of refusal of a witness to
attend, testify, or to produce books or papers concerning a
matter upon which he or she might be lawfully examined, the
circuit court of the county where the hearing is held, upon
application of the Department or any party to the proceeding,
may compel obedience by proceedings as for contempt.
(f) Any license that is suspended indefinitely or revoked
may not be restored for a minimum period of 2 years, or as
otherwise ordered by the Secretary.
(g) In addition to the provisions of this Section
concerning the conduct of hearings and the recommendations for
discipline, the Department has the authority to negotiate

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disciplinary and non-disciplinary settlement agreements
concerning any license issued under this Act. All such
agreements shall be recorded as Consent Orders or Consent to
Administrative Supervision Orders.
(h) The Secretary shall have the authority to appoint an
attorney duly licensed to practice law in the State of Illinois
to serve as the hearing officer in any action to suspend,
revoke, or otherwise discipline any license issued by the
Department. The Hearing Officer shall have full authority to
conduct the hearing.
(i) The Department, at its expense, shall preserve a record
of all formal hearings of any contested case involving the
discipline of a license. At all hearings or pre-hearing
conferences, the Department and the licensee shall be entitled
to have the proceedings transcribed by a certified shorthand
reporter. A copy of the transcribed proceedings shall be made
available to the licensee by the certified shorthand reporter
upon payment of the prevailing contract copy rate.
(Source: P.A. 96-844, eff. 12-23-09.)
(225 ILCS 458/25-10)
(Section scheduled to be repealed on January 1, 2012)
Sec. 25-10. Real Estate Appraisal Administration and
Disciplinary Board; appointment.
(a) There is hereby created the Real Estate Appraisal
Administration and Disciplinary Board. The Board shall be

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composed of 11 10 persons appointed by the Governor, plus the
Coordinator of the Real Estate Appraisal Division. Members
shall be appointed to the Board subject to the following
conditions:
(1) All appointed members shall have been residents and
citizens of this State for at least 5 years prior to the
date of appointment.
(2) The appointed membership of the Board should
reasonably reflect the geographic distribution of the
population of the State.
(3) Four appointed members shall have been actively
engaged and currently licensed as State certified general
real estate appraisers for a period of not less than 5
years.
(4) Two appointed members shall have been actively
engaged and currently licensed as State certified
residential real estate appraisers for a period of not less
than 5 years.
(5) Two appointed members shall hold a valid license as
a real estate broker for at least 10 years prior to the
date of the appointment, one of whom shall hold a valid
State certified general real estate appraiser license
issued under this Act or a predecessor Act for a period of
at least 5 years prior to the appointment and one of whom
shall hold a valid State certified residential real estate
appraiser license issued under this Act or a predecessor

HB5868 Engrossed - 28 - LRB096 18123 ASK 33498 b
Act for a period of at least 5 years prior to the
appointment.
(6) One appointed member shall be a representative of a
financial institution, as evidenced by his or her
employment with a financial institution.
(7) One appointed member shall represent the interests
of the general public. This member or his or her spouse
shall not be licensed under this Act nor be employed by or
have any interest in an appraisal business, real estate
brokerage business, or a financial institution.
(8) One appointed member shall be a representative of
an appraisal management company, as evidenced by his or her
being an officer or employee of an appraisal management
company which employs or contracts with, in the aggregate,
at least 10 licensed appraisers.
In making appointments as provided in paragraphs (3) and
(4) of this subsection, the Governor shall give due
consideration to recommendations by members and organizations
representing the profession.
In making the appointments as provided in paragraph (5) of
this subsection, the Governor shall give due consideration to
the recommendations by members and organizations representing
the real estate industry.
In making the appointment as provided in paragraph (6) of
this subsection, the Governor shall give due consideration to
the recommendations by members and organizations representing

HB5868 Engrossed - 29 - LRB096 18123 ASK 33498 b
financial institutions.
(b) The term for members of the Board shall be 4 years, and
each member shall serve until his or her successor is appointed
and qualified. No member shall serve more than 10 years in a
lifetime.
(c) The Governor may terminate the appointment of a member
for cause that, in the opinion of the Governor, reasonably
justifies the termination. Cause for termination may include,
without limitation, misconduct, incapacity, neglect of duty,
or missing 4 Board meetings during any one calendar year.
(d) Six A majority of the Board members shall constitute a
quorum. A vacancy in the membership of the Board shall not
impair the right of a quorum is required to exercise all of the
rights and perform all of the duties of the Board.
(e) The Board shall meet at least quarterly and may be
convened by the Chairperson, Vice-Chairperson, or 3 members of
the Board upon 10 days written notice.
(f) The Board shall, annually at the first meeting of the
fiscal year, elect a Chairperson and Vice-Chairperson from its
members. The Chairperson shall preside over the meetings and
shall coordinate with the Coordinator in developing and
distributing an agenda for each meeting. In the absence of the
Chairperson, the Vice-Chairperson shall preside over the
meeting.
(g) The Coordinator of the Real Estate Appraisal Division
shall serve as a member of the Board without vote.

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(h) The Board shall advise and make recommendations to the
Department on the education and experience qualifications of
any applicant for initial licensure as a State certified
general real estate appraiser or a State certified residential
real estate appraiser. The Department shall not make any
decisions concerning education or experience qualifications of
an applicant for initial licensure as a State certified general
real estate appraiser or a State certified residential real
estate appraiser without having first received the advice and
recommendation of the Board and shall give due consideration to
all such advice and recommendations; however, if the Board does
not render advice or make a recommendation within a reasonable
amount of time, then the Department may render a decision.
(h-5) The Board shall issue educational findings, as it
deems appropriate.
(i) Except as provided in Section 15-17 of this Act, the
Board shall hear and make recommendations to the Secretary on
disciplinary matters that require a formal evidentiary
hearing. The Secretary shall give due consideration to the
recommendations of the Board involving discipline and
questions involving standards of professional conduct of
licensees.
(j) The Department shall seek and the Board shall provide
recommendations to the Department consistent with the
provisions of this Act and for the administration and
enforcement of all rules adopted pursuant to this Act. The

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

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may be suspended. The exercise of any suspended function,
power, or duty of the Board may be reinstated by a resolution
adopted at a subsequent Board meeting. Any resolution adopted
pursuant to this Section shall take effect immediately.
(Source: P.A. 96-844, eff. 12-23-09.)