Bill Text: IL SB1817 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Repeals the Appraisal Management Company Registration Act. Makes conforming changes in the Real Estate Appraiser Licensing Act of 2002. In the Real Estate Appraiser Licensing Act of 2002, removes a provision requiring written disclosure to a borrower or loan applicant of the total compensation to the appraiser or appraisal firm when an appraisal obtained through an appraisal management company is used for loan purposes. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-01-09 - Session Sine Die [SB1817 Detail]
Download: Illinois-2017-SB1817-Introduced.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Real Estate Appraiser Licensing Act of 2002 | ||||||||||||||||||||||||||||
5 | is amended by changing Sections 5-5 and 10-10 as follows:
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6 | (225 ILCS 458/5-5)
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7 | (Section scheduled to be repealed on January 1, 2022)
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8 | Sec. 5-5. Necessity of license; use of title; exemptions.
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9 | (a) It
is unlawful for a person to (i) act, offer services, | ||||||||||||||||||||||||||||
10 | or advertise services
as a State certified general real estate
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11 | appraiser, State certified residential real estate appraiser, | ||||||||||||||||||||||||||||
12 | or associate real estate trainee appraiser, (ii)
develop a real | ||||||||||||||||||||||||||||
13 | estate appraisal,
(iii)
practice as a real estate
appraiser, or | ||||||||||||||||||||||||||||
14 | (iv)
advertise or hold himself or herself out to be a real | ||||||||||||||||||||||||||||
15 | estate
appraiser
without a license issued under this Act. A | ||||||||||||||||||||||||||||
16 | person who
violates this subsection is
guilty of a Class A | ||||||||||||||||||||||||||||
17 | misdemeanor for a first offense and a Class 4 felony for any | ||||||||||||||||||||||||||||
18 | subsequent offense.
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19 | (a-5) It is unlawful for a person , unless registered as an | ||||||||||||||||||||||||||||
20 | appraisal management company, to solicit clients or enter into | ||||||||||||||||||||||||||||
21 | an appraisal engagement with clients without either a certified | ||||||||||||||||||||||||||||
22 | residential real estate appraiser license or a certified | ||||||||||||||||||||||||||||
23 | general real estate appraiser license issued under this Act. A |
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1 | person who violates this subsection is guilty of a Class A | ||||||
2 | misdemeanor for a first offense and a Class 4 felony for any | ||||||
3 | subsequent offense. | ||||||
4 | (b) It
is unlawful for a person, other than a
person who | ||||||
5 | holds a valid license issued pursuant to this
Act as a State | ||||||
6 | certified general real estate appraiser, a
State
certified
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7 | residential real estate appraiser,
or an associate real estate | ||||||
8 | trainee appraiser to use these titles or any other title, | ||||||
9 | designation, or
abbreviation likely to create the
impression | ||||||
10 | that the person is licensed as a real estate appraiser pursuant | ||||||
11 | to
this Act. A person who
violates this subsection is guilty of | ||||||
12 | a Class A misdemeanor for a first offense and a Class 4 felony | ||||||
13 | for any subsequent offense.
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14 | (c)
This Act does not apply to a person who holds a valid | ||||||
15 | license as a real estate broker or managing broker pursuant to | ||||||
16 | the Real Estate License Act of 2000 who prepares or provides a | ||||||
17 | broker price opinion or comparative market analysis in | ||||||
18 | compliance with Section 10-45 of the Real Estate License Act of | ||||||
19 | 2000. | ||||||
20 | (d) Nothing in this Act shall preclude a State certified | ||||||
21 | general real estate appraiser, a State certified residential | ||||||
22 | real estate appraiser, or an associate real estate trainee | ||||||
23 | appraiser from rendering appraisals for or on behalf of a | ||||||
24 | partnership, association, corporation, firm, or group. | ||||||
25 | However, no State appraisal license or certification shall be | ||||||
26 | issued under this Act to a partnership, association, |
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1 | corporation, firm, or group.
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2 | (e) This Act does not apply to a county assessor, township | ||||||
3 | assessor, multi-township assessor, county supervisor of | ||||||
4 | assessments, or any deputy or employee of any county assessor, | ||||||
5 | township assessor, multi-township assessor, or county | ||||||
6 | supervisor of assessments who is performing his or her | ||||||
7 | respective duties in accordance with the provisions of the | ||||||
8 | Property Tax Code.
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9 | (e-5) For the purposes of this Act, valuation waivers may | ||||||
10 | be prepared by a licensed appraiser notwithstanding any other | ||||||
11 | provision of this Act, and the following types of valuations | ||||||
12 | are not appraisals and may not be represented to be appraisals, | ||||||
13 | and a license is not required under this Act to
perform such | ||||||
14 | valuations if the valuations are performed by (1) an employee | ||||||
15 | of the Illinois Department of Transportation who has completed | ||||||
16 | a minimum of 45 hours of course work in real estate appraisal, | ||||||
17 | including the principals of real estate appraisals, appraisal | ||||||
18 | of partial acquisitions, easement valuation, reviewing | ||||||
19 | appraisals in eminent domain, appraisal for federal aid highway | ||||||
20 | programs, and appraisal review for federal aid highway programs | ||||||
21 | and has at least 2 years' experience in a field closely related | ||||||
22 | to real estate; (2) a county engineer who is a registered | ||||||
23 | professional engineer under the Professional Engineering | ||||||
24 | Practice Act of 1989; (3) an employee of a municipality who has | ||||||
25 | (i) completed a minimum of 45 hours of coursework in real | ||||||
26 | estate appraisal, including the principals of real estate |
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1 | appraisals, appraisal of partial acquisitions, easement | ||||||
2 | valuation, reviewing appraisals in eminent domain, appraisal | ||||||
3 | for federal aid highway programs, and appraisal review for | ||||||
4 | federal aid highway programs and (ii) has either 2 years' | ||||||
5 | experience in a field clearly related to real estate or has | ||||||
6 | completed 20 hours of additional coursework that is sufficient | ||||||
7 | for a person to complete waiver valuations as approved by the | ||||||
8 | Federal Highway Administration; or (4) a municipal engineer who | ||||||
9 | has completed coursework that is sufficient for his or her | ||||||
10 | waiver valuations to be approved by the Federal Highway | ||||||
11 | Administration and who is a registered professional engineer | ||||||
12 | under the Professional Engineering Act of 1989, under the | ||||||
13 | following circumstances: | ||||||
14 | (A) a valuation waiver in an amount not to exceed | ||||||
15 | $10,000 prepared pursuant to the federal Uniform | ||||||
16 | Relocation Assistance and Real Property Acquisition | ||||||
17 | Policies Act of 1970, or prepared pursuant to the federal | ||||||
18 | Uniform Relocation Assistance and Real Property | ||||||
19 | Acquisition for Federal and Federally-Assisted Programs | ||||||
20 | regulations and which is performed by (1) an employee of | ||||||
21 | the Illinois Department of Transportation and co-signed, | ||||||
22 | with a license number affixed, by another employee of the | ||||||
23 | Illinois Department of Transportation who is a registered | ||||||
24 | professional engineer under the Professional Engineering | ||||||
25 | Practice Act of 1989 or (2) an employee of a municipality | ||||||
26 | and co-signed with a license number affixed by a county or |
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1 | municipal engineer who is a registered professional | ||||||
2 | engineer under the Professional Engineering Practice Act | ||||||
3 | of 1989; and | ||||||
4 | (B) a valuation waiver in an amount not to exceed | ||||||
5 | $10,000 prepared pursuant to the federal Uniform | ||||||
6 | Relocation Assistance and Real Property Acquisition | ||||||
7 | Policies Act of 1970, or prepared pursuant to the federal | ||||||
8 | Uniform Relocation Assistance and Real Property | ||||||
9 | Acquisition for Federal and Federally-Assisted Programs | ||||||
10 | regulations and which is performed by a county or municipal | ||||||
11 | engineer who is employed by a county or municipality and is | ||||||
12 | a registered professional engineer under the Professional | ||||||
13 | Engineering Practice Act of 1989. In addition to his or her | ||||||
14 | signature, the county or municipal engineer shall affix his | ||||||
15 | or her license number to the valuation. | ||||||
16 | Nothing in this subsection (e-5) shall be construed to | ||||||
17 | allow the State of Illinois, a political subdivision thereof, | ||||||
18 | or any public body to acquire real estate by eminent domain in | ||||||
19 | any manner
other than provided for in the Eminent Domain Act. | ||||||
20 | (f) A State real estate appraisal certification or license | ||||||
21 | is not required under this Act for any of the following: | ||||||
22 | (1) A person, partnership, association, or corporation | ||||||
23 | that performs appraisals of property owned by that person, | ||||||
24 | partnership, association, or corporation for the sole use | ||||||
25 | of that person, partnership, association, or corporation. | ||||||
26 | (2) A court-appointed commissioner who conducts an |
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1 | appraisal pursuant to a judicially ordered evaluation of | ||||||
2 | property. | ||||||
3 | However, any person who is certified or licensed under this Act | ||||||
4 | and who performs any of the activities set forth in this | ||||||
5 | subsection (f) must comply with the provisions of this Act. A | ||||||
6 | person who violates this subsection (f) is guilty of a Class A | ||||||
7 | misdemeanor for a first offense and a Class 4 felony for any | ||||||
8 | subsequent offense. | ||||||
9 | (g) This Act does not apply to an employee, officer, | ||||||
10 | director, or member of a credit or loan committee of a | ||||||
11 | financial institution or any other person engaged by a | ||||||
12 | financial institution when performing an evaluation of real | ||||||
13 | property for the sole use of the financial institution in a | ||||||
14 | transaction for which the financial institution would not be | ||||||
15 | required to use the services of a State licensed or State | ||||||
16 | certified appraiser pursuant to federal regulations adopted | ||||||
17 | under Title XI of the federal Financial Institutions Reform, | ||||||
18 | Recovery, and Enforcement Act of 1989, nor does this Act apply | ||||||
19 | to the procurement of an automated valuation model. | ||||||
20 | "Automated valuation model" means an automated system that | ||||||
21 | is used to derive a property value through the use of publicly | ||||||
22 | available property records and various analytic methodologies | ||||||
23 | such as comparable sales prices, home characteristics, and | ||||||
24 | historical home price appreciations.
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25 | (h) This Act does not apply to any corporation, limited | ||||||
26 | liability company, partnership, sole proprietorship, |
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1 | subsidiary, unit, or other business entity that directly or | ||||||
2 | indirectly performs the following appraisal management | ||||||
3 | services: (1) administers networks of independent contractors | ||||||
4 | or employee appraisers to perform real estate appraisal | ||||||
5 | assignments for clients; (2) receives requests for real estate | ||||||
6 | appraisal services from clients and, for a fee paid by the | ||||||
7 | client, enters into an agreement with one or more independent | ||||||
8 | appraisers to perform the real estate appraisal services | ||||||
9 | contained in the request; or (3) otherwise serves as a | ||||||
10 | third-party broker of appraisal management services between | ||||||
11 | clients and appraisers. | ||||||
12 | (Source: P.A. 98-444, eff. 8-16-13; 98-933, eff. 1-1-15; | ||||||
13 | 98-1109, eff. 1-1-15; 99-78, eff. 7-20-15.)
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14 | (225 ILCS 458/10-10)
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15 | (Section scheduled to be repealed on January 1, 2022)
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16 | Sec. 10-10. Standards of practice. All persons licensed | ||||||
17 | under this Act
must comply with standards
of professional | ||||||
18 | appraisal practice adopted by the Department. The Department
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19 | must adopt, as part
of
its rules, the Uniform
Standards of | ||||||
20 | Professional Appraisal Practice (USPAP) as published from time | ||||||
21 | to time by
the Appraisal Standards
Board of the Appraisal | ||||||
22 | Foundation. The Department
shall consider federal laws and
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23 | regulations regarding the
licensure of real estate appraisers | ||||||
24 | prior to adopting its rules for the
administration of this Act. | ||||||
25 | When an appraisal obtained through an appraisal management |
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1 | company is used for loan purposes, the borrower or loan | ||||||
2 | applicant shall be provided with a written disclosure of the | ||||||
3 | total compensation to the appraiser or appraisal firm within | ||||||
4 | the certification of the appraisal report and it shall not be | ||||||
5 | redacted or otherwise obscured.
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6 | (Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
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7 | (225 ILCS 459/Act rep.) | ||||||
8 | Section 10. The Appraisal Management Company Registration | ||||||
9 | Act is repealed.
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.
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