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| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
91_SB1704enr SB1704 Enrolled LRB9113109ACtm 1 AN ACT to amend the Real Estate Appraiser Licensing Act. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Real Estate Appraiser Licensing Act is 5 amended by changing Sections 15, 55, 60, 85, 90, and 95 as 6 follows: 7 (225 ILCS 457/15) 8 Sec. 15. License requirement; title; exemptions. 9 (a) No person shall engage in the business of, act in 10 the capacity of, advertise, or assume to act as a real estate 11 appraiser, develop or report real estate appraisals, or 12 appraise real estate, in a federally related transaction, 13 without a license to practice as a real estate appraiser 14 issued by the Office under this Act. A person who violates 15 this subsection is guilty of a Class A misdemeanor. 16 (b) No person, other than a State Certified General Real 17 Estate Appraiser, State Certified Residential Real Estate 18 Appraiser, or State Licensed Real Estate Appraiser licensed 19 under this Act whose license is in good standing, shall 20 assume or use these titles or any other title, designation, 21 or abbreviation likely to create the impression that the 22 person is licensed by the State of Illinois as a real estate 23 appraiser. A person who violates this subsection is guilty of 24 a Class A misdemeanor. 25 (Source: P.A. 90-571, eff. 7-1-98.) 26 (225 ILCS 457/55) 27 Sec. 55. Examination prerequisites. As a prerequisite to 28 taking the examination for a rank of appraiser licensure, an 29 applicant shall (i) present evidence of successful completion 30 of a 4-year course of study in a high school or secondary SB1704 Enrolled -2- LRB9113109ACtm 1 school approved by the Illinois State Board of Education or 2 an equivalent course of study as determined by an examination 3 conducted by the Illinois State Board of Education which 4 shall be verified under oath by the applicant and (ii) 5 present evidence, satisfactory to the Office of Banks and 6 Real Estate, that the applicant has successfully completed 7 not less than 165150classroom hours in the case of an 8 applicant for a State Certified General Real Estate Appraiser 9 license, 10590classroom hours in the case of an applicant 10 for a State Certified Residential Real Estate Appraiser 11 license, or 7560classroom hours in the case of an applicant 12 for a State Licensed Real Estate Appraiser license, or that 13 amount mandated or recommended by the Appraisal 14 Qualifications Board in accordance withunderTitle XI of the 15 federal Financial Institutions Reform, Recovery and 16 Enforcement Act of 1989, whichever is greater, or their 17 equivalent as provided by rule, of courses in subjects 18 relating to real estate appraisal. In addition, the applicant 19 shall present evidence of successful completion of 15 20 classroom hours relating to standards of professional 21 practice. The classroom hours required by this Section shall 22 be obtained from one or more of the following entities 23 approved by the Office of Banks and Real Estate: 24 (1) a college or university; 25 (2) a community college or junior college; 26 (3) a real estate appraisal or real estate related 27 organization; 28 (4) a trade association or organization that 29 consists in whole or in part of members engaged in real 30 estate appraising; or 31 (5) any other provider approved by the Office of 32 Banks and Real Estate. 33 The Office of Banks and Real Estate shall require by rule 34 completion of course work in fair housing and fair lending, SB1704 Enrolled -3- LRB9113109ACtm 1 which shall be included within the requirements of this 2 Section. 3 (Source: P.A. 90-571, eff. 7-1-98.) 4 (225 ILCS 457/60) 5 Sec. 60. Experience requirement. 6 (a) A license as a State Certified General Real Estate 7 Appraiser or State Certified Residential Real Estate 8 Appraiser shall not be issued to a person who does not 9 possess 2 years of experience, or that amount mandated under 10 Title XI of the federal Financial Institutions Reform, 11 Recovery and Enforcement Act of 1989, whichever is greater, 12 or their equivalent as provided by rule of the Office of 13 Banks and Real Estate. For the purposes of this Section, one 14 year of experience means 1,000 hours of experience. 15 Approved experience shall include fee appraisal, staff 16 appraisal, mass appraisal in accordance with the USPAP, ad 17 valorem tax appraisal, mass ad valorem tax appraisal in 18 accordance with the USPAP, review appraisal in accordance 19 with the USPAP, highest and best use analysis, feasibility 20 analysis or study in accordance with the USPAP, real estate 21 sales and brokerage, real estate consulting in accordance 22 with the USPAP, real property management, and other related 23 experience approved by the Office of Banks and Real Estate 24 and in accordance with the USPAP. Nevertheless, the amount of 25 credit granted for this experience shall be equivalent to the 26 amount of credit that may be granted for the experience under 27 Title XI of the federal Financial Institutions Reform, 28 Recovery and Enforcement Act of 1989. 29 An applicant for a license shall provide to the Office of 30 Banks and Real Estate on forms prescribed by rule of the 31 Office a summary of the level and type of experience for 32 which the applicant is claiming credit. To obtain experience 33 credit for the preparation of a written appraisal report, the SB1704 Enrolled -4- LRB9113109ACtm 1 applicant shall provide in the experience summary the date of 2 appraisal, the type of property, the approximate size of the 3 property (including land and improvements), and the general 4 location of the property. Nothing in this Section shall 5 require, as a condition of obtaining experience credit, that 6 a real estate appraiser disclose the identity of the client 7 for whom the appraisal was performed. The Office of Banks and 8 Real Estate may require that an applicant provide samples of 9 the applicant's work for which experience is claimed. 10 Of the total experience requirement, at least 50% must be 11 earned in one or more of the following areas: fee appraisal, 12 staff appraisal, ad valorem tax appraisal, review appraisal, 13 or real estate consulting. 14 (b) An applicant who has been engaged in appraising 15 real property for ad valorem purposes as a local assessment 16 officer, as defined in Section 1-85 of the Property Tax Code 17 or as a deputy or employee of a local assessment officer, 18 shall receive experience credit for the number of hours the 19 applicant was engaged in one or more of the following duties: 20 (1) the analysis and establishment of the value of 21 properties through the cost, income, and market sale 22 appraisal techniques; 23 (2) model development and calibration in relation 24 to mass ad valorem tax assessments; and 25 (3) the review and analysis of appraisals employing 26 cost, income, and market sale appraisal techniques. 27 The experience under this subsection (b) shall not be 28 required to be set forth in the form of the experience 29 summary as provided in subsection (a) of Section 60. All 30 persons who seek experience credit under this subsection (b) 31 shall attach his or her own affidavit as a supporting 32 document to the application form of the Office of Banks and 33 Real Estate. The applicant's affidavit shall detail the 34 experience for which credit is being claimed and the length SB1704 Enrolled -5- LRB9113109ACtm 1 of time the applicant was engaged in these duties as a local 2 assessment officer, or deputy or employee of a local 3 assessment officer. The applicant shall attach to this 4 affidavit an Assessment Experience Certification form 5 executed by the local assessment officer or his or her 6 designee in the following form: 7 "Assessment Experience Certification. 8 Pursuant to the provisions of subsection (b) of 9 Section 60 of the Real Estate Appraiser Licensing Act, it 10 is hereby certified that (Applicant's Name) was engaged 11 in appraising (residential .....%) (nonresidential....%) 12 real estate for ad valorem tax purposes as a local 13 assessment officer, or as a deputy or employee of a local 14 assessment officer, from (date) through (date) and 15 during this time period was engaged in one or more of the 16 following duties: (1) the analysis and establishment of 17 the value of properties through the cost, income, and 18 market sale appraisal techniques; (2) model development 19 and calibration in relation to mass ad valorem tax 20 assessments; (3) the review and analysis of appraisals 21 employing cost, income, and market sale appraisal 22 techniques, and that the experience is accurately 23 described in the affidavit to which this Certificate is 24 attached and supported by assessment records available 25 under Section 14-30 of the Property Tax Code or the 26 Freedom of Information Act. 27 By: 28 _________________________ 29 Local Assessment Officer" 30 Upon submission of the application, affidavit, and the 31 Assessment Experience Certification form, the Commissioner 32 shall grant the experience credit set forth in this 33 subsection. Notwithstanding other provisions of this Act, the 34 amount of experience credit granted for appraising real SB1704 Enrolled -6- LRB9113109ACtm 1 property for ad valorem tax purposes as a local assessment 2 officer, or deputy or employee of a local assessment officer, 3 shall be equivalent to the amount of credit that may be 4 granted for that experience under the provisions of Title XI 5 of the federal Financial Institutions Reform, Recovery and 6 Enforcement Act of 1989. 7 (c) An applicant who has been licensed for 5 of the 8 previous 7 years with the Office of Banks and Real Estate as 9 a real estate broker or real estate salesperson shall receive 10 credit for appraisal experience equal to 40% of the total 11 experience requirement. This experience as a real estate 12 broker or real estate salesperson shall not be required to be 13 set forth in the form required in subsection (a). The balance 14 of the experience requirement shall be set forth in the form 15 of the experience summary as provided in subsection (a). 16 (d) Of the total experience requirement for State 17 Certified General Real Estate Appraisers, at least 50% must 18 be approved experience relating to nonresidential real 19 estate. 20 (e) Of the total experience required for State Certified 21 Residential Real Estate Appraisers, at least 50% must be 22 approved experience relating to residential real estate. 23 (f) Proof of experience shall not be required for 24 licensure as a State Licensed Real Estate Appraiser.The25license of aState Licensed Real Estate Appraiser shall be an 26 entry level licensing rank, and the license may be held from 27 the date of issuance for the balance of the initial license 28 and through 2 renewals and then shall not be renewed; except 29 that a licensee in this rank on the effective date of this 30 amendatory Act of the 91st General Assembly may renew the 31 license so that it is valid until September 30, 2003, but 32 shall not be allowed to renew the license after that date. 33who has been licensed for a period of 2 years shall be34renewed only if the licensee meets the following experienceSB1704 Enrolled -7- LRB9113109ACtm 1requirements:2(1) Prior to the first renewal after the licensee3has been licensed for 2 years, the licensee possesses at4least 500 hours of experience. A licensee may, at the5time of applying for the first renewal, submit 1,0006hours of experience.7(2) Unless the licensee submitted 1,000 hours of8experience under the provisions of subdivision (1), prior9to the second renewal after the licensee has been10licensed for a period of 2 years, the licensee possesses11500 hours experience. The experience required under this12subdivision must be earned after the first renewal after13the licensee has been licensed for a period of 2 years.14All real estate appraisal experience granted shall be in15accordance with this Section.16(g) The Office of Banks and Real Estate may waive the17experience requirement of this Section for good cause. A18renewal applicant seeking renewal of a license without having19fully complied with the experience requirement of subsection20(a) shall file with the Office of Banks and Real Estate a21renewal application, the required renewal fee, an affidavit22setting forth the facts concerning the noncompliance, a23request for waiver of the experience requirement on the basis24of those facts, and a waiver processing fee of $25. If the25Office of Banks and Real Estate finds from the affidavit or26any other evidence submitted that good cause has been shown27for granting a waiver, the Office of Banks and Real Estate28shall waive enforcement of the experience requirement for the29renewal period for which the applicant has applied. For30purposes of this subsection, "good cause" means an inability31of the applicant to reasonably complete the requisite32appraisal experience because there has been an insufficient33amount of appraisal activity in the geographic area where the34applicant practices real estate appraising. In determiningSB1704 Enrolled -8- LRB9113109ACtm 1whether good cause exists, the Office of Banks and Real2Estate may consider (i) the amount of appraisal experience3earned by the applicant in proportion to the total appraisal4activity within the geographic area where the applicant5practices real estate appraising and (ii) the reasonableness6of the geographic area the applicant defines as the area7where the applicant practices real estate appraising. "Good8cause" shall also include an inability of the applicant to9complete the experience requirement because of extreme10hardship, which includes but is not limited to an11incapacitating illness or full-time service in the armed12services in the United States of America, during a13substantial part of the prerenewal period.14 (Source: P.A. 90-571, eff. 7-1-98.) 15 (225 ILCS 457/85) 16 Sec. 85. Continuing education requirements. 17 (a) An appraiser licensed as a State Certified General 18 Real Estate Appraiser or a State Certified Residential Real 19 Estate Appraiser under this ActAs a prerequisite to renewal20of an appraiser license, a renewal applicantshall present 21 evidence satisfactory to the Office of Banks and Real Estate 22 of having completed not less than 2820hours of continuing 23 education per renewal period or that amount mandated under 24 Title XI of the Federal Financial Institutions Reform, 25 Recovery and Enforcement Act of 1989, whichever is greater, 26 or their equivalent as provided by rule, from courses 27 approved by the Office and presented by real estate appraisal 28 education providers licensed by the Office. 29 The Office of Banks and Real Estate may provide by rule 30 for the temporary waiver of continuing education requirements 31 for good cause. 32 (b) In lieu of meeting the requirements of subsection 33 (a) of this Section, an applicant for renewal of a license SB1704 Enrolled -9- LRB9113109ACtm 1 may satisfy up to 50%all or partof the requirements by 2 presenting evidence of participation as an instructor of 3 pre-licensure or continuing education courses licensed by the 4 Office and presented by providers licensed by the Office as 5 real estate appraisal education providersother than as a6student, in educational processes and programs approved7pursuant to subsection (a) that relate to real property8appraisal theory, practices, or techniques, including but not9limited to teaching, program development, and preparation of10textbooks, monographs, articles, and other instructional11materials. 12 (c) The Office of Banks and Real Estate may by rule 13 require periodic testing of a licensee's understanding of 14 this Act. Continuing education credit hours may be awarded 15 for successful completion of the periodic examination. 16 (d) The Office of Banks and Real Estate shall require by 17 rule the completion of course work in fair housing and fair 18 lending, which shall be included within the requirements of 19 this Section. 20 (Source: P.A. 90-571, eff. 7-1-98.) 21 (225 ILCS 457/90) 22 Sec. 90. Grounds for disciplinary action. 23 (a) Pursuant to the action and report in writing of the 24 Board, the Office of Banks and Real Estate may suspend, 25 revoke, or refuse to issue or renew the license of an 26 appraiser or place on probation or reprimand a licensee, may 27 impose a civil penalty not to exceed $10,000 upon a licensee, 28 or the holder of a license may be placed on administrative 29 supervision or otherwise disciplined for any one or 30 combination of the following reasons: 31 (1) Procuring or attempting to procure a license by 32 knowingly making a false statement, submitting false 33 information, refusing to provide complete information in SB1704 Enrolled -10- LRB9113109ACtm 1 response to a question in an application for licensure or 2 through any form of fraud or misrepresentation. 3 (2) Failing to meet the minimum qualifications for 4 licensure as an appraiser established by this Act. 5 (3) Paying money, other than for the fees provided 6 for by this Act, or anything of value to a member or 7 employee of the Board or Office of Banks and Real Estate 8 to procure licensure under this Act. 9 (4) A conviction of a crime, including conviction 10 based upon a plea of guilty or nolo contendere. 11 (5) An act or omission involving dishonesty, fraud, 12 or misrepresentation with the intent to substantially 13 benefit the licensee or another person or with intent to 14 substantially injure another person. 15 (6) Violation of a provision or standard for the 16 development or communication of real estate appraisals as 17 provided in Section 110 of this Act or by rule. 18 (7) Failure or refusal without good cause to 19 exercise reasonable diligence in developing and reporting 20 or communicating an appraisal. 21 (8) Negligence or incompetence in developing and 22 reporting or communicating an appraisal. 23 (9) Willfully disregarding or violating a provision 24 of this Act or its rules. 25 (10) Accepting an appraisal assignment for 26 valuation when the employment itself is contingent upon 27 the appraiser reporting a predetermined estimate, 28 analysis, or opinion or when the fee to be paid is 29 contingent upon the opinion, conclusion, or valuation 30 reached or upon the consequences resulting from the 31 appraisal assignment. 32 (11) Developing valuation conclusions based on the 33 race, color, religion, sex, national origin, ancestry, 34 age, marital status, familiar status, physical or mental SB1704 Enrolled -11- LRB9113109ACtm 1 handicap, or unfavorable military discharge, as defined 2 under the Illinois Human Rights Act, of the prospective 3 or present owners or occupants of the area or property 4 under appraisal. 5 (12) Violation of the confidential nature of 6 government records to which the licensee gained access 7 through employment or engagement as an appraiser by a 8 government agency. 9 (13) Adjudication of liability in a civil 10 proceeding on grounds of fraud, misrepresentation, or 11 deceit. In a disciplinary proceeding based upon a finding 12 of civil liability, the appraiser shall be afforded an 13 opportunity to present mitigating and extenuating 14 circumstances, but may not collaterally attack the civil 15 adjudication. 16 (14) Adjudication of liability in a civil 17 proceeding for violation of a State or federal fair 18 housing law. 19 (15) Engaging in misleading or untruthful 20 advertising or using a trade name or insignia of 21 membership in a real estate appraisal or real estate 22 related organization of which the licensee is not a 23 member. 24 (16) Failure to fully cooperate with an Office 25 investigation by knowingly making a false statement, 26 submitting false information, or refusing to provide 27 complete information in response to a question or other 28 requests by the Office. 29 (17) Failing to include within the certificate of 30 appraisal for all written appraisal reports the 31 appraiser's license number, licensure title (State 32 Licensed Real Estate Appraiser, State Certified 33 Residential Real Estate Appraiser, or State Certified 34 General Real Estate Appraiser), and the date of SB1704 Enrolled -12- LRB9113109ACtm 1 expiration of the license. All appraisers providing 2 significant contribution to the development and reporting 3 of an appraisal must be disclosed in the appraisal 4 report. It is a violation of this Act for an appraiser 5 to sign a report, transmittal letter, or appraisal 6 certification knowing that a person providing significant 7 contribution to the report has not been disclosed in the 8 appraisal report. 9 (b) Pursuant to the action and report in writing of the 10 Board, the Office of Banks and Real Estate may suspend, 11 revoke, place on probation, reprimand, or otherwise 12 discipline the license of an appraisal education course 13 provider or course license subordinate to the providership, 14 or may refuse to issue or renew a course license or 15 provider's license and may also impose a civil penalty not to 16 exceed $10,000 upon the holder of the course or provider's 17 license for any of the following acts or omissions: 18 (1) Procuring or attempting to procure licensure by 19 knowingly making a false statement, submitting false 20 information, refusing to provide complete information in 21 response to a question in an application for licensure or 22 through any form of fraud or misrepresentation. 23 (2) Failing to comply with covenants certified to 24 on the application for licensure as an appraisal 25 education provider, appraisal education subprovider, 26 prelicensure course, or continuing education course. 27 (3) An act or omission involving dishonesty, fraud, 28 or misrepresentation by the course provider or any 29 employees or independent contractors of the provider. 30 (4) Engaging in misleading or untruthful 31 advertising. 32 (5) Failing to retain competent instructors in 33 accordance with rules adopted under this Act. 34 (6) Failing to meet the topic or time requirements SB1704 Enrolled -13- LRB9113109ACtm 1 for course approval as a prelicensure curriculum course 2 or a continuing education course. 3 (7) Failing to administer a licensed course using 4 the course materials, syllabus, and examinations 5 submitted as the basis of licensure. 6 (8) Failing to provide an appropriate classroom 7 environment for presentation of courses with 8 consideration for student comfort, acoustics, lighting, 9 seating, work space, and visual aid material. 10 (9) Failing to maintain student records in 11 compliance with rules adopted under this Act. 12 (10) Failing to provide certificates, transcripts, 13 or other student records to the Office or student as may 14 be required by rule. 15 (11) Failure to fully cooperate with an Office 16 investigation by knowingly making a false statement, 17 submitting false information, or refusing to provide 18 complete information in response to a question or other 19 requests by the Office. 20 (c) Notwithstanding the provisions of this Act 21 concerning the conduct of hearings and recommendations for 22 disciplinary actions, a conference panel of the Board may 23 recommend to the Office of Banks and Real Estate who shall 24 have the authority to negotiate settlement agreements with 25 State Licensed Real Estate Appraisers, State Certified 26 General Real Estate Appraisers, State Certified Residential 27 Real Estate Appraisers, and appraiser education licensees or 28 applicants, resulting in disciplinary Consent Orders. Consent 29 Orders may provide for any of the forms of discipline 30 provided in this Act. Consent Orders shall provide that they 31 were not entered into as a result of any coercion by the 32 Office of Banks and Real Estate, the Director of Real Estate 33 Appraisal Administration, or the Board. A Consent Order shall 34 be filed with the Commissioner along with the Board's SB1704 Enrolled -14- LRB9113109ACtm 1 recommendation and accepted or rejected by the Commissioner 2 in a timely manner. 3 (d) Notwithstanding the provisions of this Act 4 concerning the conduct of hearings and recommendations for 5 disciplinary actions, a conference panel of the Board may 6 recommend to the Office of Banks and Real Estate who on the 7 Board shall have the authority to negotiate settlement 8 agreements with State Licensed Real Estate Appraisers, State 9 Certified General Real Estate Appraisers, State Certified 10 Residential Real Estate Appraisers, appraiser education 11 licensees or applicants, resulting in disciplinary Consent to 12 Administrative Supervision Orders. Consent to Administrative 13 Supervision Orders may be offered with conditions that may 14 include but shall not be limited to the respondent's 15 attendance and successful completion of appraisal courses, 16 payment of part or all of the investigation and prosecution 17 costs associated with the complaint and replacement of 18 appraiser rank with a lower rank. Consent to Administrative 19 Supervision Orders shall provide that they were not entered 20 into as a result of coercion by the Office of Banks and Real 21 Estate, the Director of Real Estate Appraisal Administration, 22 or the Board. Consent to Administrative Supervision Order 23 shall be filed with the Commissioner along with the Board's 24 recommendation and accepted or rejected by the Commissioner 25 in a timely manner. A licensee subject to a Consent to 26 Administrative Supervision Order shall be considered by the 27 Office as an active appraiser in good standing and the 28 records regarding an investigation and a Consent to 29 Administrative Supervision Order are confidential and shall 30 not be released by the Office except as mandated by law. 31 However, the complainant shall be notified that his or her 32 complaint has been resolved by administrative supervision of 33 the respondent. 34 (e) Civil penalties and costs collected under this SB1704 Enrolled -15- LRB9113109ACtm 1 Section are to be deposited into the Appraisal Administration 2 Fund. 3 (f) Civil penalties imposed by the Office of Banks and 4 Real Estate shall be enforceable in the Circuit Court. The 5 Office may petition the Court for a judgment to enforce 6 collection of the penalty. Any civil penalties collected by 7 the Court shall be made payable to the Office of Banks and 8 Real Estate for deposit into the Appraisal Administration 9 Fund. In addition to or in lieu of the imposition of a civil 10 penalty, the Office may report a violation of this Act or the 11 failure or refusal to comply with an order of the Office to 12 the Attorney General and the appropriate State's Attorney. 13 (Source: P.A. 90-571, eff. 7-1-98.) 14 (225 ILCS 457/95) 15 Sec. 95. Unlicensed practice; civil penalty. 16 (a) A person who practices, offers to practice, attempts 17 to practice, or holds himself or herself out to practice as a 18 State Licensed Real Estate Appraiser, State Certified 19 Residential Real Estate Appraiser, or State Certified General 20 Real Estate Appraiser without being licensed under this Act 21 shall, in addition to any other penalty provided by law, pay 22 a civil penalty to the Office of Banks and Real Estate in an 23 amount not to exceed $5,000 for each offense as determined by 24 the Office of Banks and Real Estate. The civil penalty shall 25 be assessed by the Office of Banks and Real Estate after a 26 hearing is held in accordance with the provisions set forth 27 in this Act regarding the provision of a hearing for the 28 discipline of a licensee. 29 (b) The Office of Banks and Real Estate has the 30 authority and power to investigate any and all unlicensed 31 appraiser activity concerning federally related transactions. 32 (c) Civil penalties imposed by the Office of Banks and 33 Real Estate shall be enforceable in the Circuit Court. The SB1704 Enrolled -16- LRB9113109ACtm 1 Office mayshallpetition the Court for a judgmentan order2 to enforce collection of the penaltyand, if the Court finds3it has jurisdiction over the person against whom the penalty4was imposed, the Court shall issue the appropriate order. 5 Any civil penalties collected by the Court shall be made 6 payable to the Office of Banks and Real Estate for deposit 7 into the Appraisal Administration Fundforwarded to the State8Treasurer. In addition to or in lieu of the imposition of a 9 civil penalty, the Office may report a violation of this Act 10 orandthe failure or refusal to comply with antheorder of 11 the Office to the Attorney General and the appropriate 12 State's Attorney. 13 (Source: P.A. 90-571, eff. 7-1-98.)