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| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1830 Introduced 2/9/2011, by Sen. Dan Kotowski SYNOPSIS AS INTRODUCED:
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| 225 ILCS 454/20-20 | | 225 ILCS 454/20-78 new | |
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Amends the Real Estate License Act of 2000. Changes provisions concerning the grounds for discipline of a licensee for convictions of certain crimes. 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. Effective immediately.
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| | A BILL FOR |
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| | SB1830 | | LRB097 08660 CEL 48789 b |
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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 License Act of 2000 is amended |
5 | | by changing Section 20-20 and by adding Section 20-78 as |
6 | | follows:
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7 | | (225 ILCS 454/20-20)
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8 | | (Section scheduled to be repealed on January 1, 2020)
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9 | | Sec. 20-20. Grounds for discipline. |
10 | | (a) The Department may refuse to issue or renew or a |
11 | | license, may revoke, suspend, place on probation, suspend,
or
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12 | | revoke any
license, reprimand, or take any other disciplinary |
13 | | or non-disciplinary action as the Department may deem |
14 | | appropriate, including imposing fines proper or impose a
fine |
15 | | not to exceed
$25,000 upon any licensee under this Act or |
16 | | against a licensee in handling his or her own property, whether |
17 | | held by deed, option, or otherwise , for each violation, with |
18 | | regard to any license, for any one or any combination of the
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19 | | following causes :
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20 | | (1) Fraud or misrepresentation in applying for, or |
21 | | procuring, a license under this Act or in connection with |
22 | | applying for renewal of a license under this Act.
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23 | | (2) Conviction by plea of guilty or nolo contendere, |
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1 | | finding of guilt, jury verdict, or entry of judgment or by |
2 | | sentencing of any crime, including, but not limited to, |
3 | | convictions, preceding sentences of supervision, |
4 | | conditional discharge, or first offender probation, under |
5 | | the laws of any jurisdiction of the United States: (i) that |
6 | | is a felony; or (ii) that is a misdemeanor, an essential |
7 | | element of which is dishonesty, or that is directly related |
8 | | to the practice of the profession. The conviction of, plea |
9 | | of guilty or plea of nolo contendre to a felony or |
10 | | misdemeanor, an
essential element of which is dishonesty or |
11 | | fraud or larceny, embezzlement,
or obtaining money, |
12 | | property, or credit by false pretenses or by means of a
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13 | | confidence
game, in this State, or any other jurisdiction.
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14 | | (3) Inability to practice the profession with |
15 | | reasonable judgment, skill, or safety as a result of a |
16 | | physical illness, including, but not limited to, |
17 | | deterioration through the aging process or loss of motor |
18 | | skill, or a mental illness or disability.
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19 | | (4) Practice under this Act as a licensee in a retail |
20 | | sales establishment from an office, desk, or space that
is |
21 | | not
separated from the main retail business by a separate |
22 | | and distinct area within
the
establishment.
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23 | | (5) Disciplinary action of another state or |
24 | | jurisdiction against the license or other authorization to |
25 | | practice as a managing broker, broker, salesperson, or |
26 | | leasing agent if at least one of the grounds for that |
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1 | | discipline is the same as or
the
equivalent of one of the |
2 | | grounds for discipline set forth in this Act. A certified |
3 | | copy of the record of the action by the other state or |
4 | | jurisdiction shall be prima facie evidence thereof.
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5 | | (6) Engaging in the practice of real estate brokerage
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6 | | without a
license or after the licensee's license was |
7 | | expired or while the license was
inoperative.
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8 | | (7) Cheating on or attempting to subvert the Real
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9 | | Estate License Exam or continuing education exam. |
10 | | (8) Aiding or abetting an applicant
to
subvert or cheat |
11 | | on the Real Estate License Exam or continuing education |
12 | | exam
administered pursuant to this Act.
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13 | | (9) Advertising that is inaccurate, misleading, or |
14 | | contrary to the provisions of the Act.
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15 | | (10) Making any substantial misrepresentation or |
16 | | untruthful advertising.
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17 | | (11) Making any false promises of a character likely to |
18 | | influence,
persuade,
or induce.
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19 | | (12) Pursuing a continued and flagrant course of |
20 | | misrepresentation or the
making
of false promises through |
21 | | licensees, employees, agents, advertising, or
otherwise.
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22 | | (13) Any misleading or untruthful advertising, or |
23 | | using any trade name or
insignia of membership in any real |
24 | | estate organization of which the licensee is
not a member.
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25 | | (14) Acting for more than one party in a transaction |
26 | | without providing
written
notice to all parties for whom |
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1 | | the licensee acts.
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2 | | (15) Representing or attempting to represent a broker |
3 | | other than the
sponsoring broker.
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4 | | (16) Failure to account for or to remit any moneys or |
5 | | documents coming into
his or her possession that belong to |
6 | | others.
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7 | | (17) Failure to maintain and deposit in a special |
8 | | account, separate and
apart from
personal and other |
9 | | business accounts, all escrow moneys belonging to others
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10 | | entrusted to a licensee
while acting as a real estate |
11 | | broker, escrow agent, or temporary custodian of
the funds |
12 | | of others or
failure to maintain all escrow moneys on |
13 | | deposit in the account until the
transactions are
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14 | | consummated or terminated, except to the extent that the |
15 | | moneys, or any part
thereof, shall be: |
16 | | (A)
disbursed prior to the consummation or |
17 | | termination (i) in accordance with
the
written |
18 | | direction of
the principals to the transaction or their |
19 | | duly authorized agents, (ii) in accordance with
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20 | | directions providing for the
release, payment, or |
21 | | distribution of escrow moneys contained in any written
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22 | | contract signed by the
principals to the transaction or |
23 | | their duly authorized agents,
or (iii)
pursuant to an |
24 | | order of a court of competent
jurisdiction; or |
25 | | (B) deemed abandoned and transferred to the Office |
26 | | of the State Treasurer to be handled as unclaimed |
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1 | | property pursuant to the Uniform Disposition of |
2 | | Unclaimed Property Act. Escrow moneys may be deemed |
3 | | abandoned under this subparagraph (B) only: (i) in the |
4 | | absence of disbursement under subparagraph (A); (ii) |
5 | | in the absence of notice of the filing of any claim in |
6 | | a court of competent jurisdiction; and (iii) if 6 |
7 | | months have elapsed after the receipt of a written |
8 | | demand for the escrow moneys from one of the principals |
9 | | to the transaction or the principal's duly authorized |
10 | | agent.
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11 | | The account
shall be noninterest
bearing, unless the |
12 | | character of the deposit is such that payment of interest
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13 | | thereon is otherwise
required by law or unless the |
14 | | principals to the transaction specifically
require, in |
15 | | writing, that the
deposit be placed in an interest bearing |
16 | | account.
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17 | | (18) Failure to make available to the Department all |
18 | | escrow records and related documents
maintained in |
19 | | connection
with the practice of real estate within 24 hours |
20 | | of a request for those
documents by Department personnel.
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21 | | (19) Failing to furnish copies upon request of |
22 | | documents relating to a
real
estate transaction to a party |
23 | | who has executed that document.
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24 | | (20) Failure of a sponsoring broker to timely provide |
25 | | information, sponsor
cards,
or termination of licenses to |
26 | | the Department.
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1 | | (21) Engaging in dishonorable, unethical, or |
2 | | unprofessional conduct of a
character
likely to deceive, |
3 | | defraud, or harm the public.
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4 | | (22) Commingling the money or property of others with |
5 | | his or her own money or property.
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6 | | (23) Employing any person on a purely temporary or |
7 | | single deal basis as a
means
of evading the law regarding |
8 | | payment of commission to nonlicensees on some
contemplated
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9 | | transactions.
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10 | | (24) Permitting the use of his or her license as a |
11 | | broker to enable a
salesperson or
unlicensed person to |
12 | | operate a real estate business without actual
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13 | | participation therein and control
thereof by the broker.
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14 | | (25) Any other conduct, whether of the same or a |
15 | | different character from
that
specified in this Section, |
16 | | that constitutes dishonest dealing.
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17 | | (26) Displaying a "for rent" or "for sale" sign on any |
18 | | property without
the written
consent of an owner or his or |
19 | | her duly authorized agent or advertising by any
means that |
20 | | any property is
for sale or for rent without the written |
21 | | consent of the owner or his or her
authorized agent.
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22 | | (27) Failing to provide information requested by the |
23 | | Department, or otherwise respond to that request, within 30 |
24 | | days of
the
request.
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25 | | (28) Advertising by means of a blind advertisement, |
26 | | except as otherwise
permitted in Section 10-30 of this Act.
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1 | | (29) Offering guaranteed sales plans, as defined in |
2 | | clause (A) of
this subdivision (29), except to
the extent |
3 | | hereinafter set forth:
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4 | | (A) A "guaranteed sales plan" is any real estate |
5 | | purchase or sales plan
whereby a licensee enters into a |
6 | | conditional or unconditional written contract
with a |
7 | | seller, prior to entering into a brokerage agreement |
8 | | with the seller, by the
terms of which a licensee |
9 | | agrees to purchase a property of the seller within a
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10 | | specified period of time
at a specific price in the |
11 | | event the property is not sold in accordance with
the |
12 | | terms of a brokerage agreement to be entered into |
13 | | between the sponsoring broker and the seller.
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14 | | (B) A licensee offering a guaranteed sales plan |
15 | | shall provide the
details
and conditions of the plan in |
16 | | writing to the party to whom the plan is
offered.
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17 | | (C) A licensee offering a guaranteed sales plan |
18 | | shall provide to the
party
to whom the plan is offered |
19 | | evidence of sufficient financial resources to
satisfy |
20 | | the commitment to
purchase undertaken by the broker in |
21 | | the plan.
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22 | | (D) Any licensee offering a guaranteed sales plan |
23 | | shall undertake to
market the property of the seller |
24 | | subject to the plan in the same manner in
which the |
25 | | broker would
market any other property, unless the |
26 | | agreement with the seller provides
otherwise.
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1 | | (E) The licensee cannot purchase seller's property |
2 | | until the brokerage agreement has ended according to |
3 | | its terms or is otherwise terminated. |
4 | | (F) Any licensee who fails to perform on a |
5 | | guaranteed sales plan in
strict accordance with its |
6 | | terms shall be subject to all the penalties provided
in |
7 | | this Act for
violations thereof and, in addition, shall |
8 | | be subject to a civil fine payable
to the party injured |
9 | | by the
default in an amount of up to $25,000.
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10 | | (30) Influencing or attempting to influence, by any |
11 | | words or acts, a
prospective
seller, purchaser, occupant, |
12 | | landlord, or tenant of real estate, in connection
with |
13 | | viewing, buying, or
leasing real estate, so as to promote |
14 | | or tend to promote the continuance
or maintenance of
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15 | | racially and religiously segregated housing or so as to |
16 | | retard, obstruct, or
discourage racially
integrated |
17 | | housing on or in any street, block, neighborhood, or |
18 | | community.
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19 | | (31) Engaging in any act that constitutes a violation |
20 | | of any provision of
Article 3 of the Illinois Human Rights |
21 | | Act, whether or not a complaint has
been filed with or
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22 | | adjudicated by the Human Rights Commission.
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23 | | (32) Inducing any party to a contract of sale or lease |
24 | | or brokerage
agreement to
break the contract of sale or |
25 | | lease or brokerage agreement for the purpose of
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26 | | substituting, in lieu
thereof, a new contract for sale or |
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1 | | lease or brokerage agreement with a third
party.
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2 | | (33) Negotiating a sale, exchange, or lease of real |
3 | | estate directly with
any person
if the licensee knows that |
4 | | the person has an exclusive brokerage
agreement with |
5 | | another
broker, unless specifically authorized by that |
6 | | broker.
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7 | | (34) When a licensee is also an attorney, acting as the |
8 | | attorney for
either the
buyer or the seller in the same |
9 | | transaction in which the licensee is acting or
has acted as |
10 | | a broker
or salesperson.
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11 | | (35) Advertising or offering merchandise or services |
12 | | as free if any
conditions or
obligations necessary for |
13 | | receiving the merchandise or services are not
disclosed in |
14 | | the same
advertisement or offer. These conditions or |
15 | | obligations include without
limitation the
requirement |
16 | | that the recipient attend a promotional activity or visit a |
17 | | real
estate site. As used in this
subdivision (35), "free" |
18 | | includes terms such as "award", "prize", "no charge",
"free |
19 | | of charge",
"without charge", and similar words or phrases |
20 | | that reasonably lead a person to
believe that he or she
may |
21 | | receive or has been selected to receive something of value, |
22 | | without any
conditions or
obligations on the part of the |
23 | | recipient.
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24 | | (36) Disregarding or violating any provision of the |
25 | | Land Sales
Registration Act of 1989, the Illinois Real |
26 | | Estate
Time-Share Act, or the published rules promulgated |
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1 | | by the Department to enforce
those Acts.
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2 | | (37) Violating the terms of a disciplinary order
issued |
3 | | by the Department.
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4 | | (38) Paying or failing to disclose compensation in |
5 | | violation of Article 10 of this Act.
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6 | | (39) Requiring a party to a transaction who is not a |
7 | | client of the
licensee
to allow the licensee to retain a |
8 | | portion of the escrow moneys for payment of
the licensee's |
9 | | commission or expenses as a condition for release of the |
10 | | escrow
moneys to that party.
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11 | | (40) Disregarding or violating any provision of this |
12 | | Act or the published
rules
promulgated by the Department to |
13 | | enforce this Act or aiding or abetting any individual,
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14 | | partnership, registered limited liability partnership, |
15 | | limited liability
company, or corporation in
disregarding |
16 | | any provision of this Act or the published rules |
17 | | promulgated by the Department
to enforce this Act.
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18 | | (41) Failing to provide the minimum services required |
19 | | by Section 15-75 of this Act when acting under an exclusive |
20 | | brokerage agreement.
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21 | | (42) Habitual or excessive use or addiction to alcohol, |
22 | | narcotics, stimulants, or any other chemical agent or drug |
23 | | that results in a managing broker, broker, salesperson, or |
24 | | leasing agent's inability to practice with reasonable |
25 | | skill or safety. |
26 | | (b) The Department may refuse to issue or renew or may |
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1 | | suspend the license of any person who fails to file a return, |
2 | | pay the tax, penalty or interest shown in a filed return, or |
3 | | pay any final assessment of tax, penalty, or interest, as |
4 | | required by any tax Act administered by the Department of |
5 | | Revenue, until such time as the requirements of that tax Act |
6 | | are satisfied in accordance with subsection (g) of Section |
7 | | 2105-15 of the Civil Administrative Code of Illinois. |
8 | | (c) The Department shall deny a license or renewal |
9 | | authorized by this Act to a person who has defaulted on an |
10 | | educational loan or scholarship provided or guaranteed by the |
11 | | Illinois Student Assistance Commission or any governmental |
12 | | agency of this State in accordance with item (5) of subsection |
13 | | (g) of Section 2105-15 of the Civil Administrative Code of |
14 | | Illinois. |
15 | | (d) In cases where the Department of Healthcare and Family |
16 | | Services (formerly Department of Public Aid) has previously |
17 | | determined that a licensee or a potential licensee is more than |
18 | | 30 days delinquent in the payment of child support and has |
19 | | subsequently certified the delinquency to the Department may |
20 | | refuse to issue or renew or may revoke or suspend that person's |
21 | | license or may take other disciplinary action against that |
22 | | person based solely upon the certification of delinquency made |
23 | | by the Department of Healthcare and Family Services in |
24 | | accordance with item (5) of subsection (g) of Section 2105-15 |
25 | | of the Civil Administrative Code of Illinois. |
26 | | (e) In enforcing this Section, the Department or Board upon |
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1 | | a showing of a possible violation may compel an individual |
2 | | licensed to practice under this Act, or who has applied for |
3 | | licensure under this Act, to submit to a mental or physical |
4 | | examination, or both, as required by and at the expense of the |
5 | | Department. The Department or Board may order the examining |
6 | | physician to present testimony concerning the mental or |
7 | | physical examination of the licensee or applicant. No |
8 | | information shall be excluded by reason of any common law or |
9 | | statutory privilege relating to communications between the |
10 | | licensee or applicant and the examining physician. The |
11 | | examining physicians shall be specifically designated by the |
12 | | Board or Department. The individual to be examined may have, at |
13 | | his or her own expense, another physician of his or her choice |
14 | | present during all aspects of this examination. Failure of an |
15 | | individual to submit to a mental or physical examination, when |
16 | | directed, shall be grounds for suspension of his or her license |
17 | | until the individual submits to the examination if the |
18 | | Department finds, after notice and hearing, that the refusal to |
19 | | submit to the examination was without reasonable cause. |
20 | | If the Department or Board finds an individual unable to |
21 | | practice because of the reasons set forth in this Section, the |
22 | | Department or Board may require that individual to submit to |
23 | | care, counseling, or treatment by physicians approved or |
24 | | designated by the Department or Board, as a condition, term, or |
25 | | restriction for continued, reinstated, or renewed licensure to |
26 | | practice; or, in lieu of care, counseling, or treatment, the |
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1 | | Department may file, or the Board may recommend to the |
2 | | Department to file, a complaint to immediately suspend, revoke, |
3 | | or otherwise discipline the license of the individual. An |
4 | | individual whose license was granted, continued, reinstated, |
5 | | renewed, disciplined or supervised subject to such terms, |
6 | | conditions, or restrictions, and who fails to comply with such |
7 | | terms, conditions, or restrictions, shall be referred to the |
8 | | Secretary for a determination as to whether the individual |
9 | | shall have his or her license suspended immediately, pending a |
10 | | hearing by the Department. |
11 | | In instances in which the Secretary immediately suspends a |
12 | | person's license under this Section, a hearing on that person's |
13 | | license must be convened by the Department within 30 days after |
14 | | the suspension and completed without appreciable delay. The |
15 | | Department and Board shall have the authority to review the |
16 | | subject individual's record of treatment and counseling |
17 | | regarding the impairment to the extent permitted by applicable |
18 | | federal statutes and regulations safeguarding the |
19 | | confidentiality of medical records. |
20 | | An individual licensed under this Act and affected under |
21 | | this Section shall be afforded an opportunity to demonstrate to |
22 | | the Department or Board that he or she can resume practice in |
23 | | compliance with acceptable and prevailing standards under the |
24 | | provisions of his or her license. |
25 | | (Source: P.A. 95-851, eff. 1-1-09; 96-856, eff. 12-31-09.)
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1 | | (225 ILCS 454/20-78 new) |
2 | | Sec. 20-78. Confidentiality. All information collected by |
3 | | the Department in the course of an examination or investigation |
4 | | of a licensee or applicant, including, but not limited to, any |
5 | | complaint against a licensee filed with the Department and |
6 | | information collected to investigate any such complaint, shall |
7 | | be maintained for the confidential use of the Department and |
8 | | shall not be disclosed. The Department may not disclose the |
9 | | information to anyone other than law enforcement officials, |
10 | | other regulatory agencies that have an appropriate regulatory |
11 | | interest as determined by the Secretary, or to a party |
12 | | presenting a lawful subpoena to the Department. Information and |
13 | | documents disclosed to a federal, State, county, or local law |
14 | | enforcement agency shall not be disclosed by the agency for any |
15 | | purpose to any other agency or person. A formal complaint filed |
16 | | against a licensee by the Department or any order issued by the |
17 | | Department against a licensee or applicant shall be a public |
18 | | record, except as otherwise prohibited by law.
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19 | | Section 99. Effective date. This Act takes effect upon |
20 | | becoming law.
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