Bill Text: IL SB1830 | 2011-2012 | 97th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: 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.
Spectrum: Moderate Partisan Bill (Democrat 10-2)
Status: (Passed) 2012-02-06 - Public Act . . . . . . . . . 97-0679 [SB1830 Detail]
Download: Illinois-2011-SB1830-Introduced.html
Bill Title: 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.
Spectrum: Moderate Partisan Bill (Democrat 10-2)
Status: (Passed) 2012-02-06 - Public Act . . . . . . . . . 97-0679 [SB1830 Detail]
Download: Illinois-2011-SB1830-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 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.
|