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| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2852 Introduced 2/13/2018, by Sen. Pamela J. Althoff SYNOPSIS AS INTRODUCED:
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Amends the Real Estate Appraiser Licensing Act of 2002 and Appraisal Management Company Registration Act. Provides that the Secretary of Financial and Professional Regulation may require participation in a third-party, multi-state licensing system for the licensing of certified general real estate appraisers, certified residential real estate appraisers, associate real estate trainee appraisers, and real estate appraisal education providers; and registration of appraisal management companies. Makes corresponding changes in both Acts. Provides that the multi-state licensing system may share regulatory information and maintain records in compliance with the provisions of the Acts. Provides that the multi-state licensing system may charge an applicant an administration fee that shall be paid directly to the system. Defines "multi-state licensing system". In provisions of the Real Estate Appraiser Licensing Act of 2002 concerning criminal history record checks, provides that the Secretary may designate a multi-state licensing system to perform the checks. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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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 1-10, 5-10, 5-15, 5-20, 5-22, |
| 6 | | 5-25, 5-55, 20-5, and 20-10 and by adding Section 5-7 as |
| 7 | | follows:
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| 8 | | (225 ILCS 458/1-10)
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| 9 | | (Section scheduled to be repealed on January 1, 2022)
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| 10 | | Sec. 1-10. Definitions. As used in this Act, unless the |
| 11 | | context
otherwise requires:
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| 12 | | "Accredited college or university, junior college, or |
| 13 | | community college" means a college or university, junior |
| 14 | | college, or community college that is approved or accredited by |
| 15 | | the Board of Higher Education, a regional or national |
| 16 | | accreditation association, or by an accrediting agency that is |
| 17 | | recognized by the U.S. Secretary of Education.
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| 18 | | "Address of record" means the designated address recorded |
| 19 | | by the Department in the applicant's or licensee's application |
| 20 | | file or license file as maintained by the Department's |
| 21 | | licensure maintenance unit. It is the duty of the applicant or |
| 22 | | licensee to inform the Department of any change of address and |
| 23 | | those changes must be made either through the Department's |
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| 1 | | website or by contacting the Department. |
| 2 | | "Applicant" means person who applies to the Department
for |
| 3 | | a license under this Act.
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| 4 | | "Appraisal" means
(noun) the act or process of developing |
| 5 | | an opinion
of value; an
opinion of value (adjective) of or |
| 6 | | pertaining to appraising
and related functions, such as |
| 7 | | appraisal practice or appraisal services. |
| 8 | | "Appraisal assignment" means a valuation service provided |
| 9 | | as a consequence of an agreement between an appraiser and a |
| 10 | | client. |
| 11 | | "Appraisal consulting" means the act or process of |
| 12 | | developing an analysis, recommendation, or opinion to solve a |
| 13 | | problem, where an opinion of value is a component of the |
| 14 | | analysis leading to the assignment results. |
| 15 | | "Appraisal firm" means an appraisal entity that is 100% |
| 16 | | owned and controlled by a person or persons licensed in |
| 17 | | Illinois as a certified general real estate appraiser or a |
| 18 | | certified residential real estate appraiser. "Appraisal firm" |
| 19 | | does not include an appraisal management company. |
| 20 | | "Appraisal management company" means any corporation, |
| 21 | | limited liability company, partnership, sole proprietorship, |
| 22 | | subsidiary, unit, or other business entity that directly or |
| 23 | | indirectly performs the following appraisal management |
| 24 | | services: (1) administers networks of independent contractors |
| 25 | | or employee appraisers to perform real estate appraisal |
| 26 | | assignments for clients; (2) receives requests for real estate |
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| 1 | | appraisal services from clients and, for a fee paid by the |
| 2 | | client, enters into an agreement with one or more independent |
| 3 | | appraisers to perform the real estate appraisal services |
| 4 | | contained in the request; or (3) otherwise serves as a |
| 5 | | third-party broker of appraisal management services between |
| 6 | | clients and appraisers. "Appraisal management company" does |
| 7 | | not include an appraisal firm. |
| 8 | | "Appraisal practice" means valuation services performed by |
| 9 | | an individual acting as an appraiser, including, but not |
| 10 | | limited to, appraisal, appraisal review, or appraisal |
| 11 | | consulting.
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| 12 | | "Appraisal report" means any communication, written or |
| 13 | | oral, of an appraisal or appraisal review that is transmitted |
| 14 | | to a client upon completion of an assignment.
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| 15 | | "Appraisal review" means the act or process of developing |
| 16 | | and communicating an opinion about the quality of another |
| 17 | | appraiser's work that was performed as part of an appraisal, |
| 18 | | appraisal review, or appraisal assignment.
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| 19 | | "Appraisal Subcommittee" means the Appraisal Subcommittee |
| 20 | | of the Federal
Financial Institutions
Examination Council as |
| 21 | | established by Title XI.
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| 22 | | "Appraiser" means a person who performs
real estate or real |
| 23 | | property
appraisals.
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| 24 | | "AQB" means the Appraisal Qualifications Board of the |
| 25 | | Appraisal Foundation.
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| 26 | | "Associate real estate trainee appraiser" means an |
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| 1 | | entry-level appraiser who holds
a license of this |
| 2 | | classification under this Act with restrictions as to the scope |
| 3 | | of practice
in
accordance with this Act.
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| 4 | | "Board" means the Real Estate Appraisal Administration and |
| 5 | | Disciplinary Board.
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| 6 | | "Broker price opinion" means an estimate or analysis of the |
| 7 | | probable selling price of a particular interest in real estate, |
| 8 | | which may provide a varying level of detail about the |
| 9 | | property's condition, market, and neighborhood and information |
| 10 | | on comparable sales. The activities of a real estate broker or |
| 11 | | managing broker engaging in the ordinary course of business as |
| 12 | | a broker, as defined in this Section, shall not be considered a |
| 13 | | broker price opinion if no compensation is paid to the broker |
| 14 | | or managing broker, other than compensation based upon the sale |
| 15 | | or rental of real estate. |
| 16 | | "Classroom hour" means 50 minutes of instruction out of |
| 17 | | each 60 minute
segment of coursework.
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| 18 | | "Client" means the party or parties who engage an appraiser |
| 19 | | by employment or contract in a specific appraisal assignment.
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| 20 | | "Comparative market analysis" is an analysis or opinion |
| 21 | | regarding pricing, marketing, or financial aspects relating to |
| 22 | | a specified interest or interests in real estate that may be |
| 23 | | based upon an analysis of comparative market data, the |
| 24 | | expertise of the real estate broker or managing broker, and |
| 25 | | such other factors as the broker or managing broker may deem |
| 26 | | appropriate in developing or preparing such analysis or |
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| 1 | | opinion. The activities of a real estate broker or managing |
| 2 | | broker engaging in the ordinary course of business as a broker, |
| 3 | | as defined in this Section, shall not be considered a |
| 4 | | comparative market analysis if no compensation is paid to the |
| 5 | | broker or managing broker, other than compensation based upon |
| 6 | | the sale or rental of real estate. |
| 7 | | "Coordinator" means the Coordinator of Real Estate |
| 8 | | Appraisal of the Division of Professional Regulation of the |
| 9 | | Department of Financial and Professional Regulation.
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| 10 | | "Department" means the Department of Financial and |
| 11 | | Professional Regulation.
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| 12 | | "Federal financial institutions regulatory agencies" means |
| 13 | | the Board of
Governors of the Federal Reserve
System, the |
| 14 | | Federal Deposit Insurance Corporation, the Office of the
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| 15 | | Comptroller of the Currency, the
Consumer Financial Protection |
| 16 | | Bureau, and the National Credit Union Administration.
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| 17 | | "Federally related transaction" means any real |
| 18 | | estate-related financial
transaction in which a federal
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| 19 | | financial institutions regulatory agency
engages in, contracts |
| 20 | | for, or
regulates and requires the services
of an appraiser.
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| 21 | | "Financial institution" means any bank, savings bank, |
| 22 | | savings and loan
association, credit union,
mortgage broker, |
| 23 | | mortgage banker, licensee under the Consumer Installment Loan
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| 24 | | Act or the Sales
Finance Agency Act, or a corporate fiduciary, |
| 25 | | subsidiary, affiliate, parent
company, or holding company
of |
| 26 | | any such licensee, or any institution involved in real estate |
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| 1 | | financing that
is regulated by state or
federal law.
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| 2 | | "Multi-state licensing system" means a web-based platform |
| 3 | | that allows an applicant to submit his or her application or |
| 4 | | license renewal application to the Department online. |
| 5 | | "Person" means an individual, entity, sole proprietorship, |
| 6 | | corporation, limited liability company, partnership, and joint |
| 7 | | venture, foreign or domestic, except that when the context |
| 8 | | otherwise requires, the term may refer to more than one |
| 9 | | individual or other described entity. |
| 10 | | "Real estate" means an identified parcel or tract of land, |
| 11 | | including any
improvements.
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| 12 | | "Real estate related financial transaction" means any |
| 13 | | transaction involving:
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| 14 | | (1) the sale, lease, purchase, investment in, or |
| 15 | | exchange of real
property,
including interests
in property |
| 16 | | or the financing thereof;
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| 17 | | (2) the refinancing of real property or interests in |
| 18 | | real property; and
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| 19 | | (3) the use of real property or interest in property as |
| 20 | | security for a
loan or
investment,
including mortgage |
| 21 | | backed securities.
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| 22 | | "Real property" means the interests, benefits, and rights |
| 23 | | inherent in the
ownership of real estate.
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| 24 | | "Secretary" means the Secretary of Financial and |
| 25 | | Professional Regulation.
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| 26 | | "State certified general real estate
appraiser" means an |
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| 1 | | appraiser who holds a
license of this classification under this |
| 2 | | Act
and such classification applies to
the appraisal of all |
| 3 | | types of real property without restrictions as to
the scope of |
| 4 | | practice.
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| 5 | | "State certified residential real estate
appraiser" means |
| 6 | | an appraiser who
holds a
license of this classification
under |
| 7 | | this Act
and such classification applies to
the appraisal of
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| 8 | | one to 4 units of
residential real property without regard to |
| 9 | | transaction value or complexity,
but with restrictions as to |
| 10 | | the
scope of practice
in a federally related transaction in |
| 11 | | accordance with Title
XI, the provisions of USPAP,
criteria |
| 12 | | established by the AQB, and further defined by rule.
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| 13 | | "Supervising appraiser" means either (i) an appraiser who |
| 14 | | holds a valid license under this Act as either a State |
| 15 | | certified general real estate appraiser or a State certified |
| 16 | | residential real estate appraiser, who co-signs an appraisal |
| 17 | | report for an associate real estate trainee appraiser or (ii) a |
| 18 | | State certified general real estate appraiser who holds a valid |
| 19 | | license under this Act who co-signs an appraisal report for a |
| 20 | | State certified residential real estate appraiser on |
| 21 | | properties other than one to 4 units of residential real |
| 22 | | property without regard to transaction value or complexity.
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| 23 | | "Title XI" means Title XI of the federal Financial |
| 24 | | Institutions Reform,
Recovery and
Enforcement Act of 1989.
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| 25 | | "USPAP" means the Uniform Standards of Professional |
| 26 | | Appraisal Practice as
promulgated by the
Appraisal Standards |
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| 1 | | Board pursuant to Title XI and by rule.
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| 2 | | "Valuation services" means services pertaining to aspects |
| 3 | | of property value. |
| 4 | | (Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15.)
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| 5 | | (225 ILCS 458/5-7 new) |
| 6 | | Sec. 5-7. Multi-state licensing system. The Secretary may |
| 7 | | require participation in a third-party, multi-state licensing |
| 8 | | system for licensing under this Act. The multi-state licensing |
| 9 | | system may share regulatory information and maintain records in |
| 10 | | compliance with the provisions of this Act. The multi-state |
| 11 | | licensing system may charge an applicant an administration fee.
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| 12 | | (225 ILCS 458/5-10)
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| 13 | | (Section scheduled to be repealed on January 1, 2022)
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| 14 | | Sec. 5-10. Application for State
certified general real |
| 15 | | estate appraiser.
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| 16 | | (a) Every person who
desires to obtain a State certified |
| 17 | | general real estate appraiser license
shall:
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| 18 | | (1) apply to the Department
on forms provided by the |
| 19 | | Department, or through a multi-state licensing system as |
| 20 | | designated by the Secretary,
accompanied by the required |
| 21 | | fee;
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| 22 | | (2) be at least 18 years of age;
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| 23 | | (3) (blank);
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| 24 | | (4) personally take and pass an examination authorized |
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| 1 | | by the Department
and endorsed
by the AQB;
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| 2 | | (5) prior to taking the examination, provide evidence |
| 3 | | to the Department, or through a multi-state licensing |
| 4 | | system as designated by the Secretary, in Modular Course |
| 5 | | format, with each module conforming to the Required Core |
| 6 | | Curriculum established and adopted by the AQB,
that he or |
| 7 | | she
has successfully completed the prerequisite
classroom |
| 8 | | hours of instruction in appraising as established by the |
| 9 | | AQB and by
rule; and
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| 10 | | (6) prior to taking the examination, provide evidence
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| 11 | | to the Department, or through a multi-state licensing |
| 12 | | system as designated by the Secretary,
that he or she has |
| 13 | | successfully completed the prerequisite
experience and |
| 14 | | educational requirements in appraising as established by |
| 15 | | AQB and by rule.
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| 16 | | (b) Applicants must provide evidence to the Department, or |
| 17 | | through a multi-state licensing system as designated by the |
| 18 | | Secretary, of holding a Bachelor's degree or higher from an |
| 19 | | accredited college or university. |
| 20 | | (Source: P.A. 98-1109, eff. 1-1-15.)
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| 21 | | (225 ILCS 458/5-15)
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| 22 | | (Section scheduled to be repealed on January 1, 2022)
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| 23 | | Sec. 5-15. Application for State certified residential |
| 24 | | real estate
appraiser. Every person who
desires to obtain a |
| 25 | | State certified residential real estate appraiser license
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| 1 | | shall:
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| 2 | | (1) apply to the Department
on forms provided by the |
| 3 | | Department, or through a multi-state licensing system as |
| 4 | | designated by the Secretary,
accompanied by the required |
| 5 | | fee;
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| 6 | | (2) be at least 18 years of age;
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| 7 | | (3) (blank);
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| 8 | | (4) personally take and pass an examination authorized |
| 9 | | by the Department
and endorsed
by
the AQB;
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| 10 | | (5) prior to taking the examination, provide evidence
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| 11 | | to the Department, or through a multi-state licensing |
| 12 | | system as designated by the Secretary, in Modular Course |
| 13 | | format, with each module conforming to the Required Core |
| 14 | | Curriculum established and adopted by the AQB,
that he or |
| 15 | | she has successfully completed the prerequisite
classroom |
| 16 | | hours of instruction in appraising as established by the |
| 17 | | AQB and by
rule; and
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| 18 | | (6) prior to taking the examination, provide evidence
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| 19 | | to the Department, or through a multi-state licensing |
| 20 | | system as designated by the Secretary,
that he or she has |
| 21 | | successfully completed the prerequisite
experience and |
| 22 | | educational requirements as established by AQB and by rule.
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| 23 | | (Source: P.A. 100-201, eff. 8-18-17.)
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| 24 | | (225 ILCS 458/5-20)
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| 25 | | (Section scheduled to be repealed on January 1, 2022)
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| 1 | | Sec. 5-20. Application for associate real estate trainee
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| 2 | | appraiser. Every person who desires to obtain an associate real |
| 3 | | estate trainee appraiser
license shall:
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| 4 | | (1) apply to the Department
on forms provided by the |
| 5 | | Department, or through a multi-state licensing system as |
| 6 | | designated by the Secretary,
accompanied by the required
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| 7 | | fee;
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| 8 | | (2) be at least 18 years of age;
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| 9 | | (3) provide evidence of having attained a high school |
| 10 | | diploma or completed
an
equivalent course of
study as |
| 11 | | determined by an examination conducted
or accepted
by the |
| 12 | | Illinois State Board of
Education;
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| 13 | | (4) personally take and pass an examination authorized |
| 14 | | by the Department; and
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| 15 | | (5) prior to taking the examination, provide evidence
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| 16 | | to the Department, or through a multi-state licensing |
| 17 | | system as designated by the Secretary,
that he or she has |
| 18 | | successfully
completed
the prerequisite qualifying and any |
| 19 | | conditional education requirements as established by
rule.
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| 20 | | (Source: P.A. 98-1109, eff. 1-1-15.)
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| 21 | | (225 ILCS 458/5-22) |
| 22 | | (Section scheduled to be repealed on January 1, 2022) |
| 23 | | Sec. 5-22. Criminal history records check. |
| 24 | | (a) Each applicant for licensure by examination or |
| 25 | | restoration shall have his or her fingerprints submitted to the |
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| 1 | | Department of State Police in an electronic format that |
| 2 | | complies with the form and manner for requesting and furnishing |
| 3 | | criminal history record information as prescribed by the |
| 4 | | Department of State Police. These fingerprints shall be checked |
| 5 | | against the Department of State Police and Federal Bureau of |
| 6 | | Investigation criminal history record databases now and |
| 7 | | hereafter filed. The Department of State Police shall charge |
| 8 | | applicants a fee for conducting the criminal history records |
| 9 | | check, which shall be deposited into the State Police Services |
| 10 | | Fund and shall not exceed the actual cost of the records check. |
| 11 | | The Department of State Police shall
furnish, pursuant to |
| 12 | | positive identification, records of Illinois convictions to |
| 13 | | the Department. The Department may require applicants to pay a |
| 14 | | separate fingerprinting fee, either to the Department or to a |
| 15 | | vendor. The Department may adopt any rules necessary to |
| 16 | | implement this Section.
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| 17 | | (b) The Secretary may designate a multi-state licensing |
| 18 | | system to perform the functions described in subsection (a). |
| 19 | | The Department may require applicants to pay a separate |
| 20 | | fingerprinting fee, either to the Department or to the |
| 21 | | multi-state licensing system. The Department may adopt any |
| 22 | | rules necessary to implement this subsection. |
| 23 | | (Source: P.A. 98-1109, eff. 1-1-15.)
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| 24 | | (225 ILCS 458/5-25)
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| 25 | | (Section scheduled to be repealed on January 1, 2022)
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| 1 | | Sec. 5-25. Renewal of license.
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| 2 | | (a) The expiration date and renewal period
for a State |
| 3 | | certified general
real estate appraiser license
or a State |
| 4 | | certified residential
real estate appraiser license issued |
| 5 | | under
this Act shall be set by rule.
Except as otherwise |
| 6 | | provided in subsections (b) and (f) of this Section, the
holder |
| 7 | | of a license may renew
the license within 90 days preceding the |
| 8 | | expiration date by:
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| 9 | | (1) completing and submitting to the Department, or |
| 10 | | through a multi-state licensing system as designated by the |
| 11 | | Secretary,
a renewal application form as
provided by
the |
| 12 | | Department;
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| 13 | | (2) paying the required fees; and
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| 14 | | (3) providing evidence to the Department, or through a |
| 15 | | multi-state licensing system as designated by the |
| 16 | | Secretary, of successful completion of the continuing
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| 17 | | education requirements through courses approved by the |
| 18 | | Department
from
education providers licensed by the |
| 19 | | Department, as established by the AQB
and by rule.
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| 20 | | (b) A State certified general real estate appraiser
or |
| 21 | | State certified
residential real estate
appraiser whose |
| 22 | | license under this Act has expired may renew
the license for a |
| 23 | | period of
2 years following the expiration date by complying |
| 24 | | with the requirements of
paragraphs (1), (2),
and (3) of |
| 25 | | subsection (a)
of this Section and paying any late penalties |
| 26 | | established by rule.
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| 1 | | (c) (Blank).
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| 2 | | (d) The expiration date and renewal period for an associate |
| 3 | | real estate
trainee appraiser license issued under this
Act |
| 4 | | shall be set by rule. Except as otherwise provided in |
| 5 | | subsections (e) and
(f) of this Section, the holder
of an |
| 6 | | associate real estate appraiser license may renew the license |
| 7 | | within 90
days preceding the expiration date by:
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| 8 | | (1) completing and submitting to the Department, or |
| 9 | | through a multi-state licensing system as designated by the |
| 10 | | Secretary,
a renewal application form as
provided by the |
| 11 | | Department;
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| 12 | | (2) paying the required fees; and
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| 13 | | (3) providing evidence to the Department, or through a |
| 14 | | multi-state licensing system as designated by the |
| 15 | | Secretary, of successful completion of the continuing
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| 16 | | education requirements through
courses approved by the |
| 17 | | Department
from education providers approved
by the |
| 18 | | Department, as established by rule.
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| 19 | | (e) Any associate real estate appraiser trainee whose |
| 20 | | license under this Act has
expired may
renew the license for a |
| 21 | | period of 2 years following the expiration date
by complying |
| 22 | | with the requirements of paragraphs
(1), (2), and (3) of |
| 23 | | subsection (d) of this Section and paying any late
penalties
as |
| 24 | | established by rule. An associate real estate trainee appraiser |
| 25 | | license may not be renewed more than 2 times.
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| 26 | | (f) Notwithstanding subsections (c) and (e), an
appraiser |
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| 1 | | whose license
under this Act has expired may renew or convert |
| 2 | | the license without
paying any lapsed renewal
fees or late |
| 3 | | penalties if the license expired while the appraiser was:
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| 4 | | (1) on active duty with the United States Armed |
| 5 | | Services;
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| 6 | | (2) serving as the Coordinator
of Real Estate Appraisal |
| 7 | | or an employee of
the Department
who was required to |
| 8 | | surrender his or her license during the term of
employment.
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| 9 | | Application for renewal must be made within 2 years |
| 10 | | following
the termination of the military service or related |
| 11 | | education, training, or
employment. The
licensee shall furnish |
| 12 | | the Department
with an affidavit that he or she was so engaged.
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| 13 | | (g) The Department
shall provide reasonable care and due |
| 14 | | diligence to ensure that each
licensee under this Act
is |
| 15 | | provided with a renewal application at least 90 days prior to |
| 16 | | the expiration
date, but
each licensee is responsible to
timely |
| 17 | | renew or convert his or her license prior to its expiration |
| 18 | | date.
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| 19 | | (Source: P.A. 96-844, eff. 12-23-09.)
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| 20 | | (225 ILCS 458/5-55)
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| 21 | | (Section scheduled to be repealed on January 1, 2022)
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| 22 | | Sec. 5-55. Fees. |
| 23 | | (a) The Department
shall establish rules for fees to be |
| 24 | | paid by applicants and licensees to
cover the reasonable costs
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| 25 | | of the Department
in administering and enforcing the provisions |
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| 1 | | of this Act. The Department, with the advice of the Board,
may
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| 2 | | also establish rules for
general fees to cover the reasonable |
| 3 | | expenses of carrying out other functions
and responsibilities |
| 4 | | under
this Act.
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| 5 | | (b) The administration fee charged by the multi-state |
| 6 | | licensing system shall be paid directly to the multi-state |
| 7 | | licensing system. |
| 8 | | (Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
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| 9 | | (225 ILCS 458/20-5)
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| 10 | | (Section scheduled to be repealed on January 1, 2022)
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| 11 | | Sec. 20-5. Education providers.
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| 12 | | (a) Beginning July 1, 2002, only education providers |
| 13 | | licensed or otherwise approved by the Department
may
provide |
| 14 | | the qualifying and continuing education courses required for |
| 15 | | licensure
under this Act.
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| 16 | | (b) A person or entity seeking to be licensed as an |
| 17 | | education
provider under this Act
shall provide satisfactory |
| 18 | | evidence of the following:
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| 19 | | (1) a sound financial base for establishing, |
| 20 | | promoting, and delivering the
necessary
courses;
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| 21 | | (2) a sufficient number of qualified instructors;
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| 22 | | (3) adequate support personnel to assist with |
| 23 | | administrative matters and
technical
assistance;
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| 24 | | (4) a written policy dealing with procedures for |
| 25 | | management of grievances
and fee refunds;
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| 1 | | (5) a qualified administrator, who is responsible for |
| 2 | | the
administration of the
education provider, courses, and |
| 3 | | the actions of the instructors; and
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| 4 | | (6) any other requirements as provided by rule.
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| 5 | | (c) All applicants for an education provider's license |
| 6 | | shall make initial
application to the Department
on forms |
| 7 | | provided by the Department, or through a multi-state licensing |
| 8 | | system as designated by the Secretary,
and pay the appropriate |
| 9 | | fee as
provided by rule. The term, expiration date, and renewal |
| 10 | | of an education
provider's license shall be established by |
| 11 | | rule.
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| 12 | | (d) An education provider shall provide each successful |
| 13 | | course participant
with a certificate of
completion signed by |
| 14 | | the school administrator. The format and content of the
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| 15 | | certificate shall be specified by rule.
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| 16 | | (e) All education providers shall provide to the Department
|
| 17 | | a monthly roster of all
successful course
participants as |
| 18 | | provided by rule.
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| 19 | | (Source: P.A. 98-1109, eff. 1-1-15.)
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| 20 | | (225 ILCS 458/20-10)
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| 21 | | (Section scheduled to be repealed on January 1, 2022)
|
| 22 | | Sec. 20-10. Course approval.
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| 23 | | (a) Only courses offered by licensed education providers |
| 24 | | and approved
by the Department, courses approved by the AQB, or |
| 25 | | courses approved by jurisdictions regulated by the Appraisal |
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| 1 | | Subcommittee
shall be used to meet the requirements of this Act |
| 2 | | and rules.
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| 3 | | (b) An education provider licensed under this Act may |
| 4 | | submit courses to the Department, or through a multi-state |
| 5 | | licensing system as designated by the Secretary,
for approval.
|
| 6 | | The criteria, requirements, and fees for courses shall be |
| 7 | | established
by rule in accordance with
this Act and the |
| 8 | | criteria established by the AQB.
|
| 9 | | (c) For each course approved, the Department
shall issue a |
| 10 | | license to the education
provider. The term, expiration date, |
| 11 | | and renewal of a course approval shall
be
established by rule.
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| 12 | | (d) An education provider must use an instructor for each |
| 13 | | course approved by the Department who (i) holds a valid real |
| 14 | | estate appraisal license in good standing as a State certified |
| 15 | | general real estate appraiser or a State certified residential |
| 16 | | real estate appraiser in Illinois or any other jurisdiction |
| 17 | | monitored by the Appraisal Subcommittee, (ii) holds a valid |
| 18 | | teaching certificate issued by the State of Illinois, (iii) is |
| 19 | | a faculty member in good standing with an accredited college or |
| 20 | | university or community college, or (iv) is an approved |
| 21 | | appraisal instructor from an appraisal organization that is a |
| 22 | | member of the Appraisal Foundation. |
| 23 | | (Source: P.A. 98-1109, eff. 1-1-15.)
|
| 24 | | Section 10. The Appraisal Management Company Registration |
| 25 | | Act is amended by changing Sections 10, 35, 40, and 55 and by |
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| 1 | | adding Section 32 as follows:
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| 2 | | (225 ILCS 459/10)
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| 3 | | Sec. 10. Definitions. In this Act: |
| 4 | | "Address of record" means the designated address recorded |
| 5 | | by the Department in the applicant's or registrant's |
| 6 | | application file or registration file maintained by the |
| 7 | | Department's registration maintenance unit. It is the duty of |
| 8 | | the applicant or registrant to inform the Department of any |
| 9 | | change of address, and the changes must be made either through |
| 10 | | the Department's website or by contacting the Department's |
| 11 | | registration maintenance unit within a prescribed time period |
| 12 | | as defined by rule. |
| 13 | | "Applicant" means a person or entity who applies to the |
| 14 | | Department for a registration under this Act. |
| 15 | | "Appraisal" means (noun) the act or process of developing |
| 16 | | an opinion of value; an opinion of value (adjective) of or |
| 17 | | pertaining to appraising and related functions. |
| 18 | | "Appraisal firm" means an appraisal entity that is 100% |
| 19 | | owned and controlled by a person or persons licensed in |
| 20 | | Illinois as a certified general real estate appraiser or a |
| 21 | | certified residential real estate appraiser. An appraisal firm |
| 22 | | does not include an appraisal management company. |
| 23 | | "Appraisal management company" means any corporation, |
| 24 | | limited liability company, partnership, sole proprietorship, |
| 25 | | subsidiary, unit, or other business entity that directly or |
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| 1 | | indirectly performs the following appraisal management |
| 2 | | services: (1) administers networks of independent contractors |
| 3 | | or employee appraisers to perform real estate appraisal |
| 4 | | assignments for clients; (2) receives requests for real estate |
| 5 | | appraisal services from clients and, for a fee paid by the |
| 6 | | client, enters into an agreement with one or more independent |
| 7 | | appraisers to perform the real estate appraisal services |
| 8 | | contained in the request; or (3) otherwise serves as a |
| 9 | | third-party broker of appraisal management services between |
| 10 | | clients and appraisers. |
| 11 | | "Appraisal report" means a written appraisal by an |
| 12 | | appraiser to a client. |
| 13 | | "Appraisal practice service" means valuation services |
| 14 | | performed by an individual acting as an appraiser, including, |
| 15 | | but not limited to, appraisal, appraisal review, or appraisal |
| 16 | | consulting. |
| 17 | | "Appraiser" means a person who performs real estate or real |
| 18 | | property appraisals. |
| 19 | | "Assignment result" means an appraiser's opinions and |
| 20 | | conclusions developed specific to an assignment. |
| 21 | | "Board" means the Real Estate Appraisal Administration and |
| 22 | | Disciplinary Board. |
| 23 | | "Client" means the party or parties who engage an appraiser |
| 24 | | by employment or contract in a specific appraisal assignment. |
| 25 | | "Controlling Person" means: |
| 26 | | (1) an owner, officer, or director of an entity seeking |
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| 1 | | to offer appraisal management services; |
| 2 | | (2) an individual employed, appointed, or authorized |
| 3 | | by an appraisal management company who has the authority |
| 4 | | to: |
| 5 | | (A) enter into a contractual relationship with a |
| 6 | | client for the performance of an appraisal management |
| 7 | | service or appraisal practice service; and |
| 8 | | (B) enter into an agreement with an appraiser for |
| 9 | | the performance of a real estate appraisal activity; or |
| 10 | | (3) an individual who possesses, directly or |
| 11 | | indirectly, the power to direct or cause the
direction of |
| 12 | | the management or policies of an appraisal management |
| 13 | | company.
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| 14 | | "Coordinator" means the Coordinator of the Appraisal |
| 15 | | Management Company Registration Unit of the Department or his |
| 16 | | or her designee. |
| 17 | | "Department" means the Department of Financial and |
| 18 | | Professional Regulation. |
| 19 | | "Entity" means a corporation, a limited liability company, |
| 20 | | partnership, a sole proprietorship, or other entity providing |
| 21 | | services or holding itself out to provide services as an |
| 22 | | appraisal management company or an appraisal management |
| 23 | | service. |
| 24 | | "End-user client" means any person who utilizes or engages |
| 25 | | the services of an appraiser through an appraisal management |
| 26 | | company. |
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| 1 | | "Financial institution" means any bank, savings bank, |
| 2 | | savings and loan association, credit union, mortgage broker, |
| 3 | | mortgage banker, registrant under the Consumer Installment |
| 4 | | Loan Act or the Sales Finance Agency Act, or a corporate |
| 5 | | fiduciary, subsidiary, affiliate, parent company, or holding |
| 6 | | company of any registrant, or any institution involved in real |
| 7 | | estate financing that is regulated by State or federal law. |
| 8 | | "Multi-state licensing system" means a web-based platform |
| 9 | | that allows an applicant to submit his or her application for |
| 10 | | original registration or registration renewal application to |
| 11 | | the Department online. |
| 12 | | "Person" means individuals, entities, sole |
| 13 | | proprietorships, corporations, limited liability companies, |
| 14 | | and partnerships, foreign or domestic, except that when the |
| 15 | | context otherwise requires, the term may refer to a single |
| 16 | | individual or other described entity.
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| 17 | | "Quality control review" means a review of an appraisal |
| 18 | | report for compliance and completeness, including grammatical, |
| 19 | | typographical, or other similar errors, unrelated to |
| 20 | | developing an opinion of value. |
| 21 | | "Real estate" means an identified parcel or tract of land, |
| 22 | | including any improvements. |
| 23 | | "Real estate related financial transaction" means any |
| 24 | | transaction involving: |
| 25 | | (1) the sale, lease, purchase, investment in, or |
| 26 | | exchange of real property,
including interests in property |
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| 1 | | or the financing thereof; |
| 2 | | (2) the refinancing of real property or interests in |
| 3 | | real property; and |
| 4 | | (3) the use of real property or interest in property as |
| 5 | | security for a loan or
investment, including mortgage |
| 6 | | backed securities. |
| 7 | | "Real property" means the interests, benefits, and rights |
| 8 | | inherent in the ownership of real estate. |
| 9 | | "Secretary" means the Secretary of Financial and |
| 10 | | Professional Regulation. |
| 11 | | "USPAP" means the Uniform Standards of Professional |
| 12 | | Appraisal Practice as adopted by the Appraisal Standards Board |
| 13 | | under Title XI. |
| 14 | | "Valuation" means any estimate of the value of real |
| 15 | | property in connection with a creditor's decision to provide |
| 16 | | credit, including those values developed under a policy of a |
| 17 | | government sponsored enterprise or by an automated valuation |
| 18 | | model or other methodology or mechanism.
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| 19 | | (Source: P.A. 97-602, eff. 8-26-11.)
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| 20 | | (225 ILCS 459/32 new) |
| 21 | | Sec. 32. Multi-state licensing system. The Secretary may |
| 22 | | require participation in a third-party, multi-state licensing |
| 23 | | system for registration under this Act. The multi-state |
| 24 | | licensing system may share regulatory information and maintain |
| 25 | | records in compliance with the provisions of this Act. The |
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| 1 | | multi-state licensing system may charge the applicant an |
| 2 | | administration fee.
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| 3 | | (225 ILCS 459/35)
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| 4 | | Sec. 35. Application for original registration. |
| 5 | | Applications for original registration shall be made to the |
| 6 | | Department on forms prescribed by the Department, or through a |
| 7 | | multi-state licensing system as designated by the Secretary, |
| 8 | | and accompanied by the required fee. All applications shall |
| 9 | | contain the information that, in the judgment of the |
| 10 | | Department, will enable the Department to pass on the |
| 11 | | qualifications of the applicant to be registered to practice as |
| 12 | | set by rule.
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| 13 | | (Source: P.A. 97-602, eff. 8-26-11.)
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| 14 | | (225 ILCS 459/40)
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| 15 | | Sec. 40. Qualifications for registration. |
| 16 | | (a) The Department may issue a certification of |
| 17 | | registration to practice under this Act to any applicant who |
| 18 | | applies to the Department on forms provided by the Department, |
| 19 | | or through a multi-state licensing system as designated by the |
| 20 | | Secretary, pays the required non-refundable fee, and who |
| 21 | | provides the following: |
| 22 | | (1) the business name of the applicant seeking |
| 23 | | registration; |
| 24 | | (2) the business address or addresses and contact |
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| 1 | | information of the applicant seeking registration; |
| 2 | | (3) if the business applicant is not a corporation that |
| 3 | | is domiciled in this State, then the name and contact |
| 4 | | information for the company's agent for service of process |
| 5 | | in this State; |
| 6 | | (4) the name, address, and contact information for any |
| 7 | | individual or any corporation, partnership, limited |
| 8 | | liability company, association, or other business |
| 9 | | applicant that owns 10% or more of the appraisal management |
| 10 | | company; |
| 11 | | (5) the name, address, and contact information for a |
| 12 | | designated controlling person; |
| 13 | | (6) a certification that the applicant will utilize |
| 14 | | Illinois licensed appraisers to provide appraisal services |
| 15 | | within the State of Illinois; |
| 16 | | (7) a certification that the applicant has a system in |
| 17 | | place utilizing a licensed Illinois appraiser to review the |
| 18 | | work of all employed and independent appraisers that are |
| 19 | | performing real estate appraisal services in Illinois for |
| 20 | | the appraisal management company on a periodic basis, |
| 21 | | except for a quality control review, to verify that the |
| 22 | | real estate appraisal assignments are being conducted in |
| 23 | | accordance with USPAP; |
| 24 | | (8) a certification that the applicant maintains a |
| 25 | | detailed record of each service request that it receives |
| 26 | | and the independent appraiser that performs the real estate |
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| 1 | | appraisal services for the appraisal management company; |
| 2 | | (9) a certification that the employees of the appraisal |
| 3 | | management company working on behalf of the appraisal |
| 4 | | management company directly involved in providing |
| 5 | | appraisal management services, will be appropriately |
| 6 | | trained and familiar with the appraisal process to |
| 7 | | completely provide appraisal management services;
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| 8 | | (10) an irrevocable Uniform Consent to Service of |
| 9 | | Process, under rule; and |
| 10 | | (11) a certification that the applicant shall comply |
| 11 | | with all other requirements of this Act and rules |
| 12 | | established for the implementation of this Act. |
| 13 | | (b) Applicants have 3 years from the date of application to |
| 14 | | complete the application process. If the process has not been |
| 15 | | completed in 3 years, the application shall be denied, the fee |
| 16 | | shall be forfeited, and the applicant must reapply and meet the |
| 17 | | requirements in effect at the time of reapplication.
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| 18 | | (Source: P.A. 97-602, eff. 8-26-11.)
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| 19 | | (225 ILCS 459/55)
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| 20 | | Sec. 55. Fees. |
| 21 | | (a) The fees for the administration and enforcement of this |
| 22 | | Act, including, but not limited to, original registration, |
| 23 | | renewal, and restoration fees, shall be set by the Department |
| 24 | | by rule. The fees shall not be refundable. |
| 25 | | (b) All fees and other moneys collected under this Act |
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| 1 | | shall be deposited in the Appraisal Administration Fund, except |
| 2 | | as provided in subsection (c) of this Section.
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| 3 | | (c) The administration fee charged by a multi-state |
| 4 | | licensing system under Section 32 shall be paid directly to the |
| 5 | | multi-state licensing system. |
| 6 | | (Source: P.A. 97-602, eff. 8-26-11.)
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| 7 | | Section 99. Effective date. This Act takes effect upon |
| 8 | | becoming law.
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| | 1 | |
INDEX
| | 2 | |
Statutes amended in order of appearance
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