Public Act 102-0970

HB5167 Enrolled LRB102 25439 SPS 34725 b

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 5. The State Finance Act is amended by adding

Section 5.970 as follows:

(30 ILCS 105/5.970 new)

Sec. 5.970. The Division of Real Estate General Fund.

(30 ILCS 105/5.557 rep.)

(30 ILCS 105/5.558 rep.)

(30 ILCS 105/5.742 rep.)

Section 10. The State Finance Act is amended by repealing

Sections 5.557, 5.558, and 5.742.

Section 15. The Auction License Act is amended by changing

Sections 10-5, 10-30, 10-50, 20-15, 20-95, 30-13, and 30-30

and by adding Sections 20-11, 20-15.1, 20-16, and 20-105 as

follows:

(225 ILCS 407/10-5)

(Section scheduled to be repealed on January 1, 2030)

Sec. 10-5. Requirements for auctioneer license;

application.

(a) Every person who desires to obtain an auctioneer

license under this Act shall:

(1) apply to the Department on forms provided by the

Department accompanied by the required fee;

(2) be at least 18 years of age;

(3) have attained a high school diploma or

successfully completed an equivalent course of study

determined by an examination conducted by the Illinois

State Board of Education; and

(4) pass a written examination authorized by the

Department to prove competence, including but not limited

to general knowledge of Illinois and federal laws

pertaining to personal property contracts, auctions, real

property, ethics, and other topics relating to the auction

business.

(b) The Department shall not require applicants to report

the following information and shall not consider the following

criminal history records in connection with an application for

licensure or registration:

(1) juvenile adjudications of delinquent minors as

defined in Section 5-105 of the Juvenile Court Act of 1987

subject to the restrictions set forth in Section 5-130 of

that Act;

(2) law enforcement records, court records, and

conviction records of an individual who was 17 years old

at the time of the offense and before January 1, 2014,

unless the nature of the offense required the individual

to be tried as an adult;

(3) records of arrest not followed by a charge or

conviction;

(4) records of arrest where the charges were dismissed

unless related to the practice of the profession; however,

applicants shall not be asked to report any arrests, and

an arrest not followed by a conviction shall not be the

basis of denial and may be used only to assess an

applicant's rehabilitation;

(5) convictions overturned by a higher court; or

(6) convictions or arrests that have been sealed or

expunged.

(c) An applicant or licensee shall report to the

Department, in a manner prescribed by the Department, and

within 30 days after the occurrence if during the term of

licensure: (i) any conviction of, or plea of guilty, or nolo

contendere to forgery, embezzlement, obtaining money under

false pretenses, larceny, extortion, conspiracy to defraud, or

any similar offense or offenses or any conviction of a felony

involving moral turpitude; or (ii) the entry of an

administrative sanction by a government agency in this State

or any other jurisdiction that has as an essential element

dishonesty or fraud or involves larceny, embezzlement, or

obtaining money, property, or credit by false pretenses.

(Source: P.A. 101-345, eff. 8-9-19.)

(225 ILCS 407/10-30)

(Section scheduled to be repealed on January 1, 2030)

Sec. 10-30. Expiration, renewal, and continuing education.

(a) License expiration dates, renewal periods, renewal

fees, and procedures for renewal of licenses issued under this

Act shall be set by rule of the Department. An entity may renew

its license by paying the required fee and by meeting the

renewal requirements adopted by the Department under this

Section.

(b) All renewal applicants must provide proof as

determined by the Department of having met the continuing

education requirements by the deadline set forth by the

Department by rule. At a minimum, the rules shall require an

applicant for renewal licensure as an auctioneer to provide

proof of the completion of at least 12 hours of continuing

education during the pre-renewal period established by the

Department for completion of continuing education from schools

approved by the Department, as established by rule.

(c) The Department, in its discretion, may waive

enforcement of the continuing education requirements of this

Section and shall adopt rules defining the standards and

criteria for such waiver.

(d) (Blank).

(e) The Department shall not renew a license if the

licensee has an unpaid fine or fee from a disciplinary matter

or from a non-disciplinary action imposed by the Department

until the fine or fee is paid to the Department or the licensee

has entered into a payment plan and is current on the required

payments.

(f) The Department shall not issue a license if the

applicant has an unpaid fine imposed by the Department for

unlicensed practice until the fine is paid to the Department

or the applicant has entered into a payment plan and is current

on the required payments.

(Source: P.A. 100-831, eff. 1-1-19.)

(225 ILCS 407/10-50)

(Section scheduled to be repealed on January 1, 2030)

Sec. 10-50. Fees; disposition of funds.

(a) The Department shall establish by rule a schedule of

fees for the administration and maintenance of this Act. Such

fees shall be nonrefundable.

(b) Prior to July 1, 2023, all All fees collected under

this Act shall be deposited into the General Professions

Dedicated Fund and appropriated to the Department for the

ordinary and contingent expenses of the Department in the

administration of this Act. Beginning on July 1, 2023, all

fees, fines, penalties, or other monies received or collected

pursuant to this Act shall be deposited in the Division of Real

Estate General Fund.

(Source: P.A. 95-572, eff. 6-1-08; 96-730, eff. 8-25-09.)

(225 ILCS 407/20-11 new)

Sec. 20-11. Confidentiality. All information collected by

the Department in the course of an examination or

investigation of a licensee or applicant, including, but not

limited to, any complaint against a licensee filed with the

Department and information collected to investigate any such

complaint, shall be maintained for the confidential use of the

Department and shall not be disclosed. The Department may not

disclose the information to anyone other than law enforcement

officials, other regulatory agencies that have an appropriate

regulatory interest as determined by the Secretary, or to a

party presenting a lawful subpoena to the Department.

Information and documents disclosed to a federal, State,

county, or local law enforcement agency shall not be disclosed

by the agency for any purpose to any other agency or person. A

formal complaint filed against a licensee by the Department or

any order issued by the Department against a licensee or

applicant shall be a public record, except as otherwise

prohibited by law.

(225 ILCS 407/20-15)

(Section scheduled to be repealed on January 1, 2030)

Sec. 20-15. Disciplinary actions; grounds. The Department

may refuse to issue or renew a license, may place on probation

or administrative supervision, suspend, or revoke any license

or may reprimand or take other disciplinary or

non-disciplinary action as the Department may deem proper,

including the imposition of fines not to exceed $10,000 for

each violation upon anyone licensed under this Act for any of

the following reasons:

(1) False or fraudulent representation or material

misstatement in furnishing information to the Department

in obtaining or seeking to obtain a license.

(2) Violation of any provision of this Act or the

rules adopted under this Act.

(3) Conviction of or entry of a plea of guilty or nolo

contendere, as set forth in subsection (c) of Section

10-5, to any crime that is a felony or misdemeanor under

the laws of the United States or any state or territory

thereof, or entry of an administrative sanction by a

government agency in this State or any other jurisdiction

that is a misdemeanor, an essential element of which is

dishonesty, or any crime that is directly related to the

practice of the profession.

(3.5) Failing to notify the Department, of any

criminal conviction that occurs during the licensee's term

of licensure within 30 days after the occurrence, of the

information required in subsection (c) of Section 10-5

conviction.

(4) Being adjudged to be a person under legal

disability or subject to involuntary admission or to meet

the standard for judicial admission as provided in the

Mental Health and Developmental Disabilities Code.

(5) Discipline of a licensee by another state, the

District of Columbia, a territory of the United States, a

foreign nation, a governmental agency, or any other entity

authorized to impose discipline if at least one of the

grounds for that discipline is the same as or the

equivalent to one of the grounds for discipline set forth

in this Act or for failing to report to the Department,

within 30 days, any adverse final action taken against the

licensee by any other licensing jurisdiction, government

agency, law enforcement agency, or court, or liability for

conduct that would constitute grounds for action as set

forth in this Act.

(6) Engaging in the practice of auctioneering,

conducting an auction, or providing an auction service

without a license or after the license was expired,

revoked, suspended, or terminated or while the license was

inoperative.

(7) Attempting to subvert or cheat on the auctioneer

exam or any continuing education exam, or aiding or

abetting another to do the same.

(8) Directly or indirectly giving to or receiving from

a person, firm, corporation, partnership, or association a

fee, commission, rebate, or other form of compensation for

professional service not actually or personally rendered,

except that an auctioneer licensed under this Act may

receive a fee from another licensed auctioneer from this

State or jurisdiction for the referring of a client or

prospect for auction services to the licensed auctioneer.

(9) Making any substantial misrepresentation or

untruthful advertising.

(10) Making any false promises of a character likely

to influence, persuade, or induce.

(11) Pursuing a continued and flagrant course of

misrepresentation or the making of false promises through

a licensee, agent, employee, advertising, or otherwise.

(12) Any misleading or untruthful advertising, or

using any trade name or insignia of membership in any

auctioneer association or organization of which the

licensee is not a member.

(13) Commingling funds of others with the licensee's

his or her own funds or failing to keep the funds of others

in an escrow or trustee account.

(14) Failure to account for, remit, or return any

moneys, property, or documents coming into the licensee's

his or her possession that belong to others, acquired

through the practice of auctioneering, conducting an

auction, or providing an auction service within 30 days of

the written request from the owner of said moneys,

property, or documents.

(15) Failure to maintain and deposit into a special

account, separate and apart from any personal or other

business accounts, all moneys belonging to others

entrusted to a licensee while acting as an auctioneer,

auction firm, or as a temporary custodian of the funds of

others.

(16) Failure to make available to Department personnel

during normal business hours all escrow and trustee

records and related documents maintained in connection

with the practice of auctioneering, conducting an auction,

or providing an auction service within 24 hours after a

request from Department personnel.

(17) Making or filing false records or reports in the

licensee's his or her practice, including but not limited

to false records or reports filed with State agencies.

(18) Failing to voluntarily furnish copies of all

written instruments prepared by the auctioneer and signed

by all parties to all parties at the time of execution.

(19) Failing to provide information within 30 days in

response to a written request made by the Department.

(20) Engaging in any act that constitutes a violation

of Section 2-102, 3-103, or 3-105 of the Illinois Human

Rights Act.

(21) (Blank).

(22) Engaging in dishonorable, unethical, or

unprofessional conduct of a character likely to deceive,

defraud, or harm the public.

(23) Offering or advertising real estate for sale or

lease at auction without a valid broker or managing

broker's license under the Real Estate License Act of

1983, or any successor Act, unless exempt from licensure

under the terms of the Real Estate License Act of 2000, or

any successor Act, except as provided in Section 5-32 of

the Real Estate License Act of 2000.

(24) Inability to practice the profession with

reasonable judgment, skill, or safety as a result of a

physical illness, including, but not limited to,

deterioration through the aging process or loss of motor

skill, or a mental illness, or disability.

(25) A pattern of practice or other behavior that

demonstrates incapacity or incompetence to practice under

this Act.

(26) Being named as a perpetrator in an indicated

report by the Department of Children and Family Services

under the Abused and Neglected Child Reporting Act and

upon proof by clear and convincing evidence that the

licensee has caused a child to be an abused child or a

neglected child as defined in the Abused and Neglected

Child Reporting Act.

(27) Inability to practice with reasonable judgment,

skill, or safety as a result of habitual or excessive use

or addiction to alcohol, narcotics, stimulants, or any

other chemical agent or drug.

(28) Willfully failing to report an instance of

suspected child abuse or neglect as required by the Abused

and Neglected Child Reporting Act.

The entry of an order by a circuit court establishing that

any person holding a license under this Act is subject to

involuntary admission or judicial admission, as provided in

the Mental Health and Developmental Disabilities Code,

operates as an automatic suspension of that license. That

person may have his or her license restored only upon the

determination by a circuit court that the patient is no longer

subject to involuntary admission or judicial admission and the

issuance of an order so finding and discharging the patient

and upon the Board's recommendation to the Department that the

license be restored. Where circumstances so indicate, the

Board may recommend to the Department that it require an

examination prior to restoring a suspended license.

If the Department or Board finds an individual unable to

practice because of the reasons set forth in this Section, the

Department or Board may require that individual to submit to

care, counseling, or treatment by physicians approved or

designated by the Department or Board, as a condition, term,

or restriction for continued, reinstated, or renewed licensure

to practice; or, in lieu of care, counseling, or treatment,

the Department may file, or the Board may recommend to the

Department to file, a complaint to immediately suspend,

revoke, or otherwise discipline the license of the individual.

An individual whose license was granted, continued,

reinstated, renewed, disciplined or supervised subject to such

terms, conditions, or restrictions, and who fails to comply

with such terms, conditions, or restrictions, shall be

referred to the Secretary for a determination as to whether

the individual shall have his or her license suspended

immediately, pending a hearing by the Department. If the

Secretary immediately suspends a person's license under this

Section, a hearing on that person's license must be convened

by the Department within 21 days after the suspension and

completed without appreciable delay. The Department and Board

shall have the authority to review the subject individual's

record of treatment and counseling regarding the impairment to

the extent permitted by applicable federal statutes and

regulations safeguarding the confidentiality of medical

records.

An individual licensed under this Act and affected under

this Section shall be afforded an opportunity to demonstrate

to the Department or Board that he or she can resume practice

in compliance with acceptable and prevailing standards under

his or her license.

In enforcing this Section, the Department or Board, upon a

showing of a possible violation, may compel an individual

licensed to practice under this Act, or who has applied for

licensure under this Act, to submit to a mental or physical

examination, or both, as required by and at the expense of the

Department. The Department or Board may order the examining

physician to present testimony concerning the mental or

physical examination of the licensee or applicant. No

information shall be excluded by reason of any common law or

statutory privilege relating to communications between the

licensee or applicant and the examining physician. The

examining physicians shall be specifically designated by the

Board or Department. The individual to be examined may have,

at his or her own expense, another physician of his or her

choice present during all aspects of this examination. Failure

of an individual to submit to a mental or physical examination

when directed shall be grounds for suspension of his or her

license until the individual submits to the examination, if

the Department finds that, after notice and hearing, the

refusal to submit to the examination was without reasonable

cause.

(Source: P.A. 101-345, eff. 8-9-19.)

(225 ILCS 407/20-15.1 new)

Sec. 20-15.1. Citations.

(a) The Department may adopt rules to permit the issuance

of citations to any licensee for failure to comply with the

continuing education requirements set forth in this Act or as

established by rule. The citation shall be issued to the

licensee and shall contain the licensee's name and address,

the licensee's license number, the number of required hours of

continuing education that have not been successfully completed

by the licensee within the renewal period, and the penalty

imposed, which shall not exceed $2,000. The issuance of any

such citation shall not excuse the licensee from completing

all continuing education required for that renewal period.

(b) Service of a citation shall be made in person,

electronically, or by mail to the licensee at the licensee's

address of record or email address of record, and must clearly

state that if the cited licensee wishes to dispute the

citation, they may make a written request, within 30 days

after the citation is served, for a hearing before the

Department. If the cited licensee does not request a hearing

within 30 days after the citation is served, then the citation

shall become a final, non-disciplinary order, and any fine

imposed is due and payable within 60 days after that final

order. If the cited licensee requests a hearing within 30 days

after the citation is served, the Department shall afford the

cited licensee a hearing conducted in the same manner as a

hearing provided for in this Act for any violation of this Act

and shall determine whether the cited licensee committed the

violation as charged and whether the fine as levied is

warranted. If the violation is found, any fine shall

constitute non-public discipline and be due and payable within

30 days after the order of the Secretary, which shall

constitute a final order of the Department. No change in

license status may be made by the Department until a final

order of the Department has been issued.

(c) Payment of a fine that has been assessed pursuant to

this Section shall not constitute disciplinary action

reportable on the Department's website or elsewhere unless a

licensee has previously received 2 or more citations and been

assessed 2 or more fines.

(d) Nothing in this Section shall prohibit or limit the

Department from taking further action pursuant to this Act and

rules for additional, repeated, or continuing violations.

(225 ILCS 407/20-16 new)

Sec. 20-16. Illegal discrimination. When there has been an

adjudication in a civil or criminal proceeding that a licensee

has illegally discriminated while engaged in any activity for

which a license is required under this Act, the Department,

upon the recommendation of the Board as to the extent of the

suspension or revocation, shall suspend or revoke the license

of that licensee in a timely manner, unless the adjudication

is in the appeal process. When there has been an order in an

administrative proceeding finding that a licensee has

illegally discriminated while engaged in any activity for

which a license is required under this Act, the Department,

upon recommendation of the Board as to the nature and extent of

the discipline, shall take one or more of the disciplinary

actions provided for in Section 20-15 in a timely manner,

unless the administrative order is in the appeal process.

(225 ILCS 407/20-95)

(Section scheduled to be repealed on January 1, 2030)

Sec. 20-95. Returned checks and dishonored credit card

charges; fine. A person who: (i) delivers a check or other

payment to the Department that is returned to the Department

unpaid by the financial institution upon which it is drawn; or

(ii) presents a credit or debit card for payment that is

invalid or expired or against which charges by the Department

are declined or dishonored, shall pay to the Department, in

addition to the amount already owed to the Department, a fee of

$50. The Department shall notify the person that the his or her

check has been returned and that the person shall pay to the

Department by certified check or money order the amount of the

returned check plus the $50 fee within 30 calendar days after

the date of the notification. If, after the expiration of 30

calendar days of the notification, the person has failed to

submit the necessary remittance, the Department shall

automatically terminate the license or deny the application

without a hearing. If, after termination or denial, the person

seeks a license, the applicant or licensee he or she shall

petition the Department for restoration or issuance of the

license and he or she may be subject to additional discipline

or fines. The Secretary may waive the fines due under this

Section in individual cases where the Secretary finds that the

fines would be unreasonable or unnecessarily burdensome.

(Source: P.A. 95-572, eff. 6-1-08.)

(225 ILCS 407/20-105 new)

Sec. 20-105. No private right of action. Except as

otherwise expressly provided for in this Act, nothing in this

Act shall be construed to grant to any person a private right

of action to enforce the provisions of this Act or the rules

adopted under this Act.

(225 ILCS 407/30-13)

(Section scheduled to be repealed on January 1, 2030)

Sec. 30-13. The Division of Real Estate General

Professions Dedicated Fund. Prior to July 1, 2023, all All of

the fees, fines, and penalties collected under this Act shall

be deposited into the General Professions Dedicated Fund.

Prior to July 1, 2023, the The monies deposited into the

General Professions Dedicated Fund shall be used by the

Department, as appropriated, for the ordinary and contingent

expenses of the Department. Monies in the General Professions

Dedicated Fund may be invested and reinvested, with all

earnings received from investments to be deposited into that

Fund and used for the same purposes as fees deposited in that

Fund.

Beginning on July 1, 2023, all of the fees, fines, and

penalties collected under this Act shall be deposited into the

Division of Real Estate General Fund. The monies deposited

into the Division of Real Estate General Fund shall be used by

the Department, as appropriated, for the ordinary and

contingent expenses of the Department. Monies in the Division

of Real Estate General Fund may be invested and reinvested,

with all earnings received from investments to be deposited

into that Fund and used for the same purposes as fees deposited

in that Fund.

(Source: P.A. 96-730, eff. 8-25-09.)

(225 ILCS 407/30-30)

(Section scheduled to be repealed on January 1, 2030)

Sec. 30-30. Auction Advisory Board.

(a) There is hereby created the Auction Advisory Board.

The Advisory Board shall consist of 7 members and shall be

appointed by the Secretary. In making the appointments, the

Secretary shall give due consideration to the recommendations

by members and organizations of the industry, including but

not limited to the Illinois State Auctioneers Association.

Five members of the Advisory Board shall be licensed

auctioneers, except that for the initial appointments, these

members may be persons without a license, but who have been

auctioneers for at least 5 years preceding their appointment

to the Advisory Board. One member shall be a public member who

represents the interests of consumers and who is not licensed

under this Act or the spouse of a person licensed under this

Act or who has any responsibility for management or formation

of policy of or any financial interest in the auctioneering

profession or any other connection with the profession. One

member shall be actively engaged in the real estate industry

and licensed as a broker or managing broker salesperson. The

Advisory Board shall annually elect, at its first meeting of

the fiscal year, one of its members to serve as Chairperson.

(b) The members' terms shall be for 4 years and until a

successor is appointed expire upon completion of the term. No

member shall be reappointed to the Board for a term that would

cause the member's his or her cumulative service to the Board

to exceed 10 years. Appointments to fill vacancies shall be

made by the Secretary for the unexpired portion of the term. To

the extent practicable, the Secretary shall appoint members to

ensure that the various geographic regions of the State are

properly represented on the Advisory Board.

(c) Four Board members shall constitute a quorum. A quorum

is required for all Board decisions. A vacancy in the

membership of the Board shall not impair the right of a quorum

to exercise all of the rights and perform all of the duties of

the Board.

(d) Each member of the Advisory Board may shall receive a

per diem stipend in an amount to be determined by the

Secretary. While engaged in the performance of duties, each

Each member shall be reimbursed for paid his or her necessary

expenses while engaged in the performance of his or her

duties.

(e) Members of the Advisory Board shall be immune from

suit in an action based upon any disciplinary proceedings or

other acts performed in good faith as members of the Advisory

Board.

(f) The Advisory Board shall meet as convened by the

Department.

(g) The Advisory Board shall advise the Department on

matters of licensing and education and make recommendations to

the Department on those matters and shall hear and make

recommendations to the Secretary on disciplinary matters that

require a formal evidentiary hearing.

(h) The Secretary shall give due consideration to all

recommendations of the Advisory Board.

(Source: P.A. 100-886, eff. 8-14-18.)

Section 20. The Community Association Manager Licensing

and Disciplinary Act is amended by changing Sections 10, 25,

55, 60, and 65 as follows:

(225 ILCS 427/10)

(Section scheduled to be repealed on January 1, 2027)

Sec. 10. Definitions. As used in this Act:

"Address of record" means the designated street address,

which may not be a post office box, recorded by the Department

in the applicant's or licensee's application file or license

file maintained by the Department.

"Advertise" means, but is not limited to, issuing or

causing to be distributed any card, sign or device to any

person; or causing, permitting or allowing any sign or marking

on or in any building, structure, newspaper, magazine or

directory, or on radio or television; or advertising by any

other means designed to secure public attention, including,

but not limited to, print, electronic, social media, and

digital forums.

"Board" means the Community Association Manager Licensing

and Disciplinary Board.

"Community association" means an association in which

membership is a condition of ownership or shareholder interest

of a unit in a condominium, cooperative, townhouse, villa, or

other residential unit which is part of a residential

development plan and that is authorized to impose an

assessment, rents, or other costs that may become a lien on the

unit or lot.

"Community association funds" means any assessments, fees,

fines, or other funds collected by the community association

manager from the community association, or its members, other

than the compensation paid to the community association

manager for performance of community association management

services.

"Community association management firm" means a company,

corporation, limited liability company, partnership, or other

entity that engages in community association management

services.

"Community association management services" means those

services listed in the definition of community association

manager in this Section.

"Community association manager" means an individual who:

(1) has an ownership interest in or is employed by a

community association management firm, or is directly

employed by or provides services as an independent

contractor to a community association; and

(2) administers for remuneration the financial,

administrative, maintenance, or other duties for the

community association, including the following services:

(A) collecting, controlling or disbursing funds of

the community association or having the authority to

do so;

(B) preparing budgets or other financial documents

for the community association;

(C) assisting in the conduct of community

association meetings;

(D) maintaining association records;

(E) administering association contracts or

procuring goods and services in accordance with the

declaration, bylaws, proprietary lease, declaration of

covenants, or other governing document of the

community association or at the direction of the board

of managers; and

(F) coordinating financial, administrative,

maintenance, or other duties called for in the

management contract, including individuals who are

direct employees of the community association.

"Community association manager" does not mean support

staff, including, but not limited to bookkeepers,

administrative assistants, secretaries, property inspectors,

or customer service representatives.

"Department" means the Department of Financial and

Professional Regulation.

"Designated community association manager" means a

licensed community association manager who: (1) has an

ownership interest in or is employed by a community

association management firm to act as a controlling person;

and (2) is the authorized signatory or has delegated signing

authority for the firm on community association accounts; and

(3) supervises, manages, and is responsible for the firm's

community association manager activities pursuant to Section

50 of this Act.

"Email address of record" means the designated email

address recorded by the Department in the applicant's

application file or the licensee's license file, as maintained

by the Department.

"License" means the privilege conferred by the Department

to a person that has fulfilled all requirements prerequisite

to any type of licensure under this Act.

"Licensee" means any person licensed under this Act a

community association manager or a community association

management firm.

"Person" means any individual, corporation, partnership,

limited liability company, or other legal entity.

"Secretary" means the Secretary of Financial and

Professional Regulation or the Secretary's designee.

(Source: P.A. 102-20, eff. 1-1-22.)

(225 ILCS 427/25)

(Section scheduled to be repealed on January 1, 2027)

Sec. 25. Community Association Manager Licensing and

Disciplinary Board.

(a) There is hereby created the Community Association

Manager Licensing and Disciplinary Board, which shall consist

of 7 members appointed by the Secretary. All members must be

residents of the State and must have resided in the State for

at least 5 years immediately preceding the date of

appointment. Five members of the Board must be licensees under

this Act. Two members of the Board shall be owners of, or hold

a shareholder's interest in, a unit in a community association

at the time of appointment who are not licensees under this Act

and have no direct affiliation with the community

association's community association manager. This Board shall

act in an advisory capacity to the Department.

(b) The term of each member shall be for 4 years and or

until that member's successor is appointed. No member shall be

reappointed to the Board for a term that would cause the

member's cumulative service to the Board to exceed 10 years.

Appointments to fill vacancies shall be made by the Secretary

for the unexpired portion of the term. The Secretary shall

remove from the Board any member whose license has become void

or has been revoked or suspended and may remove any member of

the Board for neglect of duty, misconduct, or incompetence. A

member who is subject to formal disciplinary proceedings shall

be disqualified from all Board business until the charge is

resolved. A member also shall be disqualified from any matter

on which the member cannot act objectively.

(c) Four Board members shall constitute a quorum. A quorum

is required for all Board decisions. A vacancy in the

membership of the Board shall not impair the right of a quorum

to exercise all of the rights and perform all of the duties of

the Board.

(d) The Board shall elect annually, at its first meeting

of the fiscal year, a chairperson and vice chairperson.

(e) Each member shall be reimbursed receive reimbursement

as set by the Governor's Travel Control Board for necessary

expenses incurred in carrying out the duties as a Board

member. The Board may receive a per diem stipend in an amount

to shall be compensated as determined by the Secretary.

(f) The Board may recommend policies, procedures, and

rules relevant to the administration and enforcement of this

Act.

(g) Members of the Board shall be immune from suit in an

action based upon any disciplinary proceedings or other acts

performed in good faith as members of the Board.

(Source: P.A. 102-20, eff. 1-1-22.)

(225 ILCS 427/55)

(Section scheduled to be repealed on January 1, 2027)

Sec. 55. Fidelity insurance; segregation of accounts.

(a) The designated community association manager or the

community association management firm that employs the

designated community association manager shall not have access

to and disburse community association funds unless each of the

following conditions occur:

(1) There is fidelity insurance in place to insure

against loss or theft of community association funds.

(2) The fidelity insurance is in the maximum amount of

coverage available to protect funds in the custody or

control of the designated community association manager or

community association management firm providing service to

the association.

(3) During the term and coverage period of the

insurance, the fidelity insurance shall cover:

(A) the designated community association manager;

(B) the community association management firm;

(C) all community association managers;

(D) all partners, officers, and employees of the

community association management firm; and

(E) the community association officers, directors,

and employees.

(4) The insurance company issuing the fidelity

insurance may not cancel or refuse to renew the bond

without giving at least 10 days' prior written notice.

(5) Unless an agreement between the community

association and the designated community association

manager or the community association management firm

provides to the contrary, a community association may

secure and pay for the fidelity insurance required by this

Section. The designated community association manager, all

other licensees, and the community association management

firm must be named as additional insured parties on the

community association policy. If the fidelity insurance is

not secured and paid for by the association, the community

association manager or the community association

management firm that secures and pays for the insurance

shall provide a current certificate of fidelity insurance

to the community association for which it provides

community association management services within 10 days

of a request for such certificate by the community

association for its records.

(b) A community association management firm that provides

community association management services for more than one

community association shall maintain separate, segregated

accounts for each community association. The funds shall not,

in any event, be commingled with the supervising community

association manager's or community association management

firm's funds. The funds shall not, in any event, be commingled

with the funds of the community association manager, the

community association management firm, or any other community

association. The maintenance of such accounts shall be

custodial, and such accounts shall be in the name of the

respective community association.

(c) The designated community association manager or

community association management firm shall obtain the

appropriate general liability and errors and omissions

insurance, as determined by the Department, to cover any

losses or claims against a community association manager, the

designated community association manager, or the community

association management firm. The community association manager

or the community association management firm shall provide a

current certificate of general liability and errors and

omissions insurance to the community association for which it

provides community association management services within 10

days of a request for such certificate by the community

association for its records.

(d) The Department shall have authority to promulgate

additional rules regarding insurance, fidelity insurance and

all accounts maintained and to be maintained by a community

association manager, designated community association manager,

or community association management firm.

(Source: P.A. 102-20, eff. 1-1-22.)

(225 ILCS 427/60)

(Section scheduled to be repealed on January 1, 2027)

Sec. 60. Licenses; renewals; restoration; person in

military service.

(a) The expiration date, fees, and renewal period for each

license issued under this Act shall be set by rule. The

Department may promulgate rules requiring continuing education

and set all necessary requirements for such, including but not

limited to fees, approved coursework, number of hours, and

waivers of continuing education.

(b) Any licensee who has an expired license may have the

license restored by applying to the Department and filing

proof acceptable to the Department of fitness to have the

expired license restored, by which may include sworn evidence

certifying to active practice in another jurisdiction

satisfactory to the Department, complying with any continuing

education requirements, and paying the required restoration

fee.

(c) Any person whose license expired while (i) in federal

service on active duty with the Armed Forces of the United

States or called into service or training with the State

Militia or (ii) in training or education under the supervision

of the United States preliminary to induction into the

military service may have the license renewed or restored

without paying any lapsed renewal fees if, within 2 years

after honorable termination of the service, training or

education, except under condition other than honorable, the

licensee furnishes the Department with satisfactory evidence

of engagement and that the service, training, or education has

been so honorably terminated.

(d) A community association manager or community

association management firm that notifies the Department, in a

manner prescribed by the Department, may place the license on

inactive status for a period not to exceed 2 years and shall be

excused from the payment of renewal fees until the person

notifies the Department in writing of the intention to resume

active practice.

(e) A community association manager or , community

association management firm requesting that the license be

changed from inactive to active status shall be required to

pay the current renewal fee and shall also demonstrate

compliance with the continuing education requirements.

(f) No licensee with a nonrenewed or inactive license

status or community association management firm operating

operation without a designated community association manager

shall provide community association management services as set

forth in this Act.

(g) Any person violating subsection (f) of this Section

shall be considered to be practicing without a license and

will be subject to the disciplinary provisions of this Act.

(h) The Department shall not renew a license if the

licensee has an unpaid fine or fee from a disciplinary matter

or an unpaid fee from a non-disciplinary action imposed by the

Department until the fine or fee is paid to the Department or

the licensee has entered into a payment plan and is current on

the required payments.

(i) The Department shall not issue a license if the

applicant has an unpaid fine imposed by the Department for

unlicensed practice until the fine is paid to the Department

or the applicant has entered into a payment plan and is current

on the required payments.

(Source: P.A. 102-20, eff. 1-1-22.)

(225 ILCS 427/65)

(Section scheduled to be repealed on January 1, 2027)

Sec. 65. Fees; Division of Real Estate General Community

Association Manager Licensing and Disciplinary Fund.

(a) The fees for the administration and enforcement of

this Act, including, but not limited to, initial licensure,

renewal, and restoration, shall be set by rule of the

Department. The fees shall be nonrefundable.

(b) In addition to the application fee, applicants for the

examination are required to pay, either to the Department or

the designated testing service, a fee covering the cost of

determining an applicant's eligibility and providing the

examination. Failure to appear for the examination on the

scheduled date, at the time and place specified, after the

applicant's application and fee for examination have been

received and acknowledged by the Department or the designated

testing service, shall result in the forfeiture of the fee.

(c) Prior to July 1, 2023, all All fees, fines, penalties,

or other monies received or collected pursuant to this Act

shall be deposited in the Community Association Manager

Licensing and Disciplinary Fund. Beginning on July 1, 2023,

all fees, fines, penalties, or other monies received or

collected pursuant to this Act shall be deposited in the

Division of Real Estate General Fund.

(d) Moneys in the Community Association Manager Licensing

and Disciplinary Fund and the Division of Real Estate General

Fund may be transferred to the Professions Indirect Cost Fund,

as authorized under Section 2105-300 of the Department of

Professional Regulation Law of the Civil Administrative Code

of Illinois.

(e) Notwithstanding any other provision of law, in

addition to any other transfers that may be provided by law, on

July 1, 2023, or as soon thereafter as practical, the State

Comptroller shall direct and the State Treasurer shall

transfer the remaining balance from the Community Association

Manager Licensing and Disciplinary Fund into the Division of

Real Estate General Fund. Upon completion of the transfer, the

Community Association Manager Licensing and Disciplinary Fund

is dissolved, and any future deposits due to that Fund and any

outstanding obligations or liabilities of that Fund pass to

the Division of Real Estate General Fund.

(Source: P.A. 102-20, eff. 1-1-22.)

Section 25. The Home Inspector License Act is amended by

changing Sections 1-10, 5-16, 5-17, 15-5, and 25-5 and by

adding Section 15-11 as follows:

(225 ILCS 441/1-10)

(Section scheduled to be repealed on January 1, 2027)

Sec. 1-10. Definitions. As used in this Act, unless the

context otherwise requires:

"Address of record" means the designated street address,

which may not be a post office box, recorded by the Department

in the applicant's or licensee's application file or license

file as maintained by the Department.

"Applicant" means a person who applies to the Department

for a license under this Act.

"Client" means a person who engages or seeks to engage the

services of a home inspector for an inspection assignment.

"Department" means the Department of Financial and

Professional Regulation.

"Email address of record" means the designated email

address recorded by the Department in the applicant's

application file or the licensee's license file, as maintained

by the Department.

"Home inspection" means the examination and evaluation of

the exterior and interior components of residential real

property, which includes the inspection of any 2 or more of the

following components of residential real property in

connection with or to facilitate the sale, lease, or other

conveyance of, or the proposed sale, lease or other conveyance

of, residential real property:

(1) heating, ventilation, and air conditioning system;

(2) plumbing system;

(3) electrical system;

(4) structural composition;

(5) foundation;

(6) roof;

(7) masonry structure; or

(8) any other residential real property component as

established by rule.

"Home inspector" means a person or entity who, for another

and for compensation either direct or indirect, performs home

inspections.

"Home inspection report" or "inspection report" means a

written evaluation prepared and issued by a home inspector

upon completion of a home inspection, which meets the

standards of practice as established by the Department.

"Inspection assignment" means an engagement for which a

home inspector is employed or retained to conduct a home

inspection and prepare a home inspection report.

"License" means the privilege conferred by the Department

to a person who has fulfilled all requirements prerequisite to

any type of licensure under this Act.

"Licensee" means any person licensed under this Act a home

inspector, home inspector entity, or home inspector education

provider.

"Person" means individuals, entities, corporations,

limited liability companies, registered limited liability

partnerships, and partnerships, foreign or domestic, except

that when the context otherwise requires, the term may refer

to a single individual or other described entity.

"Residential real property" means real property that is

used or intended to be used as a residence by one or more

individuals.

"Secretary" means the Secretary of Financial and

Professional Regulation or the Secretary's designee.

"Standards of practice" means recognized standards to be

used in a home inspection, as determined by the Department and

established by rule.

(Source: P.A. 102-20, eff. 1-1-22.)

(225 ILCS 441/5-16)

(Section scheduled to be repealed on January 1, 2027)

Sec. 5-16. Renewal of license.

(a) The expiration date and renewal period for a home

inspector license issued under this Act shall be set by rule.

Except as otherwise provided in subsections (b) and (c) of

this Section, the holder of a license may renew the license

within 90 days preceding the expiration date by:

(1) completing and submitting to the Department a

renewal application in a manner prescribed by the

Department;

(2) paying the required fees; and

(3) providing evidence of successful completion of the

continuing education requirements through courses approved

by the Department given by education providers licensed by

the Department, as established by rule.

(b) A home inspector whose license under this Act has

expired may renew the license for a period of 2 years following

the expiration date by complying with the requirements of

subparagraphs (1), (2), and (3) of subsection (a) of this

Section and paying any late penalties established by rule.

(c) Notwithstanding subsection (b), a home inspector whose

license under this Act has expired may renew the license

without paying any lapsed renewal fees or late penalties if

(i) the license expired while the home inspector was on active

duty with the United States Armed Services, (ii) application

for renewal is made within 2 years following the termination

of the military service or related education, training, or

employment, and (iii) the applicant furnishes to the

Department an affidavit that the applicant was so engaged.

(d) The Department shall provide reasonable care and due

diligence to ensure that each licensee under this Act is

provided a renewal application at least 90 days prior to the

expiration date, but it is the responsibility of each licensee

to renew the license prior to its expiration date.

(e) The Department shall not renew a license if the

licensee has an unpaid fine or fee from a disciplinary matter

or from a non-disciplinary action imposed by the Department

until the fine or fee is paid to the Department or the licensee

has entered into a payment plan and is current on the required

payments.

(f) The Department shall not issue a license if the

applicant has an unpaid fine imposed by the Department for

unlicensed practice until the fine is paid to the Department

or the applicant has entered into a payment plan and is current

on the required payments.

(Source: P.A. 102-20, eff. 1-1-22.)

(225 ILCS 441/5-17)

(Section scheduled to be repealed on January 1, 2027)

Sec. 5-17. Renewal of home inspector license; entity.

(a) The expiration date and renewal period for a home

inspector license for an entity that is not a natural person

shall be set by rule. The holder of a license may renew the

license within 90 days preceding the expiration date by

completing and submitting to the Department a renewal

application in a manner prescribed by the Department and

paying the required fees.

(b) An entity that is not a natural person whose license

under this Act has expired may renew the license for a period

of 2 years following the expiration date by complying with the

requirements of subsection (a) of this Section and paying any

late penalties established by rule.

(c) The Department shall not renew a license if the

licensee has an unpaid fine or fee from a disciplinary matter

or from a non-disciplinary action imposed by the Department

until the fine or fee is paid to the Department or the licensee

has entered into a payment plan and is current on the required

payments.

(d) The Department shall not issue a license if the

applicant has an unpaid fine imposed by the Department for

unlicensed practice until the fine is paid to the Department

or the applicant has entered into a payment plan and is current

on the required payments.

(Source: P.A. 102-20, eff. 1-1-22.)

(225 ILCS 441/15-5)

(Section scheduled to be repealed on January 1, 2027)

Sec. 15-5. Unlicensed practice; civil penalty.

(a) Any person who practices, offers to practice, attempts

to practice, or holds oneself himself or herself out to

practice home inspection or as a home inspector without being

licensed under this Act shall, in addition to any other

penalty provided by law, pay a civil penalty to the Department

in an amount not to exceed $25,000 for each violation of this

Act as determined by the Department. The civil penalty shall

be assessed by the Department after a hearing is held in

accordance with the provisions of this Act.

(b) The Department has the authority and power to

investigate any unlicensed activity.

(c) A civil penalty shall be paid within 60 days after the

effective date of the order imposing the civil penalty. The

Department may petition the circuit court for a judgment to

enforce the collection of the penalty. Prior to July 1, 2023,

any Any civil penalties collected under this Act shall be made

payable to the Department and deposited into the Home

Inspector Administration Fund. Beginning on July 1, 2023, any

civil penalties collected under this Act shall be made payable

to the Department and deposited into the Division of Real

Estate General Fund.

(Source: P.A. 97-226, eff. 7-28-11.)

(225 ILCS 441/15-11 new)

Sec. 15-11. Illegal discrimination. When there has been an

adjudication in a civil or criminal proceeding that a licensee

has illegally discriminated while engaged in any activity for

which a license is required under this Act, the Department,

upon the recommendation of the Board as to the extent of the

suspension or revocation, shall suspend or revoke the license

of that licensee in a timely manner, unless the adjudication

is in the appeal process. When there has been an order in an

administrative proceeding finding that a licensee has

illegally discriminated while engaged in any activity for

which a license is required under this Act, the Department,

upon recommendation of the Board as to the nature and extent of

the discipline, shall take one or more of the disciplinary

actions provided for in Section 15-10 of this Act in a timely

manner, unless the administrative order is in the appeal

process.

(225 ILCS 441/25-5)

(Section scheduled to be repealed on January 1, 2027)

Sec. 25-5. Division of Real Estate General Home Inspector

Administration Fund; surcharge.

(a) The Home Inspector Administration Fund is created as a

special fund in the State Treasury. Prior to July 1, 2023, all

All fees, fines, and penalties received by the Department

under this Act shall be deposited into the Home Inspector

Administration Fund. All earnings attributable to investment

of funds in the Home Inspector Administration Fund shall be

credited to the Home Inspector Administration Fund. Subject to

appropriation, the moneys in the Home Inspector Administration

Fund shall be appropriated to the Department for the expenses

incurred by the Department in the administration of this Act.

(a-5) The Division of Real Estate General Fund is created

as a special fund in the State Treasury. Beginning on July 1,

2023, all fees, fines, and penalties received by the

Department under this Act shall be deposited into the Division

of Real Estate General Fund. All earnings attributable to

investment of funds in the Division of Real Estate General

Fund shall be credited to the Division of Real Estate General

Fund. Subject to appropriation, the moneys in the Division of

Real Estate General Fund shall be appropriated to the

Department for the expenses incurred by the Department in the

administration of this Act.

(b) (Blank).

(c) (Blank).

(c-5) Moneys in the Home Inspection Administration Fund

and the Division of Real Estate General Fund may be

transferred to the Professions Indirect Cost Fund, as

authorized under Section 2105-300 of the Department of

Professional Regulation Law of the Civil Administrative Code

of Illinois.

(d) Upon the completion of any audit of the Department, as

prescribed by the Illinois State Auditing Act, that includes

an audit of the Home Inspector Administration Fund or the

Division of Real Estate General Fund, the Department shall

make the audit report open to inspection by any interested

person.

(e) Notwithstanding any other provision of law, in

addition to any other transfers that may be provided by law, on

July 1, 2023, or as soon thereafter as practical, the State

Comptroller shall direct and the State Treasurer shall

transfer the remaining balance from the Home Inspector

Administration Fund into the Division of Real Estate General

Fund. Upon completion of the transfer, the Home Inspector

Administration Fund is dissolved, and any future deposits due

to that Fund and any outstanding obligations or liabilities of

that Fund pass to the Division of Real Estate General Fund.

(Source: P.A. 97-226, eff. 7-28-11.)

Section 30. The Real Estate License Act of 2000 is amended

by changing Sections 1-10, 5-10, 5-25, 5-45, 5-50, 5-70,

15-35, 15-45, 20-20, 20-20.1, 20-69, 20-75, 20-110, 25-10,

30-15, and 30-25 and by adding Section 25-38 as follows:

(225 ILCS 454/1-10)

(Section scheduled to be repealed on January 1, 2030)

Sec. 1-10. Definitions. In this Act, unless the context

otherwise requires:

"Act" means the Real Estate License Act of 2000.

"Address of record" means the designated address recorded

by the Department in the applicant's or licensee's application

file or license file as maintained by the Department.

"Agency" means a relationship in which a broker or

licensee, whether directly or through an affiliated licensee,

represents a consumer by the consumer's consent, whether

express or implied, in a real property transaction.

"Applicant" means any person, as defined in this Section,

who applies to the Department for a valid license as a managing

broker, broker, or residential leasing agent.

"Blind advertisement" means any real estate advertisement

that is used by a licensee regarding the sale or lease of real

estate, licensed activities, or the hiring of any licensee

under this Act that does not include the sponsoring broker's

complete business name or, in the case of electronic

advertisements, does not provide a direct link to a display

with all the required disclosures. The broker's business name

in the case of a franchise shall include the franchise

affiliation as well as the name of the individual firm.

"Board" means the Real Estate Administration and

Disciplinary Board of the Department as created by Section

25-10 of this Act.

"Broker" means an individual, entity, corporation, foreign

or domestic partnership, limited liability company, registered

limited liability partnership, or other business entity other

than a residential leasing agent who, whether in person or

through any media or technology, for another and for

compensation, or with the intention or expectation of

receiving compensation, either directly or indirectly:

(1) Sells, exchanges, purchases, rents, or leases real

estate.

(2) Offers to sell, exchange, purchase, rent, or lease

real estate.

(3) Negotiates, offers, attempts, or agrees to

negotiate the sale, exchange, purchase, rental, or leasing

of real estate.

(4) Lists, offers, attempts, or agrees to list real

estate for sale, rent, lease, or exchange.

(5) Whether for another or themselves, engages in a

pattern of business of buying, selling, offering to buy or

sell, marketing for sale, exchanging, or otherwise dealing

in contracts, including assignable contracts for the

purchase or sale of, or options on real estate or

improvements thereon. For purposes of this definition, an

individual or entity will be found to have engaged in a

pattern of business if the individual or entity by itself

or with any combination of other individuals or entities,

whether as partners or common owners in another entity,

has engaged in one or more of these practices on 2 or more

occasions in any 12-month period.

(6) Supervises the collection, offer, attempt, or

agreement to collect rent for the use of real estate.

(7) Advertises or represents oneself himself or

herself as being engaged in the business of buying,

selling, exchanging, renting, or leasing real estate.

(8) Assists or directs in procuring or referring of

leads or prospects, intended to result in the sale,

exchange, lease, or rental of real estate.

(9) Assists or directs in the negotiation of any

transaction intended to result in the sale, exchange,

lease, or rental of real estate.

(10) Opens real estate to the public for marketing

purposes.

(11) Sells, rents, leases, or offers for sale or lease

real estate at auction.

(12) Prepares or provides a broker price opinion or

comparative market analysis as those terms are defined in

this Act, pursuant to the provisions of Section 10-45 of

this Act.

"Brokerage agreement" means a written or oral agreement

between a sponsoring broker and a consumer for licensed

activities to be provided to a consumer in return for

compensation or the right to receive compensation from

another. Brokerage agreements may constitute either a

bilateral or a unilateral agreement between the broker and the

broker's client depending upon the content of the brokerage

agreement. All exclusive brokerage agreements shall be in

writing.

"Broker price opinion" means an estimate or analysis of

the probable selling price of a particular interest in real

estate, which may provide a varying level of detail about the

property's condition, market, and neighborhood and information

on comparable sales. The activities of a real estate broker or

managing broker engaging in the ordinary course of business as

a broker, as defined in this Section, shall not be considered a

broker price opinion if no compensation is paid to the broker

or managing broker, other than compensation based upon the

sale or rental of real estate. A broker price opinion shall not

be considered an appraisal within the meaning of the Real

Estate Appraiser Licensing Act of 2002, any amendment to that

Act, or any successor Act.

"Client" means a person who is being represented by a

licensee.

"Comparative market analysis" means an analysis or opinion

regarding pricing, marketing, or financial aspects relating to

a specified interest or interests in real estate that may be

based upon an analysis of comparative market data, the

expertise of the real estate broker or managing broker, and

such other factors as the broker or managing broker may deem

appropriate in developing or preparing such analysis or

opinion. The activities of a real estate broker or managing

broker engaging in the ordinary course of business as a

broker, as defined in this Section, shall not be considered a

comparative market analysis if no compensation is paid to the

broker or managing broker, other than compensation based upon

the sale or rental of real estate. A comparative market

analysis shall not be considered an appraisal within the

meaning of the Real Estate Appraiser Licensing Act of 2002,

any amendment to that Act, or any successor Act.

"Compensation" means the valuable consideration given by

one person or entity to another person or entity in exchange

for the performance of some activity or service. Compensation

shall include the transfer of valuable consideration,

including without limitation the following:

(1) commissions;

(2) referral fees;

(3) bonuses;

(4) prizes;

(5) merchandise;

(6) finder fees;

(7) performance of services;

(8) coupons or gift certificates;

(9) discounts;

(10) rebates;

(11) a chance to win a raffle, drawing, lottery, or

similar game of chance not prohibited by any other law or

statute;

(12) retainer fee; or

(13) salary.

"Confidential information" means information obtained by a

licensee from a client during the term of a brokerage

agreement that (i) was made confidential by the written

request or written instruction of the client, (ii) deals with

the negotiating position of the client, or (iii) is

information the disclosure of which could materially harm the

negotiating position of the client, unless at any time:

(1) the client permits the disclosure of information

given by that client by word or conduct;

(2) the disclosure is required by law; or

(3) the information becomes public from a source other

than the licensee.

"Confidential information" shall not be considered to

include material information about the physical condition of

the property.

"Consumer" means a person or entity seeking or receiving

licensed activities.

"Coordinator" means the Coordinator of Real Estate created

in Section 25-15 of this Act.

"Credit hour" means 50 minutes of instruction in course

work that meets the requirements set forth in rules adopted by

the Department.

"Customer" means a consumer who is not being represented

by the licensee.

"Department" means the Department of Financial and

Professional Regulation.

"Designated agency" means a contractual relationship

between a sponsoring broker and a client under Section 15-50

of this Act in which one or more licensees associated with or

employed by the broker are designated as agent of the client.

"Designated agent" means a sponsored licensee named by a

sponsoring broker as the legal agent of a client, as provided

for in Section 15-50 of this Act.

"Designated managing broker" means a managing broker who

has supervisory responsibilities for licensees in one or, in

the case of a multi-office company, more than one office and

who has been appointed as such by the sponsoring broker

registered with the Department.

"Director" means the Director of Real Estate within the

Department of Financial and Professional Regulation.

"Dual agency" means an agency relationship in which a

licensee is representing both buyer and seller or both

landlord and tenant in the same transaction. When the agency

relationship is a designated agency, the question of whether

there is a dual agency shall be determined by the agency

relationships of the designated agent of the parties and not

of the sponsoring broker.

"Education provider" means a school licensed by the

Department offering courses in pre-license, post-license, or

continuing education required by this Act.

"Employee" or other derivative of the word "employee",

when used to refer to, describe, or delineate the relationship

between a sponsoring broker and a managing broker, broker, or

a residential leasing agent, shall be construed to include an

independent contractor relationship, provided that a written

agreement exists that clearly establishes and states the

relationship.

"Escrow moneys" means all moneys, promissory notes or any

other type or manner of legal tender or financial

consideration deposited with any person for the benefit of the

parties to the transaction. A transaction exists once an

agreement has been reached and an accepted real estate

contract signed or lease agreed to by the parties. Escrow

moneys includes without limitation earnest moneys and security

deposits, except those security deposits in which the person

holding the security deposit is also the sole owner of the

property being leased and for which the security deposit is

being held.

"Electronic means of proctoring" means a methodology

providing assurance that the person taking a test and

completing the answers to questions is the person seeking

licensure or credit for continuing education and is doing so

without the aid of a third party or other device.

"Exclusive brokerage agreement" means a written brokerage

agreement that provides that the sponsoring broker has the

sole right, through one or more sponsored licensees, to act as

the exclusive agent or representative of the client and that

meets the requirements of Section 15-75 of this Act.

"Inactive" means a status of licensure where the licensee

holds a current license under this Act, but the licensee is

prohibited from engaging in licensed activities because the

licensee is unsponsored or the license of the sponsoring

broker with whom the licensee is associated or by whom the

licensee he or she is employed is currently expired, revoked,

suspended, or otherwise rendered invalid under this Act. The

license of any business entity that is not in good standing

with the Illinois Secretary of State, or is not authorized to

conduct business in Illinois, shall immediately become

inactive and that entity shall be prohibited from engaging in

any licensed activities.

"Leads" means the name or names of a potential buyer,

seller, lessor, lessee, or client of a licensee.

"License" means the privilege conferred by the Department

to a person that has fulfilled all requirements prerequisite

to any type of licensure under this Act.

"Licensed activities" means those activities listed in the

definition of "broker" under this Section.

"Licensee" means any person licensed under this Act , as

defined in this Section, who holds a valid unexpired license

as a managing broker, broker, or residential leasing agent.

"Listing presentation" means any communication, written or

oral and by any means or media, between a managing broker or

broker and a consumer in which the licensee is attempting to

secure a brokerage agreement with the consumer to market the

consumer's real estate for sale or lease.

"Managing broker" means a licensee who may be authorized

to assume responsibilities as a designated managing broker for

licensees in one or, in the case of a multi-office company,

more than one office, upon appointment by the sponsoring

broker and registration with the Department. A managing broker

may act as one's his or her own sponsor.

"Medium of advertising" means any method of communication

intended to influence the general public to use or purchase a

particular good or service or real estate, including, but not

limited to, print, electronic, social media, and digital

forums.

"Office" means a broker's place of business where the

general public is invited to transact business and where

records may be maintained and licenses readily available

displayed, whether or not it is the broker's principal place

of business.

"Person" means and includes individuals, entities,

corporations, limited liability companies, registered limited

liability partnerships, foreign and domestic partnerships, and

other business entities, except that when the context

otherwise requires, the term may refer to a single individual

or other described entity.

"Proctor" means any person, including, but not limited to,

an instructor, who has a written agreement to administer

examinations fairly and impartially with a licensed education

provider.

"Real estate" means and includes leaseholds as well as any

other interest or estate in land, whether corporeal,

incorporeal, freehold, or non-freehold and whether the real

estate is situated in this State or elsewhere. "Real estate"

does not include property sold, exchanged, or leased as a

timeshare or similar vacation item or interest, vacation club

membership, or other activity formerly regulated under the

Real Estate Timeshare Act of 1999 (repealed).

"Regular employee" means a person working an average of 20

hours per week for a person or entity who would be considered

as an employee under the Internal Revenue Service rules for

classifying workers.

"Renewal period" means the period beginning 90 days prior

to the expiration date of a license.

"Residential leasing agent" means a person who is employed

by a broker to engage in licensed activities limited to

leasing residential real estate who has obtained a license as

provided for in Section 5-5 of this Act.

"Secretary" means the Secretary of the Department of

Financial and Professional Regulation, or a person authorized

by the Secretary to act in the Secretary's stead.

"Sponsoring broker" means the broker who certifies to the

Department his, her, or its sponsorship of a licensed managing

broker, broker, or a residential leasing agent.

"Sponsorship" means that a sponsoring broker has certified

to the Department that a managing broker, broker, or

residential leasing agent named thereon is employed by or

associated by written agreement with the sponsoring broker and

the Department has registered the sponsorship, as provided for

in Section 5-40 of this Act.

"Team" means any 2 or more licensees who work together to

provide real estate brokerage services, represent themselves

to the public as being part of a team or group, are identified

by a team name that is different than their sponsoring

broker's name, and together are supervised by the same

managing broker and sponsored by the same sponsoring broker.

"Team" does not mean a separately organized, incorporated, or

legal entity.

(Source: P.A. 100-188, eff. 1-1-18; 100-534, eff. 9-22-17;

100-831, eff. 1-1-19; 100-863, eff. 8-14-18; 101-357, eff.

8-9-19.)

(225 ILCS 454/5-10)

(Section scheduled to be repealed on January 1, 2030)

Sec. 5-10. Requirements for license as a residential

leasing agent; continuing education.

(a) Every applicant for licensure as a residential leasing

agent must meet the following qualifications:

(1) be at least 18 years of age;

(2) be of good moral character;

(3) successfully complete a 4-year course of study in

a high school or secondary school or an equivalent course

of study approved by the state in which the school is

located, or possess a high school equivalency certificate,

which shall be verified under oath by the applicant;

(4) personally take and pass a written examination

authorized by the Department sufficient to demonstrate the

applicant's knowledge of the provisions of this Act

relating to residential leasing agents and the applicant's

competence to engage in the activities of a licensed

residential leasing agent;

(5) provide satisfactory evidence of having completed

15 hours of instruction in an approved course of study

relating to the leasing of residential real property. The

Board may recommend to the Department the number of hours

each topic of study shall require. The course of study

shall, among other topics, cover the provisions of this

Act applicable to residential leasing agents; fair housing

and human rights issues relating to residential leasing;

advertising and marketing issues; leases, applications,

and credit and criminal background reports; owner-tenant

relationships and owner-tenant laws; the handling of

funds; and environmental issues relating to residential

real property;

(6) complete any other requirements as set forth by

rule; and

(7) present a valid application for issuance of an

initial license accompanied by fees specified by rule.

(b) No applicant shall engage in any of the activities

covered by this Act without a valid license and until a valid

sponsorship has been registered with the Department.

(c) Successfully completed course work, completed pursuant

to the requirements of this Section, may be applied to the

course work requirements to obtain a managing broker's or

broker's license as provided by rule. The Board may recommend

to the Department and the Department may adopt requirements

for approved courses, course content, and the approval of

courses, instructors, and education providers, as well as

education provider and instructor fees. The Department may

establish continuing education requirements for residential

licensed leasing agents, by rule, consistent with the language

and intent of this Act, with the advice of the Board.

(d) The continuing education requirement for residential

leasing agents shall consist of a single core curriculum to be

prescribed by the Department as recommended by the Board.

Leasing agents shall be required to complete no less than 8

hours of continuing education in the core curriculum during

the current term of the license for each 2-year renewal

period. The curriculum shall, at a minimum, consist of a

single course or courses on the subjects of fair housing and

human rights issues related to residential leasing,

advertising and marketing issues, leases, applications, credit

reports, and criminal history, the handling of funds,

owner-tenant relationships and owner-tenant laws, and

environmental issues relating to residential real estate.

(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)

(225 ILCS 454/5-25)

(Section scheduled to be repealed on January 1, 2030)

Sec. 5-25. Good moral character.

(a) When an applicant has had a his or her license revoked

on a prior occasion or when an applicant is found to have

committed any of the practices enumerated in Section 20-20 of

this Act or when an applicant has been convicted of or enters a

plea of guilty or nolo contendere to forgery, embezzlement,

obtaining money under false pretenses, larceny, extortion,

conspiracy to defraud, or any other similar offense or

offenses or has been convicted of a felony involving moral

turpitude in any court of competent jurisdiction in this or

any other state, district, or territory of the United States

or of a foreign country, the Board may consider the prior

revocation, conduct, or conviction in its determination of the

applicant's moral character and whether to grant the applicant

a license.

(b) In its consideration of the prior revocation, conduct,

or conviction, the Board shall take into account the nature of

the conduct, any aggravating or extenuating circumstances, the

time elapsed since the revocation, conduct, or conviction, the

rehabilitation or restitution performed by the applicant,

mitigating factors, and any other factors that the Board deems

relevant, including, but not limited to:

(1) the lack of direct relation of the offense for

which the applicant was previously convicted to the

duties, functions, and responsibilities of the position

for which a license is sought;

(2) unless otherwise specified, whether 5 years since

a felony conviction or 3 years since release from

confinement for the conviction, whichever is later, have

passed without a subsequent conviction;

(3) if the applicant was previously licensed or

employed in this State or other states or jurisdictions,

the lack of prior misconduct arising from or related to

the licensed position or position of employment;

(4) the age of the person at the time of the criminal

offense;

(5) if, due to the applicant's criminal conviction

history, the applicant would be explicitly prohibited by

federal rules or regulations from working in the position

for which a license is sought;

(6) successful completion of sentence and, for

applicants serving a term of parole or probation, a

progress report provided by the applicant's probation or

parole officer that documents the applicant's compliance

with conditions of supervision;

(7) evidence of the applicant's present fitness and

professional character;

(8) evidence of rehabilitation or rehabilitative

effort during or after incarceration, or during or after a

term of supervision, including, but not limited to, a

certificate of good conduct under Section 5-5.5-25 of the

Unified Code of Corrections or a certificate of relief

from disabilities under Section 5-5.5-10 of the Unified

Code of Corrections; and

(9) any other mitigating factors that contribute to

the person's potential and current ability to perform the

job duties.

(c) The Department shall not require applicants to report

the following information and shall not consider the following

criminal history records in connection with an application for

licensure or registration:

(1) juvenile adjudications of delinquent minors as

defined in Section 5-105 of the Juvenile Court Act of 1987

subject to the restrictions set forth in Section 5-130 of

that Act;

(2) law enforcement records, court records, and

conviction records of an individual who was 17 years old

at the time of the offense and before January 1, 2014,

unless the nature of the offense required the individual

to be tried as an adult;

(3) records of arrests not followed by a charge or

conviction;

(4) records of arrests where the charges were

dismissed unless related to the practice of the

profession; however, applicants shall not be asked to

report any arrests, and an arrest not followed by a

conviction shall not be the basis of a denial and may be

used only to assess an applicant's rehabilitation;

(5) convictions overturned by a higher court; or

(6) convictions or arrests that have been sealed or

expunged.

(d) If an applicant makes a false statement of material

fact on the his or her application, the false statement may in

itself be sufficient grounds to revoke or refuse to issue a

license.

(e) A licensee shall report to the Department, in a manner

prescribed by the Department and within 30 days after the

occurrence of: (1) any conviction of or adopted by rule, any

plea of guilty, or nolo contendere to forgery, embezzlement,

obtaining money under false pretenses, larceny, extortion,

conspiracy to defraud, or any similar offense or offenses or

any conviction of a felony involving moral turpitude; (2) the

entry of an administrative sanction by a government agency in

this State or any other jurisdiction that has as an essential

element dishonesty or fraud or involves larceny, embezzlement,

or obtaining money, property, or credit by false pretenses; or

(3) any crime that subjects the licensee to compliance with

the requirements of the Sex Offender Registration Act that

occurs during the licensee's term of licensure.

(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/5-45)

(Section scheduled to be repealed on January 1, 2030)

Sec. 5-45. Offices.

(a) If a sponsoring broker maintains more than one office

within the State, the sponsoring broker shall notify the

Department in a manner prescribed by the Department for each

office other than the sponsoring broker's principal place of

business. The brokerage license shall be displayed

conspicuously in each office. The name of each branch office

shall be the same as that of the sponsoring broker's principal

office or shall clearly delineate the office's relationship

with the principal office.

(b) The sponsoring broker shall name a designated managing

broker for each office and the sponsoring broker shall be

responsible for supervising all designated managing brokers.

The sponsoring broker shall notify the Department in a manner

prescribed by the Department of the name of all designated

managing brokers of the sponsoring broker and the office or

offices they manage. Any changes in designated managing

brokers shall be reported to the Department in a manner

prescribed by the Department within 15 days of the change.

Failure to do so shall subject the sponsoring broker to

discipline under Section 20-20 of this Act.

(c) The sponsoring broker shall, within 24 hours, notify

the Department in a manner prescribed by the Department of any

opening, closing, or change in location of any office.

(d) Except as provided in this Section, each sponsoring

broker shall maintain an office, or place of business within

this State for the transaction of real estate business, shall

conspicuously display an identification sign on the outside of

the his or her physical office of adequate size and

visibility. Any record required by this Act to be created or

maintained shall be, in the case of a physical record,

securely stored and accessible for inspection by the

Department at the sponsoring broker's principal office and, in

the case of an electronic record, securely stored in the

format in which it was originally generated, sent, or received

and accessible for inspection by the Department by secure

electronic access to the record. Any record relating to a

transaction of a special account shall be maintained for a

minimum of 5 years, and any electronic record shall be backed

up at least monthly. The office or place of business shall not

be located in any retail or financial business establishment

unless it is clearly separated from the other business and is

situated within a distinct area within the establishment.

(e) A broker who is licensed in this State by examination

or pursuant to the provisions of Section 5-60 of this Act shall

not be required to maintain a definite office or place of

business in this State provided all of the following

conditions are met:

(1) the broker maintains an active broker's license in

the broker's state of domicile;

(2) the broker maintains an office in the broker's

state of domicile; and

(3) the broker has filed with the Department written

statements appointing the Secretary to act as the broker's

agent upon whom all judicial and other process or legal

notices directed to the licensee may be served and

agreeing to abide by all of the provisions of this Act with

respect to the broker's his or her real estate activities

within the State of Illinois and submitting to the

jurisdiction of the Department.

The statements under subdivision (3) of this Section shall

be in form and substance the same as those statements required

under Section 5-60 of this Act and shall operate to the same

extent.

(f) The Department may adopt rules to permit and regulate

the operation of virtual offices that do not have a fixed

location.

(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)

(225 ILCS 454/5-50)

(Section scheduled to be repealed on January 1, 2030)

Sec. 5-50. Expiration and renewal of managing broker,

broker, or residential leasing agent license; sponsoring

broker; register of licensees.

(a) The expiration date and renewal period for each

license issued under this Act shall be set by rule. Except as

otherwise provided in this Section, the holder of a license

may renew the license within 90 days preceding the expiration

date thereof by completing the continuing education required

by this Act and paying the fees specified by rule.

(b) An individual whose first license is that of a broker

received on or after the effective date of this amendatory Act

of the 101st General Assembly, must provide evidence of having

completed 45 hours of post-license education presented in a

classroom or a live, interactive webinar, or online distance

education course, and which shall require passage of a final

examination.

The Board may recommend, and the Department shall approve,

45 hours of post-license education, consisting of three

15-hour post-license courses, one each that covers applied

brokerage principles, risk management/discipline, and

transactional issues. Each of the courses shall require its

own 50-question final examination, which shall be administered

by the education provider that delivers the course.

Individuals whose first license is that of a broker

received on or after the effective date of this amendatory Act

of the 101st General Assembly, must complete all three 15-hour

courses and successfully pass a course final examination for

each course prior to the date of the next broker renewal

deadline, except for those individuals who receive their first

license within the 180 days preceding the next broker renewal

deadline, who must complete all three 15-hour courses and

successfully pass a course final examination for each course

prior to the second broker renewal deadline that follows the

receipt of their license.

(c) Any managing broker, broker, or residential leasing

agent whose license under this Act has expired shall be

eligible to renew the license during the 2-year period

following the expiration date, provided the managing broker,

broker, or residential leasing agent pays the fees as

prescribed by rule and completes continuing education and

other requirements provided for by the Act or by rule. A

managing broker, broker, or residential leasing agent whose

license has been expired for more than 2 years but less than 5

years may have it restored by (i) applying to the Department,

(ii) paying the required fee, (iii) completing the continuing

education requirements for the most recent term of licensure

pre-renewal period that ended prior to the date of the

application for reinstatement, and (iv) filing acceptable

proof of fitness to have the his or her license restored, as

set by rule. A managing broker, broker, or residential leasing

agent whose license has been expired for more than 5 years

shall be required to meet the requirements for a new license.

(d) Notwithstanding any other provisions of this Act to

the contrary, any managing broker, broker, or residential

leasing agent whose license expired while the licensee he or

she was (i) on active duty with the Armed Forces of the United

States or called into service or training by the state

militia, (ii) engaged in training or education under the

supervision of the United States preliminary to induction into

military service, or (iii) serving as the Coordinator of Real

Estate in the State of Illinois or as an employee of the

Department may have the his or her license renewed, reinstated

or restored without paying any lapsed renewal fees if within 2

years after the termination of the service, training or

education by furnishing the Department with satisfactory

evidence of service, training, or education and it has been

terminated under honorable conditions.

(e) Each licensee shall carry on one's his or her person

the his or her license or an electronic version thereof.

(f) The Department shall provide to the sponsoring broker

a notice of renewal for all sponsored licensees by mailing the

notice to the sponsoring broker's address of record, or, at

the Department's discretion, emailing the notice to the

sponsoring broker's email address of record.

(g) Upon request from the sponsoring broker, the

Department shall make available to the sponsoring broker, by

electronic means at the discretion of the Department, a

listing of licensees under this Act who, according to the

records of the Department, are sponsored by that broker. Every

licensee associated with or employed by a broker whose license

is revoked, suspended, or expired shall be considered inactive

until such time as the sponsoring broker's license is

reinstated or renewed, or a new valid sponsorship is

registered with the Department the licensee changes employment

as set forth in subsection (b) (c) of Section 5-40 of this Act.

(h) The Department shall not renew a license if the

licensee has an unpaid fine or fee from a disciplinary matter

from a non-disciplinary action imposed by the Department until

the fine or fee is paid to the Department or the licensee has

entered into a payment plan and is current on the required

payments.

(i) The Department shall not issue a license if the

applicant has an unpaid fine imposed by the Department for

unlicensed practice until the fine is paid to the Department

or the applicant has entered into a payment plan and is current

on the required payments.

(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)

(225 ILCS 454/5-70)

(Section scheduled to be repealed on January 1, 2030)

Sec. 5-70. Continuing education requirement; managing

broker or broker.

(a) The requirements of this Section apply to all managing

brokers and brokers.

(b) Except as otherwise provided in this Section, each

person who applies for renewal of a his or her license as a

managing broker or broker must successfully complete 12 hours

of real estate continuing education courses recommended by the

Board and approved by the Department during the current term

of the license. In addition, those licensees renewing or

obtaining a managing broker's license must successfully

complete a 12-hour broker management continuing education

course approved by the Department during the current term of

the license. The broker management continuing education course

must be completed in the classroom or through a live,

interactive webinar or online distance education format. No

license may be renewed except upon the successful completion

of the required courses or their equivalent or upon a waiver of

those requirements for good cause shown as determined by the

Secretary upon the recommendation of the Board. The

requirements of this Article are applicable to all managing

brokers and brokers except those managing brokers and brokers

who, during the current term of licensure renewal period:

(1) serve in the armed services of the United States;

(2) serve as an elected State or federal official;

(3) serve as a full-time employee of the Department;

or

(4) are admitted to practice law pursuant to Illinois

Supreme Court rule.

(c) (Blank).

(d) A person receiving an initial license during the 90

days before the renewal date shall not be required to complete

the continuing education courses provided for in subsection

(b) of this Section as a condition of initial license renewal.

(e) The continuing education requirement for brokers and

managing brokers shall consist of a single core curriculum and

an elective curriculum, to be recommended by the Board and

approved by the Department in accordance with this subsection.

The core curriculum shall not be further divided into

subcategories or divisions of instruction. The core curriculum

shall consist of 4 hours during the current term of the license

on subjects that may include, but are not limited to,

advertising, agency, disclosures, escrow, fair housing,

residential leasing agent management, and license law. The

amount of time allotted to each of these subjects shall be

recommended by the Board and determined by the Department. The

Department, upon the recommendation of the Board, shall review

the core curriculum every 4 years, at a minimum, and shall

revise the curriculum if necessary. However, the core

curriculum's total hourly requirement shall only be subject to

change by amendment of this subsection, and any change to the

core curriculum shall not be effective for a period of 6 months

after such change is made by the Department. The Department

shall provide notice to all approved education providers of

any changes to the core curriculum. When determining whether

revisions of the core curriculum's subjects or specific time

requirements are necessary, the Board shall consider recent

changes in applicable laws, new laws, and areas of the license

law and the Department policy that the Board deems

appropriate, and any other subject areas the Board deems

timely and applicable in order to prevent violations of this

Act and to protect the public. In establishing a

recommendation to the Department regarding the elective

curriculum, the Board shall consider subjects that cover the

various aspects of the practice of real estate that are

covered under the scope of this Act.

(f) The subject areas of continuing education courses

recommended by the Board and approved by the Department shall

be meant to protect the professionalism of the industry, the

consumer, and the public and prevent violations of this Act

and may include without limitation the following:

(1) license law and escrow;

(2) antitrust;

(3) fair housing;

(4) agency;

(5) appraisal;

(6) property management;

(7) residential brokerage;

(8) farm property management;

(9) transaction management rights and duties of

parties in a transaction;

(10) commercial brokerage and leasing;

(11) real estate financing;

(12) disclosures;

(13) residential leasing agent management;

(14) advertising;

(15) broker supervision and designated managing broker

responsibility;

(16) professional conduct; and

(17) use of technology.

(g) In lieu of credit for those courses listed in

subsection (f) of this Section, credit may be earned for

serving as a licensed instructor in an approved course of

continuing education. The amount of credit earned for teaching

a course shall be the amount of continuing education credit

for which the course is approved for licensees taking the

course.

(h) Credit hours may be earned for self-study programs

approved by the Department.

(i) A managing broker or broker may earn credit for a

specific continuing education course only once during the

current term of the license.

(j) No more than 12 hours of continuing education credit

may be taken in one calendar day.

(k) To promote the offering of a uniform and consistent

course content, the Department may provide for the development

of a single broker management course to be offered by all

education providers who choose to offer the broker management

continuing education course. The Department may contract for

the development of the 12-hour broker management continuing

education course with an outside vendor or consultant and, if

the course is developed in this manner, the Department or the

outside consultant shall license the use of that course to all

approved education providers who wish to provide the course.

(l) Except as specifically provided in this Act,

continuing education credit hours may not be earned for

completion of pre-license or post-license courses. The courses

comprising the approved 45-hour post-license curriculum for

broker licensees shall satisfy the continuing education

requirement for the initial broker license term period in

which the courses are taken. The approved 45-hour managing

broker pre-license brokerage administration and management

course shall satisfy the 12-hour broker management continuing

education requirement for the initial managing broker license

term in which the course is taken.

(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)

(225 ILCS 454/15-35)

(Section scheduled to be repealed on January 1, 2030)

Sec. 15-35. Agency relationship disclosure.

(a) A licensee acting as a designated agent shall advise a

consumer in writing, no later than beginning to work as a

designated agent on behalf of the consumer, of the following:

(1) That a designated agency relationship exists,

unless there is written agreement between the sponsoring

broker and the consumer providing for a different agency

relationship; and

(2) The name or names of the his or her designated

agent or agents on the written disclosure, which can be

included in a brokerage agreement or be a separate

document, a copy of which is retained by the sponsoring

broker real estate brokerage firm for the licensee.

(b) The licensee representing the consumer shall discuss

with the consumer the sponsoring broker's compensation and

policy with regard to cooperating with brokers who represent

other parties in a transaction.

(c) A licensee shall disclose in writing to a customer

that the licensee is not acting as the agent of the customer at

a time intended to prevent disclosure of confidential

information from a customer to a licensee, but in no event

later than the preparation of an offer to purchase or lease

real property.

(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/15-45)

(Section scheduled to be repealed on January 1, 2030)

Sec. 15-45. Dual agency.

(a) An individual licensee may act as a dual agent or a

sponsoring broker may permit one or more of its sponsored

licensees to act as dual agents in the same transaction only

with the informed written consent of all clients. Informed

written consent shall be presumed to have been given by any

client who signs a document that includes the following:

"The undersigned (insert name(s)), ("Licensee"), may

undertake a dual representation (represent both the seller

or landlord and the buyer or tenant) for the sale or lease

of property. The undersigned acknowledge they were

informed of the possibility of this type of

representation. Before signing this document please read

the following: Representing more than one party to a

transaction presents a conflict of interest since both

clients may rely upon Licensee's advice and the client's

respective interests may be adverse to each other.

Licensee will undertake this representation only with the

written consent of ALL clients in the transaction. Any

agreement between the clients as to a final contract price

and other terms is a result of negotiations between the

clients acting in their own best interests and on their

own behalf. You acknowledge that Licensee has explained

the implications of dual representation, including the

risks involved, and understand that you have been advised

to seek independent advice from your advisors or attorneys

before signing any documents in this transaction.

WHAT A LICENSEE CAN DO FOR CLIENTS

WHEN ACTING AS A DUAL AGENT

1. Treat all clients honestly.

2. Provide information about the property to the buyer or

tenant.

3. Disclose all latent material defects in the property

that are known to the Licensee.

4. Disclose financial qualification of the buyer or tenant

to the seller or landlord.

5. Explain real estate terms.

6. Help the buyer or tenant to arrange for property

inspections.

7. Explain closing costs and procedures.

8. Help the buyer compare financing alternatives.

9. Provide information about comparable properties that

have sold so both clients may make educated decisions on

what price to accept or offer.

WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN

ACTING AS A DUAL AGENT

1. Confidential information that Licensee may know about a

client, without that client's permission.

2. The price or terms the seller or landlord will take

other than the listing price without permission of the

seller or landlord.

3. The price or terms the buyer or tenant is willing to pay

without permission of the buyer or tenant.

4. A recommended or suggested price or terms the buyer or

tenant should offer.

5. A recommended or suggested price or terms the seller or

landlord should counter with or accept.

If either client is uncomfortable with this disclosure

and dual representation, please let Licensee know. You are

not required to sign this document unless you want to

allow Licensee to proceed as a Dual Agent in this

transaction. By signing below, you acknowledge that you

have read and understand this form and voluntarily consent

to Licensee acting as a Dual Agent (that is, to represent

BOTH the seller or landlord and the buyer or tenant)

should that become necessary."

(b) The dual agency disclosure form provided for in

subsection (a) of this Section must be presented by a

licensee, who offers dual representation, to the client at the

time the brokerage agreement is entered into and may be signed

by the client at that time or at any time before the licensee

acts as a dual agent as to the client.

(c) A licensee acting in a dual agency capacity in a

transaction must obtain a written confirmation from the

licensee's clients of their prior consent for the licensee to

act as a dual agent in the transaction. This confirmation

should be obtained at the time the clients are executing any

offer or contract to purchase or lease in a transaction in

which the licensee is acting as a dual agent. This

confirmation may be included in another document, such as a

contract to purchase, in which case the client must not only

sign the document but also initial the confirmation of dual

agency provision. That confirmation must state, at a minimum,

the following:

"The undersigned confirm that they have previously

consented to (insert name(s)), ("Licensee"), acting as a

Dual Agent in providing brokerage services on their behalf

and specifically consent to Licensee acting as a Dual

Agent in regard to the transaction referred to in this

document."

(d) No cause of action shall arise on behalf of any person

against a dual agent for making disclosures allowed or

required by this Article, and the dual agent does not

terminate any agency relationship by making the allowed or

required disclosures.

(e) In the case of dual agency, each client and the

licensee possess only actual knowledge and information. There

shall be no imputation of knowledge or information among or

between clients, brokers, or their affiliated licensees.

(f) In any transaction, a licensee may without liability

withdraw from representing a client who has not consented to a

disclosed dual agency. The withdrawal shall not prejudice the

ability of the licensee to continue to represent the other

client in the transaction or limit the licensee from

representing the client in other transactions. When a

withdrawal as contemplated in this subsection (f) occurs, the

licensee shall not receive a referral fee for referring a

client to another licensee unless written disclosure is made

to both the withdrawing client and the client that continues

to be represented by the licensee.

(g) A licensee shall not serve as a dual agent in any

transaction when the licensee, or an entity in which the

licensee has or will have any ownership interest, is a party to

the transaction.

(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/20-20)

(Section scheduled to be repealed on January 1, 2030)

Sec. 20-20. Nature of and grounds for discipline.

(a) The Department may refuse to issue or renew a license,

may place on probation, suspend, or revoke any license,

reprimand, or take any other disciplinary or non-disciplinary

action as the Department may deem proper and impose a fine not

to exceed $25,000 upon any licensee or applicant under this

Act or any person who holds oneself himself or herself out as

an applicant or licensee or against a licensee in handling

one's his or her own property, whether held by deed, option, or

otherwise, for any one or any combination of the following

causes:

(1) Fraud or misrepresentation in applying for, or

procuring, a license under this Act or in connection with

applying for renewal of a license under this Act.

(2) The licensee's conviction of or plea of guilty or

plea of nolo contendere, as set forth in subsection (e) of

Section 5-25, to: (A) a felony or misdemeanor in this

State or any other jurisdiction; or (B) the entry of an

administrative sanction by a government agency in this

State or any other jurisdiction; or (C) any crime that

subjects the licensee to compliance with the requirements

of the Sex Offender Registration Act. Action taken under

this paragraph (2) for a misdemeanor or an administrative

sanction is limited to a misdemeanor or administrative

sanction that has as an essential element dishonesty or

fraud or involves larceny, embezzlement, or obtaining

money, property, or credit by false pretenses or by means

of a confidence game.

(3) Inability to practice the profession with

reasonable judgment, skill, or safety as a result of a

physical illness, including, but not limited to,

deterioration through the aging process or loss of motor

skill, or a mental illness, or disability.

(4) Practice under this Act as a licensee in a retail

sales establishment from an office, desk, or space that is

not separated from the main retail business and located

within a separate and distinct area within the

establishment.

(5) Having been disciplined by another state, the

District of Columbia, a territory, a foreign nation, or a

governmental agency authorized to impose discipline if at

least one of the grounds for that discipline is the same as

or the equivalent of one of the grounds for which a

licensee may be disciplined under this Act. A certified

copy of the record of the action by the other state or

jurisdiction shall be prima facie evidence thereof.

(6) Engaging in the practice of real estate brokerage

without a license or after the licensee's license or

temporary permit was expired or while the license was

inactive, revoked, or suspended.

(7) Cheating on or attempting to subvert the Real

Estate License Exam or a continuing education course or

examination.

(8) Aiding or abetting an applicant to subvert or

cheat on the Real Estate License Exam or continuing

education exam administered pursuant to this Act.

(9) Advertising that is inaccurate, misleading, or

contrary to the provisions of the Act.

(10) Making any substantial misrepresentation or

untruthful advertising.

(11) Making any false promises of a character likely

to influence, persuade, or induce.

(12) Pursuing a continued and flagrant course of

misrepresentation or the making of false promises through

licensees, employees, agents, advertising, or otherwise.

(13) Any misleading or untruthful advertising, or

using any trade name or insignia of membership in any real

estate organization of which the licensee is not a member.

(14) Acting for more than one party in a transaction

without providing written notice to all parties for whom

the licensee acts.

(15) Representing or attempting to represent, or

performing licensed activities for, a broker other than

the sponsoring broker.

(16) Failure to account for or to remit any moneys or

documents coming into the licensee's his or her possession

that belong to others.

(17) Failure to maintain and deposit in a special

account, separate and apart from personal and other

business accounts, all escrow moneys belonging to others

entrusted to a licensee while acting as a broker, escrow

agent, or temporary custodian of the funds of others or

failure to maintain all escrow moneys on deposit in the

account until the transactions are consummated or

terminated, except to the extent that the moneys, or any

part thereof, shall be:

(A) disbursed prior to the consummation or

termination (i) in accordance with the written

direction of the principals to the transaction or

their duly authorized agents, (ii) in accordance with

directions providing for the release, payment, or

distribution of escrow moneys contained in any written

contract signed by the principals to the transaction

or their duly authorized agents, or (iii) pursuant to

an order of a court of competent jurisdiction; or

(B) deemed abandoned and transferred to the Office

of the State Treasurer to be handled as unclaimed

property pursuant to the Revised Uniform Unclaimed

Property Act. Escrow moneys may be deemed abandoned

under this subparagraph (B) only: (i) in the absence

of disbursement under subparagraph (A); (ii) in the

absence of notice of the filing of any claim in a court

of competent jurisdiction; and (iii) if 6 months have

elapsed after the receipt of a written demand for the

escrow moneys from one of the principals to the

transaction or the principal's duly authorized agent.

The account shall be noninterest bearing, unless the

character of the deposit is such that payment of interest

thereon is otherwise required by law or unless the

principals to the transaction specifically require, in

writing, that the deposit be placed in an interest-bearing

account.

(18) Failure to make available to the Department all

escrow records and related documents maintained in

connection with the practice of real estate within 24

hours of a request for those documents by Department

personnel.

(19) Failing to furnish copies upon request of

documents relating to a real estate transaction to a party

who has executed that document.

(20) Failure of a sponsoring broker or licensee to

timely provide sponsorship or termination of sponsorship

information to the Department.

(21) Engaging in dishonorable, unethical, or

unprofessional conduct of a character likely to deceive,

defraud, or harm the public, including, but not limited

to, conduct set forth in rules adopted by the Department.

(22) Commingling the money or property of others with

the licensee's his or her own money or property.

(23) Employing any person on a purely temporary or

single deal basis as a means of evading the law regarding

payment of commission to nonlicensees on some contemplated

transactions.

(24) Permitting the use of one's his or her license as

a broker to enable a residential leasing agent or

unlicensed person to operate a real estate business

without actual participation therein and control thereof

by the broker.

(25) Any other conduct, whether of the same or a

different character from that specified in this Section,

that constitutes dishonest dealing.

(26) Displaying a "for rent" or "for sale" sign on any

property without the written consent of an owner or the

owner's his or her duly authorized agent or advertising by

any means that any property is for sale or for rent without

the written consent of the owner or the owner's his or her

authorized agent.

(27) Failing to provide information requested by the

Department, or otherwise respond to that request, within

30 days of the request.

(28) Advertising by means of a blind advertisement,

except as otherwise permitted in Section 10-30 of this

Act.

(29) A licensee under this Act or an unlicensed

individual offering guaranteed sales plans, as defined in

Section 10-50, except to the extent set forth in Section

10-50.

(30) Influencing or attempting to influence, by any

words or acts, a prospective seller, purchaser, occupant,

landlord, or tenant of real estate, in connection with

viewing, buying, or leasing real estate, so as to promote

or tend to promote the continuance or maintenance of

racially and religiously segregated housing or so as to

retard, obstruct, or discourage racially integrated

housing on or in any street, block, neighborhood, or

community.

(31) Engaging in any act that constitutes a violation

of any provision of Article 3 of the Illinois Human Rights

Act, whether or not a complaint has been filed with or

adjudicated by the Human Rights Commission.

(32) Inducing any party to a contract of sale or lease

or brokerage agreement to break the contract of sale or

lease or brokerage agreement for the purpose of

substituting, in lieu thereof, a new contract for sale or

lease or brokerage agreement with a third party.

(33) Negotiating a sale, exchange, or lease of real

estate directly with any person if the licensee knows that

the person has an exclusive brokerage agreement with

another broker, unless specifically authorized by that

broker.

(34) When a licensee is also an attorney, acting as

the attorney for either the buyer or the seller in the same

transaction in which the licensee is acting or has acted

as a managing broker or broker.

(35) Advertising or offering merchandise or services

as free if any conditions or obligations necessary for

receiving the merchandise or services are not disclosed in

the same advertisement or offer. These conditions or

obligations include without limitation the requirement

that the recipient attend a promotional activity or visit

a real estate site. As used in this subdivision (35),

"free" includes terms such as "award", "prize", "no

charge", "free of charge", "without charge", and similar

words or phrases that reasonably lead a person to believe

that one he or she may receive or has been selected to

receive something of value, without any conditions or

obligations on the part of the recipient.

(36) (Blank).

(37) Violating the terms of a disciplinary order

issued by the Department.

(38) Paying or failing to disclose compensation in

violation of Article 10 of this Act.

(39) Requiring a party to a transaction who is not a

client of the licensee to allow the licensee to retain a

portion of the escrow moneys for payment of the licensee's

commission or expenses as a condition for release of the

escrow moneys to that party.

(40) Disregarding or violating any provision of this

Act or the published rules adopted by the Department to

enforce this Act or aiding or abetting any individual,

foreign or domestic partnership, registered limited

liability partnership, limited liability company,

corporation, or other business entity in disregarding any

provision of this Act or the published rules adopted by

the Department to enforce this Act.

(41) Failing to provide the minimum services required

by Section 15-75 of this Act when acting under an

exclusive brokerage agreement.

(42) Habitual or excessive use of or addiction to

alcohol, narcotics, stimulants, or any other chemical

agent or drug that results in a managing broker, broker,

or residential leasing agent's inability to practice with

reasonable skill or safety.

(43) Enabling, aiding, or abetting an auctioneer, as

defined in the Auction License Act, to conduct a real

estate auction in a manner that is in violation of this

Act.

(44) Permitting any residential leasing agent or

temporary residential leasing agent permit holder to

engage in activities that require a broker's or managing

broker's license.

(45) Failing to notify the Department, of any criminal

conviction that occurs during the licensee's term of

licensure within 30 days after the occurrence, of the

information required in subsection (e) of Section 5-25

conviction.

(46) A designated managing broker's failure to provide

an appropriate written company policy or failure to

perform any of the duties set forth in Section 10-55.

(b) The Department may refuse to issue or renew or may

suspend the license of any person who fails to file a return,

pay the tax, penalty or interest shown in a filed return, or

pay any final assessment of tax, penalty, or interest, as

required by any tax Act administered by the Department of

Revenue, until such time as the requirements of that tax Act

are satisfied in accordance with subsection (g) of Section

2105-15 of the Department of Professional Regulation Law of

the Civil Administrative Code of Illinois.

(c) (Blank).

(d) In cases where the Department of Healthcare and Family

Services (formerly Department of Public Aid) has previously

determined that a licensee or a potential licensee is more

than 30 days delinquent in the payment of child support and has

subsequently certified the delinquency to the Department may

refuse to issue or renew or may revoke or suspend that person's

license or may take other disciplinary action against that

person based solely upon the certification of delinquency made

by the Department of Healthcare and Family Services in

accordance with item (5) of subsection (a) of Section 2105-15

of the Department of Professional Regulation Law of the Civil

Administrative Code of Illinois.

(e) (Blank). In enforcing this Section, the Department or

Board upon a showing of a possible violation may compel an

individual licensed to practice under this Act, or who has

applied for licensure under this Act, to submit to a mental or

physical examination, or both, as required by and at the

expense of the Department. The Department or Board may order

the examining physician to present testimony concerning the

mental or physical examination of the licensee or applicant.

No information shall be excluded by reason of any common law or

statutory privilege relating to communications between the

licensee or applicant and the examining physician. The

examining physicians shall be specifically designated by the

Board or Department. The individual to be examined may have,

at his or her own expense, another physician of his or her

choice present during all aspects of this examination. Failure

of an individual to submit to a mental or physical

examination, when directed, shall be grounds for suspension of

his or her license until the individual submits to the

examination if the Department finds, after notice and hearing,

that the refusal to submit to the examination was without

reasonable cause.

If the Department or Board finds an individual unable to

practice because of the reasons set forth in this Section, the

Department or Board may require that individual to submit to

care, counseling, or treatment by physicians approved or

designated by the Department or Board, as a condition, term,

or restriction for continued, reinstated, or renewed licensure

to practice; or, in lieu of care, counseling, or treatment,

the Department may file, or the Board may recommend to the

Department to file, a complaint to immediately suspend,

revoke, or otherwise discipline the license of the individual.

An individual whose license was granted, continued,

reinstated, renewed, disciplined or supervised subject to such

terms, conditions, or restrictions, and who fails to comply

with such terms, conditions, or restrictions, shall be

referred to the Secretary for a determination as to whether

the individual shall have his or her license suspended

immediately, pending a hearing by the Department.

In instances in which the Secretary immediately suspends a

person's license under this Section, a hearing on that

person's license must be convened by the Department within 30

days after the suspension and completed without appreciable

delay. The Department and Board shall have the authority to

review the subject individual's record of treatment and

counseling regarding the impairment to the extent permitted by

applicable federal statutes and regulations safeguarding the

confidentiality of medical records.

An individual licensed under this Act and affected under

this Section shall be afforded an opportunity to demonstrate

to the Department or Board that he or she can resume practice

in compliance with acceptable and prevailing standards under

the provisions of his or her license.

(Source: P.A. 100-22, eff. 1-1-18; 100-188, eff. 1-1-18;

100-534, eff. 9-22-17; 100-831, eff. 1-1-19; 100-863, eff.

8-14-18; 100-872, eff. 8-14-18; 101-81, eff. 7-12-19; 101-357,

eff. 8-9-19.)

(225 ILCS 454/20-20.1)

(Section scheduled to be repealed on January 1, 2030)

Sec. 20-20.1. Citations.

(a) The Department may adopt rules to permit the issuance

of citations to any licensee for failure to comply with the

continuing education requirements set forth in this Act or as

adopted by rule. The citation shall be issued to the licensee,

and a copy shall be sent to the licensee's his or her

designated managing broker and sponsoring broker. The citation

shall contain the licensee's name and address, the licensee's

license number, the number of required hours of continuing

education that have not been successfully completed by the

licensee's licensee within the renewal deadline period, and

the penalty imposed, which shall not exceed $2,000. The

issuance of any such citation shall not excuse the licensee

from completing all continuing education required for that

term of licensure renewal period.

(b) Service of a citation shall be made by in person,

electronically, or by mail to the licensee at the licensee's

address of record or email address of record, and must clearly

state that if the cited licensee wishes to dispute the

citation, the cited licensee he or she may make a written

request, within 30 days after the citation is served, for a

hearing before the Department. If the cited licensee does not

request a hearing within 30 days after the citation is served,

then the citation shall become a final, non-disciplinary

order, and any fine imposed is due and payable within 60 days

after that final order. If the cited licensee requests a

hearing within 30 days after the citation is served, the

Department shall afford the cited licensee a hearing conducted

in the same manner as a hearing provided for in this Act for

any violation of this Act and shall determine whether the

cited licensee committed the violation as charged and whether

the fine as levied is warranted. If the violation is found, any

fine shall constitute non-public discipline and be due and

payable within 30 days after the order of the Secretary, which

shall constitute a final order of the Department. No change in

license status may be made by the Department until such time as

a final order of the Department has been issued.

(c) Payment of a fine that has been assessed pursuant to

this Section shall not constitute disciplinary action

reportable on the Department's website or elsewhere unless a

licensee has previously received 2 or more citations and has

been assessed paid 2 or more fines.

(d) Nothing in this Section shall prohibit or limit the

Department from taking further action pursuant to this Act and

rules for additional, repeated, or continuing violations.

(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/20-69)

(Section scheduled to be repealed on January 1, 2030)

Sec. 20-69. Restoration of a suspended or revoked license.

At any time after the successful completion of a term of

suspension or revocation of an individual's a license, the

Department may restore it to the licensee, upon the written

recommendation of the Board, unless after an investigation and

a hearing the Board determines that restoration is not in the

public interest.

(Source: P.A. 96-856, eff. 12-31-09.)

(225 ILCS 454/20-75)

(Section scheduled to be repealed on January 1, 2030)

Sec. 20-75. Administrative Review venue.

(a) All final administrative decisions of the Department

are subject to judicial review under the Administrative Review

Law and its rules. The term "administrative decision" is

defined in Section 3-101 of the Code of Civil Procedure.

(b) Proceedings for judicial review shall be commenced in

the circuit court of the court in which the party applying for

review resides, but if the party is not a resident of Illinois,

the venue shall be in Sangamon County or Cook County.

(Source: P.A. 101-357, eff. 8-9-19.)

(225 ILCS 454/20-110)

(Section scheduled to be repealed on January 1, 2030)

Sec. 20-110. Disciplinary actions of the Department not

limited. Nothing contained in Sections 20-82 20-80 through

20-100 of this Act limits the authority of the Department to

take disciplinary action against any licensee for a violation

of this Act or the rules of the Department, nor shall the

repayment in full of all obligations to the Real Estate

Recovery Fund by any licensee nullify or modify the effect of

any other disciplinary proceeding brought pursuant to this

Act.

(Source: P.A. 96-856, eff. 12-31-09.)

(225 ILCS 454/25-10)

(Section scheduled to be repealed on January 1, 2030)

Sec. 25-10. Real Estate Administration and Disciplinary

Board; duties. There is created the Real Estate Administration

and Disciplinary Board. The Board shall be composed of 15

persons appointed by the Governor. Members shall be appointed

to the Board subject to the following conditions:

(1) All members shall have been residents and citizens

of this State for at least 6 years prior to the date of

appointment.

(2) Twelve members shall have been actively engaged as

managing brokers or brokers or both for at least the 10

years prior to the appointment, 2 of whom must possess an

active pre-license instructor license.

(3) Three members of the Board shall be public members

who represent consumer interests.

None of these members shall be (i) a person who is licensed

under this Act or a similar Act of another jurisdiction, (ii)

the spouse or immediate family member of a licensee, or (iii) a

person who has an ownership interest in a real estate

brokerage business, or (iv) a person the Department determines

to have any other connection with a real estate brokerage

business or a licensee.

The members' terms shall be for 4 years and until a

successor is appointed expire upon completion of the term. No

member shall be reappointed to the Board for a term that would

cause the member's his or her cumulative service to the Board

to exceed 10 years. Appointments to fill vacancies shall be

for the unexpired portion of the term. Those members of the

Board that satisfy the requirements of paragraph (2) shall be

chosen in a manner such that no area of the State shall be

unreasonably represented. In making the appointments, the

Governor shall give due consideration to the recommendations

by members and organizations of the profession. The Governor

may terminate the appointment of any member for cause that in

the opinion of the Governor reasonably justifies the

termination. Cause for termination shall include without

limitation misconduct, incapacity, neglect of duty, or missing

4 board meetings during any one fiscal calendar year. Each

member of the Board may receive a per diem stipend in an amount

to be determined by the Secretary. While engaged in the

performance of duties, each Each member shall be reimbursed

for paid his or her necessary expenses while engaged in the

performance of his or her duties. Such compensation and

expenses shall be paid out of the Real Estate License

Administration Fund. The Secretary shall consider the

recommendations of the Board on questions involving standards

of professional conduct, discipline, education, and policies

and procedures under this Act. With regard to this subject

matter, the Secretary may establish temporary or permanent

committees of the Board and may consider the recommendations

of the Board on matters that include, but are not limited to,

criteria for the licensing and renewal of education providers,

pre-license and continuing education instructors, pre-license

and continuing education curricula, standards of educational

criteria, and qualifications for licensure and renewal of

professions, courses, and instructors. The Department, after

notifying and considering the recommendations of the Board, if

any, may issue rules, consistent with the provisions of this

Act, for the administration and enforcement thereof and may

prescribe forms that shall be used in connection therewith.

Eight Board members shall constitute a quorum. A quorum is

required for all Board decisions. A vacancy in the membership

of the Board shall not impair the right of a quorum to exercise

all of the rights and perform all of the duties of the Board.

The Board shall elect annually, at its first meeting of

the fiscal year, a vice chairperson who shall preside, with

voting privileges, at meetings when the chairperson is not

present. Members of the Board shall be immune from suit in an

action based upon any disciplinary proceedings or other acts

performed in good faith as members of the Board.

(Source: P.A. 99-227, eff. 8-3-15; 100-188, eff. 1-1-18;

100-886, eff. 8-14-18.)

(225 ILCS 454/25-38 new)

Sec. 25-38. Real Estate Audit Fund. Notwithstanding any

other provision of law, in addition to any other transfers

that may be provided by law, on July 1, 2023, or as soon

thereafter as practical, the State Comptroller shall direct

and the State Treasurer shall transfer the remaining balance

from the Real Estate Audit Fund into the Real Estate License

Administration Fund. Upon completion of the transfer, the Real

Estate Audit Fund is dissolved, and any future deposits due to

that Fund and any outstanding obligations or liabilities of

that Fund pass to the Real Estate License Administration Fund.

This Section is repealed on October 1, 2023.

(225 ILCS 454/30-15)

(Section scheduled to be repealed on January 1, 2030)

Sec. 30-15. Licensing of education providers; approval of

courses.

(a) (Blank).

(b) (Blank).

(c) (Blank).

(d) (Blank).

(e) (Blank).

(f) All education providers shall submit, at the time of

initial application and with each license renewal, a list of

courses with course materials that comply with the course

requirements in this Act to be offered by the education

provider. The Department may establish an online mechanism by

which education providers may submit for approval by the

Department upon the recommendation of the Board or its

designee pre-license, post-license, or continuing education

courses that are submitted after the time of the education

provider's initial license application or renewal. The

Department shall provide to each education provider a

certificate for each approved pre-license, post-license, or

continuing education course. All pre-license, post-license, or

continuing education courses shall be valid for the period

coinciding with the term of license of the education provider.

However, in no case shall a course continue to be valid if it

does not, at all times, meet all of the requirements of the

core curriculum established by this Act and the Board, as

modified from time to time in accordance with this Act. All

education providers shall provide a copy of the certificate of

the pre-license, post-license, or continuing education course

within the course materials given to each student or shall

display a copy of the certificate of the pre-license,

post-license, or continuing education course in a conspicuous

place at the location of the class.

(g) Each education provider shall provide to the

Department a report in a frequency and format determined by

the Department, with information concerning students who

successfully completed all approved pre-license, post-license,

or continuing education courses offered by the education

provider.

(h) The Department, upon the recommendation of the Board,

may temporarily suspend a licensed education provider's

approved courses without hearing and refuse to accept

successful completion of or participation in any of these

pre-license, post-license, or continuing education courses for

education credit from that education provider upon the failure

of that education provider to comply with the provisions of

this Act or the rules for the administration of this Act, until

such time as the Department receives satisfactory assurance of

compliance. The Department shall notify the education provider

of the noncompliance and may initiate disciplinary proceedings

pursuant to this Act. The Department may refuse to issue,

suspend, revoke, or otherwise discipline the license of an

education provider or may withdraw approval of a pre-license,

post-license, or continuing education course for good cause.

Failure to comply with the requirements of this Section or any

other requirements established by rule shall be deemed to be

good cause. Disciplinary proceedings shall be conducted by the

Board in the same manner as other disciplinary proceedings

under this Act.

(i) Pre-license, post-license, and continuing education

courses, whether submitted for approval at the time of an

education provider's initial application for licensure or

otherwise, must meet the following minimum course

requirements:

(1) Continuing education courses No continuing

education course shall be required to be at least one hour

taught in increments longer than 2 hours in duration. For

; however, for each one hour of course time in each course,

there shall be a minimum of 50 minutes of instruction.

(2) All core curriculum courses shall be provided only

in the classroom or through a live, interactive webinar or

online distance education format.

(3) Courses provided through a live, interactive

webinar shall require all participants to demonstrate

their attendance in and attention to the course by

answering or responding to at least one polling question

per 50 minutes of course instruction.

(4) All participants in courses provided in an online

distance education format shall demonstrate proficiency

with the subject matter of the course through verifiable

responses to questions included in the course content.

(5) Credit for courses completed in a classroom or

through a live, interactive webinar or online distance

education format shall not require an examination.

(6) Credit for courses provided through

correspondence, or by home study, shall require the

passage of an in-person, proctored examination.

(j) The Department is authorized to engage a third party

as the Board's designee to perform the functions specifically

provided for in subsection (f) of this Section, namely that of

administering the online system for receipt, review, and

approval or denial of new courses.

(k) The Department may adopt any administrative rule

consistent with the language and intent of this Act that may be

necessary for the implementation and enforcement of this

Section.

(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)

(225 ILCS 454/30-25)

(Section scheduled to be repealed on January 1, 2030)

Sec. 30-25. Licensing of education provider instructors.

(a) No person shall act as either a pre-license or

continuing education instructor without possessing a valid

pre-license or continuing education instructor license and

satisfying any other qualification criteria adopted by the

Department by rule.

(a-5) Each person with a valid pre-license instructor

license may teach pre-license, post-license, continuing

education core curriculum, continuing education elective

curriculum, or broker management education courses if they

meet specific criteria adopted by the Department by rule.

Those persons who have not met the criteria or who only possess

a valid continuing education instructor license shall only

teach continuing education elective curriculum courses. Any

person with a valid continuing education instructor license

who wishes to teach continuing education core curriculum or

broker management continuing education courses must obtain a

valid pre-license instructor license.

(b) Every person who desires to obtain an education

provider instructor's license shall attend and successfully

complete a one-day instructor development workshop, as

approved by the Department. However, pre-license instructors

who have complied with subsection (b) of this Section 30-25

shall not be required to complete the instructor workshop in

order to teach continuing education elective curriculum

courses.

(b-5) The term of licensure for a pre-license or

continuing education instructor shall be 2 years, with renewal

dates adopted by rule. Every person who desires to obtain a

pre-license or continuing education instructor license shall

make application to the Department in a manner prescribed by

the Department, accompanied by the fee adopted by rule. In

addition to any other information required to be contained in

the application, every application for an original license

shall include the applicant's Social Security number, which

shall be retained in the agency's records pertaining to the

license. As soon as practical, the Department shall assign a

customer's identification number to each applicant for a

license.

Every application for a renewal or restored license shall

require the applicant's customer identification number.

The Department shall issue a pre-license or continuing

education instructor license to applicants who meet

qualification criteria established by this Act or rule.

(c) The Department may refuse to issue, suspend, revoke,

or otherwise discipline a pre-license or continuing education

instructor for good cause. Disciplinary proceedings shall be

conducted by the Board in the same manner as other

disciplinary proceedings under this Act. All pre-license

instructors must teach at least one pre-license or continuing

education core curriculum course within the period of

licensure as a requirement for renewal of the instructor's

license. All continuing education instructors must teach at

least one course within the period of licensure or take an

instructor training program approved by the Department in lieu

thereof as a requirement for renewal of the instructor's

license.

(d) Each course transcript submitted by an education

provider to the Department shall include the name and license

number of the pre-license or continuing education instructor

for the course.

(e) Licensed education provider instructors may teach for

more than one licensed education provider.

(f) The Department may adopt any administrative rule

consistent with the language and intent of this Act that may be

necessary for the implementation and enforcement of this

Section.

(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)

(225 ILCS 454/20-21 rep.)

Section 35. The Real Estate License Act of 2000 is amended

by repealing Section 20-21.

(225 ILCS 456/Act rep.)

Section 40. The Real Estate Regulation Transfer Act is

repealed.

Section 45. The Real Estate Appraiser Licensing Act of

2002 is amended by changing Sections 1-10, 5-25, 15-15, and

25-10 as follows:

(225 ILCS 458/1-10)

(Section scheduled to be repealed on January 1, 2027)

Sec. 1-10. Definitions. As used in this Act, unless the

context otherwise requires:

"Accredited college or university, junior college, or

community college" means a college or university, junior

college, or community college that is approved or accredited

by the Board of Higher Education, a regional or national

accreditation association, or by an accrediting agency that is

recognized by the U.S. Secretary of Education.

"Address of record" means the designated street address,

which may not be a post office box, recorded by the Department

in the applicant's or licensee's application file or license

file as maintained by the Department.

"Applicant" means a person who applies to the Department

for a license under this Act.

"Appraisal" means (noun) the act or process of developing

an opinion of value; an opinion of value (adjective) of or

pertaining to appraising and related functions, such as

appraisal practice or appraisal services.

"Appraisal assignment" means a valuation service provided

pursuant to an agreement between an appraiser and a client.

"Appraisal firm" means an appraisal entity that is 100%

owned and controlled by a person or persons licensed in

Illinois as a certified general real estate appraiser or a

certified residential real estate appraiser. "Appraisal firm"

does not include an appraisal management company.

"Appraisal management company" means any corporation,

limited liability company, partnership, sole proprietorship,

subsidiary, unit, or other business entity that directly or

indirectly: (1) provides appraisal management services to

creditors or secondary mortgage market participants, including

affiliates; (2) provides appraisal management services in

connection with valuing the consumer's principal dwelling as

security for a consumer credit transaction (including consumer

credit transactions incorporated into securitizations); and

(3) any appraisal management company that, within a given

12-month period, oversees an appraiser panel of 16 or more

State-certified appraisers in Illinois or 25 or more

State-certified or State-licensed appraisers in 2 or more

jurisdictions. "Appraisal management company" includes a

hybrid entity.

"Appraisal practice" means valuation services performed by

an individual acting as an appraiser, including, but not

limited to, appraisal or appraisal review.

"Appraisal report" means any communication, written or

oral, of an appraisal or appraisal review that is transmitted

to a client upon completion of an assignment.

"Appraisal review" means the act or process of developing

and communicating an opinion about the quality of another

appraiser's work that was performed as part of an appraisal,

appraisal review, or appraisal assignment.

"Appraisal Subcommittee" means the Appraisal Subcommittee

of the Federal Financial Institutions Examination Council as

established by Title XI.

"Appraiser" means a person who performs real estate or

real property appraisals competently and in a manner that is

independent, impartial, and objective.

"Appraiser panel" means a network, list, or roster of

licensed or certified appraisers approved by the appraisal

management company or by the end-user client to perform

appraisals as independent contractors for the appraisal

management company. "Appraiser panel" includes both appraisers

accepted by an appraisal management company for consideration

for future appraisal assignments and appraisers engaged by an

appraisal management company to perform one or more

appraisals. For the purposes of determining the size of an

appraiser panel, only independent contractors of hybrid

entities shall be counted towards the appraiser panel.

"AQB" means the Appraisal Qualifications Board of the

Appraisal Foundation.

"Associate real estate trainee appraiser" means an

entry-level appraiser who holds a license of this

classification under this Act with restrictions as to the

scope of practice in accordance with this Act.

"Automated valuation model" means an automated system that

is used to derive a property value through the use of available

property records and various analytic methodologies such as

comparable sales prices, home characteristics, and price

changes.

"Board" means the Real Estate Appraisal Administration and

Disciplinary Board.

"Broker price opinion" means an estimate or analysis of

the probable selling price of a particular interest in real

estate, which may provide a varying level of detail about the

property's condition, market, and neighborhood and information

on comparable sales. The activities of a real estate broker or

managing broker engaging in the ordinary course of business as

a broker, as defined in this Section, shall not be considered a

broker price opinion if no compensation is paid to the broker

or managing broker, other than compensation based upon the

sale or rental of real estate.

"Classroom hour" means 50 minutes of instruction out of

each 60-minute segment of coursework.

"Client" means the party or parties who engage an

appraiser by employment or contract in a specific appraisal

assignment.

"Comparative market analysis" is an analysis or opinion

regarding pricing, marketing, or financial aspects relating to

a specified interest or interests in real estate that may be

based upon an analysis of comparative market data, the

expertise of the real estate broker or managing broker, and

such other factors as the broker or managing broker may deem

appropriate in developing or preparing such analysis or

opinion. The activities of a real estate broker or managing

broker engaging in the ordinary course of business as a

broker, as defined in this Section, shall not be considered a

comparative market analysis if no compensation is paid to the

broker or managing broker, other than compensation based upon

the sale or rental of real estate.

"Coordinator" means the Real Estate Appraisal Coordinator

created in Section 25-15.

"Department" means the Department of Financial and

Professional Regulation.

"Email address of record" means the designated email

address recorded by the Department in the applicant's

application file or the licensee's license file maintained by

the Department.

"Evaluation" means a valuation permitted by the appraisal

regulations of the Federal Financial Institutions Examination

Council and its federal agencies for transactions that qualify

for the appraisal threshold exemption, business loan

exemption, or subsequent transaction exemption.

"Federal financial institutions regulatory agencies" means

the Board of Governors of the Federal Reserve System, the

Federal Deposit Insurance Corporation, the Office of the

Comptroller of the Currency, the Consumer Financial Protection

Bureau, and the National Credit Union Administration.

"Federally related transaction" means any real

estate-related financial transaction in which a federal

financial institutions regulatory agency engages in, contracts

for, or regulates and requires the services of an appraiser.

"Financial institution" means any bank, savings bank,

savings and loan association, credit union, mortgage broker,

mortgage banker, licensee under the Consumer Installment Loan

Act or the Sales Finance Agency Act, or a corporate fiduciary,

subsidiary, affiliate, parent company, or holding company of

any such licensee, or any institution involved in real estate

financing that is regulated by state or federal law.

"Hybrid entity" means an appraisal management company that

hires an appraiser as an employee to perform an appraisal and

engages an independent contractor to perform an appraisal.

"License" means the privilege conferred by the Department

to a person that has fulfilled all requirements prerequisite

to any type of licensure under this Act.

"Licensee" means any person licensed under this Act , as

defined in this Section, who holds a valid unexpired license.

"Multi-state licensing system" means a web-based platform

that allows an applicant to submit the application or license

renewal application to the Department online.

"Person" means an individual, entity, sole proprietorship,

corporation, limited liability company, partnership, and joint

venture, foreign or domestic, except that when the context

otherwise requires, the term may refer to more than one

individual or other described entity.

"Real estate" means an identified parcel or tract of land,

including any improvements.

"Real estate related financial transaction" means any

transaction involving:

(1) the sale, lease, purchase, investment in, or

exchange of real property, including interests in property

or the financing thereof;

(2) the refinancing of real property or interests in

real property; and

(3) the use of real property or interest in property

as security for a loan or investment, including mortgage

backed securities.

"Real property" means the interests, benefits, and rights

inherent in the ownership of real estate.

"Secretary" means the Secretary of Financial and

Professional Regulation or the Secretary's designee.

"State certified general real estate appraiser" means an

appraiser who holds a license of this classification under

this Act and such classification applies to the appraisal of

all types of real property without restrictions as to the

scope of practice.

"State certified residential real estate appraiser" means

an appraiser who holds a license of this classification under

this Act and such classification applies to the appraisal of

one to 4 units of residential real property without regard to

transaction value or complexity, but with restrictions as to

the scope of practice in a federally related transaction in

accordance with Title XI, the provisions of USPAP, criteria

established by the AQB, and further defined by rule.

"Supervising appraiser" means either (i) an appraiser who

holds a valid license under this Act as either a State

certified general real estate appraiser or a State certified

residential real estate appraiser, who co-signs an appraisal

report for an associate real estate trainee appraiser or (ii)

a State certified general real estate appraiser who holds a

valid license under this Act who co-signs an appraisal report

for a State certified residential real estate appraiser on

properties other than one to 4 units of residential real

property without regard to transaction value or complexity.

"Title XI" means Title XI of the federal Financial

Institutions Reform, Recovery, and Enforcement Act of 1989.

"USPAP" means the Uniform Standards of Professional

Appraisal Practice as promulgated by the Appraisal Standards

Board pursuant to Title XI and by rule.

"Valuation services" means services pertaining to aspects

of property value.

(Source: P.A. 102-20, eff. 1-1-22; 102-687, eff. 12-17-21.)

(225 ILCS 458/5-25)

(Section scheduled to be repealed on January 1, 2027)

Sec. 5-25. Renewal of license.

(a) The expiration date and renewal period for a State

certified general real estate appraiser license or a State

certified residential real estate appraiser license issued

under this Act shall be set by rule. Except as otherwise

provided in subsections (b) and (f) of this Section, the

holder of a license may renew the license within 90 days

preceding the expiration date by:

(1) completing and submitting to the Department, or

through a multi-state licensing system as designated by

the Secretary, a renewal application form as provided by

the Department;

(2) paying the required fees; and

(3) providing evidence to the Department, or through a

multi-state licensing system as designated by the

Secretary, of successful completion of the continuing

education requirements through courses approved by the

Department from education providers licensed by the

Department, as established by the AQB and by rule.

(b) A State certified general real estate appraiser or

State certified residential real estate appraiser whose

license under this Act has expired may renew the license for a

period of 2 years following the expiration date by complying

with the requirements of paragraphs (1), (2), and (3) of

subsection (a) of this Section and paying any late penalties

established by rule.

(c) (Blank).

(d) The expiration date and renewal period for an

associate real estate trainee appraiser license issued under

this Act shall be set by rule. Except as otherwise provided in

subsections (e) and (f) of this Section, the holder of an

associate real estate trainee appraiser license may renew the

license within 90 days preceding the expiration date by:

(1) completing and submitting to the Department, or

through a multi-state licensing system as designated by

the Secretary, a renewal application form as provided by

the Department;

(2) paying the required fees; and

(3) providing evidence to the Department, or through a

multi-state licensing system as designated by the

Secretary, of successful completion of the continuing

education requirements through courses approved by the

Department from education providers approved by the

Department, as established by rule.

(e) Any associate real estate trainee appraiser whose

license under this Act has expired may renew the license for a

period of 2 years following the expiration date by complying

with the requirements of paragraphs (1), (2), and (3) of

subsection (d) of this Section and paying any late penalties

as established by rule.

(f) Notwithstanding subsections (c) and (e), an appraiser

whose license under this Act has expired may renew or convert

the license without paying any lapsed renewal fees or late

penalties if the license expired while the appraiser was:

(1) on active duty with the United States Armed

Services;

(2) serving as the Coordinator or an employee of the

Department who was required to surrender the license

during the term of employment.

Application for renewal must be made within 2 years

following the termination of the military service or related

education, training, or employment and shall include an

affidavit from the licensee of engagement.

(g) The Department shall provide reasonable care and due

diligence to ensure that each licensee under this Act is

provided with a renewal application at least 90 days prior to

the expiration date, but timely renewal or conversion of the

license prior to its expiration date is the responsibility of

the licensee.

(h) The Department shall not renew a license if the

licensee has an unpaid fine or fee from a disciplinary matter

or an unpaid fee from a non-disciplinary action imposed by the

Department until the fine or fee is paid to the Department or

the licensee has entered into a payment plan and is current on

the required payments.

(i) The Department shall not issue a license if the

applicant has an unpaid fine imposed by the Department for

unlicensed practice until the fine is paid to the Department

or the applicant has entered into a payment plan and is current

on the required payments.

(Source: P.A. 101-81, eff. 7-12-19; 102-20, eff. 1-1-22.)

(225 ILCS 458/15-15)

(Section scheduled to be repealed on January 1, 2027)

Sec. 15-15. Investigation; notice; hearing.

(a) Upon the motion of the Department or the Board or upon

a complaint in writing of a person setting forth facts that, if

proven, would constitute grounds for suspension, revocation,

or other disciplinary action against a licensee or applicant

for licensure, the Department shall investigate the actions of

the licensee or applicant. If, upon investigation, the

Department believes that there may be cause for suspension,

revocation, or other disciplinary action, the Department shall

use the services of a State certified general real estate

appraiser, a State certified residential real estate

appraiser, or the Real Estate Coordinator to assist in

determining whether grounds for disciplinary action exist

prior to commencing formal disciplinary proceedings.

(b) Formal disciplinary proceedings shall commence upon

the issuance of a written complaint describing the charges

that are the basis of the disciplinary action and delivery of

the detailed complaint to the address of record of the

licensee or applicant. For an associate real estate trainee

appraiser, a copy shall also be sent to the licensee's

supervising appraiser of record. The Department shall notify

the licensee or applicant to file a verified written answer

within 20 days after the service of the notice and complaint.

The notification shall inform the licensee or applicant of the

right to be heard in person or by legal counsel; that the

hearing will be afforded not sooner than 20 days after service

of the complaint; that failure to file an answer will result in

a default being entered against the licensee or applicant;

that the license may be suspended, revoked, or placed on

probationary status; and that other disciplinary action may be

taken pursuant to this Act, including limiting the scope,

nature, or extent of the licensee's practice. If the licensee

or applicant fails to file an answer after service of notice,

the respective license may, at the discretion of the

Department, be suspended, revoked, or placed on probationary

status and the Department may take whatever disciplinary

action it deems proper, including limiting the scope, nature,

or extent of the person's practice, without a hearing.

(c) At the time and place fixed in the notice, the Board

shall conduct hearing of the charges, providing both the

accused person and the complainant ample opportunity to

present in person or by counsel such statements, testimony,

evidence, and argument as may be pertinent to the charges or to

a defense thereto.

(d) The Board shall present to the Secretary a written

report of its findings of fact and recommendations. A copy of

the report shall be served upon the licensee or applicant,

either personally, by mail, or, at the discretion of the

Department, by electronic means. For associate real estate

trainee appraisers, a copy shall also be sent to the

licensee's supervising appraiser of record. Within 20 days

after the service, the licensee or applicant may present the

Secretary with a motion in writing for a rehearing and shall

specify the particular grounds for the request. If the accused

orders a transcript of the record as provided in this Act, the

time elapsing thereafter and before the transcript is ready

for delivery to the accused shall not be counted as part of the

20 days. If the Secretary is not satisfied that substantial

justice has been done, the Secretary may order a rehearing by

the Board or other special committee appointed by the

Secretary, may remand the matter to the Board for its

reconsideration of the matter based on the pleadings and

evidence presented to the Board, or may enter a final order in

contravention of the Board's recommendation. Notwithstanding a

licensee's or applicant's failure to file a motion for

rehearing, the Secretary shall have the right to take any of

the actions specified in this subsection (d). Upon the

suspension or revocation of a license, the licensee shall be

required to surrender the respective license to the

Department, and upon failure or refusal to do so, the

Department shall have the right to seize the license.

(e) The Department has the power to issue subpoenas and

subpoenas duces tecum to bring before it any person in this

State, to take testimony, or to require production of any

records relevant to an inquiry or hearing by the Board in the

same manner as prescribed by law in judicial proceedings in

the courts of this State. In a case of refusal of a witness to

attend, testify, or to produce books or papers concerning a

matter upon which the witness might be lawfully examined, the

circuit court of the county where the hearing is held, upon

application of the Department or any party to the proceeding,

may compel obedience by proceedings as for contempt.

(f) Any license that is revoked may not be restored for a

minimum period of 3 years.

(g) In addition to the provisions of this Section

concerning the conduct of hearings and the recommendations for

discipline, the Department has the authority to negotiate

disciplinary and non-disciplinary settlement agreements

concerning any license issued under this Act. All such

agreements shall be recorded as Consent Orders or Consent to

Administrative Supervision Orders.

(h) The Secretary shall have the authority to appoint an

attorney duly licensed to practice law in the State of

Illinois to serve as the hearing officer in any action to

suspend, revoke, or otherwise discipline any license issued by

the Department. The Hearing Officer shall have full authority

to conduct the hearing.

(i) The Department, at its expense, shall preserve a

record of all formal hearings of any contested case involving

the discipline of a license. At all hearings or pre-hearing

conferences, the Department and the licensee shall be entitled

to have the proceedings transcribed by a certified shorthand

reporter. A copy of the transcribed proceedings shall be made

available to the licensee by the certified shorthand reporter

upon payment of the prevailing contract copy rate.

(Source: P.A. 102-20, eff. 1-1-22.)

(225 ILCS 458/25-10)

(Section scheduled to be repealed on January 1, 2027)

Sec. 25-10. Real Estate Appraisal Administration and

Disciplinary Board; appointment.

(a) There is hereby created the Real Estate Appraisal

Administration and Disciplinary Board. The Board shall be

composed of the Coordinator and 10 persons appointed by the

Governor. Members shall be appointed to the Board subject to

the following conditions:

(1) All appointed members shall have been residents

and citizens of this State for at least 5 years prior to

the date of appointment.

(2) The appointed membership of the Board should

reasonably reflect the geographic distribution of the

population of the State.

(3) Four appointed members shall have been actively

engaged and currently licensed as State certified general

real estate appraisers for a period of not less than 5

years.

(4) Three appointed members shall have been actively

engaged and currently licensed as State certified

residential real estate appraisers for a period of not

less than 5 years.

(5) One appointed member shall hold a valid license as

a real estate broker for at least 3 years prior to the date

of the appointment and shall hold either a valid State

certified general real estate appraiser license or a valid

State certified residential appraiser license issued under

this Act or a predecessor Act for a period of at least 5

years prior to the appointment.

(6) One appointed member shall be a representative of

a financial institution, as evidenced by proof of

employment with a financial institution.

(7) One appointed member shall represent the interests

of the general public. This member or the member's spouse

shall not be licensed under this Act nor be employed by or

have any financial interest in an appraisal business,

appraisal management company, real estate brokerage

business, or a financial institution.

In making appointments as provided in paragraphs (3) and

(4) of this subsection, the Governor shall give due

consideration to recommendations by members and organizations

representing the profession.

In making the appointments as provided in paragraph (5) of

this subsection, the Governor shall give due consideration to

the recommendations by members and organizations representing

the real estate industry.

In making the appointment as provided in paragraph (6) of

this subsection, the Governor shall give due consideration to

the recommendations by members and organizations representing

financial institutions.

(b) The members' terms shall be for 4 years or until a

successor is appointed. No member shall be reappointed to the

Board for a term that would cause the member's cumulative

service to the Board to exceed 10 years. Appointments to fill

vacancies shall be for the unexpired portion of the term.

(c) The Governor may terminate the appointment of a member

for cause that, in the opinion of the Governor, reasonably

justifies the termination. Cause for termination may include,

without limitation, misconduct, incapacity, neglect of duty,

or missing 4 Board meetings during any one fiscal year.

(d) A majority of the Board members shall constitute a

quorum. A vacancy in the membership of the Board shall not

impair the right of a quorum to exercise all of the rights and

perform all of the duties of the Board.

(e) The Board shall meet at least monthly and may be

convened by the Chairperson, Vice-Chairperson, or 3 members of

the Board upon 10 days written notice.

(f) The Board shall, annually at the first meeting of the

fiscal year, elect a Chairperson and Vice-Chairperson from its

members. The Chairperson shall preside over the meetings and

shall coordinate with the Coordinator in developing and

distributing an agenda for each meeting. In the absence of the

Chairperson, the Vice-Chairperson shall preside over the

meeting.

(g) The Coordinator shall serve as a member of the Board

without vote.

(h) The Board shall advise and make recommendations to the

Department on the education and experience qualifications of

any applicant for initial licensure as a State certified

general real estate appraiser or a State certified residential

real estate appraiser. The Department shall not make any

decisions concerning education or experience qualifications of

an applicant for initial licensure as a State certified

general real estate appraiser or a State certified residential

real estate appraiser without having first received the advice

and recommendation of the Board and shall give due

consideration to all such advice and recommendations; however,

if the Board does not render advice or make a recommendation

within a reasonable amount of time, then the Department may

render a decision.

(i) Except as provided in Section 15-17 of this Act, the

Board shall hear and make recommendations to the Secretary on

disciplinary matters that require a formal evidentiary

hearing. The Secretary shall give due consideration to the

recommendations of the Board involving discipline and

questions involving standards of professional conduct of

licensees.

(j) The Department shall seek and the Board shall provide

recommendations to the Department consistent with the

provisions of this Act and for the administration and

enforcement of all rules adopted pursuant to this Act. The

Department shall give due consideration to such

recommendations prior to adopting rules.

(k) The Department shall seek and the Board shall provide

recommendations to the Department on the approval of all

courses submitted to the Department pursuant to this Act and

the rules adopted pursuant to this Act. The Department shall

not approve any courses without having first received the

recommendation of the Board and shall give due consideration

to such recommendations prior to approving and licensing

courses; however, if the Board does not make a recommendation

within a reasonable amount of time, then the Department may

approve courses.

(l) Each voting member of the Board may shall receive a per

diem stipend in an amount to be determined by the Secretary.

While engaged in the performance of duties, each member shall

be reimbursed for paid the necessary expenses.

(m) Members of the Board shall be immune from suit in an

action based upon any disciplinary proceedings or other acts

performed in good faith as members of the Board.

(n) If the Department disagrees with any advice or

recommendation provided by the Board under this Section to the

Secretary or the Department, then notice of such disagreement

must be provided to the Board by the Department.

(o) (Blank).

(Source: P.A. 102-20, eff. 1-1-22.)

Section 50. The Appraisal Management Company Registration

Act is amended by changing Sections 40, 47, and 67 as follows:

(225 ILCS 459/40)

Sec. 40. Qualifications for registration.

(a) The Department may issue a certification of

registration to practice under this Act to any applicant who

is qualified to do business in this State and applies to the

Department on forms provided by the Department, or through a

multi-state licensing system as designated by the Secretary,

pays the required non-refundable fees, is qualified to

transact business in this State, and provides the following:

(1) the business name of the applicant seeking

registration;

(2) the business address or addresses and contact

information of the applicant seeking registration;

(3) if the business applicant is not a corporation

that is domiciled in this State, then the name and contact

information for the company's agent for service of process

in this State;

(4) the name, address, and contact information for any

individual or any corporation, partnership, limited

liability company, association, or other business

applicant that owns 10% or more of the appraisal

management company along with a completed criminal history

records background check as required in Section 68;

(5) the name, address, and contact information for a

designated controlling person;

(6) a certification that the applicant will utilize

Illinois licensed appraisers to provide appraisal services

within the State of Illinois;

(7) a certification that the applicant has a system in

place utilizing a licensed Illinois appraiser to review

the work of all employed and independent appraisers that

are performing real estate appraisal services in Illinois

for the appraisal management company on a periodic basis,

except for a quality control review, to verify that the

real estate appraisal assignments are being conducted in

accordance with USPAP;

(8) a certification that the applicant maintains a

detailed record of each service request that it receives

and the independent appraiser that performs the real

estate appraisal services for the appraisal management

company;

(9) a certification that the employees of the

appraisal management company working on behalf of the

appraisal management company directly involved in

providing appraisal management services, will be

appropriately trained and familiar with the appraisal

process to completely provide appraisal management

services;

(10) an irrevocable Uniform Consent to Service of

Process, under rule; and

(11) a certification that the applicant shall comply

with all other requirements of this Act and rules

established for the implementation of this Act.

(b) Applicants have 3 years from the date of application

to complete the application process. If the process has not

been completed in 3 years, the application shall be denied,

the fee shall be forfeited, and the applicant must reapply and

meet the requirements in effect at the time of reapplication.

(Source: P.A. 100-604, eff. 7-13-18.)

(225 ILCS 459/47)

Sec. 47. Report Annual report; investigation; costs. Each

registrant shall provide annually file a report with the

Secretary for the calendar year period from January 1 through

December 31, giving relevant information as the Secretary may

reasonably require concerning, and for the purpose of

examination for compliance with federal and State regulations,

the business and operations during the preceding fiscal year

period of each registered appraisal management company

conducted by the registrant within the State. The Secretary

may, at any time, examine the books and records of an appraisal

management company operating in the State and require the

appraisal management company to submit reports, information

and documents. The report shall be made under oath and shall be

in the form prescribed by rule. The Secretary may, at any time,

investigate a registrant and every person, partnership,

association, limited liability company, corporation, or other

business entity who or which is engaged in the business of

operating an appraisal management company. For that purpose,

the Secretary shall have free access to the offices and places

of business and to records of all persons, firms,

partnerships, associations, limited liability companies and

members thereof, and corporations and to the officers and

directors thereof that relate to the appraisal management

company. The investigation may be conducted in conjunction

with representatives of other State agencies or agencies of

another state or of the United States as determined by the

Secretary. The Secretary may require by subpoena the

attendance of and examine under oath all persons whose

testimony the Secretary he or she may require relative to the

appraisal management company, and, in those cases, the

Secretary, or a designee of the Secretary representative whom

he or she may designate, may administer oaths to all persons

called as witnesses, and the Secretary, or a representative of

the Secretary, may conduct an audit, and there shall be paid to

the Secretary for each audit a fee, to be established by rule,

for each day or part thereof for each representative

designated and required to conduct the audit.

(Source: P.A. 100-604, eff. 7-13-18.)

(225 ILCS 459/67)

Sec. 67. Good moral character. If an applicant,

registrant, controlling person, or any person with an

ownership interest in of the applicant or registrant, has had

a license or registration revoked on a prior occasion, has

been found to have committed any of the practices enumerated

in Section 65, has been convicted of or entered a plea of

guilty or nolo contendere to forgery, embezzlement, obtaining

money under false pretenses, larceny, extortion, conspiracy to

defraud, or a similar offense or offenses, or has been

convicted of a felony involving moral turpitude in a court of

competent jurisdiction in this State or any other state,

district, or territory of the United States or of a foreign

country, the Department may consider the prior revocation,

conduct, or conviction in its determination of the applicant's

moral character of the applicant, registrant, controlling

person, or person with ownership interest and whether to grant

the applicant's registration or renewal. In its consideration

of the prior revocation, conduct, or conviction, the

Department shall take into account the nature of the conduct,

any aggravating or extenuating circumstances, the time elapsed

since the revocation, conduct, or conviction, the

rehabilitation or restitution performed by the applicant, and

any other factors that the Department deems relevant. When an

applicant, registrant, controlling person, or person with

ownership interest has made a false statement of material fact

on any his or her application, the false statement may in

itself be sufficient grounds to revoke or refuse to issue or

renew a registration.

(Source: P.A. 100-604, eff. 7-13-18.)

(225 ILCS 459/68 rep.)

Section 55. The Appraisal Management Company Registration

Act is amended by repealing Section 68.

Section 60. The Professional Limited Liability Company Act

is amended by changing Section 13 as follows:

(805 ILCS 185/13)

Sec. 13. Nature of business.

(a) A professional limited liability company may be formed

to provide a professional service or services licensed by the

Department except:

(1) the practice of dentistry unless all the members

and managers are licensed as dentists under the Illinois

Dental Practice Act;

(2) the practice of medicine unless all the managers,

if any, are licensed to practice medicine under the

Medical Practice Act of 1987 and each member is either:

(A) licensed to practice medicine under the

Medical Practice Act of 1987;

(B) a registered medical corporation or

corporations organized pursuant to the Medical

Corporation Act;

(C) a professional corporation organized pursuant

to the Professional Service Corporation Act of

physicians licensed to practice under the Medical

Practice Act of 1987;

(D) a hospital or hospital affiliate as defined in

Section 10.8 of the Hospital Licensing Act; or

(E) a professional limited liability company that

satisfies the requirements of subparagraph (A), (B),

(C), or (D);

(3) the practice of real estate unless all the members

and managers, if any, that actively participate in the

real estate activities of the professional limited

liability company or every member in a member-managed

company are licensed to practice as a managing broker or

broker pursuant to the Real Estate License Act of 2000.

All nonparticipating members or managers shall submit

affidavits of nonparticipation as required by the

Department and the Real Estate License Act of 2000;

(4) the practice of clinical psychology unless all the

managers and members are licensed to practice as a

clinical psychologist under the Clinical Psychologist

Licensing Act;

(5) the practice of social work unless all the

managers and members are licensed to practice as a

clinical social worker or social worker under the Clinical

Social Work and Social Work Practice Act;

(6) the practice of marriage and family therapy unless

all the managers and members are licensed to practice as a

marriage and family therapist under the Marriage and

Family Therapy Licensing Act;

(7) the practice of professional counseling unless all

the managers and members are licensed to practice as a

clinical professional counselor or a professional

counselor under the Professional Counselor and Clinical

Professional Counselor Licensing and Practice Act;

(8) the practice of sex offender evaluation and

treatment unless all the managers and members are licensed

to practice as a sex offender evaluator or sex offender

treatment provider under the Sex Offender Evaluation and

Treatment Provider Act; or

(9) the practice of veterinary medicine unless all the

managers and members are licensed to practice as a

veterinarian under the Veterinary Medicine and Surgery

Practice Act of 2004.

(b) Notwithstanding any provision of this Section, any of

the following professional services may be combined and

offered within a single professional limited liability company

provided that each professional service is offered only by

persons licensed to provide that professional service and all

managers and members are licensed in at least one of the

professional services offered by the professional limited

liability company:

(1) the practice of medicine by physicians licensed

under the Medical Practice Act of 1987, the practice of

podiatry by podiatric physicians licensed under the

Podiatric Medical Practice Act of 1987, the practice of

dentistry by dentists licensed under the Illinois Dental

Practice Act, and the practice of optometry by

optometrists licensed under the Illinois Optometric

Practice Act of 1987; or

(2) the practice of clinical psychology by clinical

psychologists licensed under the Clinical Psychologist

Licensing Act, the practice of social work by clinical

social workers or social workers licensed under the

Clinical Social Work and Social Work Practice Act, the

practice of marriage and family counseling by marriage and

family therapists licensed under the Marriage and Family

Therapy Licensing Act, the practice of professional

counseling by professional counselors and clinical

professional counselors licensed under the Professional

Counselor and Clinical Professional Counselor Licensing

and Practice Act, and the practice of sex offender

evaluation and treatment by sex offender evaluators and

sex offender treatment providers licensed under the Sex

Offender Evaluation and Treatment Provider Act; .

(3) the practice of architecture by persons licensed

under the Illinois Architecture Practice Act of 1989, the

practice of professional engineering by persons licensed

under the Professional Engineering Practice Act of 1989,

the practice of structural engineering by persons licensed

under the Structural Engineering Practice Act of 1989, and

the practice of land surveying by persons licensed under

the Illinois Professional Land Surveyor Act of 1989; or

(4) the practice of acupuncture by persons licensed

under the Acupuncture Practice Act, the practice of

massage by persons licensed under the Massage Licensing

Act, the practice of naprapathy by persons licensed under

the Naprapathic Practice Act, the practice of occupational

therapy by persons licensed under the Illinois

Occupational Therapy Practice Act, the practice of

physical therapy by persons licensed under the Illinois

Physical Therapy Act, and the practice of speech-language

pathology by persons licensed under the Illinois

Speech-Language Pathology and Audiology Practice Act.

(Source: P.A. 100-894, eff. 8-14-18.)

Section 99. Effective date. This Act takes effect upon

becoming law, except that Section 10 takes effect on October

1, 2023.

INDEX Statutes amended in order of appearance