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New law cuts red tape for real estate professionals, businesses; takes additional bill action
SPRINGFIELD — Gov. Bruce Rauner today signed legislation to reduce burdensome licensing requirements for real estate businesses. The new licensing program is expected to save the state money by reducing a duplicative and unnecessary licensure structure that provides no benefit to the public and discourages business creation and growth.
"House Bill 5210 is a win for small business and licensed professionals in Illinois," Rauner said. "It is another step forward in our goal of reducing the amount of red tape, paperwork, and regulatory burden that puts our business owners and our state at a disadvantage."
The bill was supported by the Illinois Department of Financial and Professional Regulation (IDFPR).
"On behalf of more than 47,000 realtors throughout Illinois, we support this effort and appreciated the opportunity to work with IDFPR in crafting and passing this legislation," said CEO of Illinois Realtors Association, Gary Clayton. "This is a sound policy initiative that will streamline the regulatory process for Illinois businesses."
Additionally, it clarifies that a licensed individual may establish a limited liability company to receive commissions directly, allowing them more flexibility in selecting a business entity that fits their needs. The new practice will also allow the individual to derive more favorable tax treatment than they would receive when operating as an individual.
"The licensing requirements for professionals in Illinois, especially those in the real estate field, are often times too burdensome and redundant," said State Senator Pamela Althoff, R-McHenry, who co-sponsored the bill. "In an effort to untangle some of the red tape in these processes, this bill no longer requires brokers to obtain a license from each branch of office they operate in, but instead they will only need one license and will simply just need to notify IDFPR of each office."
Finally, the legislation pushes back continuing education deadlines, establishes one basic standard for all business entities, simplifies the business entity license application, establishes common sense ownership requirements, and reduces barriers to industry.
"These reforms lower the cost of doing business in Illinois," said co-sponsor Representative Tom Demmer, R-Dixon. "We should look for more opportunities like this for state government to get out of the way of small business owners and grow our tax base."
The governor also signed House Bill 5502 removing an unnecessary testing requirement to encourage new real estate appraiser trainees to enter the industry. This will reduce a barrier to entry and increase labor market liquidity within the industry.
"The signing of HB 5502 is the first step in rebuilding the appraisal industry here in Illinois," said Representative Tony McCombie, R-Savanna, who sponsored the legislation. "Due to the increased costs of education and mandates those receiving licenses have continued to decline. I am pleased to have sponsored this bill and the signing of this legislation is a positive change for Illinois. HB 5502 will grow jobs and opportunities for people wanting to enter the real estate appraisal field."
The changes will reduce the regulatory burden on Illinois real estate related businesses and workers, while improving IDFPR operations.
As of April 2018, there were 1,195 active branch office licenses, according to the IDFPR.
The Governor also acted on the following bills:
Bill No.: HB 3784
An Act Concerning Education
Action: Signed
Effective: Immediately
Bill No.: HB 4288
An Act Concerning Military Service
Action: Signed
Effective: Jan. 1, 2019
Bill No.: HB 4472
An Act Concerning Transportation
Action: Signed
Effective: Jan. 1, 2019
Bill No.: HB 4514
An Act Concerning Education
Action: Amendatory Veto
Note: See Veto Message Below
Bill No.: HB 4515
An Act Concerning Regulation
Action: Amendatory Veto
Note: See Veto Message Below
Bill No.: HB 4752
An Act Concerning Human Rights
Action: Veto
Note: See Veto Message Below
Bill No.: HB 4710
An Act Concerning Education
Action: Amendatory Veto
Note: See Veto Message Below
Bill No.: HB 4908
An Act Concerning Education
Action: Signed
Effective: Jan. 1, 2019
Bill No.: HB 5057
An Act Concerning Transportation
Action: Signed
Effective: Jan. 1, 2019
Bill No.: HB 5210
An Act Concerning Regulation
Action: Signed
Effective: Jan. 1, 2019
Bill No.: HB 5502
An Act Concerning Regulation
Action: Signed
Effective: Jan. 1, 2019
Bill No.: SB 2274
An Act Concerning Revenue
Action: Signed
Effective: Jan. 1, 2019
Bill No.: SB 2278
An Act Concerning Local Government
Action: Signed
Effective: Jan. 1, 2019
Bill No.: SB 2303
An Act Concerning Local Government
Action: Signed
Effective: Immediately
Bill No.: SB 2638
An Act Concerning Local Government
Action: Signed
Effective: Immediately
Bill No.: SB 2667
An Act Concerning Revenue
Action: Signed
Effective: Immediately
Bill No.: SB 2940
An Act Concerning Local Government
Action: Signed
Effective: Jan. 1, 2019
Bill No.: SB 3131
An Act Concerning Regulation
Action: Signed
Effective: Immediately
Veto Message for HB 4514
To the Honorable Members of
The Illinois House of Representatives,
100th General Assembly:
Today, I return House Bill 4514 with specific recommendations for change.
This legislation would provide additional unnecessary bureaucracy concerning the use of the title "school counselor." School counselors already have a certification available, and schools already have the power to hire whom they choose for these positions. I share the concerns of the Obama Administration that this sort of new restriction on professional certification and licensing will only serve to lock the economically disenfranchised out of the labor market. Because of these concerns, both the necessity and impact of this change should be thoughtfully studied further before potentially adding new layers of regulatory mandates.
Therefore, pursuant to Section 9(e) of Article IV of the Illinois Constitution of 1970, I hereby return House Bill 4514, entitled "AN ACT concerning education", with the following specific recommendations for change:
On page 1, by replacing line 22 with: "requirements of this Section."; and
On page 1, by replacing line 23 with the following:
"The Illinois Department of Employment Security shall conduct a study and issue a report authored by a labor market economist that studies the labor market impacts of title protection of the school counselor profession. The study and report shall specifically examine the effects of requiring this certification on the historically economically disenfranchised and the potential for mandatory certification to act as a barrier to labor market mobility for women, minorities, the poor, veterans, and long-term unemployed. IDES shall publish the report by January 31st, 2019".
With these changes, House Bill 4514 will have my approval. I respectfully request your concurrence.
Sincerely,
Bruce Rauner
GOVERNOR
Veto Message for HB 4515
To the Honorable Members of
The Illinois House of Representatives,
100th General Assembly:
Today, I return House Bill 4515 with specific recommendations for change. This legislation creates a number of resources to advise and educate state regulatory bodies and the public on the evolving research and best practices concerning Lyme disease prevention and treatment. These important initiatives will address this growing public health concern and equip Illinoisans and health care professionals with the best possible information as it becomes available.
However, the bill also creates a disciplinary exemption for physicians who prescribe experimental treatments for Lyme disease or other tick-borne illnesses, including the prescription of long-term antibiotic treatment. This exemption from the Department of Financial and Professional Regulation's disciplinary oversight of physicians is very concerning. It shields physicians from discipline for prescribing a therapy that rigorous scientific research has been found to be harmful and even fatal. Importantly, this is a treatment that the medical community, including the U.S. Center for Disease Control and the Infectious Disease Society of America, do not recommend.
I appreciate the intent and hard work of those advocating for change on this issue. Therefore, I have instructed the Illinois Department of Public Health and the Illinois Department of Financial and Professional Regulation to enact all aspects of this bill but for those that exempt physicians from medical discipline.
In order to promote prevention and awareness of Lyme disease, the Illinois Department of Public Health shall enact the following:
(1) Establish the Lyme Disease Task Force consistent with the membership, duties, and responsibilities set forth in this bill;
(2) Create a designated webpage with publicly accessible and up-to-date information about the prevention, detection, and treatment of Lyme disease;
(3) Announce government guidance and recommendations of the federal Centers for Disease Control and Prevention, National Guideline Clearinghouse under the Department of Health and Human Services, and any other persons or entities determined by the Lyme Disease Task Force to have particular expertise on Lyme disease;
(4) Share information for physicians, other health care professionals and providers, and other persons subject to an increased risk of contracting Lyme disease;
(5) Make public educational materials on the diagnosis, treatment, and prevention of Lyme disease and other tick-borne illnesses for physicians and other health care professionals and providers in multiple formats; and
(6) Publicize peer-reviewed scientific research articles.
Therefore, pursuant to Section 9(e) of Article IV of the Illinois Constitution of 1970, I hereby return House Bill 4515, entitled "AN ACT concerning regulation," with the following specific recommendations for change:
By deleting page 8, line 6 through page 24, line 12.
With these changes, House Bill 4515 will have my approval. I respectfully request your concurrence.
Sincerely,
Bruce Rauner
GOVERNOR
Veto Message for HB 4572
August 13, 2018
To the Honorable Members of
The Illinois House of Representatives,
100th General Assembly:
Today I veto House Bill 4572 from the 100th General Assembly, which expands the definition of "employer" for certain types of employment discrimination to impose further liability on Illinois small businesses.
The Illinois Human Rights Act prohibits unlawful discrimination in employment in Illinois, and, in most instances, applies to employers with 15 or more employees. This 15-employee threshold mirrors the federal definition of employer in Title VII of the Civil Rights Act, the Americans with Disabilities Act, and other anti-discrimination statutes enforced by the U.S. Equal Employment Opportunity Commission. This longstanding and well-reasoned threshold balances the need to foster fair, equitable and harassment-free workplaces across the State with the lopsided burden that discrimination claims impose upon small businesses and startups, in comparison to large organizations with in-house compliance, human resources, risk management, and litigation defense functions.
Additionally, for claims of disability, pregnancy, or sexual harassment, the Illinois Human Rights Act already covers employers who employ only one or more individuals. This administration has worked diligently to enhance awareness of sexual harassment and gender bias and to reform the investigation and adjudication of violations in this area. I signed Senate Bill 402, which declares that sexual harassment is unethical in Illinois for State officials and employees. It also required that registered lobbyists undertake sexual harassment prevention training. Executive Order 2018-02 mandated expedited sexual harassment investigations within State agencies and recognized the uniquely cultural and diverse issues that underscore our understanding of sexual harassment. And Executive Order 2018-08 requires a comprehensive reform of the adjudication of all anti-discrimination cases before the Illinois Department of Human Rights and Illinois Human Rights Commission to generate better and faster decisions for parties.
Moving away from federal best practices and Illinois' own current practices will discourage business creation, while maintaining greater consistency with this standard provides small businesses with predictability in their compliance efforts, and recognizes the distinct challenges that liability may pose for them.
Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return House Bill 4572, entitled "AN ACT concerning human rights," with the foregoing objections, vetoed in its entirety.
Sincerely,
Bruce Rauner
GOVERNOR
Veto Message for HB 4710
To the Honorable Members of
The Illinois House of Representatives,
100th General Assembly:
Today, I return House Bill 4710 with specific recommendations for change that will improve the productivity of the proposed College Student Credit Card Marketing and Debt Task Force tasked with garnering relevant college student credit card debt information.
Student credit card debt is an issue of great importance to our young adult population and deserves further attention by a body that can examine its root causes and effects. However, I am concerned that the Task Force proposed by this legislation is ill-suited to properly study student credit card debt and debt in general.
The legislation as presented will set the Task Force up for failure instead of empowering it as it looks into this important issue. The Illinois Department of Financial and Professional Regulation has limited authority over most major credit card issuers, and these entities may refuse to turn over information to an Illinois task force. Furthermore, even within Illinois financial institutions, the proprietary nature of credit card information limits the accessibility of the information. Mandating the contours of the Task Force's inquiry to the current level of specificity could lead the group's report to be partial or inconclusive. Illinois should not proceed with a Task Force that will likely both produce an incomplete study and be burdensome on the participants' and the Department's time and resources.
Instead, Illinois should proceed with a Task Force that provides the flexibility and expertise to scrutinize appropriate informational sources that can contribute to better understand what can be done to mitigate the accumulation of student credit card and student debt in general.
The following changes are needed to promote productivity and usefulness of information gathered by the Task Force. The first change will add a representative of a credit card issuer to the Task Force. The second change provides the Task Force with the latitude to select which factors provide the most useful information for the study, including the addition of categories related to the Credit Card Marketing Act of 2009, college credit card agreements and the consumer credit card market. Finally, this amendment will adopt a more realistic timeline for filing its report with the Illinois General Assembly on this laudable issue.
Therefore, pursuant to Section 9(e) of Article IV of the Illinois Constitution of 1970, I hereby return House Bill 4710, entitled "AN ACT concerning education," with the following recommendation for change:
On page 1, by inserting immediately after line 22 the following:
"(4) there is value to the citizens of Illinois in investigating the availability and accessibility of information provided by credit card issuers to better understand factors in the accumulation of student credit card debt and factors mitigating the amount of credit card debt a student faces after graduating."; and
On page 2, by replacing line 26 with "designee;"
On page 3, by replacing line 3 with: "designee; and"
On page 3, by inserting immediately after line 3 : "(9) a representative of a credit card issuer."; and
On page 3, by replacing lines 18 and 19 with: "(e) The Task Force shall conduct a study that may examine any of the following factors as determined to be necessary and available by the Task Force:"; and
On page 5, by inserting immediately after line 13 the following:
"(15) Agreements between credit card issuers and higher education institutions or organizations affiliated with the institutions, including, but not limited to, trends, the number of credit card accounts covered by the agreement, the number of new accounts opened by year end under the agreement, the number of payments made by the issuer to the institution or organization during the year, and any Memorandum of Understanding between the issuer and institution or affiliated organization that directly or indirectly relates to any aspect of the agreement.
(16) Evaluation of the effectiveness of the Credit Card Marketing Act of 2009.
(17) Other state actions taken to address the marketing of credit cards to students and the accumulation of student credit card debt.
(18) Other factors the Task Force deems relevant regarding student credit card debt within the consumer credit card market."; and
On page 5, by replacing line 20 with: "14, 2019, at which time the Task Force shall be dissolved. This"; and
On page 5, by replacing line 25 with: "(g) This Section is repealed on January 1, 2020."
With these changes, House Bill 4710 will have my approval. I respectfully request your concurrence.
Sincerely,
Bruce Rauner
GOVERNOR
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