March 22, 2024 State Capitol Report

Both the House and Senate returned to Springfield for only two days of session following the primary election Tuesday night. Almost zero floor action took place in either chamber and all legislation being considered for this year is still being discussed and worked on in committee hearings. The Illinois REALTORS® Legislative Team was actively involved in over 65 bills that were up for consideration in committees Tuesday and Wednesday. Even though it was only for two days, with the large number of bills, meetings, and negotiations, it was once again a very busy week for your State Legislative Team. Below are the highlights of our Bills of Interest.

Bills of Interest

The following saw legislative action in committee this week.

HB 5551 passed the House Labor and Commerce Committee on Thursday – Previously reported as SB 3740.

The Illinois REALTORS® Legal and Legislative Teams were heavily involved in several amendments within the Real Estate License law, with the biggest being the changes being made to “Brokerage agreements.” Current language states that a “broker agreement” means “a written or an oral agreement between a sponsoring broker and a consumer for licensed activities or the performance of future licensed activities to be provided to a consumer in return for compensation or the right to receive compensation from another. The amended language will strike both written and oral to help avoid confusion, alleviate concerns around “oral agreements” and will mandate that “ALL brokerage agreements SHALL be in writing and may be exclusive or non-exclusive.”

Making the changes to the “Broker agreement” also required the need to define “Non-exclusive brokerage agreement” which now is defined as: a written brokerage agreement that provides that the sponsoring broker has the non-exclusive right, through one or more sponsored licensees, to act as an agent or representative of the client for the performance of licensed activities.”

Other changes to RELA to be aware of:

  • Managing Brokers only required to take state portion of the exam.
  • Clarifying that the pre-license education is valid for two years after completing the entire requirement. There has been confusion on when the two years starts because there can be multiple courses that meet the full requirement and are sometimes taken at different times.
  • Clarification for non-resident offices.
  • Changing “Board” to “Department” because at this point in the process it is the Department taking consideration not the Board, the Board weighs in later in the process.
  • Automatic repeal date to Jan. 1, 2026 for the transition from Reciprocity to Endorsement due to the fact that an endorsement course needs to be developed by education providers.
  • New language for written agreements provides for independent contractor relationships.
  • It is a violation to not have brokerage agreements in writing.
  • Clean up language regarding confidentiality requirements as citations are considered non-public discipline.
  • Clean up language to allow for due process.
  • Recovery fund changes.
  • Changed the name of the scholarship form Minority to Diversity.
  • Adding the option of a virtual office for education providers who does not conduct classroom courses, regarding due process.

This bill replaces the Retaliatory Eviction Act with the Landlord Retaliation Act to prohibit a landlord from knowingly terminating a tenancy, increasing rent, decreasing services, bringing or threatening to bring a lawsuit against a tenant for possessing or refusing to renew a lease or tenancy because the tenant has in good faith has taken certain actions, including but not limited to: (i) complaining of code violations applicable to the premises to the relevant governmental agency responsible for enforcement of a building, housing, health, or similar code; (ii) complaining of a building, housing, health or similar code violation, or an illegal landlord practice to a community organization or the news media; or (iii) complaining or requesting the landlord to make repairs to the premises as required by a building code, health ordinance, other regulation or the residential rental agreement. Creates remedies for violation by a landlord including damages, punitive damages or recovering possession of the premises. Creates an affirmative defense under the Code of Civil Procedure in eviction actions if a landlord violates the Act. This bill is an initiative of the Chicago Coalition for the Homeless.  Illinois REALTORS® is currently negotiating with the sponsor and the Chicago Coalition for the Homeless to address specific provisions and the penalties and remedy sections of the bill. The bill moved to Second Reading on Thursday, with the commitment to continue to work on our issues in the attempt come to an agreement.

This bill amends the Homeowners’ Energy Policy Statement Act to prohibit homeowners’ associations, common interest community associations, or condominium unit owners’ association from prohibiting the installation of a rainwater collection system or composting system. This bill moved to Second Reading. Illinois REALTORS® is neutral.

This bill amends the Common Interest Community Association Act by providing that no adopted budget or any separate assessment adopted by the board shall result in the sum of all regular and separate assessments payable in the current fiscal year exceeding 105% (currently 115%) of the sum of all regular and separate assessments payable during the preceding fiscal year. The bill moved to Second Reading. Illinois REALTORS® is neutral.

This bill Amends the Home Equity Assurance Act. In provisions authoring a governing commission with no less than $4 million in its guarantee fund to establish a Low Interest Home Improvement Loan Program, provides that the loan may be used for repair or maintenance of a guaranteed residence’s water and sewer pipes and repair of a guaranteed residence, including, but not limited to basement repairs, following flooding damage or other natural disaster damage to the property (rather than following flooding damage to the property). Provides that a commission may use loan funds to issue a grant or rebate for repairs, maintenance, remodeling, alteration or improvement of a guaranteed residence for purposes of preventing or repairing damage because of a natural disaster, including, but not limited to, flooding.  This is a program that has been in existence for several years in certain areas of Chicago.  The bill moved to Second Reading.  Illinois REALTORS® is neutral.

This bill prohibits a landlord from charging a prospective tenant an application screening fee if the prospective tenant provides a reusable tenant screening report that meets the following criteria: (i) the report was prepared within the previous 30 days by a consumer credit reporting agency at the request and expense of a prospective tenant; (ii) the report is made directly available to a landlord for use in the rental application process or is provided through a third-party website that regularly engages in the business of providing a reusable tenant screening report and complies with all state and federal laws pertaining to use and disclosure of information contained in a consumer report by a consumer credit reporting agency; and (iii) the report is available to the landlord at no cost to access or use.  The bill was passed out of the Housing Committee and is on Second Reading.  Illinois REALTORS® is currently neutral, with an amendment expected.

This bill replaces the term “seal” with “impound.” It is an initiative of the Chicago Bar Association.  Illinois REALTORS® has voiced their concerns with the legislative intent. The bill is considered a “technical change” of a legal definition within existing Illinois statute. Illinois REALTORS® is working with the sponsor to clarify the intent and the possible implications of this bill and currently is neutral. HB 5023 passed out of the Housing Committee and was placed on Second Reading. More discussion on this legislation is expected from several organizations.

This bill creates the Summary of Rights for Safer Homes Act. It requires the Illinois Department of Human Rights to create a summary form advising tenants who have suffered domestic violence or sexual violence of the rights that they have under Illinois law to have safe housing. It requires landlords to attach a copy of the summary as the first page of any written residential lease entered with a tenant.  This bill is identical to SB 3652 sponsored by Sen. Peters and moved to Third Reading in the Senate.  The House Bill moved to Second.  Both sponsors have agreed to amend their bills (at Illinois REALTORS®’ suggestion) to change the effective date to Jan. 1, 2026.  With the amendment, Illinois REALTORS® is neutral.

This bill amends the Energy Efficient Building Act to provide that the Capital Development Board shall adopt specified provisions into the Illinois Energy Conservation Code concerning insulation in an unvented attic and an unvented enclosed rafter assembly.  This bill moved to Third Reading in the Senate.  Illinois REALTORS® is neutral.

This bill amends the Illinois Human Rights Act by extending the date to file a charge from 300 calendar days to three years for an alleged violation under the Act. Illinois REALTORS® voiced its concern regarding “punitive damages” and an amendment was filed to remove that section and to exempt real estate transactions.  With real estate transactions being exempted from this bill, Illinois REALTORS® is neutral.

Next Week At-A-Glance

Both Chambers will take a break next week before the House returns on April 2. April 5 is the deadline for House bills to make it out of committee to be consider during this session. The Senate will not return until April 9.  With no session next week, the next edition of the State Capitol Report will be released Friday, April 5. Until then … stay tuned.

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