March 8, 2024 State Capitol Report

The House and Senate were both in Springfield this week for three days of session. With the March 19 primary right around the corner, there have been very few days where attention has been on legislation being deciding on the floor in either chamber. Only one day in each chamber saw considerable floor action and that was due to heavy debate regarding legislation that would change the Chicago School Board District election process. With little floor action, our focus has been committee hearings and negotiating. Your Illinois REALTORS® Legislative Team had more than 60 bills posted to be heard in committee this week, several of which are listed at the end of the report. Below are the bills of interest that moved this week.

Bills of Interest

The following “Bills of Interest” saw legislative action in committee this week.

SB 3740 passed out of the Senate Licensed Activities Committee on Wednesday on the “Agreed Bill List” and will be favorably sent to the Senate floor.

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.” Currently 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 Broker’s only required to take state portion of the exam.
  • Clarifying that the pre-license education is valid for 2 years after completing the entire requirement. There has been confusion on when the 2 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 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 agreement provides for an independent contractor relationship.
  • Making it a violation not to have a brokerage agreement 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 EP that does not conduct classroom courses, regarding due process.

This bill creates the Summary of Rights for Safer Homes Act to require 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 that provide protection in their ability to have safe housing. Requires landlords to attach a copy of the summary as the first page of any written residential lease entered into with a tenant.  Per Illinois REALTORS® suggestion, the bill clearly states that the responsibility of drafting and distribution is solely on the Illinois Department of Human Rights, counties and municipalities as well as changing the effective date to Jan. 1, 2026 allowing time for contracts to reflect the new law. The bill is expected to be brought back to the Senate Judiciary Committee on Tuesday, March 12 with the agreed amendments. Illinois REALTORS® is neutral.

This bill amends the Rental Property Utility Service Act to provide that a municipality may request the formula used by the landlord or condominium or common interest community association for allocating the public utility payments among the unit owners. The bill passed out of committee and is on Second Reading in the House. An amendment is expected to be heard again in committee to address concerns in the language regarding formulas for providing utility usage. The amendment will remove opposition from multiple organizations, including the REALTORS®. Illinois REALTORS® is neutral with the amendment. 

This bill amends the Landlord and Tenant Act to require a landlord to disclose all nonoptional fees in the lease agreement. Requires that the sum of rent and all nonoptional fees must be described as the Total Monthly Payment and be listed on the first page of the lease. Illinois REALTORS® has asked for clarification on if this bill will affect emergency or necessary maintenance costs, as well as an extension of the effective date. The sponsor has agreed to add any language that would address our concerns. Currently Illinois REALTORS® is neutral on the bill.

In response to a recent court decision, the bill creates the Wetlands and Small Streams Protection Act to restore protections for wetlands and small streams that were formerly protected from pollution and destruction by the Clean Water Act. Numerous organizations have strong opposition to the bill and a amendment is expected back in committee. Your Illinois REALTORS® Legislative Team is monitoring this legislation for private property concerns.

Highlight of Bills in Committee

The following are bills that the Illinois REALTORS® Legislative Team are currently involved in either negotiations or amendments.

This bill amends the Mechanics Lien Act by removing language providing for notice by a subcontractor for an owner-occupied single-family from a provision regarding notice by a contractor for an owner-occupied single-family. This bill was introduced at the suggestion of the Illinois State Bar Association. Illinois REALTORS® is neutral. The bill advanced to Second Reading. 

This bill creates the Landlord Retaliation Act. Sen. Villa has an identical bill in the Senate. Currently Illinois REALTORS® Governmental Affairs team is negotiating with the Chicago Coalition for Homelessness. 

This bill amends EPA Act by deleting a provision that requires a Clean Air Act Permit Program (CAAPP) permit to contain a provision which creates an emergency-related affirmative defense if certain requirements are met.  Illinois REALTORS® is monitoring this legislation.

This bill amends the Condominium Property Act to mandate condominium associations adopt policy to reasonably accommodate a unit owner who is a person with a disability who requires an accessible parking space to ensure that person has access to the building and parking space. The bill is expected to be amended to not apply to residential condos. Illinois REALTORS® is neutral on this bill that remained in the Senate Judiciary/Civil Committee.

This bill amends the Historic Preservation Act by creating the State Historic Preservation Board. Illinois REALTORS® is monitoring this legislation that remained in the Senate State Government Committee.

This bill amends the Consumer Legal Funding Act to provide that a consumer legal funding may be refinanced as authorized by rule. The bill has moved to Second Reading in the Senate. Illinois REALTORS® is monitoring this legislation.

This bill creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a municipality larger than 500,000 by ordinance after petition by property owners, creation of a district plan, notice, and hearings. Illinois REALTORS® supports this legislation which moved to Second Reading.

This bill provides that process may (rather than shall) be served by a sheriff, or if the sheriff is disqualified, by a coroner of some county of the state. Illinois REALTORS® is neutral.

This bill creates the Government Contract Retainage Act. Defines terms, including that “retainage” means a portion of money withheld from the payment of a contract for a specified period to ensure that a contractor or subcontractor finishes a construction project completely and finishes in the manner specified in the contract. Illinois REALTORS® is monitoring this bill closely.

This bill amends the Mobile Home Park Act to provide that operating a mobile home park without a current license shall result in a fine of $10 per day per site. Illinois REALTORS® is watching this bill.

This bill provides that no landowner or agent of the landowner, third party land manager, or certified prescribed burn manager shall be liable for damage, injury, or loss caused by a prescribed burn or resulting smoke of a prescribed burn conducted under an approved prescription unless the landowner, agent, third party or certified burn manager is proven to be grossly negligent. Illinois REALTORS® is monitoring this legislation.

This bill creates the Digital Voice and Likeness Protection Act. Sen. Edly-Allen has an identical bill in the Senate. Provides that a provision in an agreement between an individual and any other person for the performance of personal or professional services is contrary to public policy and is deemed unenforceable if the provision meets all the prescribed conditions. Illinois REALTORS® is monitoring this legislation.

This bill creates the Digital Forgeries Act. Provides that an individual depicted in a digital forgery has a cause of action against any person who, without the consent of the depicted individual, knowingly distributes a digital forgery, creates a digital forgery with intent to distribute, or solicits the creation of a digital forgery. Illinois REALTORS® is monitoring this legislation.

This bill requires all manufactured home manufacturers to supply a weather radio in each manufactured home built after 2023. Illinois REALTORS® is monitoring this legislation.

This bill creates the Homeowners’ Association Bill of Rights Act. Requires the Office of the Attorney General to establish a separate HOA Department within the Consumer Protection Division. Illinois REALTORS® is watching this legislation that is in the Housing Committee.

This bill creates the Climate-Safe Affordable Housing Act to bring together many agencies to study and make recommendations for creating climate safe affordable housing. Illinois REALTORS® is watching this bill which is in the Housing Committee.

This bill creates the Native Language Transparency Act. Requires the translation into a language other than English in the requester’s native language of a lease, real estate contract, mortgage, or real estate disclosure document if the tenant, lessee, mortgagor, or purchaser so requests. Provides that if the landlord, lessor, mortgagee, or seller refuses to provide a translation, this Act allows the tenant, lessee, mortgagor, or purchaser to void the lease, contract, or mortgage and seek actual damages. This bill remains in the House Immigration committee. Illinois REALTORS® has concerns with this legislation and plans to work with the sponsor on these concerns.

This bill requires every landlord to clearly disclose to each of the landlord’s tenants in writing prior to signing the lease for the rental property that a rental property is located in the Federal Emergency Management Agency (FEMA) Special Flood Hazard Area and if the landlord has actual knowledge that the rental property or any portion of the parking areas of the real property containing the rental property has been subjected to flooding and the frequency of such flooding. Illinois REALTORS® is working to amend this legislation that was held in the Senate Judiciary/Civil Committee this week.

This bill requires every landlord who leases a lower-level unit that has flooded at least once in the last 10 years to maintain flood insurance on the rental property that covers both the building and the contents of the building, including the personal property of tenants. Provides that if a landlord fails to maintain flood insurance, and flooding occurs that results in damage to the tenant’s personal property, affects the habitability of the leased property, or affects the tenant’s access to the leased property, the tenant may: (1) terminate the lease by giving written notice to the landlord no later than the 30th day after the flood occurred and the landlord shall return all rent and fees paid in advance no later than the 15th day after the tenant gave notice; and (2) bring an action against the landlord of the property to recover damages for personal property lost or damaged as a result of flooding. Illinois REALTORS® is working to amend this legislation that was held in the Senate Judiciary/Civil Committee this week.

This bill changes the title of the Exotic Weed Act to the Illinois Exotic Weeds Act and allows the Illinois Department of Natural Resources (DNR) to move statutory provisions to administrative rules which will allow DNR to compile and keep current a list of exotic weeds and to issue permits to buy, sell, offer for sale, distribute, or plant seeds, plants, or plant parts of exotic weeds. Illinois REALTORS® is neutral.

This bill defines “ICC/ANSI A117.1”, in the Environmental Barriers Act as meaning either of the two most recent editions of the International Code Council/American National Institute Standard A117.1 (“Accessible and Usable Buildings and Facilities”). Rep. Cassidy has an identical bill in the House. Provides that no public facility may be constructed or altered, and no multi-story housing may be constructed or altered (rather than only constructed) without the statement of an architect registered in the State of Illinois that the plans for the work to be performed comply with the provisions of the Act and the Code promulgated under the Act unless the cost of such construction or alteration is less than $50,000. In working with the City of Chicago’s Planning Department and the senator, Illinois REALTORS® is neutral. Neither bill was heard in committee this week.

This bill requires the state or the unit of local government in which the application of a pesticide to a public right of way is to be made to provide notice of the application to residents within 200 feet (rather than the certified applicator to provide notice of the application to residents within 200 feet). This bill was held in committee. Illinois REALTORS® is watching this legislation.

This bill requires specified counseling when accepting a mortgage loan. Illinois REALTORS® is neutral on this bill that was held in committee.

This bill amends the Condominium Property Act to prohibit directors from voting by proxy or by secret ballot at board meetings with the exception that secret ballots may be used in the election of officers. Many concerns have developed over this bill, which is not expected to move further in this session.

Next Week At-A-Glance

Both the House and Senate will be in session and legislators will be focused on the March 15 Senate deadline for bills to make it out of committee if they want to be considered during this session. Your Illinois REALTORS® Legislative Team will be concentrating on an several key issues next week, including:

  • Permanently prohibiting municipalities and counties from enforcing crime-free housing programs.
  • Prohibiting “Just Housing” tenant screening process becoming statewide mandate
  • Re-Establishing the “First-Time Homebuyer Saving Account”

We anticipate a few of these bills to be heard in committees as early as next week. As you can see next week is already shaping up to be another busy week in Springfield, so make sure you STAY TUNED for the latest in legislative action.

DON’T MISS OUT

Please register now for the upcoming REALTORS® Capitol Conference where your voice will be heard loudly by your presence.

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