State Capitol Report

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  • The month of March is one of the busiest months in the General Assembly calendar. Each Friday of March this year marks a critical deadline for the respective chambers. March 5th- Senate Committee hearing deadline; March 12th– House Committee hearing deadline; March 19th- Senate final passage (Third Reading) deadline of SBs; March 26th- House final passage (Third Reading) deadline of HBs.
     
  • The General Assembly was in session Tuesday, Wednesday and Thursday this week as both chambers spent long hours in various committee hearings. The Senate had originally scheduled session for Friday since that date was the chamber’s committee hearing deadline but cancelled the session day since they wrapped up business on Thursday.
     
  • On Tuesday, the Senate Judiciary Committee unanimously approved IAR’s legislative initiative Senate Bill 3747 and sent the bill to the full Senate for consideration. As you are aware, this bill creates the Transfer Fee Covenant Act. The concept of these private transfer fees is that a covenant is recorded on property that requires future buyers or sellers to pay a transfer fee to whoever is designated in the covenant on all future transfers. These covenants set a dangerous precedent in attempting to establish a new estate in real property separate and apart from any possessory interest in the real property. SB 3747 declares these transfer fee covenants to be invalid and against public policy. SB 3747 is sponsored by Senators A.J. Wilhelmi, Kirk Dillard and Dale Righter.
     
  • Thanks to all who continued to send emails this week to your Senator urging a NO VOTE on Senate Bill 3001 which is currently pending on the Senate floor. SB 3001, sponsored by Senator Susan Garrett seeks to grant counties the authority to increase the cost of recording real estate related documents with proceeds to be used for a county defined “affordable housing program”. The IAR feels a case has not been made for this program and we are STRONGLY opposed to giving authority to a county to impose yet another fee on property owners WITHOUT VOTER APPROVAL. The bill grants a county board the authority to impose a charge that begins at $5 in 2010 and 2011 which can be increased up to $10 after 2019. While over 2,600 REALTORS have already responded to the Call to Action it is important that YOU do so as well! Please log on to the IAR website-Government Affairs-IAR Action Center and follow the prompts to make your voice heard!
     
  • Testimony was taken this week in the House Business and Occupational Licenses Committee on House Bill 5071. This bill, an initiative of the Homebuilders Association is STRONGLY OPPOSED by the IAR. HB 5071 deletes the “regular employee” definition within the Real Estate License Act. As you are aware, the Real Estate License Act has always had a provision exempting an individual or entity that is selling or leasing its own property from needing a license to do so. This exemption had included the “regular employees” of such owner or lessor. However, this limitation had never been clearly defined and the regulating agency, the Illinois Department of Financial and Professional Regulation sought clarity in the meaning of the term, and so a definition was added to the rewrite approved by the General Assembly in the 2009 session. This is a significant consumer protection issue and we will vigorously OPPOSE this legislation to remove the definition. This bill is sponsored by Representative Bill Black and has been scheduled for a second hearing in the Committee next Wednesday.
     
  • The IAR Leadership Team appointed a special Task Force of members to review various legislative proposals introduced this session dealing with valuation of foreclosures and short sales properties. One of the bills, Senate Bill 3334 was approved this week by the Senate Revenue Committee along with an amendment suggested by the IAR. As approved, the bill amends three sections of the Property Tax Code to reference these properties in the assessment process. The IAR is grateful to the efforts of Senator Chris Lauzen to address this important issue and to attach language suggested by the IAR to the bill. SB 3334, sponsored by Senators Chris Lauzen, Carole Pankau and Toi Hutchinson, is SUPPORTED by the IAR.
     
  • The House Judiciary Committee heard testimony and advanced to the floor House Bill 5523. This bill, sponsored to Representative Karen Yarbrough, is STRONGLY OPPOSED by IAR in its current form. The bill amends the eviction section of the Code of Civil Procedure to provide an affirmative defense to an eviction to a victim of domestic violence. The IAR is concerned that the legislation as drafted extended the affirmative defense to criminal and other activity beyond the stated intent of the legislation. Work will continue on this legislation.
     
  • A legislative initiative from the Illinois Department of Public Health was stopped this week after IAR and other interested parties met with the sponsor, Senator Mike Jacobs to express our OPPOSITION. The legislation sought to dramatically change the Asbestos Abatement Act within the Illinois School Code to address commercial and public buildings- despite the fact that there is a separate law that regulates activities in those buildings. Senate Bill 2572 would have allowed the Department of Public Health to order the evacuation and sealing of commercial and public buildings, the immediate suspension of licensed persons involved in improper removal of asbestos, and the authority to order persons to immediately cease activities--ALL WITHOUT NOTICE OR HEARING. Commercial and public buildings are defined as the interior space of any building including, but not limited to industrial and office buildings, residential apartment buildings and condominiums of 10 or more dwelling units, government owned buildings, colleges, museums, airports, hospitals, churches, schools, preschools, stores, warehouses, and factories. Interior space would also include exterior hallways connecting buildings, porticos, and mechanical systems used to condition interior space. The bill also added new criminal penalties to the Act. It was troubling that this proposal granted Public Health such sweeping powers since their regulatory statute is intended to only license and regulate persons/firms who perform asbestos inspection and abatement work. The IEPA is the agency delegated powers for regulation of asbestos during demolition, renovation and disposal. This legislation, if it had been advanced, would have created confusion and duplicative and overreaching regulatory powers. The IAR is appreciative of Senator Jacobs’ understanding of our concerns.
     
  • The Senate Judiciary Committee this week heard testimony and advanced Senate Bill 2985 and Senate Bill 3374 to the Senate floor so that negotiations can continue on these bills regarding title insurance. The bills deal with the responsibilities of and relationships between title insurance companies and agents and deal with other matter title insurance regulatory matters. The IAR has concerns regarding the proposals- one of which is an initiative of the title insurance industry (SB 3374) and one is an initiative of the IDFPR (SB 2985). We continue to work through these issues with all interested parties. Also of note, while no formal action occurred this week the IAR is working with the title insurance industry on House Bill 5677 which may amend the “good funds” legislation recently enacted.
     
  • The Senate Financial Institutions Committee took testimony this week on Senate Bill 2510. The intent of this bill, which has been around for several years, would create a record of all of the regulated professionals (lenders, loan officers, appraisers, real estate licensees, etc) involved in the transaction. The IAR and other groups are particularly OPPOSED to this year’s version of the bill as it provides that funds cannot be disbursed at a real estate closing unless the information on ALL of the licensed professionals is collected. Senator Iris Martinez, the sponsor of the legislation, has agreed to continue to work toward resolution of the opposition.
     
  • The Senate Financial Institutions Committee advanced Senate Bill 3738 which amends the Illinois Housing Development Act to authorize the IHDA to establish and administer a foreclosure prevention counseling program using moneys in the Foreclosure Prevention Counseling Fund, appropriated for that purpose, to make grants to HUD-certified housing counseling agencies to support pre-purchase and post-purchase home ownership education and foreclosure prevention counseling. Provides that 75% of the moneys in this Fund shall be used for housing counseling outside Chicago and 25% of the moneys shall be used for such counseling in Chicago. Senate Bill 3739 was also approved by the Committee this week. SB 3739 amends the Mortgage Foreclosure Article of the Code of Civil Procedure to extend specified procedures and counseling requirements that are described as providing homeowner protection in the foreclosure process.
     
  • The Senate Judiciary Committee also advanced legislation regarding the regulation of non-condominium common interest community associations (such as subdivision and townhome homeowners’ associations). Negotiations will continue on this bill, Senate Bill 3180, sponsored by Senator A.J. Wilhelmi. The IAR is pleased to work with the sponsor and are working hard to craft a balanced proposal that recognizes the rights of homeowners in these communities while not imposing overly burdensome or costly mandates on the homeowner associations.
     
  • Another bill affecting homeowners’ associations was approved by the Senate Judiciary Committee this week. Senate Bill 3064, sponsored by Senator Donne Trotter, provides that a homeowners’ association may not, in its own capacity or through its members or any other entity, dredge any sediment or silt from a body of water located, in whole or part, within a common area of the association or redeposit any of that sediment or silt on property within any area of the association, unless certain notice, testing, and compensation requirements are met. The bill would also authorize members of the association to obtain injunctive relief if the requirements of this provision are not met.
     
  • Legislation regarding smoking prohibitions in condominiums was discussed in the Senate Judiciary Committee this week but no vote was taken on the proposal. SB 3175, as amended provides that an association's bylaws restricting the use of the units and the use of the common elements may include prohibitions on smoking tobacco products. SB 3175 is sponsored by Senator Terry Link and is an initiative of the American Lung Association. A duplicate measure in the House, House Bill 5522, sponsored by Representative Karen Yarbrough, is scheduled for a hearing in the House Judiciary I-Civil Law Committee next Wednesday. The IAR is NEUTRAL on these bills.
     
  • The Senate Judiciary Committee also approved Senate Bill 3782 this week regarding mandatory sealing of court files with language providing that the court file relating to a forcible entry and detainer action brought against a tenant who would have lawful possession of the premises but for the foreclosure on the property shall be sealed pursuant to specified provisions of the Mortgage Foreclosure Article of the Code of Civil Procedure. The IAR is NEUTRAL on this bill sponsored by Senator Michael Frerichs.
     
  • Legislation was approved in committees in both the House and Senate this week to create the Foreclosed Home Receiver License Act to provide for the licensure of a receiver of a home foreclosed on by a bank. Senate Bill 3811 and House Bill 6113 provide that upon possession of a foreclosed home, a licensee under the Act shall hold onto and preserve all remaining personal property of the mortgagor or former occupant, with certain exceptions, for at least 30 days or until the mortgagor or occupant releases his or her claim to the property in writing, whichever occurs sooner. The bills also provide that the receiver must post a public notice containing certain specified information related to how the personal property may be reclaimed by the mortgagor or former occupant. The Department of Financial and Professional Regulation is directed to adopt rules to administer the provisions of the Act. The bills also amend the Code of Civil Procedure to make corresponding changes in provisions concerning the appointment of receivers. Negotiations are continuing with the financial institutions on these bills.
     
  • House Bill 5933 and Senate Bill 3018, both initiatives of the Illinois Department of Financial and Professional Regulation were approved this week in committee after adoption of an amendment to clarify the introduced language. The bills clarify a section of the license law regarding restoration of expired licenses. Senate Bill 3018 is sponsored by Senator Maggie Crotty and House Bill 5933 is sponsored by Representative Bob Rita. The IAR is NEUTRAL.
     
  • The Senate Labor Committee approved two bills of interest to REALTORS this week. Senate Bill 3644 makes changes to the current Wage Payment and Collection Act with an amendment that exempted real estate licensees from its provisions. The exemption was added because of provisions within the Real Estate License Act that require a written employment agreement that addresses the employment or independent contractor relationship terms, including without limitation supervision, duties, compensation and termination. The IAR appreciates the work of the sponsor, Senator Linda Holmes, to put the amendment on the bill which was approved by the Committee on a 7-1 roll call vote. Senate Bill 3415, sponsored by Senator Dave Koehler, creates the Mold Remediation Employee Notification Act to require a business owner (or representative of the owner) to provide notice prior to any mold remediation activities of areas measuring 30 square feet or more to all affected employees in the building where the remediation is being conducted. The notice must include a scheduled date and timeframe and it must be done in writing and posted in a conspicuous and accessible location. The legislation “recommends” but does not mandate that an industrial hygienist or other trained environmental health and safety professional is consulted prior to the remediation activities. Once the remediation is complete the owner must provide notice (in a similar fashion) of the completed action that was taken to remedy the mold issue to all affected employees. Both bills are pending on the Senate floor.
     
  • Illinois law currently allows non-home rule municipalities to seek referendum approval to impose a municipal sales tax for expenditure on public infrastructure and/or property tax relief. The Senate Local Government Committee unanimously approved legislation this week that will authorize non-home rule municipalities for a limited timeframe to use VOTER APPROVED sales taxes for municipal operations. The use of proceeds for municipal operations is only authorized until December 31, 2015. SB 3134 is sponsored by Senator Don Harmon.
     
  • Senate Bill 3564, an initiative of the Illinois Rental Property Owners Association (IRPOA), was approved by the Senate Local Government Committee this week and sent to the Senate floor. The bill amends the Illinois Municipal Code to enhance the definitions, notice and due process provisions relating to certain violations of local sanitation and other codes. The IAR is NEUTRAL on the bill. Another IRPOA initiative, House Bill 6207, was heard in the House Judiciary I-Civil Law Committee. This controversial initiative would allow private contractors to carry out eviction orders. The IAR was NEUTRAL on the proposal which was held in Committee.
     
  • Duplicate bills were advanced this week by the education committees in each chamber dealing with working cash funds of school districts. The measures, Senate Bill 3544, sponsored by Senator Maggie Crotty, and House Bill 6041, sponsored by Representative Roger Eddy, make changes to provide flexibility to school districts in their powers to transfer money from various funds. The sponsors stressed the statutory requirements governing funding sources of school districts. The IAR will continue to monitor these proposals.
     
  • On Friday, March 5th the State Board of Elections officially certified the election results from the February 2, 2010 primary election. The official canvass showed that current State Senator Bill Brady was the victor in the Republican primary- finishing a mere 193 votes over the second place finisher State Senator Kirk Dillard. Senator Dillard officially conceded the race on Friday afternoon ending any speculation that he would seek a recount of the vote.
     
  • The General Assembly reconvenes next Tuesday for another busy week.
     
  • You have until next Thursday, March 11th to register at the $15 price for IAR’s lobby day at the State Capitol. After that date you must pay the walk-in fee of $25. The 34th annual Capitol Conference is Tuesday, March 23rd. To register, visit www.illinoisrealtor.org or call 800-252-2910.