March 14, 2008 

“If you believe in yourself and have dedication and pride - and never quit, you'll be a winner. The price of victory is high but so are the rewards.”
~Paul “Bear” Bryant

A decisive victory was scored this week as the House Judiciary I-Civil Law rejected HB 4313. You will recall that this initiative, promoted by a group called the “Homeowners Club of America” (HCA), sought to amend Section 10-15 of the Real Estate License Act to prohibit a real estate licensee from paying a cash rebate, cash gift, or cash prize to an unlicensed person who is a party to a contract to buy or sell real estate. IAR was strongly OPPOSED to this legislation which we believe is both anti-competitive and anti-consumer. IAR appreciates the support of our position on this issue from the members of the Judiciary Committee; particularly the efforts of Chairman John Fritchey, Representative Sid Mathias and Representative Elaine Nekritz who spoke in debate on the legislation.  Thank you to all who contacted legislators in opposition to the bill.  The measure was defeated in the Committee for a lack of a motion- a rare parliamentary procedure that indicated a unanimous lack of support.

Progress was made this week on efforts to advance important educational changes to the Real Estate License Law. IAR met with key House leadership and staff on the various provisions of House Bill 5358 and negotiations will continue over the spring recess.  We will keep you apprised as to developments on this important legislation. 

Two bills related to levees were advanced this week by legislators from the metro-east area.  House Bill 5205, sponsored by Representative Wyvetter Younge and approved by the House Agriculture and Conservation Committee on Tuesday, directs the Department of Natural Resources to evaluate the levee system in the State and to calculate the costs of repairing the system if deemed inadequate.  A report is required to be submitted to the General Assembly by March 1, 2009. IAR is NEUTRAL.  The Senate Local Government Committee advanced Senate Bill 2052, as amended on Wednesday.  This bill, sponsored by Senator Bill Haine, creates the Flood Prevention District Act for the counties of Madison, Monroe and St. Clair.  These counties are authorized to establish a flood prevention district and can join together by intergovernmental agreement.  A governing board of commissioners would be appointed by the county board to carry out the functions of the district.  The county board is also authorized to impose a sales tax (0.25%) upon determination that an emergency situation exists regarding levee repair or flood prevention. IAR SUPPORTS SB 2052. 

The Senate Judiciary I-Civil Law Committee advanced several bills of interest this week.  Senate Bill 2124, sponsored by Senator John Cullerton, amends the Code of Civil Procedure related to evictions.  While IAR is OPPOSED to the original legislation, the sponsor and IAR are continuing to work toward an agreement on this legislation which is intended to provide a stay on enforcement of a judgment for possession where the sole basis for the judgment is non-payment of past due rent against the occupant of residential property.  The stay would only be until January 1, 2010 and the legislation would specify exclusions.  Senate Bill 2128, also sponsored by Senator Cullerton, is a reintroduction of legislation rejected in prior legislative sessions for the licensure of community association managers.  IAR is OPPOSED to the legislation but has agreed to meet with the proponents to discuss the issue further this spring session.  Senate Bill 2287, as amended is sponsored by Senator Kwame Raoul.  The bill makes changes to the Safe Homes Act to provide that a landlord may not disclose to a prospective landlord that a tenant or a member of the tenant’s household exercised rights under the Act (lock changes or early termination of a lease).  A landlord who discloses confidential information would be liable for damages resulting form the disclosure or $2,000, whichever is greater, along with attorney’s fees and costs.  IAR testified in OPPOSITION to this legislation citing the fact that the bill creates a new duty on a landlord, the fact that this information is part of the public record and that the information could be disclosed by other sources, the bill provides for an automatic penalty, and lastly that Illinois case law already provides for a remedy.  Despite our efforts, the measure was advanced to the full Senate for further consideration.    Senate Bill 2138, sponsored by Senator Dave Syverson, amends the Code of Civil Procedure to provide that effective January 1, 2009, a release or satisfaction of judgment must include a disclosure statement that the release should be filed in the office of the clerk of the circuit court and that the release must also be recorded if the judgment is recorded.  The defendant is required to record the release. IAR SUPPORTS this legislation.  Senate Bill 2139, also sponsored by Senator Syverson, was advanced out of the Committee with the pledge from the sponsor to continue to work on the bill to seek consensus among various interested parties, including IAR.  This bill seeks to authorize a county board to establish a residential landlord-tenant court.  This legislation is currently under review by IAR and will be discussed at the March 26, 2008 meeting of the Public Policy Governmental Affairs Member Involvement Group.

 Legislation was defeated in the Senate Judiciary I- Civil Law Committee that has long been OPPOSED by IAR and most business groups.  Senate Bill 2909, sponsored by Senator Michael Noland, sought to create the Consumer Contract Plain Language Act to mandate certain criteria for specific contracts, including real estate contracts. 

House Bill 4647, sponsored by Representative David Leitch, was approved by the House Insurance Committee this week and sent to the House floor for further consideration.  This bill SUPPORTED by IAR will require an insurance company to record a notice of claim for mine subsidence. 

The Senate Local Government Committee approved Senate Bill 2034, sponsored by Senator David Koehler on Tuesday.  This bill would allow a local government to require homeowners who maintain a private sewage disposal system to provide verification, no more frequently than once every 3 years to the unit of local government of a valid contract with a licensed private sewage disposal system installation contractor.   The bill specified that no additional fee may be charged for such verification.  IAR is NEUTRAL.

Only one of a series of bills related to the requirements of leases for mobile homes and for the sale of mobile home parks advanced this week.  House Bill 5584, sponsored by Representative Ruth Munson, includes language that would establish rent control as public policy.  IAR OPPOSES this measure which is pending on the House floor.

A series of bills related to historic structures was considered this week by the Senate.  All three measures, Senate Bills 2580, 2626 and 2733, were advanced to the Senate floor and the sponsor, Senator Dan Cronin, indicated that additional negotiations would continue.  The three bills are aimed at making it more difficult to demolish or alter historic structures. IAR will continue to monitor these proposals and will participate in the on-going negotiations.

The House Human Services Committee advanced lead paint legislation with the agreement that the bill would be amended further with specific language requested by IAR.  House Bill 5790, sponsored by Representative Harry Osterman, amends the existing Lead Poisoning Prevention Act to provide that the Department of Public Health shall create, maintain, and make available to the public a Hazardous Housing Registry that will provide information regarding all properties within the State for which a mitigation notice has been issued pursuant to this Act. IAR is seeking an amendment which will ensure that the owner is given a reasonable period of time to comply with an order to mitigate a lead hazard before that property is put in the Registry.

The House Judiciary I-Civil Law Committee advanced an amended version of House Bill 5037, legislation dealing with distressed condominium property, with the agreement that the sponsor and proponents would continue to work with the opponents, including IAR.  This legislation is an initiative of the city of Chicago and is intended to expedite receivership procedures for abandoned or dilapidated condominium property.  The legislation would allow a court to appoint a receiver to manage the property with the ultimate goal of selling the property and allowing the reuse of the property.  The adopted amendment did address some of IAR initial concerns with the original legislation and we will continue to work with Representative Marlow Colvin to seek consensus.    

House Bill 5503, legislation initiated by the American Resort Development Association to make various changes to the Illinois Timeshare Act, was also advanced out of the House Judiciary I-Civil Law Committee this week.  This Act regulates the timeshare industry. IAR met with representatives of the Association to discuss concerns with the original proposal and an agreement was reached on specific language which will be added to the bill by amendment.  Key provisions include the requirement that resale agents be licensed under the Real Estate License Act and additional disclosure requirements. 

House Bill 5189, as amended was advanced to the House floor for further consideration after a lengthy debate in the House Judiciary I-Civil Law Committee.  The legislation seeks to address the issue of bylaws of a condominium or homeowners association on the issue of leasing units. IAR is NEUTRAL on this issue.

The House Judiciary I- Civil Law Committee also advanced House Bill 838, an initiative of Attorney General Lisa Madigan.  The measure establishes various requirements regarding additional information to be attached to a foreclosure complaint, specifies a timeframe that a payoff demand statement must be prepared and delivered and provides that a court may award reasonable attorney’s fees and cost to the prevailing party in a foreclosure action.  

The Senate Environment and Energy Committee approved Senate Bill 2110, sponsored by Senator A.J. Wilhelmi.  The legislation makes the Uniform Environmental Covenants Act; proposed by the National Conference of Commissioners on Uniform State Laws, part of Illinois law.  The Act creates an interest in real estate called an "environmental covenant" which is intended to implement a plan of rehabilitation for “brownfields” in order that the property can be returned to the tax rolls.  The bill requires a plan between the State or the federal government and the landowner for "remediation" of the property to be in place for an environmental covenant to be created and conveyed. The Act provides for the creation of such a covenant, its termination when appropriate, priority over other real estate interests, and enforcement over the time the covenant is in place. An environmental covenant is perpetual unless a specific term is prescribed in the instrument creating it.  This legislation is currently under review by IAR and will be discussed at the March 26, 2008 meeting of the Public Policy Governmental Affairs Member Involvement Group.  Also advanced from the Committee was Senate Bill 2017, sponsored by Senator Bill Haine.  The measure would impose an initial annual NPDES permit fee of $750 for construction site stormwater issued prior to January 1, 2009 and provides that there shall be no additional annual fee due after January 1, 2009 if the annual fees paid for the permit equal or exceed the initial annual fee amount. 

The Senate Revenue Committee approved legislation this week to make changes to the existing law regarding objections to the creation of a Special Service Area (SSA).  Senate Bill 2584, sponsored by Senator Pam Althoff and SUPPORTED by IAR, is an enhancement to the rights of private property owners.  This bill is pending on the Senate floor. IAR has also discussed with the sponsor an additional amendment to address restrictive covenants regarding the objection of SSA assessments.

The House Environmental Health Committee adopted an amendment to House Bill 5254 to create the Global Warming Response Act.  This new Act establishes various provisions to address greenhouse gas emissions and energy efficiency, including a statewide energy efficiency code for all buildings.  However, Representative Elaine Nekritz, the sponsor of the bill, indicated that it was her intent NOT to move the bill this spring session but that there would be a series of joint House/Senate hearings on the issue in the coming months.  Senator Don Harmon had also introduced a similar measure, Senate Bill 2220, which was held in the Senate Rules Committee.

Two measures that would authorize a new impact fee for fire protection districts were not called by the sponsors and are now inactive.  House Bill 4676, sponsored by Representative Don Moffitt and House Bill 4677, sponsored by Representative Bob Biggins would have authorized imposition of a development impact fee not only equipment but for personnel. IAR was STRONGLY OPPOSED to these measures.

House Bill 4774, sponsored by Representative Dave Winters, would have authorized all municipalities and counties to purchase conservation easements for farmland preservation.  The term of the easements would have been established by ordinance. IAR OPPOSED this measure which was defeated on a roll call vote of 4-2-3.  Those voting WITH the REALTOR position (a No or Present Vote) were:  Representatives Bob Flider, Frank Mautino, Mike Fortner, Sid Mathias, and Al Riley. 

A measure that was approved by the House Local Government Committee would provide an incentive for single family residential properties to install fire sprinkler systems.  House Bill 4687, sponsored by Representative Mike Boland, would authorize a fire protection district to establish a grant program for the installation of such systems.  The bill is pending on the House floor.

Senate Bill 2760, sponsored by Senator Mike Jacobs, for the licensure of electricians has advanced out of the Senate Licensed Activities Committee and is pending on the Senate floor. IAR is reviewing the owner exemption language.

Three bills that address the issue of foreclosure were advanced with amendments out of the House Housing and Urban Development Committee.  House Bills 4611, 5728 and 5788 are all under review by IAR and will be discussed at the March 26, 2008 meeting of the Public Policy Governmental Affairs Member Involvement Group.

House Bill 4789, a measure introduced by Representative Karen May, dealing with radon and building codes was approved after a further amendment was adopted by the House Environment and Energy Committee and is pending on the House floor.  The bill in its amended form is intended to create a task force to study and make recommendations concerning the adoption of rules for building codes. IAR OPPOSED the original bill. 

House Resolution 628 was approved by the House Judiciary II-Criminal Law Committee on Thursday.  This resolution OPPOSED by IAR creates the  “Sealing of Records in Forcible Entry and Detainer Cases Task Force” to study the sealing of certain records in forcible entry and detainer cases and to recommend proposed legislation to the House on or before December 31, 2008. 

The House Revenue Committee advanced a measure sure to get the attention of the Cook County Assessor.  House Bill 6302, sponsored by Representative Kevin Joyce, mandates that on or before October 1, 2008, the county assessor shall reassess all residential property in the county for which 2008 is not the general assessment year.  The committee heard from opponents who objected to the fact that only residential property was included.  The fate of this legislation remains unclear.

The Senate Financial Institutions Committee advanced three measures of interest on Thursday.  Senate Bill 1879 was changed from its introduced version to instead amend the Illinois Fairness in Lending Act with respect to discrimination to codify provisions of existing federal fair lending law.  The legislation also increases the penalties under the Human Rights Act for violations.  Senate Bill 2786, sponsored by Senator Don Harmon, is an initiative of the Land Title Association related to disbursements of funds.  IAR is NEUTRAL.  Senate Bill 2828, sponsored by Senator Iris Martinez, would require a title insurance company in each residential mortgage loan transaction to file with the Secretary of Financial and Professional Regulation the names and license or registration numbers of each financial institution, residential mortgage licensee, loan originator, real estate appraiser, real estate licensee, and closing agent involved in the transaction. IAR was NEUTRAL on this legislation.

The Senate Housing and Community Affairs Committee advanced Senate Bill 2566 and Senate Bill 2425 this week.  SB 2566, sponsored by Senator Jacqueline Collins requires the Illinois Housing Development Authority to establish and administer a foreclosure prevention counseling program.  The program would be funded by a newly created Foreclosure Prevention Counseling Fund from proceeds of a new $500 surcharge established on all licenses (issued annually) under the Residential Mortgage License Act. The surcharge would become effective July 1, 2008.  25% of the moneys in the fund each month would be distributed as grants by IHDA to HUD-certified counseling agencies for home-ownership education and foreclosure prevention counseling.  This legislation will be discussed at the March 26, 2008 meeting of the Public Policy Governmental Affairs Member Involvement Group.  Senate Bill 2425, sponsored by Senator A.J. Wilhelmi, creates the Homeowners’ Association Bill of Rights Act.  This bill was advanced to the Senate floor as a “shell bill” which is a bill creating a title but without substantive provisions.  The sponsor indicated that a series of hearings would be held on this issue. IAR will participate in the hearings.

The General Assembly is on spring recess for the remainder of March.  THE NEXT ISSUE OF “WEEK IN REVIEW” WILL BE SENT FRIDAY, APRIL 4TH.      

For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org.

Contact information for members of the House and Senate, notice of committee hearings, text of legislation and roll call votes are all available on the Illinois General Assembly’s Web site, www.ilga.gov.