Bill
SB 3634
SB 3634 tightens large-state-contract sign-off thresholds, streamlines DOT land/title procedures to meet federal rules, and modernizes real estate appraiser licensing and oversight
SB 3634 (104th General Assembly) - Illinois
Real estate and related procurement/disciplinary updates
Introduction: February 5, 2026. Prime sponsors: Sen. Ram Villivalam; Co-sponsor: Sen. Mike Porfirio.
Purpose and overall intent
- The bill makes a package of reforms across several statutes that touch on state contracting, land title processes, real estate appraisal licensing, and related highway land acquisition. The central themes are tightening signature requirements on large-value contracts, approving land/title transactions with streamlined or federally compliant processes, and updating licensing and disciplinary provisions for real estate appraisers.
Key provisions and changes
1) State Finance Act – vouchers and signing requirements (Section 9.02)
- Applies a signature/approval requirement for state documents in the context of contracts and procurements:
- For construction contracts procured by the Department of Transportation (DOT), the signature threshold is $750,000 or more in a fiscal year (for contracts, contract renewals, orders against a master contract, and contract amendments increasing value to/within $750,000 or more in a fiscal year).
- For non-DOT construction procurements, the general threshold remains $250,000 or more (adjusted for the DOT carve-out above).
- Signatures required from:
- Agency chief executive officer (or designee),
- Agency chief legal counsel (or designee),
- Agency chief financial officer (or designee).
- Prohibits filing/payments without the required signatures.
- Prohibits artificial division of procurements to circumvent the signature requirement.
- Agencies may adopt stricter procedures than those set in the statute.
- Applies to all State agencies; defines who counts as the “chief executive officer” for the General Assembly and its agencies.
2) Public Contract Fraud Act – land/title spending
- DOT may proceed with bidding/awarding a contract or construction activities once it has complied with specified federal requirements for conditional certification, and before completion of title approval where parcels were outstanding at the time of conditional certification. DOT must comply with Title A requirements before expending funds related to those parcels.
3) Real Estate Appraiser Licensing Act of 2002 – licensing, discipline, and related provisions
- Substantial redrafting of several sections (waiver valuations, endorsement, grounds for disciplinary action, citations, discrimination, investigations/hearings, and Board meetings) to update professional standards and governance.
- Terminology and definitions updated (e.g., appraiser, appraisal firm, appraisal management company, waiver valuations, etc.), with emphasis on compliance, ethics, and public protection.
- Ends/extends provisions related to license discipline, board governance, and education/certification processes (consistent with modernization and transparency objectives).
4) Illinois Highway Code – land acquisition for road purposes
- Clarifies that the DOT may acquire interests in land, rights, or other property for road construction purposes, and property may be either public or private. This aligns property acquisition authority with broader highway planning and construction needs.
Effective date
- The act states “Effective immediately” upon passage.
Impact and who is affected
- State agencies, notably the Department of Transportation, will experience higher-signature thresholds for large construction-related contracts and master-contract amendments, affecting procurement workflows and internal controls.
- DOT land/title procedures may be streamlined to meet federal requirements for projects with conditional certification, potentially accelerating certain bidding, awarding, and construction activities.
- Real estate appraisers, appraisal firms, and appraisal management companies will see updated licensing, discipline, and governance provisions, with potential changes in duties, reporting, and enforcement.
- The Real Estate Appraisal Administration and Disciplinary Board will play a continued role in education, licensure recommendations, and disciplinary oversight.
Procedural and timeline notes
- Several sections reference transitional/ repealer timelines (Section 7-15 for the appraisal act sections indicate these provisions are scheduled to be repealed on January 1, 2027; however, the introduced bill itself notes immediate effect for new provisions and general applicability).
- The bill includes standard notice/hearing procedures for disciplinary actions, with timelines for complaints, answers, hearings, and potential rehearings.
- Electronic submission and signature delegation are authorized, with potential for Department-specific stricter policies.
Bottom line
- SB 3634 centralizes tighter financial controls on large state contracts, clarifies DOT land acquisition procedures in line with federal requirements, and modernizes Illinois Real Estate Appraiser Licensing Act provisions to strengthen oversight, ethics, and discipline, while enhancing board governance and regulatory processes.
Compiled from official sources — confirm details with the bill’s official record.
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