Rep. Elaine Nekritz

Filed: 3/19/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 595

2    AMENDMENT NO. ______. Amend House Bill 595 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Community Association Manager Licensing
5and Disciplinary Act is amended by changing Sections 5, 10, 15,
620, 25, 27, 32, 40, 50, 55, 60, 65, 70, 75, 85, 87, 92, 135,
7155, and 165 and by adding Section 42 as follows:
 
8    (225 ILCS 427/5)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 5. Legislative intent. It is the intent of the General
11Assembly that this Act provide for the licensing and regulation
12of managers of community association managers and community
13association management firms associations, ensure that those
14who hold themselves out as possessing professional
15qualifications to engage in the business provision of community
16association management services are, in fact, qualified to

 

 

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1render management services of a professional nature, and
2provide for the maintenance of high standards of professional
3conduct by those licensed to provide as community association
4management services managers.
5(Source: P.A. 96-726, eff. 7-1-10.)
 
6    (225 ILCS 427/10)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 10. Definitions. As used in this Act:
9    "Address of record" means the designated address recorded
10by the Department in the applicant's or licensee's application
11file or license file maintained by the Department's licensure
12maintenance unit. It is the duty of the applicant or licensee
13to inform the Department of any change of address, and such
14changes must be made either through the Department's website or
15by contacting the Department's licensure maintenance unit.
16    "Advertise" means, but is not limited to, issuing or
17causing to be distributed any card, sign or device to any
18person; or causing, permitting or allowing any sign or marking
19on or in any building, structure, newspaper, magazine or
20directory, or on radio or television; or advertising by any
21other means designed to secure public attention.
22    "Board" means the Illinois Community Association Manager
23Licensing and Disciplinary Board.
24    "Community association" means an association in which
25membership is a condition of ownership or shareholder interest

 

 

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1of a unit in a condominium, cooperative, townhouse, villa, or
2other residential unit which is part of a residential
3development plan and that is authorized to impose an
4assessment, rents, or other costs that may become a lien on the
5unit or lot.
6    "Community association funds" means any assessments, fees,
7fines, or other funds collected by the community association
8manager from the community association, or its members, other
9than the compensation paid to the community association manager
10for performance of community association management services.
11    "Community association management firm" means a company,
12corporation, limited liability company, or other entity that
13engages in the community association management business.
14    "Community association management services" means those
15services listed in the definition of community association
16manager in this Section.
17    "Community Association Management Agency" means a company,
18firm, corporation, limited liability company, or other entity
19that engages in the community association management business
20and employs, in addition to the licensee-in-charge, at least
21one other person in conducting such business.
22    "Community association manager" means an individual who
23administers for remuneration the financial, administrative,
24maintenance, or other duties for the community association,
25including the following services: (A) collecting, controlling
26or disbursing funds of the community association or having the

 

 

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1authority to do so; (B) preparing budgets or other financial
2documents for the community association; (C) assisting in the
3conduct of community association meetings; (D) maintaining
4association records; and (E) administrating association
5contracts, as stated in the declaration, bylaws, proprietary
6lease, declaration of covenants, or other governing document of
7the community association. "Community association manager"
8does not mean support staff, including, but not limited to
9bookkeepers, administrative assistants, secretaries, property
10inspectors, or customer service representatives.
11    "Department" means the Department of Financial and
12Professional Regulation.
13    "License" means the license issued to a person,
14corporation, partnership, limited liability company, or other
15legal entity to act as a community association manager under
16this Act to provide community association management services
17or other authority to practice issued under this Act.
18    "Person" means any individual, firm, corporation,
19partnership, limited liability company, or other legal entity
20organization, or body politic.
21    "Licensee-in-charge" means a person licensed as a
22community association manager who has been designated by a
23Community Association Management Agency as the full-time
24management employee or owner who assumes sole responsibility
25for maintaining all records required by this Act and who
26assumes sole responsibility for assuring the licensed agency's

 

 

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1compliance with its responsibilities as stated in the Act.
2    "Secretary" means the Secretary of Financial and
3Professional Regulation.
4    "Supervising community association manager" means an
5individual licensed as a community association manager who
6manages and supervises licensees in an office.
7(Source: P.A. 96-726, eff. 7-1-10.)
 
8    (225 ILCS 427/15)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 15. License required. It Beginning 12 months after the
11adoption of rules providing for the licensure of a community
12association manager in Illinois under this Act, it shall be
13unlawful for any person, corporation, partnership, limited
14liability company, or other entity, or other business to
15provide community association management services, or provide
16services as a community association manager, or hold himself,
17herself, or itself out as a community association manager or
18community association management firm to any community
19association in this State, unless he, or she, or it holds a
20current and valid license issued licensed by the Department or
21is otherwise exempt from licensure under this Act.
22(Source: P.A. 96-726, eff. 7-1-10.)
 
23    (225 ILCS 427/20)
24    (Section scheduled to be repealed on January 1, 2020)

 

 

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1    Sec. 20. Exemptions.
2    (a) The requirement for holding a license under this This
3Act shall does not apply to any of the following:
4        (1) Any director, officer, or member of a community
5    association providing one or more of the services of a
6    community association manager to a community association
7    without compensation for such services to the association.
8        (2) Any person, corporation, partnership, or limited
9    liability company providing one or more of the services of
10    a community association manager to a community association
11    of 10 units or less.
12        (3) A licensed attorney acting solely as an incident to
13    the practice of law.
14        (4) A person acting as a receiver, trustee in
15    bankruptcy, administrator, executor, or guardian acting
16    under a court order or under the authority of a will or of
17    a trust instrument.
18        (5) A person licensed in this State under any other Act
19    from engaging the practice for which he or she is licensed.
20    (b) A licensed community association manager may not
21perform or engage in any activities for which a real estate
22managing broker or real estate broker's salesperson's license
23is required under the Real Estate License Act of 2000, unless
24he or she also possesses a current and valid license under the
25Real Estate License Act of 2000 and is providing those services
26as provided for in the Real Estate License Act of 2000 and the

 

 

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1applicable rules.
2    (c) A person may temporarily act as, or provide services
3as, a community association manager without being licensed
4under this Act if the person (i) is a community association
5manager regulated under the laws of another state or territory
6of the United States or another country and (ii) has applied in
7writing to the Department, on forms prepared and furnished by
8the Department, for licensure under this Act. This temporary
9right to act as a community association manager shall expire ,
10but only until the expiration of 6 months after the filing of
11his or her written application to the Department; , his or upon
12the her withdrawal of the application for licensure under this
13Act; or upon delivery of , he or she has received a notice of
14intent to deny the application from the Department; , or upon
15the denial of the application by the Department, whichever
16occurs first.
17(Source: P.A. 96-726, eff. 7-1-10.)
 
18    (225 ILCS 427/25)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 25. Community Association Manager Licensing and
21Disciplinary Board.
22    (a) There is hereby created the Community Association
23Manager Licensing and Disciplinary Board, which shall consist
24of 7 members appointed by the Secretary. All members must be
25residents of the State and must have resided in the State for

 

 

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1at least 5 years immediately preceding the date of appointment.
2Five members of the Board must be licensees under this Act, at
3least two members of which shall be supervising community
4association managers except that, initially, these members
5must meet the qualifications for licensure and have obtained a
6license within 6 months after the effective date of this Act.
7Two members of the Board shall be owners of, or hold a
8shareholder's interest in, shareholders of a unit in a
9community association at the time of appointment who are not
10licensees under this Act and have no direct affiliation or work
11experience with the community association's community
12association manager. This Board shall act in an advisory
13capacity to the Department.
14    (b) Board members shall serve for terms of 5 years, except
15that, initially, 4 members shall serve for 5 years and 3
16members shall serve for 4 years. All members shall serve until
17his or her successor is appointed and qualified. All vacancies
18shall be filled in like manner for the unexpired term. No
19member shall serve for more than 2 successive terms. The
20Secretary shall remove from the Board any member whose license
21has become void or has been revoked or suspended and may remove
22any member of the Board for neglect of duty, misconduct, or
23incompetence. A member who is subject to formal disciplinary
24proceedings shall disqualify himself or herself from all Board
25business until the charge is resolved. A member also shall
26disqualify himself or herself from any matter on which the

 

 

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1member cannot act objectively.
2    (c) Four Board members shall constitute a quorum. A quorum
3is required for all Board decisions.
4    (d) The Board shall may elect annually a chairperson and
5vice chairperson.
6    (e) Each member shall receive reimbursement as set by the
7Governor's Travel Control Board for expenses incurred in
8carrying out the duties as a Board member. The Board shall be
9compensated as determined by the Secretary.
10    (f) The Board may recommend policies, procedures, and rules
11relevant to the administration and enforcement of this Act.
12(Source: P.A. 96-726, eff. 7-1-10.)
 
13    (225 ILCS 427/27)
14    (Section scheduled to be repealed on January 1, 2020)
15    Sec. 27. Immunity from Liability. Any member of the Board,
16any attorney providing advice to the Board or Department, any
17person acting as a consultant to the Board or Department, and
18any witness testifying in a proceeding authorized under this
19Act, excluding the party making the complaint, shall be immune
20from liability in any civil action brought against him or her
21for acts occurring while acting in his or her capacity as a
22Board member, attorney, consultant, or witness, respectively,
23unless the conduct that gave rise to the action was willful or
24wanton misconduct.
25(Source: P.A. 96-726, eff. 7-1-10.)
 

 

 

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1    (225 ILCS 427/32)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 32. Social Security Number or Federal Tax
4Identification Number on license application. In addition to
5any other information required to be contained in the
6application, every application for an original license under
7this Act shall include the applicant's Social Security Number
8or Federal Tax Identification Number, which shall be retained
9in the Department's agency's records pertaining to the license.
10As soon as practical, the Department shall assign a customer's
11identification number to each applicant for a license.
12    Every application for a renewal or restored license shall
13require the applicant's customer identification number.
14(Source: P.A. 96-726, eff. 7-1-10; 97-400, eff. 1-1-12.)
 
15    (225 ILCS 427/40)
16    (Section scheduled to be repealed on January 1, 2020)
17    Sec. 40. Qualifications for licensure as a community
18association manager.
19    (a) No person shall be qualified for licensure as a
20community association manager under this Act, unless he or she
21has applied in writing on the prescribed forms and has paid the
22required, nonrefundable fees and meets all of the following
23qualifications:
24        (1) He or she is at least 21 years of age.

 

 

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1        (2) He or she provides satisfactory evidence of having
2    completed at least 20 classroom hours in community
3    association management courses approved by the Board.
4        (3) He or she has passed an examination authorized by
5    the Department.
6        (4) He or she has not committed an act or acts, in this
7    or any other jurisdiction, that would be a violation of
8    this Act.
9        (5) He or she is of good moral character. In
10    determining moral character under this Section, the
11    Department may take into consideration whether the
12    applicant has engaged in conduct or activities that would
13    constitute grounds for discipline under this Act. Good
14    moral character is a continuing requirement of licensure.
15    Conviction of crimes may be used in determining moral
16    character, but shall not constitute an absolute bar to
17    licensure.
18        (6) He or she has not been declared by any court of
19    competent jurisdiction to be incompetent by reason of
20    mental or physical defect or disease, unless a court has
21    subsequently declared him or her to be competent.
22        (7) He or she complies with any additional
23    qualifications for licensure as determined by rule of the
24    Department.
25    (b) The education requirement set forth in item (2) of
26subsection (a) of this Section shall not apply to persons

 

 

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1holding a real estate broker or real estate broker salesperson
2license in good standing issued under the Real Estate License
3Act of 2000.
4    (c) The examination and initial education requirement of
5items (2) and (3) of subsection (a) of this Section shall not
6apply to any person who within 6 months from the effective date
7of the requirement for licensure, as set forth in Section 170
8of this Act, applies for a license by providing satisfactory
9evidence to the Department of qualifying experience or
10education, as may be set forth by rule, including without
11limitation evidence that he or she has (i) practiced community
12association management for a period of 5 years or (ii) achieved
13a designation awarded by recognized community association
14management organizations in the State.
15    (d) Applicants have 3 years from the date of application to
16complete the application process. If the process has not been
17completed within the 3 years, the application shall be denied,
18the fee shall be forfeited, and the applicant must reapply and
19meet the requirements in effect at the time of re-application.
20(Source: P.A. 96-726, eff. 7-1-10; 96-993, eff. 7-2-10.)
 
21    (225 ILCS 427/42 new)
22    (Section scheduled to be repealed on January 1, 2020)
23    Sec. 42. Qualifications for licensure as a supervising
24community association manager.
25    (a) No person shall be qualified for licensure as a

 

 

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1supervising community association manager under this Act
2unless he or she has applied in writing on the prescribed
3forms, has paid the required nonrefundable fees, and meets all
4of the following qualifications:
5        (1) He or she is at least 21 years of age.
6        (2) He or she has been licensed at least one out of the
7    last 2 preceding years as a community association manager.
8        (3) He or she provides satisfactory evidence of having
9    completed at least 30 classroom hours in community
10    association management courses approved by the Board, 20
11    hours of which shall be those pre-license hours required to
12    obtain a community association manager license, and 10
13    additional hours completed the year immediately preceding
14    the filing of the application for a supervising community
15    association manager license, which shall focus on
16    community association administration, management, and
17    supervision.
18        (4) He or she has passed an examination authorized by
19    the Department.
20        (5) He or she has not committed an act or acts, in this
21    or any other jurisdiction, that would be a violation of
22    this Act.
23        (6) He or she is of good moral character. In
24    determining moral character under this Section, the
25    Department may take into consideration whether the
26    applicant has engaged in conduct or activities that would

 

 

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1    constitute grounds for discipline under this Act. Good
2    moral character is a continuing requirement of licensure.
3    Conviction of crimes may be used in determining moral
4    character, but shall not constitute an absolute bar to
5    licensure.
6        (7) He or she has not been declared by any court of
7    competent jurisdiction to be incompetent by reason of
8    mental or physical defect or disease, unless a court has
9    subsequently declared him or her to be competent.
10        (8) He or she complies with any additional
11    qualifications for licensure as determined by rule of the
12    Department.
13    (b) The initial 20-hour education requirement set forth in
14item (3) of subsection (a) of this Section shall not apply to
15persons holding a real estate managing broker or real estate
16broker license in good standing issued under the Real Estate
17License Act of 2000. The 10 additional hours required for
18licensure under this Section shall be completed as required.
19    (c) The examination and initial education requirement of
20items (3) and (4) of subsection (a) of this Section shall not
21apply to any person who, within 6 months after the effective
22date of the requirement for licensure, as set forth in Section
23170 of this Act, applies for a license by providing
24satisfactory evidence to the Department of qualifying
25experience or education, as may be set forth by rule, including
26without limitation, evidence that he or she has practiced

 

 

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1community association management for a period of 7 years.
2    (d) Applicants have 3 years after the date of application
3to complete the application process. If the process has not
4been completed within the 3 years, the application shall be
5denied, the fee shall be forfeited, and the applicant must
6reapply and meet the requirements in effect at the time of
7re-application.
 
8    (225 ILCS 427/50)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 50. Community association management firm Association
11Management Agency.
12    (a) No firm, corporation, partnership, limited liability
13company, or other legal entity shall provide or offer to
14provide community association management services, unless it
15has applied in writing on the prescribed forms and has paid the
16required nonrefundable fees and provided evidence to the
17Department that the firm has designated a licensed supervising
18community association manager to supervise and manage the firm.
19A designated supervising community association manager shall
20be a continuing requirement of firm licensure. No supervising
21community association manager may be the supervising community
22association manager for more than one firm. such services are
23provided through:
24        (1) an employee or independent contractor who is
25    licensed under this Act;

 

 

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1        (2) a natural person who is acting under the direct
2    supervision of an employee of such firm, corporation,
3    limited liability company, or other legal entity that is
4    licensed under this Act; or
5        (3) a natural person who is legally authorized to
6    provide such services.
7    (b) Any firm, corporation, partnership, limited liability
8company, or other legal entity that is providing, or offering
9to provide, community association management services and is
10not in compliance with Section 50 and other the provisions of
11this Act shall be subject to the fines, injunctions, cease and
12desist provisions, and penalties provided for in Sections 90,
1392, and 155 of this Act.
14    (c) No community association manager may be the
15licensee-in-charge for more than one firm, corporation,
16limited liability company, or other legal entity.
17(Source: P.A. 96-726, eff. 7-1-10.)
 
18    (225 ILCS 427/55)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 55. Fidelity insurance; segregation of accounts.
21    (a) The supervising community association manager or the
22community association management firm A community association
23manager or the Community Association Management Agency with
24which he or she is employed shall not have access to and
25disburse community association funds of a community

 

 

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1association unless each of the following conditions occur:
2        (1) There is fidelity insurance in place to insure
3    against loss for theft of community association funds.
4        (2) The fidelity insurance is not less than all moneys
5    under the control of the supervising community association
6    manager community association manager or the employing
7    community association management firm Community
8    Association Management Agency for the association.
9        (3) The fidelity insurance covers the community
10    association manager, supervising community association
11    manager, and all partners, officers, and employees of the
12    community association management firm Community
13    Association Management Agency with whom he or she is
14    employed during the term of the insurance coverage, which
15    shall be at least for the same term as the service
16    agreement between the community association management
17    firm or supervising community association manager as well
18    as the community association officers, directors, and
19    employees.
20        (4) The insurance company issuing the fidelity
21    insurance may not cancel or refuse to renew the bond
22    without giving at least 10 days' prior written notice.
23        (5) Unless an agreement between the community
24    association and the supervising community association
25    manager or the community association management firm
26    Community Association Management Agency provides to the

 

 

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1    contrary, a community association may secure and pay the
2    Association secures and pays for the fidelity insurance
3    required by this Section. The supervising community
4    association manager or the community association
5    management firm community association manager and the
6    Community Association Management Agency must be named as
7    additional insured parties on the community association
8    policy.
9    (b) A community association management firm manager or
10Community Association Management Agency that provides
11community association management services for more than one
12community association shall maintain separate, segregated
13accounts for each community association or, with the consent of
14the community association, combine the accounts of one or more
15community associations, but in that event, separately account
16for the funds of each community association. The funds shall
17not, in any event, be commingled with the supervising community
18association manager's or community association management
19firm's Community Association Management Agency's funds. The
20maintenance of such accounts shall be custodial, and such
21accounts shall be in the name of the respective community
22association or community association manager or Community
23Association Management Agency as the agent for the association.
24    (c) The supervising community association manager or
25community association management firm Community Association
26Management Agency shall obtain the appropriate general

 

 

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1liability and errors and omissions insurance, as determined by
2the Department, to cover any losses or claims against the
3supervising community association manager or the community
4association management firm community association clients.
5    (d) The Department shall have authority to promulgate
6additional rules regarding insurance, fidelity insurance and
7all accounts maintained and to be maintained by a supervising
8community association manager or community association
9management firm Community Association Management Agency.
10(Source: P.A. 96-726, eff. 7-1-10.)
 
11    (225 ILCS 427/60)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 60. Licenses; renewals; restoration; person in
14military service.
15    (a) The expiration date and renewal period for each license
16issued under this Act shall be set by rule. The Department may
17promulgate rules requiring continuing education and set all
18necessary requirements for such, including but not limited to
19fees, approved coursework, number of hours, and waivers of
20continuing education.
21    (b) Any licensee who has permitted his, or her, or its
22license to expire may have the license restored by making
23application to the Department and filing proof acceptable to
24the Department of fitness to have his, or her, or its license
25restored, by which may include sworn evidence certifying to

 

 

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1active practice in another jurisdiction satisfactory to the
2Department, complying with any continuing education
3requirements, and paying the required restoration fee.
4    (c) If the person has not maintained an active practice in
5another jurisdiction satisfactory to the Department, the
6Department shall determine, by an evaluation program
7established by rule, the person's fitness to resume active
8status and may require the person to complete a period of
9evaluated clinical experience and successful completion of a
10practical examination. However, any person whose license
11expired while (i) in federal service on active duty with the
12Armed Forces of the United States or called into service or
13training with the State Militia or (ii) in training or
14education under the supervision of the United States
15preliminary to induction into the military service may have his
16or her license renewed or restored without paying any lapsed
17renewal fees if, within 2 years after honorable termination of
18the service, training or education, except under condition
19other than honorable, he or she furnishes the Department with
20satisfactory evidence to the effect that he or she has been so
21engaged and that the service, training, or education has been
22so terminated.
23    (d) A community association manager, community association
24management firm or supervising community association manager
25who notifies the Department, in writing on forms prescribed by
26the Department, may place his, or her, or its license on

 

 

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1inactive status and shall be excused from the payment of
2renewal fees until the person notifies the Department in
3writing of the intention to resume active practice.
4    (e) A community association manager, community association
5management firm, or supervising community association manager
6requesting his, or her, or its license be changed from inactive
7to active status shall be required to pay the current renewal
8fee and shall also demonstrate compliance with the continuing
9education requirements.
10    (f) Any licensee with a license nonrenewed or on inactive
11license status shall not provide community association
12management services or provide services as community
13association manager as set forth in this Act.
14    (g) Any person violating subsection (f) of this Section
15shall be considered to be practicing without a license and will
16be subject to the disciplinary provisions of this Act.
17(Source: P.A. 96-726, eff. 7-1-10.)
 
18    (225 ILCS 427/65)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 65. Fees; Community Association Manager Licensing and
21Disciplinary Fund.
22    (a) The fees for the administration and enforcement of this
23Act, including, but not limited to, initial licensure, renewal,
24and restoration, shall be set by rule of the Department. The
25fees shall be nonrefundable.

 

 

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1    (b) In addition to the application fee, applicants for the
2examination are required to pay, either to the Department or
3the designated testing service, a fee covering the cost of
4determining an applicant's eligibility and providing the
5examination. Failure to appear for the examination on the
6scheduled date, at the time and place specified, after the
7applicant's application and fee for examination have been
8received and acknowledged by the Department or the designated
9testing service, shall result in the forfeiture of the fee.
10    (c) To support the costs of administering this Act, all
11community associations that (i) are subject to this Act by
12having 10 or more units, (ii) retain an individual to provide
13services as a community association manager for compensation,
14(iii) are not master associations under Section 18.5 of the
15Condominium Property Act or the Common Interest Community
16Association Act, and (iv) are registered in this State as
17not-for-profit corporations shall pay to the Department an
18annual fee of $50 plus an additional $1 per unit, but shall not
19exceed an annual fee of $1,000 for any community association.
20The Department may establish forms and promulgate any rules for
21the effective collection of such fees under this subsection
22(c).
23    Any not-for-profit corporation in this State that fails to
24pay in full to the Department all fees owed under this
25subsection (c) shall be subject to the penalties and procedures
26provided for under Section 92 of this Act.

 

 

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1    (c) (d) All fees, fines, penalties, or other monies
2received or collected pursuant to this Act shall be deposited
3in the Community Association Manager Licensing and
4Disciplinary Fund.
5(Source: P.A. 96-726, eff. 7-1-10; 97-1021, eff. 8-17-12.)
 
6    (225 ILCS 427/70)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 70. Penalty for insufficient funds; payments. Any
9person who delivers a check or other payment to the Department
10that is returned to the Department unpaid by the financial
11institution upon which it is drawn shall pay to the Department,
12in addition to the amount already owed to the Department, a
13fine of $50. The Department shall notify the person that
14payment of fees and fines shall be paid to the Department by
15certified check or money order within 30 calendar days after
16notification. If, after the expiration of 30 days from the date
17of the notification, the person has failed to submit the
18necessary remittance, the Department shall automatically
19terminate the license or deny the application, without hearing.
20If, after termination or denial, the person seeks a license,
21he, or she, or it shall apply to the Department for restoration
22or issuance of the license and pay all fees and fines due to
23the Department. The Department may establish a fee for the
24processing of an application for restoration of a license to
25pay all expenses of processing this application. The Secretary

 

 

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1may waive the fines due under this Section in individual cases
2where the Secretary finds that the fines would be unreasonable
3or unnecessarily burdensome.
4(Source: P.A. 96-726, eff. 7-1-10.)
 
5    (225 ILCS 427/75)
6    (Section scheduled to be repealed on January 1, 2020)
7    Sec. 75. Endorsement. The Department may issue a license
8as a licensed community association manager or supervising
9community association manager license, without the required
10examination, to an applicant licensed under the laws of another
11state if the requirements for licensure in that state are, on
12the date of licensure, substantially equal to the requirements
13of this Act or to a person who, at the time of his or her
14application for licensure, possessed individual qualifications
15that were substantially equivalent to the requirements then in
16force in this State. An applicant under this Section shall pay
17all of the required fees.
18    Applicants have 3 years from the date of application to
19complete the application process. If the process has not been
20completed within the 3 years, the application shall be denied,
21the fee shall be forfeited, and the applicant must reapply and
22meet the requirements in effect at the time of reapplication.
23(Source: P.A. 96-726, eff. 7-1-10.)
 
24    (225 ILCS 427/85)

 

 

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1    (Section scheduled to be repealed on January 1, 2020)
2    Sec. 85. Grounds for discipline; refusal, revocation, or
3suspension.
4    (a) The Department may refuse to issue or renew a license,
5or may revoke a license, or may suspend, place on probation,
6reprimand, suspend, or revoke any license fine, or take any
7other disciplinary or non-disciplinary action as the
8Department may deem proper and impose a fine , including fines
9not to exceed $10,000 for each violation upon , with regard to
10any licensee or applicant under this Act or any person or
11entity who holds himself, herself, or itself out as an
12applicant or licensee for any one or combination of the
13following causes:
14        (1) Material misstatement in furnishing information to
15    the Department.
16        (2) Violations of this Act or its rules.
17        (3) Conviction of or entry of a plea of guilty or plea
18    of nolo contendere to any crime that is a felony or a
19    misdemeanor under the laws of the United States, or any
20    state, or any other jurisdiction territory thereof or entry
21    of an administrative sanction by a government agency in
22    this State or any other jurisdiction. Action taken under
23    this paragraph (3) for a misdemeanor or an administrative
24    sanction is limited to a misdemeanor or administrative
25    sanction that has as of which an essential element is
26    dishonesty or fraud, that involves larceny, embezzlement,

 

 

09800HB0595ham001- 26 -LRB098 03417 MGM 42958 a

1    or obtaining money, property, or credit by false pretenses
2    or by means of a confidence game, or that is directly
3    related to the practice of the profession.
4        (4) Making any misrepresentation for the purpose of
5    obtaining a license or violating any provision of this Act
6    or its rules.
7        (5) Professional incompetence.
8        (6) Gross negligence.
9        (7) Aiding or assisting another person in violating any
10    provision of this Act or its rules.
11        (8) Failing, within 30 days, to provide information in
12    response to a request made by the Department.
13        (9) Engaging in dishonorable, unethical, or
14    unprofessional conduct of a character likely to deceive,
15    defraud or harm the public as defined by the rules of the
16    Department, or violating the rules of professional conduct
17    adopted by the Department.
18        (10) Habitual or excessive use or addiction to alcohol,
19    narcotics, stimulants, or any other chemical agent or drug
20    that results in the inability to practice with reasonable
21    judgment, skill, or safety.
22        (11) Having been disciplined by another state, the
23    District of Columbia, a territory, a foreign nation, or a
24    governmental agency authorized to impose discipline
25    Discipline by another state, territory, or country if at
26    least one of the grounds for the discipline is the same or

 

 

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1    substantially equivalent of one of the grounds for which a
2    licensee may be disciplined under this Act. A certified
3    copy of the record of the action by the other state or
4    jurisdiction shall be prima facie evidence thereof to those
5    set forth in this Act.
6        (12) Directly or indirectly giving to or receiving from
7    any person, firm, corporation, partnership or association
8    any fee, commission, rebate, or other form of compensation
9    for any professional services not actually or personally
10    rendered.
11        (13) A finding by the Department that the licensee,
12    after having his, or her, or its license placed on
13    probationary status, has violated the terms of probation.
14        (14) Willfully making or filing false records or
15    reports relating to a licensee's practice, including but
16    not limited to false records filed with any State or
17    federal agencies or departments.
18        (15) Being named as a perpetrator in an indicated
19    report by the Department of Children and Family Services
20    under the Abused and Neglected Child Reporting Act and upon
21    proof by clear and convincing evidence that the licensee
22    has caused a child to be an abused child or neglected child
23    as defined in the Abused and Neglected Child Reporting Act.
24        (16) Physical illness or mental illness or impairment,
25    including, but not limited to, deterioration through the
26    aging process or loss of motor skill that results in the

 

 

09800HB0595ham001- 28 -LRB098 03417 MGM 42958 a

1    inability to practice the profession with reasonable
2    judgment, skill, or safety.
3        (17) Solicitation of professional services by using
4    false or misleading advertising.
5        (18) A finding that licensure has been applied for or
6    obtained by fraudulent means.
7        (19) Practicing or attempting to practice under a name
8    other than the full name as shown on the license or any
9    other legally authorized name.
10        (20) Gross overcharging for professional services
11    including, but not limited to, (i) collection of fees or
12    moneys for services that are not rendered; and (ii)
13    charging for services that are not in accordance with the
14    contract between the licensee and the community
15    association.
16        (21) Improper commingling of personal and client funds
17    in violation of this Act or any rules promulgated thereto.
18        (22) Failing to account for or remit any moneys or
19    documents coming into the licensee's possession that
20    belong to another person or entity.
21        (23) Giving differential treatment to a person that is
22    to that person's detriment because of race, color, creed,
23    sex, religion, or national origin.
24        (24) Performing and charging for services without
25    reasonable authorization to do so from the person or entity
26    for whom service is being provided.

 

 

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1        (25) Failing to make available to the Department, upon
2    request, any books, records, or forms required by this Act.
3        (26) Purporting to be a supervising community
4    association manager licensee-in-charge of a firm an agency
5    without active participation in the firm agency.
6        (27) Failing to make available to the Department at the
7    time of the request any indicia of licensure or
8    registration issued under this Act.
9        (28) Failing to maintain and deposit funds belonging to
10    a community association in accordance with subsection (b)
11    of Section 55 of this Act.
12        (29) Violating the terms of a disciplinary order issued
13    by the Department.
14    (b) In accordance with subdivision (a)(5) of Section 15 of
15the Department of Professional Regulation Law of the Civil
16Administrative Code of Illinois (20 ILCS 2105/2105-15), the
17Department shall deny a license or renewal authorized by this
18Act to a person who has defaulted on an educational loan or
19scholarship provided or guaranteed by the Illinois Student
20Assistance Commission or any governmental agency of this State.
21    (c) The determination by a circuit court that a licensee is
22subject to involuntary admission or judicial admission, as
23provided in the Mental Health and Developmental Disabilities
24Code, operates as an automatic suspension. The suspension will
25terminate only upon a finding by a court that the patient is no
26longer subject to involuntary admission or judicial admission

 

 

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1and the issuance of an order so finding and discharging the
2patient, and upon the recommendation of the Board to the
3Secretary that the licensee be allowed to resume his or her
4practice as a licensed community association manager.
5    (d) In accordance with subsection (g) of Section 15 of the
6Department of Professional Regulation Law of the Civil
7Administrative Code of Illinois (20 ILCS 2105/2105-15), the
8Department may refuse to issue or renew or may suspend the
9license of any person who fails to file a return, to pay the
10tax, penalty, or interest shown in a filed return, or to pay
11any final assessment of tax, penalty, or interest, as required
12by any tax Act administered by the Department of Revenue, until
13such time as the requirements of that tax Act are satisfied.
14    (e) In accordance with subdivision (a)(5) of Section 15 of
15the Department of Professional Regulation Law of the Civil
16Administrative Code of Illinois (20 ILCS 2105/2105-15) and in
17cases where the Department of Healthcare and Family Services
18(formerly Department of Public Aid) has previously determined
19that a licensee or a potential licensee is more than 30 days
20delinquent in the payment of child support and has subsequently
21certified the delinquency to the Department may refuse to issue
22or renew or may revoke or suspend that person's license or may
23take other disciplinary action against that person based solely
24upon the certification of delinquency made by the Department of
25Healthcare and Family Services.
26    (f) In enforcing this Section, the Department or Board upon

 

 

09800HB0595ham001- 31 -LRB098 03417 MGM 42958 a

1a showing of a possible violation may compel a licensee or an
2individual licensed to practice under this Act, or who has
3applied for licensure under this Act, to submit to a mental or
4physical examination, or both, as required by and at the
5expense of the Department. The Department or Board may order
6the examining physician to present testimony concerning the
7mental or physical examination of the licensee or applicant. No
8information shall be excluded by reason of any common law or
9statutory privilege relating to communications between the
10licensee or applicant and the examining physician. The
11examining physicians shall be specifically designated by the
12Board or Department. The individual to be examined may have, at
13his or her own expense, another physician of his or her choice
14present during all aspects of this examination. Failure of an
15individual to submit to a mental or physical examination, when
16directed, shall be grounds for suspension of his or her license
17or denial of his or her application or renewal until the
18individual submits to the examination if the Department finds,
19after notice and hearing, that the refusal to submit to the
20examination was without reasonable cause.
21    If the Department or Board finds an individual unable to
22practice because of the reasons set forth in this Section, the
23Department or Board may require that individual to submit to
24care, counseling, or treatment by physicians approved or
25designated by the Department or Board, as a condition, term, or
26restriction for continued, reinstated, or renewed licensure to

 

 

09800HB0595ham001- 32 -LRB098 03417 MGM 42958 a

1practice; or, in lieu of care, counseling, or treatment, the
2Department may file, or the Board may recommend to the
3Department to file, a complaint to immediately suspend, revoke,
4deny, or otherwise discipline the license of the individual. An
5individual whose license was granted, continued, reinstated,
6renewed, disciplined or supervised subject to such terms,
7conditions, or restrictions, and who fails to comply with such
8terms, conditions, or restrictions, shall be referred to the
9Secretary for a determination as to whether the individual
10shall have his or her license suspended immediately, pending a
11hearing by the Department.
12    In instances in which the Secretary immediately suspends a
13person's license under this Section, a hearing on that person's
14license must be convened by the Department within 30 days after
15the suspension and completed without appreciable delay. The
16Department and Board shall have the authority to review the
17subject individual's record of treatment and counseling
18regarding the impairment to the extent permitted by applicable
19federal statutes and regulations safeguarding the
20confidentiality of medical records.
21    An individual licensed under this Act and affected under
22this Section shall be afforded an opportunity to demonstrate to
23the Department or Board that he or she can resume practice in
24compliance with acceptable and prevailing standards under the
25provisions of his or her license.
26(Source: P.A. 96-726, eff. 7-1-10; 97-333, eff. 8-12-11.)
 

 

 

09800HB0595ham001- 33 -LRB098 03417 MGM 42958 a

1    (225 ILCS 427/87)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 87. Suspension of license for failure to pay
4restitution. The Department, without further process or
5hearing, shall suspend the license or other authorization to
6practice of any person issued under this Act who has been
7certified by court order as not having paid restitution to a
8person under Section 8A-3.5 of the Illinois Public Aid Code or
9under Section 17-10.5 or 46-1 of the Criminal Code of 1961 or
10the Criminal Code of 2012. A person whose license or other
11authorization to practice is suspended under this Section is
12prohibited from engaging in the practice of community
13association management practicing until the restitution is
14made in full.
15(Source: P.A. 96-726, eff. 7-1-10; 97-1150, eff. 1-25-13.)
 
16    (225 ILCS 427/92)
17    (Section scheduled to be repealed on January 1, 2020)
18    Sec. 92. Unlicensed practice; violation; civil penalty.
19    (a) Any person, entity or other business who practices,
20offers to practice, attempts to practice, or holds himself,
21herself or itself out to practice as a community association
22manager or community association management firm management
23service or provide services as a community association manager
24or community association management firm to any community

 

 

09800HB0595ham001- 34 -LRB098 03417 MGM 42958 a

1association in this State without being licensed under this Act
2shall, in addition to any other penalty provided by law, pay a
3civil penalty to the Department in an amount not to exceed
4$10,000 for each offense, as determined by the Department. The
5civil penalty shall be assessed by the Department after a
6hearing is held in accordance with the provisions set forth in
7this Act regarding the provision of a hearing for the
8discipline of a licensee.
9    (b) The Department may investigate any and all unlicensed
10activity.
11    (c) The civil penalty shall be paid within 60 days after
12the effective date of the order imposing the civil penalty. The
13order shall constitute a judgment and may be filed and
14execution had thereon in the same manner as any judgment from
15any court of record.
16(Source: P.A. 96-726, eff. 7-1-10.)
 
17    (225 ILCS 427/135)
18    (Section scheduled to be repealed on January 1, 2020)
19    Sec. 135. License surrender. Upon the revocation or
20suspension of any license authorized under this Act, the
21licensee shall immediately surrender the license or licenses to
22the Department. If the licensee fails to do so, the Department
23has the right to seize the license or licenses.
24(Source: P.A. 96-726, eff. 7-1-10.)
 

 

 

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1    (225 ILCS 427/155)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 155. Violations; penalties.
4    (a) A person who violates any of the following provisions
5shall be guilty of a Class A misdemeanor; a person who commits
6a second or subsequent violation of these provisions is guilty
7of a Class 4 felony:
8        (1) The practice of or attempted practice of or holding
9    out as available to practice as a community association
10    manager, or supervising community association manager
11    without a license.
12        (2) Operation of or attempt to operate a community
13    association management firm Community Association
14    Management Agency without a firm an agency license or a
15    designated supervising community association manager.
16        (3) The obtaining of or the attempt to obtain any
17    license or authorization issued under this Act by
18    fraudulent misrepresentation.
19    (b) Whenever a licensee is convicted of a felony related to
20the violations set forth in this Section, the clerk of the
21court in any jurisdiction shall promptly report the conviction
22to the Department and the Department shall immediately revoke
23any license authorized under this Act as a community
24association manager held by that licensee. The licensee
25individual shall not be eligible for licensure under this Act
26until at least 10 years have elapsed since the time of full

 

 

09800HB0595ham001- 36 -LRB098 03417 MGM 42958 a

1discharge from any sentence imposed for a felony conviction. If
2any person in making any oath or affidavit required by this Act
3swears falsely, the person is guilty of perjury and may be
4punished accordingly.
5(Source: P.A. 96-726, eff. 7-1-10.)
 
6    (225 ILCS 427/165)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 165. Home rule. The regulation and licensing of
9community association managers, supervising community
10association managers, and community association management
11firms Community Association Management Agencies are exclusive
12powers and functions of the State. A home rule unit may not
13regulate or license community association managers,
14supervising community association managers, or community
15association management firms and Community Association
16Management Agencies. This Section is a denial and limitation of
17home rule powers and functions under subsection (h) of Section
186 of Article VII of the Illinois Constitution.
19(Source: P.A. 96-726, eff. 7-1-10.)
 
20    Section 99. Effective date. This Act takes effect July 1,
212013.".