Rep. Jim Sacia

Filed: 3/7/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1773

2    AMENDMENT NO. ______. Amend House Bill 1773 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Common Interest Community Association Act
5is amended by changing Sections 1-25, 1-30, and 1-55 as
6follows:
 
7    (765 ILCS 160/1-25)
8    Sec. 1-25. Board of managers, board of directors, duties,
9elections, and voting.
10    (a) Elections shall be held in accordance with the
11community instruments, provided that an election shall be held
12no less frequently than once every 24 months, for the board of
13managers or board of directors from among the membership of a
14common interest community association.
15    (b) (Blank).
16    (c) The members of the board shall serve without

 

 

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1compensation, unless the community instruments indicate
2otherwise.
3    (d) No member of the board or officer shall be elected for
4a term of more than 4 years, but officers and board members may
5succeed themselves.
6    (e) If there is a vacancy on the board, the remaining
7members of the board may fill the vacancy by a two-thirds vote
8of the remaining board members until the next annual meeting of
9the membership or until members holding 20% of the votes of the
10association request a meeting of the members to fill the
11vacancy for the balance of the term. A meeting of the members
12shall be called for purposes of filling a vacancy on the board
13no later than 30 days following the filing of a petition signed
14by membership holding 20% of the votes of the association
15requesting such a meeting.
16    (f) There shall be an election of a:
17        (1) president from among the members of the board, who
18    shall preside over the meetings of the board and of the
19    membership;
20        (2) secretary from among the members of the board, who
21    shall keep the minutes of all meetings of the board and of
22    the membership and who shall, in general, perform all the
23    duties incident to the office of secretary; and
24        (3) treasurer from among the members of the board, who
25    shall keep the financial records and books of account.
26    (g) If no election is held to elect board members within

 

 

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1the time period specified in the bylaws, or within a reasonable
2amount of time thereafter not to exceed 90 days, then 20% of
3the members may bring an action to compel compliance with the
4election requirements specified in the bylaws. If the court
5finds that an election was not held to elect members of the
6board within the required period due to the bad faith acts or
7omissions of the board of managers or the board of directors,
8the members shall be entitled to recover their reasonable
9attorney's fees and costs from the association. If the relevant
10notice requirements have been met and an election is not held
11solely due to a lack of a quorum, then this subsection (g) does
12not apply.
13    (h) Where there is more than one owner of a unit and there
14is only one member vote associated with that unit, if only one
15of the multiple owners is present at a meeting of the
16membership, he or she is entitled to cast the member vote
17associated with that unit.
18    (h-5) A member may vote:
19        (1) by proxy executed in writing by the member or by
20    his or her duly authorized attorney in fact, provided,
21    however, that the proxy bears the date of execution. Unless
22    the community instruments or the written proxy itself
23    provide otherwise, proxies will not be valid for more than
24    11 months after the date of its execution; or
25        (2) by submitting an association-issued ballot in
26    person at the election meeting; or

 

 

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1        (3) by submitting an association-issued ballot to the
2    association or its designated agent by mail or other means
3    of delivery specified in the declaration or bylaws.
4    (i) The association may, upon adoption of the appropriate
5rules by the board, conduct elections by secret ballot,
6distributed by the association, whereby the voting ballot is
7marked only with the voting interest for the member and the
8vote itself, provided that the association shall further adopt
9rules to verify the status of the member casting a ballot and
10provided further that proxies shall not be allowed. A candidate
11for election to the board or such candidate's representative
12shall have the right to be present at the counting of ballots
13at such election.
14    (j) Upon proof of purchase, the purchaser of a unit from a
15seller other than the developer pursuant to an installment
16contract for purchase shall, during such times as he or she
17resides in the unit, be counted toward a quorum for purposes of
18election of members of the board at any meeting of the
19membership called for purposes of electing members of the
20board, shall have the right to vote for the members of the
21board of the common interest community association and to be
22elected to and serve on the board unless the seller expressly
23retains in writing any or all of such rights.
24(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
2597-1090, eff. 8-24-12.)
 

 

 

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1    (765 ILCS 160/1-30)
2    Sec. 1-30. Board duties and obligations; records.
3    (a) The board shall meet at least 3 4 times annually.
4    (b) A member of the board of the common interest community
5association may not enter into a contract with a current board
6member, or with a corporation or partnership in which a board
7member or a member of his or her immediate family has 25% or
8more interest, unless notice of intent to enter into the
9contract is given to members within 20 days after a decision is
10made to enter into the contract and the members are afforded an
11opportunity by filing a petition, signed by 20% of the
12membership, for an election to approve or disapprove the
13contract; such petition shall be filed within 20 days after
14such notice and such election shall be held within 30 days
15after filing the petition. For purposes of this subsection, a
16board member's immediate family means the board member's
17spouse, parents, and children.
18    (c) The bylaws shall provide for the maintenance, repair,
19and replacement of the common areas and payments therefor,
20including the method of approving payment vouchers.
21    (d) (Blank).
22    (e) The association may engage the services of a manager or
23management company.
24    (f) The association shall have one class of membership
25unless the declaration or bylaws provide otherwise; however,
26this subsection (f) shall not be construed to limit the

 

 

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1operation of subsection (c) of Section 1-20 of this Act.
2    (g) The board shall have the power, after notice and an
3opportunity to be heard, to levy and collect reasonable fines
4from members or unit owners for violations of the declaration,
5bylaws, and rules and regulations of the common interest
6community association.
7    (h) Other than attorney's fees and court or arbitration
8costs, no fees pertaining to the collection of a member's or
9unit owner's financial obligation to the association,
10including fees charged by a manager or managing agent, shall be
11added to and deemed a part of a member's or unit owner's
12respective share of the common expenses unless: (i) the
13managing agent fees relate to the costs to collect common
14expenses for the association; (ii) the fees are set forth in a
15contract between the managing agent and the association; and
16(iii) the authority to add the management fees to a member's or
17unit owner's respective share of the common expenses is
18specifically stated in the declaration or bylaws of the
19association.
20    (i) Board records.
21        (1) The board shall maintain the following records of
22    the association and make them available for examination and
23    copying at convenient hours of weekdays by any member or
24    unit owner in a common interest community subject to the
25    authority of the board, their mortgagees, and their duly
26    authorized agents or attorneys:

 

 

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1            (i) Copies of the recorded declaration, other
2        community instruments, other duly recorded covenants
3        and bylaws and any amendments, articles of
4        incorporation, annual reports, and any rules and
5        regulations adopted by the board shall be available.
6        Prior to the organization of the board, the developer
7        shall maintain and make available the records set forth
8        in this paragraph (i) for examination and copying.
9            (ii) Detailed and accurate records in
10        chronological order of the receipts and expenditures
11        affecting the common areas, specifying and itemizing
12        the maintenance and repair expenses of the common areas
13        and any other expenses incurred, and copies of all
14        contracts, leases, or other agreements entered into by
15        the board shall be maintained.
16            (iii) The minutes of all meetings of the board
17        which shall be maintained for not less than 7 years.
18            (iv) With a written statement of a proper purpose,
19        ballots and proxies related thereto, if any, for any
20        election held for the board and for any other matters
21        voted on by the members, which shall be maintained for
22        not less than one year.
23            (v) With a written statement of a proper purpose,
24        such other records of the board as are available for
25        inspection by members of a not-for-profit corporation
26        pursuant to Section 107.75 of the General Not For

 

 

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1        Profit Corporation Act of 1986 shall be maintained.
2            (vi) With respect to units owned by a land trust, a
3        living trust, or other legal entity, the trustee,
4        officer, or manager of the entity may designate, in
5        writing, a person to cast votes on behalf of the member
6        or unit owner and a designation shall remain in effect
7        until a subsequent document is filed with the
8        association.
9        (2) Where a request for records under this subsection
10    is made in writing to the board or its agent, failure to
11    provide the requested record or to respond within 30 days
12    shall be deemed a denial by the board.
13        (3) A reasonable fee may be charged by the board for
14    the cost of retrieving and copying records properly
15    requested.
16        (4) If the board fails to provide records properly
17    requested under paragraph (1) of this subsection (i) within
18    the time period provided in that paragraph (1), the member
19    may seek appropriate relief and shall be entitled to an
20    award of reasonable attorney's fees and costs if the member
21    prevails and the court finds that such failure is due to
22    the acts or omissions of the board of managers or the board
23    of directors.
24    (j) The board shall have standing and capacity to act in a
25representative capacity in relation to matters involving the
26common areas or more than one unit, on behalf of the members or

 

 

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1unit owners as their interests may appear.
2(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
397-1090, eff. 8-24-12.)
 
4    (765 ILCS 160/1-55)
5    Sec. 1-55. Fidelity insurance. An association with 30 or
6more units shall obtain and maintain fidelity insurance
7covering persons who control or disburse funds of the
8association for the maximum amount of coverage that is
9commercially available or reasonably required to protect funds
10in the custody or control of the association. All management
11companies which are responsible for the funds held or
12administered by the association shall maintain and furnish to
13the association a fidelity bond for the maximum amount of
14coverage that is commercially available or reasonably required
15to protect funds in the custody of the management company at
16any time. The association shall bear the cost of the fidelity
17insurance and fidelity bond, unless otherwise provided by
18contract between the association and a management company.
19(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)".