Rep. Jim Sacia

Filed: 3/13/2013

 

 


 

 


 
09800HB1773ham002LRB098 05732 HEP 43002 a

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 1-30 and 1-55 as follows:
 
6    (765 ILCS 160/1-30)
7    Sec. 1-30. Board duties and obligations; records.
8    (a) The board shall meet at least 3 4 times annually.
9    (b) A member of the board of the common interest community
10association may not enter into a contract with a current board
11member, or with a corporation or partnership in which a board
12member or a member of his or her immediate family has 25% or
13more interest, unless notice of intent to enter into the
14contract is given to members within 20 days after a decision is
15made to enter into the contract and the members are afforded an
16opportunity by filing a petition, signed by 20% of the

 

 

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1membership, for an election to approve or disapprove the
2contract; such petition shall be filed within 20 days after
3such notice and such election shall be held within 30 days
4after filing the petition. For purposes of this subsection, a
5board member's immediate family means the board member's
6spouse, parents, and children.
7    (c) The bylaws shall provide for the maintenance, repair,
8and replacement of the common areas and payments therefor,
9including the method of approving payment vouchers.
10    (d) (Blank).
11    (e) The association may engage the services of a manager or
12management company.
13    (f) The association shall have one class of membership
14unless the declaration or bylaws provide otherwise; however,
15this subsection (f) shall not be construed to limit the
16operation of subsection (c) of Section 1-20 of this Act.
17    (g) The board shall have the power, after notice and an
18opportunity to be heard, to levy and collect reasonable fines
19from members or unit owners for violations of the declaration,
20bylaws, and rules and regulations of the common interest
21community association.
22    (h) Other than attorney's fees and court or arbitration
23costs, no fees pertaining to the collection of a member's or
24unit owner's financial obligation to the association,
25including fees charged by a manager or managing agent, shall be
26added to and deemed a part of a member's or unit owner's

 

 

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1respective share of the common expenses unless: (i) the
2managing agent fees relate to the costs to collect common
3expenses for the association; (ii) the fees are set forth in a
4contract between the managing agent and the association; and
5(iii) the authority to add the management fees to a member's or
6unit owner's respective share of the common expenses is
7specifically stated in the declaration or bylaws of the
8association.
9    (i) Board records.
10        (1) The board shall maintain the following records of
11    the association and make them available for examination and
12    copying at convenient hours of weekdays by any member or
13    unit owner in a common interest community subject to the
14    authority of the board, their mortgagees, and their duly
15    authorized agents or attorneys:
16            (i) Copies of the recorded declaration, other
17        community instruments, other duly recorded covenants
18        and bylaws and any amendments, articles of
19        incorporation, annual reports, and any rules and
20        regulations adopted by the board shall be available.
21        Prior to the organization of the board, the developer
22        shall maintain and make available the records set forth
23        in this paragraph (i) for examination and copying.
24            (ii) Detailed and accurate records in
25        chronological order of the receipts and expenditures
26        affecting the common areas, specifying and itemizing

 

 

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1        the maintenance and repair expenses of the common areas
2        and any other expenses incurred, and copies of all
3        contracts, leases, or other agreements entered into by
4        the board shall be maintained.
5            (iii) The minutes of all meetings of the board
6        which shall be maintained for not less than 7 years.
7            (iv) With a written statement of a proper purpose,
8        ballots and proxies related thereto, if any, for any
9        election held for the board and for any other matters
10        voted on by the members, which shall be maintained for
11        not less than one year.
12            (v) With a written statement of a proper purpose,
13        such other records of the board as are available for
14        inspection by members of a not-for-profit corporation
15        pursuant to Section 107.75 of the General Not For
16        Profit Corporation Act of 1986 shall be maintained.
17            (vi) With respect to units owned by a land trust, a
18        living trust, or other legal entity, the trustee,
19        officer, or manager of the entity may designate, in
20        writing, a person to cast votes on behalf of the member
21        or unit owner and a designation shall remain in effect
22        until a subsequent document is filed with the
23        association.
24        (2) Where a request for records under this subsection
25    is made in writing to the board or its agent, failure to
26    provide the requested record or to respond within 30 days

 

 

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1    shall be deemed a denial by the board.
2        (3) A reasonable fee may be charged by the board for
3    the cost of retrieving and copying records properly
4    requested.
5        (4) If the board fails to provide records properly
6    requested under paragraph (1) of this subsection (i) within
7    the time period provided in that paragraph (1), the member
8    may seek appropriate relief and shall be entitled to an
9    award of reasonable attorney's fees and costs if the member
10    prevails and the court finds that such failure is due to
11    the acts or omissions of the board of managers or the board
12    of directors.
13    (j) The board shall have standing and capacity to act in a
14representative capacity in relation to matters involving the
15common areas or more than one unit, on behalf of the members or
16unit owners as their interests may appear.
17(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
1897-1090, eff. 8-24-12.)
 
19    (765 ILCS 160/1-55)
20    Sec. 1-55. Fidelity insurance. An association with 30 or
21more units shall obtain and maintain fidelity insurance
22covering persons who control or disburse funds of the
23association in an for the maximum amount of coverage that is
24commercially available or reasonably required to protect funds
25in the custody or control of the association. All management

 

 

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1companies which are responsible for the funds held or
2administered by the association shall maintain and furnish to
3the association a fidelity bond in an for the maximum amount of
4coverage that is commercially available or reasonably required
5to protect funds in the custody of the management company at
6any time. The association shall bear the cost of the fidelity
7insurance and fidelity bond, unless otherwise provided by
8contract between the association and a management company.
9(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)".