Illinois General Assembly - Full Text of SB0641
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Full Text of SB0641  93rd General Assembly

SB0641sam002 93rd General Assembly


093_SB0641sam002

 










                                     LRB093 06336 RLC 12832 a

 1                    AMENDMENT TO SENATE BILL 641

 2        AMENDMENT NO.     .  Amend Senate Bill 641  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section   5.  The   Sex   Offender  and  Child  Murderer
 5    Community Notification Law is amended by adding  Section  116
 6    as follows:

 7        (730 ILCS 152/116 new)
 8        Sec.    116.  Informational    notice    in   residential
 9    agreements. Every written residential lease agreement  (other
10    than  for  a  single-family dwelling) and every agreement for
11    the purchase of a condominium  unit  or  housing  cooperative
12    unit must contain a notice stating how a renter or unit owner
13    can  obtain  information  about persons who are registered as
14    sex offenders under the Sex Offender  Registration  Act.  The
15    notice  must  include  information  describing  how to access
16    information maintained by local law enforcement  agencies  or
17    in  the Statewide Sex Offender Database that is posted on the
18    Department of State Police Web site.

19        Section  10.  The Condominium Property Act is amended  by
20    changing Section 18 as follows:
 
                            -2-      LRB093 06336 RLC 12832 a
 1        (765 ILCS 605/18) (from Ch. 30, par. 318)
 2        Sec.  18.  Contents  of bylaws.  The bylaws shall provide
 3    for at least the following:

 4        (a) (1)  The election from among the  unit  owners  of  a
 5        board  of  managers,  the  number of persons constituting
 6        such board, and that the terms of at least  one-third  of
 7        the  members  of the board shall expire annually and that
 8        all members of the board shall be elected  at  large.  If
 9        there  are  multiple owners of a single unit, only one of
10        the multiple owners shall  be  eligible  to  serve  as  a
11        member of the board at any one time.
12             (2)  the powers and duties of the board;
13             (3)  the compensation, if any, of the members of the
14        board;
15             (4)  the method of removal from office of members of
16        the board;
17             (5)  that  the  board  may  engage the services of a
18        manager or managing agent;
19             (6)  that each unit owner shall receive, at least 30
20        days prior to  the  adoption  thereof  by  the  board  of
21        managers,  a  copy of the proposed annual budget together
22        with an indication of which  portions  are  intended  for
23        reserves,  capital  expenditures or repairs or payment of
24        real estate taxes;
25             (7)  that  the  board  of  managers  shall  annually
26        supply to all unit owners an itemized accounting  of  the
27        common  expenses for the preceding year actually incurred
28        or paid, together with an indication  of  which  portions
29        were  for  reserves,  capital  expenditures or repairs or
30        payment of real estate taxes and with a tabulation of the
31        amounts collected pursuant to the budget  or  assessment,
32        and  showing  the  net  excess  or deficit of income over
33        expenditures plus reserves;
34             (8) (i)  that each unit owner shall receive  notice,
 
                            -3-      LRB093 06336 RLC 12832 a
 1        in  the  same  manner  as  is  provided  in  this Act for
 2        membership meetings, of  any  meeting  of  the  board  of
 3        managers  concerning  the adoption of the proposed annual
 4        budget and regular assessments  pursuant  thereto  or  to
 5        adopt  a  separate (special) assessment, (ii) that except
 6        as provided in  subsection  (iv)  below,  if  an  adopted
 7        budget  or  any  separate assessment adopted by the board
 8        would result in the  sum  of  all  regular  and  separate
 9        assessments  payable in the current fiscal year exceeding
10        115% of the sum of all regular and  separate  assessments
11        payable  during  the  preceding fiscal year, the board of
12        managers, upon written petition by unit  owners  with  20
13        percent  of the votes of the association delivered to the
14        board within 14 days of the board action,  shall  call  a
15        meeting  of the unit owners within 30 days of the date of
16        delivery of  the  petition  to  consider  the  budget  or
17        separate assessment; unless a majority of the total votes
18        of  the unit owners are cast at the meeting to reject the
19        budget or separate assessment, it is ratified, (iii) that
20        any common expense not set forth in  the  budget  or  any
21        increase  in  assessments  over the amount adopted in the
22        budget shall be  separately  assessed  against  all  unit
23        owners,  (iv)  that separate assessments for expenditures
24        relating to emergencies or mandated by law may be adopted
25        by the board of managers without being  subject  to  unit
26        owner  approval  or  the provisions of item (ii) above or
27        item (v) below.  As used  herein,  "emergency"  means  an
28        immediate  danger  to  the  structural  integrity  of the
29        common  elements  or  to  the  life,  health,  safety  or
30        property of the unit owners,  (v)  that  assessments  for
31        additions  and  alterations  to the common elements or to
32        association-owned property not included  in  the  adopted
33        annual  budget,  shall  be  separately  assessed  and are
34        subject to approval of two-thirds of the total  votes  of
 
                            -4-      LRB093 06336 RLC 12832 a
 1        all  unit  owners,  (vi)  that  the board of managers may
 2        adopt separate assessments payable  over  more  than  one
 3        fiscal  year.  With respect to multi-year assessments not
 4        governed by items (iv) and (v), the entire amount of  the
 5        multi-year  assessment  shall  be  deemed  considered and
 6        authorized  in  the  first  fiscal  year  in  which   the
 7        assessment is approved;
 8             (9)  that meetings of the board of managers shall be
 9        open  to  any  unit  owner, except for the portion of any
10        meeting held (i) to discuss  litigation  when  an  action
11        against  or  on  behalf of the particular association has
12        been filed and is pending in a  court  or  administrative
13        tribunal,  or  when the board of managers finds that such
14        an action is  probable  or  imminent,  (ii)  to  consider
15        information    regarding   appointment,   employment   or
16        dismissal of an employee, or (iii) to discuss  violations
17        of  rules  and  regulations  of the association or a unit
18        owner's unpaid share of common expenses; that any vote on
19        these matters shall be taken  at  a  meeting  or  portion
20        thereof  open  to any unit owner; that any unit owner may
21        record the proceedings at meetings  or  portions  thereof
22        required  to  be  open by this Act by tape, film or other
23        means; that the board may prescribe reasonable rules  and
24        regulations  to govern the right to make such recordings,
25        that notice of such meetings shall be mailed or delivered
26        at least 48 hours prior thereto, unless a written  waiver
27        of   such  notice  is  signed  by  the  person or persons
28        entitled to such  notice  pursuant  to  the  declaration,
29        bylaws, other condominium instrument, or provision of law
30        other   than   this  subsection  before  the  meeting  is
31        convened, and that copies of notices of meetings  of  the
32        board  of  managers  shall  be  posted  in  entranceways,
33        elevators, or other conspicuous places in the condominium
34        at  least  48  hours prior to the meeting of the board of
 
                            -5-      LRB093 06336 RLC 12832 a
 1        managers except where there is no common entranceway  for
 2        7  or more units, the board of managers may designate one
 3        or more locations in the proximity of these  units  where
 4        the notices of meetings shall be posted;
 5             (10)  that  the  board  shall  meet at least 4 times
 6        annually;
 7             (11)  that no member of the board or  officer  shall
 8        be  elected  for  a  term  of more than 2 years, but that
 9        officers and board members may succeed themselves;
10             (12)  the designation of  an  officer  to  mail  and
11        receive all notices and execute amendments to condominium
12        instruments  as  provided  for  in  this  Act  and in the
13        condominium instruments;
14             (13)  the method of filling vacancies on  the  board
15        which  shall  include authority for the remaining members
16        of the board to fill the vacancy by two-thirds vote until
17        the next annual meeting of unit owners or  for  a  period
18        terminating no later than 30 days following the filing of
19        a petition signed by unit owners holding 20% of the votes
20        of  the  association  requesting  a  meeting  of the unit
21        owners to fill the vacancy for the balance of  the  term,
22        and that a meeting of the unit owners shall be called for
23        purposes  of filling a vacancy on the board no later than
24        30 days following the filing of a petition signed by unit
25        owners holding  20%  of  the  votes  of  the  association
26        requesting  such  a  meeting,  and  the method of filling
27        vacancies among  the  officers  that  shall  include  the
28        authority  for  the  members  of  the  board  to fill the
29        vacancy for the unexpired portion of the term;
30             (14)  what percentage of the board of  managers,  if
31        other than a majority, shall constitute a quorum;
32             (15)  provisions concerning notice of board meetings
33        to members of the board;
34             (16)  the  board  of  managers  may not enter into a
 
                            -6-      LRB093 06336 RLC 12832 a
 1        contract  with  a  current  board  member   or   with   a
 2        corporation  or  partnership in which a board member or a
 3        member of the board member's immediate family has 25%  or
 4        more  interest,  unless  notice  of  intent  to enter the
 5        contract is given to unit owners within 20 days  after  a
 6        decision  is made to enter into the contract and the unit
 7        owners are afforded an opportunity by filing a  petition,
 8        signed  by  20%  of  the  unit owners, for an election to
 9        approve or disapprove the contract; such  petition  shall
10        be  filed  within  20  days  after  such  notice and such
11        election shall be held within 30 days  after  filing  the
12        petition;  for  purposes  of  this  subsection,  a  board
13        member's   immediate  family  means  the  board  member's
14        spouse, parents, and children;
15             (17)  that the board of managers may disseminate  to
16        unit owners biographical and background information about
17        candidates  for  election  to the board if (i) reasonable
18        efforts to identify  all  candidates  are  made  and  all
19        candidates   are   given   an   opportunity   to  include
20        biographical   and   background   information   in    the
21        information  to  be disseminated; and (ii) the board does
22        not express a preference in favor of any candidate;
23             (18)  any proxy distributed for board  elections  by
24        the  board  of managers gives unit owners the opportunity
25        to designate any person as the proxy  holder,  and  gives
26        the  unit  owner  the opportunity to express a preference
27        for any of the known candidates for the board or to write
28        in a name;
29             (19)  that special meetings of the board of managers
30        can be called by the president or 25% of the  members  of
31        the board; and
32             (20)  that  the  board of managers may establish and
33        maintain a system of master metering  of  public  utility
34        services  and  collect  payments in connection therewith,
 
                            -7-      LRB093 06336 RLC 12832 a
 1        subject to the requirements of the Tenant Utility Payment
 2        Disclosure Act.

 3        (b) (1)  What percentage of the  unit  owners,  if  other
 4        than  20%,  shall  constitute a quorum provided that, for
 5        condominiums with 20 or more  units,  the  percentage  of
 6        unit owners constituting a quorum shall be 20% unless the
 7        unit owners holding a majority of the percentage interest
 8        in the association provide for a higher percentage;
 9             (2)  that  the  association  shall have one class of
10        membership;
11             (3)  that the members shall hold an annual  meeting,
12        one of the purposes of which shall be to elect members of
13        the board of managers;
14             (4)  the  method  of  calling  meetings  of the unit
15        owners;
16             (5)  that special meetings of  the  members  can  be
17        called  by the president, board of managers, or by 20% of
18        unit owners;
19             (6)  that written notice of any  membership  meeting
20        shall  be mailed or delivered giving members no less than
21        10 and no more than 30 days notice of the time, place and
22        purpose of such meeting;
23             (7)  that voting shall be on a percentage basis, and
24        that the percentage vote to which each unit  is  entitled
25        is  the percentage interest of the undivided ownership of
26        the common elements appurtenant  thereto,  provided  that
27        the  bylaws  may  provide  for approval by unit owners in
28        connection with matters where the requisite approval on a
29        percentage basis is not specified in  this  Act,  on  the
30        basis of one vote per unit;
31             (8)  that,  where  there is more than one owner of a
32        unit, if only one of the multiple owners is present at  a
33        meeting  of  the  association, he is entitled to cast all
34        the votes allocated to that unit, if more than one of the
 
                            -8-      LRB093 06336 RLC 12832 a
 1        multiple owners are present, the votes allocated to  that
 2        unit may be cast only in accordance with the agreement of
 3        a majority in interest of the multiple owners, unless the
 4        declaration  expressly  provides otherwise, that there is
 5        majority agreement if any one of the multiple owners cast
 6        the votes allocated to that unit  without  protest  being
 7        made promptly to the person presiding over the meeting by
 8        any of the other owners of the unit;
 9             (9)  that   unless  the Articles of Incorporation or
10        the bylaws otherwise provide, a unit owner  may  vote  by
11        proxy  executed  in  writing  by the unit owner or by his
12        duly authorized attorney in fact; that the proxy shall be
13        invalid after 11 months from the date of  its  execution,
14        unless  otherwise  provided  in the proxy, and that every
15        proxy must bear the date of execution;
16             (10)  that the association may, upon adoption of the
17        appropriate rules  by  the  board  of  managers,  conduct
18        elections  by  secret ballot whereby the voting ballot is
19        marked only with the percentage interest for the unit and
20        the vote itself, provided that the  board  further  adopt
21        rules  to  verify  the status of the unit owner issuing a
22        proxy or casting a ballot; and further, that a  candidate
23        for election to the board of managers or such candidate's
24        representative  shall have the right to be present at the
25        counting of ballots at such election;
26             (11)  that in the event of a resale of a condominium
27        unit the purchaser of a unit from a seller other than the
28        developer  pursuant  to  an  installment   contract   for
29        purchase  shall during such times as he or she resides in
30        the unit be counted  toward  a  quorum  for  purposes  of
31        election  of  members  of  the  board  of managers at any
32        meeting  of  the  unit  owners  called  for  purposes  of
33        electing members of the board, shall have  the  right  to
34        vote for the election of members of the board of managers
 
                            -9-      LRB093 06336 RLC 12832 a
 1        and  to  be elected to and serve on the board of managers
 2        unless the seller expressly retains in writing any or all
 3        of such rights.  In no event may the seller and purchaser
 4        both be counted toward a quorum, be permitted to vote for
 5        a particular office or be elected and serve on the board.
 6        Satisfactory evidence of the installment contact shall be
 7        made available to the association  or  its  agents.   For
 8        purposes  of this subsection, "installment contact" shall
 9        have the same meaning as set forth in Section  1  (e)  of
10        "An   Act  relating  to  installment  contracts  to  sell
11        dwelling  structures",  approved  August  11,  1967,   as
12        amended;
13             (12)  the  method  by  which  matters subject to the
14        approval of unit owners set forth in this Act, or in  the
15        condominium  instruments,  will  be submitted to the unit
16        owners at special membership  meetings  called  for  such
17        purposes; and
18             (13)  that  matters  subject to the affirmative vote
19        of not less than 2/3 of the votes of  unit  owners  at  a
20        meeting  duly called for that purpose, shall include, but
21        not be limited to:
22                  (i)  merger    or    consolidation    of    the
23             association;
24                  (ii)  sale,   lease,   exchange,    or    other
25             disposition  (excluding  the  mortgage or pledge) of
26             all, or substantially all of the property and assets
27             of the association; and
28                  (iii)  the purchase or sale of land or of units
29             on behalf of all unit owners.
30        (c)  Election of a president  from  among  the  board  of
31    managers, who shall preside over the meetings of the board of
32    managers and of the unit owners.
33        (d)  Election  of  a  secretary  from  among the board of
34    managers, who shall keep the minutes of all meetings  of  the
 
                            -10-     LRB093 06336 RLC 12832 a
 1    board  of  managers  and of the unit owners and who shall, in
 2    general, perform all the duties incident  to  the  office  of
 3    secretary.
 4        (e)  Election  of  a  treasurer  from  among the board of
 5    managers, who shall keep the financial records and  books  of
 6    account.
 7        (f)  Maintenance,  repair  and  replacement of the common
 8    elements and  payments  therefor,  including  the  method  of
 9    approving payment vouchers.
10        (g)  An  association  with  30 or more units shall obtain
11    and maintain fidelity insurance covering persons who  control
12    or  disburse  funds of the association for the maximum amount
13    of coverage available to protect  funds  in  the  custody  or
14    control of the association plus the association reserve fund.
15    All  management companies which are responsible for the funds
16    held or administered by the association  shall  maintain  and
17    furnish  to  the  association a fidelity bond for the maximum
18    amount of coverage available to protect funds in the  custody
19    of the management company at any time.  The association shall
20    bear  the  cost  of the fidelity insurance and fidelity bond,
21    unless otherwise provided by contract between the association
22    and a management  company.   The  association  shall  be  the
23    direct  obligee  of  any  such  fidelity  bond.  A management
24    company holding reserve funds of an association shall at  all
25    times  maintain  a  separate  account  for  each association,
26    provided, however, that for investment purposes, the Board of
27    Managers of an association may authorize a management company
28    to maintain the  association's  reserve  funds  in  a  single
29    interest   bearing   account  with  similar  funds  of  other
30    associations.  The management  company  shall  at  all  times
31    maintain  records  identifying all moneys of each association
32    in such investment account. The management company  may  hold
33    all  operating  funds  of  associations which it manages in a
34    single operating account but  shall  at  all  times  maintain
 
                            -11-     LRB093 06336 RLC 12832 a
 1    records  identifying  all  moneys of each association in such
 2    operating account. Such operating and reserve funds  held  by
 3    the  management  company  for  the  association  shall not be
 4    subject to attachment  by  any  creditor  of  the  management
 5    company.
 6        For  the  purpose of this subsection a management company
 7    shall be defined as a person,  partnership,  corporation,  or
 8    other legal entity entitled to transact business on behalf of
 9    others,  acting on behalf of or as an agent for a unit owner,
10    unit owners or association of unit owners for the purpose  of
11    carrying   out   the   duties,  responsibilities,  and  other
12    obligations necessary  for  the  day  to  day  operation  and
13    management of any property subject to this Act.  For purposes
14    of  this  subsection, the term "fiduciary insurance coverage"
15    shall be defined as both a fidelity bond  and  directors  and
16    officers  liability  coverage,  the fidelity bond in the full
17    amount of association funds  and  association  reserves  that
18    will  be in the custody of the association, and the directors
19    and officers liability  coverage  at  a  level  as  shall  be
20    determined  to be reasonable by the board of managers, if not
21    otherwise established by the declaration or by laws.
22        Until  one  year  after  the  effective  date   of   this
23    amendatory  Act  of  1985,  if  a condominium association has
24    reserves plus assessments in excess of  $250,000  and  cannot
25    reasonably  obtain  100%  fidelity  bond  coverage  for  such
26    amount,  then  it  must  obtain  a  fidelity bond coverage of
27    $250,000.
28        (h)  Method  of  estimating  the  amount  of  the  annual
29    budget, and the manner of assessing and collecting  from  the
30    unit   owners  their  respective  shares  of  such  estimated
31    expenses, and of any other expenses lawfully agreed upon.
32        (i)  That upon 10 days notice to the manager or board  of
33    managers  and  payment  of  a  reasonable fee, any unit owner
34    shall be furnished a statement of his account  setting  forth
 
                            -12-     LRB093 06336 RLC 12832 a
 1    the amount of any unpaid assessments or other charges due and
 2    owing from such owner.
 3        (j)  Designation  and  removal of personnel necessary for
 4    the  maintenance,  repair  and  replacement  of  the   common
 5    elements.
 6        (k)  Such restrictions on and requirements respecting the
 7    use  and  maintenance  of the units and the use of the common
 8    elements, not set forth in the declaration, as  are  designed
 9    to  prevent  unreasonable  interference with the use of their
10    respective units and of the common elements  by  the  several
11    unit owners.
12        (l)  Method  of  adopting  and of amending administrative
13    rules and regulations governing the operation and use of  the
14    common elements.
15        (m)  The  percentage of votes required to modify or amend
16    the bylaws, but each one of the particulars set forth in this
17    section shall always be embodied in the bylaws.
18        (n) (i)  The provisions of  this  Act,  the  declaration,
19    bylaws,   other   condominium   instruments,  and  rules  and
20    regulations that relate to the use of the individual unit  or
21    the common elements shall be applicable to any person leasing
22    a  unit  and  shall be deemed to be incorporated in any lease
23    executed or renewed on or after the effective  date  of  this
24    amendatory Act of 1984. (ii) With regard to any lease entered
25    into  subsequent to the effective date of this amendatory Act
26    of 1989, the unit owner leasing the unit shall deliver a copy
27    of the signed lease to the board or if the lease is  oral,  a
28    memorandum of the lease, not later than the date of occupancy
29    or 10 days after the lease is signed, whichever occurs first.
30    In  addition  to  any  other  remedies,  by  filing an action
31    jointly against the tenant and the unit owner, an association
32    may seek to enjoin a tenant from occupying a unit or seek  to
33    evict a tenant under the provisions of Article IX of the Code
34    of  Civil Procedure for failure of the lessor-owner to comply
 
                            -13-     LRB093 06336 RLC 12832 a
 1    with the leasing requirements prescribed by this  Section  or
 2    by  the  declaration,  bylaws, and rules and regulations. The
 3    board of managers may proceed directly against a  tenant,  at
 4    law  or  in  equity, or under the provisions of Article IX of
 5    the Code of Civil Procedure, for any other breach  by  tenant
 6    of any covenants, rules, regulations or bylaws.
 7        (o)  The  association  shall have no authority to forbear
 8    the payment of assessments by any unit owner.
 9        (p)  That when 30% or fewer  of  the  units,  by  number,
10    possess  over  50%  in  the  aggregate  of  the  votes in the
11    association, any percentage vote of members specified  herein
12    or in the condominium instruments shall require the specified
13    percentage  by  number  of units rather than by percentage of
14    interest in the common elements allocated to units that would
15    otherwise be applicable.
16        (q)  That  a  unit  owner  may  not   assign,   delegate,
17    transfer,  surrender,  or avoid the duties, responsibilities,
18    and  liabilities  of  a  unit  owner  under  this  Act,   the
19    condominium  instruments, or the rules and regulations of the
20    Association;  and  that   such   an   attempted   assignment,
21    delegation, transfer, surrender, or avoidance shall be deemed
22    void.
23        (r)  A  notice  stating  how  a  unit  owner  can  obtain
24    information about persons who are registered as sex offenders
25    under  the  Sex  Offender  Registration  Act. The notice must
26    include information  describing  how  to  access  information
27    maintained  by  local  law  enforcement  agencies  or  in the
28    Statewide  Sex  Offender  Database  that  is  posted  on  the
29    Department of State Police Web site.
30        The provisions of this  Section  are  applicable  to  all
31    condominium instruments recorded under this Act.  Any portion
32    of   a   condominium  instrument  which  contains  provisions
33    contrary to these provisions shall be void as against  public
34    policy  and  ineffective.  Any such instrument which fails to
 
                            -14-     LRB093 06336 RLC 12832 a
 1    contain the provisions required  by  this  Section  shall  be
 2    deemed to incorporate such provisions by operation of law.
 3    (Source:  P.A.  88-135;  88-417; 88-626, eff. 9-9-94; 88-670,
 4    eff. 12-2-94; 89-41, eff. 6-23-95.)".