Illinois General Assembly - Full Text of SB0948
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Full Text of SB0948  100th General Assembly


Rep. André Thapedi

Filed: 6/24/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 948 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,
625, 30, 50, 55, 60, 70, 75, 85, 90, 92, 155, and 165 as follows:
7    (225 ILCS 427/5)
8    (Section scheduled to be repealed on January 1, 2020)
9    Sec. 5. Legislative intent. It is the intent of the General
10Assembly that this Act provide for the licensing and regulation
11of community association managers and community association
12management firms, ensure that those who hold themselves out as
13possessing professional qualifications to engage in the
14business of community association management are, in fact,
15qualified to render management services of a professional
16nature, and provide for the maintenance of high standards of



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1professional conduct by those licensed to provide community
2association management services.
3(Source: P.A. 98-365, eff. 1-1-14.)
4    (225 ILCS 427/10)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 10. Definitions. As used in this Act:
7    "Address of record" means the designated address recorded
8by the Department in the applicant's or licensee's application
9file or license file maintained by the Department's licensure
10maintenance unit. It is the duty of the applicant or licensee
11to inform the Department of any change of address, and such
12changes must be made either through the Department's website or
13by contacting the Department's licensure maintenance unit.
14    "Advertise" means, but is not limited to, issuing or
15causing to be distributed any card, sign or device to any
16person; or causing, permitting or allowing any sign or marking
17on or in any building, structure, newspaper, magazine or
18directory, or on radio or television; or advertising by any
19other means designed to secure public attention.
20    "Board" means the Illinois Community Association Manager
21Licensing and Disciplinary Board.
22    "Community association" means an association in which
23membership is a condition of ownership or shareholder interest
24of a unit in a condominium, cooperative, townhouse, villa, or
25other residential unit which is part of a residential



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1development plan and that is authorized to impose an
2assessment, rents, or other costs that may become a lien on the
3unit or lot.
4    "Community association funds" means any assessments, fees,
5fines, or other funds collected by the community association
6manager from the community association, or its members, other
7than the compensation paid to the community association manager
8for performance of community association management services.
9    "Community association management firm" means a company,
10corporation, limited liability company, or other entity that
11engages in community association management services through a
12designated community association manager.
13    "Community association management services" means those
14services listed in the definition of community association
15manager in this Section.
16    "Community association manager" means an individual who
17administers for remuneration the financial, administrative,
18maintenance, or other duties for the community association,
19including, but not limited to, any of the following services:
20(A) collecting, controlling or disbursing funds of the
21community association or having the authority to do so; (B)
22preparing budgets or other financial documents for the
23community association; (C) assisting in the conduct of
24community association meetings; (D) maintaining association
25records; or and (E) administrating association contracts, as
26stated in the declaration, bylaws, proprietary lease,



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1declaration of covenants, or other governing document of the
2community association. "Community association manager" does
3not mean support staff, including, but not limited to
4bookkeepers, administrative assistants, secretaries, property
5inspectors, or customer service representatives.
6    "Department" means the Department of Financial and
7Professional Regulation.
8    "Designated community association manager" means a
9licensed community association manager who has an ownership
10interest in or is otherwise employed by a community association
11management firm to act as the controlling person and the
12authorized signatory for the firm on community association
13accounts and to otherwise supervise, manage, and be responsible
14for the firm's community association manager activities
15pursuant to Section 50 of this Act.
16    "License" means the license issued to a person,
17corporation, partnership, limited liability company, or other
18legal entity under this Act to provide community association
19management services.
20    "Person" means an any individual, corporation,
21partnership, limited liability company, or other legal entity.
22    "Secretary" means the Secretary of Financial and
23Professional Regulation.
24    "Supervising community association manager" means an
25individual licensed as a community association manager who
26manages and supervises a firm.



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1(Source: P.A. 98-365, eff. 1-1-14; revised 10-27-16.)
2    (225 ILCS 427/15)
3    (Section scheduled to be repealed on January 1, 2020)
4    Sec. 15. License required. It shall be unlawful for any
5person, corporation, partnership, limited liability company,
6or other entity to provide community association management
7services, provide services as a community association manager,
8or hold himself, herself, or itself out as a community
9association manager or community association management firm
10to any community association in this State, unless he, she, or
11it holds a current and valid license issued licensed by the
12Department, employs a designated community association manager
13with a current and valid license issued by the Department, or
14is otherwise exempt from licensure under this Act.
15(Source: P.A. 98-365, eff. 1-1-14.)
16    (225 ILCS 427/25)
17    (Section scheduled to be repealed on January 1, 2020)
18    Sec. 25. Community Association Manager Licensing and
19Disciplinary Board.
20    (a) There is hereby created the Community Association
21Manager Licensing and Disciplinary Board, which shall consist
22of 7 members appointed by the Secretary. All members must be
23residents of the State and must have resided in the State for
24at least 5 years immediately preceding the date of appointment.



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



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2    (e) Each member shall receive reimbursement as set by the
3Governor's Travel Control Board for expenses incurred in
4carrying out the duties as a Board member. The Board shall be
5compensated as determined by the Secretary.
6    (f) The Board may recommend policies, procedures, and rules
7relevant to the administration and enforcement of this Act.
8(Source: P.A. 98-365, eff. 1-1-14.)
9    (225 ILCS 427/30)
10    (Section scheduled to be repealed on January 1, 2020)
11    Sec. 30. Powers and duties of the Department. The
12Department may exercise the following functions, powers and
14        (a) formulate rules for the administration and
15    enforcement of this Act;
16        (b) prescribe forms to be issued for the administration
17    and enforcement of this Act;
18        (c) conduct hearings or proceedings to refuse to issue,
19    renew, suspend, revoke, place on probation, reprimand, or
20    take disciplinary or non-disciplinary action as the
21    Department may deem appropriate under this Act;
22        (d) maintain a roster of the names and addresses of all
23    licensees and the community association management firms
24    that employ them in a manner as deemed appropriate by the
25    Department; and



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1        (e) seek the advice and expert knowledge of the Board
2    on any matter relating to the administration and
3    enforcement of this Act.
4(Source: P.A. 96-726, eff. 7-1-10.)
5    (225 ILCS 427/50)
6    (Section scheduled to be repealed on January 1, 2020)
7    Sec. 50. Community association management firm.
8    (a) No corporation, partnership, limited liability
9company, or other legal entity shall provide or offer to
10provide community association management services, unless it
11does so through a licensed community association manager that
12has applied in writing on the prescribed forms and has paid the
13required nonrefundable fees and provided evidence to the
14Department that he or she meets the requirements to be named as
15a the firm has designated community association manager and
16agrees a licensed supervising community association manager to
17supervise and manage the firm's licensed activities firm. A
18designated supervising community association manager shall be
19a continuing requirement of firm operation. licensure. No
20supervising community association manager may be the
21supervising community association manager for more than one
23    (b) Any corporation, partnership, limited liability
24company, or other legal entity that is providing, or offering
25to provide, community association management services and is



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1not in compliance with Section 50 and other provisions of this
2Act shall be subject to the civil penalties fines, injunctions,
3cease and desist provisions, and penalties provided for in
4Sections 90, 92, and 155 of this Act.
5    (c) No community association manager may be the designated
6community association manager licensee-in-charge for more than
7one firm, corporation, limited liability company, or other
8legal entity.
9    (d) The Department is authorized to adopt rules and set all
10necessary requirements for the implementation of this Section.
11(Source: P.A. 98-365, eff. 1-1-14.)
12    (225 ILCS 427/55)
13    (Section scheduled to be repealed on January 1, 2020)
14    Sec. 55. Fidelity insurance; segregation of accounts.
15    (a) The designated supervising community association
16manager or the community association management firm with which
17he or she is employed shall not have access to and disburse
18community association funds unless each of the following
19conditions occur:
20        (1) There is fidelity insurance in place to insure
21    against loss for theft of community association funds.
22        (2) The fidelity insurance is not less than all moneys
23    under the control of the designated supervising community
24    association manager or the employing community association
25    management firm for the association.



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1        (3) The fidelity insurance covers the designated
2    community association manager, all other licensees,
3    supervising community association manager, and all
4    partners, officers, and employees of the community
5    association management firm during the term of the
6    insurance coverage, which shall be at least for the same
7    term as the service agreement between the community
8    association management firm or supervising community
9    association manager as well as the community association
10    officers, directors, and employees.
11        (4) The insurance company issuing the fidelity
12    insurance may not cancel or refuse to renew the bond
13    without giving at least 10 days' prior written notice.
14        (5) Unless an agreement between the community
15    association and the supervising community association
16    manager or the community association management firm
17    provides to the contrary, a community association may
18    secure and pay for the fidelity insurance required by this
19    Section. The designated supervising community association
20    manager, all other licensees, and or the community
21    association management firm must be named as additional
22    insured parties on the community association policy.
23    (b) A community association management firm that provides
24community association management services for more than one
25community association shall maintain separate, segregated
26accounts for each community association or, with the consent of



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1the community association, combine the accounts of one or more
2community associations, but in that event, separately account
3for the funds of each community association. The funds shall
4not, in any event, be commingled with the supervising community
5association manager's or community association management
6firm's funds. The maintenance of such accounts shall be
7custodial, and such accounts shall be in the name of the
8respective community association or community association
9manager or community association management firm Community
10Association Management Agency as the agent for the association.
11    (c) The supervising community association manager or
12community association management firm shall obtain the
13appropriate general liability and errors and omissions
14insurance, as determined by the Department, to cover any losses
15or claims against the supervising community association
16manager or the community association management firm.
17    (d) The Department shall have authority to promulgate
18additional rules regarding insurance, fidelity insurance and
19all accounts maintained and to be maintained by a designated
20supervising community association manager or community
21association management firm.
22(Source: P.A. 98-365, eff. 1-1-14.)
23    (225 ILCS 427/60)
24    (Section scheduled to be repealed on January 1, 2020)
25    Sec. 60. Licenses; renewals; restoration; person in



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1military service.
2    (a) The expiration date and renewal period for each license
3issued under this Act shall be set by rule. The Department may
4promulgate rules requiring continuing education and set all
5necessary requirements for such, including but not limited to
6fees, approved coursework, number of hours, and waivers of
7continuing education.
8    (b) Any licensee who has permitted his or , her, or its
9license to expire may have the license restored by making
10application to the Department and filing proof acceptable to
11the Department of fitness to have his or , her, or its license
12restored, by which may include sworn evidence certifying to
13active practice in another jurisdiction satisfactory to the
14Department, complying with any continuing education
15requirements, and paying the required restoration fee.
16    (c) If the person has not maintained an active practice in
17another jurisdiction satisfactory to the Department, the
18Department shall determine, by an evaluation program
19established by rule, the person's fitness to resume active
20status and may require the person to complete a period of
21evaluated clinical experience and successful completion of a
22practical examination. However, any person whose license
23expired while (i) in federal service on active duty with the
24Armed Forces of the United States or called into service or
25training with the State Militia or (ii) in training or
26education under the supervision of the United States



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1preliminary to induction into the military service may have his
2or her license renewed or restored without paying any lapsed
3renewal fees if, within 2 years after honorable termination of
4the service, training or education, except under condition
5other than honorable, he or she furnishes the Department with
6satisfactory evidence to the effect that he or she has been so
7engaged and that the service, training, or education has been
8so terminated.
9    (d) A community association manager, community association
10management firm or supervising community association manager
11who notifies the Department, in writing on forms prescribed by
12the Department, may place his or , her, or its license on
13inactive status and shall be excused from the payment of
14renewal fees until the person notifies the Department in
15writing of the intention to resume active practice.
16    (e) A community association manager, community association
17management firm, or supervising community association manager
18requesting his or , her, or its license be changed from inactive
19to active status shall be required to pay the current renewal
20fee and shall also demonstrate compliance with the continuing
21education requirements.
22    (f) Any licensee with a nonrenewed or on inactive license
23status or any community association firm operating without a
24designated community association manager shall not provide
25community association management services as set forth in this



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1    (g) Any person or entity violating subsection (f) of this
2Section shall be considered to be practicing without a license
3and will be subject to the disciplinary provisions of this Act.
4(Source: P.A. 98-365, eff. 1-1-14.)
5    (225 ILCS 427/70)
6    (Section scheduled to be repealed on January 1, 2020)
7    Sec. 70. Penalty for insufficient funds; payments. Any
8person who delivers a check or other payment to the Department
9that is returned to the Department unpaid by the financial
10institution upon which it is drawn shall pay to the Department,
11in addition to the amount already owed to the Department, a
12fine of $50. The Department shall notify the person that
13payment of fees and fines shall be paid to the Department by
14certified check or money order within 30 calendar days after
15notification. If, after the expiration of 30 days from the date
16of the notification, the person has failed to submit the
17necessary remittance, the Department shall automatically
18terminate the license or deny the application, without hearing.
19If, after termination or denial, the person seeks a license, he
20or , she, or it shall apply to the Department for restoration or
21issuance of the license and pay all fees and fines due to the
22Department. The Department may establish a fee for the
23processing of an application for restoration of a license to
24pay all expenses of processing this application. The Secretary
25may waive the fines due under this Section in individual cases



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1where the Secretary finds that the fines would be unreasonable
2or unnecessarily burdensome.
3(Source: P.A. 98-365, eff. 1-1-14.)
4    (225 ILCS 427/75)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 75. Endorsement. The Department may issue a community
7association manager or supervising community association
8manager license, without the required examination, to an
9applicant licensed under the laws of another state if the
10requirements for licensure in that state are, on the date of
11licensure, substantially equal to the requirements of this Act
12or to a person who, at the time of his or her application for
13licensure, possessed individual qualifications that were
14substantially equivalent to the requirements then in force in
15this State. An applicant under this Section shall pay all of
16the required fees.
17    Applicants have 3 years from the date of application to
18complete the application process. If the process has not been
19completed within the 3 years, the application shall be denied,
20the fee shall be forfeited, and the applicant must reapply and
21meet the requirements in effect at the time of reapplication.
22(Source: P.A. 98-365, eff. 1-1-14.)
23    (225 ILCS 427/85)
24    (Section scheduled to be repealed on January 1, 2020)



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



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1    obtaining a license or violating any provision of this Act
2    or its rules.
3        (5) Professional incompetence.
4        (6) Gross negligence.
5        (7) Aiding or assisting another person in violating any
6    provision of this Act or its rules.
7        (8) Failing, within 30 days, to provide information in
8    response to a request made by the Department.
9        (9) Engaging in dishonorable, unethical, or
10    unprofessional conduct of a character likely to deceive,
11    defraud or harm the public as defined by the rules of the
12    Department, or violating the rules of professional conduct
13    adopted by the Department.
14        (10) Habitual or excessive use or addiction to alcohol,
15    narcotics, stimulants, or any other chemical agent or drug
16    that results in the inability to practice with reasonable
17    judgment, skill, or safety.
18        (11) Having been disciplined by another state, the
19    District of Columbia, a territory, a foreign nation, or a
20    governmental agency authorized to impose discipline if at
21    least one of the grounds for the discipline is the same or
22    substantially equivalent of one of the grounds for which a
23    licensee may be disciplined under this Act. A certified
24    copy of the record of the action by the other state or
25    jurisdiction shall be prima facie evidence thereof.
26        (12) Directly or indirectly giving to or receiving from



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1    any person, firm, corporation, partnership or association
2    any fee, commission, rebate, or other form of compensation
3    for any professional services not actually or personally
4    rendered.
5        (13) A finding by the Department that the licensee,
6    after having his or , her, or its license placed on
7    probationary status, has violated the terms of probation.
8        (14) Willfully making or filing false records or
9    reports relating to a licensee's practice, including but
10    not limited to false records filed with any State or
11    federal agencies or departments.
12        (15) Being named as a perpetrator in an indicated
13    report by the Department of Children and Family Services
14    under the Abused and Neglected Child Reporting Act and upon
15    proof by clear and convincing evidence that the licensee
16    has caused a child to be an abused child or neglected child
17    as defined in the Abused and Neglected Child Reporting Act.
18        (16) Physical illness or mental illness or impairment,
19    including, but not limited to, deterioration through the
20    aging process or loss of motor skill that results in the
21    inability to practice the profession with reasonable
22    judgment, skill, or safety.
23        (17) Solicitation of professional services by using
24    false or misleading advertising.
25        (18) A finding that licensure has been applied for or
26    obtained by fraudulent means.



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1        (19) Practicing or attempting to practice under a name
2    other than the full name as shown on the license or any
3    other legally authorized name unless approved by the
4    Department.
5        (20) Gross overcharging for professional services
6    including, but not limited to, (i) collection of fees or
7    moneys for services that are not rendered; and (ii)
8    charging for services that are not in accordance with the
9    contract between the licensee and the community
10    association.
11        (21) Improper commingling of personal and client funds
12    in violation of this Act or any rules promulgated thereto.
13        (22) Failing to account for or remit any moneys or
14    documents coming into the licensee's possession that
15    belong to another person or entity.
16        (23) Giving differential treatment to a person that is
17    to that person's detriment because of race, color, creed,
18    sex, religion, or national origin.
19        (24) Performing and charging for services without
20    reasonable authorization to do so from the person or entity
21    for whom service is being provided.
22        (25) Failing to make available to the Department, upon
23    request, any books, records, or forms required by this Act.
24        (26) Purporting to be a designated supervising
25    community association manager of a firm without active
26    participation in the firm.



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1        (27) Failing to make available to the Department at the
2    time of the request any indicia of licensure or
3    registration issued under this Act.
4        (28) Failing to maintain and deposit funds belonging to
5    a community association in accordance with subsection (b)
6    of Section 55 of this Act.
7        (29) Violating the terms of a disciplinary order issued
8    by the Department.
9        (30) Operating a community association management firm
10    without a licensed designated community association
11    manager.
12        (31) Failing to meet the requirements for acting as a
13    designated community association manager, if appropriate.
14    (b) In accordance with subdivision (a)(5) of Section
152105-15 of the Department of Professional Regulation Law of the
16Civil Administrative Code of Illinois (20 ILCS 2105/2105-15),
17the Department shall deny a license or renewal authorized by
18this Act to a person who has defaulted on an educational loan
19or scholarship 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 2105-15 of
6the Department 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
152105-15 of the Department of Professional Regulation Law of the
16Civil Administrative Code of Illinois (20 ILCS 2105/2105-15)
17and in cases where the Department of Healthcare and Family
18Services (formerly Department of Public Aid) has previously
19determined that a licensee or a potential licensee is more than
2030 days delinquent in the payment of child support and has
21subsequently certified the delinquency to the Department may
22refuse to issue or renew or may revoke or suspend that person's
23license or may take other disciplinary action against that
24person based solely upon the certification of delinquency made
25by the Department of Healthcare and Family Services.
26    (f) In enforcing this Section, the Department or Board upon



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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



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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. 97-333, eff. 8-12-11; 98-365, eff. 1-1-14;



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198-756, eff. 7-16-14.)
2    (225 ILCS 427/90)
3    (Section scheduled to be repealed on January 1, 2020)
4    Sec. 90. Violations; injunctions; cease and desist orders.
5    (a) If any person violates a provision of this Act, the
6Secretary may, in the name of the People of the State of
7Illinois, through the Attorney General of the State of
8Illinois, petition for an order enjoining the violation or for
9an order enforcing compliance with this Act. Upon the filing of
10a verified petition in court, the court may issue a temporary
11restraining order, without notice or bond, and may
12preliminarily and permanently enjoin the violation. If it is
13established that the person has violated or is violating the
14injunction, the Court may punish the offender for contempt of
15court. Proceedings under this Section are in addition to, and
16not in lieu of, all other remedies and penalties provided by
17this Act.
18    (b) If any person, entity or other business may provide
19community association management services or provide services
20as community association manager to any community association
21in this State without having a valid license under this Act or
22without a designated community association manager for a
23community association management firm, then any licensee, any
24interested party or any person injured thereby may, in addition
25to the Secretary, petition for relief as provided in subsection



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1(a) of this Section.
2    (c) Whenever in the opinion of the Department any person,
3entity or other business violates any provision of this Act,
4the Department may issue a rule to show cause why an order to
5cease and desist should not be entered against such person,
6firm or other entity. The rule shall clearly set forth the
7grounds relied upon by the Department and shall provide a
8period of at least 7 days from the date of the rule to file an
9answer to the satisfaction of the Department. If the person,
10firm or other entity fails to file an answer satisfactory to
11the Department, the matter shall be considered as a default and
12the Department may cause an order to cease and desist to be
13issued immediately.
14(Source: P.A. 96-726, eff. 7-1-10.)
15    (225 ILCS 427/92)
16    (Section scheduled to be repealed on January 1, 2020)
17    Sec. 92. Unlicensed practice; violation; civil penalty.
18    (a) Any person, entity or other business who practices,
19offers to practice, attempts to practice, or holds himself,
20herself or itself out to practice as a community association
21manager or community association management firm or provide
22services as a community association manager or community
23association management firm to any community association in
24this State without being licensed under this Act or without a
25designated community association manager for a community



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1association management firm shall, in addition to any other
2penalty provided by law, pay a civil penalty to the Department
3in an amount not to exceed $10,000 for each offense, as
4determined by the Department. The civil penalty shall be
5assessed by the Department after a hearing is held in
6accordance with the provisions set forth in this Act regarding
7the provision of a hearing for the discipline of a licensee.
8    (b) The Department may investigate any and all unlicensed
10    (c) The civil penalty shall be paid within 60 days after
11the effective date of the order imposing the civil penalty. The
12order shall constitute a judgment and may be filed and
13execution had thereon in the same manner as any judgment from
14any court of record.
15(Source: P.A. 98-365, eff. 1-1-14.)
16    (225 ILCS 427/155)
17    (Section scheduled to be repealed on January 1, 2020)
18    Sec. 155. Violations; penalties.
19    (a) A person who violates any of the following provisions
20shall be guilty of a Class A misdemeanor; a person who commits
21a second or subsequent violation of these provisions is guilty
22of a Class 4 felony:
23        (1) The practice of or attempted practice of or holding
24    out as available to practice as a community association
25    manager or supervising community association manager



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1    without a license.
2        (2) Operation of or attempt to operate a community
3    association management firm without a firm license or a
4    designated supervising community association manager.
5        (3) The obtaining of or the attempt to obtain any
6    license or authorization issued under this Act by
7    fraudulent misrepresentation.
8    (b) Whenever a licensee is convicted of a felony related to
9the violations set forth in this Section, the clerk of the
10court in any jurisdiction shall promptly report the conviction
11to the Department and the Department shall immediately revoke
12any license authorized under this Act held by that licensee.
13The licensee shall not be eligible for licensure under this Act
14until at least 10 years have elapsed since the time of full
15discharge from any sentence imposed for a felony conviction. If
16any person in making any oath or affidavit required by this Act
17swears falsely, the person is guilty of perjury and may be
18punished accordingly.
19(Source: P.A. 98-365, eff. 1-1-14; 99-78, eff. 7-20-15.)
20    (225 ILCS 427/165)
21    (Section scheduled to be repealed on January 1, 2020)
22    Sec. 165. Home rule. The regulation and licensing of
23community association managers, supervising community
24association managers, and community association management
25firms are exclusive powers and functions of the State. A home



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1rule unit may not regulate or license community association
2managers, supervising community association managers, or
3community association management firms. This Section is a
4denial and limitation of home rule powers and functions under
5subsection (h) of Section 6 of Article VII of the Illinois
7(Source: P.A. 98-365, eff. 1-1-14.)
8    (225 ILCS 427/42 rep.)
9    Section 10. The Community Association Manager Licensing
10and Disciplinary Act is amended by repealing Section 42.
11    Section 15. The Common Interest Community Association Act
12is amended by changing Sections 1-35 and 1-45 as follows:
13    (765 ILCS 160/1-35)
14    Sec. 1-35. Member powers, duties, and obligations.
15    (a) The provisions of this Act, the declaration, bylaws,
16other community instruments, and rules and regulations that
17relate to the use of an individual unit or the common areas
18shall be applicable to any person leasing a unit and shall be
19deemed to be incorporated in any lease executed or renewed on
20or after the effective date of this Act. Unless otherwise
21provided in the community instruments, with regard to any lease
22entered into subsequent to the effective date of this Act, the
23unit owner leasing the unit shall deliver a copy of the signed



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1lease to the association or if the lease is oral, a memorandum
2of the lease, not later than the date of occupancy or 10 days
3after the lease is signed, whichever occurs first.
4    (b) If there are multiple owners of a single unit, only one
5of the multiple owners shall be eligible to serve as a member
6of the board at any one time, unless the unit owner owns
7another unit independently.
8    (c) Two-thirds of the membership may remove a board member
9as a director at a duly called special meeting.
10    (d) In the event of any resale of a unit in a common
11interest community association by a member or unit owner other
12than the developer, the board shall make available for
13inspection to the prospective purchaser, upon demand, the
15        (1) A copy of the declaration, other instruments, and
16    any rules and regulations, and any adopted common expense
17    collection policies.
18        (2) A statement of any liens, including a statement of
19    the account of the unit setting forth the amounts of unpaid
20    assessments and other charges due and owing.
21        (3) A statement of any capital expenditures
22    anticipated by the association within the current or
23    succeeding 2 fiscal years.
24        (4) A statement of the status and amount of any reserve
25    or replacement fund and any other fund specifically
26    designated for association projects.



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1        (5) A copy of the statement of financial condition of
2    the association for the last fiscal year for which such a
3    statement is available.
4        (6) A statement of the status of any pending suits or
5    judgments in which the association is a party.
6        (7) A statement setting forth what insurance coverage
7    is provided for all members or unit owners by the
8    association for common properties.
9        (8) A statement setting forth the current assessment
10    obligations, including any special assessments or other
11    common expenses.
12        (9) A statement setting forth the current late fees or
13    interest that may be charged on an unpaid balance, if any.
14    The principal officer of the board, or such other officer
15as is specifically designated, or agent for the association
16shall disclose furnish the above information within 30 days
17after receiving a written request for such information.
18    A reasonable fee covering the direct out-of-pocket cost of
19copying and providing such information may be charged by the
20association or the board to the unit seller for providing the
22(Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12;
2398-842, eff. 1-1-15.)
24    (765 ILCS 160/1-45)
25    Sec. 1-45. Finances.



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1    (a) Each member shall receive through a prescribed delivery
2method, at least 30 days but not more than 60 days prior to the
3adoption thereof by the board, a copy of the proposed annual
4budget together with an indication of which portions are
5intended for reserves, capital expenditures or repairs or
6payment of real estate taxes.
7    (b) The board shall provide all members with a reasonably
8detailed summary of the receipts, common expenses, and reserves
9for the preceding budget year. The board shall (i) make
10available for review to all members an itemized accounting of
11the common expenses for the preceding year actually incurred or
12paid, together with an indication of which portions were for
13reserves, capital expenditures or repairs or payment of real
14estate taxes and with a tabulation of the amounts collected
15pursuant to the budget or assessment, and showing the net
16excess or deficit of income over expenditures plus reserves or
17(ii) provide a consolidated annual independent audit report of
18the financial status of all fund accounts within the
20    (c) If an adopted budget or any separate assessment adopted
21by the board would result in the sum of all regular and
22separate assessments payable in the current fiscal year
23exceeding 115% of the sum of all regular and separate
24assessments payable during the preceding fiscal year, the
25common interest community association, upon written petition
26by members with 20% of the votes of the association delivered



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1to the board within 21 14 days of the board action, shall call
2a meeting of the members within 30 days of the date of delivery
3of the petition to consider the budget or separate assessment;
4unless a majority of the total votes of the members are cast at
5the meeting to reject the budget or separate assessment, it
6shall be deemed ratified.
7    (d) If total common expenses exceed the total amount of the
8approved and adopted budget, the common interest community
9association shall disclose this variance to all its members and
10specifically identify the subsequent assessments needed to
11offset this variance in future budgets.
12    (e) Separate assessments for expenditures relating to
13emergencies or mandated by law may be adopted by the board
14without being subject to member approval or the provisions of
15subsection (c) or (f) of this Section. As used herein,
16"emergency" means a danger to or a compromise of the structural
17integrity of the common areas or any of the common facilities
18of the common interest community. "Emergency" also includes a
19danger to the life, health or safety of the membership.
20    (f) Assessments for additions and alterations to the common
21areas or to association-owned property not included in the
22adopted annual budget, shall be separately assessed and are
23subject to approval of a simple majority of the total members
24at a meeting called for that purpose.
25    (g) The board may adopt separate assessments payable over
26more than one fiscal year. With respect to multi-year



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1assessments not governed by subsections (e) and (f) of this
2Section, the entire amount of the multi-year assessment shall
3be deemed considered and authorized in the first fiscal year in
4which the assessment is approved.
5    (h) The board of a common interest community association
6shall have the authority to establish and maintain a system of
7master metering of public utility services to collect payments
8in conjunction therewith, subject to the requirements of the
9Tenant Utility Payment Disclosure Act.
10(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
1197-1090, eff. 8-24-12.)
12    Section 20. The Condominium Property Act is amended by
13changing Sections 9.2 and 18.5 as follows:
14    (765 ILCS 605/9.2)  (from Ch. 30, par. 309.2)
15    Sec. 9.2. Other remedies.
16    (a) In the event of any default by any unit owner, his
17tenant, invitee or guest in the performance of his obligations
18under this Act or under the declaration, bylaws, or the rules
19and regulations of the board of managers, the board of managers
20or its agents shall have such rights and remedies as provided
21in the Act or condominium instruments including the right to
22maintain an action for possession against such defaulting unit
23owner or his tenant for the benefit of all the other unit
24owners in the manner prescribed by Article IX of the Code of



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1Civil Procedure.
2    (b) Except for attorney's fees incurred in any litigation
3or arbitration described in subsection (d) in which a unit
4owner is deemed by the court or arbitrator to be the prevailing
5party, any Any attorneys' fees incurred by the Association
6arising out of an adjudicated a default by any unit owner, his
7tenant, invitee or guest in the performance of any of the
8provisions of the condominium instruments, rules and
9regulations or any applicable statute or ordinance shall be
10added to, and deemed a part of, his respective share of the
11common expense.
12    (c) Other than attorney's fees, no fees pertaining to the
13collection of a unit owner's financial obligation to the
14Association, including fees charged by a manager or managing
15agent, shall be added to and deemed a part of an owner's
16respective share of the common expenses unless: (i) the
17managing agent fees relate to the costs to collect common
18expenses for the Association; (ii) the fees are set forth in a
19contract between the managing agent and the Association; and
20(iii) the authority to add the management fees to an owner's
21respective share of the common expenses is specifically stated
22in the declaration or bylaws of the Association.
23    (d) In any litigation or arbitration between a unit owner
24and the Association or its board of managers or any individual
25member of the Association or its board of managers regarding:
26(i) the enforcement of obligations of the board or the



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1Association, set forth either in this Act, the condominium
2instruments, rules and regulations, or any applicable statute
3or ordinance; (ii) a disputed charge on the unit owner's
4account; or (iii) a purported default as described in
5subsection (a), if the unit owner is deemed by the court or
6arbitrator to be the prevailing party, then the court or the
7arbitrator shall award to the unit owner from the
8non-prevailing party reasonable attorney's fees and costs
9incurred by the unit owner in the litigation or arbitration.
10(Source: P.A. 94-384, eff. 1-1-06.)
11    (765 ILCS 605/18.5)  (from Ch. 30, par. 318.5)
12    Sec. 18.5. Master Associations.
13    (a) If the declaration, other condominium instrument, or
14other duly recorded covenants provide that any of the powers of
15the unit owners associations are to be exercised by or may be
16delegated to a nonprofit corporation or unincorporated
17association that exercises those or other powers on behalf of
18one or more condominiums, or for the benefit of the unit owners
19of one or more condominiums, such corporation or association
20shall be a master association.
21    (b) There shall be included in the declaration, other
22condominium instruments, or other duly recorded covenants
23establishing the powers and duties of the master association
24the provisions set forth in subsections (c) through (h).
25    In interpreting subsections (c) through (h), the courts



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1should interpret these provisions so that they are interpreted
2consistently with the similar parallel provisions found in
3other parts of this Act.
4    (c) Meetings and finances.
5        (1) Each unit owner of a condominium subject to the
6    authority of the board of the master association shall
7    receive, at least 30 days prior to the adoption thereof by
8    the board of the master association, a copy of the proposed
9    annual budget.
10        (2) The board of the master association shall annually
11    supply to all unit owners of condominiums subject to the
12    authority of the board of the master association an
13    itemized accounting of the common expenses for the
14    preceding year actually incurred or paid, together with a
15    tabulation of the amounts collected pursuant to the budget
16    or assessment, and showing the net excess or deficit of
17    income over expenditures plus reserves.
18        (3) Each unit owner of a condominium subject to the
19    authority of the board of the master association shall
20    receive written notice mailed or delivered no less than 10
21    and no more than 30 days prior to any meeting of the board
22    of the master association concerning the adoption of the
23    proposed annual budget or any increase in the budget, or
24    establishment of an assessment.
25        (4) Meetings of the board of the master association
26    shall be open to any unit owner in a condominium subject to



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1    the authority of the board of the master association,
2    except for the portion of any meeting held:
3            (A) to discuss litigation when an action against or
4        on behalf of the particular master association has been
5        filed and is pending in a court or administrative
6        tribunal, or when the board of the master association
7        finds that such an action is probable or imminent,
8            (B) to consider information regarding appointment,
9        employment or dismissal of an employee, or
10            (C) to discuss violations of rules and regulations
11        of the master association or unpaid common expenses
12        owed to the master association.
13    Any vote on these matters shall be taken at a meeting or
14    portion thereof open to any unit owner of a condominium
15    subject to the authority of the master association.
16        Any unit owner may record the proceedings at meetings
17    required to be open by this Act by tape, film or other
18    means; the board may prescribe reasonable rules and
19    regulations to govern the right to make such recordings.
20    Notice of meetings shall be mailed or delivered at least 48
21    hours prior thereto, unless a written waiver of such notice
22    is signed by the persons entitled to notice before the
23    meeting is convened. Copies of notices of meetings of the
24    board of the master association shall be posted in
25    entranceways, elevators, or other conspicuous places in
26    the condominium at least 48 hours prior to the meeting of



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1    the board of the master association. Where there is no
2    common entranceway for 7 or more units, the board of the
3    master association may designate one or more locations in
4    the proximity of these units where the notices of meetings
5    shall be posted.
6        (5) If the declaration provides for election by unit
7    owners of members of the board of directors in the event of
8    a resale of a unit in the master association, the purchaser
9    of a unit from a seller other than the developer pursuant
10    to an installment contract for purchase shall, during such
11    times as he or she resides in the unit, be counted toward a
12    quorum for purposes of election of members of the board of
13    directors at any meeting of the unit owners called for
14    purposes of electing members of the board, and shall have
15    the right to vote for the election of members of the board
16    of directors and to be elected to and serve on the board of
17    directors unless the seller expressly retains in writing
18    any or all of those rights. In no event may the seller and
19    purchaser both be counted toward a quorum, be permitted to
20    vote for a particular office, or be elected and serve on
21    the board. Satisfactory evidence of the installment
22    contract shall be made available to the association or its
23    agents. For purposes of this subsection, "installment
24    contract" shall have the same meaning as set forth in
25    subsection (e) of Section 1 of the Dwelling Unit
26    Installment Contract Act.



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1        (6) The board of the master association shall have the
2    authority to establish and maintain a system of master
3    metering of public utility services and to collect payments
4    in connection therewith, subject to the requirements of the
5    Tenant Utility Payment Disclosure Act.
6        (7) The board of the master association or a common
7    interest community association shall have the power, after
8    notice and an opportunity to be heard, to levy and collect
9    reasonable fines from members for violations of the
10    declaration, bylaws, and rules and regulations of the
11    master association or the common interest community
12    association. Nothing contained in this subdivision (7)
13    shall give rise to a statutory lien for unpaid fines.
14        (8) Other than attorney's fees, no fees pertaining to
15    the collection of a unit owner's financial obligation to
16    the Association, including fees charged by a manager or
17    managing agent, shall be added to and deemed a part of an
18    owner's respective share of the common expenses unless: (i)
19    the managing agent fees relate to the costs to collect
20    common expenses for the Association; (ii) the fees are set
21    forth in a contract between the managing agent and the
22    Association; and (iii) the authority to add the management
23    fees to an owner's respective share of the common expenses
24    is specifically stated in the declaration or bylaws of the
25    Association.
26    (d) Records.



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1        (1) The board of the master association shall keep and
2    maintain the following records, or true and complete copies
3    of the records, at the association's principal office of
4    the association and make them available for examination and
5    copying at convenient hours of weekdays by any unit owners
6    in a condominium subject to the authority of the board or
7    their mortgagees and their duly authorized agents or
8    attorneys:
9            (i) the association's declaration, bylaws, and
10        plats of survey, and all amendments of the
11        association's declaration, bylaws, and plats of
12        survey;
13            (ii) the rules and regulations of the association,
14        if any;
15            (iii) if the association is incorporated as a
16        corporation, the articles of incorporation of the
17        association and all amendments to the articles of
18        incorporation;
19            (iv) minutes of all meetings of the association and
20        its board of managers for the immediately preceding 7
21        years;
22            (v) all current policies of insurance of the
23        association;
24            (vi) all contracts, leases, and other agreements
25        then in effect to which the association is a party or
26        under which the association or the unit owners have



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1        obligations or liabilities;
2            (vii) a current listing of the names, addresses,
3        email addresses, telephone numbers, and weighted vote
4        of all members entitled to vote;
5            (viii) ballots and proxies related to ballots for
6        all matters voted on by the members of the association
7        during the immediately preceding 12 months, including,
8        but not limited to, the election of members of the
9        board of managers; and
10            (ix) the books and records for the association's
11        current and 10 immediately preceding fiscal years,
12        including, but not limited to, itemized and detailed
13        records of all receipts, expenditures, and accounts.
14        With respect to units owned by a land trust, if a
15    trustee designates in writing a person to cast votes on
16    behalf of the unit owner, the designation shall remain in
17    effect until a subsequent document is filed with the
18    association.
19        (2) Any member of an association has the right to
20    inspect, examine, and make copies of the records described
21    in subdivisions (i), (ii), (iii), (iv), (v), (vi), and (ix)
22    of paragraph (1) of this subsection, in person or by agent,
23    at any reasonable time or times, at the association's
24    principal office. In order to exercise this right, a member
25    must submit a written request to the association's board of
26    directors or its authorized agent, stating with



10000SB0948ham002- 42 -LRB100 06987 KTG 27687 a

1    particularity the records sought. Failure of an
2    association's board of directors to make available all
3    requested records within 10 days of receipt of the member's
4    written request shall be deemed a denial.
5        Any member who prevails in an enforcement action to
6    compel examination of records described in subdivisions
7    (i), (ii), (iii), (iv), (v), (vi), and (ix) of paragraph
8    (1) of this subsection is entitled to recover reasonable
9    attorney's fees and costs from the association.
10        (2.5) As used in this Section, "commercial purpose"
11    means the use of any part of a record or records described
12    in subdivisions (vii) and (viii) of paragraph (1) of this
13    subsection, or information derived from such records, in
14    any form for sale, resale, or solicitation or advertisement
15    for sales or services.
16        (3) Except as otherwise provided in this subsection,
17    any member of an association has the right to inspect,
18    examine, and make copies of the records described in
19    subdivisions (vii) and (viii) of paragraph (1) of this
20    subsection, in person or by agent, at any reasonable time
21    or times, but only for a purpose that relates to the
22    association, at the association's principal office. In
23    order to exercise this right, a member must submit a
24    written request to the association's board of directors or
25    its authorized agent, stating with particularity the
26    records sought to be examined. As a condition for



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1    exercising this right, the board of managers or authorized
2    agent of the association may require the member to certify
3    in writing that the information contained in the records
4    obtained by the member will not be used by the member for
5    any commercial purpose or for any purpose that does not
6    relate to the association. The board of managers of the
7    association may impose a fine in accordance with item (l)
8    of Section 18.4 upon any person who makes a false
9    certification. Subject to the provisions of paragraph (5)
10    of this subsection, failure of an association's board of
11    directors to make available all requested records within 10
12    business days of receipt of the member's written request
13    shall be deemed a denial; however, the board of directors
14    of an association that has adopted a secret ballot election
15    process shall not be deemed to have denied a member's
16    request for records described in subdivision (viii) of
17    paragraph (1) of this subsection if voting ballots, without
18    identifying unit numbers, are made available to the
19    requesting member within 10 days of receipt of the member's
20    written request.
21        Any member who prevails in an enforcement action to
22    compel examination of records described in subdivisions
23    (vii) or (viii) of paragraph (1) of this subsection is
24    entitled to recover reasonable attorney's fees and costs
25    from the association only if the court finds that the board
26    of directors acted in bad faith in denying the member's



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1    request.
2        (4) The actual cost to the association of retrieving
3    and making requested records available for inspection and
4    examination under this Section may be charged by the
5    association to the requesting member. If a member requests
6    copies of records under this Section, the actual costs to
7    the association of reproducing the records may also be
8    charged by the association to the requesting member.
9        (5) Notwithstanding the other provisions of this
10    subsection, unless otherwise directed by court order, an
11    association need not make the following records available
12    for inspection, examination, or copying by its members:
13            (i) documents relating to appointment, employment,
14        discipline, or dismissal of association employees;
15            (ii) documents relating to actions pending against
16        or on behalf of the association or its board of
17        managers in a court or administrative tribunal;
18            (iii) documents relating to actions threatened
19        against, or likely to be asserted on behalf of, the
20        association or its board of directors in a court or
21        administrative tribunal;
22            (iv) documents relating to common expenses or
23        other charges owed by a member other than the
24        requesting member; and
25            (v) documents provided to an association in
26        connection with the lease, sale, or other transfer of a



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1        unit by a member other than the requesting member.
2            (i) Copies of the recorded declaration, other
3        condominium instruments, other duly recorded covenants
4        and bylaws and any amendments, articles of
5        incorporation of the master association, annual
6        reports and any rules and regulations adopted by the
7        master association or its board shall be available.
8        Prior to the organization of the master association,
9        the developer shall maintain and make available the
10        records set forth in this subdivision (d)(1) for
11        examination and copying.
12            (ii) Detailed and accurate records in
13        chronological order of the receipts and expenditures
14        affecting the common areas, specifying and itemizing
15        the maintenance and repair expenses of the common areas
16        and any other expenses incurred, and copies of all
17        contracts, leases, or other agreements entered into by
18        the master association, shall be maintained.
19            (iii) The minutes of all meetings of the master
20        association and the board of the master association
21        shall be maintained for not less than 7 years.
22            (iv) Ballots and proxies related thereto, if any,
23        for any election held for the board of the master
24        association and for any other matters voted on by the
25        unit owners shall be maintained for not less than one
26        year.



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1            (v) Such other records of the master association as
2        are available for inspection by members of a
3        not-for-profit corporation pursuant to Section 107.75
4        of the General Not For Profit Corporation Act of 1986
5        shall be maintained.
6            (vi) With respect to units owned by a land trust,
7        if a trustee designates in writing a person to cast
8        votes on behalf of the unit owner, the designation
9        shall remain in effect until a subsequent document is
10        filed with the association.
11        (2) Where a request for records under this subsection
12    is made in writing to the board of managers or its agent,
13    failure to provide the requested record or to respond
14    within 30 days shall be deemed a denial by the board of
15    directors.
16        (3) A reasonable fee may be charged by the master
17    association or its board for the cost of copying.
18        (4) If the board of directors fails to provide records
19    properly requested under subdivision (d)(1) within the
20    time period provided in subdivision (d)(2), the unit owner
21    may seek appropriate relief, including an award of
22    attorney's fees and costs.
23    (e) The board of directors shall have standing and capacity
24to act in a representative capacity in relation to matters
25involving the common areas of the master association or more
26than one unit, on behalf of the unit owners as their interests



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1may appear.
2    (f) Administration of property prior to election of the
3initial board of directors.
4        (1) Until the election, by the unit owners or the
5    boards of managers of the underlying condominium
6    associations, of the initial board of directors of a master
7    association whose declaration is recorded on or after
8    August 10, 1990, the same rights, titles, powers,
9    privileges, trusts, duties and obligations that are vested
10    in or imposed upon the board of directors by this Act or in
11    the declaration or other duly recorded covenant shall be
12    held and performed by the developer.
13        (2) The election of the initial board of directors of a
14    master association whose declaration is recorded on or
15    after August 10, 1990, by the unit owners or the boards of
16    managers of the underlying condominium associations, shall
17    be held not later than 60 days after the conveyance by the
18    developer of 75% of the units, or 3 years after the
19    recording of the declaration, whichever is earlier. The
20    developer shall give at least 21 days notice of the meeting
21    to elect the initial board of directors and shall upon
22    request provide to any unit owner, within 3 working days of
23    the request, the names, addresses, and weighted vote of
24    each unit owner entitled to vote at the meeting. Any unit
25    owner shall upon receipt of the request be provided with
26    the same information, within 10 days of the request, with



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1    respect to each subsequent meeting to elect members of the
2    board of directors.
3        (3) If the initial board of directors of a master
4    association whose declaration is recorded on or after
5    August 10, 1990 is not elected by the unit owners or the
6    members of the underlying condominium association board of
7    managers at the time established in subdivision (f)(2), the
8    developer shall continue in office for a period of 30 days,
9    whereupon written notice of his resignation shall be sent
10    to all of the unit owners or members of the underlying
11    condominium board of managers entitled to vote at an
12    election for members of the board of directors.
13        (4) Within 60 days following the election of a majority
14    of the board of directors, other than the developer, by
15    unit owners, the developer shall deliver to the board of
16    directors:
17            (i) All original documents as recorded or filed
18        pertaining to the property, its administration, and
19        the association, such as the declaration, articles of
20        incorporation, other instruments, annual reports,
21        minutes, rules and regulations, and contracts, leases,
22        or other agreements entered into by the association. If
23        any original documents are unavailable, a copy may be
24        provided if certified by affidavit of the developer, or
25        an officer or agent of the developer, as being a
26        complete copy of the actual document recorded or filed.



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1            (ii) A detailed accounting by the developer,
2        setting forth the source and nature of receipts and
3        expenditures in connection with the management,
4        maintenance and operation of the property, copies of
5        all insurance policies, and a list of any loans or
6        advances to the association which are outstanding.
7            (iii) Association funds, which shall have been at
8        all times segregated from any other moneys of the
9        developer.
10            (iv) A schedule of all real or personal property,
11        equipment and fixtures belonging to the association,
12        including documents transferring the property,
13        warranties, if any, for all real and personal property
14        and equipment, deeds, title insurance policies, and
15        all tax bills.
16            (v) A list of all litigation, administrative
17        action and arbitrations involving the association, any
18        notices of governmental bodies involving actions taken
19        or which may be taken concerning the association,
20        engineering and architectural drawings and
21        specifications as approved by any governmental
22        authority, all other documents filed with any other
23        governmental authority, all governmental certificates,
24        correspondence involving enforcement of any
25        association requirements, copies of any documents
26        relating to disputes involving unit owners, and



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1        originals of all documents relating to everything
2        listed in this subparagraph.
3            (vi) If the developer fails to fully comply with
4        this paragraph (4) within the 60 days provided and
5        fails to fully comply within 10 days of written demand
6        mailed by registered or certified mail to his or her
7        last known address, the board may bring an action to
8        compel compliance with this paragraph (4). If the court
9        finds that any of the required deliveries were not made
10        within the required period, the board shall be entitled
11        to recover its reasonable attorneys' fees and costs
12        incurred from and after the date of expiration of the
13        10 day demand.
14        (5) With respect to any master association whose
15    declaration is recorded on or after August 10, 1990, any
16    contract, lease, or other agreement made prior to the
17    election of a majority of the board of directors other than
18    the developer by or on behalf of unit owners or underlying
19    condominium associations, the association or the board of
20    directors, which extends for a period of more than 2 years
21    from the recording of the declaration, shall be subject to
22    cancellation by more than 1/2 of the votes of the unit
23    owners, other than the developer, cast at a special meeting
24    of members called for that purpose during a period of 90
25    days prior to the expiration of the 2 year period if the
26    board of managers is elected by the unit owners, otherwise



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1    by more than 1/2 of the underlying condominium board of
2    managers. At least 60 days prior to the expiration of the 2
3    year period, the board of directors, or, if the board is
4    still under developer control, then the board of managers
5    or the developer shall send notice to every unit owner or
6    underlying condominium board of managers, notifying them
7    of this provision, of what contracts, leases and other
8    agreements are affected, and of the procedure for calling a
9    meeting of the unit owners or for action by the underlying
10    condominium board of managers for the purpose of acting to
11    terminate such contracts, leases or other agreements.
12    During the 90 day period the other party to the contract,
13    lease, or other agreement shall also have the right of
14    cancellation.
15        (6) The statute of limitations for any actions in law
16    or equity which the master association may bring shall not
17    begin to run until the unit owners or underlying
18    condominium board of managers have elected a majority of
19    the members of the board of directors.
20    (g) In the event of any resale of a unit in a master
21association by a unit owner other than the developer, the owner
22shall obtain from the board of directors and shall make
23available for inspection to the prospective purchaser, upon
24demand, the following:
25        (1) A copy of the declaration, other instruments and
26    any rules and regulations.



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1        (2) A statement of any liens, including a statement of
2    the account of the unit setting forth the amounts of unpaid
3    assessments and other charges due and owing.
4        (3) A statement of any capital expenditures
5    anticipated by the association within the current or
6    succeeding 2 fiscal years.
7        (4) A statement of the status and amount of any reserve
8    for replacement fund and any portion of such fund earmarked
9    for any specified project by the board of directors.
10        (5) A copy of the statement of financial condition of
11    the association for the last fiscal year for which such a
12    statement is available.
13        (6) A statement of the status of any pending suits or
14    judgments in which the association is a party that may have
15    a material adverse impact on the association's financial
16    condition.
17        (7) A statement setting forth what insurance coverage
18    is provided for all unit owners by the association.
19        (8) A statement that any known improvements or
20    alterations made to the unit, or any part of the common
21    areas assigned thereto, by the prior unit owner are in good
22    faith believed to be in compliance with the declaration of
23    the master association.
24    The principal officer of the unit owner's association or
25such other officer, manager, or agent as is specifically
26designated shall furnish the above information when requested



10000SB0948ham002- 53 -LRB100 06987 KTG 27687 a

1to do so in writing, within 30 days of receiving the request.
2    A reasonable fee covering the direct out-of-pocket cost of
3copying and providing such information may be charged by the
4association or its board of directors to the unit seller for
5providing the information.
6    Within 15 days of the recording of a mortgage or trust deed
7against a unit ownership given by the owner of that unit to
8secure a debt, the owner shall inform the board of the master
9association of the identity of the lender, together with a
10mailing address at which the lender can receive notices from
11the association. If a unit owner fails or refuses to inform the
12board as required under this subsection, then that unit owner
13is liable to the association for all costs, expenses, and
14reasonable attorney's fees and other damages, if any, incurred
15by the association as a result of the failure or refusal.
16    (g-1) The purchaser of a unit of a common interest
17community at a judicial foreclosure sale, other than a
18mortgagee, who takes possession of a unit of a common interest
19community pursuant to a court order or a purchaser who acquires
20title from a mortgagee shall have the duty to pay the
21proportionate share, if any, of the common expenses for the
22unit that would have become due in the absence of any
23assessment acceleration during the 6 months immediately
24preceding institution of an action to enforce the collection of
25assessments and the court costs incurred by the association in
26an action to enforce the collection that remain unpaid by the



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1owner during whose possession the assessments accrued. If the
2outstanding assessments and the court costs incurred by the
3association in an action to enforce the collection are paid at
4any time during any action to enforce the collection of
5assessments, the purchaser shall have no obligation to pay any
6assessments that accrued before he or she acquired title. The
7notice of sale of a unit of a common interest community under
8subsection (c) of Section 15-1507 of the Code of Civil
9Procedure shall state that the purchaser of the unit other than
10a mortgagee shall pay the assessments and court costs required
11by this subsection (g-1).
12    (h) Errors and omissions.
13        (1) If there is an omission or error in the declaration
14    or other instrument of the master association, the master
15    association may correct the error or omission by an
16    amendment to the declaration or other instrument, as may be
17    required to conform it to this Act, to any other applicable
18    statute, or to the declaration. The amendment shall be
19    adopted by vote of two-thirds of the members of the board
20    of directors or by a majority vote of the unit owners at a
21    meeting called for that purpose, unless the Act or the
22    declaration of the master association specifically
23    provides for greater percentages or different procedures.
24        (2) If, through a scrivener's error, a unit has not
25    been designated as owning an appropriate undivided share of
26    the common areas or does not bear an appropriate share of



10000SB0948ham002- 55 -LRB100 06987 KTG 27687 a

1    the common expenses, or if all of the common expenses or
2    all of the common elements in the condominium have not been
3    distributed in the declaration, so that the sum total of
4    the shares of common areas which have been distributed or
5    the sum total of the shares of the common expenses fail to
6    equal 100%, or if it appears that more than 100% of the
7    common elements or common expenses have been distributed,
8    the error may be corrected by operation of law by filing an
9    amendment to the declaration, approved by vote of
10    two-thirds of the members of the board of directors or a
11    majority vote of the unit owners at a meeting called for
12    that purpose, which proportionately adjusts all percentage
13    interests so that the total is equal to 100%, unless the
14    declaration specifically provides for a different
15    procedure or different percentage vote by the owners of the
16    units and the owners of mortgages thereon affected by
17    modification being made in the undivided interest in the
18    common areas, the number of votes in the unit owners
19    association or the liability for common expenses
20    appertaining to the unit.
21        (3) If an omission or error or a scrivener's error in
22    the declaration or other instrument is corrected by vote of
23    two-thirds of the members of the board of directors
24    pursuant to the authority established in subdivisions
25    (h)(1) or (h)(2) of this Section, the board, upon written
26    petition by unit owners with 20% of the votes of the



10000SB0948ham002- 56 -LRB100 06987 KTG 27687 a

1    association or resolutions adopted by the board of managers
2    or board of directors of the condominium and common
3    interest community associations which select 20% of the
4    members of the board of directors of the master
5    association, whichever is applicable, received within 30
6    days of the board action, shall call a meeting of the unit
7    owners or the boards of the condominium and common interest
8    community associations which select members of the board of
9    directors of the master association within 30 days of the
10    filing of the petition or receipt of the condominium and
11    common interest community association resolution to
12    consider the board action. Unless a majority of the votes
13    of the unit owners of the association are cast at the
14    meeting to reject the action, or board of managers or board
15    of directors of condominium and common interest community
16    associations which select over 50% of the members of the
17    board of the master association adopt resolutions prior to
18    the meeting rejecting the action of the board of directors
19    of the master association, it is ratified whether or not a
20    quorum is present.
21        (4) The procedures for amendments set forth in this
22    subsection (h) cannot be used if such an amendment would
23    materially or adversely affect property rights of the unit
24    owners unless the affected unit owners consent in writing.
25    This Section does not restrict the powers of the
26    association to otherwise amend the declaration, bylaws, or



10000SB0948ham002- 57 -LRB100 06987 KTG 27687 a

1    other condominium instruments, but authorizes a simple
2    process of amendment requiring a lesser vote for the
3    purpose of correcting defects, errors, or omissions when
4    the property rights of the unit owners are not materially
5    or adversely affected.
6        (5) If there is an omission or error in the declaration
7    or other instruments that may not be corrected by an
8    amendment procedure set forth in subdivision (h)(1) or
9    (h)(2) of this Section, then the circuit court in the
10    county in which the master association is located shall
11    have jurisdiction to hear a petition of one or more of the
12    unit owners thereon or of the association, to correct the
13    error or omission, and the action may be a class action.
14    The court may require that one or more methods of
15    correcting the error or omission be submitted to the unit
16    owners to determine the most acceptable correction. All
17    unit owners in the association must be joined as parties to
18    the action. Service of process on owners may be by
19    publication, but the plaintiff shall furnish all unit
20    owners not personally served with process with copies of
21    the petition and final judgment of the court by certified
22    mail, return receipt requested, at their last known
23    address.
24        (6) Nothing contained in this Section shall be
25    construed to invalidate any provision of a declaration
26    authorizing the developer to amend an instrument prior to



10000SB0948ham002- 58 -LRB100 06987 KTG 27687 a

1    the latest date on which the initial membership meeting of
2    the unit owners must be held, whether or not it has
3    actually been held, to bring the instrument into compliance
4    with the legal requirements of the Federal National
5    Mortgage Association, the Federal Home Loan Mortgage
6    Corporation, the Federal Housing Administration, the
7    United States Veterans Administration or their respective
8    successors and assigns.
9    (i) The provisions of subsections (c) through (h) are
10applicable to all declarations, other condominium instruments,
11and other duly recorded covenants establishing the powers and
12duties of the master association recorded under this Act. Any
13portion of a declaration, other condominium instrument, or
14other duly recorded covenant establishing the powers and duties
15of a master association which contains provisions contrary to
16the provisions of subsection (c) through (h) shall be void as
17against public policy and ineffective. Any declaration, other
18condominium instrument, or other duly recorded covenant
19establishing the powers and duties of the master association
20which fails to contain the provisions required by subsections
21(c) through (h) shall be deemed to incorporate such provisions
22by operation of law.
23    (j) (Blank).
24(Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12;
2597-605, eff. 8-26-11; 97-813, eff. 7-13-12.)".