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1 | AN ACT concerning professions and occupations.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Community Association Manager Act. | ||||||
6 | Section 5. Legislative intent. It is the intent of the | ||||||
7 | General Assembly that this Act provide for the regulation of | ||||||
8 | managers of community associations, ensure that those who hold | ||||||
9 | themselves out as possessing professional qualifications to | ||||||
10 | engage in the provision of community association management | ||||||
11 | services are, in fact, qualified to render management services | ||||||
12 | of a professional nature, and provide for the maintenance of | ||||||
13 | high standards of professional conduct by those licensed as | ||||||
14 | community association managers. | ||||||
15 | Section 10. Definitions. In this Act: | ||||||
16 | "Commission" means the Community Association Manager | ||||||
17 | Regulatory Commission. | ||||||
18 | "Community association" means an association in which | ||||||
19 | membership is a condition of ownership or shareholder interest | ||||||
20 | of a unit in a condominium, cooperative, townhouse, villa, or | ||||||
21 | other residential unit which is part of a residential | ||||||
22 | development plan and that is authorized to impose an |
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1 | assessment, rents, or other costs that may become a lien on the | ||||||
2 | unit or lot.
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3 | "Community association manager" means an individual who | ||||||
4 | administers for remuneration the financial, administrative, | ||||||
5 | maintenance, or other duties for the community association, | ||||||
6 | including the following services: (A) collecting, controlling | ||||||
7 | or disbursing funds of the community association or having the | ||||||
8 | authority to do so; (B) preparing budgets or other financial | ||||||
9 | documents for the community association; (C) assisting in the | ||||||
10 | conduct of community association meetings; (D) maintaining | ||||||
11 | association records; and (E) administrating association | ||||||
12 | contracts, as stated in the declaration, bylaws, proprietary | ||||||
13 | lease, declaration of covenants, or other governing document of | ||||||
14 | the community association. "Community association manager" | ||||||
15 | does not mean support staff, including, but not limited to | ||||||
16 | bookkeepers, administrative assistants, secretaries, property | ||||||
17 | inspectors, or customer service representatives.
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18 | "Department" means the Department of Financial and | ||||||
19 | Professional Regulation. | ||||||
20 | "License" means the license issued to a person to act as a | ||||||
21 | community association manager under this Act. | ||||||
22 | "Licensee" means a person to whom a license has been issued | ||||||
23 | under this Act. | ||||||
24 | Section 15. License required. No person may provide | ||||||
25 | services as a community association manager to community |
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1 | associations in this State after January 1, 2011, unless he or | ||||||
2 | she holds a current and valid license issued by the Department | ||||||
3 | or is otherwise exempt from licensure under this Act. | ||||||
4 | Section 20. Exemptions; distinction from real estate | ||||||
5 | license. | ||||||
6 | (a) This Act does not apply to any of the following: | ||||||
7 | (1) Any director, officer, or member of a community | ||||||
8 | association providing one or more of the services of a | ||||||
9 | community association manager without compensation for | ||||||
10 | such services to the association. | ||||||
11 | (2) Any person providing one or more of the services of | ||||||
12 | a community association manager to a community association | ||||||
13 | of 10 units or less.
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14 | (3) A licensed attorney acting solely as an incident to | ||||||
15 | the practice of law. | ||||||
16 | (4) A person acting as a receiver, trustee in | ||||||
17 | bankruptcy, administrator, executor, or guardian acting | ||||||
18 | under a court order or under the authority of a will or of | ||||||
19 | a trust instrument.
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20 | (b) A licensed community association manager may not | ||||||
21 | perform or engage in any activities for which a real estate | ||||||
22 | broker or real estate salesperson license is required under the | ||||||
23 | Real Estate License Act of 2000, unless he or she also | ||||||
24 | possesses a current license under the Real Estate License Act | ||||||
25 | of 2000 and is providing those services as provided for in that |
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1 | Act and the applicable rules.
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2 | Section 25. Community Association Manager Regulatory | ||||||
3 | Commission. | ||||||
4 | (a) There is hereby created the Community Association | ||||||
5 | Manager Regulatory Commission, which shall consist of 7 members | ||||||
6 | appointed by the Governor, with the advice and consent of the | ||||||
7 | Senate. All members must be residents of the State and must | ||||||
8 | have resided in the State for at least 5 years immediately | ||||||
9 | preceding the date of appointment. Five members of the | ||||||
10 | Commission must be licensees under this Act, except that, | ||||||
11 | initially, these members must meet the qualifications for | ||||||
12 | licensure and must obtain a license within 6 months after the | ||||||
13 | rules to administer this Act are adopted by the Department. Two | ||||||
14 | members of the Commission shall be owners or shareholders of a | ||||||
15 | unit in a community association at the time of appointment who | ||||||
16 | are not licensees under this Act. | ||||||
17 | (b) Commission members shall serve for terms of 5 years, | ||||||
18 | except that, initially, 4 members shall serve for 5 years and 3 | ||||||
19 | members shall serve for 3 years. All members shall serve until | ||||||
20 | his or her successor is appointed and qualified. All vacancies | ||||||
21 | shall be filled in like manner for the unexpired term. The | ||||||
22 | Governor shall remove from the Commission any member whose | ||||||
23 | license has become void or has been revoked or suspended and | ||||||
24 | may remove any member of the Commission for neglect of duty, | ||||||
25 | misconduct, or incompetence. |
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1 | (c) The presence of two-thirds of the full Commission shall | ||||||
2 | constitute a quorum for the transaction of business. Action | ||||||
3 | shall only be taken upon the majority vote of a quorum, except | ||||||
4 | regarding disciplinary actions, which shall require a | ||||||
5 | unanimous vote of a quorum. | ||||||
6 | (d) Any member of the Commission, any attorney providing | ||||||
7 | advice to the Commission, any person acting as a consultant to | ||||||
8 | the Commission, and any witness testifying in a proceeding | ||||||
9 | authorized under this Act, excluding the party making the | ||||||
10 | complaint, shall be immune from liability in any civil action | ||||||
11 | brought against him or her for acts occurring while acting in | ||||||
12 | his or her capacity as a Commission member, consultant, or | ||||||
13 | witness, respectively, unless the conduct that gave rise to the | ||||||
14 | action was willful or wanton misconduct. | ||||||
15 | Section 30. Powers and duties of the Department. The | ||||||
16 | Department shall exercise the powers and duties prescribed by | ||||||
17 | the Civil Administrative Code of Illinois for the | ||||||
18 | administration of licensure Acts and shall exercise other | ||||||
19 | powers and duties necessary for effectuating the purposes of | ||||||
20 | this Act. | ||||||
21 | Section 35. Powers and duties of the Commission. The | ||||||
22 | Commission may perform each of the following: | ||||||
23 | (1) Elect annually from among its members a chairperson | ||||||
24 | and prescribe the duties of such office. |
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1 | (2) Assist the Department in the following matters:
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2 | (A) enforcing the rules of professional conduct as | ||||||
3 | stated under this Act;
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4 | (B) developing appropriate administrative | ||||||
5 | enforcement procedures for violations of the rules of | ||||||
6 | professional conduct;
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7 | (C) providing forms and receiving applications for | ||||||
8 | licensure;
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9 | (D) creating examinations to be given to | ||||||
10 | applicants;
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11 | (E) issuing licenses and renewals as provided | ||||||
12 | under this Act;
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13 | (F) imposing disciplinary actions in the manner | ||||||
14 | prescribed under this Act; and
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15 | (G) determining the criteria to be included in the | ||||||
16 | State examination and to administer or cause to be | ||||||
17 | administered the State examination.
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18 | Section 40. Qualifications. | ||||||
19 | (a) No person shall be qualified for licensure under this | ||||||
20 | Act, unless he or she meets all of the following | ||||||
21 | qualifications: | ||||||
22 | (1) He or she is at least 21 years of age. | ||||||
23 | (2) He or she is a citizen or legal permanent resident | ||||||
24 | of the United States. | ||||||
25 | (3) He or she has not been convicted of a felony. |
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1 | (4) He or she provides satisfactory evidence to the | ||||||
2 | Commission of having completed at least 20 classroom hours | ||||||
3 | in community association management courses approved by | ||||||
4 | the Commission. | ||||||
5 | (5) He or she has successfully completed an examination | ||||||
6 | covering the fundamentals of community association | ||||||
7 | management, including the Condominium Property Act, the | ||||||
8 | General Not For Profit Corporation Act of 1986, and any | ||||||
9 | other statutes that the Commission deems appropriate as it | ||||||
10 | relates to community association management. | ||||||
11 | (6) He or she has not had a license suspended or | ||||||
12 | revoked in any jurisdiction as a community association | ||||||
13 | manager, or the comparable category of licensee, or been | ||||||
14 | convicted of any offense in any jurisdiction arising from | ||||||
15 | actions as a community association manager. | ||||||
16 | (b) Notwithstanding the provisions of subsection (a) of | ||||||
17 | this Section: | ||||||
18 | (1) the education requirement to qualify for the | ||||||
19 | licensing examination does not apply to persons holding a | ||||||
20 | real estate broker or real estate salesperson license | ||||||
21 | issued under the Real Estate License Act of 2000; and | ||||||
22 | (2) the examination and initial education requirement | ||||||
23 | shall not apply to persons who, within 6 months after the | ||||||
24 | rules to administer this Act are adopted by the Department, | ||||||
25 | apply for a license by providing satisfactory evidence to | ||||||
26 | the Department and the Commission of qualifying experience |
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1 | or education, including without limitation evidence that | ||||||
2 | he or she has (A) practiced community association | ||||||
3 | management for a period of 5 years or (B) achieved a | ||||||
4 | designation awarded by recognized community association | ||||||
5 | management organizations in the State. | ||||||
6 | Section 45. Examination. | ||||||
7 | (a) Every person who makes application for initial | ||||||
8 | licensure as a community association manager shall personally | ||||||
9 | take and achieve a passing score on a nationally prepared and | ||||||
10 | administered standardized examination for the community | ||||||
11 | association management profession. The standardized | ||||||
12 | examination must be developed according to the basic principles | ||||||
13 | of professional testing standards utilizing psychometric | ||||||
14 | measurement. The examination shall be prepared by an | ||||||
15 | independent testing service designated by the Commission using | ||||||
16 | standards set forth by the National Organization for Competency | ||||||
17 | Assurances and shall be approved by the Department.
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18 | (b) The designated independent testing service shall | ||||||
19 | conduct the examinations at such times and places as the | ||||||
20 | Commission shall approve.
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21 | (c) An applicant shall be eligible to take the examination | ||||||
22 | only after successfully completing the education requirements | ||||||
23 | set forth in this Act and attaining the minimum age required | ||||||
24 | under this Act. |
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1 | Section 50. Fidelity insurance; segregation of accounts. | ||||||
2 | (a) A licensee or the firm with which the licensee is | ||||||
3 | employed shall not have access to and disburse funds of a | ||||||
4 | community association unless each of the following conditions | ||||||
5 | occur:
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6 | (1) There is fidelity insurance in place to insure | ||||||
7 | against loss for theft of community association funds. | ||||||
8 | (2) The fidelity insurance coverage is not less than | ||||||
9 | all moneys under the limit of the licensee or the firm of | ||||||
10 | the licensee for the association.
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11 | (3) The fidelity insurance covers the licensee and all | ||||||
12 | partners, officers, and employees of the firm with whom the | ||||||
13 | licensee is employed during the term of the insurance | ||||||
14 | coverage, as well as the association officers, directors, | ||||||
15 | and employees.
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16 | (4) The insurance company issuing the fidelity | ||||||
17 | insurance may not cancel or refuse to renew the bond | ||||||
18 | without giving at least 10 days prior written notice.
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19 | (5) Unless an agreement between the community | ||||||
20 | association and the licensee or a management company | ||||||
21 | provides to the contrary, the association secures and pays | ||||||
22 | for the fidelity insurance. | ||||||
23 | The community association manager must be named as an | ||||||
24 | additional insured party on the association policy. | ||||||
25 | (b) A licensee who provides community association | ||||||
26 | management services for more than one community association |
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1 | shall maintain separate, segregated accounts for each | ||||||
2 | community association or, with the consent of the association, | ||||||
3 | combine the accounts of one or more associations, but in that | ||||||
4 | event, separately account for the funds of each association. | ||||||
5 | The funds shall not, in any event, be commingled with the | ||||||
6 | licensee's or firm's funds. The maintenance of such accounts by | ||||||
7 | the licensee shall be custodial, and such accounts shall be in | ||||||
8 | the name of the respective community association or firm as the | ||||||
9 | agent for the association.
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10 | (c) The licensee or the firm of the licensee shall also | ||||||
11 | obtain the appropriate general liability and errors and | ||||||
12 | omissions insurance to cover any losses or claims against | ||||||
13 | community association clients.
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14 | Section 55. Disciplinary action. | ||||||
15 | (a) Disciplinary action recommended by the Commission and | ||||||
16 | imposed by the Department may consist of one or more of the | ||||||
17 | following: | ||||||
18 | (1) The revocation or suspension of a license.
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19 | (2) The refusal to renew or reinstate a license. | ||||||
20 | (3) The placement of the community association manager | ||||||
21 | on probation for a reasonable period of time. | ||||||
22 | (4) The issuance of a reprimand or a censor to the | ||||||
23 | community association manager. | ||||||
24 | (5) The imposition of a reasonable fine.
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25 | (b) A community association manager is subject to |
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1 | disciplinary action if the community association manager | ||||||
2 | commits any of the following: | ||||||
3 | (1) A felony or offense involving moral turpitude or | ||||||
4 | unprofessional conduct. | ||||||
5 | (2) Any violation of this Act or the provisions of an | ||||||
6 | order of the Department or an agreement with the | ||||||
7 | Department. | ||||||
8 | (3) Failure to cooperate with the Commission in the | ||||||
9 | investigation of a complaint, including without limitation | ||||||
10 | failure to produce any document, book, or record in the | ||||||
11 | possession or control of the community association manager | ||||||
12 | after the Commission or the Department requests production | ||||||
13 | of such document, book, or record in the course of an | ||||||
14 | investigation of a complaint.
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15 | Section 60. Fees. | ||||||
16 | (a) All fees shall be deposited into the Community | ||||||
17 | Association Manager Licensing Fund, which is hereby created as | ||||||
18 | a special fund in the State treasury. | ||||||
19 | (b) A fee not to exceed $100 shall be paid for each | ||||||
20 | application made to the Department, whether the same is an | ||||||
21 | application for examination or reexamination or for issuance, | ||||||
22 | renewal, reactivation, or reinstatement of a license or any | ||||||
23 | other application requiring formal action or consideration by | ||||||
24 | the Department.
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25 | (c) All fees shall be paid to the Department or its |
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1 | authorized representative and shall be paid by the applicant in | ||||||
2 | advance of examination dates or of any action by the | ||||||
3 | Department.
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4 | (d) Fees imposed under this Act shall not be increased | ||||||
5 | within a given year by more than a percentage that exceeds the | ||||||
6 | percentage increase, if any, in the Consumer Price Index for | ||||||
7 | All Urban Consumers for the Midwest Area for all items | ||||||
8 | published by the U.S. Department of Labor for the 12 months | ||||||
9 | ending on the previous December 31. | ||||||
10 | Section 65. Licensure; renewal; reactivation; | ||||||
11 | reinstatement. | ||||||
12 | (a) All licenses issued under this Act shall expire every 4 | ||||||
13 | years on a date established by the Department, but may be | ||||||
14 | renewed upon the payment of the renewal fee authorized by this | ||||||
15 | Section and satisfactory completion of mandatory continuing | ||||||
16 | education.
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17 | (b) Any person may reactivate an expired license within a | ||||||
18 | one-year grace period after the date of its expiration by | ||||||
19 | making written application for reactivation and paying a | ||||||
20 | reactivation fee imposed by the Department.
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21 | (c) In the event that a person fails to reactivate his or | ||||||
22 | her license within the one-year grace period specified in this | ||||||
23 | Section, a person may reinstate such license within 4 years | ||||||
24 | after the date of the expiration of the grace period by making | ||||||
25 | written application for reinstatement, paying a reinstatement |
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1 | fee, and providing proof to the Department of his or her | ||||||
2 | continued professional competence as required by the | ||||||
3 | Department. Thereafter, a person shall not be reinstated unless | ||||||
4 | he or she fulfills and meets the requirements and conditions | ||||||
5 | required of an applicant applying for the issuance of an | ||||||
6 | original license, which requirements shall include retaking | ||||||
7 | and passing the licensure examination.
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8 | (d) Any person who performs community association | ||||||
9 | management services after the expiration of his or her license | ||||||
10 | shall be practicing in violation of this Act and be subject to | ||||||
11 | any of the sanctions authorized under this Act. The Department | ||||||
12 | may refuse to reactivate or reinstate any expired license for | ||||||
13 | conduct that constitutes a violation of any provision of this | ||||||
14 | Act.
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15 | Section 70. Continuing education. | ||||||
16 | (a) Except as otherwise provided in this Section, each | ||||||
17 | person who applies for renewal of his or her license as a | ||||||
18 | community association manager must successfully complete | ||||||
19 | continuing education courses approved by the Commission at the | ||||||
20 | rate of 4 hours per year or its equivalent or 16 hours over a 4 | ||||||
21 | year period. No license may be renewed except upon the | ||||||
22 | successful completion of the required courses or their | ||||||
23 | equivalent as determined by the Department with the | ||||||
24 | recommendation of the Commission.
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25 | (b) The continuing education requirement for community |
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1 | association managers shall consist of a curriculum established | ||||||
2 | by the Commission. In establishing the curriculum, the | ||||||
3 | Commission shall consider subjects that will educate licensees | ||||||
4 | on recent changes in applicable laws and new laws and refresh | ||||||
5 | the licensee in areas of community association management that | ||||||
6 | the Commission deems appropriate, and any other areas that the | ||||||
7 | Commission deems timely and applicable in order to prevent | ||||||
8 | violations of this Act and to protect the public.
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9 | (c) Individuals who complete authorized courses in the core | ||||||
10 | curriculum or elective courses to renew a real estate broker or | ||||||
11 | real estate salesperson license shall receive credit for each | ||||||
12 | course to calculate the continuing education requirement to | ||||||
13 | renew a community association manager license.
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14 | (d) The curriculum developed by the Commission shall | ||||||
15 | qualify as elective courses required to achieve or renew a real | ||||||
16 | estate broker or real estate salesperson license under the Real | ||||||
17 | Estate License Act.
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18 | Section 80. Rulemaking conditions. Rulemaking authority to | ||||||
19 | implement this Act, if any, is conditioned on the rules being | ||||||
20 | adopted in accordance with all provisions of the Illinois | ||||||
21 | Administrative Procedure Act and all rules and procedures of | ||||||
22 | the Joint Committee on Administrative Rules; any purported rule | ||||||
23 | not so adopted, for whatever reason, is unauthorized. | ||||||
24 | Section 900. The Regulatory Sunset Act is amended by adding |
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1 | Section 4.31 as follows: | ||||||
2 | (5 ILCS 80/4.31 new)
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3 | Sec. 4.31. Act repealed on January 1, 2021. The following | ||||||
4 | Act is repealed on January 1, 2021: | ||||||
5 | The Community Association Manager Act. | ||||||
6 | Section 905. The State Finance Act is amended by adding | ||||||
7 | Section 5.719 as follows: | ||||||
8 | (30 ILCS 105/5.719 new)
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9 | Sec. 5.719. The Community Association Manager Licensing | ||||||
10 | Fund. | ||||||
11 | (765 ILCS 605/18.7 rep.)
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12 | Section 910. The Condominium Property Act is amended by | ||||||
13 | repealing Section 18.7. | ||||||
14 | Section 999. Effective date. This Act takes effect upon | ||||||
15 | becoming law. |