Full Text of SB2128 95th General Assembly
SB2128 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB2128
Introduced 2/14/2008, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
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765 ILCS 605/18.8 new |
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30 ILCS 105/5.708 new |
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Amends the Condominium Property Act. Requires licensing of managers of community associations. Creates the Community Association Manager Regulatory Commission, whose members are appointed by the Governor, to administer the licensing. Requires the payment of fees. Sets forth licensing requirements. Provides for discipline and other matters. Amends the State Finance Act to create a special fund. Effective July 1, 2009.
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FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB2128 |
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LRB095 18826 AJO 44953 b |
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| AN ACT concerning property.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Condominium Property Act is amended by | 5 |
| adding Section 18.8 as follows: | 6 |
| (765 ILCS 605/18.8 new)
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| Sec. 18.8. Licensing of managers of community | 8 |
| associations. | 9 |
| (a) Legislative declaration. It is declared to be in the | 10 |
| best interest of the citizens of the State of Illinois and a | 11 |
| proper exercise of the police power of the State of Illinois to | 12 |
| provide for the regulation of managers of community | 13 |
| associations, who hold themselves out as possessing | 14 |
| professional qualifications as managers of community | 15 |
| associations and are, in fact, qualified to render management | 16 |
| services of a professional nature, and to provide for the | 17 |
| maintenance of high standards of professional conduct by those | 18 |
| licensed as managers of community associations. Because of the | 19 |
| customary reliance by the public, specifically the duly | 20 |
| appointed or elected governing body of common interest | 21 |
| community associations, upon the financial, supervisory, and | 22 |
| managerial services of persons purporting to possess expert | 23 |
| knowledge in the field of community association management and |
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| as custodian of community association funds, it is further | 2 |
| declared to be in the best interest of Illinois citizens to | 3 |
| limit and restrict, under the circumstances set forth in this | 4 |
| Section, the issuance of licenses to community association | 5 |
| managers who have been certified to possess the necessary | 6 |
| knowledge in the relevant financial, managerial, and | 7 |
| supervisory services, or compliance with conditions | 8 |
| established by law or contract of persons so licensed. | 9 |
| (b) Definitions. As used in this Section, unless the | 10 |
| context otherwise requires: | 11 |
| "License" means the license issued to a manager of | 12 |
| community associations for the State. | 13 |
| "License holder" means a person to whom a license has | 14 |
| been issued. | 15 |
| "Commission" means the Community Associations Manager | 16 |
| Regulatory Commission. | 17 |
| "Community association" means an association in which | 18 |
| membership is a condition of ownership or shareholder | 19 |
| interest of a unit in a condominium, cooperative, | 20 |
| townhouse, villa, or other residential unit that is part of | 21 |
| a residential development plan and that is authorized to | 22 |
| impose an assessment and other costs that may become a lien | 23 |
| on the unit or lot. | 24 |
| "Community association manager" means an individual | 25 |
| who administers for compensation the coordination of | 26 |
| financial, administrative, maintenance, or other duties |
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| called for in the management contract, including | 2 |
| individuals who are direct employees of a community | 3 |
| association. A manager does not include support staff, such | 4 |
| as bookkeepers, administrative assistants, secretaries, | 5 |
| property inspectors, customer service representatives, or | 6 |
| managers in training. | 7 |
| "Manager in training" means any individual who is | 8 |
| training to become a manager and is under the supervision | 9 |
| of a license holder. During the training period, a manager | 10 |
| in training may not be licensed. A manager in training | 11 |
| shall not have signatory authority on any community | 12 |
| association bank account. Further, after a period of one | 13 |
| year, a manager in training is required to be licensed by | 14 |
| the State. | 15 |
| (c) License requirement. In order to provide community | 16 |
| association management services to community associations in | 17 |
| Illinois, individuals must possess a license issued by the | 18 |
| Community Association Manager Regulatory Commission. | 19 |
| (d) Community Association Manager Regulatory Commission. | 20 |
| (1) The Community Association Manager Regulatory | 21 |
| Commission shall consist of 9 members appointed by the | 22 |
| Governor, with the advice and consent of the Senate, and | 23 |
| who shall have been residents of the State of Illinois for | 24 |
| 5 years prior to the date of appointment. | 25 |
| (2) Seven members of the Commission shall be license | 26 |
| holders and residents of Illinois. Until the license |
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| program has been established and grants licenses, these | 2 |
| members must hold the qualifications to be license holders. | 3 |
| Each of the remaining 2 members shall be a member who does | 4 |
| not hold a license and shall be an owner or shareholder of | 5 |
| a unit in a common interest community association at the | 6 |
| time of his or her appointment. | 7 |
| (3) Initially, 5 members shall serve for 5-year terms | 8 |
| and 4 members for 4-year terms. Thereafter, terms shall be | 9 |
| for 5 years. Upon expiration of his or her term of office, | 10 |
| a member shall serve until his or her successor is | 11 |
| appointed. Any vacancy occurring during a term shall be | 12 |
| filled by appointment by the Governor, with the advice and | 13 |
| consent of the Senate, for the unexpired term. The Governor | 14 |
| shall remove from the Commission any member whose license | 15 |
| has become void or has been revoked or suspended and may | 16 |
| remove any member of the Commission for neglect of duty, | 17 |
| misconduct, or incompetence. | 18 |
| (4) The presence of two-thirds of the full Commission | 19 |
| shall constitute a quorum for the transaction of business. | 20 |
| Action shall be taken only upon the majority vote of a | 21 |
| quorum, except regarding disciplinary actions which shall | 22 |
| require a unanimous vote of a quorum. | 23 |
| (5) The provisions of Illinois law concerning the | 24 |
| termination schedule for regulatory bodies of the State of | 25 |
| Illinois are applicable to the Commission created by this | 26 |
| Section. |
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| (6) Any member of the Commission, any attorney | 2 |
| providing advice to the Commission, any person acting as a | 3 |
| consultant to the Commission, and any witness testifying in | 4 |
| a proceeding authorized under this Act, excluding the party | 5 |
| making the complaint, is immune from liability in any civil | 6 |
| action brought against him or her for acts occurring while | 7 |
| acting in his or her capacity as a commissioner, | 8 |
| consultant, or witness, if the individual was acting in | 9 |
| good faith within the scope of his or her respective | 10 |
| capacity, made a reasonable effort to obtain the facts of | 11 |
| the matter as to which he or she acted, and acted in the | 12 |
| reasonable belief that the action taken by him or her was | 13 |
| warranted by the facts. | 14 |
| (e) Powers and duties of Commission. The Commission has the | 15 |
| power and duty to: | 16 |
| (1) Elect annually from among its members a chairperson | 17 |
| and prescribe the duties of that office. | 18 |
| (2) Make such rules and regulations, not inconsistent | 19 |
| with the laws of the State of Illinois, as may be necessary | 20 |
| for the orderly conduct of its affairs and for the | 21 |
| administration of this Act, except that no disciplinary | 22 |
| action shall be taken without affording due process and in | 23 |
| conformity with the rules of civil and or criminal evidence | 24 |
| of the State of Illinois. | 25 |
| (3) Enforce rules of professional conduct for | 26 |
| community managers. |
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| (4) Develop appropriate administrative enforcement | 2 |
| procedures for violations of the rules of professional | 3 |
| conduct. | 4 |
| (5) Prescribe forms for and receive applications for | 5 |
| licenses and grant licenses and reinstatements. | 6 |
| (6) Approve examinations to be given to applicants. | 7 |
| (7) Issue licenses and renewals as provided in this | 8 |
| Section. | 9 |
| (8) Impose disciplinary actions in the manner | 10 |
| prescribed in this Section. | 11 |
| (9) Maintain a record of all licenses, suspensions, and | 12 |
| revocations, and of its own proceedings. | 13 |
| (10) Collect all fees prescribed by this Section. | 14 |
| (11) Make rules consistent with this Act to determine | 15 |
| the criteria to be included in the State examination and to | 16 |
| administer or cause to be administered the State | 17 |
| examination. | 18 |
| (12) Administer this Section, including the power to | 19 |
| hire necessary staff. | 20 |
| (f) Disciplinary action. A community manager is subject to | 21 |
| disciplinary action if the community manager commits any of the | 22 |
| following: | 23 |
| (1) A felony or offense involving moral turpitude or | 24 |
| unprofessional conduct. "Unprofessional conduct" means | 25 |
| violating the provisions of an order of this Commission, an | 26 |
| agreement with the Commission, or this Act.
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| (2) Fails to cooperate with the Commission in the | 2 |
| investigation of a complaint, including without | 3 |
| limitation, failure to produce any document, book, or | 4 |
| record in the possession or control of the community | 5 |
| manager after the Commission requests production of that | 6 |
| document, book, or record in the course of an investigation | 7 |
| of a complaint. | 8 |
| (3) Disciplinary action taken by the Commission may | 9 |
| consist of one or more of the following: | 10 |
| (i) revocation or suspension of license; | 11 |
| (ii) refusal to renew or reinstate license; | 12 |
| (iii) placement of the community manager on | 13 |
| probation for a reasonable period of time; | 14 |
| (iv) issuance of reprimand or censure to the | 15 |
| community managers; and | 16 |
| (v) impose a reasonable fine not to exceed $2,500. | 17 |
| (g) Fees. | 18 |
| (1) A fee not to exceed $100, as determined by the | 19 |
| Commission, shall be paid for each application made to the | 20 |
| Commission, whether the application is for examination or | 21 |
| reexamination or for issuance, renewal, reactivation, or | 22 |
| reinstatement of a license, or any other application | 23 |
| requiring formal action or consideration by the | 24 |
| Commission. | 25 |
| (2) All fees shall be paid to the Commission or its | 26 |
| authorized representative and are to be paid by the |
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| applicant in advance of examination dates or of any action | 2 |
| by the Commission. | 3 |
| (3) To further support the funding of the Commission | 4 |
| and the administration of this license program, all | 5 |
| community associations registered as Illinois | 6 |
| not-for-profit corporations shall pay an annual fee to the | 7 |
| Commission of $1 per unit per year with a minimum of $50 | 8 |
| for a community association. | 9 |
| (4) Fees shall not increase more than the increase in | 10 |
| the Midwest Area all items all urban Consumer Price Index. | 11 |
| (h) Disposition of fees. All fees shall be transmitted to | 12 |
| the State Treasurer, for deposit into the Community Manager | 13 |
| License Fund, a special fund in the State treasury established | 14 |
| to support the license program pursuant to Illinois laws, and | 15 |
| the General Assembly shall make annual appropriations from the | 16 |
| Fund for the expenditures of the Commission incurred in the | 17 |
| performance of its duties under this Act, which expenditures | 18 |
| shall be made out of those appropriations upon vouchers and | 19 |
| warrants drawn pursuant to law. | 20 |
| (i) Requirements. Before applying to take the State license | 21 |
| examination, an individual must meet these requirements: | 22 |
| (1) shall have attained the age of 21 and be a citizen | 23 |
| of the United States; | 24 |
| (2) shall not be a convicted felon; and | 25 |
| (3) shall either (i) pass an exam covering the | 26 |
| fundamentals of community association management, |
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| including the Illinois Condominium Property Act, the | 2 |
| Illinois Not-for-Profit Corporation Act, and any other | 3 |
| laws the Commission deems appropriate as it relates to | 4 |
| community association management; or (ii) furnish evidence | 5 |
| satisfactory to the Commission establishing, by experience | 6 |
| or education, that the individual is qualified to hold a | 7 |
| license. | 8 |
| For purposes of this Act, any individual who has practiced | 9 |
| management of community associations in the State of Illinois | 10 |
| for a period of at least 5 years as of the effective date of | 11 |
| this amendatory Act of the 95th General Assembly shall be | 12 |
| deemed to be qualified and exempt from the requirements of the | 13 |
| examination. | 14 |
| (j) License; issuance; renewal; reactivation; | 15 |
| reinstatement. | 16 |
| (1) A license shall be granted by the Commission to any | 17 |
| applicant: | 18 |
| (i) who has completed the requirements of | 19 |
| subsection (i); and | 20 |
| (ii) who further meets the requirements of this | 21 |
| Section. | 22 |
| (2) All licenses shall expire every 4 years on a date | 23 |
| established by the Commission, but may be renewed upon the | 24 |
| payment of the renewal fee authorized by the Commission. | 25 |
| (3) Any person may reactivate an expired license within | 26 |
| a one-year grace period after the date of its expiration by |
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| making written application for reactivation and paying a | 2 |
| reactivation fee imposed by the Commission. | 3 |
| (4) If a person fails to reactivate his or her license | 4 |
| within the one-year grace period specified in subparagraph | 5 |
| (3), the person may reinstate the license within 4 years | 6 |
| after the date of the expiration of the grace period by | 7 |
| making written application for reinstatement, paying a | 8 |
| reinstatement fee, and providing proof to the Commission of | 9 |
| his or her continued professional competence as required by | 10 |
| the Commission. Thereafter, a person shall not be | 11 |
| reinstated unless he or she fulfills and meets the | 12 |
| requirements and conditions required of an applicant | 13 |
| applying for the issuance of an original license, which | 14 |
| requirements shall include retaking and passing the State | 15 |
| license examination. | 16 |
| (5) Any person who performs community association | 17 |
| management services after the expiration of his or her | 18 |
| license shall be practicing in violation of this Act and | 19 |
| shall be subject to the sanctions authorized by this Act. | 20 |
| The Commission may refuse to reactivate or reinstate any | 21 |
| expired license for conduct that constitutes a violation of | 22 |
| any provision of this Act. | 23 |
| (k) Fidelity bonds and segregation of accounts. | 24 |
| (1) A license holder or the firm with whom the license | 25 |
| holder is employed shall not solely and exclusively have | 26 |
| access to and disburse funds of a community association |
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| unless: | 2 |
| (i) There is a fidelity bond in place. | 3 |
| (ii) The fidelity bond is in an amount not less | 4 |
| than all moneys of that association. | 5 |
| (iii) The fidelity bond covers the license holder | 6 |
| and all partners, officers, and employees of the firm | 7 |
| with whom the license holder is employed during the | 8 |
| term of the bond as well as the association officers, | 9 |
| directors, and employees of each community association | 10 |
| they service. | 11 |
| (iv) The insurance company issuing the bond may not | 12 |
| cancel or refuse to renew the bond without giving not | 13 |
| less than 10 day's prior written notice. | 14 |
| (v) The association shall secure and pay for the | 15 |
| bond. | 16 |
| (2) A license holder who provides community | 17 |
| association management services for more than one | 18 |
| community association shall maintain separate, segregated | 19 |
| accounts for each community association. The funds shall | 20 |
| not, in any event, be commingled with the license holder's | 21 |
| or firm's funds or with the funds of any other community | 22 |
| association. The maintenance of these accounts by the | 23 |
| license holder shall be custodial, and such accounts shall | 24 |
| be in the name of the respective community association. | 25 |
| (l) Exempt persons. Except as otherwise provided, this | 26 |
| Section does not apply to: |
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| (1) A licensed attorney acting solely as an incident to | 2 |
| the practice of law. | 3 |
| (2) Any person acting as a receiver, trustee in | 4 |
| bankruptcy, administrator, executor, or guardian acting | 5 |
| under a court order or under the authority of a will or of | 6 |
| a trust instrument. | 7 |
| (3) Employees of a developer and an affiliated | 8 |
| management company of a developer. | 9 |
| (4) Managers of commercial or other non-residential | 10 |
| condominiums. | 11 |
| (m) Standing. Only the duly appointed or elected governing | 12 |
| body of a common interest community association based upon a | 13 |
| duly adopted resolution shall have standing to file a complaint | 14 |
| before the Commission. | 15 |
| (n) Defamation. Notwithstanding anything to the contrary | 16 |
| in this Section, it shall not be a defense in any defamation | 17 |
| suit brought by a manager or management company that a manager | 18 |
| or management company is deemed a public or limited public | 19 |
| figure.
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| Section 95. The State Finance Act is amended by adding | 21 |
| Section 5.708 as follows: | 22 |
| (30 ILCS 105/5.708 new) | 23 |
| Sec. 5.708. The Community Manager License Fund. | 24 |
| Section 99. Effective date. This Act takes effect July 1, |
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| 2009.
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