Full Text of SB1579 96th General Assembly
SB1579eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning professions and occupations.
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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 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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| assessment, rents, or other costs that may become a lien on the | 2 |
| unit or lot.
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| "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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| "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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| 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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| (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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| (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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| Act and the applicable rules.
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| 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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| (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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| (2) Assist the Department in the following matters:
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| (A) enforcing the rules of professional conduct as | 3 |
| stated under this Act;
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| (B) developing appropriate administrative | 5 |
| enforcement procedures for violations of the rules of | 6 |
| professional conduct;
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| (C) providing forms and receiving applications for | 8 |
| licensure;
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| (D) creating examinations to be given to | 10 |
| applicants;
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| (E) issuing licenses and renewals as provided | 12 |
| under this Act;
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| (F) imposing disciplinary actions in the manner | 14 |
| prescribed under this Act; and
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| (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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| 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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| (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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| 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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| (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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| (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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| 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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| (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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| (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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| (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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| (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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| 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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| (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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| 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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| (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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| (b) A community association manager is subject to |
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| 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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| 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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| (c) All fees shall be paid to the Department or its |
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| 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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| (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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| (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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| (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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| 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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| (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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| 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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| (b) The continuing education requirement for community |
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| 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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| (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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| (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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| 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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| Section 4.31 as follows: | 2 |
| (5 ILCS 80/4.31 new)
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| 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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| Sec. 5.719. The Community Association Manager Licensing | 10 |
| Fund. | 11 |
| (765 ILCS 605/18.7 rep.)
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| 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. |
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