Full Text of HB1773 98th General Assembly
HB1773ham001 98TH GENERAL ASSEMBLY | Rep. Jim Sacia Filed: 3/7/2013
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| 1 | | AMENDMENT TO HOUSE BILL 1773
| 2 | | AMENDMENT NO. ______. Amend House Bill 1773 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Common Interest Community Association Act | 5 | | is amended by changing Sections 1-25, 1-30, and 1-55 as | 6 | | follows: | 7 | | (765 ILCS 160/1-25)
| 8 | | Sec. 1-25. Board of managers, board of directors, duties, | 9 | | elections, and voting. | 10 | | (a) Elections shall be held in accordance with the | 11 | | community instruments, provided that an election shall be held | 12 | | no less frequently than once every 24 months, for the board of | 13 | | managers or board of directors from among the membership of a | 14 | | common interest community association. | 15 | | (b) (Blank). | 16 | | (c) The members of the board shall serve without |
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| 1 | | compensation, unless the community instruments indicate | 2 | | otherwise. | 3 | | (d) No member of the board or officer shall be elected for | 4 | | a term of more than 4 years, but officers and board members may | 5 | | succeed themselves. | 6 | | (e) If there is a vacancy on the board, the remaining | 7 | | members of the board may fill the vacancy by a two-thirds vote | 8 | | of the remaining board members until the next annual meeting of | 9 | | the membership or until members holding 20% of the votes of the | 10 | | association request a meeting of the members to fill the | 11 | | vacancy for the balance of the term. A meeting of the members | 12 | | shall be called for purposes of filling a vacancy on the board | 13 | | no later than 30 days following the filing of a petition signed | 14 | | by membership holding 20% of the votes of the association | 15 | | requesting such a meeting. | 16 | | (f) There shall be an election of a: | 17 | | (1) president from among the members of the board, who | 18 | | shall preside over the meetings of the board and of the | 19 | | membership; | 20 | | (2) secretary from among the members of the board, who | 21 | | shall keep the minutes of all meetings of the board and of | 22 | | the membership and who shall, in general, perform all the | 23 | | duties incident to the office of secretary; and | 24 | | (3) treasurer from among the members of the board, who | 25 | | shall keep the financial records and books of account. | 26 | | (g) If no election is held to elect board members within |
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| 1 | | the time period specified in the bylaws, or within a reasonable | 2 | | amount of time thereafter not to exceed 90 days, then 20% of | 3 | | the members may bring an action to compel compliance with the | 4 | | election requirements specified in the bylaws. If the court | 5 | | finds that an election was not held to elect members of the | 6 | | board within the required period due to the bad faith acts or | 7 | | omissions of the board of managers or the board of directors, | 8 | | the members shall be entitled to recover their reasonable | 9 | | attorney's fees and costs from the association. If the relevant | 10 | | notice requirements have been met and an election is not held | 11 | | solely due to a lack of a quorum, then this subsection (g) does | 12 | | not apply. | 13 | | (h) Where there is more than one owner of a unit and there | 14 | | is only one member vote associated with that unit, if only one | 15 | | of the multiple owners is present at a meeting of the | 16 | | membership, he or she is entitled to cast the member vote | 17 | | associated with that unit. | 18 | | (h-5) A member may vote: | 19 | | (1) by proxy executed in writing by the member or by | 20 | | his or her duly authorized attorney in fact, provided, | 21 | | however, that the proxy bears the date of execution. Unless | 22 | | the community instruments or the written proxy itself | 23 | | provide otherwise, proxies will not be valid for more than | 24 | | 11 months after the date of its execution; or | 25 | | (2) by submitting an association-issued ballot in | 26 | | person at the election meeting; or |
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| 1 | | (3) by submitting an association-issued ballot to the | 2 | | association or its designated agent by mail or other means | 3 | | of delivery specified in the declaration or bylaws. | 4 | | (i) The association may, upon adoption of the appropriate | 5 | | rules by the board, conduct elections by secret ballot, | 6 | | distributed by the association, whereby the voting ballot is | 7 | | marked only with the voting interest for the member and the | 8 | | vote itself, provided that the association shall further adopt | 9 | | rules to verify the status of the member casting a ballot and | 10 | | provided further that proxies shall not be allowed . A candidate | 11 | | for election to the board or such candidate's representative | 12 | | shall have the right to be present at the counting of ballots | 13 | | at such election. | 14 | | (j) Upon proof of purchase, the purchaser of a unit from a | 15 | | seller other than the developer pursuant to an installment | 16 | | contract for purchase shall, during such times as he or she | 17 | | resides in the unit, be counted toward a quorum for purposes of | 18 | | election of members of the board at any meeting of the | 19 | | membership called for purposes of electing members of the | 20 | | board, shall have the right to vote for the members of the | 21 | | board of the common interest community association and to be | 22 | | elected to and serve on the board unless the seller expressly | 23 | | retains in writing any or all of such rights.
| 24 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11; | 25 | | 97-1090, eff. 8-24-12.) |
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| 1 | | (765 ILCS 160/1-30)
| 2 | | Sec. 1-30. Board duties and obligations; records. | 3 | | (a) The board shall meet at least 3 4 times annually. | 4 | | (b) A member of the board of the common interest community | 5 | | association may not enter into a contract with a current board | 6 | | member, or with a corporation or partnership in which a board | 7 | | member or a member of his or her immediate family has 25% or | 8 | | more interest, unless notice of intent to enter into the | 9 | | contract is given to members within 20 days after a decision is | 10 | | made to enter into the contract and the members are afforded an | 11 | | opportunity by filing a petition, signed by 20% of the | 12 | | membership, for an election to approve or disapprove the | 13 | | contract; such petition shall be filed within 20 days after | 14 | | such notice and such election shall be held within 30 days | 15 | | after filing the petition. For purposes of this subsection, a | 16 | | board member's immediate family means the board member's | 17 | | spouse, parents, and children. | 18 | | (c) The bylaws shall provide for the maintenance, repair, | 19 | | and replacement of the common areas and payments therefor, | 20 | | including the method of approving payment vouchers. | 21 | | (d) (Blank). | 22 | | (e) The association may engage the services of a manager or | 23 | | management company. | 24 | | (f) The association shall have one class of membership | 25 | | unless the declaration or bylaws provide otherwise; however, | 26 | | this subsection (f) shall not be construed to limit the |
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| 1 | | operation of subsection (c) of Section 1-20 of this Act. | 2 | | (g) The board shall have the power, after notice and an | 3 | | opportunity to be heard, to levy and collect reasonable fines | 4 | | from members or unit owners for violations of the declaration, | 5 | | bylaws, and rules and regulations of the common interest | 6 | | community association. | 7 | | (h) Other than attorney's fees and court or arbitration | 8 | | costs, no fees pertaining to the collection of a member's or | 9 | | unit owner's financial obligation to the association, | 10 | | including fees charged by a manager or managing agent, shall be | 11 | | added to and deemed a part of a member's or unit owner's | 12 | | respective share of the common expenses unless: (i) the | 13 | | managing agent fees relate to the costs to collect common | 14 | | expenses for the association; (ii) the fees are set forth in a | 15 | | contract between the managing agent and the association; and | 16 | | (iii) the authority to add the management fees to a member's or | 17 | | unit owner's respective share of the common expenses is | 18 | | specifically stated in the declaration or bylaws of the | 19 | | association. | 20 | | (i) Board records. | 21 | | (1) The board shall maintain the following records of | 22 | | the association and make them available for examination and | 23 | | copying at convenient hours of weekdays by any member or | 24 | | unit owner in a common interest community subject to the | 25 | | authority of the board, their mortgagees, and their duly | 26 | | authorized agents or attorneys: |
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| 1 | | (i) Copies of the recorded declaration, other | 2 | | community instruments, other duly recorded covenants | 3 | | and bylaws and any amendments, articles of | 4 | | incorporation, annual reports, and any rules and | 5 | | regulations adopted by the board shall be available. | 6 | | Prior to the organization of the board, the developer | 7 | | shall maintain and make available the records set forth | 8 | | in this paragraph (i) for examination and copying. | 9 | | (ii) Detailed and accurate records in | 10 | | chronological order of the receipts and expenditures | 11 | | affecting the common areas, specifying and itemizing | 12 | | the maintenance and repair expenses of the common areas | 13 | | and any other expenses incurred, and copies of all | 14 | | contracts, leases, or other agreements entered into by | 15 | | the board shall be maintained. | 16 | | (iii) The minutes of all meetings of the board | 17 | | which shall be maintained for not less than 7 years. | 18 | | (iv) With a written statement of a proper purpose, | 19 | | ballots and proxies related thereto, if any, for any | 20 | | election held for the board and for any other matters | 21 | | voted on by the members, which shall be maintained for | 22 | | not less than one year. | 23 | | (v) With a written statement of a proper purpose, | 24 | | such other records of the board as are available for | 25 | | inspection by members of a not-for-profit corporation | 26 | | pursuant to Section 107.75 of the General Not For |
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| 1 | | Profit Corporation Act of 1986 shall be maintained. | 2 | | (vi) With respect to units owned by a land trust, a | 3 | | living trust, or other legal entity, the trustee, | 4 | | officer, or manager of the entity may designate, in | 5 | | writing, a person to cast votes on behalf of the member | 6 | | or unit owner and a designation shall remain in effect | 7 | | until a subsequent document is filed with the | 8 | | association. | 9 | | (2) Where a request for records under this subsection | 10 | | is made in writing to the board or its agent, failure to | 11 | | provide the requested record or to respond within 30 days | 12 | | shall be deemed a denial by the board. | 13 | | (3) A reasonable fee may be charged by the board for | 14 | | the cost of retrieving and copying records properly | 15 | | requested. | 16 | | (4) If the board fails to provide records properly | 17 | | requested under paragraph (1) of this subsection (i) within | 18 | | the time period provided in that paragraph (1), the member | 19 | | may seek appropriate relief and shall be entitled to an | 20 | | award of reasonable attorney's fees and costs if the member | 21 | | prevails and the court finds that such failure is due to | 22 | | the acts or omissions of the board of managers or the board | 23 | | of directors. | 24 | | (j) The board shall have standing and capacity to act in a | 25 | | representative capacity in relation to matters involving the | 26 | | common areas or more than one unit, on behalf of the members or |
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| 1 | | unit owners as their interests may appear.
| 2 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11; | 3 | | 97-1090, eff. 8-24-12.) | 4 | | (765 ILCS 160/1-55)
| 5 | | Sec. 1-55. Fidelity insurance. An association with 30 or | 6 | | more units shall obtain and maintain fidelity insurance | 7 | | covering persons who control or disburse funds of the | 8 | | association for the maximum amount of coverage that is | 9 | | commercially available or reasonably required to protect funds | 10 | | in the custody or control of the association. All management | 11 | | companies which are responsible for the funds held or | 12 | | administered by the association shall maintain and furnish to | 13 | | the association a fidelity bond for the maximum amount of | 14 | | coverage that is commercially available or reasonably required | 15 | | to protect funds in the custody of the management company at | 16 | | any time. The association shall bear the cost of the fidelity | 17 | | insurance and fidelity bond, unless otherwise provided by | 18 | | contract between the association and a management company.
| 19 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)".
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