State of Illinois
90th General Assembly
Legislation

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[ Conference Committee Report 001 ]

90_SB0408ham001

                                           LRB9002802NTsbam01
 1                    AMENDMENT TO SENATE BILL 408
 2        AMENDMENT NO.     .  Amend Senate Bill 408 on page 1,  by
 3    replacing lines 1 and 2 with the following:
 4        "AN ACT concerning property, amending named Acts."; and
 5    on page 1, below line 26, by inserting the following:
 6        "Section  10.  The Condominium Property Act is amended by
 7    changing Section 19 as follows:
 8        (765 ILCS 605/19) (from Ch. 30, par. 319)
 9        Sec. 19.  Records of the  association;  availability  for
10    examination.
11        (a)  The  board  of  managers  of every association shall
12    keep and maintain the following records, or true and complete
13    copies of  these  records,  at  the  association's  principal
14    office:
15             (1)  the   association's  declaration,  bylaws,  and
16        plats of survey, and all amendments of these;
17             (2)  the rules and regulations of  the  association,
18        if any;
19             (3)  if   the   association  is  incorporated  as  a
20        corporation,  the  articles  of  incorporation   of   the
21        association   and  all  amendments  to  the  articles  of
                            -2-            LRB9002802NTsbam01
 1        incorporation;
 2             (4)  minutes of all meetings of the association  and
 3        its  board  of  managers  for the immediately preceding 7
 4        years;
 5             (5)  all  current  policies  of  insurance  of   the
 6        association;
 7             (6)  all  contracts,  leases,  and  other agreements
 8        then in effect to which the association  is  a  party  or
 9        under  which  the  association  or  the  unit owners have
10        obligations or liabilities;
11             (7)  a current listing of the names, addresses,  and
12        weighted vote of all members entitled to vote;
13             (8)  ballots  and proxies related to ballots for all
14        matters voted on by the members of the association during
15        the immediately preceding 12 months,  including  but  not
16        limited  to  the  election  of  members  of  the board of
17        managers; and
18             (9)  the  books  and  records  of  account  for  the
19        association's current and 10 immediately preceding fiscal
20        years, including but not limited to itemized and detailed
21        records of all receipts and expenditures. shall  maintain
22        the  following  records  of the association available for
23        examination and copying at convenient hours  of  weekdays
24        by  the  unit  owners  or their mortgagees and their duly
25        authorized agents or attorneys.
26             (1)  Copies of the  recorded  Declaration,  By-Laws,
27        other   condominium   instruments   and  any  amendments,
28        Articles of  Incorporation  of  the  association,  annual
29        reports  and  any  rules  and  regulations adopted by the
30        association or its Board of Managers shall be  available.
31        Prior   to  the  organization  of  the  association,  the
32        developer shall maintain and make available  the  records
33        set  forth  in  this  subsection  (a) for examination and
34        copying.
                            -3-            LRB9002802NTsbam01
 1             (2)  Detailed  accurate  records  in   chronological
 2        order  of  the  receipts  and  expenditures affecting the
 3        common elements, specifying and itemizing the maintenance
 4        and repair expenses of the common elements and any  other
 5        expenses  incurred,  and copies of all contracts, leases,
 6        or other agreements entered into by the association shall
 7        be maintained.
 8             (3)  The minutes of all meetings of the  association
 9        and  the  Board  of  Managers  shall  be maintained.  The
10        association shall maintain these minutes for a period  of
11        not less than 7 years.
12             (4)  Ballots  and  proxies  related  thereto for all
13        elections to the Board of  Managers  and  for  any  other
14        matters  voted  on by the unit owners shall be maintained
15        for a period of not less than 1 year; provided  that  for
16        associations   that  adopt  the  secret  ballot  election
17        process under Section 18 of this Act, unless directed  by
18        court  order,  only  the  voting  ballot excluding a unit
19        number shall be subject to inspection and copying.
20             (5)  Such other records of the  association  as  are
21        available  for  inspection by members of a not-for-profit
22        corporation pursuant to Section 107.75 of the General Not
23        For Profit Corporation Act of 1986 shall be maintained.
24             (6)  With respect to units owned by a land trust, if
25        a trustee designates, in writing, a person to cast  votes
26        on  behalf  of  the  unit  owner,  that designation shall
27        remain in effect until a  subsequent  document  is  filed
28        with the association.
29        (b)  Any member of an association shall have the right to
30    inspect, examine, and make copies of the records described in
31    subdivisions (1), (2), (3), (4), and (5) of subsection (a) of
32    this  Section,  in person or by agent, at any reasonable time
33    or times, at the association's principal office.  In order to
34    exercise this right, a member must submit a  written  request
                            -4-            LRB9002802NTsbam01
 1    to  the  association's  board  of  managers or its authorized
 2    agent, stating with particularity the records  sought  to  be
 3    examined.   Failure  of an association's board of managers to
 4    make available all records so requested  within  30  days  of
 5    receipt  of  the  member's  written request shall be deemed a
 6    denial.
 7        Any member who  prevails  in  an  enforcement  action  to
 8    compel  examination of records described in subdivisions (1),
 9    (2), (3), (4), and (5) of  subsection  (a)  of  this  Section
10    shall  be  entitled to recover reasonable attorney's fees and
11    costs from the association. Where a request for records under
12    this Section is made in writing to the board of  managers  or
13    its  agent,  failure  to  provide  the requested record or to
14    respond within 30 days shall be deemed a denial by the  board
15    of managers.
16        (c)  (Blank).  A  reasonable  fee  may  be charged by the
17    association or its Board of Managers for the actual  cost  of
18    copying.
19        (d)  (Blank).  If  the board of managers fails to provide
20    records properly requested under subsection  (a)  within  the
21    time  period  provided  in subsection (b), the unit owner may
22    seek the appropriate relief including an award of  attorney's
23    fees and costs.
24        (e)  Except  as  otherwise  provided in subsection (f) of
25    this Section, any member of an  association  shall  have  the
26    right  to  inspect,  examine,  and make copies of the records
27    described  in  subdivisions  (6),  (7),  (8),  and   (9)   of
28    subsection (a) of this Section, in person or by agent, at any
29    reasonable  time  or  times but only for a proper purpose, at
30    the association's principal office.   In  order  to  exercise
31    this  right,  a  member must submit a written request, to the
32    association's board of  managers  or  its  authorized  agent,
33    stating  with particularity the records sought to be examined
34    and a  proper  purpose  for  the  request.   Subject  to  the
                            -5-            LRB9002802NTsbam01
 1    provisions  of  subsection (f) of this Section, failure of an
 2    association's board of managers to make available all records
 3    so requested within  30  business  days  of  receipt  of  the
 4    member's  written request shall be deemed a denial; provided,
 5    however, that the board of managers of  an  association  that
 6    has  adopted  a secret ballot election process as provided in
 7    Section 18 of this Act shall not be deemed to have  denied  a
 8    member's  request for records described in subdivision (8) of
 9    subsection (a) of this Section  if  voting  ballots,  without
10    identifying   unit   numbers,   are  made  available  to  the
11    requesting member within 30 days of receipt of  the  member's
12    written request.
13        In  an  action to compel examination of records described
14    in subdivisions (6), (7), (8), and (9) of subsection  (a)  of
15    this  Section,  the  burden  of  proof  is upon the member to
16    establish that the member's request  is  based  on  a  proper
17    purpose.  Any member who prevails in an enforcement action to
18    compel  examination of records described in subdivisions (6),
19    (7), (8), and (9) of subsection (a) of this Section shall  be
20    entitled to recover reasonable attorney's fees and costs from
21    the  association  only  if  the court finds that the board of
22    directors acted in bad faith in denying the member's request.
23        (f)  The actual cost to the association of retrieving and
24    making  requested  records  available  for   inspection   and
25    examination  under  this  Section  shall  be  charged  by the
26    association to the requesting member.  If a  member  requests
27    copies  of  records  requested under this Section, the actual
28    costs to the association of  reproducing  the  records  shall
29    also be charged by the association to the requesting member.
30        (g)  Notwithstanding  the provisions of subsection (e) of
31    this Section, unless otherwise directed by  court  order,  an
32    association need not make the following records available for
33    inspection, examination, or copying by its members:
34             (1)  documents  relating to appointment, employment,
                            -6-            LRB9002802NTsbam01
 1        discipline, or dismissal of association employees;
 2             (2)  documents relating to actions  pending  against
 3        or  on behalf of the association or its board of managers
 4        in a court or administrative tribunal;
 5             (3)  documents  relating   to   actions   threatened
 6        against,  or  probable  of  assertion  on  behalf of, the
 7        association or  its  board  of  mangers  in  a  court  or
 8        administrative tribunal;
 9             (4)  documents  relating to common expenses or other
10        charges owed  by  a  member  other  than  the  requesting
11        member; and
12             (5)  documents   provided   to   an  association  in
13        connection with the lease, sale, or other transfer  of  a
14        unit by a member other than the requesting member.
15        (h)  The provisions of this Section are applicable to all
16    condominium instruments recorded under this Act.  Any portion
17    of a condominium instrument that contains provisions contrary
18    to  these  provisions  shall be void as against public policy
19    and ineffective.  Any condominium instrument  that  fails  to
20    contain  the  provisions  required  by  this Section shall be
21    deemed to incorporate the provisions by operation of law.
22    (Source: P.A. 87-746; 88-135.)
23        Section 99.  Effective date.  This Act takes effect  upon
24    becoming  law,  except that the provisions changing Section 1
25    of the Entry on Adjoining Land to Accomplish Repairs Act take
26    effect January 1, 1998.".

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