HB0595 EngrossedLRB098 03417 MGM 33432 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Community Association Manager Licensing and
5Disciplinary Act is amended by changing Sections 5, 10, 15, 20,
625, 27, 32, 40, 50, 55, 60, 65, 70, 75, 85, 87, 92, 135, 155,
7and 165 and by adding Section 42 as follows:
 
8    (225 ILCS 427/5)
9    (Section scheduled to be repealed on January 1, 2020)
10    Sec. 5. Legislative intent. It is the intent of the General
11Assembly that this Act provide for the licensing and regulation
12of managers of community association managers and community
13association management firms associations, ensure that those
14who hold themselves out as possessing professional
15qualifications to engage in the business provision of community
16association management services are, in fact, qualified to
17render management services of a professional nature, and
18provide for the maintenance of high standards of professional
19conduct by those licensed to provide as community association
20management services managers.
21(Source: P.A. 96-726, eff. 7-1-10.)
 
22    (225 ILCS 427/10)

 

 

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1    (Section scheduled to be repealed on January 1, 2020)
2    Sec. 10. Definitions. As used in this Act:
3    "Address of record" means the designated address recorded
4by the Department in the applicant's or licensee's application
5file or license file maintained by the Department's licensure
6maintenance unit. It is the duty of the applicant or licensee
7to inform the Department of any change of address, and such
8changes must be made either through the Department's website or
9by contacting the Department's licensure maintenance unit.
10    "Advertise" means, but is not limited to, issuing or
11causing to be distributed any card, sign or device to any
12person; or causing, permitting or allowing any sign or marking
13on or in any building, structure, newspaper, magazine or
14directory, or on radio or television; or advertising by any
15other means designed to secure public attention.
16    "Board" means the Illinois Community Association Manager
17Licensing and Disciplinary Board.
18    "Community association" means an association in which
19membership is a condition of ownership or shareholder interest
20of a unit in a condominium, cooperative, townhouse, villa, or
21other residential unit which is part of a residential
22development plan and that is authorized to impose an
23assessment, rents, or other costs that may become a lien on the
24unit or lot.
25    "Community association funds" means any assessments, fees,
26fines, or other funds collected by the community association

 

 

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1manager from the community association, or its members, other
2than the compensation paid to the community association manager
3for performance of community association management services.
4    "Community association management firm" means a company,
5corporation, limited liability company, or other entity that
6engages in the community association management business.
7    "Community association management services" means those
8services listed in the definition of community association
9manager in this Section.
10    "Community Association Management Agency" means a company,
11firm, corporation, limited liability company, or other entity
12that engages in the community association management business
13and employs, in addition to the licensee-in-charge, at least
14one other person in conducting such business.
15    "Community association manager" means an individual who
16administers for remuneration the financial, administrative,
17maintenance, or other duties for the community association,
18including the following services: (A) collecting, controlling
19or disbursing funds of the community association or having the
20authority to do so; (B) preparing budgets or other financial
21documents for the community association; (C) assisting in the
22conduct of community association meetings; (D) maintaining
23association records; and (E) administrating association
24contracts, as stated in the declaration, bylaws, proprietary
25lease, declaration of covenants, or other governing document of
26the community association. "Community association manager"

 

 

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1does not mean support staff, including, but not limited to
2bookkeepers, administrative assistants, secretaries, property
3inspectors, or customer service representatives.
4    "Department" means the Department of Financial and
5Professional Regulation.
6    "License" means the license issued to a person,
7corporation, partnership, limited liability company, or other
8legal entity to act as a community association manager under
9this Act to provide community association management services
10or other authority to practice issued under this Act.
11    "Person" means any individual, firm, corporation,
12partnership, limited liability company, or other legal entity
13organization, or body politic.
14    "Licensee-in-charge" means a person licensed as a
15community association manager who has been designated by a
16Community Association Management Agency as the full-time
17management employee or owner who assumes sole responsibility
18for maintaining all records required by this Act and who
19assumes sole responsibility for assuring the licensed agency's
20compliance with its responsibilities as stated in the Act.
21    "Secretary" means the Secretary of Financial and
22Professional Regulation.
23    "Supervising community association manager" means an
24individual licensed as a community association manager who
25manages and supervises licensees in an office.
26(Source: P.A. 96-726, eff. 7-1-10.)
 

 

 

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1    (225 ILCS 427/15)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 15. License required. It Beginning 12 months after the
4adoption of rules providing for the licensure of a community
5association manager in Illinois under this Act, it shall be
6unlawful for any person, corporation, partnership, limited
7liability company, or other entity, or other business to
8provide community association management services, or provide
9services as a community association manager, or hold himself,
10herself, or itself out as a community association manager or
11community association management firm to any community
12association in this State, unless he, or she, or it holds a
13current and valid license issued licensed by the Department or
14is otherwise exempt from licensure under this Act.
15(Source: P.A. 96-726, eff. 7-1-10.)
 
16    (225 ILCS 427/20)
17    (Section scheduled to be repealed on January 1, 2020)
18    Sec. 20. Exemptions.
19    (a) The requirement for holding a license under this This
20Act shall does not apply to any of the following:
21        (1) Any director, officer, or member of a community
22    association providing one or more of the services of a
23    community association manager to a community association
24    without compensation for such services to the association.

 

 

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1        (2) Any person, corporation, partnership, or limited
2    liability company providing one or more of the services of
3    a community association manager to a community association
4    of 10 units or less.
5        (3) A licensed attorney acting solely as an incident to
6    the practice of law.
7        (4) A person acting as a receiver, trustee in
8    bankruptcy, administrator, executor, or guardian acting
9    under a court order or under the authority of a will or of
10    a trust instrument.
11        (5) A person licensed in this State under any other Act
12    from engaging the practice for which he or she is licensed.
13    (b) A licensed community association manager may not
14perform or engage in any activities for which a real estate
15managing broker or real estate broker's salesperson's license
16is required under the Real Estate License Act of 2000, unless
17he or she also possesses a current and valid license under the
18Real Estate License Act of 2000 and is providing those services
19as provided for in the Real Estate License Act of 2000 and the
20applicable rules.
21    (c) A person may temporarily act as, or provide services
22as, a community association manager without being licensed
23under this Act if the person (i) is a community association
24manager regulated under the laws of another state or territory
25of the United States or another country and (ii) has applied in
26writing to the Department, on forms prepared and furnished by

 

 

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1the Department, for licensure under this Act. This temporary
2right to act as a community association manager shall expire ,
3but only until the expiration of 6 months after the filing of
4his or her written application to the Department; , his or upon
5the her withdrawal of the application for licensure under this
6Act; or upon delivery of , he or she has received a notice of
7intent to deny the application from the Department; , or upon
8the denial of the application by the Department, whichever
9occurs first.
10(Source: P.A. 96-726, eff. 7-1-10.)
 
11    (225 ILCS 427/25)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 25. Community Association Manager Licensing and
14Disciplinary Board.
15    (a) There is hereby created the Community Association
16Manager Licensing and Disciplinary Board, which shall consist
17of 7 members appointed by the Secretary. All members must be
18residents of the State and must have resided in the State for
19at least 5 years immediately preceding the date of appointment.
20Five members of the Board must be licensees under this Act, at
21least two members of which shall be supervising community
22association managers except that, initially, these members
23must meet the qualifications for licensure and have obtained a
24license within 6 months after the effective date of this Act.
25Two members of the Board shall be owners of, or hold a

 

 

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1shareholder's interest in, shareholders of a unit in a
2community association at the time of appointment who are not
3licensees under this Act and have no direct affiliation or work
4experience with the community association's community
5association manager. This Board shall act in an advisory
6capacity to the Department.
7    (b) Board members shall serve for terms of 5 years, except
8that, initially, 4 members shall serve for 5 years and 3
9members shall serve for 4 years. All members shall serve until
10his or her successor is appointed and qualified. All vacancies
11shall be filled in like manner for the unexpired term. No
12member shall serve for more than 2 successive terms. The
13Secretary shall remove from the Board any member whose license
14has become void or has been revoked or suspended and may remove
15any member of the Board for neglect of duty, misconduct, or
16incompetence. A member who is subject to formal disciplinary
17proceedings shall disqualify himself or herself from all Board
18business until the charge is resolved. A member also shall
19disqualify himself or herself from any matter on which the
20member cannot act objectively.
21    (c) Four Board members shall constitute a quorum. A quorum
22is required for all Board decisions.
23    (d) The Board shall may elect annually a chairperson and
24vice chairperson.
25    (e) Each member shall receive reimbursement as set by the
26Governor's Travel Control Board for expenses incurred in

 

 

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1carrying out the duties as a Board member. The Board shall be
2compensated as determined by the Secretary.
3    (f) The Board may recommend policies, procedures, and rules
4relevant to the administration and enforcement of this Act.
5(Source: P.A. 96-726, eff. 7-1-10.)
 
6    (225 ILCS 427/27)
7    (Section scheduled to be repealed on January 1, 2020)
8    Sec. 27. Immunity from Liability. Any member of the Board,
9any attorney providing advice to the Board or Department, any
10person acting as a consultant to the Board or Department, and
11any witness testifying in a proceeding authorized under this
12Act, excluding the party making the complaint, shall be immune
13from liability in any civil action brought against him or her
14for acts occurring while acting in his or her capacity as a
15Board member, attorney, consultant, or witness, respectively,
16unless the conduct that gave rise to the action was willful or
17wanton misconduct.
18(Source: P.A. 96-726, eff. 7-1-10.)
 
19    (225 ILCS 427/32)
20    (Section scheduled to be repealed on January 1, 2020)
21    Sec. 32. Social Security Number or Federal Tax
22Identification Number on license application. In addition to
23any other information required to be contained in the
24application, every application for an original license under

 

 

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1this Act shall include the applicant's Social Security Number
2or Federal Tax Identification Number, which shall be retained
3in the Department's agency's records pertaining to the license.
4As soon as practical, the Department shall assign a customer's
5identification number to each applicant for a license.
6    Every application for a renewal or restored license shall
7require the applicant's customer identification number.
8(Source: P.A. 96-726, eff. 7-1-10; 97-400, eff. 1-1-12.)
 
9    (225 ILCS 427/40)
10    (Section scheduled to be repealed on January 1, 2020)
11    Sec. 40. Qualifications for licensure as a community
12association manager.
13    (a) No person shall be qualified for licensure as a
14community association manager under this Act, unless he or she
15has applied in writing on the prescribed forms and has paid the
16required, nonrefundable fees and meets all of the following
17qualifications:
18        (1) He or she is at least 21 years of age.
19        (2) He or she provides satisfactory evidence of having
20    completed at least 20 classroom hours in community
21    association management courses approved by the Board.
22        (3) He or she has passed an examination authorized by
23    the Department.
24        (4) He or she has not committed an act or acts, in this
25    or any other jurisdiction, that would be a violation of

 

 

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1    this Act.
2        (5) He or she is of good moral character. In
3    determining moral character under this Section, the
4    Department may take into consideration whether the
5    applicant has engaged in conduct or activities that would
6    constitute grounds for discipline under this Act. Good
7    moral character is a continuing requirement of licensure.
8    Conviction of crimes may be used in determining moral
9    character, but shall not constitute an absolute bar to
10    licensure.
11        (6) He or she has not been declared by any court of
12    competent jurisdiction to be incompetent by reason of
13    mental or physical defect or disease, unless a court has
14    subsequently declared him or her to be competent.
15        (7) He or she complies with any additional
16    qualifications for licensure as determined by rule of the
17    Department.
18    (b) The education requirement set forth in item (2) of
19subsection (a) of this Section shall not apply to persons
20holding a real estate broker or real estate broker salesperson
21license in good standing issued under the Real Estate License
22Act of 2000.
23    (c) The examination and initial education requirement of
24items (2) and (3) of subsection (a) of this Section shall not
25apply to any person who within 6 months from the effective date
26of the requirement for licensure, as set forth in Section 170

 

 

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1of this Act, applies for a license by providing satisfactory
2evidence to the Department of qualifying experience or
3education, as may be set forth by rule, including without
4limitation evidence that he or she has (i) practiced community
5association management for a period of 5 years or (ii) achieved
6a designation awarded by recognized community association
7management organizations in the State.
8    (d) Applicants have 3 years from the date of application to
9complete the application process. If the process has not been
10completed within the 3 years, the application shall be denied,
11the fee shall be forfeited, and the applicant must reapply and
12meet the requirements in effect at the time of re-application.
13(Source: P.A. 96-726, eff. 7-1-10; 96-993, eff. 7-2-10.)
 
14    (225 ILCS 427/42 new)
15    (Section scheduled to be repealed on January 1, 2020)
16    Sec. 42. Qualifications for licensure as a supervising
17community association manager.
18    (a) No person shall be qualified for licensure as a
19supervising community association manager under this Act
20unless he or she has applied in writing on the prescribed
21forms, has paid the required nonrefundable fees, and meets all
22of the following qualifications:
23        (1) He or she is at least 21 years of age.
24        (2) He or she has been licensed at least one out of the
25    last 2 preceding years as a community association manager.

 

 

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1        (3) He or she provides satisfactory evidence of having
2    completed at least 30 classroom hours in community
3    association management courses approved by the Board, 20
4    hours of which shall be those pre-license hours required to
5    obtain a community association manager license, and 10
6    additional hours completed the year immediately preceding
7    the filing of the application for a supervising community
8    association manager license, which shall focus on
9    community association administration, management, and
10    supervision.
11        (4) He or she has passed an examination authorized by
12    the Department.
13        (5) He or she has not committed an act or acts, in this
14    or any other jurisdiction, that would be a violation of
15    this Act.
16        (6) He or she is of good moral character. In
17    determining moral character under this Section, the
18    Department may take into consideration whether the
19    applicant has engaged in conduct or activities that would
20    constitute grounds for discipline under this Act. Good
21    moral character is a continuing requirement of licensure.
22    Conviction of crimes may be used in determining moral
23    character, but shall not constitute an absolute bar to
24    licensure.
25        (7) He or she has not been declared by any court of
26    competent jurisdiction to be incompetent by reason of

 

 

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1    mental or physical defect or disease, unless a court has
2    subsequently declared him or her to be competent.
3        (8) He or she complies with any additional
4    qualifications for licensure as determined by rule of the
5    Department.
6    (b) The initial 20-hour education requirement set forth in
7item (3) of subsection (a) of this Section shall not apply to
8persons holding a real estate managing broker or real estate
9broker license in good standing issued under the Real Estate
10License Act of 2000. The 10 additional hours required for
11licensure under this Section shall be completed as required.
12    (c) The examination and initial education requirement of
13items (3) and (4) of subsection (a) of this Section shall not
14apply to any person who, within 6 months after the effective
15date of the requirement for licensure, as set forth in Section
16170 of this Act, applies for a license by providing
17satisfactory evidence to the Department of qualifying
18experience or education, as may be set forth by rule, including
19without limitation, evidence that he or she has practiced
20community association management for a period of 7 years.
21    (d) Applicants have 3 years after the date of application
22to complete the application process. If the process has not
23been completed within the 3 years, the application shall be
24denied, the fee shall be forfeited, and the applicant must
25reapply and meet the requirements in effect at the time of
26re-application.
 

 

 

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1    (225 ILCS 427/50)
2    (Section scheduled to be repealed on January 1, 2020)
3    Sec. 50. Community association management firm Association
4Management Agency.
5    (a) No firm, corporation, partnership, limited liability
6company, or other legal entity shall provide or offer to
7provide community association management services, unless it
8has applied in writing on the prescribed forms and has paid the
9required nonrefundable fees and provided evidence to the
10Department that the firm has designated a licensed supervising
11community association manager to supervise and manage the firm.
12A designated supervising community association manager shall
13be a continuing requirement of firm licensure. No supervising
14community association manager may be the supervising community
15association manager for more than one firm. such services are
16provided through:
17        (1) an employee or independent contractor who is
18    licensed under this Act;
19        (2) a natural person who is acting under the direct
20    supervision of an employee of such firm, corporation,
21    limited liability company, or other legal entity that is
22    licensed under this Act; or
23        (3) a natural person who is legally authorized to
24    provide such services.
25    (b) Any firm, corporation, partnership, limited liability

 

 

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1company, or other legal entity that is providing, or offering
2to provide, community association management services and is
3not in compliance with Section 50 and other the provisions of
4this Act shall be subject to the fines, injunctions, cease and
5desist provisions, and penalties provided for in Sections 90,
692, and 155 of this Act.
7    (c) No community association manager may be the
8licensee-in-charge for more than one firm, corporation,
9limited liability company, or other legal entity.
10(Source: P.A. 96-726, eff. 7-1-10.)
 
11    (225 ILCS 427/55)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 55. Fidelity insurance; segregation of accounts.
14    (a) The supervising community association manager or the
15community association management firm A community association
16manager or the Community Association Management Agency with
17which he or she is employed shall not have access to and
18disburse community association funds of a community
19association unless each of the following conditions occur:
20        (1) There is fidelity insurance in place to insure
21    against loss for theft of community association funds.
22        (2) The fidelity insurance is not less than all moneys
23    under the control of the supervising community association
24    manager community association manager or the employing
25    community association management firm Community

 

 

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1    Association Management Agency for the association.
2        (3) The fidelity insurance covers the community
3    association manager, supervising community association
4    manager, and all partners, officers, and employees of the
5    community association management firm Community
6    Association Management Agency with whom he or she is
7    employed during the term of the insurance coverage, which
8    shall be at least for the same term as the service
9    agreement between the community association management
10    firm or supervising community association manager as well
11    as the community association officers, directors, and
12    employees.
13        (4) The insurance company issuing the fidelity
14    insurance may not cancel or refuse to renew the bond
15    without giving at least 10 days' prior written notice.
16        (5) Unless an agreement between the community
17    association and the supervising community association
18    manager or the community association management firm
19    Community Association Management Agency provides to the
20    contrary, a community association may secure and pay the
21    Association secures and pays for the fidelity insurance
22    required by this Section. The supervising community
23    association manager or the community association
24    management firm community association manager and the
25    Community Association Management Agency must be named as
26    additional insured parties on the community association

 

 

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1    policy.
2    (b) A community association management firm manager or
3Community Association Management Agency that provides
4community association management services for more than one
5community association shall maintain separate, segregated
6accounts for each community association or, with the consent of
7the community association, combine the accounts of one or more
8community associations, but in that event, separately account
9for the funds of each community association. The funds shall
10not, in any event, be commingled with the supervising community
11association manager's or community association management
12firm's Community Association Management Agency's funds. The
13maintenance of such accounts shall be custodial, and such
14accounts shall be in the name of the respective community
15association or community association manager or Community
16Association Management Agency as the agent for the association.
17    (c) The supervising community association manager or
18community association management firm Community Association
19Management Agency shall obtain the appropriate general
20liability and errors and omissions insurance, as determined by
21the Department, to cover any losses or claims against the
22supervising community association manager or the community
23association management firm community association clients.
24    (d) The Department shall have authority to promulgate
25additional rules regarding insurance, fidelity insurance and
26all accounts maintained and to be maintained by a supervising

 

 

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1community association manager or community association
2management firm Community Association Management Agency.
3(Source: P.A. 96-726, eff. 7-1-10.)
 
4    (225 ILCS 427/60)
5    (Section scheduled to be repealed on January 1, 2020)
6    Sec. 60. Licenses; renewals; restoration; person in
7military service.
8    (a) The expiration date and renewal period for each license
9issued under this Act shall be set by rule. The Department may
10promulgate rules requiring continuing education and set all
11necessary requirements for such, including but not limited to
12fees, approved coursework, number of hours, and waivers of
13continuing education.
14    (b) Any licensee who has permitted his, or her, or its
15license to expire may have the license restored by making
16application to the Department and filing proof acceptable to
17the Department of fitness to have his, or her, or its license
18restored, by which may include sworn evidence certifying to
19active practice in another jurisdiction satisfactory to the
20Department, complying with any continuing education
21requirements, and paying the required restoration fee.
22    (c) If the person has not maintained an active practice in
23another jurisdiction satisfactory to the Department, the
24Department shall determine, by an evaluation program
25established by rule, the person's fitness to resume active

 

 

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1status and may require the person to complete a period of
2evaluated clinical experience and successful completion of a
3practical examination. However, any person whose license
4expired while (i) in federal service on active duty with the
5Armed Forces of the United States or called into service or
6training with the State Militia or (ii) in training or
7education under the supervision of the United States
8preliminary to induction into the military service may have his
9or her license renewed or restored without paying any lapsed
10renewal fees if, within 2 years after honorable termination of
11the service, training or education, except under condition
12other than honorable, he or she furnishes the Department with
13satisfactory evidence to the effect that he or she has been so
14engaged and that the service, training, or education has been
15so terminated.
16    (d) A community association manager, community association
17management firm or supervising community association manager
18who notifies the Department, in writing on forms prescribed by
19the Department, may place his, or her, or its license on
20inactive status and shall be excused from the payment of
21renewal fees until the person notifies the Department in
22writing of the intention to resume active practice.
23    (e) A community association manager, community association
24management firm, or supervising community association manager
25requesting his, or her, or its license be changed from inactive
26to active status shall be required to pay the current renewal

 

 

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1fee and shall also demonstrate compliance with the continuing
2education requirements.
3    (f) Any licensee with a license nonrenewed or on inactive
4license status shall not provide community association
5management services or provide services as community
6association manager as set forth in this Act.
7    (g) Any person violating subsection (f) of this Section
8shall be considered to be practicing without a license and will
9be subject to the disciplinary provisions of this Act.
10(Source: P.A. 96-726, eff. 7-1-10.)
 
11    (225 ILCS 427/65)
12    (Section scheduled to be repealed on January 1, 2020)
13    Sec. 65. Fees; Community Association Manager Licensing and
14Disciplinary Fund.
15    (a) The fees for the administration and enforcement of this
16Act, including, but not limited to, initial licensure, renewal,
17and restoration, shall be set by rule of the Department. The
18fees shall be nonrefundable.
19    (b) In addition to the application fee, applicants for the
20examination are required to pay, either to the Department or
21the designated testing service, a fee covering the cost of
22determining an applicant's eligibility and providing the
23examination. Failure to appear for the examination on the
24scheduled date, at the time and place specified, after the
25applicant's application and fee for examination have been

 

 

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1received and acknowledged by the Department or the designated
2testing service, shall result in the forfeiture of the fee.
3    (c) To support the costs of administering this Act, all
4community associations that (i) are subject to this Act by
5having 10 or more units, (ii) retain an individual to provide
6services as a community association manager for compensation,
7(iii) are not master associations under Section 18.5 of the
8Condominium Property Act or the Common Interest Community
9Association Act, and (iv) are registered in this State as
10not-for-profit corporations shall pay to the Department an
11annual fee of $50 plus an additional $1 per unit, but shall not
12exceed an annual fee of $1,000 for any community association.
13The Department may establish forms and promulgate any rules for
14the effective collection of such fees under this subsection
15(c).
16    Any not-for-profit corporation in this State that fails to
17pay in full to the Department all fees owed under this
18subsection (c) shall be subject to the penalties and procedures
19provided for under Section 92 of this Act.
20    (c) (d) All fees, fines, penalties, or other monies
21received or collected pursuant to this Act shall be deposited
22in the Community Association Manager Licensing and
23Disciplinary Fund.
24(Source: P.A. 96-726, eff. 7-1-10; 97-1021, eff. 8-17-12.)
 
25    (225 ILCS 427/70)

 

 

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1    (Section scheduled to be repealed on January 1, 2020)
2    Sec. 70. Penalty for insufficient funds; payments. Any
3person who delivers a check or other payment to the Department
4that is returned to the Department unpaid by the financial
5institution upon which it is drawn shall pay to the Department,
6in addition to the amount already owed to the Department, a
7fine of $50. The Department shall notify the person that
8payment of fees and fines shall be paid to the Department by
9certified check or money order within 30 calendar days after
10notification. If, after the expiration of 30 days from the date
11of the notification, the person has failed to submit the
12necessary remittance, the Department shall automatically
13terminate the license or deny the application, without hearing.
14If, after termination or denial, the person seeks a license,
15he, or she, or it shall apply to the Department for restoration
16or issuance of the license and pay all fees and fines due to
17the Department. The Department may establish a fee for the
18processing of an application for restoration of a license to
19pay all expenses of processing this application. The Secretary
20may waive the fines due under this Section in individual cases
21where the Secretary finds that the fines would be unreasonable
22or unnecessarily burdensome.
23(Source: P.A. 96-726, eff. 7-1-10.)
 
24    (225 ILCS 427/75)
25    (Section scheduled to be repealed on January 1, 2020)

 

 

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1    Sec. 75. Endorsement. The Department may issue a license
2as a licensed community association manager or supervising
3community association manager license, without the required
4examination, to an applicant licensed under the laws of another
5state if the requirements for licensure in that state are, on
6the date of licensure, substantially equal to the requirements
7of this Act or to a person who, at the time of his or her
8application for licensure, possessed individual qualifications
9that were substantially equivalent to the requirements then in
10force in this State. An applicant under this Section shall pay
11all of the required fees.
12    Applicants have 3 years from the date of application to
13complete the application process. If the process has not been
14completed within the 3 years, the application shall be denied,
15the fee shall be forfeited, and the applicant must reapply and
16meet the requirements in effect at the time of reapplication.
17(Source: P.A. 96-726, eff. 7-1-10.)
 
18    (225 ILCS 427/85)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 85. Grounds for discipline; refusal, revocation, or
21suspension.
22    (a) The Department may refuse to issue or renew a license,
23or may revoke a license, or may suspend, place on probation,
24reprimand, suspend, or revoke any license fine, or take any
25other disciplinary or non-disciplinary action as the

 

 

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1Department may deem proper and impose a fine , including fines
2not to exceed $10,000 for each violation upon , with regard to
3any licensee or applicant under this Act or any person or
4entity who holds himself, herself, or itself out as an
5applicant or licensee for any one or combination of the
6following causes:
7        (1) Material misstatement in furnishing information to
8    the Department.
9        (2) Violations of this Act or its rules.
10        (3) Conviction of or entry of a plea of guilty or plea
11    of nolo contendere to any crime that is a felony or a
12    misdemeanor under the laws of the United States, or any
13    state, or any other jurisdiction territory thereof or entry
14    of an administrative sanction by a government agency in
15    this State or any other jurisdiction. Action taken under
16    this paragraph (3) for a misdemeanor or an administrative
17    sanction is limited to a misdemeanor or administrative
18    sanction that has as of which an essential element is
19    dishonesty or fraud, that involves larceny, embezzlement,
20    or obtaining money, property, or credit by false pretenses
21    or by means of a confidence game, or that is directly
22    related to the practice of the profession.
23        (4) Making any misrepresentation for the purpose of
24    obtaining a license or violating any provision of this Act
25    or its rules.
26        (5) Professional incompetence.

 

 

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1        (6) Gross negligence.
2        (7) Aiding or assisting another person in violating any
3    provision of this Act or its rules.
4        (8) Failing, within 30 days, to provide information in
5    response to a request made by the Department.
6        (9) Engaging in dishonorable, unethical, or
7    unprofessional conduct of a character likely to deceive,
8    defraud or harm the public as defined by the rules of the
9    Department, or violating the rules of professional conduct
10    adopted by the Department.
11        (10) Habitual or excessive use or addiction to alcohol,
12    narcotics, stimulants, or any other chemical agent or drug
13    that results in the inability to practice with reasonable
14    judgment, skill, or safety.
15        (11) Having been disciplined by another state, the
16    District of Columbia, a territory, a foreign nation, or a
17    governmental agency authorized to impose discipline
18    Discipline by another state, territory, or country if at
19    least one of the grounds for the discipline is the same or
20    substantially equivalent of one of the grounds for which a
21    licensee may be disciplined under this Act. A certified
22    copy of the record of the action by the other state or
23    jurisdiction shall be prima facie evidence thereof to those
24    set forth in this Act.
25        (12) Directly or indirectly giving to or receiving from
26    any person, firm, corporation, partnership or association

 

 

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1    any fee, commission, rebate, or other form of compensation
2    for any professional services not actually or personally
3    rendered.
4        (13) A finding by the Department that the licensee,
5    after having his, or her, or its license placed on
6    probationary status, has violated the terms of probation.
7        (14) Willfully making or filing false records or
8    reports relating to a licensee's practice, including but
9    not limited to false records filed with any State or
10    federal agencies or departments.
11        (15) Being named as a perpetrator in an indicated
12    report by the Department of Children and Family Services
13    under the Abused and Neglected Child Reporting Act and upon
14    proof by clear and convincing evidence that the licensee
15    has caused a child to be an abused child or neglected child
16    as defined in the Abused and Neglected Child Reporting Act.
17        (16) Physical illness or mental illness or impairment,
18    including, but not limited to, deterioration through the
19    aging process or loss of motor skill that results in the
20    inability to practice the profession with reasonable
21    judgment, skill, or safety.
22        (17) Solicitation of professional services by using
23    false or misleading advertising.
24        (18) A finding that licensure has been applied for or
25    obtained by fraudulent means.
26        (19) Practicing or attempting to practice under a name

 

 

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1    other than the full name as shown on the license or any
2    other legally authorized name.
3        (20) Gross overcharging for professional services
4    including, but not limited to, (i) collection of fees or
5    moneys for services that are not rendered; and (ii)
6    charging for services that are not in accordance with the
7    contract between the licensee and the community
8    association.
9        (21) Improper commingling of personal and client funds
10    in violation of this Act or any rules promulgated thereto.
11        (22) Failing to account for or remit any moneys or
12    documents coming into the licensee's possession that
13    belong to another person or entity.
14        (23) Giving differential treatment to a person that is
15    to that person's detriment because of race, color, creed,
16    sex, religion, or national origin.
17        (24) Performing and charging for services without
18    reasonable authorization to do so from the person or entity
19    for whom service is being provided.
20        (25) Failing to make available to the Department, upon
21    request, any books, records, or forms required by this Act.
22        (26) Purporting to be a supervising community
23    association manager licensee-in-charge of a firm an agency
24    without active participation in the firm agency.
25        (27) Failing to make available to the Department at the
26    time of the request any indicia of licensure or

 

 

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1    registration issued under this Act.
2        (28) Failing to maintain and deposit funds belonging to
3    a community association in accordance with subsection (b)
4    of Section 55 of this Act.
5        (29) Violating the terms of a disciplinary order issued
6    by the Department.
7    (b) In accordance with subdivision (a)(5) of Section 15 of
8the Department of Professional Regulation Law of the Civil
9Administrative Code of Illinois (20 ILCS 2105/2105-15), the
10Department shall deny a license or renewal authorized by this
11Act to a person who has defaulted on an educational loan or
12scholarship provided or guaranteed by the Illinois Student
13Assistance Commission or any governmental agency of this State.
14    (c) The determination by a circuit court that a licensee is
15subject to involuntary admission or judicial admission, as
16provided in the Mental Health and Developmental Disabilities
17Code, operates as an automatic suspension. The suspension will
18terminate only upon a finding by a court that the patient is no
19longer subject to involuntary admission or judicial admission
20and the issuance of an order so finding and discharging the
21patient, and upon the recommendation of the Board to the
22Secretary that the licensee be allowed to resume his or her
23practice as a licensed community association manager.
24    (d) In accordance with subsection (g) of Section 15 of the
25Department of Professional Regulation Law of the Civil
26Administrative Code of Illinois (20 ILCS 2105/2105-15), the

 

 

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1Department may refuse to issue or renew or may suspend the
2license of any person who fails to file a return, to pay the
3tax, penalty, or interest shown in a filed return, or to pay
4any final assessment of tax, penalty, or interest, as required
5by any tax Act administered by the Department of Revenue, until
6such time as the requirements of that tax Act are satisfied.
7    (e) In accordance with subdivision (a)(5) of Section 15 of
8the Department of Professional Regulation Law of the Civil
9Administrative Code of Illinois (20 ILCS 2105/2105-15) and in
10cases where the Department of Healthcare and Family Services
11(formerly Department of Public Aid) has previously determined
12that a licensee or a potential licensee is more than 30 days
13delinquent in the payment of child support and has subsequently
14certified the delinquency to the Department may refuse to issue
15or renew or may revoke or suspend that person's license or may
16take other disciplinary action against that person based solely
17upon the certification of delinquency made by the Department of
18Healthcare and Family Services.
19    (f) In enforcing this Section, the Department or Board upon
20a showing of a possible violation may compel a licensee or an
21individual licensed to practice under this Act, or who has
22applied for licensure under this Act, to submit to a mental or
23physical examination, or both, as required by and at the
24expense of the Department. The Department or Board may order
25the examining physician to present testimony concerning the
26mental or physical examination of the licensee or applicant. No

 

 

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1information shall be excluded by reason of any common law or
2statutory privilege relating to communications between the
3licensee or applicant and the examining physician. The
4examining physicians shall be specifically designated by the
5Board or Department. The individual to be examined may have, at
6his or her own expense, another physician of his or her choice
7present during all aspects of this examination. Failure of an
8individual to submit to a mental or physical examination, when
9directed, shall be grounds for suspension of his or her license
10or denial of his or her application or renewal until the
11individual submits to the examination if the Department finds,
12after notice and hearing, that the refusal to submit to the
13examination was without reasonable cause.
14    If the Department or Board finds an individual unable to
15practice because of the reasons set forth in this Section, the
16Department or Board may require that individual to submit to
17care, counseling, or treatment by physicians approved or
18designated by the Department or Board, as a condition, term, or
19restriction for continued, reinstated, or renewed licensure to
20practice; or, in lieu of care, counseling, or treatment, the
21Department may file, or the Board may recommend to the
22Department to file, a complaint to immediately suspend, revoke,
23deny, or otherwise discipline the license of the individual. An
24individual whose license was granted, continued, reinstated,
25renewed, disciplined or supervised subject to such terms,
26conditions, or restrictions, and who fails to comply with such

 

 

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1terms, conditions, or restrictions, shall be referred to the
2Secretary for a determination as to whether the individual
3shall have his or her license suspended immediately, pending a
4hearing by the Department.
5    In instances in which the Secretary immediately suspends a
6person's license under this Section, a hearing on that person's
7license must be convened by the Department within 30 days after
8the suspension and completed without appreciable delay. The
9Department and Board shall have the authority to review the
10subject individual's record of treatment and counseling
11regarding the impairment to the extent permitted by applicable
12federal statutes and regulations safeguarding the
13confidentiality of medical records.
14    An individual licensed under this Act and affected under
15this Section shall be afforded an opportunity to demonstrate to
16the Department or Board that he or she can resume practice in
17compliance with acceptable and prevailing standards under the
18provisions of his or her license.
19(Source: P.A. 96-726, eff. 7-1-10; 97-333, eff. 8-12-11.)
 
20    (225 ILCS 427/87)
21    (Section scheduled to be repealed on January 1, 2020)
22    Sec. 87. Suspension of license for failure to pay
23restitution. The Department, without further process or
24hearing, shall suspend the license or other authorization to
25practice of any person issued under this Act who has been

 

 

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1certified by court order as not having paid restitution to a
2person under Section 8A-3.5 of the Illinois Public Aid Code or
3under Section 17-10.5 or 46-1 of the Criminal Code of 1961 or
4the Criminal Code of 2012. A person whose license or other
5authorization to practice is suspended under this Section is
6prohibited from engaging in the practice of community
7association management practicing until the restitution is
8made in full.
9(Source: P.A. 96-726, eff. 7-1-10; 97-1150, eff. 1-25-13.)
 
10    (225 ILCS 427/92)
11    (Section scheduled to be repealed on January 1, 2020)
12    Sec. 92. Unlicensed practice; violation; civil penalty.
13    (a) Any person, entity or other business who practices,
14offers to practice, attempts to practice, or holds himself,
15herself or itself out to practice as a community association
16manager or community association management firm management
17service or provide services as a community association manager
18or community association management firm to any community
19association in this State without being licensed under this Act
20shall, in addition to any other penalty provided by law, pay a
21civil penalty to the Department in an amount not to exceed
22$10,000 for each offense, as determined by the Department. The
23civil penalty shall be assessed by the Department after a
24hearing is held in accordance with the provisions set forth in
25this Act regarding the provision of a hearing for the

 

 

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1discipline of a licensee.
2    (b) The Department may investigate any and all unlicensed
3activity.
4    (c) The civil penalty shall be paid within 60 days after
5the effective date of the order imposing the civil penalty. The
6order shall constitute a judgment and may be filed and
7execution had thereon in the same manner as any judgment from
8any court of record.
9(Source: P.A. 96-726, eff. 7-1-10.)
 
10    (225 ILCS 427/135)
11    (Section scheduled to be repealed on January 1, 2020)
12    Sec. 135. License surrender. Upon the revocation or
13suspension of any license authorized under this Act, the
14licensee shall immediately surrender the license or licenses to
15the Department. If the licensee fails to do so, the Department
16has the right to seize the license or licenses.
17(Source: P.A. 96-726, eff. 7-1-10.)
 
18    (225 ILCS 427/155)
19    (Section scheduled to be repealed on January 1, 2020)
20    Sec. 155. Violations; penalties.
21    (a) A person who violates any of the following provisions
22shall be guilty of a Class A misdemeanor; a person who commits
23a second or subsequent violation of these provisions is guilty
24of a Class 4 felony:

 

 

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1        (1) The practice of or attempted practice of or holding
2    out as available to practice as a community association
3    manager, or supervising community association manager
4    without a license.
5        (2) Operation of or attempt to operate a community
6    association management firm Community Association
7    Management Agency without a firm an agency license or a
8    designated supervising community association manager.
9        (3) The obtaining of or the attempt to obtain any
10    license or authorization issued under this Act by
11    fraudulent misrepresentation.
12    (b) Whenever a licensee is convicted of a felony related to
13the violations set forth in this Section, the clerk of the
14court in any jurisdiction shall promptly report the conviction
15to the Department and the Department shall immediately revoke
16any license authorized under this Act as a community
17association manager held by that licensee. The licensee
18individual shall not be eligible for licensure under this Act
19until at least 10 years have elapsed since the time of full
20discharge from any sentence imposed for a felony conviction. If
21any person in making any oath or affidavit required by this Act
22swears falsely, the person is guilty of perjury and may be
23punished accordingly.
24(Source: P.A. 96-726, eff. 7-1-10.)
 
25    (225 ILCS 427/165)

 

 

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1    (Section scheduled to be repealed on January 1, 2020)
2    Sec. 165. Home rule. The regulation and licensing of
3community association managers, supervising community
4association managers, and community association management
5firms Community Association Management Agencies are exclusive
6powers and functions of the State. A home rule unit may not
7regulate or license community association managers,
8supervising community association managers, or community
9association management firms and Community Association
10Management Agencies. This Section is a denial and limitation of
11home rule powers and functions under subsection (h) of Section
126 of Article VII of the Illinois Constitution.
13(Source: P.A. 96-726, eff. 7-1-10.)
 
14    Section 99. Effective date. This Act takes effect July 1,
152013.