093_SB0641sam002 LRB093 06336 RLC 12832 a 1 AMENDMENT TO SENATE BILL 641 2 AMENDMENT NO. . Amend Senate Bill 641 by replacing 3 everything after the enacting clause with the following: 4 "Section 5. The Sex Offender and Child Murderer 5 Community Notification Law is amended by adding Section 116 6 as follows: 7 (730 ILCS 152/116 new) 8 Sec. 116. Informational notice in residential 9 agreements. Every written residential lease agreement (other 10 than for a single-family dwelling) and every agreement for 11 the purchase of a condominium unit or housing cooperative 12 unit must contain a notice stating how a renter or unit owner 13 can obtain information about persons who are registered as 14 sex offenders under the Sex Offender Registration Act. The 15 notice must include information describing how to access 16 information maintained by local law enforcement agencies or 17 in the Statewide Sex Offender Database that is posted on the 18 Department of State Police Web site. 19 Section 10. The Condominium Property Act is amended by 20 changing Section 18 as follows: -2- LRB093 06336 RLC 12832 a 1 (765 ILCS 605/18) (from Ch. 30, par. 318) 2 Sec. 18. Contents of bylaws. The bylaws shall provide 3 for at least the following: 4 (a) (1) The election from among the unit owners of a 5 board of managers, the number of persons constituting 6 such board, and that the terms of at least one-third of 7 the members of the board shall expire annually and that 8 all members of the board shall be elected at large. If 9 there are multiple owners of a single unit, only one of 10 the multiple owners shall be eligible to serve as a 11 member of the board at any one time. 12 (2) the powers and duties of the board; 13 (3) the compensation, if any, of the members of the 14 board; 15 (4) the method of removal from office of members of 16 the board; 17 (5) that the board may engage the services of a 18 manager or managing agent; 19 (6) that each unit owner shall receive, at least 30 20 days prior to the adoption thereof by the board of 21 managers, a copy of the proposed annual budget together 22 with an indication of which portions are intended for 23 reserves, capital expenditures or repairs or payment of 24 real estate taxes; 25 (7) that the board of managers shall annually 26 supply to all unit owners an itemized accounting of the 27 common expenses for the preceding year actually incurred 28 or paid, together with an indication of which portions 29 were for reserves, capital expenditures or repairs or 30 payment of real estate taxes and with a tabulation of the 31 amounts collected pursuant to the budget or assessment, 32 and showing the net excess or deficit of income over 33 expenditures plus reserves; 34 (8) (i) that each unit owner shall receive notice, -3- LRB093 06336 RLC 12832 a 1 in the same manner as is provided in this Act for 2 membership meetings, of any meeting of the board of 3 managers concerning the adoption of the proposed annual 4 budget and regular assessments pursuant thereto or to 5 adopt a separate (special) assessment, (ii) that except 6 as provided in subsection (iv) below, if an adopted 7 budget or any separate assessment adopted by the board 8 would result in the sum of all regular and separate 9 assessments payable in the current fiscal year exceeding 10 115% of the sum of all regular and separate assessments 11 payable during the preceding fiscal year, the board of 12 managers, upon written petition by unit owners with 20 13 percent of the votes of the association delivered to the 14 board within 14 days of the board action, shall call a 15 meeting of the unit owners within 30 days of the date of 16 delivery of the petition to consider the budget or 17 separate assessment; unless a majority of the total votes 18 of the unit owners are cast at the meeting to reject the 19 budget or separate assessment, it is ratified, (iii) that 20 any common expense not set forth in the budget or any 21 increase in assessments over the amount adopted in the 22 budget shall be separately assessed against all unit 23 owners, (iv) that separate assessments for expenditures 24 relating to emergencies or mandated by law may be adopted 25 by the board of managers without being subject to unit 26 owner approval or the provisions of item (ii) above or 27 item (v) below. As used herein, "emergency" means an 28 immediate danger to the structural integrity of the 29 common elements or to the life, health, safety or 30 property of the unit owners, (v) that assessments for 31 additions and alterations to the common elements or to 32 association-owned property not included in the adopted 33 annual budget, shall be separately assessed and are 34 subject to approval of two-thirds of the total votes of -4- LRB093 06336 RLC 12832 a 1 all unit owners, (vi) that the board of managers may 2 adopt separate assessments payable over more than one 3 fiscal year. With respect to multi-year assessments not 4 governed by items (iv) and (v), the entire amount of the 5 multi-year assessment shall be deemed considered and 6 authorized in the first fiscal year in which the 7 assessment is approved; 8 (9) that meetings of the board of managers shall be 9 open to any unit owner, except for the portion of any 10 meeting held (i) to discuss litigation when an action 11 against or on behalf of the particular association has 12 been filed and is pending in a court or administrative 13 tribunal, or when the board of managers finds that such 14 an action is probable or imminent, (ii) to consider 15 information regarding appointment, employment or 16 dismissal of an employee, or (iii) to discuss violations 17 of rules and regulations of the association or a unit 18 owner's unpaid share of common expenses; that any vote on 19 these matters shall be taken at a meeting or portion 20 thereof open to any unit owner; that any unit owner may 21 record the proceedings at meetings or portions thereof 22 required to be open by this Act by tape, film or other 23 means; that the board may prescribe reasonable rules and 24 regulations to govern the right to make such recordings, 25 that notice of such meetings shall be mailed or delivered 26 at least 48 hours prior thereto, unless a written waiver 27 of such notice is signed by the person or persons 28 entitled to such notice pursuant to the declaration, 29 bylaws, other condominium instrument, or provision of law 30 other than this subsection before the meeting is 31 convened, and that copies of notices of meetings of the 32 board of managers shall be posted in entranceways, 33 elevators, or other conspicuous places in the condominium 34 at least 48 hours prior to the meeting of the board of -5- LRB093 06336 RLC 12832 a 1 managers except where there is no common entranceway for 2 7 or more units, the board of managers may designate one 3 or more locations in the proximity of these units where 4 the notices of meetings shall be posted; 5 (10) that the board shall meet at least 4 times 6 annually; 7 (11) that no member of the board or officer shall 8 be elected for a term of more than 2 years, but that 9 officers and board members may succeed themselves; 10 (12) the designation of an officer to mail and 11 receive all notices and execute amendments to condominium 12 instruments as provided for in this Act and in the 13 condominium instruments; 14 (13) the method of filling vacancies on the board 15 which shall include authority for the remaining members 16 of the board to fill the vacancy by two-thirds vote until 17 the next annual meeting of unit owners or for a period 18 terminating no later than 30 days following the filing of 19 a petition signed by unit owners holding 20% of the votes 20 of the association requesting a meeting of the unit 21 owners to fill the vacancy for the balance of the term, 22 and that a meeting of the unit owners shall be called for 23 purposes of filling a vacancy on the board no later than 24 30 days following the filing of a petition signed by unit 25 owners holding 20% of the votes of the association 26 requesting such a meeting, and the method of filling 27 vacancies among the officers that shall include the 28 authority for the members of the board to fill the 29 vacancy for the unexpired portion of the term; 30 (14) what percentage of the board of managers, if 31 other than a majority, shall constitute a quorum; 32 (15) provisions concerning notice of board meetings 33 to members of the board; 34 (16) the board of managers may not enter into a -6- LRB093 06336 RLC 12832 a 1 contract with a current board member or with a 2 corporation or partnership in which a board member or a 3 member of the board member's immediate family has 25% or 4 more interest, unless notice of intent to enter the 5 contract is given to unit owners within 20 days after a 6 decision is made to enter into the contract and the unit 7 owners are afforded an opportunity by filing a petition, 8 signed by 20% of the unit owners, for an election to 9 approve or disapprove the contract; such petition shall 10 be filed within 20 days after such notice and such 11 election shall be held within 30 days after filing the 12 petition; for purposes of this subsection, a board 13 member's immediate family means the board member's 14 spouse, parents, and children; 15 (17) that the board of managers may disseminate to 16 unit owners biographical and background information about 17 candidates for election to the board if (i) reasonable 18 efforts to identify all candidates are made and all 19 candidates are given an opportunity to include 20 biographical and background information in the 21 information to be disseminated; and (ii) the board does 22 not express a preference in favor of any candidate; 23 (18) any proxy distributed for board elections by 24 the board of managers gives unit owners the opportunity 25 to designate any person as the proxy holder, and gives 26 the unit owner the opportunity to express a preference 27 for any of the known candidates for the board or to write 28 in a name; 29 (19) that special meetings of the board of managers 30 can be called by the president or 25% of the members of 31 the board; and 32 (20) that the board of managers may establish and 33 maintain a system of master metering of public utility 34 services and collect payments in connection therewith, -7- LRB093 06336 RLC 12832 a 1 subject to the requirements of the Tenant Utility Payment 2 Disclosure Act. 3 (b) (1) What percentage of the unit owners, if other 4 than 20%, shall constitute a quorum provided that, for 5 condominiums with 20 or more units, the percentage of 6 unit owners constituting a quorum shall be 20% unless the 7 unit owners holding a majority of the percentage interest 8 in the association provide for a higher percentage; 9 (2) that the association shall have one class of 10 membership; 11 (3) that the members shall hold an annual meeting, 12 one of the purposes of which shall be to elect members of 13 the board of managers; 14 (4) the method of calling meetings of the unit 15 owners; 16 (5) that special meetings of the members can be 17 called by the president, board of managers, or by 20% of 18 unit owners; 19 (6) that written notice of any membership meeting 20 shall be mailed or delivered giving members no less than 21 10 and no more than 30 days notice of the time, place and 22 purpose of such meeting; 23 (7) that voting shall be on a percentage basis, and 24 that the percentage vote to which each unit is entitled 25 is the percentage interest of the undivided ownership of 26 the common elements appurtenant thereto, provided that 27 the bylaws may provide for approval by unit owners in 28 connection with matters where the requisite approval on a 29 percentage basis is not specified in this Act, on the 30 basis of one vote per unit; 31 (8) that, where there is more than one owner of a 32 unit, if only one of the multiple owners is present at a 33 meeting of the association, he is entitled to cast all 34 the votes allocated to that unit, if more than one of the -8- LRB093 06336 RLC 12832 a 1 multiple owners are present, the votes allocated to that 2 unit may be cast only in accordance with the agreement of 3 a majority in interest of the multiple owners, unless the 4 declaration expressly provides otherwise, that there is 5 majority agreement if any one of the multiple owners cast 6 the votes allocated to that unit without protest being 7 made promptly to the person presiding over the meeting by 8 any of the other owners of the unit; 9 (9) that unless the Articles of Incorporation or 10 the bylaws otherwise provide, a unit owner may vote by 11 proxy executed in writing by the unit owner or by his 12 duly authorized attorney in fact; that the proxy shall be 13 invalid after 11 months from the date of its execution, 14 unless otherwise provided in the proxy, and that every 15 proxy must bear the date of execution; 16 (10) that the association may, upon adoption of the 17 appropriate rules by the board of managers, conduct 18 elections by secret ballot whereby the voting ballot is 19 marked only with the percentage interest for the unit and 20 the vote itself, provided that the board further adopt 21 rules to verify the status of the unit owner issuing a 22 proxy or casting a ballot; and further, that a candidate 23 for election to the board of managers or such candidate's 24 representative shall have the right to be present at the 25 counting of ballots at such election; 26 (11) that in the event of a resale of a condominium 27 unit the purchaser of a unit from a seller other than the 28 developer pursuant to an installment contract for 29 purchase shall during such times as he or she resides in 30 the unit be counted toward a quorum for purposes of 31 election of members of the board of managers at any 32 meeting of the unit owners called for purposes of 33 electing members of the board, shall have the right to 34 vote for the election of members of the board of managers -9- LRB093 06336 RLC 12832 a 1 and to be elected to and serve on the board of managers 2 unless the seller expressly retains in writing any or all 3 of such rights. In no event may the seller and purchaser 4 both be counted toward a quorum, be permitted to vote for 5 a particular office or be elected and serve on the board. 6 Satisfactory evidence of the installment contact shall be 7 made available to the association or its agents. For 8 purposes of this subsection, "installment contact" shall 9 have the same meaning as set forth in Section 1 (e) of 10 "An Act relating to installment contracts to sell 11 dwelling structures", approved August 11, 1967, as 12 amended; 13 (12) the method by which matters subject to the 14 approval of unit owners set forth in this Act, or in the 15 condominium instruments, will be submitted to the unit 16 owners at special membership meetings called for such 17 purposes; and 18 (13) that matters subject to the affirmative vote 19 of not less than 2/3 of the votes of unit owners at a 20 meeting duly called for that purpose, shall include, but 21 not be limited to: 22 (i) merger or consolidation of the 23 association; 24 (ii) sale, lease, exchange, or other 25 disposition (excluding the mortgage or pledge) of 26 all, or substantially all of the property and assets 27 of the association; and 28 (iii) the purchase or sale of land or of units 29 on behalf of all unit owners. 30 (c) Election of a president from among the board of 31 managers, who shall preside over the meetings of the board of 32 managers and of the unit owners. 33 (d) Election of a secretary from among the board of 34 managers, who shall keep the minutes of all meetings of the -10- LRB093 06336 RLC 12832 a 1 board of managers and of the unit owners and who shall, in 2 general, perform all the duties incident to the office of 3 secretary. 4 (e) Election of a treasurer from among the board of 5 managers, who shall keep the financial records and books of 6 account. 7 (f) Maintenance, repair and replacement of the common 8 elements and payments therefor, including the method of 9 approving payment vouchers. 10 (g) An association with 30 or more units shall obtain 11 and maintain fidelity insurance covering persons who control 12 or disburse funds of the association for the maximum amount 13 of coverage available to protect funds in the custody or 14 control of the association plus the association reserve fund. 15 All management companies which are responsible for the funds 16 held or administered by the association shall maintain and 17 furnish to the association a fidelity bond for the maximum 18 amount of coverage available to protect funds in the custody 19 of the management company at any time. The association shall 20 bear the cost of the fidelity insurance and fidelity bond, 21 unless otherwise provided by contract between the association 22 and a management company. The association shall be the 23 direct obligee of any such fidelity bond. A management 24 company holding reserve funds of an association shall at all 25 times maintain a separate account for each association, 26 provided, however, that for investment purposes, the Board of 27 Managers of an association may authorize a management company 28 to maintain the association's reserve funds in a single 29 interest bearing account with similar funds of other 30 associations. The management company shall at all times 31 maintain records identifying all moneys of each association 32 in such investment account. The management company may hold 33 all operating funds of associations which it manages in a 34 single operating account but shall at all times maintain -11- LRB093 06336 RLC 12832 a 1 records identifying all moneys of each association in such 2 operating account. Such operating and reserve funds held by 3 the management company for the association shall not be 4 subject to attachment by any creditor of the management 5 company. 6 For the purpose of this subsection a management company 7 shall be defined as a person, partnership, corporation, or 8 other legal entity entitled to transact business on behalf of 9 others, acting on behalf of or as an agent for a unit owner, 10 unit owners or association of unit owners for the purpose of 11 carrying out the duties, responsibilities, and other 12 obligations necessary for the day to day operation and 13 management of any property subject to this Act. For purposes 14 of this subsection, the term "fiduciary insurance coverage" 15 shall be defined as both a fidelity bond and directors and 16 officers liability coverage, the fidelity bond in the full 17 amount of association funds and association reserves that 18 will be in the custody of the association, and the directors 19 and officers liability coverage at a level as shall be 20 determined to be reasonable by the board of managers, if not 21 otherwise established by the declaration or by laws. 22 Until one year after the effective date of this 23 amendatory Act of 1985, if a condominium association has 24 reserves plus assessments in excess of $250,000 and cannot 25 reasonably obtain 100% fidelity bond coverage for such 26 amount, then it must obtain a fidelity bond coverage of 27 $250,000. 28 (h) Method of estimating the amount of the annual 29 budget, and the manner of assessing and collecting from the 30 unit owners their respective shares of such estimated 31 expenses, and of any other expenses lawfully agreed upon. 32 (i) That upon 10 days notice to the manager or board of 33 managers and payment of a reasonable fee, any unit owner 34 shall be furnished a statement of his account setting forth -12- LRB093 06336 RLC 12832 a 1 the amount of any unpaid assessments or other charges due and 2 owing from such owner. 3 (j) Designation and removal of personnel necessary for 4 the maintenance, repair and replacement of the common 5 elements. 6 (k) Such restrictions on and requirements respecting the 7 use and maintenance of the units and the use of the common 8 elements, not set forth in the declaration, as are designed 9 to prevent unreasonable interference with the use of their 10 respective units and of the common elements by the several 11 unit owners. 12 (l) Method of adopting and of amending administrative 13 rules and regulations governing the operation and use of the 14 common elements. 15 (m) The percentage of votes required to modify or amend 16 the bylaws, but each one of the particulars set forth in this 17 section shall always be embodied in the bylaws. 18 (n) (i) The provisions of this Act, the declaration, 19 bylaws, other condominium instruments, and rules and 20 regulations that relate to the use of the individual unit or 21 the common elements shall be applicable to any person leasing 22 a unit and shall be deemed to be incorporated in any lease 23 executed or renewed on or after the effective date of this 24 amendatory Act of 1984. (ii) With regard to any lease entered 25 into subsequent to the effective date of this amendatory Act 26 of 1989, the unit owner leasing the unit shall deliver a copy 27 of the signed lease to the board or if the lease is oral, a 28 memorandum of the lease, not later than the date of occupancy 29 or 10 days after the lease is signed, whichever occurs first. 30 In addition to any other remedies, by filing an action 31 jointly against the tenant and the unit owner, an association 32 may seek to enjoin a tenant from occupying a unit or seek to 33 evict a tenant under the provisions of Article IX of the Code 34 of Civil Procedure for failure of the lessor-owner to comply -13- LRB093 06336 RLC 12832 a 1 with the leasing requirements prescribed by this Section or 2 by the declaration, bylaws, and rules and regulations. The 3 board of managers may proceed directly against a tenant, at 4 law or in equity, or under the provisions of Article IX of 5 the Code of Civil Procedure, for any other breach by tenant 6 of any covenants, rules, regulations or bylaws. 7 (o) The association shall have no authority to forbear 8 the payment of assessments by any unit owner. 9 (p) That when 30% or fewer of the units, by number, 10 possess over 50% in the aggregate of the votes in the 11 association, any percentage vote of members specified herein 12 or in the condominium instruments shall require the specified 13 percentage by number of units rather than by percentage of 14 interest in the common elements allocated to units that would 15 otherwise be applicable. 16 (q) That a unit owner may not assign, delegate, 17 transfer, surrender, or avoid the duties, responsibilities, 18 and liabilities of a unit owner under this Act, the 19 condominium instruments, or the rules and regulations of the 20 Association; and that such an attempted assignment, 21 delegation, transfer, surrender, or avoidance shall be deemed 22 void. 23 (r) A notice stating how a unit owner can obtain 24 information about persons who are registered as sex offenders 25 under the Sex Offender Registration Act. The notice must 26 include information describing how to access information 27 maintained by local law enforcement agencies or in the 28 Statewide Sex Offender Database that is posted on the 29 Department of State Police Web site. 30 The provisions of this Section are applicable to all 31 condominium instruments recorded under this Act. Any portion 32 of a condominium instrument which contains provisions 33 contrary to these provisions shall be void as against public 34 policy and ineffective. Any such instrument which fails to -14- LRB093 06336 RLC 12832 a 1 contain the provisions required by this Section shall be 2 deemed to incorporate such provisions by operation of law. 3 (Source: P.A. 88-135; 88-417; 88-626, eff. 9-9-94; 88-670, 4 eff. 12-2-94; 89-41, eff. 6-23-95.)".