Full Text of HB1071 95th General Assembly
HB1071ham002 95TH GENERAL ASSEMBLY
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Rep. Elaine Nekritz
Filed: 4/24/2007
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LRB095 07052 AJO 35320 a |
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| AMENDMENT TO HOUSE BILL 1071
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| AMENDMENT NO. ______. Amend House Bill 1071, AS AMENDED, by | 3 |
| replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. The Condominium Property Act is amended by | 6 |
| adding Section 18.7 as follows: | 7 |
| (765 ILCS 605/18.7 new) | 8 |
| Sec. 18.7. Standards for community association managers. | 9 |
| (a) "Community association" means an association in which | 10 |
| membership is a condition of ownership or shareholder interest | 11 |
| of a unit in a condominium, cooperative, townhouse, villa, or | 12 |
| other residential unit that is part of a residential | 13 |
| development plan as a master association or common interest | 14 |
| community and that is authorized to impose an assessment and | 15 |
| other costs that may become a lien on the unit or lot. | 16 |
| (b) "Community association manager" means an individual |
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| who administers for compensation the coordination of | 2 |
| financial, administrative, maintenance, or other duties called | 3 |
| for in the management contract, including individuals who are | 4 |
| direct employees of a community association. A manager does not | 5 |
| include support staff, such as bookkeepers, administrative | 6 |
| assistants, secretaries, property inspectors, or customer | 7 |
| service representatives. | 8 |
| (c) Requirements. To perform services as a community | 9 |
| association manager, an individual must meet these | 10 |
| requirements: | 11 |
| (1) shall have attained the age of 21 and be a citizen | 12 |
| or legal permanent resident of the United States; | 13 |
| (2) shall not have been convicted of forgery, | 14 |
| embezzlement, obtaining money under false pretenses, | 15 |
| larceny, extortion, conspiracy to defraud or other similar | 16 |
| offense or offenses; | 17 |
| (3) shall have a working knowledge of the fundamentals | 18 |
| of community association management, including the | 19 |
| Condominium Property Act, the Illinois Not-for-Profit | 20 |
| Corporation Act, and any other laws pertaining to community | 21 |
| association management; and | 22 |
| (4) shall not have engaged in the following activities: | 23 |
| failure to cooperate with any law enforcement agency in the | 24 |
| investigation of a complaint; or failure to produce any | 25 |
| document, book, or record in the possession or control of | 26 |
| the community association manager after a request for |
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| production of that document, book, or record in the course | 2 |
| of an investigation of a complaint. | 3 |
| (d) Access to community association funds. For community | 4 |
| associations of 6 or more units, apartments, townhomes, villas | 5 |
| or other residential units, a community association manager or | 6 |
| the firm with whom the manager is employed shall not solely and | 7 |
| exclusively have access to and disburse funds of a community | 8 |
| association unless: | 9 |
| (1) There is a fidelity bond in place. | 10 |
| (2) The fidelity bond is in an amount not less than all | 11 |
| monies of that association in the custody or control of the | 12 |
| community association manager. | 13 |
| (3) The fidelity bond covers the community association | 14 |
| manager and all partners, officers, and employees of the | 15 |
| firm with whom the community association manager is | 16 |
| employed during the term of the bond, as well as the | 17 |
| community association officers, directors, and employees | 18 |
| of the community association who control or disburse funds. | 19 |
| (4) The insurance company issuing the bond may not | 20 |
| cancel or refuse to renew the bond without giving not less | 21 |
| than 10 days' prior written notice to the community | 22 |
| association. | 23 |
| (5) The community association shall secure and pay for | 24 |
| the bond. | 25 |
| (e) A community association manager who provides community | 26 |
| association management services for more than one community |
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| association shall maintain separate, segregated accounts for | 2 |
| each community association. The funds shall not, in any event, | 3 |
| be commingled with funds of the community association manager, | 4 |
| the firm of the community association manager, or any other | 5 |
| community association. The maintenance of these accounts shall | 6 |
| be custodial, and the accounts shall be in the name of the | 7 |
| respective community association. | 8 |
| (f) Exempt persons. Except as otherwise provided, this | 9 |
| Section does not apply to any person acting as a receiver, | 10 |
| trustee in bankruptcy, administrator, executor, or guardian | 11 |
| acting under a court order or under the authority of a will or | 12 |
| of a trust instrument. | 13 |
| (g) Right of Action. | 14 |
| (1) Nothing in this amendatory Act of the 95th General | 15 |
| Assembly shall create a cause of action by a unit owner, | 16 |
| shareholder, or community association member against a | 17 |
| community association manager or the firm of a community | 18 |
| association manager. | 19 |
| (2) This amendatory Act of the 95th General Assembly | 20 |
| shall not impair any right of action by a unit owner or | 21 |
| shareholder against a community association board of | 22 |
| directors under existing law. ".
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