|Public Act 096-0726
||LRB096 10910 ASK 21156 b
AN ACT concerning professions and occupations.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
This Act may be cited as the
Community Association Manager Licensing and Disciplinary Act.
It is the intent of the
General Assembly that this Act provide for the regulation of
managers of community associations, ensure that those who hold
themselves out as possessing professional qualifications to
engage in the provision of community association management
services are, in fact, qualified to render management services
of a professional nature, and provide for the maintenance of
high standards of professional conduct by those licensed as
community association managers.
As used in this Act:
"Address of record" means the designated address recorded
by the Department in the applicant's or licensee's application
file or license file maintained by the Department's licensure
maintenance unit. It is the duty of the applicant or licensee
to inform the Department of any change of address, and such
changes must be made either through the Department's website or
by contacting the Department's licensure maintenance unit.
"Advertise" means, but is not limited to, issuing or
causing to be distributed any card, sign or device to any
person; or causing, permitting or allowing any sign or marking
on or in any building, structure, newspaper, magazine or
directory, or on radio or television; or advertising by any
other means designed to secure public attention.
"Board" means the Illinois Community Association Manager
Licensing and Disciplinary Board.
"Community association" means an association in which
membership is a condition of ownership or shareholder interest
of a unit in a condominium, cooperative, townhouse, villa, or
other residential unit which is part of a residential
development plan and that is authorized to impose an
assessment, rents, or other costs that may become a lien on the
unit or lot.
"Community Association Management Agency" means a company,
firm, corporation, limited liability company, or other entity
that engages in the community association management business
and employs, in addition to the licensee-in-charge, at least
one other person in conducting such business.
"Community association manager" means an individual who
administers for remuneration the financial, administrative,
maintenance, or other duties for the community association,
including the following services: (A) collecting, controlling
or disbursing funds of the community association or having the
authority to do so; (B) preparing budgets or other financial
documents for the community association; (C) assisting in the
conduct of community association meetings; (D) maintaining
association records; and (E) administrating association
contracts, as stated in the declaration, bylaws, proprietary
lease, declaration of covenants, or other governing document of
the community association. "Community association manager"
does not mean support staff, including, but not limited to
bookkeepers, administrative assistants, secretaries, property
inspectors, or customer service representatives.
"Department" means the Department of Financial and
"License" means the license issued to a person to act as a
community association manager under this Act or other authority
to practice issued under this Act.
"Person" means any individual, firm, corporation,
partnership, organization, or body politic.
"Licensee-in-charge" means a person licensed as a
community association manager who has been designated by a
Community Association Management Agency as the full-time
management employee or owner who assumes sole responsibility
for maintaining all records required by this Act and who
assumes sole responsibility for assuring the licensed agency's
compliance with its responsibilities as stated in the Act.
"Secretary" means the Secretary of Financial and
Beginning 12 months after
the adoption of rules providing for the licensure of a
community association manager in Illinois under this Act, it
shall be unlawful for any person, entity, or other business to
provide community association management services or provide
services as community association manager to any community
association in this State, unless he or she holds a current and
valid license issued licensed by the Department or is otherwise
exempt from licensure under this Act.
(a) This Act does not apply to any of the following:
(1) Any director, officer, or member of a community
association providing one or more of the services of a
community association manager without compensation for
such services to the association.
(2) Any person providing one or more of the services of
a community association manager to a community association
of 10 units or less.
(3) A licensed attorney acting solely as an incident to
the practice of law.
(4) A person acting as a receiver, trustee in
bankruptcy, administrator, executor, or guardian acting
under a court order or under the authority of a will or of
a trust instrument.
(5) A person licensed in this State under any other Act
from engaging the practice for which he or she is licensed.
(b) A licensed community association manager may not
perform or engage in any activities for which a real estate
broker or real estate salesperson's license is required under
the Real Estate License Act of 2000, unless he or she also
possesses a current license under the Real Estate License Act
of 2000 and is providing those services as provided for in the
Act and the applicable rules.
(c) A person may act as, or provide services as, a
community association manager without being licensed under
this Act if the person (i) is a community association manager
regulated under the laws of another state or territory of the
United States or another country and (ii) has applied in
writing to the Department, on forms prepared and furnished by
the Department, for licensure under this Act, but only until
the expiration of 6 months after the filing of his or her
written application to the Department, his or her withdrawal of
the application, he or she has received a notice of intent to
deny the application from the Department, or the denial of the
application by the Department.
Community Association Manager Licensing and
(a) There is hereby created the Community Association
Manager Board, which shall consist of 7 members appointed by
the Secretary. All members must be residents of the State and
must have resided in the State for at least 5 years immediately
preceding the date of appointment. Five members of the Board
must be licensees under this Act, except that, initially, these
members must meet the qualifications for licensure and have
obtained a license within 6 months after the effective date of
this Act. Two members of the Board shall be owners or
shareholders of a unit in a community association at the time
of appointment who are not licensees under this Act and have no
direct affiliation or work experience with the community
association manager. This Board shall act in an advisory
capacity to the Department.
(b) Board members shall serve for terms of 5 years, except
that, initially, 4 members shall serve for 5 years and 3
members shall serve for 4 years. All members shall serve until
his or her successor is appointed and qualified. All vacancies
shall be filled in like manner for the unexpired term. No
member shall serve for more than 2 successive terms. The
Secretary shall remove from the Board any member whose license
has become void or has been revoked or suspended and may remove
any member of the Board for neglect of duty, misconduct, or
incompetence. A member subject to formal disciplinary
proceedings shall disqualify himself or herself from all Board
business until the charge is resolved. A member also shall
disqualify himself or herself from any matter on which the
member cannot act objectively.
(c) Four Board members shall constitute a quorum. A quorum
is required for all Board decisions.
(d) The Board may elect a chairperson and vice chairperson.
(e) Each member shall receive reimbursement as set by the
Governor's Travel Control Board for expenses incurred in
carrying out the duties as a Board member. The Board shall be
compensated as determined by the Secretary.
(f) The Board may recommend policies, procedures, and rules
relevant to the administration and enforcement of this Act.
Immunity from Liability.
Any member of the
Board, any attorney providing
advice to the Board or
Department, any person acting as a consultant to the Board or
Department, and any witness testifying in a proceeding
authorized under this Act, excluding the party making the
complaint, shall be immune from liability in any civil action
brought against him or her for acts occurring while acting in
his or her capacity as a Board member, consultant, or witness,
respectively, unless the conduct that gave rise to the action
was willful or wanton misconduct.
Powers and duties of the Department.
Department may exercise the following functions, powers and
(a) formulate rules for the administration and enforcement
of this Act;
(b) prescribe forms to be issued for the administration and
enforcement of this Act;
(c) conduct hearings or proceedings to refuse to issue,
renew, suspend, revoke, place on probation, reprimand, or take
disciplinary or non-disciplinary action as the Department may
deem appropriate under this Act;
(d) maintain a roster of the names and addresses of all
licensees in a manner as deemed appropriate by the Department;
(e) seek the advice and expert knowledge of the Board on
any matter relating to the
administration and enforcement of
Social Security Number on license application.
In addition to any other information required to be contained
in the application, every application for an original, renewal,
or restored license under this Act shall include the
applicant's Social Security Number.
Functions and powers of the Board.
the provisions of this Act, the Board shall exercise, in an
advisory capacity, the following functions and powers:
(1) make recommendations regarding rules for the
administration and enforcement of this Act, including, but
not limited to, experience, education, licensure,
disciplinary standards and procedures, renewal and
(2) make recommendations regarding subjects, topics
and areas needed for the examination in order to fairly
ascertain the fitness and qualifications of applicants for
(3) make recommendations regarding discipline as
provided for in this Act.
Qualifications for licensure as a community
(a) No person shall be qualified for licensure under this
Act, unless he or she has applied in writing on the prescribed
forms and has paid the required, nonrefundable fees and meets
all of the following qualifications:
(1) He or she is at least 21 years of age.
(2) He or she provides satisfactory evidence of having
completed at least 20 classroom hours in community
association management courses approved by the Board.
(3) He or she has passed an examination authorized by
(4) He or she has not committed an act or acts, in this
or any other jurisdiction, that would be a violation of
(5) He or she is of good moral character. Good moral
character is a continuing requirement of licensure.
Conviction of crimes other than felonies may be used in
determining moral character, but shall not constitute an
absolute bar to licensure.
(6) He or she has not been declared by any court of
competent jurisdiction to be incompetent by reason of
mental or physical defect or disease, unless a court has
subsequently declared him or her to be competent.
(7) He or she complies with any additional
qualifications for licensure as determined by rule of the
(b) The education requirement set forth in item (2) of
subsection (a) of this Section shall not apply to persons
holding a real estate broker or real estate salesperson license
in good standing issued under the Real Estate License Act of
(c) The examination and initial education requirement of
items (2) and (3) of subsection (a) of this Section shall not
apply to any person who within 6 months from the effective date
of the requirement for licensure, as set forth in Section 170
of this Act, applies for a license by providing satisfactory
evidence to the Department of qualifying experience or
education, as may be set forth by rule, including without
limitation evidence that he or she has (i) practiced community
association management for a period of 5 years or (ii) achieved
a designation awarded by recognized community association
management organizations in the State.
(d) Applicants have 3 years from the date of application to
complete the application process. If the process has not been
completed within the 3 years, the application shall be denied,
the fee shall be forfeited, and the applicant must reapply and
meet the requirements in effect at the time of re-application.
(a) The Department shall authorize examinations of
applicants for licensure as a community association manager at
such times and places as it may determine. The examination of
applicants shall be of a character to give a fair test of the
qualifications of the applicant to practice as a community
(b) Applicants for examination shall be required to pay,
either to the Department or the designated testing service, a
fee covering the cost of providing the examination.
(c) The Department may employ consultants for the purpose
of preparing and conducting examinations.
(d) An applicant shall be eligible to take the examination
only after successfully completing the education requirements
set forth in this Act and attaining the minimum age required
under this Act.
(e) The examination approved by the Department should
utilize the basic principles of professional testing standards
utilizing psychometric measurement. The examination shall use
standards set forth by the National Organization for Competency
Assurances and shall be approved by the Department.
Community Association Management Agency.
(a) No firm, corporation, limited liability company, or
other legal entity shall provide or offer to provide community
association management services, unless such services are
(1) an employee or independent contractor who is
licensed under this Act;
(2) a natural person who is acting under the direct
supervision of an employee of such firm, corporation,
limited liability company, or other legal entity that is
licensed under this Act; or
(3) a natural person who is legally authorized to
provide such services.
(b) Any firm, corporation, limited liability company, or
other legal entity that is providing, or offering to provide,
community association management services and is not in
compliance with Section 50 and the provisions of this Act shall
be subject to the fines, injunctions, cease and desist
provisions, and penalties provided for in Sections 90, 92, and
155 of this Act.
(c) No community association manager may be the
licensee-in-charge for more than one firm, corporation,
limited liability company, or other legal entity.
Fidelity insurance; segregation of accounts.
(a) A community association manager or the Community
Association Management Agency with which he or she is employed
shall not have access to and disburse funds of a community
association unless each of the following conditions occur:
(1) There is fidelity insurance in place to insure
against loss for theft of community association funds.
(2) The fidelity insurance is not less than all moneys
under the control of the community association manager or
the employing Community Association Management Agency for
(3) The fidelity insurance covers the community
association manager and all partners, officers, and
employees of the Community Association Management Agency
with whom he or she is employed during the term of the
insurance coverage, as well as the association officers,
directors, and employees.
(4) The insurance company issuing the fidelity
insurance may not cancel or refuse to renew the bond
without giving at least 10 days' prior written notice.
(5) Unless an agreement between the community
association and the community association manager or the
Community Association Management Agency provides to the
contrary, the Association secures and pays for the fidelity
insurance. The community association manager and the
Community Association Management Agency must be named as
additional insured parties on the association policy.
(b) A community association manager or Community
Association Management Agency that provides community
association management services for more than one community
association shall maintain separate, segregated accounts for
each community association or, with the consent of the
association, combine the accounts of one or more associations,
but in that event, separately account for the funds of each
association. The funds shall not, in any event, be commingled
with the community association manager's or Community
Association Management Agency's funds. The maintenance of such
accounts shall be custodial, and such accounts shall be in the
name of the respective community association or community
association manager or Community Association Management Agency
as the agent for the association.
(c) The community association manager or Community
Association Management Agency shall obtain the appropriate
general liability and errors and omissions insurance, as
determined by the Department, to cover any losses or claims
against community association clients.
(d) The Department shall have authority to promulgate
additional rules regarding insurance, fidelity insurance and
all accounts maintained and to be maintained by a community
association manager or Community Association Management
Licenses; renewals; restoration; person in
(a) The expiration date and renewal period for each license
issued under this Act shall be set by rule. The Department may
promulgate rules requiring continuing education and set all
necessary requirements for such, including but not limited to
fees, approved coursework, number of hours, and waivers of
(b) Any licensee who has permitted his or her license to
expire may have the license restored by making application to
the Department and filing proof acceptable to the Department of
fitness to have his or her license restored, by which may
include sworn evidence certifying to active practice in another
jurisdiction satisfactory to the Department, complying with
any continuing education requirements, and paying the required
(c) If the person has not maintained an active practice in
another jurisdiction satisfactory to the Department, the
Department shall determine, by an evaluation program
established by rule, the person's fitness to resume active
status and may require the person to complete a period of
evaluated clinical experience and successful completion of a
However, any person whose license
expired while (i) in federal service on active duty with the
Armed Forces of the United States or called into service or
training with the State Militia or (ii) in training or
education under the supervision of the United States
preliminary to induction into the military service may have his
or her license renewed or restored without paying any lapsed
renewal fees if, within 2 years after honorable termination of
the service, training or education, except under condition
other than honorable, he or she furnishes the Department with
satisfactory evidence to the effect that he or she has been so
engaged and that the service, training, or education has been
(d) A community association manager who notifies the
Department, in writing on forms prescribed by the Department,
may place his or her license on inactive status and shall be
excused from the payment of renewal fees until the person
notifies the Department in writing of the intention to resume
(e) A community association manager requesting his or her
license be changed from inactive to active status shall be
required to pay the current renewal fee and shall also
demonstrate compliance with the continuing education
(f) Any license nonrenewed or on inactive status shall
provide community association management services or provide
services as community association manager as set forth in this
(g) Any person violating subsection (f) of this Section
shall be considered to be practicing without a license and will
be subject to the disciplinary provisions of this Act.
Fees; Community Association Manager Licensing
and Disciplinary Fund.
(a) The fees for the administration and enforcement of this
Act, including, but not limited to, initial licensure, renewal,
and restoration, shall be set by rule of the Department. The
fees shall be nonrefundable.
(b) In addition to the application fee, applicants for the
examination are required to pay, either to the Department or
the designated testing service, a fee covering the cost of
determining an applicant's eligibility and providing the
examination. Failure to appear for the examination on the
scheduled date, at the time and place specified, after the
applicant's application and fee for examination have been
received and acknowledged by the Department or the designated
testing service, shall result in the forfeiture of the fee.
(c) To support the costs of administering this Act, all
community associations that have 10 or more units and are
registered in this State as not-for-profit corporations shall
pay to the Department an annual fee of $50 plus an additional
$1 per unit. The Department may establish forms and promulgate
any rules for the effective collection of such fees under this
Any not-for-profit corporation in this State that fails to
pay in full to the Department all fees owed under this
subsection (c) shall be subject to the penalties and procedures
provided for under Section 92 of this Act.
(d) All fees, fines, penalties, or other monies received or
collected pursuant to this Act shall be deposited in the
Community Association Manager Licensing and Disciplinary Fund.
Penalty for insufficient funds; payments.
person who delivers a check or other payment to the Department
that is returned to the Department unpaid by the financial
institution upon which it is drawn shall pay to the Department,
in addition to the amount already owed to the Department, a
fine of $50. The Department shall notify the person that
payment of fees and fines shall be paid to the Department by
certified check or money order within 30 calendar days after
notification. If, after the expiration of 30 days from the date
of the notification, the person has failed to submit the
necessary remittance, the Department shall automatically
terminate the license or deny the application, without hearing.
If, after termination or denial, the person seeks a license, he
or she shall apply to the Department for restoration or
issuance of the license and pay all fees and fines due to the
Department. The Department may establish a fee for the
processing of an application for restoration of a license to
pay all expenses of processing this application. The Secretary
may waive the fines due under this Section in individual cases
where the Secretary finds that the fines would be unreasonable
or unnecessarily burdensome.
The Department may issue a
license as a licensed community association manager, without
the required examination, to an applicant licensed under the
laws of another state if the requirements for licensure in that
state are, on the date of licensure, substantially equal to the
requirements of this Act or to a person who, at the time of his
or her application for licensure, possessed individual
qualifications that were substantially equivalent to the
requirements then in force in this State. An applicant under
this Section shall pay all of the required fees.
Applicants have 3 years from the date of application to
complete the application process. If the process has not been
completed within the 3 years, the application shall be denied,
the fee shall be forfeited, and the applicant must reapply and
meet the requirements in effect at the time of reapplication.
The Department shall maintain a roster
of names and addresses of all persons who hold valid licenses
and all persons whose licenses have been suspended, revoked or
otherwise disciplined. This roster shall be available upon
request and payment of the required fee as determined by the
Grounds for discipline; refusal, revocation,
(a) The Department may refuse to issue or renew, or may
revoke a license, or may suspend, place on probation, fine, or
take any disciplinary or non-disciplinary action as the
Department may deem proper, including fines not to exceed
$10,000 for each violation, with regard to any licensee for any
one or combination of the following causes:
(1) Material misstatement in furnishing information to
(2) Violations of this Act or its rules.
(3) Conviction of or entry of a plea of guilty or nolo
contendere to any crime that is a felony under the laws of
the United States or any state or territory thereof or a
misdemeanor of which an essential element is dishonesty or
that is directly related to the practice of the profession.
(4) Making any misrepresentation for the purpose of
obtaining a license or violating any provision of this Act
or its rules.
(5) Professional incompetence.
(6) Gross negligence.
(7) Aiding or assisting another person in violating any
provision of this Act or its rules.
(8) Failing, within 30 days, to provide information in
response to a request made by the Department.
(9) Engaging in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud or harm the public as defined by the rules of the
Department, or violating the rules of professional conduct
adopted by the Department.
(10) Habitual or excessive use or addiction to alcohol,
narcotics, stimulants, or any other chemical agent or drug
that results in the inability to practice with reasonable
judgment, skill, or safety.
(11) Discipline by another state, territory, or
country if at least one of the grounds for the discipline
is the same or substantially equivalent to those set forth
in this Act.
(12) Directly or indirectly giving to or receiving from
any person, firm, corporation, partnership or association
any fee, commission, rebate, or other form of compensation
for any professional services not actually or personally
(13) A finding by the Department that the licensee,
after having his or her license placed on probationary
status, has violated the terms of probation.
(14) Willfully making or filing false records or
reports relating to a licensee's practice, including but
not limited to false records filed any State or federal
agencies or departments.
(15) Being named as a perpetrator in an indicated
report by the Department of Children and Family Services
under the Abused and Neglected Child Reporting Act and upon
proof by clear and convincing evidence that the licensee
has caused a child to be an abused child or neglected child
as defined in the Abused and Neglected Child Reporting Act.
(16) Physical illness or mental illness or impairment,
including, but not limited to, deterioration through the
aging process or loss of motor skill that results in the
inability to practice the profession with reasonable
judgment, skill, or safety.
(17) Solicitation of professional services by using
false or misleading advertising.
(18) A finding that licensure has been applied for or
obtained by fraudulent means.
(19) Practicing or attempting to practice under a name
other than the full name as shown on the license or any
other legally authorized name.
(20) Gross overcharging for professional services
including, but not limited to, (i) collection of fees or
moneys for services that are not rendered; and (ii)
charging for services that are not in accordance with the
contract between the licensee and the community
(21) Improper commingling of personal and client funds
in violation of this Act or any rules promulgated thereto.
(22) Failing to account for or remit any moneys or
documents coming into the licensee's possession that
belong to another person or entity.
(23) Giving differential treatment to a person that is
to that person's detriment because of race, color, creed,
sex, religion, or national origin.
(24) Performing and charging for services without
reasonable authorization to do so from the person or entity
for whom service is being provided.
(25) Failing to make available to the Department, upon
request, any books, records, or forms required by this Act.
(26) Purporting to be a licensee-in-charge of an agency
without active participation in the agency.
(27) Failing to make available to the Department at the
time of the request any indicia of licensure or
registration issued under this Act.
(b) In accordance with subdivision (a)(5) of Section 15 of
the Department of Professional Regulation Law of the Civil
Administrative Code of Illinois (20 ILCS 2105/2105-15), the
Department shall deny a license or renewal authorized by this
Act to a person who has defaulted on an educational loan or
scholarship provided or guaranteed by the Illinois Student
Assistance Commission or any governmental agency of this State.
(c) The determination by a circuit court that a licensee is
subject to involuntary admission or judicial admission, as
provided in the Mental Health and Developmental Disabilities
Code, operates as an automatic suspension. The suspension will
terminate only upon a finding by a court that the patient is no
longer subject to involuntary admission or judicial admission
and the issuance of an order so finding and discharging the
patient, and upon the recommendation of the Board to the
Secretary that the licensee be allowed to resume his or her
practice as a licensed community association manager.
(d) In accordance with subsection (g) of Section 15 of the
Department of Professional Regulation Law of the Civil
Administrative Code of Illinois (20 ILCS 2105/2105-15), the
Department may refuse to issue or renew or may suspend the
license of any person who fails to file a return, to pay the
tax, penalty, or interest shown in a filed return, or to pay
any final assessment of tax, penalty, or interest, as required
by any tax Act administered by the Department of Revenue, until
such time as the requirements of that tax Act are satisfied.
(e) In accordance with subdivision (a)(5) of Section 15 of
the Department of Professional Regulation Law of the Civil
Administrative Code of Illinois (20 ILCS 2105/2105-15) and in
cases where the Department of Healthcare and Family Services
(formerly Department of Public Aid) has previously determined
that a licensee or a potential licensee is more than 30 days
delinquent in the payment of child support and has subsequently
certified the delinquency to the Department may refuse to issue
or renew or may revoke or suspend that person's license or may
take other disciplinary action against that person based solely
upon the certification of delinquency made by the Department of
Healthcare and Family Services.
(f) In enforcing this Section, the Department or Board upon
a showing of a possible violation may compel an individual
licensed to practice under this Act, or who has applied for
licensure under this Act, to submit to a mental or physical
examination, or both, as required by and at the expense of the
Department. The Department or Board may order the examining
physician to present testimony concerning the mental or
physical examination of the licensee or applicant. No
information shall be excluded by reason of any common law or
statutory privilege relating to communications between the
licensee or applicant and the examining physician. The
examining physicians shall be specifically designated by the
Board or Department. The individual to be examined may have, at
his or her own expense, another physician of his or her choice
present during all aspects of this examination. Failure of an
individual to submit to a mental or physical examination, when
directed, shall be grounds for suspension of his or her license
or denial of his or her application or renewal until the
individual submits to the examination if the Department finds,
after notice and hearing, that the refusal to submit to the
examination was without reasonable cause.
If the Department or Board finds an individual unable to
practice because of the reasons set forth in this Section, the
Department or Board may require that individual to submit to
care, counseling, or treatment by physicians approved or
designated by the Department or Board, as a condition, term, or
restriction for continued, reinstated, or renewed licensure to
practice; or, in lieu of care, counseling, or treatment, the
Department may file, or the Board may recommend to the
Department to file, a complaint to immediately suspend, revoke,
deny, or otherwise discipline the license of the individual. An
individual whose license was granted, continued, reinstated,
renewed, disciplined or supervised subject to such terms,
conditions, or restrictions, and who fails to comply with such
terms, conditions, or restrictions, shall be referred to the
Secretary for a determination as to whether the individual
shall have his or her license suspended immediately, pending a
hearing by the Department.
In instances in which the Secretary immediately suspends a
person's license under this Section, a hearing on that person's
license must be convened by the Department within 30 days after
the suspension and completed without appreciable delay. The
Department and Board shall have the authority to review the
subject individual's record of treatment and counseling
regarding the impairment to the extent permitted by applicable
federal statutes and regulations safeguarding the
confidentiality of medical records.
An individual licensed under this Act and affected under
this Section shall be afforded an opportunity to demonstrate to
the Department or Board that he or she can resume practice in
compliance with acceptable and prevailing standards under the
provisions of his or her license.
Suspension of license for failure to pay
The Department, without further process or
hearing, shall suspend the license or other authorization to
practice of any person issued under this Act who has been
certified by court order as not having paid restitution to a
person under Section 8A-3.5 of the Illinois Public Aid Code or
under Section 46-1 of the Criminal Code of 1961. A person whose
license or other authorization to practice is suspended under
this Section is prohibited from practicing until the
restitution is made in full.
Violations; injunctions; cease and desist
(a) If any person violates a provision of this Act, the
Secretary may, in the name of the People of the State of
Illinois, through the Attorney General of the State of
Illinois, petition for an order enjoining the violation or for
an order enforcing compliance with this Act. Upon the filing of
a verified petition in court, the court may issue a temporary
restraining order, without notice or bond, and may
preliminarily and permanently enjoin the violation. If it is
established that the person has violated or is violating the
injunction, the Court may punish the offender for contempt of
court. Proceedings under this Section are in addition to, and
not in lieu of, all other remedies and penalties provided by
(b) If any person, entity or other business may provide
community association management services or provide services
as community association manager to any community association
in this State without having a valid license under this Act,
then any licensee, any interested party or any person injured
thereby may, in addition to the Secretary, petition for relief
as provided in subsection (a) of this Section.
(c) Whenever in the opinion of the Department any person,
entity or other business violates any provision of this Act,
the Department may issue a rule to show cause why an order to
cease and desist should not be entered against such person,
firm or other entity. The rule shall clearly set forth the
grounds relied upon by the Department and shall provide a
period of at least 7 days from the date of the rule to file an
answer to the satisfaction of the Department. If the person,
firm or other entity fails to file an answer satisfactory to
the Department, the matter shall be considered as a default and
the Department may cause an order to cease and desist to be
Unlicensed practice; violation; civil penalty.
(a) Any person, entity or other business who practices,
offers to practice, attempts to practice, or holds himself,
herself or itself out to practice as a community association
management service or provide services as community
association manager to any community association in this State
without being licensed under this Act shall, in addition to any
other penalty provided by law, pay a civil penalty to the
Department in an amount not to exceed $10,000 for each offense,
as determined by the Department. The civil penalty shall be
assessed by the Department after a hearing is held in
accordance with the provisions set forth in this Act regarding
the provision of a hearing for the discipline of a licensee.
(b) The Department may investigate any and all unlicensed
(c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty. The
order shall constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of record.
Investigation; notice and hearing.
Department may investigate the actions or qualifications of a
person, entity or other business holding or claiming to hold a
license. Before suspending, revoking, placing on probationary
status, or taking any other disciplinary action as the
Department may deem proper with regard to any license, at least
30 days before the date set for the hearing, the Department
shall (i) notify the accused in writing of any charges made and
the time and place for a hearing on the charges before the
Board, (ii) direct the individual or entity to file a written
answer to the charges with the Board under oath within 20 days
after the service on him or her of such notice, and (iii)
inform the person, entity or other business that if the person,
entity, or other business fails to file an answer, default will
be taken against such person, entity, or other business and the
license of such person, entity, or other business may be
suspended, revoked, placed on probationary status, or other
disciplinary action taken with regard to the license, including
limiting the scope, nature, or extent of his or her practice,
as the Department may deem proper. In case the person, after
receiving notice, fails to file an answer, his or her license
may, in the discretion of the Department, be suspended,
revoked, placed on probationary status, or the Department may
take whatever disciplinary action deemed proper, including
limiting the scope, nature, or extent of the person's practice
or the imposition of a fine, without a hearing, if the act or
acts charged constitute sufficient grounds for such action
under this Act. Written notice may be served by personal
delivery or by registered or certified mail to the applicant or
licensee at his or her last address of record with the
Department. In case the person fails to file an answer after
receiving notice, his or her license may, in the discretion of
the Department, be suspended, revoked, or placed on
probationary status, or the Department may take whatever
disciplinary action deemed proper, including limiting the
scope, nature, or extent of the person's practice or the
imposition of a fine, without a hearing, if the act or acts
charged constitute sufficient grounds for such action under
this Act. The written answer shall be served by personal
delivery, certified delivery, or certified or registered mail
to the Department. At the time and place fixed in the notice,
the Department shall proceed to hear the charges and the
parties or their counsel shall be accorded ample opportunity to
present such statements, testimony, evidence, and argument as
may be pertinent to the charges or to the defense thereto. The
Department may continue such hearing from time to time. At the
discretion of the Secretary after having first received the
recommendation of the Board, the accused person's license may
be suspended or revoked, if the evidence constitutes sufficient
grounds for such action under this Act.
Record of proceeding.
The Department, at its
expense, shall preserve a record of all proceedings at the
formal hearing of any case involving the refusal to restore,
issue or renew a license, or the discipline of a licensee. The
notice of hearing, complaint and all other documents in the
nature of pleadings and written motions filed in the
proceedings, the transcript of testimony, the report of the
Board and the orders of the Department shall be the record of
Subpoenas; oaths; attendance of witnesses.
The Department has the power to subpoena documents, books,
records, or other materials and to bring before it any person
and to take testimony either orally, by deposition, by written
interrogatory, or any combination thereof, with the same fees
and mileage and in the same manner as prescribed in civil cases
in the courts of this State.
The Secretary, the designated hearing officer, and every
member of the Board has the power to administer oaths to
witnesses at any hearing that the Department is authorized to
conduct and any other oaths authorized in any Act administered
by the Department.
Any circuit court may, upon application of the Department
or its designee, or of the applicant or licensee against whom
proceedings under this Act are pending, enter an order
requiring the attendance of witnesses and their testimony, and
the production of documents, papers, files, books, records or
testimony in connection with any hearing or investigation. The
court may compel obedience to its order by proceedings for
Recommendations for disciplinary action.
the conclusion of the hearing, the Board shall present to the
Secretary a written report of its findings and recommendations.
The report shall contain a finding whether or not the accused
person violated this Act or failed to comply with the
conditions required in this Act. The Board shall specify the
nature of the violation or failure to comply, and shall make
its recommendations to the Secretary.
The report of findings and recommendations of the Board
shall be the basis for the Department's order for refusal or
for the granting of a license, or for any disciplinary action,
unless the Secretary shall determine that the Board's report is
contrary to the manifest weight of the evidence, in which case
the Secretary may issue an order in contravention of the
Board's report. The finding is not admissible in evidence
against the person in a criminal prosecution brought for the
violation of this Act, but the hearing and finding are not a
bar to a criminal prosecution brought for the violation of this
In any hearing involving
disciplinary action against a licensee, a copy of the Board's
report shall be served upon the respondent by the Department,
either personally or as provided in this Act for the service of
the notice of hearing. Within 20 calendar days after service,
the respondent may present to the Department a motion in
writing for a rehearing that shall specify the particular
grounds for rehearing. If no motion for rehearing is filed,
then upon the expiration of the time specified for filing a
motion, or if a motion for rehearing is denied, then upon
denial, the Secretary may enter an order in accordance with
recommendations of the Board, except as provided in this Act.
If the respondent orders from the reporting service, and pays
for, a transcript of the record within the time for filing a
motion for rehearing, the 20 calendar day period within which a
motion may be filed shall commence upon the delivery of the
transcript to the respondent.
Appointment of a hearing officer.
Secretary has the authority to appoint any attorney duly
licensed to practice law in the State of Illinois to serve as
the hearing officer in any action for refusal to issue or renew
a license, or to discipline a licensee. The hearing officer has
full authority to conduct the hearing. The hearing officer
shall report his findings and recommendations to the Board and
the Secretary. The Board has 60 calendar days from receipt of
the report to review the report of the hearing officer and
present its findings of fact, conclusions of law and
recommendations to the Secretary.
If the Board fails to present its report within the 60
calendar day period, the respondent may request in writing a
direct appeal to the Secretary, in which case the Secretary
shall, within 7 calendar days after the request, issue an order
directing the Board to issue its findings of fact, conclusions
of law, and recommendations to the Secretary within 30 calendar
days after such order.
If the Board fails to issue its findings of fact,
conclusions of law, and recommendations within that time frame
to the Secretary after the entry of such order, the Secretary
shall, within 30 calendar days thereafter, issue an order based
upon the report of the hearing officer and the record of the
proceedings or issue an order remanding the matter back to the
hearing officer for additional proceedings in accordance with
If (i) a direct appeal is requested, (ii) the Board fails
to issue its findings of fact, conclusions of law, and
recommendations within the 30-day mandate from the Secretary or
the Secretary fails to order the Board to do so, and (iii) the
Secretary fails to issue an order within 30 calendar days
thereafter, then the hearing officer's report is deemed
accepted and a final decision of the Secretary.
Notwithstanding any other provision of this Section, if the
Secretary, upon review, determines that substantial justice
has not been done in the revocation, suspension, or refusal to
issue or renew a license or other disciplinary action taken as
the result of the entry of the hearing officer's report, the
Secretary may order a rehearing by the same or other examiners.
If the Secretary disagrees with the recommendation of the Board
or the hearing officer, the Secretary may issue an order in
contravention of either recommendation.
Order; certified copy.
An order or a
certified copy thereof, over the seal of the Department and
purporting to be signed by the Secretary, shall be prima facie
(a) that the signature is the genuine signature of the
(b) that the Secretary is duly appointed and qualified; and
(c) that the Board and its members are qualified to act.
Restoration of suspended or revoked license.
At any time after the successful completion of a term of
suspension or revocation of a license, the Department may
restore it to the licensee, upon the written recommendation of
the Board, unless after an investigation and a hearing the
Board determines that restoration is not in the public
Upon the revocation or
suspension of any license, the licensee shall immediately
surrender the license or licenses to the Department. If the
licensee fails to do so, the Department has the right to seize
the license or licenses.
The Secretary may
summarily suspend a license without a hearing, simultaneously
with the institution of proceedings for a hearing provided for
in this Act, if the Secretary finds that evidence in his or her
possession indicates that a continuation in practice would
constitute an imminent danger to the public. In the event that
the Secretary summarily suspends a license without a hearing, a
hearing by the Department must be held within 30 calendar days
after the suspension has occurred.
All final administrative
decisions of the Department are subject to judicial review
under the Administrative Review Law and its rules. The term
"administrative decision" is defined as in Section 3-101 of the
Code of Civil Procedure. Proceedings for judicial review shall
be commenced in the circuit court of the county in which the
party applying for review resides; but if the party is not a
resident of this State, the venue shall be in Sangamon County.
Certification of records.
shall not be required to certify any record to the Court or
file any answer in court or otherwise appear in any court in a
judicial review proceeding, unless there is filed in the court,
with the complaint, a receipt from the Department acknowledging
payment of the costs of furnishing and certifying the record.
Failure on the part of the plaintiff to file such receipt in
Court shall be grounds for dismissal of the action.
(a) A person who violates any of the following provisions
shall be guilty of a Class A misdemeanor; a person who commits
a second or subsequent violation of these provisions is guilty
of a Class 4 felony:
(1) The practice of or attempted practice of or holding
out as available to practice as a community association
manager without a license.
(2) Operation of or attempt to operate a Community
Association Management Agency without an agency license.
(3) The obtaining of or the attempt to obtain any
license or authorization issued under this Act by
(b) Whenever a licensee is convicted of a felony related to
the violations set forth in this Section, the clerk of the
court in any jurisdiction shall promptly report the conviction
to the Department and the Department shall immediately revoke
any license as a community association manager held by that
licensee. The individual shall not be eligible for licensure
under this Act until at least 10 years have elapsed since the
time of full discharge from any sentence imposed for a felony
conviction. If any person in making any oath or affidavit
required by this Act swears falsely, the person is guilty of
perjury and may be punished accordingly.
Illinois Administrative Procedure Act.
Illinois Administrative Procedure Act is expressly adopted and
incorporated in this Act as if all of the provisions of that
Act were included in this Act, except that the provision of
paragraph (d) of Section 10-65 of the Illinois Administrative
Procedure Act, which provides that at hearings the license
holder has the right to show compliance with all lawful
requirements for retention, continuation or renewal of the
certificate, is specifically excluded. For the purpose of this
Act the notice required under Section 10-25 of the Illinois
Administrative Procedure Act is deemed sufficient when mailed
to the last known address of record maintained for a party by
The regulation and licensing of
community association managers and Community Association
Management Agencies are exclusive powers and functions of the
State. A home rule unit may not regulate or license community
association managers and Community Association Management
Agencies. This Section is a denial and limitation of home rule
powers and functions under subsection (h) of Section 6 of
Article VII of the Illinois Constitution.
The licensure requirements of
this Act shall not be enforced until 12 months after the
adoption of final administrative rules for this Act.
The Regulatory Sunset Act is amended by adding
Section 4.30 as follows:
(5 ILCS 80/4.30 new)
Act repealed on January 1, 2020.
Act is repealed on January 1, 2020:
The Community Association Manager Licensing and