Rep. Elaine Nekritz
Filed: 3/19/2013
 
 


 




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1
AMENDMENT TO HOUSE BILL 595 




2 AMENDMENT NO. ______. Amend House Bill 595 by replacing 
3everything after the enacting clause with the following:


4 "Section 5. The Community Association Manager Licensing 
5and Disciplinary Act is amended by changing Sections 5, 10, 15, 
620, 25, 27, 32, 40, 50, 55, 60, 65, 70, 75, 85, 87, 92, 135, 
7155, and 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9 (Section scheduled to be repealed on January 1, 2020)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 
 
 
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1render management services of a professional nature, and 
2provide for the maintenance of high standards of professional 
3conduct by those licensed to provide as community association 
4management services managers.

5(Source: P.A. 96-726, eff. 7-1-10.)

6 (225 ILCS 427/10)

7 (Section scheduled to be repealed on January 1, 2020)
8 Sec. 10. Definitions. As used in this Act: 
9 "Address of record" means the designated address recorded 
10by the Department in the applicant's or licensee's application 
11file or license file maintained by the Department's licensure 
12maintenance unit. It is the duty of the applicant or licensee 
13to inform the Department of any change of address, and such 
14changes must be made either through the Department's website or 
15by contacting the Department's licensure maintenance unit. 
16 "Advertise" means, but is not limited to, issuing or 
17causing to be distributed any card, sign or device to any 
18person; or causing, permitting or allowing any sign or marking 
19on or in any building, structure, newspaper, magazine or 
20directory, or on radio or television; or advertising by any 
21other means designed to secure public attention. 
22 "Board" means the Illinois Community Association Manager 
23Licensing and Disciplinary Board. 
24 "Community association" means an association in which 
25membership is a condition of ownership or shareholder interest 
 
 
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1of a unit in a condominium, cooperative, townhouse, villa, or 
2other residential unit which is part of a residential 
3development plan and that is authorized to impose an 
4assessment, rents, or other costs that may become a lien on the 
5unit or lot. 
6 "Community association funds" means any assessments, fees, 
7fines, or other funds collected by the community association 
8manager from the community association, or its members, other 
9than the compensation paid to the community association manager 
10for performance of community association management services.
11 "Community association management firm" means a company, 
12corporation, limited liability company, or other entity that 
13engages in the community association management business. 
14 "Community association management services" means those 
15services listed in the definition of community association 
16manager in this Section. 
17 "Community Association Management Agency" means a company, 
18firm, corporation, limited liability company, or other entity 
19that engages in the community association management business 
20and employs, in addition to the licensee-in-charge, at least 
21one other person in conducting such business.
22 "Community association manager" means an individual who 
23administers for remuneration the financial, administrative, 
24maintenance, or other duties for the community association, 
25including the following services: (A) collecting, controlling 
26or disbursing funds of the community association or having the 
 
 
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1authority to do so; (B) preparing budgets or other financial 
2documents for the community association; (C) assisting in the 
3conduct of community association meetings; (D) maintaining 
4association records; and (E) administrating association 
5contracts, as stated in the declaration, bylaws, proprietary 
6lease, declaration of covenants, or other governing document of 
7the community association. "Community association manager" 
8does not mean support staff, including, but not limited to 
9bookkeepers, administrative assistants, secretaries, property 
10inspectors, or customer service representatives.
11 "Department" means the Department of Financial and 
12Professional Regulation. 
13 "License" means the license issued to a person, 
14corporation, partnership, limited liability company, or other 
15legal entity to act as a community association manager under 
16this Act to provide community association management services 
17or other authority to practice issued under this Act. 
18 "Person" means any individual, firm, corporation, 
19partnership, limited liability company, or other legal entity 
20organization, or body politic. 
21 "Licensee-in-charge" means a person licensed as a 
22community association manager who has been designated by a 
23Community Association Management Agency as the full-time 
24management employee or owner who assumes sole responsibility 
25for maintaining all records required by this Act and who 
26assumes sole responsibility for assuring the licensed agency's 
 
 
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1compliance with its responsibilities as stated in the Act.
2 "Secretary" means the Secretary of Financial and 
3Professional Regulation.


4 "Supervising community association manager" means an 
5individual licensed as a community association manager who 
6manages and supervises licensees in an office. 
7(Source: P.A. 96-726, eff. 7-1-10.)

8 (225 ILCS 427/15)

9 (Section scheduled to be repealed on January 1, 2020)
10 Sec. 15. License required. It Beginning 12 months after the 
11adoption of rules providing for the licensure of a community 
12association manager in Illinois under this Act, it shall be 
13unlawful for any person, corporation, partnership, limited 
14liability company, or other entity, or other business to 
15provide community association management services, or provide 
16services as a community association manager, or hold himself, 
17herself, or itself out as a community association manager or 
18community association management firm to any community 
19association in this State, unless he, or she, or it holds a 
20current and valid license issued licensed by the Department or 
21is otherwise exempt from licensure under this Act.

22(Source: P.A. 96-726, eff. 7-1-10.)

23 (225 ILCS 427/20)

24 (Section scheduled to be repealed on January 1, 2020)
 
 
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1 Sec. 20. Exemptions. 
2 (a) The requirement for holding a license under this This 
3Act shall does not apply to any of the following:
4  (1) Any director, officer, or member of a community 
5 association providing one or more of the services of a 
6 community association manager to a community association 
7 without compensation for such services to the association.
8  (2) Any person, corporation, partnership, or limited 
9 liability company providing one or more of the services of 
10 a community association manager to a community association 
11 of 10 units or less.
12  (3) A licensed attorney acting solely as an incident to

13 the practice of law.
14  (4) A person acting as a receiver, trustee in 
15 bankruptcy, administrator, executor, or guardian acting 
16 under a court order or under the authority of a will or of 
17 a trust instrument.
18  (5) A person licensed in this State under any other Act 
19 from engaging the practice for which he or she is licensed.
20 (b) A licensed community association manager may not 
21perform or engage in any activities for which a real estate 
22managing broker or real estate broker's salesperson's license 
23is required under
the Real Estate License Act of 2000, unless 
24he or she also possesses a current and valid license under the 
25Real Estate License Act of 2000 and is providing those services 
26as provided for in the Real Estate License Act of 2000 and the 
 
 
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1applicable rules.

2 (c) A person may temporarily act as, or provide services 
3as, a community association manager without being licensed 
4under this Act if the person (i) is a community association 
5manager regulated under the laws of another state or territory 
6of the United States or another country and (ii) has applied in 
7writing to the Department, on forms prepared and furnished by 
8the Department, for licensure under this Act. This temporary 
9right to act as a community association manager shall expire , 
10but only until the expiration of 6 months after the filing of 
11his or her written application to the Department; , his or upon 
12the her withdrawal of the application for licensure under this 
13Act; or upon delivery of , he or she has received a notice of 
14intent to deny the application from the Department; , or upon 
15the denial of the application by the Department, whichever 
16occurs first.

17(Source: P.A. 96-726, eff. 7-1-10.)

18 (225 ILCS 427/25)

19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 25. Community Association Manager Licensing and 
21Disciplinary Board. 
22 (a) There is hereby created the Community Association 
23Manager Licensing and Disciplinary Board, which shall consist 
24of 7 members appointed by the Secretary. All members must be 
25residents of the State and must have resided in the State for 
 
 
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1at least 5 years immediately preceding the date of appointment. 
2Five members of the Board must be licensees under this Act, at 
3least two members of which shall be supervising community 
4association managers except that, initially, these members 
5must meet the qualifications for licensure and have obtained a 
6license within 6 months after the effective date of this Act. 
7Two members of the Board shall be owners of, or hold a 
8shareholder's interest in, shareholders of a unit in a 
9community association at the time of appointment who are not 
10licensees under this Act and have no direct affiliation or work 
11experience with the community association's community 
12association manager. This Board shall act in an advisory 
13capacity to the Department.
14 (b) Board members shall serve for terms of 5 years, except 
15that, initially, 4 members shall serve for 5 years and 3 
16members shall serve for 4 years. All members shall serve until

17his or her successor is appointed and qualified. All vacancies 
18shall be filled in like manner for the unexpired term. No 
19member shall serve for more than 2 successive terms. The 
20Secretary shall remove from the Board any member whose license 
21has become void or has been revoked or suspended and may remove 
22any member of the Board for neglect of duty, misconduct, or 
23incompetence. A member who is subject to formal disciplinary 
24proceedings shall disqualify himself or herself from all Board 
25business until the charge is resolved. A member also shall 
26disqualify himself or herself from any matter on which the 
 
 
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1member cannot act objectively.
2 (c) Four Board members shall constitute a quorum. A quorum 
3is required for all Board decisions.
4 (d) The Board shall may elect annually a chairperson and 
5vice chairperson.
6 (e) Each member shall receive reimbursement as set by the 
7Governor's Travel Control Board for expenses incurred in 
8carrying out the duties as a Board member. The Board shall be 
9compensated as determined by the Secretary.
10 (f) The Board may recommend policies, procedures, and rules 
11relevant to the administration and enforcement of this Act.

12(Source: P.A. 96-726, eff. 7-1-10.)

13 (225 ILCS 427/27)

14 (Section scheduled to be repealed on January 1, 2020)
15 Sec. 27. Immunity from Liability. Any member of the Board, 
16any attorney providing
advice to the Board or Department, any 
17person acting as a consultant to the Board or Department, and 
18any witness testifying in a proceeding authorized under this 
19Act, excluding the party making the complaint, shall be immune 
20from liability in any civil action brought against him or her 
21for acts occurring while acting in his or her capacity as a 
22Board member, attorney, consultant, or witness, respectively, 
23unless the conduct that gave rise to the action was willful or 
24wanton misconduct.

25(Source: P.A. 96-726, eff. 7-1-10.)

 
 
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1 (225 ILCS 427/32)

2 (Section scheduled to be repealed on January 1, 2020)
3 Sec. 32. Social Security Number or Federal Tax 
4Identification Number on license application. In addition to 
5any other information required to be contained in the 
6application, every application for an original license under 
7this Act shall include the applicant's Social Security Number 
8or Federal Tax Identification Number, which shall be retained 
9in the Department's agency's records pertaining to the license. 
10As soon as practical, the Department shall assign a customer's 
11identification number to each applicant for a license.
12 Every application for a renewal or restored license shall 
13require the applicant's customer identification number. 

14(Source: P.A. 96-726, eff. 7-1-10; 97-400, eff. 1-1-12.)

15 (225 ILCS 427/40)

16 (Section scheduled to be repealed on January 1, 2020)
17 Sec. 40. Qualifications for licensure as a community 
18association manager. 
19 (a) No person shall be qualified for licensure as a 
20community association manager under this Act, unless he or she 
21has applied in writing on the prescribed forms and has paid the 
22required, nonrefundable fees and meets all of the following 
23qualifications:
24  (1) He or she is at least 21 years of age.
 
 
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1  (2) He or she provides satisfactory evidence of having 
2 completed at least 20 classroom hours in community 
3 association management courses approved by the Board.
4  (3) He or she has passed an examination authorized by 
5 the Department.

6  (4) He or she has not committed an act or acts, in this 
7 or any other jurisdiction, that would be a violation of 
8 this Act.
9  (5) He or she is of good moral character. In 
10 determining moral character under this Section, the 
11 Department may take into consideration whether the 
12 applicant has engaged in conduct or activities that would 
13 constitute grounds for discipline under this Act. Good 
14 moral character is a continuing requirement of licensure. 
15 Conviction of crimes may be used in determining moral 
16 character, but shall not constitute an absolute bar to 
17 licensure.
18  (6) He or she has not been declared by any court of 
19 competent jurisdiction to be incompetent by reason of 
20 mental or physical defect or disease, unless a court has 
21 subsequently declared him or her to be competent.
22  (7) He or she complies with any additional 
23 qualifications for licensure as determined by rule of the 
24 Department.
25 (b) The education requirement set forth in item (2) of 
26subsection (a) of this Section shall not apply to persons 
 
 
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1holding a real estate broker or real estate broker salesperson 
2license in good standing issued under the Real Estate License 
3Act of 2000.
4 (c) The examination and initial education requirement of 
5items (2) and (3) of subsection (a) of this Section shall not 
6apply to any person who within 6 months from the effective date 
7of the requirement for licensure, as set forth in Section 170 
8of this Act, applies for a license by providing satisfactory 
9evidence to the Department of qualifying experience or 
10education, as may be set forth by rule, including without 
11limitation evidence that he or she has (i) practiced community 
12association management for a period of 5 years or (ii) achieved 
13a designation awarded by recognized community association 
14management organizations in the State.
15 (d) Applicants have 3 years from the date of application to 
16complete the application process. If the process has not been 
17completed within the 3 years, the application shall be denied, 
18the fee shall be forfeited, and the applicant must reapply and 
19meet the requirements in effect at the time of re-application. 

20(Source: P.A. 96-726, eff. 7-1-10; 96-993, eff. 7-2-10.)

21 (225 ILCS 427/42 new)
22 (Section scheduled to be repealed on January 1, 2020)
23 Sec. 42. Qualifications for licensure as a supervising 
24community association manager.
25 (a) No person shall be qualified for licensure as a 
 
 
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1supervising community association manager under this Act 
2unless he or she has applied in writing on the prescribed 
3forms, has paid the required nonrefundable fees, and meets all 
4of the following qualifications:
5  (1) He or she is at least 21 years of age.
6  (2) He or she has been licensed at least one out of the 
7 last 2 preceding years as a community association manager.
8  (3) He or she provides satisfactory evidence of having 
9 completed at least 30 classroom hours in community 
10 association management courses approved by the Board, 20 
11 hours of which shall be those pre-license hours required to 
12 obtain a community association manager license, and 10 
13 additional hours completed the year immediately preceding 
14 the filing of the application for a supervising community 
15 association manager license, which shall focus on 
16 community association administration, management, and 
17 supervision.
18  (4) He or she has passed an examination authorized by 
19 the Department.
20  (5) He or she has not committed an act or acts, in this 
21 or any other jurisdiction, that would be a violation of 
22 this Act.
23  (6) He or she is of good moral character. In 
24 determining moral character under this Section, the 
25 Department may take into consideration whether the 
26 applicant has engaged in conduct or activities that would 
 
 
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1 constitute grounds for discipline under this Act. Good 
2 moral character is a continuing requirement of licensure. 
3 Conviction of crimes may be used in determining moral 
4 character, but shall not constitute an absolute bar to 
5 licensure.
6  (7) He or she has not been declared by any court of 
7 competent jurisdiction to be incompetent by reason of 
8 mental or physical defect or disease, unless a court has 
9 subsequently declared him or her to be competent.
10  (8) He or she complies with any additional 
11 qualifications for licensure as determined by rule of the 
12 Department.
13 (b) The initial 20-hour education requirement set forth in 
14item (3) of subsection (a) of this Section shall not apply to 
15persons holding a real estate managing broker or real estate 
16broker license in good standing issued under the Real Estate 
17License Act of 2000. The 10 additional hours required for 
18licensure under this Section shall be completed as required.
19 (c) The examination and initial education requirement of 
20items (3) and (4) of subsection (a) of this Section shall not 
21apply to any person who, within 6 months after the effective 
22date of the requirement for licensure, as set forth in Section 
23170 of this Act, applies for a license by providing 
24satisfactory evidence to the Department of qualifying 
25experience or education, as may be set forth by rule, including 
26without limitation, evidence that he or she has practiced 
 
 
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1community association management for a period of 7 years.
2 (d) Applicants have 3 years after the date of application 
3to complete the application process. If the process has not 
4been completed within the 3 years, the application shall be 
5denied, the fee shall be forfeited, and the applicant must 
6reapply and meet the requirements in effect at the time of 
7re-application.

8 (225 ILCS 427/50)

9 (Section scheduled to be repealed on January 1, 2020)
10 Sec. 50. Community association management firm Association 
11Management Agency.

12 (a) No firm, corporation, partnership, limited liability 
13company, or other legal entity shall provide or offer to 
14provide community association management services, unless it 
15has applied in writing on the prescribed forms and has paid the 
16required nonrefundable fees and provided evidence to the 
17Department that the firm has designated a licensed supervising 
18community association manager to supervise and manage the firm. 
19A designated supervising community association manager shall 
20be a continuing requirement of firm licensure. No supervising 
21community association manager may be the supervising community 
22association manager for more than one firm. such services are 
23provided through:
24  (1) an employee or independent contractor who is 
25 licensed under this Act; 
 
 
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1  (2) a natural person who is acting under the direct 
2 supervision of an employee of such firm, corporation, 
3 limited liability company, or other legal entity that is 
4 licensed under this Act; or 
5  (3) a natural person who is legally authorized to 
6 provide such services.
7 (b) Any firm, corporation, partnership, limited liability 
8company, or other legal entity that is providing, or offering 
9to provide, community association management services and is 
10not in compliance with Section 50 and other the provisions of 
11this Act shall be subject to the fines, injunctions, cease and 
12desist provisions, and penalties provided for in Sections 90, 
1392, and 155 of this Act.
14 (c) No community association manager may be the 
15licensee-in-charge for more than one firm, corporation, 
16limited liability company, or other legal entity.


17(Source: P.A. 96-726, eff. 7-1-10.)

18 (225 ILCS 427/55)

19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 55. Fidelity insurance; segregation of accounts. 
21 (a) The supervising community association manager or the 
22community association management firm A community association 
23manager or the Community Association Management Agency with 
24which he or she is employed shall not have access to and 
25disburse community association funds of a community 
 
 
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1association unless each of the following conditions occur:
2  (1) There is fidelity insurance in place to insure 
3 against loss for theft of community association funds.
4  (2) The fidelity insurance is not less than all moneys 
5 under the control of the supervising community association 
6 manager community association manager or the employing 
7 community association management firm Community 
8 Association Management Agency for the association.
9  (3) The fidelity insurance covers the community 
10 association manager, supervising community association 
11 manager, and all partners, officers, and employees of the 
12 community association management firm Community 
13 Association Management Agency with whom he or she is 
14 employed during the term of the insurance coverage, which 
15 shall be at least for the same term as the service 
16 agreement between the community association management 
17 firm or supervising community association manager as well 
18 as the community association officers, directors, and 
19 employees.
20  (4) The insurance company issuing the fidelity 
21 insurance may not cancel or refuse to renew the bond 
22 without giving at least 10 days' prior written notice.
23  (5) Unless an agreement between the community 
24 association and the supervising community association 
25 manager or the community association management firm 
26 Community Association Management Agency provides to the 
 
 
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1 contrary, a community association may secure and pay the 
2 Association secures and pays for the fidelity insurance 
3 required by this Section. The supervising community 
4 association manager or the community association 
5 management firm community association manager and the 
6 Community Association Management Agency must be named as 
7 additional insured parties on the community association 
8 policy.
9 (b) A community association management firm manager or 
10Community Association Management Agency that provides 
11community association management services for more than one 
12community association shall maintain separate, segregated 
13accounts for each community association or, with the consent of 
14the community association, combine the accounts of one or more 
15community associations, but in that event, separately account 
16for the funds of each community association. The funds shall 
17not, in any event, be commingled with the supervising community 
18association manager's or community association management 
19firm's Community Association Management Agency's funds. The 
20maintenance of such accounts shall be custodial, and such 
21accounts shall be in the name of the respective community 
22association or community association manager or Community 
23Association Management Agency as the agent for the association.
24 (c) The supervising community association manager or 
25community association management firm Community Association 
26Management Agency shall obtain the appropriate general 
 
 
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1liability and errors and omissions insurance, as determined by 
2the Department, to cover any losses or claims against the 
3supervising community association manager or the community 
4association management firm community association clients.
5 (d) The Department shall have authority to promulgate 
6additional rules regarding insurance, fidelity insurance and 
7all accounts maintained and to be maintained by a supervising 
8community association manager or community association 
9management firm Community Association Management Agency.


10(Source: P.A. 96-726, eff. 7-1-10.)

11 (225 ILCS 427/60)

12 (Section scheduled to be repealed on January 1, 2020)
13 Sec. 60. Licenses; renewals; restoration; person in 
14military service. 
15 (a) The expiration date and renewal period for each license 
16issued under this Act shall be set by rule. The Department may 
17promulgate rules requiring continuing education and set all 
18necessary requirements for such, including but not limited to 
19fees, approved coursework, number of hours, and waivers of 
20continuing education.
21 (b) Any licensee who has permitted his, or her, or its 
22license to expire may have the license restored by making 
23application to the Department and filing proof acceptable to 
24the Department of fitness to have his, or her, or its license 
25restored, by which may include sworn evidence certifying to 
 
 
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1active practice in another jurisdiction satisfactory to the 
2Department, complying with any continuing education 
3requirements, and paying the required restoration fee.
4 (c) If the person has not maintained an active practice in 
5another jurisdiction satisfactory to the Department, the 
6Department shall determine, by an evaluation program 
7established by rule, the person's fitness to resume active 
8status and may require the person to complete a period of 
9evaluated clinical experience and successful completion of a 
10practical examination.
However, any person whose license 
11expired while (i) in federal service on active duty with the 
12Armed Forces of the United States or called into service or 
13training with the State Militia or (ii) in training or 
14education under the supervision of the United States 
15preliminary to induction into the military service may have his 
16or her license renewed or restored without paying any lapsed 
17renewal fees if, within 2 years after honorable termination of 
18the service, training or education, except under condition 
19other than honorable, he or she furnishes the Department with 
20satisfactory evidence to the effect that he or she has been so 
21engaged and that the service, training, or education has been 
22so terminated.
23 (d) A community association manager, community association 
24management firm or supervising community association manager 
25who notifies the Department, in writing on forms prescribed by 
26the Department, may place his, or her, or its license on 
 
 
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1inactive status and shall be excused from the payment of 
2renewal fees until the person notifies the Department in 
3writing of the intention to resume active practice.
4 (e) A community association manager, community association 
5management firm, or supervising community association manager 
6requesting his, or her, or its license be changed from inactive 
7to active status shall be required to pay the current renewal 
8fee and shall also demonstrate compliance with the continuing 
9education requirements.
10 (f) Any licensee with a license nonrenewed or on inactive 
11license status shall not provide community association 
12management services or provide services as community 
13association manager as set forth in this Act.
14 (g) Any person violating subsection (f) of this Section 
15shall be considered to be practicing without a license and will 
16be subject to the disciplinary provisions of this Act.

17(Source: P.A. 96-726, eff. 7-1-10.)

18 (225 ILCS 427/65)

19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 65. Fees; Community Association Manager Licensing and 
21Disciplinary Fund. 
22 (a) The fees for the administration and enforcement of this 
23Act, including, but not limited to, initial licensure, renewal, 
24and restoration, shall be set by rule of the Department. The 
25fees shall be nonrefundable.
 
 
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1 (b) In addition to the application fee, applicants for the 
2examination are required to pay, either to the Department or 
3the designated testing service, a fee covering the cost of 
4determining an applicant's eligibility and providing the 
5examination. Failure to appear for the examination on the 
6scheduled date, at the time and place specified, after the 
7applicant's application and fee for examination have been 
8received and acknowledged by the Department or the designated 
9testing service, shall result in the forfeiture of the fee.
10 (c) To support the costs of administering this Act, all 
11community associations that (i) are subject to this Act by 
12having 10 or more units, (ii) retain an individual to provide 
13services as a community association manager for compensation, 
14(iii) are not master associations under Section 18.5 of the 
15Condominium Property Act or the Common Interest Community 
16Association Act, and (iv) are registered in this State as 
17not-for-profit corporations shall pay to the Department an 
18annual fee of $50 plus an additional $1 per unit, but shall not 
19exceed an annual fee of $1,000 for any community association. 
20The Department may establish forms and promulgate any rules for 
21the effective collection of such fees under this subsection 
22(c).
23 Any not-for-profit corporation in this State that fails to 
24pay in full to the Department all fees owed under this 
25subsection (c) shall be subject to the penalties and procedures 
26provided for under Section 92 of this Act.
 
 
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1 (c) (d) All fees, fines, penalties, or other monies 
2received or collected pursuant to this Act shall be deposited 
3in the Community Association Manager Licensing and 
4Disciplinary Fund.


5(Source: P.A. 96-726, eff. 7-1-10; 97-1021, eff. 8-17-12.)

6 (225 ILCS 427/70)

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

4(Source: P.A. 96-726, eff. 7-1-10.)

5 (225 ILCS 427/75)

6 (Section scheduled to be repealed on January 1, 2020)
7 Sec. 75. Endorsement.  The Department may issue a license 
8as a licensed community association manager or supervising 
9community association manager license, without the required 
10examination, to an applicant licensed under the laws of another 
11state if the requirements for licensure in that state are, on 
12the date of licensure, substantially equal to the requirements 
13of this Act or to a person who, at the time of his or her 
14application for licensure, possessed individual qualifications 
15that were substantially equivalent to the requirements then in 
16force in this State. An applicant under this Section shall pay 
17all of the required fees. 
18 Applicants have 3 years from the date of application to 
19complete the application process. If the process has not been 
20completed within the 3 years, the application shall be denied, 
21the fee shall be forfeited, and the applicant must reapply and 
22meet the requirements in effect at the time of reapplication. 

23(Source: P.A. 96-726, eff. 7-1-10.)

24 (225 ILCS 427/85)

 
 
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1 (Section scheduled to be repealed on January 1, 2020)
2 Sec. 85. Grounds for discipline; refusal, revocation, or 
3suspension. 
4 (a) The Department may refuse to issue or renew a license, 
5or may revoke a license, or may suspend, place on probation, 
6reprimand, suspend, or revoke any license fine, or take any 
7other disciplinary or non-disciplinary action as the 
8Department may deem proper and impose a fine , including fines 
9not to exceed $10,000 for each violation upon , with regard to 
10any licensee or applicant under this Act or any person or 
11entity who holds himself, herself, or itself out as an 
12applicant or licensee for any one or combination of the 
13following causes:
14  (1) Material misstatement in furnishing information to 
15 the Department.
16  (2) Violations of this Act or its rules.
17  (3) Conviction of or entry of a plea of guilty or plea 
18 of nolo contendere to any crime that is a felony or a 
19 misdemeanor under the laws of the United States, or any 
20 state, or any other jurisdiction territory thereof or entry 
21 of an administrative sanction by a government agency in 
22 this State or any other jurisdiction. Action taken under 
23 this paragraph (3) for a misdemeanor or an administrative 
24 sanction is limited to a misdemeanor or administrative 
25 sanction that has as of which an essential element is 
26 dishonesty or fraud, that involves larceny, embezzlement, 
 
 
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1 or obtaining money, property, or credit by false pretenses 
2 or by means of a confidence game, or that is directly 
3 related to the practice of the profession.
4  (4) Making any misrepresentation for the purpose of 
5 obtaining a license or violating any provision of this Act 
6 or its rules.
7  (5) Professional incompetence.
8  (6) Gross negligence.
9  (7) Aiding or assisting another person in violating any 
10 provision of this Act or its rules.
11  (8) Failing, within 30 days, to provide information in 
12 response to a request made by the Department.
13  (9) Engaging in dishonorable, unethical, or 
14 unprofessional conduct of a character likely to deceive, 
15 defraud or harm the public as defined by the rules of the 
16 Department, or violating the rules of professional conduct 
17 adopted by the Department.
18  (10) Habitual or excessive use or addiction to alcohol, 
19 narcotics, stimulants, or any other chemical agent or drug 
20 that results in the inability to practice with reasonable 
21 judgment, skill, or safety.
22  (11) Having been disciplined by another state, the 
23 District of Columbia, a territory, a foreign nation, or a 
24 governmental agency authorized to impose discipline 
25 Discipline by another state, territory, or country if at 
26 least one of the grounds for the discipline is the same or 
 
 
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1 substantially equivalent of one of the grounds for which a 
2 licensee may be disciplined under this Act. A certified 
3 copy of the record of the action by the other state or 
4 jurisdiction shall be prima facie evidence thereof to those 
5 set forth in this Act.
6  (12) Directly or indirectly giving to or receiving from 
7 any person, firm, corporation, partnership or association 
8 any fee, commission, rebate, or other form of compensation 
9 for any professional services not actually or personally 
10 rendered.
11  (13) A finding by the Department that the licensee, 
12 after having his, or her, or its license placed on 
13 probationary status, has violated the terms of probation.
14  (14) Willfully making or filing false records or 
15 reports relating to a licensee's practice, including but 
16 not limited to false records filed with any State or 
17 federal agencies or departments.
18  (15) Being named as a perpetrator in an indicated 
19 report by the Department of Children and Family Services 
20 under the Abused and Neglected Child Reporting Act and upon 
21 proof by clear and convincing evidence that the licensee 
22 has caused a child to be an abused child or neglected child 
23 as defined in the Abused and Neglected Child Reporting Act.
24  (16) Physical illness or mental illness or impairment, 
25 including, but not limited to, deterioration through the 
26 aging process or loss of motor skill that results in the 
 
 
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1 inability to practice the profession with reasonable 
2 judgment, skill, or safety.
3  (17) Solicitation of professional services by using 
4 false or misleading advertising.
5  (18) A finding that licensure has been applied for or 
6 obtained by fraudulent means.
7  (19) Practicing or attempting to practice under a name 
8 other than the full name as shown on the license or any 
9 other legally authorized name.
10  (20) Gross overcharging for professional services 
11 including, but not limited to, (i) collection of fees or 
12 moneys for services that are not rendered; and (ii) 
13 charging for services that are not in accordance with the 
14 contract between the licensee and the community 
15 association.
16  (21) Improper commingling of personal and client funds 
17 in violation of this Act or any rules promulgated thereto.
18  (22) Failing to account for or remit any moneys or 
19 documents coming into the licensee's possession that 
20 belong to another person or entity.
21  (23) Giving differential treatment to a person that is 
22 to that person's detriment because of race, color, creed, 
23 sex, religion, or national origin.
24  (24) Performing and charging for services without 
25 reasonable authorization to do so from the person or entity 
26 for whom service is being provided.
 
 
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1  (25) Failing to make available to the Department, upon 
2 request, any books, records, or forms required by this Act.
3  (26) Purporting to be a supervising community 
4 association manager licensee-in-charge of a firm an agency 
5 without active participation in the firm agency.
6  (27) Failing to make available to the Department at the 
7 time of the request any indicia of licensure or 
8 registration issued under this Act.
9  (28) Failing to maintain and deposit funds belonging to 
10 a community association in accordance with subsection (b) 
11 of Section 55 of this Act.
12  (29) Violating the terms of a disciplinary order issued 
13 by the Department. 
14 (b) In accordance with subdivision (a)(5) of Section 15 of 
15the Department of Professional Regulation Law of the Civil 
16Administrative Code of Illinois (20 ILCS 2105/2105-15), the 
17Department shall deny a license or renewal authorized by this 
18Act to a person who has defaulted on an educational loan or 
19scholarship provided or guaranteed by the Illinois Student 
20Assistance Commission or any governmental agency of this State.
21 (c) The determination by a circuit court that a licensee is 
22subject to involuntary admission or judicial admission, as 
23provided in the Mental Health and Developmental Disabilities 
24Code, operates as an automatic suspension. The suspension will 
25terminate only upon a finding by a court that the patient is no 
26longer subject to involuntary admission or judicial admission 
 
 
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1and the issuance of an order so finding and discharging the 
2patient, and upon the recommendation of the Board to the 
3Secretary that the licensee be allowed to resume his or her 
4practice as a licensed community association manager.
5 (d) In accordance with subsection (g) of Section 15 of the 
6Department of Professional Regulation Law of the Civil 
7Administrative Code of Illinois (20 ILCS 2105/2105-15), the 
8Department may refuse to issue or renew or may suspend the 
9license of any person who fails to file a return, to pay the 
10tax, penalty, or interest shown in a filed return, or to pay 
11any final assessment of tax, penalty, or interest, as required 
12by any tax Act administered by the Department of Revenue, until 
13such time as the requirements of that tax Act are satisfied.

14 (e) In accordance with subdivision (a)(5) of Section 15 of 
15the Department of Professional Regulation Law of the Civil 
16Administrative Code of Illinois (20 ILCS 2105/2105-15) and in 
17cases where the Department of Healthcare and Family Services 
18(formerly Department of Public Aid) has previously determined 
19that a licensee or a potential licensee is more than 30 days 
20delinquent in the payment of child support and has subsequently 
21certified the delinquency to the Department may refuse to issue 
22or renew or may revoke or suspend that person's license or may 
23take other disciplinary action against that person based solely 
24upon the certification of delinquency made by the Department of 
25Healthcare and Family Services.
26 (f) In enforcing this Section, the Department or Board upon 
 
 
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1a showing of a possible violation may compel a licensee or an 
2individual licensed to practice under this Act, or who has 
3applied for licensure under this Act, to submit to a mental or 
4physical examination, or both, as required by and at the 
5expense of the Department. The Department or Board may order 
6the examining physician to present testimony concerning the 
7mental or physical examination of the licensee or applicant. No 
8information shall be excluded by reason of any common law or 
9statutory privilege relating to communications between the 
10licensee or applicant and the examining physician. The 
11examining physicians shall be specifically designated by the 
12Board or Department. The individual to be examined may have, at 
13his or her own expense, another physician of his or her choice 
14present during all aspects of this examination. Failure of an 
15individual to submit to a mental or physical examination, when 
16directed, shall be grounds for suspension of his or her license 
17or denial of his or her application or renewal until the 
18individual submits to the examination if the Department finds, 
19after notice and hearing, that the refusal to submit to the 
20examination was without reasonable cause.

21 If the Department or Board finds an individual unable to 
22practice because of the reasons set forth in this Section, the 
23Department or Board may require that individual to submit to 
24care, counseling, or treatment by physicians approved or 
25designated by the Department or Board, as a condition, term, or 
26restriction for continued, reinstated, or renewed licensure to 
 
 
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1practice; or, in lieu of care, counseling, or treatment, the 
2Department may file, or the Board may recommend to the 
3Department to file, a complaint to immediately suspend, revoke, 
4deny, or otherwise discipline the license of the individual. An 
5individual whose license was granted, continued, reinstated, 
6renewed, disciplined or supervised subject to such terms, 
7conditions, or restrictions, and who fails to comply with such 
8terms, conditions, or restrictions, shall be referred to the 
9Secretary for a determination as to whether the individual 
10shall have his or her license suspended immediately, pending a 
11hearing by the Department. 
12 In instances in which the Secretary immediately suspends a 
13person's license under this Section, a hearing on that person's 
14license must be convened by the Department within 30 days after 
15the suspension and completed without appreciable delay. The 
16Department and Board shall have the authority to review the 
17subject individual's record of treatment and counseling 
18regarding the impairment to the extent permitted by applicable 
19federal statutes and regulations safeguarding the 
20confidentiality of medical records. 
21 An individual licensed under this Act and affected under 
22this Section shall be afforded an opportunity to demonstrate to 
23the Department or Board that he or she can resume practice in 
24compliance with acceptable and prevailing standards under the 
25provisions of his or her license. 

26(Source: P.A. 96-726, eff. 7-1-10; 97-333, eff. 8-12-11.)

 
 
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1 (225 ILCS 427/87)

2 (Section scheduled to be repealed on January 1, 2020)
3 Sec. 87. Suspension of license for failure to pay 
4restitution.  The Department, without further process or 
5hearing, shall suspend the license or other authorization to 
6practice of any person issued under this Act who has been 
7certified by court order as not having paid restitution to a 
8person under Section 8A-3.5 of the Illinois Public Aid Code or 
9under Section 17-10.5 or 46-1 of the Criminal Code of 1961 or 
10the Criminal Code of 2012. A person whose license or other 
11authorization to practice is suspended under this Section is 
12prohibited from engaging in the practice of community 
13association management practicing until the restitution is 
14made in full. 

15(Source: P.A. 96-726, eff. 7-1-10; 97-1150, eff. 1-25-13.)

16 (225 ILCS 427/92)

17 (Section scheduled to be repealed on January 1, 2020)
18 Sec. 92. Unlicensed practice; violation; civil penalty. 
19 (a) Any person, entity or other business who practices, 
20offers to practice, attempts to practice, or holds himself, 
21herself or itself out to practice as a community association 
22manager or community association management firm management 
23service or provide services as a community association manager 
24or community association management firm to any community 
 
 
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1association in this State without being licensed under this Act 
2shall, in addition to any other penalty provided by law, pay a 
3civil penalty to the Department in an amount not to exceed 
4$10,000 for each offense, as determined by the Department. The 
5civil penalty shall be assessed by the Department after a 
6hearing is held in accordance with the provisions set forth in 
7this Act regarding the provision of a hearing for the 
8discipline of a licensee.
9 (b) The Department may investigate any and all unlicensed 
10activity.
11 (c) The civil penalty shall be paid within 60 days after 
12the effective date of the order imposing the civil penalty. The 
13order shall constitute a judgment and may be filed and 
14execution had thereon in the same manner as any judgment from 
15any court of record.

16(Source: P.A. 96-726, eff. 7-1-10.)

17 (225 ILCS 427/135)

18 (Section scheduled to be repealed on January 1, 2020)
19 Sec. 135. License surrender.  Upon the revocation or 
20suspension of any license authorized under this Act, the 
21licensee shall immediately surrender the license or licenses to 
22the Department. If the licensee fails to do so, the Department 
23has the right to seize the license or licenses. 

24(Source: P.A. 96-726, eff. 7-1-10.)

 
 
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1 (225 ILCS 427/155)

2 (Section scheduled to be repealed on January 1, 2020)
3 Sec. 155. Violations; penalties. 
4 (a) A person who violates any of the following provisions 
5shall be guilty of a Class A misdemeanor; a person who commits 
6a second or subsequent violation of these provisions is guilty 
7of a Class 4 felony:
8  (1) The practice of or attempted practice of or holding 
9 out as available to practice as a community association 
10 manager, or supervising community association manager 
11 without a license.
12  (2) Operation of or attempt to operate a community 
13 association management firm Community Association 
14 Management Agency without a firm an agency license or a 
15 designated supervising community association manager.
16  (3) The obtaining of or the attempt to obtain any 
17 license or authorization issued under this Act by 
18 fraudulent misrepresentation.
19 (b) Whenever a licensee is convicted of a felony related to 
20the violations set forth in this Section, the clerk of the 
21court in any jurisdiction shall promptly report the conviction 
22to the Department and the Department shall immediately revoke 
23any license authorized under this Act as a community 
24association manager held by that licensee. The licensee 
25individual shall not be eligible for licensure under this Act 
26until at least 10 years have elapsed since the time of full 
 
 
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1discharge from any sentence imposed for a felony conviction. If 
2any person in making any oath or affidavit required by this Act 
3swears falsely, the person is guilty of perjury and may be 
4punished accordingly.

5(Source: P.A. 96-726, eff. 7-1-10.)

6 (225 ILCS 427/165)

7 (Section scheduled to be repealed on January 1, 2020)
8 Sec. 165. Home rule.  The regulation and licensing of 
9community association managers, supervising community 
10association managers, and community association management 
11firms Community Association Management Agencies are exclusive 
12powers and functions of the State. A home rule unit may not 
13regulate or license community association managers, 
14supervising community association managers, or community 
15association management firms and Community Association 
16Management Agencies. This Section is a denial and limitation of 
17home rule powers and functions under subsection (h) of Section 
186 of Article VII of the Illinois Constitution. 

19(Source: P.A. 96-726, eff. 7-1-10.)


20 Section 99. Effective date. This Act takes effect July 1, 
212013.".