Sen. Kwame Raoul
Filed: 5/7/2013
 
 


 




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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9 (Section scheduled to be repealed on January 1, 2020)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7 (Section scheduled to be repealed on January 1, 2020)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 community association management services. 
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 a firm. 
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 managing broker or real estate broker 
2salesperson license in good standing issued under the Real 
3Estate License Act 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 not apply to persons holding 
19a real estate managing broker license in good standing issued 
20under the Real Estate License Act of 2000.
21 (c) The examination and initial education requirement of 
22items (3) and (4) of subsection (a) of this Section shall not 
23apply to any person who, within 6 months after the effective 
24date of the requirement for licensure, as set forth in Section 
25170 of this Act, applies for a license by providing 
26satisfactory evidence to the Department of qualifying 
 
 
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1experience or education, as may be set forth by rule, including 
2without limitation, evidence that he or she has practiced 
3community association management for a period of 7 years.
4 (d) Applicants have 3 years after the date of application 
5to complete the application process. If the process has not 
6been completed within the 3 years, the application shall be 
7denied, the fee shall be forfeited, and the applicant must 
8reapply and meet the requirements in effect at the time of 
9re-application.

10 (225 ILCS 427/50)

11 (Section scheduled to be repealed on January 1, 2020)
12 Sec. 50. Community association management firm Association 
13Management Agency.

14 (a) No firm, corporation, partnership, limited liability 
15company, or other legal entity shall provide or offer to 
16provide community association management services, unless it 
17has applied in writing on the prescribed forms and has paid the 
18required nonrefundable fees and provided evidence to the 
19Department that the firm has designated a licensed supervising 
20community association manager to supervise and manage the firm. 
21A designated supervising community association manager shall 
22be a continuing requirement of firm licensure. No supervising 
23community association manager may be the supervising community 
24association manager for more than one firm. such services are 
25provided through:
 
 
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1  (1) an employee or independent contractor who is 
2 licensed under this Act; 
3  (2) a natural person who is acting under the direct 
4 supervision of an employee of such firm, corporation, 
5 limited liability company, or other legal entity that is 
6 licensed under this Act; or 
7  (3) a natural person who is legally authorized to 
8 provide such services.
9 (b) Any firm, corporation, partnership, limited liability 
10company, or other legal entity that is providing, or offering 
11to provide, community association management services and is 
12not in compliance with Section 50 and other the provisions of 
13this Act shall be subject to the fines, injunctions, cease and 
14desist provisions, and penalties provided for in Sections 90, 
1592, and 155 of this Act.
16 (c) No community association manager may be the 
17licensee-in-charge for more than one firm, corporation, 
18limited liability company, or other legal entity.


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

20 (225 ILCS 427/55)

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


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

13 (225 ILCS 427/60)

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

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

20 (225 ILCS 427/65)

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


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

8 (225 ILCS 427/70)

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

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

7 (225 ILCS 427/75)

8 (Section scheduled to be repealed on January 1, 2020)
9 Sec. 75. Endorsement.  The Department may issue a license 
10as a licensed community association manager or supervising 
11community association manager license, without the required 
12examination, to an applicant licensed under the laws of another 
13state if the requirements for licensure in that state are, on 
14the date of licensure, substantially equal to the requirements 
15of this Act or to a person who, at the time of his or her 
16application for licensure, possessed individual qualifications 
17that were substantially equivalent to the requirements then in 
18force in this State. An applicant under this Section shall pay 
19all of the required fees. 
20 Applicants have 3 years from the date of application to 
21complete the application process. If the process has not been 
22completed within the 3 years, the application shall be denied, 
23the fee shall be forfeited, and the applicant must reapply and 
24meet the requirements in effect at the time of reapplication. 

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

 
 
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1 (225 ILCS 427/85)

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

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

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

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

3 (225 ILCS 427/87)

4 (Section scheduled to be repealed on January 1, 2020)
5 Sec. 87. Suspension of license for failure to pay 
6restitution.  The Department, without further process or 
7hearing, shall suspend the license or other authorization to 
8practice of any person issued under this Act who has been 
9certified by court order as not having paid restitution to a 
10person under Section 8A-3.5 of the Illinois Public Aid Code or 
11under Section 17-10.5 or 46-1 of the Criminal Code of 1961 or 
12the Criminal Code of 2012. A person whose license or other 
13authorization to practice is suspended under this Section is 
14prohibited from engaging in the practice of community 
15association management practicing until the restitution is 
16made in full. 

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

18 (225 ILCS 427/92)

19 (Section scheduled to be repealed on January 1, 2020)
20 Sec. 92. Unlicensed practice; violation; civil penalty. 
21 (a) Any person, entity or other business who practices, 
22offers to practice, attempts to practice, or holds himself, 
23herself or itself out to practice as a community association 
24manager or community association management firm management 
 
 
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1service or provide services as a community association manager 
2or community association management firm to any community 
3association in this State without being licensed under this Act 
4shall, in addition to any other penalty provided by law, pay a 
5civil penalty to the Department in an amount not to exceed 
6$10,000 for each offense, as determined by the Department. The 
7civil penalty shall be assessed by the Department after a 
8hearing is held in accordance with the provisions set forth in 
9this Act regarding the provision of a hearing for the 
10discipline of a licensee.
11 (b) The Department may investigate any and all unlicensed 
12activity.
13 (c) The civil penalty shall be paid within 60 days after 
14the effective date of the order imposing the civil penalty. The 
15order shall constitute a judgment and may be filed and 
16execution had thereon in the same manner as any judgment from 
17any court of record.

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

19 (225 ILCS 427/135)

20 (Section scheduled to be repealed on January 1, 2020)
21 Sec. 135. License surrender.  Upon the revocation or 
22suspension of any license authorized under this Act, the 
23licensee shall immediately surrender the license or licenses to 
24the Department. If the licensee fails to do so, the Department 
25has the right to seize the license or licenses. 

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

2 (225 ILCS 427/155)

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

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

8 (225 ILCS 427/165)

9 (Section scheduled to be repealed on January 1, 2020)
10 Sec. 165. Home rule.  The regulation and licensing of 
11community association managers, supervising community 
12association managers, and community association management 
13firms Community Association Management Agencies are exclusive 
14powers and functions of the State. A home rule unit may not 
15regulate or license community association managers, 
16supervising community association managers, or community 
17association management firms and Community Association 
18Management Agencies. This Section is a denial and limitation of 
19home rule powers and functions under subsection (h) of Section 
206 of Article VII of the Illinois Constitution. 

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


22 Section 99. Effective date. This Act takes effect January 
231, 2014.".