Public Act 098-0365

HB0595 Enrolled LRB098 03417 MGM 33432 b

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 5. The Community Association Manager Licensing and

Disciplinary Act is amended by changing Sections 5, 10, 15, 20,

25, 27, 32, 40, 50, 55, 60, 65, 70, 75, 85, 87, 92, 135, 155,

and 165 and by adding Section 42 as follows:

(225 ILCS 427/5)

(Section scheduled to be repealed on January 1, 2020)

Sec. 5. Legislative intent. It is the intent of the General

Assembly that this Act provide for the licensing and regulation

of managers of community association managers and community

association management firms associations, ensure that those

who hold themselves out as possessing professional

qualifications to engage in the business provision of community

association management services are, in fact, qualified to

render management services of a professional nature, and

provide for the maintenance of high standards of professional

conduct by those licensed to provide as community association

management services managers.

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

(225 ILCS 427/10)

(Section scheduled to be repealed on January 1, 2020)

Sec. 10. Definitions. As used in this Act:

"Address of record" means the designated address recorded

by the Department in the applicant's or licensee's application

file or license file maintained by the Department's licensure

maintenance unit. It is the duty of the applicant or licensee

to inform the Department of any change of address, and such

changes must be made either through the Department's website or

by contacting the Department's licensure maintenance unit.

"Advertise" means, but is not limited to, issuing or

causing to be distributed any card, sign or device to any

person; or causing, permitting or allowing any sign or marking

on or in any building, structure, newspaper, magazine or

directory, or on radio or television; or advertising by any

other means designed to secure public attention.

"Board" means the Illinois Community Association Manager

Licensing and Disciplinary Board.

"Community association" means an association in which

membership is a condition of ownership or shareholder interest

of a unit in a condominium, cooperative, townhouse, villa, or

other residential unit which is part of a residential

development plan and that is authorized to impose an

assessment, rents, or other costs that may become a lien on the

unit or lot.

"Community association funds" means any assessments, fees,

fines, or other funds collected by the community association

manager from the community association, or its members, other

than the compensation paid to the community association manager

for performance of community association management services.

"Community association management firm" means a company,

corporation, limited liability company, or other entity that

engages in community association management services.

"Community association management services" means those

services listed in the definition of community association

manager in this Section.

"Community Association Management Agency" means a company,

firm, corporation, limited liability company, or other entity

that engages in the community association management business

and employs, in addition to the licensee-in-charge, at least

one other person in conducting such business.

"Community association manager" means an individual who

administers for remuneration the financial, administrative,

maintenance, or other duties for the community association,

including the following services: (A) collecting, controlling

or disbursing funds of the community association or having the

authority to do so; (B) preparing budgets or other financial

documents for the community association; (C) assisting in the

conduct of community association meetings; (D) maintaining

association records; and (E) administrating association

contracts, as stated in the declaration, bylaws, proprietary

lease, declaration of covenants, or other governing document of

the community association. "Community association manager"

does not mean support staff, including, but not limited to

bookkeepers, administrative assistants, secretaries, property

inspectors, or customer service representatives.

"Department" means the Department of Financial and

Professional Regulation.

"License" means the license issued to a person,

corporation, partnership, limited liability company, or other

legal entity to act as a community association manager under

this Act to provide community association management services

or other authority to practice issued under this Act.

"Person" means any individual, firm, corporation,

partnership, limited liability company, or other legal entity

organization, or body politic.

"Licensee-in-charge" means a person licensed as a

community association manager who has been designated by a

Community Association Management Agency as the full-time

management employee or owner who assumes sole responsibility

for maintaining all records required by this Act and who

assumes sole responsibility for assuring the licensed agency's

compliance with its responsibilities as stated in the Act.

"Secretary" means the Secretary of Financial and

Professional Regulation.

"Supervising community association manager" means an

individual licensed as a community association manager who

manages and supervises a firm.

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

(225 ILCS 427/15)

(Section scheduled to be repealed on January 1, 2020)

Sec. 15. License required. It Beginning 12 months after the

adoption of rules providing for the licensure of a community

association manager in Illinois under this Act, it shall be

unlawful for any person, corporation, partnership, limited

liability company, or other entity, or other business to

provide community association management services, or provide

services as a community association manager, or hold himself,

herself, or itself out as a community association manager or

community association management firm to any community

association in this State, unless he, or she, or it holds a

current and valid license issued licensed by the Department or

is otherwise exempt from licensure under this Act.

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

(225 ILCS 427/20)

(Section scheduled to be repealed on January 1, 2020)

Sec. 20. Exemptions.

(a) The requirement for holding a license under this This

Act shall does not apply to any of the following:

(1) Any director, officer, or member of a community

association providing one or more of the services of a

community association manager to a community association

without compensation for such services to the association.

(2) Any person, corporation, partnership, or limited

liability company providing one or more of the services of

a community association manager to a community association

of 10 units or less.

(3) A licensed attorney acting solely as an incident to

the practice of law.

(4) A person acting as a receiver, trustee in

bankruptcy, administrator, executor, or guardian acting

under a court order or under the authority of a will or of

a trust instrument.

(5) A person licensed in this State under any other Act

from engaging the practice for which he or she is licensed.

(b) A licensed community association manager may not

perform or engage in any activities for which a real estate

managing broker or real estate broker's salesperson's license

is required under the Real Estate License Act of 2000, unless

he or she also possesses a current and valid license under the

Real Estate License Act of 2000 and is providing those services

as provided for in the Real Estate License Act of 2000 and the

applicable rules.

(c) A person may temporarily act as, or provide services

as, a community association manager without being licensed

under this Act if the person (i) is a community association

manager regulated under the laws of another state or territory

of the United States or another country and (ii) has applied in

writing to the Department, on forms prepared and furnished by

the Department, for licensure under this Act. This temporary

right to act as a community association manager shall expire ,

but only until the expiration of 6 months after the filing of

his or her written application to the Department; , his or upon

the her withdrawal of the application for licensure under this

Act; or upon delivery of , he or she has received a notice of

intent to deny the application from the Department; , or upon

the denial of the application by the Department, whichever

occurs first.

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

(225 ILCS 427/25)

(Section scheduled to be repealed on January 1, 2020)

Sec. 25. Community Association Manager Licensing and

Disciplinary Board.

(a) There is hereby created the Community Association

Manager Licensing and Disciplinary Board, which shall consist

of 7 members appointed by the Secretary. All members must be

residents of the State and must have resided in the State for

at least 5 years immediately preceding the date of appointment.

Five members of the Board must be licensees under this Act, at

least two members of which shall be supervising community

association managers except that, initially, these members

must meet the qualifications for licensure and have obtained a

license within 6 months after the effective date of this Act.

Two members of the Board shall be owners of, or hold a

shareholder's interest in, shareholders of a unit in a

community association at the time of appointment who are not

licensees under this Act and have no direct affiliation or work

experience with the community association's community

association manager. This Board shall act in an advisory

capacity to the Department.

(b) Board members shall serve for terms of 5 years, except

that, initially, 4 members shall serve for 5 years and 3

members shall serve for 4 years. All members shall serve until

his or her successor is appointed and qualified. All vacancies

shall be filled in like manner for the unexpired term. No

member shall serve for more than 2 successive terms. The

Secretary shall remove from the Board any member whose license

has become void or has been revoked or suspended and may remove

any member of the Board for neglect of duty, misconduct, or

incompetence. A member who is subject to formal disciplinary

proceedings shall disqualify himself or herself from all Board

business until the charge is resolved. A member also shall

disqualify himself or herself from any matter on which the

member cannot act objectively.

(c) Four Board members shall constitute a quorum. A quorum

is required for all Board decisions.

(d) The Board shall may elect annually a chairperson and

vice chairperson.

(e) Each member shall receive reimbursement as set by the

Governor's Travel Control Board for expenses incurred in

carrying out the duties as a Board member. The Board shall be

compensated as determined by the Secretary.

(f) The Board may recommend policies, procedures, and rules

relevant to the administration and enforcement of this Act.

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

(225 ILCS 427/27)

(Section scheduled to be repealed on January 1, 2020)

Sec. 27. Immunity from Liability. Any member of the Board,

any attorney providing advice to the Board or Department, any

person acting as a consultant to the Board or Department, and

any witness testifying in a proceeding authorized under this

Act, excluding the party making the complaint, shall be immune

from liability in any civil action brought against him or her

for acts occurring while acting in his or her capacity as a

Board member, attorney, consultant, or witness, respectively,

unless the conduct that gave rise to the action was willful or

wanton misconduct.

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

(225 ILCS 427/32)

(Section scheduled to be repealed on January 1, 2020)

Sec. 32. Social Security Number or Federal Tax

Identification Number on license application. In addition to

any other information required to be contained in the

application, every application for an original license under

this Act shall include the applicant's Social Security Number

or Federal Tax Identification Number, which shall be retained

in the Department's agency's records pertaining to the license.

As soon as practical, the Department shall assign a customer's

identification number to each applicant for a license.

Every application for a renewal or restored license shall

require the applicant's customer identification number.

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

(225 ILCS 427/40)

(Section scheduled to be repealed on January 1, 2020)

Sec. 40. Qualifications for licensure as a community

association manager.

(a) No person shall be qualified for licensure as a

community association manager under this Act, unless he or she

has applied in writing on the prescribed forms and has paid the

required, nonrefundable fees and meets all of the following

qualifications:

(1) He or she is at least 21 years of age.

(2) He or she provides satisfactory evidence of having

completed at least 20 classroom hours in community

association management courses approved by the Board.

(3) He or she has passed an examination authorized by

the Department.

(4) He or she has not committed an act or acts, in this

or any other jurisdiction, that would be a violation of

this Act.

(5) He or she is of good moral character. In

determining moral character under this Section, the

Department may take into consideration whether the

applicant has engaged in conduct or activities that would

constitute grounds for discipline under this Act. Good

moral character is a continuing requirement of licensure.

Conviction of crimes may be used in determining moral

character, but shall not constitute an absolute bar to

licensure.

(6) He or she has not been declared by any court of

competent jurisdiction to be incompetent by reason of

mental or physical defect or disease, unless a court has

subsequently declared him or her to be competent.

(7) He or she complies with any additional

qualifications for licensure as determined by rule of the

Department.

(b) The education requirement set forth in item (2) of

subsection (a) of this Section shall not apply to persons

holding a real estate managing broker or real estate broker

salesperson license in good standing issued under the Real

Estate License Act of 2000.

(c) The examination and initial education requirement of

items (2) and (3) of subsection (a) of this Section shall not

apply to any person who within 6 months from the effective date

of the requirement for licensure, as set forth in Section 170

of this Act, applies for a license by providing satisfactory

evidence to the Department of qualifying experience or

education, as may be set forth by rule, including without

limitation evidence that he or she has (i) practiced community

association management for a period of 5 years or (ii) achieved

a designation awarded by recognized community association

management organizations in the State.

(d) Applicants have 3 years from the date of application to

complete the application process. If the process has not been

completed within the 3 years, the application shall be denied,

the fee shall be forfeited, and the applicant must reapply and

meet the requirements in effect at the time of re-application.

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

(225 ILCS 427/42 new)

(Section scheduled to be repealed on January 1, 2020)

Sec. 42. Qualifications for licensure as a supervising

community association manager.

(a) No person shall be qualified for licensure as a

supervising community association manager under this Act

unless he or she has applied in writing on the prescribed

forms, has paid the required nonrefundable fees, and meets all

of the following qualifications:

(1) He or she is at least 21 years of age.

(2) He or she has been licensed at least one out of the

last 2 preceding years as a community association manager.

(3) He or she provides satisfactory evidence of having

completed at least 30 classroom hours in community

association management courses approved by the Board, 20

hours of which shall be those pre-license hours required to

obtain a community association manager license, and 10

additional hours completed the year immediately preceding

the filing of the application for a supervising community

association manager license, which shall focus on

community association administration, management, and

supervision.

(4) He or she has passed an examination authorized by

the Department.

(5) He or she has not committed an act or acts, in this

or any other jurisdiction, that would be a violation of

this Act.

(6) He or she is of good moral character. In

determining moral character under this Section, the

Department may take into consideration whether the

applicant has engaged in conduct or activities that would

constitute grounds for discipline under this Act. Good

moral character is a continuing requirement of licensure.

Conviction of crimes may be used in determining moral

character, but shall not constitute an absolute bar to

licensure.

(7) He or she has not been declared by any court of

competent jurisdiction to be incompetent by reason of

mental or physical defect or disease, unless a court has

subsequently declared him or her to be competent.

(8) He or she complies with any additional

qualifications for licensure as determined by rule of the

Department.

(b) The initial 20-hour education requirement set forth in

item (3) of subsection (a) of this Section shall not apply to

persons holding a real estate managing broker or real estate

broker license in good standing issued under the Real Estate

License Act of 2000. The 10 additional hours required for

licensure under this Section shall not apply to persons holding

a real estate managing broker license in good standing issued

under the Real Estate License Act of 2000.

(c) The examination and initial education requirement of

items (3) and (4) of subsection (a) of this Section shall not

apply to any person who, within 6 months after the effective

date of the requirement for licensure, as set forth in Section

170 of this Act, applies for a license by providing

satisfactory evidence to the Department of qualifying

experience or education, as may be set forth by rule, including

without limitation, evidence that he or she has practiced

community association management for a period of 7 years.

(d) Applicants have 3 years after the date of application

to complete the application process. If the process has not

been completed within the 3 years, the application shall be

denied, the fee shall be forfeited, and the applicant must

reapply and meet the requirements in effect at the time of

re-application.

(225 ILCS 427/50)

(Section scheduled to be repealed on January 1, 2020)

Sec. 50. Community association management firm Association

Management Agency.

(a) No firm, corporation, partnership, limited liability

company, or other legal entity shall provide or offer to

provide community association management services, unless it

has applied in writing on the prescribed forms and has paid the

required nonrefundable fees and provided evidence to the

Department that the firm has designated a licensed supervising

community association manager to supervise and manage the firm.

A designated supervising community association manager shall

be a continuing requirement of firm licensure. No supervising

community association manager may be the supervising community

association manager for more than one firm. such services are

provided through:

(1) an employee or independent contractor who is

licensed under this Act;

(2) a natural person who is acting under the direct

supervision of an employee of such firm, corporation,

limited liability company, or other legal entity that is

licensed under this Act; or

(3) a natural person who is legally authorized to

provide such services.

(b) Any firm, corporation, partnership, limited liability

company, or other legal entity that is providing, or offering

to provide, community association management services and is

not in compliance with Section 50 and other the provisions of

this Act shall be subject to the fines, injunctions, cease and

desist provisions, and penalties provided for in Sections 90,

92, and 155 of this Act.

(c) No community association manager may be the

licensee-in-charge for more than one firm, corporation,

limited liability company, or other legal entity.

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

(225 ILCS 427/55)

(Section scheduled to be repealed on January 1, 2020)

Sec. 55. Fidelity insurance; segregation of accounts.

(a) The supervising community association manager or the

community association management firm A community association

manager or the Community Association Management Agency with

which he or she is employed shall not have access to and

disburse community association funds of a community

association unless each of the following conditions occur:

(1) There is fidelity insurance in place to insure

against loss for theft of community association funds.

(2) The fidelity insurance is not less than all moneys

under the control of the supervising community association

manager community association manager or the employing

community association management firm Community

Association Management Agency for the association.

(3) The fidelity insurance covers the community

association manager, supervising community association

manager, and all partners, officers, and employees of the

community association management firm Community

Association Management Agency with whom he or she is

employed during the term of the insurance coverage, which

shall be at least for the same term as the service

agreement between the community association management

firm or supervising community association manager as well

as the community association officers, directors, and

employees.

(4) The insurance company issuing the fidelity

insurance may not cancel or refuse to renew the bond

without giving at least 10 days' prior written notice.

(5) Unless an agreement between the community

association and the supervising community association

manager or the community association management firm

Community Association Management Agency provides to the

contrary, a community association may secure and pay the

Association secures and pays for the fidelity insurance

required by this Section. The supervising community

association manager or the community association

management firm community association manager and the

Community Association Management Agency must be named as

additional insured parties on the community association

policy.

(b) A community association management firm manager or

Community Association Management Agency that provides

community association management services for more than one

community association shall maintain separate, segregated

accounts for each community association or, with the consent of

the community association, combine the accounts of one or more

community associations, but in that event, separately account

for the funds of each community association. The funds shall

not, in any event, be commingled with the supervising community

association manager's or community association management

firm's Community Association Management Agency's funds. The

maintenance of such accounts shall be custodial, and such

accounts shall be in the name of the respective community

association or community association manager or Community

Association Management Agency as the agent for the association.

(c) The supervising community association manager or

community association management firm Community Association

Management Agency shall obtain the appropriate general

liability and errors and omissions insurance, as determined by

the Department, to cover any losses or claims against the

supervising community association manager or the community

association management firm community association clients.

(d) The Department shall have authority to promulgate

additional rules regarding insurance, fidelity insurance and

all accounts maintained and to be maintained by a supervising

community association manager or community association

management firm Community Association Management Agency.

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

(225 ILCS 427/60)

(Section scheduled to be repealed on January 1, 2020)

Sec. 60. Licenses; renewals; restoration; person in

military service.

(a) The expiration date and renewal period for each license

issued under this Act shall be set by rule. The Department may

promulgate rules requiring continuing education and set all

necessary requirements for such, including but not limited to

fees, approved coursework, number of hours, and waivers of

continuing education.

(b) Any licensee who has permitted his, or her, or its

license to expire may have the license restored by making

application to the Department and filing proof acceptable to

the Department of fitness to have his, or her, or its license

restored, by which may include sworn evidence certifying to

active practice in another jurisdiction satisfactory to the

Department, complying with any continuing education

requirements, and paying the required restoration fee.

(c) If the person has not maintained an active practice in

another jurisdiction satisfactory to the Department, the

Department shall determine, by an evaluation program

established by rule, the person's fitness to resume active

status and may require the person to complete a period of

evaluated clinical experience and successful completion of a

practical examination. However, any person whose license

expired while (i) in federal service on active duty with the

Armed Forces of the United States or called into service or

training with the State Militia or (ii) in training or

education under the supervision of the United States

preliminary to induction into the military service may have his

or her license renewed or restored without paying any lapsed

renewal fees if, within 2 years after honorable termination of

the service, training or education, except under condition

other than honorable, he or she furnishes the Department with

satisfactory evidence to the effect that he or she has been so

engaged and that the service, training, or education has been

so terminated.

(d) A community association manager, community association

management firm or supervising community association manager

who notifies the Department, in writing on forms prescribed by

the Department, may place his, or her, or its license on

inactive status and shall be excused from the payment of

renewal fees until the person notifies the Department in

writing of the intention to resume active practice.

(e) A community association manager, community association

management firm, or supervising community association manager

requesting his, or her, or its license be changed from inactive

to active status shall be required to pay the current renewal

fee and shall also demonstrate compliance with the continuing

education requirements.

(f) Any licensee with a license nonrenewed or on inactive

license status shall not provide community association

management services or provide services as community

association manager as set forth in this Act.

(g) Any person violating subsection (f) of this Section

shall be considered to be practicing without a license and will

be subject to the disciplinary provisions of this Act.

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

(225 ILCS 427/65)

(Section scheduled to be repealed on January 1, 2020)

Sec. 65. Fees; Community Association Manager Licensing and

Disciplinary Fund.

(a) The fees for the administration and enforcement of this

Act, including, but not limited to, initial licensure, renewal,

and restoration, shall be set by rule of the Department. The

fees shall be nonrefundable.

(b) In addition to the application fee, applicants for the

examination are required to pay, either to the Department or

the designated testing service, a fee covering the cost of

determining an applicant's eligibility and providing the

examination. Failure to appear for the examination on the

scheduled date, at the time and place specified, after the

applicant's application and fee for examination have been

received and acknowledged by the Department or the designated

testing service, shall result in the forfeiture of the fee.

(c) To support the costs of administering this Act, all

community associations that (i) are subject to this Act by

having 10 or more units, (ii) retain an individual to provide

services as a community association manager for compensation,

(iii) are not master associations under Section 18.5 of the

Condominium Property Act or the Common Interest Community

Association Act, and (iv) are registered in this State as

not-for-profit corporations shall pay to the Department an

annual fee of $50 plus an additional $1 per unit, but shall not

exceed an annual fee of $1,000 for any community association.

The Department may establish forms and promulgate any rules for

the effective collection of such fees under this subsection

(c).

Any not-for-profit corporation in this State that fails to

pay in full to the Department all fees owed under this

subsection (c) shall be subject to the penalties and procedures

provided for under Section 92 of this Act.

(c) (d) All fees, fines, penalties, or other monies

received or collected pursuant to this Act shall be deposited

in the Community Association Manager Licensing and

Disciplinary Fund.

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

(225 ILCS 427/70)

(Section scheduled to be repealed on January 1, 2020)

Sec. 70. Penalty for insufficient funds; payments. Any

person who delivers a check or other payment to the Department

that is returned to the Department unpaid by the financial

institution upon which it is drawn shall pay to the Department,

in addition to the amount already owed to the Department, a

fine of $50. The Department shall notify the person that

payment of fees and fines shall be paid to the Department by

certified check or money order within 30 calendar days after

notification. If, after the expiration of 30 days from the date

of the notification, the person has failed to submit the

necessary remittance, the Department shall automatically

terminate the license or deny the application, without hearing.

If, after termination or denial, the person seeks a license,

he, or she, or it shall apply to the Department for restoration

or issuance of the license and pay all fees and fines due to

the Department. The Department may establish a fee for the

processing of an application for restoration of a license to

pay all expenses of processing this application. The Secretary

may waive the fines due under this Section in individual cases

where the Secretary finds that the fines would be unreasonable

or unnecessarily burdensome.

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

(225 ILCS 427/75)

(Section scheduled to be repealed on January 1, 2020)

Sec. 75. Endorsement. The Department may issue a license

as a licensed community association manager or supervising

community association manager license, without the required

examination, to an applicant licensed under the laws of another

state if the requirements for licensure in that state are, on

the date of licensure, substantially equal to the requirements

of this Act or to a person who, at the time of his or her

application for licensure, possessed individual qualifications

that were substantially equivalent to the requirements then in

force in this State. An applicant under this Section shall pay

all of the required fees.

Applicants have 3 years from the date of application to

complete the application process. If the process has not been

completed within the 3 years, the application shall be denied,

the fee shall be forfeited, and the applicant must reapply and

meet the requirements in effect at the time of reapplication.

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

(225 ILCS 427/85)

(Section scheduled to be repealed on January 1, 2020)

Sec. 85. Grounds for discipline; refusal, revocation, or

suspension.

(a) The Department may refuse to issue or renew a license,

or may revoke a license, or may suspend, place on probation,

reprimand, suspend, or revoke any license fine, or take any

other disciplinary or non-disciplinary action as the

Department may deem proper and impose a fine , including fines

not to exceed $10,000 for each violation upon , with regard to

any licensee or applicant under this Act or any person or

entity who holds himself, herself, or itself out as an

applicant or licensee for any one or combination of the

following causes:

(1) Material misstatement in furnishing information to

the Department.

(2) Violations of this Act or its rules.

(3) Conviction of or entry of a plea of guilty or plea

of nolo contendere to any crime that is a felony or a

misdemeanor under the laws of the United States, or any

state, or any other jurisdiction territory thereof or entry

of an administrative sanction by a government agency in

this State or any other jurisdiction. Action taken under

this paragraph (3) for a misdemeanor or an administrative

sanction is limited to a misdemeanor or administrative

sanction that has as of which an essential element is

dishonesty or fraud, that involves larceny, embezzlement,

or obtaining money, property, or credit by false pretenses

or by means of a confidence game, or that is directly

related to the practice of the profession.

(4) Making any misrepresentation for the purpose of

obtaining a license or violating any provision of this Act

or its rules.

(5) Professional incompetence.

(6) Gross negligence.

(7) Aiding or assisting another person in violating any

provision of this Act or its rules.

(8) Failing, within 30 days, to provide information in

response to a request made by the Department.

(9) Engaging in dishonorable, unethical, or

unprofessional conduct of a character likely to deceive,

defraud or harm the public as defined by the rules of the

Department, or violating the rules of professional conduct

adopted by the Department.

(10) Habitual or excessive use or addiction to alcohol,

narcotics, stimulants, or any other chemical agent or drug

that results in the inability to practice with reasonable

judgment, skill, or safety.

(11) Having been disciplined by another state, the

District of Columbia, a territory, a foreign nation, or a

governmental agency authorized to impose discipline

Discipline by another state, territory, or country if at

least one of the grounds for the discipline is the same or

substantially equivalent of one of the grounds for which a

licensee may be disciplined under this Act. A certified

copy of the record of the action by the other state or

jurisdiction shall be prima facie evidence thereof to those

set forth in this Act.

(12) Directly or indirectly giving to or receiving from

any person, firm, corporation, partnership or association

any fee, commission, rebate, or other form of compensation

for any professional services not actually or personally

rendered.

(13) A finding by the Department that the licensee,

after having his, or her, or its license placed on

probationary status, has violated the terms of probation.

(14) Willfully making or filing false records or

reports relating to a licensee's practice, including but

not limited to false records filed with any State or

federal agencies or departments.

(15) Being named as a perpetrator in an indicated

report by the Department of Children and Family Services

under the Abused and Neglected Child Reporting Act and upon

proof by clear and convincing evidence that the licensee

has caused a child to be an abused child or neglected child

as defined in the Abused and Neglected Child Reporting Act.

(16) Physical illness or mental illness or impairment,

including, but not limited to, deterioration through the

aging process or loss of motor skill that results in the

inability to practice the profession with reasonable

judgment, skill, or safety.

(17) Solicitation of professional services by using

false or misleading advertising.

(18) A finding that licensure has been applied for or

obtained by fraudulent means.

(19) Practicing or attempting to practice under a name

other than the full name as shown on the license or any

other legally authorized name.

(20) Gross overcharging for professional services

including, but not limited to, (i) collection of fees or

moneys for services that are not rendered; and (ii)

charging for services that are not in accordance with the

contract between the licensee and the community

association.

(21) Improper commingling of personal and client funds

in violation of this Act or any rules promulgated thereto.

(22) Failing to account for or remit any moneys or

documents coming into the licensee's possession that

belong to another person or entity.

(23) Giving differential treatment to a person that is

to that person's detriment because of race, color, creed,

sex, religion, or national origin.

(24) Performing and charging for services without

reasonable authorization to do so from the person or entity

for whom service is being provided.

(25) Failing to make available to the Department, upon

request, any books, records, or forms required by this Act.

(26) Purporting to be a supervising community

association manager licensee-in-charge of a firm an agency

without active participation in the firm agency.

(27) Failing to make available to the Department at the

time of the request any indicia of licensure or

registration issued under this Act.

(28) Failing to maintain and deposit funds belonging to

a community association in accordance with subsection (b)

of Section 55 of this Act.

(29) Violating the terms of a disciplinary order issued

by the Department.

(b) In accordance with subdivision (a)(5) of Section 15 of

the Department of Professional Regulation Law of the Civil

Administrative Code of Illinois (20 ILCS 2105/2105-15), the

Department shall deny a license or renewal authorized by this

Act to a person who has defaulted on an educational loan or

scholarship provided or guaranteed by the Illinois Student

Assistance Commission or any governmental agency of this State.

(c) The determination by a circuit court that a licensee is

subject to involuntary admission or judicial admission, as

provided in the Mental Health and Developmental Disabilities

Code, operates as an automatic suspension. The suspension will

terminate only upon a finding by a court that the patient is no

longer subject to involuntary admission or judicial admission

and the issuance of an order so finding and discharging the

patient, and upon the recommendation of the Board to the

Secretary that the licensee be allowed to resume his or her

practice as a licensed community association manager.

(d) In accordance with subsection (g) of Section 15 of the

Department of Professional Regulation Law of the Civil

Administrative Code of Illinois (20 ILCS 2105/2105-15), the

Department may refuse to issue or renew or may suspend the

license of any person who fails to file a return, to pay the

tax, penalty, or interest shown in a filed return, or to pay

any final assessment of tax, penalty, or interest, as required

by any tax Act administered by the Department of Revenue, until

such time as the requirements of that tax Act are satisfied.

(e) In accordance with subdivision (a)(5) of Section 15 of

the Department of Professional Regulation Law of the Civil

Administrative Code of Illinois (20 ILCS 2105/2105-15) and in

cases where the Department of Healthcare and Family Services

(formerly Department of Public Aid) has previously determined

that a licensee or a potential licensee is more than 30 days

delinquent in the payment of child support and has subsequently

certified the delinquency to the Department may refuse to issue

or renew or may revoke or suspend that person's license or may

take other disciplinary action against that person based solely

upon the certification of delinquency made by the Department of

Healthcare and Family Services.

(f) In enforcing this Section, the Department or Board upon

a showing of a possible violation may compel a licensee or an

individual licensed to practice under this Act, or who has

applied for licensure under this Act, to submit to a mental or

physical examination, or both, as required by and at the

expense of the Department. The Department or Board may order

the examining physician to present testimony concerning the

mental or physical examination of the licensee or applicant. No

information shall be excluded by reason of any common law or

statutory privilege relating to communications between the

licensee or applicant and the examining physician. The

examining physicians shall be specifically designated by the

Board or Department. The individual to be examined may have, at

his or her own expense, another physician of his or her choice

present during all aspects of this examination. Failure of an

individual to submit to a mental or physical examination, when

directed, shall be grounds for suspension of his or her license

or denial of his or her application or renewal until the

individual submits to the examination if the Department finds,

after notice and hearing, that the refusal to submit to the

examination was without reasonable cause.

If the Department or Board finds an individual unable to

practice because of the reasons set forth in this Section, the

Department or Board may require that individual to submit to

care, counseling, or treatment by physicians approved or

designated by the Department or Board, as a condition, term, or

restriction for continued, reinstated, or renewed licensure to

practice; or, in lieu of care, counseling, or treatment, the

Department may file, or the Board may recommend to the

Department to file, a complaint to immediately suspend, revoke,

deny, or otherwise discipline the license of the individual. An

individual whose license was granted, continued, reinstated,

renewed, disciplined or supervised subject to such terms,

conditions, or restrictions, and who fails to comply with such

terms, conditions, or restrictions, shall be referred to the

Secretary for a determination as to whether the individual

shall have his or her license suspended immediately, pending a

hearing by the Department.

In instances in which the Secretary immediately suspends a

person's license under this Section, a hearing on that person's

license must be convened by the Department within 30 days after

the suspension and completed without appreciable delay. The

Department and Board shall have the authority to review the

subject individual's record of treatment and counseling

regarding the impairment to the extent permitted by applicable

federal statutes and regulations safeguarding the

confidentiality of medical records.

An individual licensed under this Act and affected under

this Section shall be afforded an opportunity to demonstrate to

the Department or Board that he or she can resume practice in

compliance with acceptable and prevailing standards under the

provisions of his or her license.

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

(225 ILCS 427/87)

(Section scheduled to be repealed on January 1, 2020)

Sec. 87. Suspension of license for failure to pay

restitution. The Department, without further process or

hearing, shall suspend the license or other authorization to

practice of any person issued under this Act who has been

certified by court order as not having paid restitution to a

person under Section 8A-3.5 of the Illinois Public Aid Code or

under Section 17-10.5 or 46-1 of the Criminal Code of 1961 or

the Criminal Code of 2012. A person whose license or other

authorization to practice is suspended under this Section is

prohibited from engaging in the practice of community

association management practicing until the restitution is

made in full.

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

(225 ILCS 427/92)

(Section scheduled to be repealed on January 1, 2020)

Sec. 92. Unlicensed practice; violation; civil penalty.

(a) Any person, entity or other business who practices,

offers to practice, attempts to practice, or holds himself,

herself or itself out to practice as a community association

manager or community association management firm management

service or provide services as a community association manager

or community association management firm to any community

association in this State without being licensed under this Act

shall, in addition to any other penalty provided by law, pay a

civil penalty to the Department in an amount not to exceed

$10,000 for each offense, as determined by the Department. The

civil penalty shall be assessed by the Department after a

hearing is held in accordance with the provisions set forth in

this Act regarding the provision of a hearing for the

discipline of a licensee.

(b) The Department may investigate any and all unlicensed

activity.

(c) The civil penalty shall be paid within 60 days after

the effective date of the order imposing the civil penalty. The

order shall constitute a judgment and may be filed and

execution had thereon in the same manner as any judgment from

any court of record.

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

(225 ILCS 427/135)

(Section scheduled to be repealed on January 1, 2020)

Sec. 135. License surrender. Upon the revocation or

suspension of any license authorized under this Act, the

licensee shall immediately surrender the license or licenses to

the Department. If the licensee fails to do so, the Department

has the right to seize the license or licenses.

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

(225 ILCS 427/155)

(Section scheduled to be repealed on January 1, 2020)

Sec. 155. Violations; penalties.

(a) A person who violates any of the following provisions

shall be guilty of a Class A misdemeanor; a person who commits

a second or subsequent violation of these provisions is guilty

of a Class 4 felony:

(1) The practice of or attempted practice of or holding

out as available to practice as a community association

manager, or supervising community association manager

without a license.

(2) Operation of or attempt to operate a community

association management firm Community Association

Management Agency without a firm an agency license or a

designated supervising community association manager.

(3) The obtaining of or the attempt to obtain any

license or authorization issued under this Act by

fraudulent misrepresentation.

(b) Whenever a licensee is convicted of a felony related to

the violations set forth in this Section, the clerk of the

court in any jurisdiction shall promptly report the conviction

to the Department and the Department shall immediately revoke

any license authorized under this Act as a community

association manager held by that licensee. The licensee

individual shall not be eligible for licensure under this Act

until at least 10 years have elapsed since the time of full

discharge from any sentence imposed for a felony conviction. If

any person in making any oath or affidavit required by this Act

swears falsely, the person is guilty of perjury and may be

punished accordingly.

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

(225 ILCS 427/165)

(Section scheduled to be repealed on January 1, 2020)

Sec. 165. Home rule. The regulation and licensing of

community association managers, supervising community

association managers, and community association management

firms Community Association Management Agencies are exclusive

powers and functions of the State. A home rule unit may not

regulate or license community association managers,

supervising community association managers, or community

association management firms and Community Association

Management Agencies. This Section is a denial and limitation of

home rule powers and functions under subsection (h) of Section

6 of Article VII of the Illinois Constitution.

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

Section 99. Effective date. This Act takes effect January

1, 2014.