Bill Amendment: IL HB3416 | 2019-2020 | 101st General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: BIDS & CONTRACTS TRANSPARENCY

Status: 2020-06-23 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB3416 Detail]

Download: Illinois-2019-HB3416-House_Amendment_001.html

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Rep. Jaime M. Andrade, Jr.

Filed: 3/6/2019

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AMENDMENT TO HOUSE BILL 3416
AMENDMENT NO. ______. Amend House Bill 3416 by replacing
everything after the enacting clause with the following:
"Section 5. The Condominium Property Act is amended by
changing Section 18.7 as follows:
(765 ILCS 605/18.7)
Sec. 18.7. Standards for community association managers.
(a) "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 that is part of a residential
development plan as a master association or common interest
community and that is authorized to impose an assessment and
other costs that may become a lien on the unit or lot.
(b) "Community association manager" means an individual
who administers for compensation the coordination of

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financial, administrative, maintenance, or other duties called
for in the management contract, including individuals who are
direct employees of a community association. A manager does not
include support staff, such as bookkeepers, administrative
assistants, secretaries, property inspectors, or customer
service representatives.
(c) Requirements. To perform services as a community
association manager, an individual must meet these
requirements:
(1) shall have attained the age of 21 and be a citizen
or legal permanent resident of the United States;
(2) shall not have been convicted of forgery,
embezzlement, obtaining money under false pretenses,
larceny, extortion, conspiracy to defraud or other similar
offense or offenses;
(3) shall have a working knowledge of the fundamentals
of community association management, including the
Condominium Property Act, the Illinois Not-for-Profit
Corporation Act, and any other laws pertaining to community
association management; and
(4) shall not have engaged in the following activities:
failure to cooperate with any law enforcement agency in the
investigation of a complaint; or failure to produce any
document, book, or record in the possession or control of
the community association manager after a request for
production of that document, book, or record in the course

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of an investigation of a complaint.
(d) Access to community association funds. For community
associations of 6 or more units, apartments, townhomes, villas
or other residential units, a community association manager or
the firm with whom the manager is employed shall not solely and
exclusively have access to and disburse funds of a community
association unless:
(1) There is a fidelity bond in place.
(2) The fidelity bond is in an amount not less than all
monies of that association in the custody or control of the
community association manager.
(3) The fidelity bond covers the community association
manager and all partners, officers, and employees of the
firm with whom the community association manager is
employed during the term of the bond, as well as the
community association officers, directors, and employees
of the community association who control or disburse funds.
(4) The insurance company issuing the bond may not
cancel or refuse to renew the bond without giving not less
than 10 days' prior written notice to the community
association.
(5) The community association shall secure and pay for
the bond.
(e) A community association manager who provides community
association management services for more than one community
association shall maintain separate, segregated accounts for

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each community association. The funds shall not, in any event,
be commingled with funds of the community association manager,
the firm of the community association manager, or any other
community association. The maintenance of these accounts shall
be custodial, and the accounts shall be in the name of the
respective community association.
(f) Exempt persons. Except as otherwise provided, this
Section does not apply to any 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.
(g) Right of Action.
(1) Nothing in this amendatory Act of the 95th General
Assembly shall create a cause of action by a unit owner,
shareholder, or community association member against a
community association manager or the firm of a community
association manager.
(2) This amendatory Act of the 95th General Assembly
shall not impair any right of action by a unit owner or
shareholder against a community association board of
directors under existing law.
(h) A community association manager who provides community
association management services shall not enter into any
agreement for payment or commission with any person,
corporation, party, partnership, or other entity that provides
goods or services to the association without first giving prior

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written disclosure to the board of managers.
(Source: P.A. 95-318, eff. 1-1-08.)".