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ISBA Statehouse Review for the week of March 13, 2014

ISBA Director of Legislative Affairs Jim Covington reviews legislation in Springfield of interest to ISBA members. In this episode he covers IMDMA and life insurance (House Bill 5825), Guardianship for minors (House Bill 5686), UM/UIM arbitration (House Bill 5575), FOIA (House Bill 5875), IMDMA Rewrite (House Bill 1452), Victims’ Constitutional amendment (HJRCA 1) and Electronic voting in associations and condos (Senate Bill 3040). More information on each bill is available below the video.

IMDMA and life insurance. House Bill 5825 (Leitch, R-Peoria) Amends the Illinois Marriage and Dissolution of Marriage Act. If a life insurance policy does not constitute marital property, upon the entry of an order for dissolution of marriage or declaration of invalidity of marriage, a beneficiary designation that provides for the payment of a death benefit to the other party is revoked. But this is not applicable if the court orders otherwise or the insured affirmatively designates otherwise in a signed writing executed after the entry of the order for dissolution of marriage. If a benefit is prevented from passing to a former spouse by the new provisions, the payor must pay a death benefit under the contract providing for the death benefit as if the former spouse had predeceased the decedent. The new provisions do not apply to policies contracted for the purpose of securing a maintenance or child support obligation. Scheduled for a hearing next week in House Judiciary Committee.

Guardianship for minors. House Bill 5686 (Currie, D-Chicago) makes the following changes: (1) Requires guardians to petition the court before removing children from Illinois for more than 30 days with proper notice to the parents. (2) Requires guardians to inform the court of children’s current address within 30 days of any change of residence. (3) Requires the court to honor short-term guardian appointments made by parents unless the guardian is unfit, unable, or unwilling to care for the children. (4) Clarifies that a short-term guardian form is not consent for a court order for guardianship. In House Rules Committee.

UM/UIM arbitration. House Bill 5575 (Zalewski, D-Chicago) provides that arbitration awards entered on uninsured and underinsured motorist injury claims are binding by removing the trial de novo provision. Under current law awards are only binding if under $50,000 for injuries or death to one person and under $100,000 for injuries or death to two or more people. Scheduled for hearing next week in House Insurance Committee.

FOIA. House Bill 5875 (Yingling, D-Hainesville) provides that “public body” includes any State-wide organization that receives 75% or more of its funding through contributions from taxing bodies for the sake of membership or dues in order to participate in the organization’s activities, including, but not limited to, educational endeavors, legislative initiatives, or a general liability insurance pool. Scheduled for a House Committee hearing March 20th.

IMDMA Rewrite. House Bill 1452 (Burke, D-Evergreen Park) is a rewrite of the Illinois Marriage and Dissolution of Marriage Act. A final draft has not been filed as of yet.

Victims’ Constitutional amendment. HJRCA 1 amends the current victims’ right section of the Illinois Constitution and is scheduled for hearing next week.

Electronic voting in associations and condos. Senate Bill 3040 (Raoul, D-Chicago) amends the Common Interest Community Association Act and the Condominium Property Act. It allows electronic votes to be valid for the purpose of establishing a quorum, that an association may conduct elections by electronic or acceptable technological means, and adds provisions concerning the procedure for conducting such elections. Deletes provisions concerning secret ballots. Provides that, with exceptions, any notice required to be sent or received or signature, vote, consent, or approval required to be obtained may be accomplished using the most advanced technology available at that time. Provides that if a person does not have the capability or desire to conduct business using electronic transmission or other equivalent technological means, the common interest community association shall make reasonable accommodation, at its expense, for the person to conduct business with the association without the use of electronic or other means. Provides that certain common interest community associations having 10 units or less (instead of “either (i) 10 units or less or (ii) annual budgeted assessments of $100,000 or less”) are exempt from the Common Interest Community Association Act. On third reading in the Senate.

Posted on March 13, 2014 by Chris Bonjean
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