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ISBA Statehouse Review for the week of May 8, 2014

ISBA Director of Legislative Affairs Jim Covington reviews legislation in Springfield of interest to ISBA members. In this episode he covers Marriage rewrite (House Bill 1452), Disabled adults (Senate Bill 1051), UM/UIM arbitration (House Bill 5575), Sale of distressed condominium units (Senate Bill 2664), Eavesdropping, Workers' Compensation Act (Senate Bill 3287)  and Statutes of limitation (House Bill 5512). More information on each bill is available below.

Marriage rewrite. House Bill 1452 (Kelly Burke, D-Evergreen Park; Mulroe, D-Chicago) is a 200-page rewrite of the Illinois Marriage and Dissolution of Marriage Act. The newest draft is to be filed today as Senate Amendment No. 1 and scheduled for a hearing next Tuesday.

Disabled adults. Senate Bill 1051 (Stadelman, D-Rockford) amends Probate Act affecting disabled adults. (1) Requires the name and contact information of all persons who performed evaluations on which the report is based in the petition seeking adjudication of disability and appointment of a guardian. (2) Clarifies that the paramount concern for the court must be the best interest and well-being of the disabled person in the selection of a guardian.

UM/UIM arbitration. House Bill 5575 (Zalewski, D-Chicago; Mulroe, D-Chicago) amends the Insurance Code affecting binding arbitration in uninsured motorist claims. Under current law, arbitrators’ decisions are binding only if the award doesn’t exceed $50,000 for bodily injury to or death of any one person or $100,000 for bodily injury to or death of two or more persons in one motor vehicle accident. House Bill 5575 increases those levels to $75,000 and $150,000 respectively. It has passed out of the House and out of Senate Insurance Committee.

Sale of distressed condominium units. Senate Bill 2664 (Hastings, D-Matteson; Yingling, D-Hainesville) seeks to protect innocent purchasers of foreclosed condominiums units. It amends the Condominium Property Act to stop the current practice in which purchasers of distressed condominium units discover at the closing table that they owe back assessments to the association. Under the current statute, there is no mechanism to determine the amount of back assessments and other charges that the purchaser will be liable for.

It clarifies and caps the total amount the purchaser may be liable for—no more than an amount equal to the unit’s unpaid regular monthly assessments for the nine-month period immediately preceding the judicial foreclosure. This maximum amount can include attorney’s fees and costs incurred by the association prior to closing because of the nonpayment of these assessments.

It will apply to distressed units in a purchase at a judicial foreclosure sale (other than by a mortgagee) and a purchase from a mortgagee that acquired title through a judicial foreclosure, a consent foreclosure, a common-law strict foreclosure, or the delivery of a deed in lieu of foreclosure.

The proposal also improves the notice provisions to prospective purchasers to be more clear and timely by requiring the board of managers to produce for the seller and the prospective purchasers within 14 days information about the condominium unit, such as a copy of the condominium instruments, amounts due, and any rules and regulations. (For associations without professional management, it is 21 days.) Current law allows 30 days that is often too slow, and the proposal allows the Board the flexibility to do it either electronically or in writing. Passed out of the Senate and out of House Judiciary Committee.

Eavesdropping. The eavesdropping article is probably going to be amended after the Illinois Supreme Court struck this down as overbroad. What that legislative solution will be is unclear and remains to be seen.

Workers' Compensation Act. Senate Bill 3287 (Raoul, D-Chicago; Bradley, D-Marion) provides that there is no right to recover damages for injury or death, other than the compensation provided under the Act, from a service organization that is wholly owned by the employer or the employer’s insurer or broker and that provides safety service, advice, or recommendations. Current law is from a service organization retained by the employer or the employer’s insurer or broker to provide safety service, advice, or recommendations. Passed out of the Senate and House Judiciary Committee.

Statutes of limitation. House Bill 5512 (Nekritz, D-Chicago; Mulroe, D-Chicago) provides that if a person is not under a legal disability at the time certain causes of action accrue, but becomes legally disabled before the statutory periods of limitations for those actions otherwise run, the limitations periods are stayed until the disability is removed. These changes don’t invalidate any applicable statute of repose provisions. Passed out of the House and Senate Judiciary Committee.

Posted on May 8, 2014 by Chris Bonjean
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