Bill Text: IL SB0636 | 2021-2022 | 102nd General Assembly | Engrossed

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Bill Title: Amends the Condominium Property Act. Provides that a declaration first submitting property to the provisions of the Act, in accordance with specified provisions after the effective date of the amendatory Act, or an amendment to the condominium instruments adopted in accordance with specified provisions after the effective date of the amendatory Act, may provide that a majority of the board of managers, or a lesser number specified in the declaration, must be comprised of unit owners occupying their unit as their primary residence; provided that the condominium instruments may not require that more than a majority of the board shall be comprised of unit owners who occupy their unit as their principal residence.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2021-07-26 - Public Act . . . . . . . . . 102-0162 [SB0636 Detail]

Download: Illinois-2021-SB0636-Engrossed.html

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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Condominium Property Act is amended by
changing Section 18 as follows:
(765 ILCS 605/18) (from Ch. 30, par. 318)
Sec. 18. Contents of bylaws. The bylaws shall provide for
at least the following:
(a)(1) The election from among the unit owners of a
board of managers, the number of persons constituting such
board, and that the terms of at least one-third of the
members of the board shall expire annually and that all
members of the board shall be elected at large; if there
are multiple owners of a single unit, only one of the
multiple owners shall be eligible to serve as a member of
the board at any one time. A declaration first submitting
property to the provisions of this Act, in accordance with
Section 3 after the effective date of this amendatory Act
of the 102nd General Assembly, or an amendment to the
condominium instruments adopted in accordance with Section
27 after the effective date of this amendatory Act of the
102nd General Assembly, may provide that a majority of the
board of managers, or such lesser number as may be

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specified in the declaration, must be comprised of unit
owners occupying their unit as their primary residence;
provided that the condominium instruments may not require
that more than a majority of the board shall be comprised
of unit owners who occupy their unit as their principal
residence;
(2) the powers and duties of the board;
(3) the compensation, if any, of the members of the
board;
(4) the method of removal from office of members of
the board;
(5) that the board may engage the services of a
manager or managing agent;
(6) that each unit owner shall receive, at least 25
days prior to the adoption thereof by the board of
managers, a copy of the proposed annual budget together
with an indication of which portions are intended for
reserves, capital expenditures or repairs or payment of
real estate taxes;
(7) that the board of managers shall annually supply
to all unit owners an itemized accounting of the common
expenses for the preceding year actually incurred or paid,
together with an indication of which portions were for
reserves, capital expenditures or repairs or payment of
real estate taxes and with a tabulation of the amounts
collected pursuant to the budget or assessment, and

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showing the net excess or deficit of income over
expenditures plus reserves;
(8)(i) that each unit owner shall receive notice, in
the same manner as is provided in this Act for membership
meetings, of any meeting of the board of managers
concerning the adoption of the proposed annual budget and
regular assessments pursuant thereto or to adopt a
separate (special) assessment, (ii) that except as
provided in subsection (iv) below, if an adopted budget or
any separate assessment adopted by the board would result
in the sum of all regular and separate assessments payable
in the current fiscal year exceeding 115% of the sum of all
regular and separate assessments payable during the
preceding fiscal year, the board of managers, upon written
petition by unit owners with 20 percent of the votes of the
association delivered to the board within 21 days of the
board action, shall call a meeting of the unit owners
within 30 days of the date of delivery of the petition to
consider the budget or separate assessment; unless a
majority of the total votes of the unit owners are cast at
the meeting to reject the budget or separate assessment,
it is ratified, (iii) that any common expense not set
forth in the budget or any increase in assessments over
the amount adopted in the budget shall be separately
assessed against all unit owners, (iv) that separate
assessments for expenditures relating to emergencies or

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mandated by law may be adopted by the board of managers
without being subject to unit owner approval or the
provisions of item (ii) above or item (v) below. As used
herein, "emergency" means an immediate danger to the
structural integrity of the common elements or to the
life, health, safety or property of the unit owners, (v)
that assessments for additions and alterations to the
common elements or to association-owned property not
included in the adopted annual budget, shall be separately
assessed and are subject to approval of two-thirds of the
total votes of all unit owners, (vi) that the board of
managers may adopt separate assessments payable over more
than one fiscal year. With respect to multi-year
assessments not governed by items (iv) and (v), the entire
amount of the multi-year assessment shall be deemed
considered and authorized in the first fiscal year in
which the assessment is approved;
(9)(A) that every meeting of the board of managers
shall be open to any unit owner, except that the board may
close any portion of a noticed meeting or meet separately
from a noticed meeting to: (i) discuss litigation when an
action against or on behalf of the particular association
has been filed and is pending in a court or administrative
tribunal, or when the board of managers finds that such an
action is probable or imminent, (ii) discuss the
appointment, employment, engagement, or dismissal of an

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employee, independent contractor, agent, or other provider
of goods and services, (iii) interview a potential
employee, independent contractor, agent, or other provider
of goods and services, (iv) discuss violations of rules
and regulations of the association, (v) discuss a unit
owner's unpaid share of common expenses, or (vi) consult
with the association's legal counsel; that any vote on
these matters shall take place at a meeting of the board of
managers or portion thereof open to any unit owner;
(B) that board members may participate in and act at
any meeting of the board of managers in person, by
telephonic means, or by use of any acceptable
technological means whereby all persons participating in
the meeting can communicate with each other; that
participation constitutes attendance and presence in
person at the meeting;
(C) that any unit owner may record the proceedings at
meetings of the board of managers or portions thereof
required to be open by this Act by tape, film or other
means, and that the board may prescribe reasonable rules
and regulations to govern the right to make such
recordings;
(D) that notice of every meeting of the board of
managers shall be given to every board member at least 48
hours prior thereto, unless the board member waives notice
of the meeting pursuant to subsection (a) of Section 18.8;

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and
(E) that notice of every meeting of the board of
managers shall be posted in entranceways, elevators, or
other conspicuous places in the condominium at least 48
hours prior to the meeting of the board of managers except
where there is no common entranceway for 7 or more units,
the board of managers may designate one or more locations
in the proximity of these units where the notices of
meetings shall be posted; that notice of every meeting of
the board of managers shall also be given at least 48 hours
prior to the meeting, or such longer notice as this Act may
separately require, to: (i) each unit owner who has
provided the association with written authorization to
conduct business by acceptable technological means, and
(ii) to the extent that the condominium instruments of an
association require, to each other unit owner, as required
by subsection (f) of Section 18.8, by mail or delivery,
and that no other notice of a meeting of the board of
managers need be given to any unit owner;
(10) that the board shall meet at least 4 times
annually;
(11) that no member of the board or officer shall be
elected for a term of more than 2 years, but that officers
and board members may succeed themselves;
(12) the designation of an officer to mail and receive
all notices and execute amendments to condominium

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instruments as provided for in this Act and in the
condominium instruments;
(13) the method of filling vacancies on the board
which shall include authority for the remaining members of
the board to fill the vacancy by two-thirds vote until the
next annual meeting of unit owners or for a period
terminating no later than 30 days following the filing of
a petition signed by unit owners holding 20% of the votes
of the association requesting a meeting of the unit owners
to fill the vacancy for the balance of the term, and that a
meeting of the unit owners shall be called for purposes of
filling a vacancy on the board no later than 30 days
following the filing of a petition signed by unit owners
holding 20% of the votes of the association requesting
such a meeting, and the method of filling vacancies among
the officers that shall include the authority for the
members of the board to fill the vacancy for the unexpired
portion of the term;
(14) what percentage of the board of managers, if
other than a majority, shall constitute a quorum;
(15) provisions concerning notice of board meetings to
members of the board;
(16) the board of managers may not enter into a
contract with a current board member or with a corporation
or partnership in which a board member or a member of the
board member's immediate family has 25% or more interest,

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unless notice of intent to enter the contract is given to
unit owners within 20 days after a decision is made to
enter into the contract and the unit owners are afforded
an opportunity by filing a petition, signed by 20% of the
unit owners, for an election to approve or disapprove the
contract; such petition shall be filed within 30 days
after such notice and such election shall be held within
30 days after filing the petition; for purposes of this
subsection, a board member's immediate family means the
board member's spouse, parents, and children;
(17) that the board of managers may disseminate to
unit owners biographical and background information about
candidates for election to the board if (i) reasonable
efforts to identify all candidates are made and all
candidates are given an opportunity to include
biographical and background information in the information
to be disseminated; and (ii) the board does not express a
preference in favor of any candidate;
(18) any proxy distributed for board elections by the
board of managers gives unit owners the opportunity to
designate any person as the proxy holder, and gives the
unit owner the opportunity to express a preference for any
of the known candidates for the board or to write in a
name;
(19) that special meetings of the board of managers
can be called by the president or 25% of the members of the

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board;
(20) that the board of managers may establish and
maintain a system of master metering of public utility
services and collect payments in connection therewith,
subject to the requirements of the Tenant Utility Payment
Disclosure Act; and
(21) that the board may ratify and confirm actions of
the members of the board taken in response to an
emergency, as that term is defined in subdivision
(a)(8)(iv) of this Section; that the board shall give
notice to the unit owners of: (i) the occurrence of the
emergency event within 7 business days after the emergency
event, and (ii) the general description of the actions
taken to address the event within 7 days after the
emergency event.
The intent of the provisions of Public Act 99-472
adding this paragraph (21) is to empower and support
boards to act in emergencies.
(b)(1) What percentage of the unit owners, if other
than 20%, shall constitute a quorum provided that, for
condominiums with 20 or more units, the percentage of unit
owners constituting a quorum shall be 20% unless the unit
owners holding a majority of the percentage interest in
the association provide for a higher percentage, provided
that in voting on amendments to the association's bylaws,
a unit owner who is in arrears on the unit owner's regular

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or separate assessments for 60 days or more, shall not be
counted for purposes of determining if a quorum is
present, but that unit owner retains the right to vote on
amendments to the association's bylaws;
(2) that the association shall have one class of
membership;
(3) that the members shall hold an annual meeting, one
of the purposes of which shall be to elect members of the
board of managers;
(4) the method of calling meetings of the unit owners;
(5) that special meetings of the members can be called
by the president, board of managers, or by 20% of unit
owners;
(6) that written notice of any membership meeting
shall be mailed or delivered giving members no less than
10 and no more than 30 days notice of the time, place and
purpose of such meeting except that notice may be sent, to
the extent the condominium instruments or rules adopted
thereunder expressly so provide, by electronic
transmission consented to by the unit owner to whom the
notice is given, provided the director and officer or his
agent certifies in writing to the delivery by electronic
transmission;
(7) that voting shall be on a percentage basis, and
that the percentage vote to which each unit is entitled is
the percentage interest of the undivided ownership of the

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common elements appurtenant thereto, provided that the
bylaws may provide for approval by unit owners in
connection with matters where the requisite approval on a
percentage basis is not specified in this Act, on the
basis of one vote per unit;
(8) that, where there is more than one owner of a unit,
if only one of the multiple owners is present at a meeting
of the association, he is entitled to cast all the votes
allocated to that unit, if more than one of the multiple
owners are present, the votes allocated to that unit may
be cast only in accordance with the agreement of a
majority in interest of the multiple owners, unless the
declaration expressly provides otherwise, that there is
majority agreement if any one of the multiple owners cast
the votes allocated to that unit without protest being
made promptly to the person presiding over the meeting by
any of the other owners of the unit;
(9)(A) except as provided in subparagraph (B) of this
paragraph (9) in connection with board elections, that a
unit owner may vote by proxy executed in writing by the
unit owner or by his duly authorized attorney in fact;
that the proxy must bear the date of execution and, unless
the condominium instruments or the written proxy itself
provide otherwise, is invalid after 11 months from the
date of its execution; to the extent the condominium
instruments or rules adopted thereunder expressly so

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provide, a vote or proxy may be submitted by electronic
transmission, provided that any such electronic
transmission shall either set forth or be submitted with
information from which it can be determined that the
electronic transmission was authorized by the unit owner
or the unit owner's proxy;
(B) that if a rule adopted at least 120 days before a
board election or the declaration or bylaws provide for
balloting as set forth in this subsection, unit owners may
not vote by proxy in board elections, but may vote only (i)
by submitting an association-issued ballot in person at
the election meeting or (ii) by submitting an
association-issued ballot to the association or its
designated agent by mail or other means of delivery
specified in the declaration, bylaws, or rule; that the
ballots shall be mailed or otherwise distributed to unit
owners not less than 10 and not more than 30 days before
the election meeting, and the board shall give unit owners
not less than 21 days' prior written notice of the
deadline for inclusion of a candidate's name on the
ballots; that the deadline shall be no more than 7 days
before the ballots are mailed or otherwise distributed to
unit owners; that every such ballot must include the names
of all candidates who have given the board or its
authorized agent timely written notice of their candidacy
and must give the person casting the ballot the

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opportunity to cast votes for candidates whose names do
not appear on the ballot; that a ballot received by the
association or its designated agent after the close of
voting shall not be counted; that a unit owner who submits
a ballot by mail or other means of delivery specified in
the declaration, bylaws, or rule may request and cast a
ballot in person at the election meeting, and thereby void
any ballot previously submitted by that unit owner;
(B-5) that if a rule adopted at least 120 days before a
board election or the declaration or bylaws provide for
balloting as set forth in this subparagraph, unit owners
may not vote by proxy in board elections, but may vote only
(i) by submitting an association-issued ballot in person
at the election meeting; or (ii) by any acceptable
technological means as defined in Section 2 of this Act;
instructions regarding the use of electronic means for
voting shall be distributed to all unit owners not less
than 10 and not more than 30 days before the election
meeting, and the board shall give unit owners not less
than 21 days' prior written notice of the deadline for
inclusion of a candidate's name on the ballots; the
deadline shall be no more than 7 days before the
instructions for voting using electronic or acceptable
technological means is distributed to unit owners; every
instruction notice must include the names of all
candidates who have given the board or its authorized

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agent timely written notice of their candidacy and must
give the person voting through electronic or acceptable
technological means the opportunity to cast votes for
candidates whose names do not appear on the ballot; a unit
owner who submits a vote using electronic or acceptable
technological means may request and cast a ballot in
person at the election meeting, thereby voiding any vote
previously submitted by that unit owner;
(C) that if a written petition by unit owners with at
least 20% of the votes of the association is delivered to
the board within 30 days after the board's approval of a
rule adopted pursuant to subparagraph (B) or subparagraph
(B-5) of this paragraph (9), the board shall call a
meeting of the unit owners within 30 days after the date of
delivery of the petition; that unless a majority of the
total votes of the unit owners are cast at the meeting to
reject the rule, the rule is ratified;
(D) that votes cast by ballot under subparagraph (B)
or electronic or acceptable technological means under
subparagraph (B-5) of this paragraph (9) are valid for the
purpose of establishing a quorum;
(10) that the association may, upon adoption of the
appropriate rules by the board of managers, conduct
elections by secret ballot whereby the voting ballot is
marked only with the percentage interest for the unit and
the vote itself, provided that the board further adopt

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rules to verify the status of the unit owner issuing a
proxy or casting a ballot; and further, that a candidate
for election to the board of managers or such candidate's
representative shall have the right to be present at the
counting of ballots at such election;
(11) that in the event of a resale of a condominium
unit the purchaser of a unit from a seller other than the
developer pursuant to an installment sales contract for
purchase shall during such times as he or she resides in
the unit be counted toward a quorum for purposes of
election of members of the board of managers at any
meeting of the unit owners called for purposes of electing
members of the board, shall have the right to vote for the
election of members of the board of managers and to be
elected to and serve on the board of managers unless the
seller expressly retains in writing any or all of such
rights. In no event may the seller and purchaser both be
counted toward a quorum, be permitted to vote for a
particular office or be elected and serve on the board.
Satisfactory evidence of the installment sales contract
shall be made available to the association or its agents.
For purposes of this subsection, "installment sales
contract" shall have the same meaning as set forth in
Section 5 of the Installment Sales Contract Act and
Section 1(e) of the Dwelling Unit Installment Contract
Act;

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(12) the method by which matters subject to the
approval of unit owners set forth in this Act, or in the
condominium instruments, will be submitted to the unit
owners at special membership meetings called for such
purposes; and
(13) that matters subject to the affirmative vote of
not less than 2/3 of the votes of unit owners at a meeting
duly called for that purpose, shall include, but not be
limited to:
(i) merger or consolidation of the association;
(ii) sale, lease, exchange, or other disposition
(excluding the mortgage or pledge) of all, or
substantially all of the property and assets of the
association; and
(iii) the purchase or sale of land or of units on
behalf of all unit owners.
(c) Election of a president from among the board of
managers, who shall preside over the meetings of the board
of managers and of the unit owners.
(d) Election of a secretary from among the board of
managers, who shall keep the minutes of all meetings of
the board of managers and of the unit owners and who shall,
in general, perform all the duties incident to the office
of secretary.
(e) Election of a treasurer from among the board of
managers, who shall keep the financial records and books

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of account.
(f) Maintenance, repair and replacement of the common
elements and payments therefor, including the method of
approving payment vouchers.
(g) An association with 30 or more units shall obtain
and maintain fidelity insurance covering persons who
control or disburse funds of the association for the
maximum amount of coverage available to protect funds in
the custody or control of the association plus the
association reserve fund. All management companies which
are responsible for the funds held or administered by the
association shall maintain and furnish to the association
a fidelity bond for the maximum amount of coverage
available to protect funds in the custody of the
management company at any time. The association shall bear
the cost of the fidelity insurance and fidelity bond,
unless otherwise provided by contract between the
association and a management company. The association
shall be the direct obligee of any such fidelity bond. A
management company holding reserve funds of an association
shall at all times maintain a separate account for each
association, provided, however, that for investment
purposes, the Board of Managers of an association may
authorize a management company to maintain the
association's reserve funds in a single interest bearing
account with similar funds of other associations. The

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management company shall at all times maintain records
identifying all moneys of each association in such
investment account. The management company may hold all
operating funds of associations which it manages in a
single operating account but shall at all times maintain
records identifying all moneys of each association in such
operating account. Such operating and reserve funds held
by the management company for the association shall not be
subject to attachment by any creditor of the management
company.
For the purpose of this subsection, a management
company shall be defined as a person, partnership,
corporation, or other legal entity entitled to transact
business on behalf of others, acting on behalf of or as an
agent for a unit owner, unit owners or association of unit
owners for the purpose of carrying out the duties,
responsibilities, and other obligations necessary for the
day to day operation and management of any property
subject to this Act. For purposes of this subsection, the
term "fiduciary insurance coverage" shall be defined as
both a fidelity bond and directors and officers liability
coverage, the fidelity bond in the full amount of
association funds and association reserves that will be in
the custody of the association, and the directors and
officers liability coverage at a level as shall be
determined to be reasonable by the board of managers, if

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not otherwise established by the declaration or by laws.
Until one year after September 21, 1985 (the effective
date of Public Act 84-722), if a condominium association
has reserves plus assessments in excess of $250,000 and
cannot reasonably obtain 100% fidelity bond coverage for
such amount, then it must obtain a fidelity bond coverage
of $250,000.
(h) Method of estimating the amount of the annual
budget, and the manner of assessing and collecting from
the unit owners their respective shares of such estimated
expenses, and of any other expenses lawfully agreed upon.
(i) That upon 10 days notice to the manager or board of
managers and payment of a reasonable fee, any unit owner
shall be furnished a statement of his account setting
forth the amount of any unpaid assessments or other
charges due and owing from such owner.
(j) Designation and removal of personnel necessary for
the maintenance, repair and replacement of the common
elements.
(k) Such restrictions on and requirements respecting
the use and maintenance of the units and the use of the
common elements, not set forth in the declaration, as are
designed to prevent unreasonable interference with the use
of their respective units and of the common elements by
the several unit owners.
(l) Method of adopting and of amending administrative

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rules and regulations governing the operation and use of
the common elements.
(m) The percentage of votes required to modify or
amend the bylaws, but each one of the particulars set
forth in this section shall always be embodied in the
bylaws.
(n)(i) The provisions of this Act, the declaration,
bylaws, other condominium instruments, and rules and
regulations that relate to the use of the individual unit
or the common elements shall be applicable to any person
leasing a unit and shall be deemed to be incorporated in
any lease executed or renewed on or after August 30, 1984
(the effective date of Public Act 83-1271).
(ii) With regard to any lease entered into subsequent
to July 1, 1990 (the effective date of Public Act 86-991),
the unit owner leasing the unit shall deliver a copy of the
signed lease to the board or if the lease is oral, a
memorandum of the lease, not later than the date of
occupancy or 10 days after the lease is signed, whichever
occurs first. In addition to any other remedies, by filing
an action jointly against the tenant and the unit owner,
an association may seek to enjoin a tenant from occupying
a unit or seek to evict a tenant under the provisions of
Article IX of the Code of Civil Procedure for failure of
the lessor-owner to comply with the leasing requirements
prescribed by this Section or by the declaration, bylaws,

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and rules and regulations. The board of managers may
proceed directly against a tenant, at law or in equity, or
under the provisions of Article IX of the Code of Civil
Procedure, for any other breach by tenant of any
covenants, rules, regulations or bylaws.
(o) The association shall have no authority to forbear
the payment of assessments by any unit owner.
(p) That when 30% or fewer of the units, by number,
possess over 50% in the aggregate of the votes in the
association, any percentage vote of members specified
herein or in the condominium instruments shall require the
specified percentage by number of units rather than by
percentage of interest in the common elements allocated to
units that would otherwise be applicable and garage units
or storage units, or both, shall have, in total, no more
votes than their aggregate percentage of ownership in the
common elements; this shall mean that if garage units or
storage units, or both, are to be given a vote, or portion
of a vote, that the association must add the total number
of votes cast of garage units, storage units, or both, and
divide the total by the number of garage units, storage
units, or both, and multiply by the aggregate percentage
of ownership of garage units and storage units to
determine the vote, or portion of a vote, that garage
units or storage units, or both, have. For purposes of
this subsection (p), when making a determination of

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whether 30% or fewer of the units, by number, possess over
50% in the aggregate of the votes in the association, a
unit shall not include a garage unit or a storage unit.
(q) That a unit owner may not assign, delegate,
transfer, surrender, or avoid the duties,
responsibilities, and liabilities of a unit owner under
this Act, the condominium instruments, or the rules and
regulations of the Association; and that such an attempted
assignment, delegation, transfer, surrender, or avoidance
shall be deemed void.
The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion
of a condominium instrument which contains provisions contrary
to these provisions shall be void as against public policy and
ineffective. Any such instrument which fails to contain the
provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17;
99-642, eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff.
1-1-18; 100-863, eff. 8-14-18.)