The bill establishes licensure requirements for business entities that perform community association management for common interest communities in the state and makes it unlawful, on and after July 1, 2025, for a business entity to perform community association management duties without a license. The division of real estate (division) in the department of regulatory agencies (department) is tasked with administering the regulatory program for community association managers (CAMs). To be licensed, a business entity must:
- Demonstrate compliance with insurance requirements specified by the director of the division (director) by rule;
- Designate an individual as the business entity's controlling manager who is responsible for the community association management activities of the business entity and its employees;
- Pay a fee based on a schedule of fees determined by the director through rule-making; and
- Obtain criminal history record checks for its controlling manager and each individual that performs community association management on behalf of the business entity.
The director shall establish by rule education requirements for controlling managers and any employees of a licensed business entity (licensed entity) who perform community association management on behalf of the licensed entity.
The bill sets forth various grounds for disciplining a licensed entity and directs the director to establish a points-based disciplinary system for determining the appropriate level of discipline to impose on a licensed entity based on the level of violation.
The bill repeals the licensure of CAMs on September 1, 2029, and directs the department to conduct a sunset review of the licensure program before that date.
(Note: This summary applies to this bill as introduced.)