Manager Licensing Changes are A Foot…again

On April 8, 2015, HB 15-1343 was introduced into the House Business and Labor Committee as an effort to streamline the manager licensing requirements.  The bill attempts to clarify who is required to hold a manager license; exempts executive officers who employ licensed managers from the licensure requirement; adds the definition of a “designated manager”; creates an “apprentice” license; exempts managers who hold a qualified credential from the requirement to take the “general portion” of the test; and permits the director of the division of Real Estate to issue a provisional license for managers who have not yet passed the test prior to July 1, 2015.  The provisional license is valid until December 31, 2015.

If HB 1343 is adopted, it changes the definition of Community Association Management to mean a person who performs any of the following practices at the direction of, or on behalf of, its executive board:

• In interactions with members or nonmembers of the common interest community, acting with the authority of the common interest community with respect to its business, legal, financial, or other transactions;

• Executing the resolution and decisions of the executive board;

• Enforcing the rights of the common interest community secured by statute, contract, covenant, rule or bylaw;

• Administrating or coordinating maintenance or property or facilities of the  common interest community;

• Administering applications for architectural review;

• Arranging, conducting, or coordinating meetings of the common interest community’s membership or executive  board;

• Maintaining the Common Interest Community’s records pursuant to its governing documents and applicable provisions of the CCIOA; or

• Administering or otherwise exercising control of, a common interest communities’ funds, including the administration of a reserve program for the major repair or replacement of capital assets.

These new definitions should clarify who is required to be licensed.  The bill then goes on to establish an apprentice class of license for persons just entering the industry.  An Apprentice is defined as:

• A person who has not yet completed the education and examination requirements for obtaining a community association manager license; and

• Is under the control and direct supervision of a licensed community association manager. 

• The apprentice license shall be valid for one year from the date of issuance.

A Designated Manager is defined as a person who is currently licensed as a manager and who, on behalf of a licensed entity, is responsible for performing community association management practices and supervising community association management practices performed by persons employed, or acting on behalf of, the licensed entity.  The bill provides that an entity may obtain a license by designating a manager who qualifies for a community association manager’s license to manage and supervise all of the entity’s licensed activities.  This replaces the current requirement of the Executive or CEO of the entity from obtaining a license.

Finally, the bill removes the requirement that a manager take and pass the General Portion of the manager test if that manager holds an AMS, PCAM or CMCA.  They however will still be required to take and pass the Colorado law portion of the test.

As this bill works its way through the legislative process, we will continue to monitor its progress here.