HB 514, SB 563 - It's twins!!!
Following the pattern for the last 10 years, not just one, but two bills have been introduced to create Community Manager licensing. The text of these two bills is identical, covering a wide range of issues -- not just basic licensing - including:
Community Manager Licensing - Mandatory requirement to have a criminal check for all who provide normal services for
community associations. This also applies to any private community association manager schools. A roster will be
maintained of all Community Managers.
License Administration - The Real Estate Commission will provide administration for all topics covered in these bills.
However, the license issued to community managers is different from the license issued to real estate brokers.
Education - A minimum of 45 hours of class room instruction, as prescribed by the Commission. All private schools offering
community manager education must be licensed by the Commission and bonded.
Fidelity Bond - All Community Managers will be required to maintain coverage equal to the budgets they administer, up to
$2 Million. The bond can be issued to the individual or to their Management company.
Segregation of Accounts - A community association's funds must be deposited in fully segregated, federally insured
accounts in a bank, savings institution or credit union and they must allow the Commission examination rights.
Registration of Community Associations - Every community association must register with the Commission and identify
the community manager, all members of the board of directors, their agent for process serving, their full address and the
counties where the community is located. They must also pay an annual fee of up to $100. The communications data must
be updated within 15 days of any change. A public directory of all community association data will be maintained.
Liens Enforcement - Existing rules apply to all community associations except no enforcement is allowed if the community
has failed to maintain their registration with the commission.
The above is a high level view of a bill that runs 15 pages. It is very detailed in most sections, but some sections lack the
required level of detail. It is recommended that all interested parties read the entire bill to determine the impact, as it applies
to their community association or company. After considerable review of this bill and in consultation with many community
management leaders, the LAC opposes H.B. 514 and S.B. 563, but we welcome the opportunity to continue dialog concerning issues in the bills that we do support.
Information provided by Community Association Institute (CAI) on April 22, 2015.
If you need additional information on Community Management Association Services, please contact the experts at CAMS at 877-672-2267.