Amendments for HB19-1212
House Journal, March 27
52 HB19-1212 be amended as follows, and as so amended, be referred to
53 the Committee on Finance with favorable
54 recommendation:
55
1 Amend printed bill, page 4, line 11, after "COORDINATING" insert
2 "CONTRACTS FOR".
3
4 Page 4, strike line 13 and substitute:
5
6 "(V) EVALUATING APPLICATIONS FOR ARCHITECTURAL REVIEW
7 AND RECOMMENDING OR MAKING FINAL DECISIONS REGARDING THOSE
8 APPLICATIONS;".
9
10 Page 4, line 25, strike "THE" and substitute "AFTER CONSULTING WITH
11 THE ADVISORY COMMITTEE CREATED IN SECTION 12-61-1013, THE".
12
13 Page 5, line 14, strike "MANAGER," and substitute "MANAGER OR THE
14 EXECUTIVE BOARD,".
15
16 Page 7, line 19, strike "THE DIRECTOR MAY" and substitute "AFTER
17 CONSULTING WITH THE ADVISORY COMMITTEE CREATED IN SECTION
18 12-61-1013, THE DIRECTOR SHALL".
19
20 Page 7, line 24, strike "12-61-1012," and substitute "12-61-1014,".
21
22 Page 11, strike lines 6 and 7 and substitute:
23
24 "(I) (A) HOLD ONE OR MORE CREDENTIALS IDENTIFIED IN RULES
25 ADOPTED BY THE DIRECTOR IN CONSULTATION WITH THE ADVISORY
26 COMMITTEE CREATED IN SECTION 12-61-1013; OR".
27
28 Page 13, line 15, strike "GENERAL" and substitute "COLORADO LAW".
29
30 Page 16, strike lines 6 through 10 and substitute "UNLESS THE AMOUNT
31 OF THE FEE OR CHARGE IS EXPLICITLY DISCLOSED IN THE MANAGER'S
32 CONTRACT WITH THE HOA OR IN AN ADDENDUM TO THE CONTRACT.".
33
34 Page 19, after line 15 insert:
35
36 "12-61-1012. Investigation - revocation - actions against
37 licensee - rules. (1) THE DIRECTOR, UPON THE DIRECTOR'S OWN MOTION,
38 MAY, AND, UPON THE COMPLAINT IN WRITING OF ANY PERSON, SHALL,
39 INVESTIGATE THE ACTIVITIES OF ANY LICENSEE OR ANY PERSON WHO
40 ASSUMES TO ACT IN THE CAPACITY OF A LICENSEE WITHIN THE STATE
41 UPON THE DIRECTOR'S DETERMINATION THAT THE COMPLAINT IS VALID.
42 THE DIRECTOR, AFTER HOLDING A HEARING IN ACCORDANCE WITH THE
43 "STATE ADMINISTRATIVE PROCEDURE ACT", ARTICLE 4 OF TITLE 24, MAY
44 IMPOSE AN ADMINISTRATIVE FINE NOT TO EXCEED TWO THOUSAND FIVE
45 HUNDRED DOLLARS FOR EACH SEPARATE OFFENSE, CENSURE A LICENSEE,
46 PLACE THE LICENSEE ON PROBATION AND SET THE TERMS OF PROBATION,
47 OR TEMPORARILY SUSPEND OR PERMANENTLY REVOKE A LICENSE WHEN
48 THE LICENSEE HAS PERFORMED, IS PERFORMING, OR IS ATTEMPTING TO
49 PERFORM ANY OF THE FOLLOWING ACTS AND IS GUILTY OF:
50 (a) KNOWINGLY MAKING ANY MISREPRESENTATION OR
51 KNOWINGLY MAKING USE OF ANY FALSE OR MISLEADING ADVERTISING;
52 (b) MAKING ANY PROMISE OF A CHARACTER THAT INFLUENCES,
53 PERSUADES, OR INDUCES ANOTHER PERSON WHEN HE OR SHE COULD NOT
54 OR DID NOT INTEND TO KEEP SUCH PROMISE;
55 (c) KNOWINGLY MISREPRESENTING OR MAKING FALSE PROMISES
1 THROUGH AGENTS, ADVERTISING, OR OTHERWISE;
2 (d) VIOLATING, DIRECTLY OR INDIRECTLY, ANY APPLICABLE
3 PROVISION OF COLORADO OR FEDERAL FAIR HOUSING LAWS;
4 (e) KNOWINGLY VIOLATING OR KNOWINGLY DIRECTING OTHERS
5 TO VIOLATE CCIOA;
6 (f) FAILING TO ACCOUNT FOR OR TO REMIT, WITHIN A REASONABLE
7 TIME, ANY MONEY COMING INTO THE LICENSEE'S POSSESSION THAT
8 BELONGS TO OTHERS, WHETHER ACTING AS A COMMUNITY ASSOCIATION
9 MANAGER, APPRENTICE, OR OTHERWISE, AND FAILING TO KEEP RECORDS
10 RELATIVE TO THE MONEY, WHICH RECORDS MUST CONTAIN ANY
11 INFORMATION REQUIRED BY RULES OF THE DIRECTOR AND ARE SUBJECT
12 TO AUDIT BY THE DIRECTOR;
13 (g) CONVERTING FUNDS OF OTHERS, DIVERTING FUNDS OF OTHERS
14 WITHOUT PROPER AUTHORIZATION, COMMINGLING FUNDS OF OTHERS
15 WITH THE MANAGER'S OWN FUNDS, OR FAILING TO KEEP SUCH FUNDS OF
16 OTHERS IN A SEGREGATED ACCOUNT WITH SOME BANK OR RECOGNIZED
17 DEPOSITORY IN THIS STATE, WHICH ACCOUNT MAY BE ANY TYPE OF
18 CHECKING, DEMAND, PASSBOOK, OR STATEMENT ACCOUNT INSURED BY
19 AN AGENCY OF THE UNITED STATES GOVERNMENT, AND TO SO KEEP
20 RECORDS RELATIVE TO THE DEPOSIT THAT CONTAIN ANY INFORMATION
21 REQUIRED BY RULES OF THE DIRECTOR AND ARE SUBJECT TO AUDIT BY
22 THE DIRECTOR;
23 (h) DISREGARDING OR VIOLATING, OR AIDING OR ABETTING ANY
24 VIOLATION OF, THIS PART 10 OR ANY APPLICABLE RULE OR ORDER OF THE
25 DIRECTOR;
26 (i) PERFORMING ANY ACT THAT LEADS TO A CONVICTION OF,
27 ENTRY OF A PLEA OF GUILTY TO, OR ENTRY OF A PLEA OF NOLO
28 CONTENDERE TO ANY CRIME IN ARTICLE 3 OF TITLE 18; PARTS 1 TO 4 OF
29 ARTICLE 4 OF TITLE 18; PARTS 1 TO 5 AND 7 TO 9 OF ARTICLE 5 OF TITLE
30 18; ARTICLE 5.5 OF TITLE 18; PARTS 3, 4, AND 6 TO 8 OF ARTICLE 6 OF
31 TITLE 18; PARTS 1 AND 3 TO 8 OF ARTICLE 7 OF TITLE 18; PART 3 OF
32 ARTICLE 8 OF TITLE 18; ARTICLE 15 OF TITLE 18; ARTICLE 17 OF TITLE 18;
33 SECTION 18-18-405, 18-18-411, 18-18-412.5, 18-18-412.7, 18-18-415,
34 18-18-422, OR 18-18-423; OR ANY OTHER LIKE CRIME UNDER COLORADO
35 LAW, FEDERAL LAW, OR THE LAWS OF OTHER STATES. A CERTIFIED COPY
36 OF THE JUDGMENT OF A COURT OF COMPETENT JURISDICTION OF SUCH
37 CONVICTION OR OTHER OFFICIAL RECORD INDICATING THAT SUCH PLEA
38 WAS ENTERED IS CONCLUSIVE EVIDENCE OF SUCH CONVICTION OR PLEA IN
39 ANY HEARING UNDER THIS PART 10.
40 (j) FAILING TO IMMEDIATELY NOTIFY THE DIRECTOR IN WRITING
41 OF A CONVICTION, PLEA, OR VIOLATION COVERED BY SUBSECTION (1)(i)
42 OF THIS SECTION;
43 (k) HAVING DEMONSTRATED UNWORTHINESS OR INCOMPETENCY
44 TO ACT AS A COMMUNITY ASSOCIATION MANAGER BY CONDUCTING
45 BUSINESS IN SUCH A MANNER AS TO SIGNIFICANTLY ENDANGER THE
46 INTEREST OF A COMMON INTEREST COMMUNITY OR OF THE PUBLIC;
47 (l) IN THE CASE OF A MANAGER WHO EMPLOYS OTHERS OR IS
48 DESIGNATED TO ACT ON BEHALF OF A LICENSED ENTITY, FAILING TO
49 EXERCISE REASONABLE SUPERVISION OVER THE ACTIVITIES OF EMPLOYEES
50 OR APPRENTICES;
51 (m) FAILING TO MAKE A FULL AND TRUE DISCLOSURE OF FEES,
52 CHARGES, AND REMUNERATION AS REQUIRED BY SECTION 12-61-1006;
53 (n) PROCURING, OR ATTEMPTING TO PROCURE, A LICENSE OR
54 RENEWING, REINSTATING, OR REACTIVATING, OR ATTEMPTING TO RENEW,
55 REINSTATE, OR REACTIVATE, A LICENSE BY FRAUD, MISREPRESENTATION,
1 OR DECEIT OR BY MAKING A MATERIAL MISSTATEMENT OF FACT IN AN
2 APPLICATION FOR A LICENSE;
3 (o) CLAIMING, ARRANGING FOR, OR TAKING ANY SECRET OR
4 UNDISCLOSED AMOUNT OF COMPENSATION, COMMISSION, OR PROFIT OR
5 FAILING TO REVEAL TO THE LICENSEE'S PRINCIPAL OR EMPLOYER THE FULL
6 AMOUNT OF THE LICENSEE'S COMPENSATION, COMMISSION, OR PROFIT IN
7 CONNECTION WITH ANY ACTS FOR WHICH A LICENSE IS REQUIRED UNDER
8 THIS PART 10;
9 (p) HAVING HAD A LICENSE OR A SUBDIVISION DEVELOPER'S
10 REGISTRATION SUSPENDED OR REVOKED IN ANY JURISDICTION, OR HAVING
11 HAD ANY DISCIPLINARY ACTION TAKEN AGAINST THE MANAGER OR
12 SUBDIVISION DEVELOPER IN ANY OTHER JURISDICTION IF THE LICENSEE'S
13 OR SUBDIVISION DEVELOPER'S ACTION WOULD CONSTITUTE A VIOLATION
14 OF THIS SUBSECTION (1). A CERTIFIED COPY OF THE ORDER OF
15 DISCIPLINARY ACTION IS PRIMA FACIE EVIDENCE OF SUCH DISCIPLINARY
16 ACTION.
17 (q) WITHIN THE LAST FIVE YEARS, HAVING A LICENSE,
18 REGISTRATION, OR CERTIFICATION ISSUED BY COLORADO OR ANOTHER
19 STATE REVOKED OR SUSPENDED FOR FRAUD, DECEIT, MATERIAL
20 MISREPRESENTATION, THEFT, OR BREACH OF A FIDUCIARY DUTY, AND
21 SUCH DISCIPLINE DENIED THE PERSON AUTHORIZATION TO PRACTICE AS:
22 (I) A MORTGAGE BROKER OR MORTGAGE LOAN ORIGINATOR;
23 (II) A REAL ESTATE BROKER OR SALESPERSON;
24 (III) A REAL ESTATE APPRAISER, AS DEFINED BY SECTION
25 12-61-702 (11);
103 26 (IV) AN INSURANCE PRODUCER, AS DEFINED BY SECTION 10-2-
27 (6);
28 (V) AN ATTORNEY;
29 (VI) A SECURITIES BROKER-DEALER, AS DEFINED BY SECTION
30 11-51-201 (2);
31 (VII) A SECURITIES SALES REPRESENTATIVE, AS DEFINED BY
32 SECTION 11-51-201 (14);
33 (VIII) AN INVESTMENT ADVISOR, AS DEFINED BY SECTION
34 11-51-201 (9.5); OR
35 (IX) AN INVESTMENT ADVISOR REPRESENTATIVE, AS DEFINED BY
36 SECTION 11-51-201 (9.6);
37 (r) ACTING OUTSIDE THE SCOPE OF AUTHORITY GRANTED BY THE
38 ISSUANCE OF A LICENSE; OR
39 (s) ANY OTHER CONDUCT, WHETHER OF THE SAME OR A DIFFERENT
40 CHARACTER THAN SPECIFIED IN THIS SUBSECTION (1), THAT CONSTITUTES
41 DISHONEST DEALING.
42 (2) IF A FIRM, PARTNERSHIP, LIMITED LIABILITY COMPANY,
43 ASSOCIATION, OR CORPORATION OPERATING UNDER THE LICENSE OF A
44 MANAGER DESIGNATED AND LICENSED AS A REPRESENTATIVE OF THE
45 ENTITY COMMITS ANY ACT OR PRACTICE LISTED IN SUBSECTION (1) OF
46 THIS SECTION, THE DIRECTOR MAY SUSPEND OR REVOKE THE RIGHT OF THE
47 ENTITY TO CONDUCT ITS BUSINESS UNDER THE LICENSE OF THE MANAGER,
48 WHETHER OR NOT THE DESIGNATED MANAGER HAD PERSONAL
49 KNOWLEDGE OF THE ACT OR PRACTICE AND WHETHER OR NOT THE
50 DIRECTOR SUSPENDS OR REVOKES THE INDIVIDUAL LICENSE OF ANY
51 OTHER PERSON.
52 (3) AFTER CONSULTING WITH THE ADVISORY COMMITTEE
53 CREATED IN SECTION 12-61-1015, THE DIRECTOR SHALL ADOPT RULES
54 SPECIFYING THE FORMAT OF COMPLAINTS, THE FORM AND CONTENT OF
55 NOTICES GIVEN TO MANAGERS CONCERNING COMPLAINTS, THE FORM AND
1 TIMING OF RESPONSES, AND OTHER DETAILS OF THE COMPLAINT AND
2 INVESTIGATION PROCESS. THE DIRECTOR SHALL ALSO PROVIDE
3 INFORMATION AND SUPPORT TO CONSUMERS REGARDING THE FILING OF
4 COMPLAINTS, INCLUDING EXAMPLES OF APPROPRIATE COMPLAINTS TO BE
5 FILED AGAINST MANAGERS THROUGH THE DIVISION; GENERAL
6 CATEGORIES OF VIOLATIONS TO BE SELECTED FOR COMPLAINTS WHEN
7 FILED; AND HOW THE DIVISION MAY FOLLOW UP WITH COMPLAINANTS ON
8 THE OUTCOME OF ANY COMPLAINT FILED.
9 (4) THIS PART 10 DOES NOT RELIEVE ANY PERSON FROM CIVIL
10 LIABILITY OR CRIMINAL PROSECUTION UNDER THE LAWS OF THIS STATE.
11 (5) COMPLAINTS OF RECORD IN THE OFFICE OF THE DIRECTOR AND
12 DIVISION INVESTIGATIONS, INCLUDING INVESTIGATIVE FILES, ARE CLOSED
13 TO PUBLIC INSPECTION. STIPULATIONS AND FINAL AGENCY ORDERS ARE
14 PUBLIC RECORDS SUBJECT TO SECTIONS 24-72-203 AND 24-72-204.
15 (6) WHEN A COMPLAINT OR AN INVESTIGATION DISCLOSES AN
16 INSTANCE OF MISCONDUCT THAT, IN THE OPINION OF THE DIRECTOR, DOES
17 NOT WARRANT FORMAL ACTION BY THE DIRECTOR BUT SHOULD NOT BE
18 DISMISSED AS BEING WITHOUT MERIT, THE DIRECTOR MAY SEND A LETTER
19 OF ADMONITION TO THE LICENSEE AGAINST WHOM THE COMPLAINT WAS
20 MADE AND A COPY OF THE LETTER TO THE PERSON MAKING THE
21 COMPLAINT, BUT THE LETTER MUST ADVISE THE LICENSEE THAT THE
22 LICENSEE HAS THE RIGHT TO REQUEST IN WRITING, WITHIN TWENTY DAYS
23 AFTER RECEIPT, THAT FORMAL DISCIPLINARY PROCEEDINGS BE INITIATED
24 TO ADJUDICATE THE PROPRIETY OF THE CONDUCT UPON WHICH THE
25 LETTER OF ADMONITION IS BASED. IF THE REQUEST IS TIMELY MADE, THE
26 LETTER OF ADMONITION IS VACATED, AND THE MATTER SHALL BE
27 PROCESSED BY MEANS OF FORMAL DISCIPLINARY PROCEEDINGS.
28 (7) ALL ADMINISTRATIVE FINES COLLECTED PURSUANT TO THIS
29 SECTION SHALL BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL
30 CREDIT THEM TO THE DIVISION OF REAL ESTATE CASH FUND CREATED IN
31 SECTION 12-61-111.5 (2)(b).
32 (8) WHEN THE DIVISION BECOMES AWARE OF FACTS OR
33 CIRCUMSTANCES THAT FALL WITHIN THE JURISDICTION OF A CRIMINAL
34 JUSTICE OR OTHER LAW ENFORCEMENT AUTHORITY UPON INVESTIGATION
35 OF THE ACTIVITIES OF A LICENSEE, THE DIVISION SHALL, IN ADDITION TO
36 THE EXERCISE OF ITS AUTHORITY UNDER THIS PART 10, REFER AND
37 TRANSMIT SUCH INFORMATION, WHICH MAY INCLUDE ORIGINALS OR
38 COPIES OF DOCUMENTS AND MATERIALS, TO ONE OR MORE CRIMINAL
39 JUSTICE OR OTHER LAW ENFORCEMENT AUTHORITIES FOR INVESTIGATION
40 AND PROSECUTION AS AUTHORIZED BY LAW.
41 12-61-1013. Authority of director - cease-and-desist orders -
42 rules. (1) (a) IF IT APPEARS TO THE DIRECTOR, BASED UPON CREDIBLE
43 EVIDENCE AS PRESENTED IN A WRITTEN COMPLAINT BY ANY PERSON, THAT
44 A MANAGER OR APPRENTICE IS VIOLATING THIS PART 10 OR RULES
45 ADOPTED PURSUANT TO THIS PART 10 OR THAT A PERSON IS ACTING OR
46 HAS ACTED WITHOUT THE REQUIRED LICENSE, THE DIRECTOR MAY ISSUE
47 AN ORDER TO CEASE AND DESIST THE ACTIVITY. THE ORDER MUST SET
48 FORTH THE STATUTES AND RULES THE MANAGER, APPRENTICE, OR PERSON
49 ALLEGEDLY VIOLATED, THE FACTS THAT ALLEGEDLY CONSTITUTED THE
50 VIOLATION, AND THE REQUIREMENT THAT ALL UNLAWFUL ACTS OR
51 UNLICENSED PRACTICES IMMEDIATELY CEASE.
52 (b) WITHIN TEN DAYS AFTER SERVICE OF THE ORDER TO CEASE
53 AND DESIST PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION, THE
54 RESPONDENT MAY REQUEST A HEARING ON THE QUESTION OF WHETHER
55 ACTS OR PRACTICES IN VIOLATION OF THIS PART 10 HAVE OCCURRED. THE
1 HEARING MUST BE CONDUCTED PURSUANT TO SECTIONS 24-4-104 AND
2 24-4-105.
3 (2) (a) IF IT APPEARS TO THE DIRECTOR, BASED UPON CREDIBLE
4 EVIDENCE AS PRESENTED IN A WRITTEN COMPLAINT BY ANY PERSON, THAT
5 A MANAGER OR APPRENTICE IS VIOLATING THIS PART 10 OR RULES
6 ADOPTED PURSUANT TO THIS PART 10 OR THAT A PERSON IS ACTING OR
7 HAS ACTED WITHOUT THE REQUIRED LICENSE, THEN, IN ADDITION TO ANY
8 SPECIFIC POWERS GRANTED PURSUANT TO THIS PART 10, THE DIRECTOR
9 MAY ISSUE TO THE PERSON AN ORDER TO SHOW CAUSE AS TO WHY THE
10 DIRECTOR SHOULD NOT ISSUE A FINAL ORDER DIRECTING THE PERSON TO
11 CEASE AND DESIST FROM THE UNLAWFUL ACT OR UNLICENSED PRACTICE.
12 (b) IF THE DIRECTOR HAS ISSUED AN ORDER TO SHOW CAUSE
13 PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION TO ANY PERSON, THE
14 DIRECTOR SHALL PROMPTLY GIVE THE PERSON NOTICE OF THE ISSUANCE
15 OF THE ORDER TOGETHER WITH A COPY OF THE ORDER, THE FACTUAL AND
16 LEGAL BASIS FOR THE ORDER, AND THE DATE SET BY THE DIRECTOR FOR
17 A HEARING ON THE ORDER. THE NOTICE MAY BE SERVED BY PERSONAL
18 SERVICE, BY FIRST-CLASS UNITED STATES MAIL, POSTAGE PREPAID, OR AS
19 MAY BE PRACTICABLE UPON ANY PERSON AGAINST WHOM THE ORDER IS
20 ISSUED. PERSONAL SERVICE OR MAILING OF AN ORDER OR DOCUMENT
21 PURSUANT TO THIS SUBSECTION (2) CONSTITUTES NOTICE TO THE PERSON
22 OF THE ORDER OR DOCUMENT.
23 (c) (I) THE HEARING ON AN ORDER TO SHOW CAUSE MUST BE
24 COMMENCED NO SOONER THAN TEN AND NO LATER THAN FORTY-FIVE
25 CALENDAR DAYS AFTER THE DATE OF TRANSMISSION OR SERVICE OF THE
26 NOTICE BY THE DIRECTOR AS PROVIDED IN SUBSECTION (2)(b) OF THIS
27 SECTION. THE HEARING MAY BE CONTINUED BY AGREEMENT OF ALL
28 PARTIES BASED UPON THE COMPLEXITY OF THE MATTER, NUMBER OF
29 PARTIES TO THE MATTER, AND LEGAL ISSUES PRESENTED IN THE MATTER,
30 BUT IN NO EVENT MAY THE HEARING COMMENCE LATER THAN SIXTY
31 CALENDAR DAYS AFTER THE DATE OF TRANSMISSION OR SERVICE OF THE
32 NOTICE.
33 (II) IF A PERSON AGAINST WHOM AN ORDER TO SHOW CAUSE HAS
34 BEEN ISSUED PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION DOES NOT
35 APPEAR AT THE HEARING, THE DIRECTOR MAY PRESENT EVIDENCE THAT
36 NOTICE WAS PROPERLY SENT OR SERVED UPON THE PERSON PURSUANT TO
37 SUBSECTION (2)(b) OF THIS SECTION AND ANY OTHER EVIDENCE RELATED
38 TO THE MATTER AS THE DIRECTOR DEEMS APPROPRIATE. THE DIRECTOR
39 SHALL ISSUE THE ORDER WITHIN TEN DAYS AFTER THE DIRECTOR'S
40 DETERMINATION RELATED TO REASONABLE ATTEMPTS TO NOTIFY THE
41 RESPONDENT, AND THE ORDER BECOMES FINAL AS TO THE RESPONDENT BY
42 OPERATION OF LAW. THE HEARING SHALL BE CONDUCTED PURSUANT TO
43 SECTIONS 24-4-104 AND 24-4-105.
44 (III) IF THE DIRECTOR REASONABLY FINDS THAT THE PERSON
45 AGAINST WHOM THE ORDER TO SHOW CAUSE WAS ISSUED IS ACTING OR
46 HAS ACTED WITHOUT THE REQUIRED LICENSE, OR HAS OR IS ABOUT TO
47 ENGAGE IN ACTS OR PRACTICES CONSTITUTING VIOLATIONS OF THIS PART
48 10 OR RULES ADOPTED PURSUANT TO THIS PART 10, A FINAL
49 CEASE-AND-DESIST ORDER MAY BE ISSUED, DIRECTING THE PERSON TO
50 CEASE AND DESIST FROM FURTHER UNLAWFUL ACTS OR UNLICENSED
51 PRACTICES.
52 (IV) THE DIRECTOR SHALL PROVIDE NOTICE, IN THE MANNER SET
53 FORTH IN SUBSECTION (2)(b) OF THIS SECTION, OF THE FINAL
54 CEASE-AND-DESIST ORDER WITHIN TEN CALENDAR DAYS AFTER THE
55 HEARING CONDUCTED PURSUANT TO THIS SUBSECTION (2)(c) TO EACH
1 PERSON AGAINST WHOM THE FINAL ORDER HAS BEEN ISSUED. THE FINAL
2 ORDER ISSUED PURSUANT TO SUBSECTION (2)(c)(III) OF THIS SECTION IS
3 EFFECTIVE WHEN ISSUED AND CONSTITUTES A FINAL ORDER FOR PURPOSES
4 OF JUDICIAL REVIEW.
5 (3) IF IT APPEARS TO THE DIRECTOR, BASED UPON CREDIBLE
6 EVIDENCE PRESENTED TO THE DIRECTOR, THAT A PERSON HAS ENGAGED
7 IN OR IS ABOUT TO ENGAGE IN ANY UNLICENSED ACT OR PRACTICE, ANY
8 ACT OR PRACTICE CONSTITUTING A VIOLATION OF THIS PART 10, ANY RULE
9 PROMULGATED PURSUANT TO THIS PART 10, ANY ORDER ISSUED
10 PURSUANT TO THIS PART 10, OR ANY ACT OR PRACTICE CONSTITUTING
11 GROUNDS FOR ADMINISTRATIVE SANCTION PURSUANT TO THIS PART 10,
12 THE DIRECTOR MAY ENTER INTO A STIPULATION WITH THE PERSON.
13 (4) IF A PERSON FAILS TO COMPLY WITH A FINAL
14 CEASE-AND-DESIST ORDER OR A STIPULATION, THE DIRECTOR MAY
15 REQUEST THE ATTORNEY GENERAL OR THE DISTRICT ATTORNEY FOR THE
16 JUDICIAL DISTRICT IN WHICH THE ALLEGED VIOLATION EXISTS TO BRING,
17 AND IF SO REQUESTED THE ATTORNEY SHALL BRING, SUIT FOR A
18 TEMPORARY RESTRAINING ORDER AND FOR INJUNCTIVE RELIEF TO
19 PREVENT ANY FURTHER OR CONTINUED VIOLATION OF THE FINAL ORDER.
20 (5) A PERSON AGGRIEVED BY THE FINAL CEASE-AND-DESIST
21 ORDER MAY SEEK JUDICIAL REVIEW OF THE DIRECTOR'S DETERMINATION
22 OR OF THE DIRECTOR'S FINAL ORDER AS PROVIDED IN SECTION
23 12-61-1014.".
24
25 Renumber succeeding C.R.S. sections accordingly.
26
27 Page 25, strike lines 18 through 23 and substitute:
28
29 "(7) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF
30 REGULATORY AGENCIES SHALL, IN CONSULTATION WITH THE ADVISORY
31 COMMITTEE, ADOPT RULES CONCERNING THE APPOINTMENT AND
32 REMOVAL OF COMMITTEE MEMBERS AND OPERATION OF THE ADVISORY
33 COMMITTEE AND, IN ACCORDANCE WITH THOSE RULES, MAY REMOVE AN
34 APPOINTED COMMITTEE MEMBER.
35 12-61-1016. Repeal of part. THIS PART 10 IS REPEALED,
36 EFFECTIVE SEPTEMBER 1, 2025. BEFORE THE REPEAL, THE FUNCTIONS OF".
37
38 Page 26, line 1, strike "(25)(a)(XX)" and substitute "(26)(a)(VIII)".
39
40 Page 26, line 9, strike "(25)" and substitute "(26)".
41
42 Page 26, line 10, strike "2024:" and substitute "2025:".
43
44 Page 26, line 11, strike "(XX)" and substitute "(VIII)".
45
46 Page 28, line 4, after "COORDINATING" insert "CONTRACTS FOR".
47
48 Page 28, strike line 6 and substitute:
49
50 "(V) EVALUATING APPLICATIONS FOR ARCHITECTURAL REVIEW
51 AND RECOMMENDING OR MAKING FINAL DECISIONS REGARDING THOSE
52 APPLICATIONS;".
53
54 Page 28, line 18, strike "THE" and substitute "AFTER CONSULTING WITH
55 THE ADVISORY COMMITTEE CREATED IN SECTION 12-10-1013, THE".
1 Page 29, line 7, strike "MANAGER," and substitute "MANAGER OR THE
2 EXECUTIVE BOARD,".
3
4 Page 31, line 7, strike "THE DIRECTOR MAY" and substitute "AFTER
5 CONSULTING WITH THE ADVISORY COMMITTEE CREATED IN SECTION
6 12-10-1013, THE DIRECTOR SHALL".
7
8 Page 31, line 12, strike "12-10-1012," and substitute "12-10-1014,".
9
10 Page 34, strike lines 21 and 22 and substitute:
11
12 "(I) (A) HOLD ONE OR MORE CREDENTIALS IDENTIFIED IN RULES
13 ADOPTED BY THE DIRECTOR IN CONSULTATION WITH THE ADVISORY
14 COMMITTEE CREATED IN SECTION 12-10-1013; OR".
15
16 Page 37, line 3, strike "GENERAL" and substitute "COLORADO LAW".
17
18 Page 39, strike lines 21 through 25 and substitute "UNLESS THE AMOUNT
19 OF THE FEE OR CHARGE IS EXPLICITLY DISCLOSED IN THE MANAGER'S
20 CONTRACT WITH THE HOA OR IN AN ADDENDUM TO THE CONTRACT.".
21
22 Page 43, after line 3 insert:
23
24 "12-10-1012. Investigation - revocation - actions against
25 licensee - rules. (1) THE DIRECTOR, UPON THE DIRECTOR'S OWN MOTION,
26 MAY, AND, UPON THE COMPLAINT IN WRITING OF ANY PERSON, SHALL,
27 INVESTIGATE THE ACTIVITIES OF ANY LICENSEE OR ANY PERSON WHO
28 ASSUMES TO ACT IN THE CAPACITY OF A LICENSEE WITHIN THE STATE
29 UPON THE DIRECTOR'S DETERMINATION THAT THE COMPLAINT IS VALID.
30 THE DIRECTOR, AFTER HOLDING A HEARING IN ACCORDANCE WITH THE
31 "STATE ADMINISTRATIVE PROCEDURE ACT", ARTICLE 4 OF TITLE 24, MAY
32 IMPOSE AN ADMINISTRATIVE FINE NOT TO EXCEED TWO THOUSAND FIVE
33 HUNDRED DOLLARS FOR EACH SEPARATE OFFENSE, CENSURE A LICENSEE,
34 PLACE THE LICENSEE ON PROBATION AND SET THE TERMS OF PROBATION,
35 OR TEMPORARILY SUSPEND OR PERMANENTLY REVOKE A LICENSE WHEN
36 THE LICENSEE HAS PERFORMED, IS PERFORMING, OR IS ATTEMPTING TO
37 PERFORM ANY OF THE FOLLOWING ACTS AND IS GUILTY OF:
38 (a) KNOWINGLY MAKING ANY MISREPRESENTATION OR
39 KNOWINGLY MAKING USE OF ANY FALSE OR MISLEADING ADVERTISING;
40 (b) MAKING ANY PROMISE OF A CHARACTER THAT INFLUENCES,
41 PERSUADES, OR INDUCES ANOTHER PERSON WHEN HE OR SHE COULD NOT
42 OR DID NOT INTEND TO KEEP SUCH PROMISE;
43 (c) KNOWINGLY MISREPRESENTING OR MAKING FALSE PROMISES
44 THROUGH AGENTS, ADVERTISING, OR OTHERWISE;
45 (d) VIOLATING, DIRECTLY OR INDIRECTLY, ANY APPLICABLE
46 PROVISION OF COLORADO OR FEDERAL FAIR HOUSING LAWS;
47 (e) KNOWINGLY VIOLATING OR KNOWINGLY DIRECTING OTHERS
48 TO VIOLATE CCIOA;
49 (f) FAILING TO ACCOUNT FOR OR TO REMIT, WITHIN A REASONABLE
50 TIME, ANY MONEY COMING INTO THE LICENSEE'S POSSESSION THAT
51 BELONGS TO OTHERS, WHETHER ACTING AS A COMMUNITY ASSOCIATION
52 MANAGER, APPRENTICE, OR OTHERWISE, AND FAILING TO KEEP RECORDS
53 RELATIVE TO THE MONEY, WHICH RECORDS MUST CONTAIN ANY
54 INFORMATION REQUIRED BY RULES OF THE DIRECTOR AND ARE SUBJECT
55 TO AUDIT BY THE DIRECTOR;
1 (g) CONVERTING FUNDS OF OTHERS, DIVERTING FUNDS OF OTHERS
2 WITHOUT PROPER AUTHORIZATION, COMMINGLING FUNDS OF OTHERS
3 WITH THE MANAGER'S OWN FUNDS, OR FAILING TO KEEP SUCH FUNDS OF
4 OTHERS IN A SEGREGATED ACCOUNT WITH SOME BANK OR RECOGNIZED
5 DEPOSITORY IN THIS STATE, WHICH ACCOUNT MAY BE ANY TYPE OF
6 CHECKING, DEMAND, PASSBOOK, OR STATEMENT ACCOUNT INSURED BY
7 AN AGENCY OF THE UNITED STATES GOVERNMENT, AND TO SO KEEP
8 RECORDS RELATIVE TO THE DEPOSIT THAT CONTAIN ANY INFORMATION
9 REQUIRED BY RULES OF THE DIRECTOR AND ARE SUBJECT TO AUDIT BY
10 THE DIRECTOR;
11 (h) DISREGARDING OR VIOLATING, OR AIDING OR ABETTING ANY
12 VIOLATION OF, THIS PART 10 OR ANY APPLICABLE RULE OR ORDER OF THE
13 DIRECTOR;
14 (i) PERFORMING ANY ACT THAT LEADS TO A CONVICTION OF,
15 ENTRY OF A PLEA OF GUILTY TO, OR ENTRY OF A PLEA OF NOLO
16 CONTENDERE TO ANY CRIME IN ARTICLE 3 OF TITLE 18; PARTS 1 TO 4 OF
17 ARTICLE 4 OF TITLE 18; PARTS 1 TO 5 AND 7 TO 9 OF ARTICLE 5 OF TITLE
18 18; ARTICLE 5.5 OF TITLE 18; PARTS 3, 4, AND 6 TO 8 OF ARTICLE 6 OF
19 TITLE 18; PARTS 1 AND 3 TO 8 OF ARTICLE 7 OF TITLE 18; PART 3 OF
20 ARTICLE 8 OF TITLE 18; ARTICLE 15 OF TITLE 18; ARTICLE 17 OF TITLE 18;
21 SECTION 18-18-405, 18-18-411, 18-18-412.5, 18-18-412.7, 18-18-415,
22 18-18-422, OR 18-18-423; OR ANY OTHER LIKE CRIME UNDER COLORADO
23 LAW, FEDERAL LAW, OR THE LAWS OF OTHER STATES. A CERTIFIED COPY
24 OF THE JUDGMENT OF A COURT OF COMPETENT JURISDICTION OF SUCH
25 CONVICTION OR OTHER OFFICIAL RECORD INDICATING THAT SUCH PLEA
26 WAS ENTERED IS CONCLUSIVE EVIDENCE OF SUCH CONVICTION OR PLEA IN
27 ANY HEARING UNDER THIS PART 10.
28 (j) FAILING TO IMMEDIATELY NOTIFY THE DIRECTOR IN WRITING
29 OF A CONVICTION, PLEA, OR VIOLATION COVERED BY SUBSECTION (1)(i)
30 OF THIS SECTION;
31 (k) HAVING DEMONSTRATED UNWORTHINESS OR INCOMPETENCY
32 TO ACT AS A COMMUNITY ASSOCIATION MANAGER BY CONDUCTING
33 BUSINESS IN SUCH A MANNER AS TO SIGNIFICANTLY ENDANGER THE
34 INTEREST OF A COMMON INTEREST COMMUNITY OR OF THE PUBLIC;
35 (l) IN THE CASE OF A MANAGER WHO EMPLOYS OTHERS OR IS
36 DESIGNATED TO ACT ON BEHALF OF A LICENSED ENTITY, FAILING TO
37 EXERCISE REASONABLE SUPERVISION OVER THE ACTIVITIES OF EMPLOYEES
38 OR APPRENTICES;
39 (m) FAILING TO MAKE A FULL AND TRUE DISCLOSURE OF FEES,
40 CHARGES, AND REMUNERATION AS REQUIRED BY SECTION 12-10-1006;
41 (n) PROCURING, OR ATTEMPTING TO PROCURE, A LICENSE OR
42 RENEWING, REINSTATING, OR REACTIVATING, OR ATTEMPTING TO RENEW,
43 REINSTATE, OR REACTIVATE, A LICENSE BY FRAUD, MISREPRESENTATION,
44 OR DECEIT OR BY MAKING A MATERIAL MISSTATEMENT OF FACT IN AN
45 APPLICATION FOR A LICENSE;
46 (o) CLAIMING, ARRANGING FOR, OR TAKING ANY SECRET OR
47 UNDISCLOSED AMOUNT OF COMPENSATION, COMMISSION, OR PROFIT OR
48 FAILING TO REVEAL TO THE LICENSEE'S PRINCIPAL OR EMPLOYER THE FULL
49 AMOUNT OF THE LICENSEE'S COMPENSATION, COMMISSION, OR PROFIT IN
50 CONNECTION WITH ANY ACTS FOR WHICH A LICENSE IS REQUIRED UNDER
51 THIS PART 10;
52 (p) HAVING HAD A LICENSE OR A SUBDIVISION DEVELOPER'S
53 REGISTRATION SUSPENDED OR REVOKED IN ANY JURISDICTION, OR HAVING
54 HAD ANY DISCIPLINARY ACTION TAKEN AGAINST THE MANAGER OR
55 SUBDIVISION DEVELOPER IN ANY OTHER JURISDICTION IF THE LICENSEE'S
1 OR SUBDIVISION DEVELOPER'S ACTION WOULD CONSTITUTE A VIOLATION
2 OF THIS SUBSECTION (1). A CERTIFIED COPY OF THE ORDER OF
3 DISCIPLINARY ACTION IS PRIMA FACIE EVIDENCE OF SUCH DISCIPLINARY
4 ACTION.
5 (q) WITHIN THE LAST FIVE YEARS, HAVING A LICENSE,
6 REGISTRATION, OR CERTIFICATION ISSUED BY COLORADO OR ANOTHER
7 STATE REVOKED OR SUSPENDED FOR FRAUD, DECEIT, MATERIAL
8 MISREPRESENTATION, THEFT, OR BREACH OF A FIDUCIARY DUTY, AND
9 SUCH DISCIPLINE DENIED THE PERSON AUTHORIZATION TO PRACTICE AS:
10 (I) A MORTGAGE BROKER OR MORTGAGE LOAN ORIGINATOR;
11 (II) A REAL ESTATE BROKER OR SALESPERSON;
12 (III) A REAL ESTATE APPRAISER, AS DEFINED BY SECTION
13 12-61-702 (11);
103 14 (IV) AN INSURANCE PRODUCER, AS DEFINED BY SECTION 10-2-
15 (6);
16 (V) AN ATTORNEY;
17 (VI) A SECURITIES BROKER-DEALER, AS DEFINED BY SECTION
18 11-51-201 (2);
19 (VII) A SECURITIES SALES REPRESENTATIVE, AS DEFINED BY
20 SECTION 11-51-201 (14);
21 (VIII) AN INVESTMENT ADVISOR, AS DEFINED BY SECTION
22 11-51-201 (9.5); OR
23 (IX) AN INVESTMENT ADVISOR REPRESENTATIVE, AS DEFINED BY
24 SECTION 11-51-201 (9.6);
25 (r) ACTING OUTSIDE THE SCOPE OF AUTHORITY GRANTED BY THE
26 ISSUANCE OF A LICENSE; OR
27 (s) ANY OTHER CONDUCT, WHETHER OF THE SAME OR A DIFFERENT
28 CHARACTER THAN SPECIFIED IN THIS SUBSECTION (1), THAT CONSTITUTES
29 DISHONEST DEALING.
30 (2) IF A FIRM, PARTNERSHIP, LIMITED LIABILITY COMPANY,
31 ASSOCIATION, OR CORPORATION OPERATING UNDER THE LICENSE OF A
32 MANAGER DESIGNATED AND LICENSED AS A REPRESENTATIVE OF THE
33 ENTITY COMMITS ANY ACT OR PRACTICE LISTED IN SUBSECTION (1) OF
34 THIS SECTION, THE DIRECTOR MAY SUSPEND OR REVOKE THE RIGHT OF THE
35 ENTITY TO CONDUCT ITS BUSINESS UNDER THE LICENSE OF THE MANAGER,
36 WHETHER OR NOT THE DESIGNATED MANAGER HAD PERSONAL
37 KNOWLEDGE OF THE ACT OR PRACTICE AND WHETHER OR NOT THE
38 DIRECTOR SUSPENDS OR REVOKES THE INDIVIDUAL LICENSE OF ANY
39 OTHER PERSON.
40 (3) AFTER CONSULTING WITH THE ADVISORY COMMITTEE
41 CREATED IN SECTION 12-10-1015, THE DIRECTOR SHALL ADOPT RULES
42 SPECIFYING THE FORMAT OF COMPLAINTS, THE FORM AND CONTENT OF
43 NOTICES GIVEN TO MANAGERS CONCERNING COMPLAINTS, THE FORM AND
44 TIMING OF RESPONSES, AND OTHER DETAILS OF THE COMPLAINT AND
45 INVESTIGATION PROCESS. THE DIRECTOR SHALL ALSO PROVIDE
46 INFORMATION AND SUPPORT TO CONSUMERS REGARDING THE FILING OF
47 COMPLAINTS, INCLUDING EXAMPLES OF APPROPRIATE COMPLAINTS TO BE
48 FILED AGAINST MANAGERS THROUGH THE DIVISION; GENERAL
49 CATEGORIES OF VIOLATIONS TO BE SELECTED FOR COMPLAINTS WHEN
50 FILED; AND HOW THE DIVISION MAY FOLLOW UP WITH COMPLAINANTS ON
51 THE OUTCOME OF ANY COMPLAINT FILED.
52 (4) THIS PART 10 DOES NOT RELIEVE ANY PERSON FROM CIVIL
53 LIABILITY OR CRIMINAL PROSECUTION UNDER THE LAWS OF THIS STATE.
54 (5) COMPLAINTS OF RECORD IN THE OFFICE OF THE DIRECTOR AND
55 DIVISION INVESTIGATIONS, INCLUDING INVESTIGATIVE FILES, ARE CLOSED
1 TO PUBLIC INSPECTION. STIPULATIONS AND FINAL AGENCY ORDERS ARE
2 PUBLIC RECORDS SUBJECT TO SECTIONS 24-72-203 AND 24-72-204.
3 (6) WHEN A COMPLAINT OR AN INVESTIGATION DISCLOSES AN
4 INSTANCE OF MISCONDUCT THAT, IN THE OPINION OF THE DIRECTOR, DOES
5 NOT WARRANT FORMAL ACTION BY THE DIRECTOR BUT SHOULD NOT BE
6 DISMISSED AS BEING WITHOUT MERIT, THE DIRECTOR MAY SEND A LETTER
7 OF ADMONITION TO THE LICENSEE AGAINST WHOM THE COMPLAINT WAS
8 MADE AND A COPY OF THE LETTER TO THE PERSON MAKING THE
9 COMPLAINT, BUT THE LETTER MUST ADVISE THE LICENSEE THAT THE
10 LICENSEE HAS THE RIGHT TO REQUEST IN WRITING, WITHIN TWENTY DAYS
11 AFTER RECEIPT, THAT FORMAL DISCIPLINARY PROCEEDINGS BE INITIATED
12 TO ADJUDICATE THE PROPRIETY OF THE CONDUCT UPON WHICH THE
13 LETTER OF ADMONITION IS BASED. IF THE REQUEST IS TIMELY MADE, THE
14 LETTER OF ADMONITION IS VACATED, AND THE MATTER SHALL BE
15 PROCESSED BY MEANS OF FORMAL DISCIPLINARY PROCEEDINGS.
16 (7) ALL ADMINISTRATIVE FINES COLLECTED PURSUANT TO THIS
17 SECTION SHALL BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL
18 CREDIT THEM TO THE DIVISION OF REAL ESTATE CASH FUND CREATED IN
19 SECTION 12-10-215 (2)(b).
20 (8) WHEN THE DIVISION BECOMES AWARE OF FACTS OR
21 CIRCUMSTANCES THAT FALL WITHIN THE JURISDICTION OF A CRIMINAL
22 JUSTICE OR OTHER LAW ENFORCEMENT AUTHORITY UPON INVESTIGATION
23 OF THE ACTIVITIES OF A LICENSEE, THE DIVISION SHALL, IN ADDITION TO
24 THE EXERCISE OF ITS AUTHORITY UNDER THIS PART 10, REFER AND
25 TRANSMIT SUCH INFORMATION, WHICH MAY INCLUDE ORIGINALS OR
26 COPIES OF DOCUMENTS AND MATERIALS, TO ONE OR MORE CRIMINAL
27 JUSTICE OR OTHER LAW ENFORCEMENT AUTHORITIES FOR INVESTIGATION
28 AND PROSECUTION AS AUTHORIZED BY LAW.
29 12-10-1013. Authority of director - cease-and-desist orders -
30 rules. (1) (a) IF IT APPEARS TO THE DIRECTOR, BASED UPON CREDIBLE
31 EVIDENCE AS PRESENTED IN A WRITTEN COMPLAINT BY ANY PERSON, THAT
32 A MANAGER OR APPRENTICE IS VIOLATING THIS PART 10 OR RULES
33 ADOPTED PURSUANT TO THIS PART 10 OR THAT A PERSON IS ACTING OR
34 HAS ACTED WITHOUT THE REQUIRED LICENSE, THE DIRECTOR MAY ISSUE
35 AN ORDER TO CEASE AND DESIST THE ACTIVITY. THE ORDER MUST SET
36 FORTH THE STATUTES AND RULES THE MANAGER, APPRENTICE, OR PERSON
37 ALLEGEDLY VIOLATED, THE FACTS THAT ALLEGEDLY CONSTITUTED THE
38 VIOLATION, AND THE REQUIREMENT THAT ALL UNLAWFUL ACTS OR
39 UNLICENSED PRACTICES IMMEDIATELY CEASE.
40 (b) WITHIN TEN DAYS AFTER SERVICE OF THE ORDER TO CEASE
41 AND DESIST PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION, THE
42 RESPONDENT MAY REQUEST A HEARING ON THE QUESTION OF WHETHER
43 ACTS OR PRACTICES IN VIOLATION OF THIS PART 10 HAVE OCCURRED. THE
44 HEARING MUST BE CONDUCTED PURSUANT TO SECTIONS 24-4-104 AND
45 24-4-105.
46 (2) (a) IF IT APPEARS TO THE DIRECTOR, BASED UPON CREDIBLE
47 EVIDENCE AS PRESENTED IN A WRITTEN COMPLAINT BY ANY PERSON, THAT
48 A MANAGER OR APPRENTICE IS VIOLATING THIS PART 10 OR RULES
49 ADOPTED PURSUANT TO THIS PART 10 OR THAT A PERSON IS ACTING OR
50 HAS ACTED WITHOUT THE REQUIRED LICENSE, THEN, IN ADDITION TO ANY
51 SPECIFIC POWERS GRANTED PURSUANT TO THIS PART 10, THE DIRECTOR
52 MAY ISSUE TO THE PERSON AN ORDER TO SHOW CAUSE AS TO WHY THE
53 DIRECTOR SHOULD NOT ISSUE A FINAL ORDER DIRECTING THE PERSON TO
54 CEASE AND DESIST FROM THE UNLAWFUL ACT OR UNLICENSED PRACTICE.
55 (b) IF THE DIRECTOR HAS ISSUED AN ORDER TO SHOW CAUSE
1 PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION TO ANY PERSON, THE
2 DIRECTOR SHALL PROMPTLY GIVE THE PERSON NOTICE OF THE ISSUANCE
3 OF THE ORDER TOGETHER WITH A COPY OF THE ORDER, THE FACTUAL AND
4 LEGAL BASIS FOR THE ORDER, AND THE DATE SET BY THE DIRECTOR FOR
5 A HEARING ON THE ORDER. THE NOTICE MAY BE SERVED BY PERSONAL
6 SERVICE, BY FIRST-CLASS UNITED STATES MAIL, POSTAGE PREPAID, OR AS
7 MAY BE PRACTICABLE UPON ANY PERSON AGAINST WHOM THE ORDER IS
8 ISSUED. PERSONAL SERVICE OR MAILING OF AN ORDER OR DOCUMENT
9 PURSUANT TO THIS SUBSECTION (2) CONSTITUTES NOTICE TO THE PERSON
10 OF THE ORDER OR DOCUMENT.
11 (c) (I) THE HEARING ON AN ORDER TO SHOW CAUSE MUST BE
12 COMMENCED NO SOONER THAN TEN AND NO LATER THAN FORTY-FIVE
13 CALENDAR DAYS AFTER THE DATE OF TRANSMISSION OR SERVICE OF THE
14 NOTICE BY THE DIRECTOR AS PROVIDED IN SUBSECTION (2)(b) OF THIS
15 SECTION. THE HEARING MAY BE CONTINUED BY AGREEMENT OF ALL
16 PARTIES BASED UPON THE COMPLEXITY OF THE MATTER, NUMBER OF
17 PARTIES TO THE MATTER, AND LEGAL ISSUES PRESENTED IN THE MATTER,
18 BUT IN NO EVENT MAY THE HEARING COMMENCE LATER THAN SIXTY
19 CALENDAR DAYS AFTER THE DATE OF TRANSMISSION OR SERVICE OF THE
20 NOTICE.
21 (II) IF A PERSON AGAINST WHOM AN ORDER TO SHOW CAUSE HAS
22 BEEN ISSUED PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION DOES NOT
23 APPEAR AT THE HEARING, THE DIRECTOR MAY PRESENT EVIDENCE THAT
24 NOTICE WAS PROPERLY SENT OR SERVED UPON THE PERSON PURSUANT TO
25 SUBSECTION (2)(b) OF THIS SECTION AND ANY OTHER EVIDENCE RELATED
26 TO THE MATTER AS THE DIRECTOR DEEMS APPROPRIATE. THE DIRECTOR
27 SHALL ISSUE THE ORDER WITHIN TEN DAYS AFTER THE DIRECTOR'S
28 DETERMINATION RELATED TO REASONABLE ATTEMPTS TO NOTIFY THE
29 RESPONDENT, AND THE ORDER BECOMES FINA
House Journal, April 25
28 Amendment No. 1, Transportation & Local Government Report, dated
29 March 26, 2019, and placed in member's bill file; Report also printed in
30 House Journal, March 27, 2019.
31
32 Amendment No. 2, by Representative(s) Titone.
33
34 Amend the Transportation and Local Government Committee Report,
35 dated March 26, 2019, page 2, line 15, after "FINE" insert "ON A SLIDING
36 SCALE, BASED ON THE SEVERITY OF THE OFFENSE, BUT".
37
38 Page 10, line 8, after "FINE" insert "ON A SLIDING SCALE, BASED ON THE
39 SEVERITY OF THE OFFENSE, BUT".
40
41 Amendment No. 3, by Representative(s) Titone.
42
43 Amend the Transportation and Local Government Committee Report,
44 dated March 26, 2019, page 1, strikes lines 1 and 2 and substitute:
45
46 "Amend printed bill, page 4, line 4, strike "FINANCIAL, OR OTHER" and
47 substitute "OR FINANCIAL".
48
49 Page 4 of the bill, line 11, after "COORDINATING" insert "CONTRACTS
50 FOR".".
51
52 Page 1 of the report, after line 14 insert:
53
54 "Page 8 of the bill, line 10, strike "THE" and substitute "IF THERE IS
55 SUBSTANTIAL PROBABILITY OF FINANCIAL MISCONDUCT, THE".".
56
1 Page 2 of the report, after line 1 insert:
2
3 "Page 12 of the bill, line 12, strike "MAY" and substitute "SHALL".
4
5 Page 13 of the bill, line 4, strike "MAY" and substitute "SHALL".".
6
7 Page 2 of the report, after line 5 insert:
8
9 "Page 18 of the bill, strike line 19 and substitute "ESTABLISH, PUBLISH ON
10 THE DIVISION'S WEBSITE, COLLECT, AND ANNUALLY ADJUST, IN
11 ACCORDANCE WITH".".
12
13 Page 8 of the report, after line 33 insert:
14
15 "12-61-1016. Saving provision - extension of licenses in effect
16 during windup period. TO ENSURE CONTINUITY IN THE LICENSING
17 PROGRAM UNDER THIS PART 10, A MANAGER WHO, AS OF JUNE 30, 2019,
18 WAS LICENSED UNDER THIS PART 10 AND NOT SUBJECT TO A PENDING
19 REVOCATION PROCEEDING, IS DEEMED TO HAVE BEEN GRANTED A LICENSE
20 RENEWAL FOR ONE YEAR OR UNTIL THE DIRECTOR ADOPTS RULES
21 ADDRESSING THE TREATMENT OF LICENSES ISSUED BEFORE OR DURING THE
22 WIND-UP PERIOD SPECIFIED IN SECTION 24-34-104 (2)(b), WHICHEVER
23 OCCURS FIRST.".
24
25 Renumber succeeding C.R.S. section accordingly.
26
27 Amendment No. 4, by Representative(s) Titone.
28
29 Amend the Transportation and Local Government Committee Report,
30 dated March 26, 2019, page 9, after line 3 insert:
31
32 "Page 27 of the printed bill, line 24, strike "FINANCIAL, OR OTHER" and
33 substitute "OR FINANCIAL".".
34
35 Page 9 of the report, after line 16 insert:
36
37 "Page 31 of the bill, line 25, strike "THE" and substitute "IF THERE IS
38 SUBSTANTIAL PROBABILITY OF FINANCIAL MISCONDUCT, THE".".
39
40 Page 9 of the report, after line 20 insert:
41
42 "Page 35 of the bill, line 27, strike "MAY" and substitute "SHALL".
43
44 Page 36 of the bill, line 19, strike "MAY" and substitute "SHALL".".
45
46 Page 9 of the report, after line 24 insert:
47
48 "Page 42 of the bill, strike line 7 and substitute "ESTABLISH, PUBLISH ON
49 THE DIVISION'S WEBSITE, COLLECT, AND ANNUALLY ADJUST, IN
50 ACCORDANCE WITH".".
51
52 Page 16 of the report, after line 22 insert:
53
54 "12-10-1016. Saving provision - extension of licenses in effect
55 during windup period. TO ENSURE CONTINUITY IN THE LICENSING
56 PROGRAM UNDER THIS PART 10, A MANAGER WHO, AS OF JUNE 30, 2019,
1 WAS LICENSED UNDER THIS PART 10 AND NOT SUBJECT TO A PENDING
2 REVOCATION PROCEEDING, IS DEEMED TO HAVE BEEN GRANTED A LICENSE
3 RENEWAL FOR ONE YEAR OR UNTIL THE DIRECTOR ADOPTS RULES
4 ADDRESSING THE TREATMENT OF LICENSES ISSUED BEFORE OR DURING THE
5 WIND-UP PERIOD SPECIFIED IN SECTION 24-34-104 (2)(b), WHICHEVER
6 OCCURS FIRST.".
7
8 Renumber succeeding C.R.S. section accordingly.
9
10 Amendment No. 5, by Representative(s) Titone.
11
12 Amend the Transportation and Local Government Committee Report,
13 dated March 26, 2019, page 2, line 12, after the period insert "THE
14 DIRECTOR SHALL GIVE THE LICENSEE WRITTEN NOTICE BY FIRST-CLASS
15 MAIL OF THE RULE OR STATUTE IDENTIFIED AS A VALID POTENTIAL
16 VIOLATION LISTED UNDER THIS SECTION. NO LICENSEE SHALL BE ASSESSED
17 AN ADMINISTRATIVE FINE FOR A VIOLATION THAT IS NOT IDENTIFIED IN THE
18 NOTICE PROVIDED TO THE LICENSEE.".
19
20 Page 10, line 5, after the period insert "THE DIRECTOR SHALL GIVE THE
21 LICENSEE WRITTEN NOTICE BY FIRST-CLASS MAIL OF THE RULE OR STATUTE
22 IDENTIFIED AS A VALID POTENTIAL VIOLATION LISTED UNDER THIS
23 SECTION. NO LICENSEE SHALL BE ASSESSED AN ADMINISTRATIVE FINE FOR
24 A VIOLATION THAT IS NOT IDENTIFIED IN THE NOTICE PROVIDED TO THE
25 LICENSEE.".
26
27 Amendment No. 6, by Representative(s) Duran.
28
29 Amend printed bill, page 3, strike lines 6 through 8 and substitute:
30
31 "(c) ABIDES BY THE REQUIREMENTS AND PERFORMS DUTIES
32 ESTABLISHED IN RULE BY THE DIRECTOR AFTER CONSULTATION WITH THE
33 ADVISORY COMMITTEE CREATED IN SECTION 12-61-1013 FOR PURPOSES
34 OF LEARNING AND PERFORMING ANY PRACTICES THAT REQUIRE ENTRY
35 INTO THE COMMUNITY ASSOCIATION MANAGER PROFESSION.".
36
37 Page 7, strike line 22 and substitute "OVERSIGHT REQUIRED BY THE
38 DIVISION TO BECOME AN APPRENTICE AS WELL AS SPECIFYING
39 APPROPRIATE SUPERVISION, EDUCATIONAL REQUIREMENTS, SPECIFIC
40 DUTIES, AND ANY OTHER NECESSARY COMPONENTS OF THE
41 APPRENTICESHIP PROGRAM.".
42
43 Page 8, lines 15 and 16, strike "MANAGER OR APPRENTICE," and substitute
44 "MANAGER,".
45
46 Page 14, line 22, strike "LICENSE EXCEPT:" and substitute "LICENSE.".
47
48 Page 14, strike lines 23 through 27.
49
50 Page 15, strike lines 1 through 6.
51
52 Renumber succeeding C.R.S. sections accordingly.
53
54 Page 16, line 27, strike "OR APPRENTICE".
55
56 Page 18, line 24, after the semicolon add "AND".
1 Page 18, strike lines 26 and 27 and substitute "REQUIRING A CHANGE IN
2 DIRECTOR RECORDS.".
3
4 Page 19, line 4, strike "(1)(e)" and substitute "(1)(d)".
5
6 Page 19, lines 6 and 7, strike "EXCEPT AS PROVIDED IN SUBSECTION (4)
7 OF THIS SECTION, LICENSES" and substitute "LICENSES".
8
9 Page 19, strike lines 14 and 15.
10
11 Page 26, line 12, strike "AND APPRENTICES".
12
13 Amendment No. 7, by Representative(s) Duran.
14
15 Amend printed bill, page 26, strike lines 26 and 27.
16
17 Page 27, strike line 1 and substitute:
18
19 "(c) ABIDES BY THE REQUIREMENTS AND PERFORMS DUTIES
20 ESTABLISHED IN RULE BY THE DIRECTOR AFTER CONSULTATION WITH THE
21 ADVISORY COMMITTEE CREATED IN SECTION 12-61-1013 FOR PURPOSES OF
22 LEARNING AND PERFORMING ANY PRACTICES THAT REQUIRE ENTRY INTO
23 THE COMMUNITY ASSOCIATION MANAGER PROFESSION.".
24
25 Page 31, strike line 10 and substitute "OVERSIGHT REQUIRED BY THE
26 DIVISION TO BECOME AN APPRENTICE AS WELL AS SPECIFYING
27 APPROPRIATE SUPERVISION, EDUCATIONAL REQUIREMENTS, SPECIFIC
28 DUTIES, AND ANY OTHER NECESSARY COMPONENTS OF THE
29 APPRENTICESHIP PROGRAM.".
30
31 Page 32, lines 3 and 4, strike "MANAGER OR APPRENTICE," and substitute
32 "MANAGER,".
33
34 Page 38, line 10, strike "LICENSE EXCEPT:" and substitute "LICENSE.".
35
36 Page 38, strike lines 11 through 21.
37
38 Renumber succeeding C.R.S. sections accordingly.
39
40 Page 40, line 15, strike "OR APPRENTICE".
41
42 Page 42, line 12, after the semicolon add "AND".
43
44 Page 42, strike lines 14 and 15 and substitute "REQUIRING A CHANGE IN
45 DIRECTOR RECORDS.".
46
47 Page 42, line 19, strike "(1)(e)" and substitute "(1)(d)".
48
49 Page 42, lines 21 and 22, strike "EXCEPT AS PROVIDED IN SUBSECTION (4)
50 OF THIS SECTION, LICENSES" and substitute "LICENSES".
51
52 Page 43, strike lines 2 and 3.
53
54 As amended, ordered engrossed and placed on the Calendar for Third
55 Reading and Final Passage.
Senate Journal, May 2
After consideration on the merits, the Committee recommends that HB19-1212 be
amended as follows, and as so amended, be referred to the Committee on Appropriations
with favorable recommendation.
Amend reengrossed bill, page strike everything below the enacting clause
and substitute:
"SECTION 1. In Colorado Revised Statutes, recreate and
reenact, with amendments, part 10 of article 61 of title 12 as follows:
PART 10
COMMUNITY ASSOCIATION MANAGERS
12-61-1001. Definitions. AS USED IN THIS PART 10, UNLESS THE
CONTEXT OTHERWISE REQUIRES:
(1) "APPRENTICE" MEANS A PERSON WHO:
(a) HAS NOT COMPLETED THE EDUCATION AND EXAMINATION
REQUIREMENTS FOR OBTAINING A COMMUNITY ASSOCIATION MANAGER
LICENSE;
(b) IS UNDER THE CONTROL AND DIRECT SUPERVISION OF A
LICENSED COMMUNITY ASSOCIATION MANAGER; AND
(c) IS LICENSED WITH THE DIRECTOR FOR PURPOSES OF LEARNING
AND PERFORMING ANY PRACTICES THAT REQUIRE A COMMUNITY
ASSOCIATION MANAGER LICENSE.
(2) "CCIOA" MEANS THE "COLORADO COMMON INTEREST
OWNERSHIP ACT", ARTICLE 33.3 OF TITLE 38.
(3) (a) "COMMON INTEREST COMMUNITY" HAS THE MEANING SET
FORTH IN SECTION 38-33.3-103 (8); EXCEPT THAT "COMMON INTEREST
COMMUNITY" DOES NOT INCLUDE:
(I) A COMMUNITY MANAGED BY AN ASSOCIATION OR UNIT
OWNERS' ASSOCIATION IN WHICH A MAJORITY OF UNITS THAT ARE
DESIGNATED FOR RESIDENTIAL USE ARE TIME SHARE UNITS, AS DEFINED
IN SECTION 38-33-110 (7), OR CONSIST OF TIME SHARE INTERESTS, AS
DEFINED IN SECTION 12-61-401 (4); OR
(II) A COMMUNITY, RESORT, OR DEVELOPMENT REGISTERED WITH
THE DIVISION AS A TIME SHARE SUBDIVISION.
(b) AS USED IN THIS SUBSECTION (3), "MAJORITY OF UNITS" MEANS
THE UNITS TO WHICH ARE ALLOCATED MORE THAN FIFTY PERCENT OF THE
ALLOCATED INTERESTS IN THE COMMON INTEREST COMMUNITY
APPURTENANT TO ALL UNITS THAT ARE DESIGNATED FOR RESIDENTIAL
USE.
(4) (a) "COMMUNITY ASSOCIATION MANAGEMENT" MEANS ANY OF
THE FOLLOWING PRACTICES RELATING TO THE MANAGEMENT OF A
COMMON INTEREST COMMUNITY, AT THE DIRECTION OR ON BEHALF OF ITS
EXECUTIVE BOARD:
(I) 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;
(II) EXECUTING THE RESOLUTIONS AND DECISIONS OF THE
EXECUTIVE BOARD;
(III) ENFORCING THE RIGHTS OF THE COMMON INTEREST
COMMUNITY SECURED BY STATUTE, CONTRACT, COVENANT, RULE, OR
BYLAW;
(IV) ADMINISTERING OR COORDINATING MAINTENANCE OF
PROPERTY OR FACILITIES OF THE COMMON INTEREST COMMUNITY;
(V) ADMINISTERING APPLICATIONS FOR ARCHITECTURAL REVIEW;
(VI) ARRANGING, CONDUCTING, OR COORDINATING MEETINGS OF
THE COMMON INTEREST COMMUNITY'S MEMBERSHIP OR EXECUTIVE
BOARD;
(VII) MAINTAINING THE COMMON INTEREST COMMUNITY'S
RECORDS PURSUANT TO ITS GOVERNING DOCUMENTS AND APPLICABLE
PROVISIONS OF THE CCIOA; OR
(VIII) ADMINISTERING, OR OTHERWISE EXERCISING CONTROL OF,
A COMMON INTEREST COMMUNITY'S FUNDS, INCLUDING THE
ADMINISTRATION OF A RESERVE PROGRAM FOR THE MAJOR REPAIR OR
REPLACEMENT OF CAPITAL ASSETS.
(b) "COMMUNITY ASSOCIATION MANAGEMENT" DOES NOT MEAN
THE PERFORMANCE OF ANY CLERICAL, MINISTERIAL, ACCOUNTING, OR
MAINTENANCE FUNCTION.
(5) (a) "COMMUNITY ASSOCIATION MANAGER" OR "MANAGER"
MEANS ANY PERSON, FIRM, PARTNERSHIP, LIMITED LIABILITY COMPANY,
ASSOCIATION, OR CORPORATION THAT, IN CONSIDERATION OF
COMPENSATION BY FEE, COMMISSION, SALARY, OR ANYTHING ELSE OF
VALUE OR WITH THE INTENTION OF RECEIVING OR COLLECTING SUCH
COMPENSATION, WHETHER OR NOT THE COMPENSATION IS RECEIVED BY
THE LICENSED MANAGER DIRECTLY OR BY THE LICENSED ENTITY THAT
EMPLOYS THE LICENSED MANAGER, ENGAGES IN OR OFFERS OR ATTEMPTS
TO ENGAGE IN COMMUNITY ASSOCIATION MANAGEMENT IN COLORADO.
(b) "COMMUNITY ASSOCIATION MANAGER" OR "MANAGER" DOES
NOT INCLUDE:
(I) A PERSON WHO, UNDER THE DIRECT SUPERVISION OF A
MANAGER, PERFORMS ANY CLERICAL, MINISTERIAL, ACCOUNTING, OR
MAINTENANCE FUNCTION;
(II) ANY PUBLIC OFFICIAL IN THE CONDUCT OF HIS OR HER
OFFICIAL DUTIES;
(III) A RECEIVER, TRUSTEE, ADMINISTRATOR, CONSERVATOR,
EXECUTOR, OR GUARDIAN ACTING UNDER PROPER AUTHORIZATION;
(IV) A PERSON, FIRM, PARTNERSHIP, LIMITED LIABILITY COMPANY,
OR ASSOCIATION ACTING PERSONALLY OR A CORPORATION ACTING
THROUGH ITS OFFICERS OR REGULAR SALARIED EMPLOYEES, ON BEHALF
OF THAT PERSON OR ON ITS OWN BEHALF AS PRINCIPAL IN ACQUIRING OR
IN NEGOTIATING TO ACQUIRE ANY INTEREST IN REAL ESTATE;
(V) AN ATTORNEY-AT-LAW IN CONNECTION WITH HIS OR HER
REPRESENTATION OF CLIENTS IN THE PRACTICE OF LAW;
(VI) A CORPORATION WITH RESPECT TO PROPERTY OWNED OR
LEASED BY IT, ACTING THROUGH ITS OFFICERS OR REGULAR SALARIED
EMPLOYEES, WHEN SUCH ACTS ARE INCIDENTAL AND NECESSARY IN THE
ORDINARY COURSE OF THE CORPORATION'S BUSINESS ACTIVITIES OF A
NON-PROPERTY MANAGEMENT NATURE. FOR THE PURPOSES OF THIS
SUBSECTION (5)(b), THE TERM "OFFICERS OR REGULAR SALARIED
EMPLOYEES" MEANS PERSONS REGULARLY EMPLOYED WHO DERIVE NOT
LESS THAN SEVENTY-FIVE PERCENT OF THEIR COMPENSATION FROM THE
CORPORATION IN THE FORM OF SALARIES;
(VII) AN INDEPENDENT CONTRACTOR WHO:
(A) PERFORMS ANY CLERICAL, MINISTERIAL, ACCOUNTING, OR
MAINTENANCE FUNCTION; OR
(B) IS NOT OTHERWISE ENGAGED IN THE PERFORMANCE OF
COMMUNITY ASSOCIATION MANAGEMENT; OR
(VIII) AN APPRENTICE WORKING UNDER THE DIRECT SUPERVISION
OF A LICENSED MANAGER.
(6) "DESIGNATED MANAGER" MEANS 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 BY, OR ACTING ON BEHALF OF, THE LICENSED ENTITY.
(7) "DIRECTOR" MEANS THE DIRECTOR OF THE DIVISION.
(8) "DIVISION" MEANS THE DIVISION OF REAL ESTATE IN THE
DEPARTMENT OF REGULATORY AGENCIES.
(9) "EXECUTIVE BOARD" HAS THE MEANING SET FORTH IN SECTION
38-33.3-103 (16).
(10) "HOA" OR "HOMEOWNERS' ASSOCIATION" MEANS AN
ASSOCIATION OR UNIT OWNERS' ASSOCIATION, AS DEFINED IN SECTION
38-33.3-103 (3), WHETHER ORGANIZED BEFORE, ON, OR AFTER JULY 1,
1992; EXCEPT THAT THE TERM DOES NOT INCLUDE AN ASSOCIATION OR
UNIT OWNERS' ASSOCIATION IN WHICH A MAJORITY OF UNITS THAT ARE
DESIGNATED FOR RESIDENTIAL USE ARE TIME SHARE UNITS, AS DEFINED
IN SECTION 38-33-110 (7). AS USED IN THIS SUBSECTION (10), "MAJORITY
OF UNITS" MEANS THE UNITS TO WHICH ARE ALLOCATED MORE THAN
FIFTY PERCENT OF THE ALLOCATED INTERESTS IN THE COMMON INTEREST
COMMUNITY APPURTENANT TO ALL UNITS THAT ARE DESIGNATED FOR
RESIDENTIAL USE.
(11) "LIMITED LIABILITY COMPANY" HAS THE MEANING SET FORTH
IN SECTION 7-80-102 (7).
12-61-1002. License required - rule-making authority -
violations - administrative and legal remedies. (1) IT IS UNLAWFUL
FOR ANY PERSON TO ENGAGE IN, OR TO HOLD OUT HIMSELF, HERSELF, OR
ITSELF AS QUALIFIED TO ENGAGE IN, THE BUSINESS OF COMMUNITY
ASSOCIATION MANAGEMENT WITHOUT FIRST HAVING OBTAINED A LICENSE
FROM THE DIRECTOR IN ACCORDANCE WITH SECTION 12-61-1003 OR
DURING ANY PERIOD IN WHICH THE MANAGER'S LICENSE IS REVOKED OR
SUSPENDED.
(2) THE DIRECTOR MAY PROMULGATE RULES AS NECESSARY TO
ENABLE THE DIRECTOR TO CARRY OUT THE DIRECTOR'S DUTIES UNDER
THIS PART 10.
(3) IN ADDITION TO CONDUCTING HEARINGS AS PROVIDED IN
SECTION 12-61-1012, THE DIRECTOR MAY ENFORCE THIS PART 10 AND
RULES ADOPTED UNDER THIS PART 10 BY TAKING ONE OR MORE OF THE
FOLLOWING ACTIONS:
(a) IF THE DIRECTOR HAS REASONABLE CAUSE TO BELIEVE THAT
A PERSON IS VIOLATING THIS PART 10 OR A RULE ADOPTED UNDER THIS
PART 10, THE DIRECTOR MAY ENTER AN ORDER REQUIRING THE PERSON TO
CEASE AND DESIST THE VIOLATION.
(b) THE DIRECTOR MAY APPLY TO A COURT OF COMPETENT
JURISDICTION FOR AN ORDER ENJOINING ANY ACT OR PRACTICE THAT
CONSTITUTES A VIOLATION OF THIS PART 10 OR OF A RULE ADOPTED
UNDER THIS PART 10, AND, UPON A SHOWING THAT A PERSON IS ENGAGING
OR INTENDS TO ENGAGE IN ANY SUCH ACT OR PRACTICE, THE COURT
SHALL GRANT AN INJUNCTION, RESTRAINING ORDER, OR OTHER
APPROPRIATE ORDER REGARDLESS OF THE EXISTENCE OF ANOTHER
REMEDY THEREFOR. ANY NOTICE, HEARING, OR DURATION OF ANY
INJUNCTION OR RESTRAINING ORDER SHALL BE MADE IN ACCORDANCE
WITH THE COLORADO RULES OF CIVIL PROCEDURE.
(c) THE DIRECTOR MAY CONDUCT AUDITS OF BUSINESS RECORDS
AND ACCOUNTS OF LICENSEES.
12-61-1003. Application for license - criminal history record
check - examination - rules. (1) (a) A PERSON DESIRING TO BECOME A
COMMUNITY ASSOCIATION MANAGER OR APPRENTICE MUST APPLY TO THE
DIRECTOR FOR A LICENSE IN THE FORM AND MANNER PRESCRIBED BY THE
DIRECTOR.
(b) BEFORE SUBMITTING AN APPLICATION FOR A LICENSE
PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION, EACH APPLICANT
MUST SUBMIT A SET OF FINGERPRINTS TO THE COLORADO BUREAU OF
INVESTIGATION FOR THE PURPOSE OF CONDUCTING A STATE AND
NATIONAL FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK
UTILIZING RECORDS OF THE COLORADO BUREAU OF INVESTIGATION AND
THE FEDERAL BUREAU OF INVESTIGATION. THE APPLICANT SHALL PAY THE
FEE ESTABLISHED BY THE COLORADO BUREAU OF INVESTIGATION FOR
CONDUCTING THE FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK
TO THE BUREAU. UPON COMPLETION OF THE CRIMINAL HISTORY RECORD
CHECK, THE BUREAU SHALL FORWARD THE RESULTS TO THE DIRECTOR.
THE DIRECTOR MAY ACQUIRE A NAME-BASED CRIMINAL HISTORY RECORD
CHECK FOR AN APPLICANT WHO HAS TWICE SUBMITTED TO A
FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK AND WHOSE
FINGERPRINTS ARE UNCLASSIFIABLE.
(2) EVERY COMMUNITY ASSOCIATION MANAGER LICENSED UNDER
THIS PART 10 SHALL MAINTAIN A PLACE OF BUSINESS WITHIN THIS STATE,
EXCEPT AS PROVIDED IN SECTION 12-61-1007. IF A COMMUNITY
ASSOCIATION MANAGER MAINTAINS MORE THAN ONE PLACE OF BUSINESS
WITHIN THE STATE, THE MANAGER IS RESPONSIBLE FOR SUPERVISING ALL
LICENSED ACTIVITIES ORIGINATING IN THOSE OFFICES.
(3) (a) THE DIRECTOR MAY REQUIRE AND PROCURE ANY PROOF
NECESSARY IN REFERENCE TO THE TRUTHFULNESS, HONESTY, AND GOOD
MORAL CHARACTER OF ANY APPLICANT FOR A LICENSE OR, IF THE
APPLICANT IS A PARTNERSHIP, LIMITED LIABILITY COMPANY, OR
CORPORATION, OF ANY PARTNER, MANAGER, DIRECTOR, OFFICER,
MEMBER, OR STOCKHOLDER IF SUCH PERSON HAS, EITHER DIRECTLY OR
INDIRECTLY, A SUBSTANTIAL INTEREST IN THE APPLICANT PRIOR TO THE
ISSUANCE OF THE LICENSE.
(b) AN APPLICANT IS INELIGIBLE FOR A LICENSE IF THE PERSON
HAS, WITHIN THE IMMEDIATELY PRECEDING TEN YEARS, HAD A LICENSE
OR CERTIFICATION AS A COMMUNITY ASSOCIATION MANAGER REVOKED
OR SUSPENDED IN COLORADO OR ANY OTHER JURISDICTION THAT
REGULATES COMMUNITY ASSOCIATION MANAGERS; EXCEPT THAT THE
DIRECTOR HAS THE DISCRETION TO ACCEPT THE PERSON'S APPLICATION IF
AT LEAST TWO YEARS HAVE ELAPSED SINCE THE DATE OF THE
REVOCATION OR SUSPENSION AND THE APPLICANT HAS PROVED TO THE
DIRECTOR THAT HE OR SHE IS FIT TO BE LICENSED AS A COMMUNITY
ASSOCIATION MANAGER IN COLORADO.
(c) IF THE DIRECTOR DETERMINES THAT THE APPLICANT HAS BEEN
CONVICTED OF A CRIME, THE DIRECTOR SHALL CONSIDER THE FOLLOWING
FACTORS WHEN DETERMINING WHETHER THE CONVICTION DISQUALIFIES
THE APPLICANT FOR A LICENSE:
(I) THE NATURE OF THE CONVICTION;
(II) WHETHER THERE IS A DIRECT RELATIONSHIP BETWEEN THE
CONVICTION AND THE DUTIES AND RESPONSIBILITIES OF LICENSURE AND
THE BEARING, IF ANY, THE CONVICTION MAY HAVE ON THE APPLICANT'S
FITNESS OR ABILITY TO PERFORM ONE OR MORE SUCH DUTIES AND
RESPONSIBILITIES, INCLUDING WHETHER THE CONVICTION WAS FOR
UNLAWFUL SEXUAL BEHAVIOR AS LISTED IN SECTION 16-22-102 (9), AND
WHETHER THE APPLICANT WOULD PLACE A RESIDENT OR THE PUBLIC IN A
VULNERABLE POSITION;
(III) ANY INFORMATION PRODUCED BY THE APPLICANT OR
PRODUCED ON THE APPLICANT'S BEHALF REGARDING HIS OR HER
REHABILITATION AND GOOD CONDUCT; AND
(IV) THE TIME THAT HAS ELAPSED SINCE THE CONVICTION.
(d) NOTWITHSTANDING SUBSECTION (3)(c) OF THIS SECTION, AN
APPLICANT IS INELIGIBLE FOR LICENSURE IF THE APPLICANT HAS, WITHIN
THE IMMEDIATELY PRECEDING TEN YEARS, BEEN CONVICTED OF AN
OFFENSE INVOLVING UNLAWFUL SEXUAL BEHAVIOR AS LISTED IN SECTION
16-22-102 (9), A BURGLARY OFFENSE, AS DEFINED IN SECTION 18-4-202
OR 18-4-203, OR ANY FELONY INVOLVING FRAUD, THEFT, LARCENY,
EMBEZZLEMENT, FRAUDULENT CONVERSION, OR MISAPPROPRIATION OF
PROPERTY.
(4) AN APPLICANT FOR A LICENSE MUST BE AT LEAST EIGHTEEN
YEARS OF AGE AND MUST FURNISH PROOF SATISFACTORY TO THE
DIRECTOR THAT THE APPLICANT HAS RECEIVED EITHER A HIGH SCHOOL
DIPLOMA OR THE EQUIVALENT GENERAL EDUCATION DEVELOPMENT
CERTIFICATION.
(5) (a) AN APPLICANT FOR A MANAGER'S LICENSE MUST:
(I) HOLD ONE OR MORE OF THE FOLLOWING CREDENTIALS:
(A) THE "CERTIFIED MANAGER OF COMMUNITY ASSOCIATIONS" OR
"CMCA" CERTIFICATION AWARDED BY THE COMMUNITY ASSOCIATION
MANAGERS INTERNATIONAL CERTIFICATION BOARD, PREVIOUSLY KNOWN
AS THE NATIONAL BOARD OF CERTIFICATION FOR COMMUNITY
ASSOCIATION MANAGERS;
(B) THE "ASSOCIATION MANAGEMENT SPECIALIST" OR "AMS"
DESIGNATION AWARDED BY THE COMMUNITY ASSOCIATIONS INSTITUTE;
(C) THE "PROFESSIONAL COMMUNITY ASSOCIATION MANAGER" OR
"PCAM" DESIGNATION AWARDED BY THE COMMUNITY ASSOCIATIONS
INSTITUTE; OR
(D) ANOTHER CREDENTIAL IDENTIFIED BY THE DIRECTOR IN
RULES;
(II) CERTIFY COMPLETION OF ANY EDUCATIONAL OR CONTINUING
EDUCATIONAL REQUIREMENTS AS DETERMINED BY THE DIRECTOR IN
RULES AND PUBLISHED ON THE DIVISION'S WEBSITE;
(III) SUBMIT TO AND PASS AN EXAMINATION WITH TWO SEPARATE
PORTIONS, WHICH MAY BE ADMINISTERED SEPARATELY. THE
EXAMINATION MUST MEASURE THE COMPETENCY OF THE APPLICANT IN
CARRYING OUT THE CORE FUNCTIONS OF COMMUNITY ASSOCIATION
MANAGEMENT, REFERRED TO AS THE "GENERAL PORTION" OF THE
EXAMINATION, AND IN UNDERSTANDING THE BASIC PROVISIONS OF LEGAL
DOCUMENTS AND COLORADO LAW WITH WHICH MANAGERS ARE
REQUIRED TO COMPLY, REFERRED TO AS THE "COLORADO LAW PORTION"
OF THE EXAMINATION. THE EXAMINATION SHALL BE PREPARED BY OR
UNDER THE SUPERVISION OF THE DIRECTOR OR THE DIRECTOR'S
DESIGNATED CONTRACTOR OR CONTRACTORS. THE DIRECTOR MAY
CONTRACT WITH ONE OR MORE INDEPENDENT TESTING SERVICES TO
DEVELOP, ADMINISTER, OR GRADE EXAMINATIONS OR TO ADMINISTER
LICENSEE RECORDS. THE CONTRACTS MAY ALLOW THE TESTING SERVICE
TO RECOVER FROM THE APPLICANT THE COSTS OF THE EXAMINATION AND
THE COSTS OF ADMINISTERING THE EXAMINATION AND LICENSE RECORDS.
THE DIRECTOR MAY CONTRACT SEPARATELY FOR THESE FUNCTIONS AND
ALLOW RECOVERED COSTS TO BE COLLECTED AND RETAINED BY A SINGLE
CONTRACTOR FOR DISTRIBUTION TO OTHER CONTRACTORS. THE DIRECTOR
MAY SET THE SEPARATE MINIMUM PASSING SCORES FOR THE GENERAL
PORTION AND THE COLORADO LAW PORTION OF THE EXAMINATION. THE
DIRECTOR SHALL PRESCRIBE THE TIMES AND PLACES AT WHICH THE
EXAMINATION AS A WHOLE IS GIVEN OR AT WHICH THE SEPARATE
PORTIONS OF THE EXAMINATION ARE GIVEN.
(IV) AN APPLICANT WHO IS CREDENTIALED PURSUANT TO
SUBSECTION (5)(a)(I)(A), (5)(a)(I)(B), OR (5)(a)(I)(C) OF THIS SECTION
AND HAS MAINTAINED THE CREDENTIAL IN GOOD STANDING, INCLUDING
HAVING COMPLETED ALL ONGOING EDUCATION REQUIRED TO MAINTAIN
THE CREDENTIAL, MUST COMPLETE THE COLORADO LAW PORTION, BUT
NEED NOT COMPLETE THE GENERAL PORTION, OF THE EXAMINATION
DESCRIBED IN SUBSECTION (5)(a)(III) OF THIS SECTION.
(b) THE SEPARATE PORTIONS OF THE EXAMINATION DEVELOPED
UNDER SUBSECTION (5)(a)(III) OF THIS SECTION MUST ASSESS AN
APPLICANT'S COMPETENCY IN THE FOLLOWING SUBJECT MATTER AREAS:
(I) FOR THE COLORADO LAW PORTION OF THE EXAMINATION,
LEGAL DOCUMENTS; STATUTES, INCLUDING THE "COLORADO COMMON
INTEREST OWNERSHIP ACT"; AND OTHER APPLICABLE PROVISIONS OF
COLORADO LAW; AND
(II) FOR THE GENERAL PORTION OF THE EXAMINATION, OTHER
CORE COMPETENCIES OF COMMUNITY ASSOCIATION MANAGEMENT, AS
SPECIFIED BY THE DIRECTOR.
(c) EXAMINATION RESULTS MEASURING AN APPLICANT'S
KNOWLEDGE OF THE MATTERS DESCRIBED IN SUBSECTION (5)(b)(I) OF
THIS SECTION ARE VALID FOR ONE YEAR. A PERSON WHO TAKES THE
EXAMINATION AND DOES NOT APPLY FOR A LICENSE WITHIN ONE YEAR
THEREAFTER MUST RETAKE THAT PORTION OF THE EXAMINATION BEFORE
APPLYING.
(d) THE DIVISION MAY ISSUE A LICENSE TO AN APPLICANT WHO
HAS HELD A COMMUNITY ASSOCIATION MANAGER LICENSE IN ANOTHER
JURISDICTION THAT REGULATES COMMUNITY ASSOCIATION MANAGERS
AND WHO HAS BEEN LICENSED FOR TWO OR MORE YEARS PRIOR TO
APPLYING FOR A COLORADO LICENSE IF THE APPLICANT ESTABLISHES
THAT HE OR SHE POSSESSES CREDENTIALS AND QUALIFICATIONS THAT ARE
SUBSTANTIVELY EQUIVALENT TO THE REQUIREMENTS IN COLORADO FOR
LICENSURE BY EXAMINATION, AS DETERMINED BY THE DIRECTOR BY
RULE. THE DIRECTOR MAY REQUIRE A PERSON SO LICENSED TO TAKE THE
PORTION OF THE EXAMINATION PERTAINING TO THE MATTERS DESCRIBED
IN SUBSECTION (5)(b)(I) OF THIS SECTION WITHIN A SPECIFIED TIME AFTER
FIRST RECEIVING A COLORADO LICENSE.
(6) (a) COMMUNITY ASSOCIATION MANAGERS' LICENSES MAY BE
GRANTED TO INDIVIDUALS, PARTNERSHIPS, LIMITED LIABILITY
COMPANIES, OR CORPORATIONS.
(b) A PARTNERSHIP, LIMITED LIABILITY COMPANY, OR
CORPORATION, IN ITS APPLICATION FOR A LICENSE, SHALL DESIGNATE A
QUALIFIED, ACTIVE MANAGER TO BE RESPONSIBLE FOR MANAGEMENT AND
SUPERVISION OF THE LICENSED ACTIONS OF THE ENTITY AND ALL PERSONS
EMPLOYED BY, OR ACTING AT ANY TIME ON BEHALF OF, THE ENTITY. A
LICENSE MAY NOT BE ISSUED TO THE ENTITY UNLESS THE MANAGER SO
DESIGNATED TAKES AND PASSES THE EXAMINATION REQUIRED BY THIS
PART 10. UPON THE MANAGER SUCCESSFULLY PASSING THE EXAMINATION
AND UPON COMPLIANCE WITH ALL OTHER REQUIREMENTS OF LAW BY THE
ENTITY AS WELL AS BY THE MANAGER, THE DIRECTOR SHALL ISSUE A
DESIGNATED MANAGER'S LICENSE TO THE MANAGER.
(c) IF THE DESIGNATED MANAGER IS REFUSED A LICENSE BY THE
DIRECTOR OR CEASES TO BE THE DESIGNATED MANAGER OF THE ENTITY,
THE ENTITY MAY DESIGNATE ANOTHER PERSON TO APPLY FOR A LICENSE,
AND THE DIRECTOR MAY ISSUE A TEMPORARY LICENSE TO PREVENT
HARDSHIP FOR A PERIOD NOT TO EXCEED NINETY DAYS TO THE PERSON SO
DESIGNATED.
(7) THE DESIGNATED MANAGER FOR ANY PARTNERSHIP, LIMITED
LIABILITY COMPANY, OR CORPORATION IS PERSONALLY RESPONSIBLE FOR
THE HANDLING OF ANY AND ALL COMMON INTEREST COMMUNITY FUNDS
RECEIVED OR DISBURSED BY THE ENTITY. IN THE EVENT OF ANY BREACH
OF DUTY BY THE ENTITY, ANY PERSON AGGRIEVED OR DAMAGED BY THE
BREACH MAY MAKE A CLAIM FOR RELIEF AGAINST THE ENTITY.
(8) A PERSON SHALL NOT:
(a) BE LICENSED AS A COMMUNITY ASSOCIATION MANAGER UNDER
MORE THAN ONE NAME; OR
(b) CONDUCT OR PROMOTE BUSINESS AS A COMMUNITY
ASSOCIATION MANAGER EXCEPT UNDER THE NAME UNDER WHICH THE
PERSON IS LICENSED.
(9) AN APPRENTICE SHALL NOT PERFORM AN ACT THAT
OTHERWISE REQUIRES A COMMUNITY ASSOCIATION MANAGER LICENSE
EXCEPT WHEN UNDER THE DIRECT SUPERVISION OF A LICENSED
COMMUNITY ASSOCIATION MANAGER.
12-61-1004. Insurance required - rules. EVERY LICENSEE
UNDER THIS PART 10, EXCEPT AN INACTIVE MANAGER OR AN ATTORNEY
LICENSEE WHO MAINTAINS A POLICY OF PROFESSIONAL MALPRACTICE
INSURANCE THAT PROVIDES COVERAGE FOR HIS OR HER ACTIVITIES UNDER
THIS PART 10, MUST BE INSURED UNDER INSURANCE NECESSARY TO
COVER ALL ACTIVITIES CONTEMPLATED UNDER THIS PART 10 IN AN
AMOUNT AND UNDER TERMS AND CONDITIONS SPECIFIED BY THE
DIRECTOR BY RULE. IN PROMULGATING RULES UNDER THIS SECTION, THE
DIRECTOR SHALL SOLICIT AND CONSIDER INFORMATION AND COMMENTS
FROM INTERESTED PERSONS.
12-61-1005. Fees and charges for contracted services and
home sales - disclosure required. (1) EVERY MANAGER, AND EVERY
AGENT OR OTHER PERSON WHO REPRESENTS OR NEGOTIATES ON BEHALF
OF A MANAGER, SHALL DISCLOSE TO THE EXECUTIVE BOARD OF EACH
HOA FOR WHICH IT PROVIDES OR OFFERS TO PROVIDE SERVICES, DURING
CONTRACT NEGOTIATIONS AND THEREAFTER ON AN ANNUAL BASIS, ALL
FEES AND OTHER AMOUNTS THAT THE MANAGER CHARGES OR WILL
CHARGE TO THE COMMON INTEREST COMMUNITY, UNIT OWNERS, AND
PURCHASERS OF UNITS IN THE COMMON INTEREST COMMUNITY FOR OR AS
A RESULT OF ANY SERVICE, PRODUCT, TRANSACTION, OR ITEM OF VALUE
PROVIDED BY THE MANAGER, ANY EMPLOYEE OR CONTRACTOR OF THE
MANAGER, OR ANY OTHER INDIVIDUAL OR ENTITY WITH WHOM THE
MANAGER ASSOCIATES IN THE PERFORMANCE OF COMMUNITY
ASSOCIATION MANAGEMENT SERVICES.
(2) NEITHER A MANAGER NOR ANY AGENT OF A MANAGER MAY
ENFORCE ANY FEE OR CHARGE, INCLUDING A TRANSFER FEE, AGAINST THE
HOA OR ANY BUYER OR SELLER OF PROPERTY SERVED BY THE HOA
UNLESS THE FEE OR CHARGE IS:
(a) EXPLICITLY DISCLOSED IN THE MANAGER'S CONTRACT WITH
THE HOA OR AN ADDENDUM TO THE CONTRACT; OR
(b) DOCUMENTED BY A CLEARLY IDENTIFIED LINE ITEM ON A REAL
ESTATE CLOSING SETTLEMENT STATEMENT.
(3) IN ADDITION TO MAKING THE DISCLOSURES REQUIRED UNDER
SUBSECTIONS (1) AND (2) OF THIS SECTION, A MANAGER SHALL DISCLOSE
TO THE EXECUTIVE BOARD ALL REMUNERATION THE MANAGER OR ANY
SUBSIDIARY, AFFILIATE, OR RELATED PERSON OR ENTITY RECEIVES OR
WILL RECEIVE, DIRECTLY OR INDIRECTLY, IN CONNECTION WITH ITS
RELATIONSHIP WITH THE COMMON INTEREST COMMUNITY.
(4) THE DIVISION MAY REGULATE, INVESTIGATE, AND TAKE
DISCIPLINARY ACTION AGAINST ANY MANAGER OR PRINCIPAL THEREOF
FOR A VIOLATION OF THIS SECTION.
12-61-1006. Licenses - issuance - contents - display. THE
DIRECTOR SHALL MAKE AVAILABLE FOR EACH LICENSEE A LICENSE IN
SUCH FORM AND SIZE AS THE DIRECTOR MAY PRESCRIBE. THE LICENSE
MUST SHOW THE NAME OF THE LICENSEE AND MAY CONTAIN SUCH OTHER
MATTER AS THE DIRECTOR PRESCRIBES.
12-61-1007. Resident licensee - nonresident licensee - consent
to service. (1) A NONRESIDENT OF THE STATE MAY BECOME A
COMMUNITY ASSOCIATION MANAGER OR APPRENTICE IN THIS STATE BY
CONFORMING TO ALL THE CONDITIONS OF THIS PART 10; EXCEPT THAT THE
NONRESIDENT MANAGER IS NOT REQUIRED TO MAINTAIN A PLACE OF
BUSINESS WITHIN THIS STATE IF THAT MANAGER MAINTAINS A DEFINITE
PLACE OF BUSINESS IN ANOTHER STATE.
(2) IF A MANAGER HAS NO REGISTERED AGENT REGISTERED IN THIS
STATE AS CONTEMPLATED BY SECTION 7-90-701, THE REGISTERED AGENT
IS NOT LOCATED UNDER ITS REGISTERED AGENT NAME AT ITS REGISTERED
AGENT ADDRESS, OR THE REGISTERED AGENT CANNOT WITH REASONABLE
DILIGENCE BE SERVED, NOTWITHSTANDING SECTION 7-90-704, THE
MANAGER MAY BE SERVED BY REGISTERED MAIL OR BY CERTIFIED MAIL,
RETURN RECEIPT REQUESTED, ADDRESSED TO THE MANAGER AT THE
MANAGER'S LAST-KNOWN ADDRESS. SERVICE IS PERFECTED UNDER THIS
SUBSECTION (2) AT THE EARLIEST OF:
(a) THE DATE THE MANAGER RECEIVES THE PROCESS, NOTICE, OR
DEMAND;
(b) THE DATE SHOWN ON THE RETURN RECEIPT, IF SIGNED BY OR
ON BEHALF OF THE MANAGER; OR
(c) FIVE DAYS AFTER MAILING.
(3) ALL APPLICATIONS MADE BY A DESIGNATED MANAGER ON
BEHALF OF A PARTNERSHIP, LIMITED LIABILITY COMPANY, OR
CORPORATION MUST CONTAIN A CERTIFICATION THAT THE MANAGER IS
AUTHORIZED TO ACT FOR THE ENTITY.
12-61-1008. Record of licensees - publications. THE DIRECTOR
SHALL MAINTAIN A RECORD OF THE NAMES AND ADDRESSES OF ALL
COMMUNITY ASSOCIATION MANAGERS LICENSED UNDER THIS PART 10,
TOGETHER WITH SUCH OTHER INFORMATION RELATIVE TO THE
ENFORCEMENT OF THIS PART 10 AS THE DIRECTOR DEEMS NECESSARY.
THE DIRECTOR SHALL PUBLISH THE NAME AND ADDRESS RECORD AND
OTHER NONPROPRIETARY INFORMATION THE DIRECTOR DEEMS USEFUL TO
THE PUBLIC ON THE DIVISION'S WEBSITE. PUBLICATION OF THE RECORD
AND OF ANY OTHER INFORMATION CIRCULATED IN QUANTITY OUTSIDE
THE EXECUTIVE BRANCH MUST BE IN ACCORDANCE WITH SECTION
24-1-136.
12-61-1009. Change of location or employment status - notice
required. (1) A COMMUNITY ASSOCIATION MANAGER LICENSED UNDER
THIS PART 10 SHALL NOTIFY THE DIRECTOR WITHIN THIRTY DAYS AFTER
ANY CHANGE OF BUSINESS LOCATION OR EMPLOYMENT. A CHANGE OF
BUSINESS ADDRESS OR EMPLOYMENT STATUS WITHOUT NOTIFICATION TO
THE DIRECTOR AUTOMATICALLY INACTIVATES THE LICENSEE'S LICENSE.
(2) FOR PURPOSES OF THIS SECTION, A CHANGE IN EMPLOYMENT
STATUS INCLUDES THE DESIGNATION OF A LICENSED COMMUNITY
ASSOCIATION MANAGER AS A NEW OR SUCCESSOR MANAGER ACTING FOR
A PARTNERSHIP, LIMITED LIABILITY COMPANY, OR CORPORATION.
12-61-1010. License fees - partnership, limited liability
company, and corporation licenses - rules. (1) THE DIRECTOR SHALL
ESTABLISH, COLLECT, AND PERIODICALLY ADJUST, IN ACCORDANCE WITH
SECTION 12-61-111.5, FEES FOR:
(a) EACH EXAMINATION;
(b) EACH MANAGER'S OR ENTITY'S ORIGINAL APPLICATION AND
LICENSE;
(c) EACH RENEWAL OR REINSTATEMENT OF A MANAGER'S LICENSE;
(d) ANY CHANGE OF NAME, ADDRESS, OR EMPLOYMENT STATUS
REQUIRING A CHANGE IN DIRECTOR RECORDS; AND
(e) EACH APPRENTICE'S ORIGINAL APPLICATION AND LICENSE.
(2) THE DIRECTOR SHALL TRANSMIT ALL FEES TO THE STATE
TREASURER, WHO SHALL CREDIT THEM TO THE DIVISION OF REAL ESTATE
CASH FUND, CREATED IN SECTION 12-61-111.5 (2)(b). FEES COLLECTED
UNDER SUBSECTIONS (1)(b), (1)(c), (1)(d), AND (1)(e) OF THIS SECTION
ARE NONREFUNDABLE.
(3) EXCEPT AS PROVIDED IN SUBSECTION (4) OF THIS SECTION,
LICENSES ARE VALID FOR UP TO THREE YEARS, SUBJECT TO EXPIRATION
AND RENEWAL ON A SCHEDULE DETERMINED BY THE DIRECTOR. THE
DIRECTOR SHALL ESTABLISH, BY RULE, THE REQUIREMENTS FOR
CONTINUING EDUCATION, REEXAMINATION, AND SUBSEQUENT CRIMINAL
HISTORY RECORD CHECKS; EXCEPT THAT THESE REQUIREMENTS MUST NOT
BE MORE STRINGENT THAN THE EQUIVALENT REQUIREMENTS FOR REAL
ESTATE BROKERS UNDER PART 1 OF THIS ARTICLE 61.
(4) AN APPRENTICE LICENSE IS VALID FOR ONE YEAR AND IS NOT
SUBJECT TO RENEWAL.
12-61-1011. Investigation - revocation - actions against
licensee. (1) THE DIRECTOR, UPON THE DIRECTOR'S OWN MOTION, MAY,
AND, UPON THE COMPLAINT IN WRITING OF ANY PERSON, SHALL,
INVESTIGATE THE ACTIVITIES OF ANY LICENSEE OR ANY PERSON WHO
ASSUMES TO ACT IN THE CAPACITY OF A LICENSEE WITHIN THE STATE. THE
DIRECTOR, AFTER HOLDING A HEARING IN ACCORDANCE WITH THE "STATE
ADMINISTRATIVE PROCEDURE ACT", ARTICLE 4 OF TITLE 24, MAY IMPOSE
AN ADMINISTRATIVE FINE NOT TO EXCEED TWO THOUSAND FIVE HUNDRED
DOLLARS FOR EACH SEPARATE OFFENSE, CENSURE A LICENSEE, PLACE THE
LICENSEE ON PROBATION AND SET THE TERMS OF PROBATION, OR
TEMPORARILY SUSPEND OR PERMANENTLY REVOKE A LICENSE WHEN THE
LICENSEE HAS PERFORMED, IS PERFORMING, OR IS ATTEMPTING TO
PERFORM ANY OF THE FOLLOWING ACTS AND IS GUILTY OF:
(a) KNOWINGLY MAKING ANY MISREPRESENTATION OR
KNOWINGLY MAKING USE OF ANY FALSE OR MISLEADING ADVERTISING;
(b) MAKING ANY PROMISE OF A CHARACTER THAT INFLUENCES,
PERSUADES, OR INDUCES ANOTHER PERSON WHEN HE OR SHE COULD NOT
OR DID NOT INTEND TO KEEP SUCH PROMISE;
(c) KNOWINGLY MISREPRESENTING OR MAKING FALSE PROMISES
THROUGH AGENTS, ADVERTISING, OR OTHERWISE;
(d) VIOLATING, DIRECTLY OR INDIRECTLY, ANY APPLICABLE
PROVISION OF COLORADO OR FEDERAL FAIR HOUSING LAWS;
(e) KNOWINGLY VIOLATING OR KNOWINGLY DIRECTING OTHERS
TO VIOLATE CCIOA;
(f) FAILING TO ACCOUNT FOR OR TO REMIT, WITHIN A REASONABLE
TIME, ANY MONEY COMING INTO THE LICENSEE'S POSSESSION THAT
BELONGS TO OTHERS, WHETHER ACTING AS A COMMUNITY ASSOCIATION
MANAGER, APPRENTICE, OR OTHERWISE, AND FAILING TO KEEP RECORDS
RELATIVE TO SAID MONEY, WHICH RECORDS MUST CONTAIN ANY
INFORMATION REQUIRED BY RULES OF THE DIRECTOR AND ARE SUBJECT
TO AUDIT BY THE DIRECTOR;
(g) CONVERTING FUNDS OF OTHERS, DIVERTING FUNDS OF OTHERS
WITHOUT PROPER AUTHORIZATION, COMMINGLING FUNDS OF OTHERS
WITH THE MANAGER'S OWN FUNDS, OR FAILING TO KEEP SUCH FUNDS OF
OTHERS IN A SEGREGATED ACCOUNT WITH SOME BANK OR RECOGNIZED
DEPOSITORY IN THIS STATE, WHICH ACCOUNT MAY BE ANY TYPE OF
CHECKING, DEMAND, PASSBOOK, OR STATEMENT ACCOUNT INSURED BY
AN AGENCY OF THE UNITED STATES GOVERNMENT, AND TO SO KEEP
RECORDS RELATIVE TO THE DEPOSIT THAT CONTAIN ANY INFORMATION
REQUIRED BY RULES OF THE DIRECTOR AND ARE SUBJECT TO AUDIT BY
THE DIRECTOR;
(h) DISREGARDING OR VIOLATING, OR AIDING OR ABETTING ANY
VIOLATION OF, THIS PART 10 OR ANY APPLICABLE RULE OR ORDER OF THE
DIRECTOR;
(i) PERFORMING ANY ACT THAT LEADS TO A CONVICTION OF,
ENTRY OF A PLEA OF GUILTY TO, OR ENTRY OF A PLEA OF NOLO
CONTENDERE TO ANY CRIME IN ARTICLE 3 OF TITLE 18; PARTS 1 TO 4 OF
ARTICLE 4 OF TITLE 18; PARTS 1 TO 5 AND 7 TO 9 OF ARTICLE 5 OF TITLE
18; ARTICLE 5.5 OF TITLE 18; PARTS 3, 4, AND 6 TO 8 OF ARTICLE 6 OF
TITLE 18; PARTS 1 AND 3 TO 8 OF ARTICLE 7 OF TITLE 18; PART 3 OF
ARTICLE 8 OF TITLE 18; ARTICLE 15 OF TITLE 18; ARTICLE 17 OF TITLE 18;
SECTION 18-18-405, 18-18-411, 18-18-412.5, 18-18-412.7, 18-18-415,
18-18-422, OR 18-18-423; OR ANY OTHER LIKE CRIME UNDER COLORADO
LAW, FEDERAL LAW, OR THE LAWS OF OTHER STATES. A CERTIFIED COPY
OF THE JUDGMENT OF A COURT OF COMPETENT JURISDICTION OF SUCH
CONVICTION OR OTHER OFFICIAL RECORD INDICATING THAT SUCH PLEA
WAS ENTERED IS CONCLUSIVE EVIDENCE OF SUCH CONVICTION OR PLEA IN
ANY HEARING UNDER THIS PART 10.
(j) FAILING TO IMMEDIATELY NOTIFY THE DIRECTOR IN WRITING
OF A CONVICTION, PLEA, OR VIOLATION PURSUANT TO SUBSECTION (1)(i)
OF THIS SECTION;
(k) HAVING DEMONSTRATED UNWORTHINESS OR INCOMPETENCY
TO ACT AS A COMMUNITY ASSOCIATION MANAGER BY CONDUCTING
BUSINESS IN SUCH A MANNER AS TO ENDANGER THE INTEREST OF THE
PUBLIC;
(l) IN THE CASE OF A MANAGER WHO EMPLOYS OTHERS OR IS
DESIGNATED TO ACT ON BEHALF OF A LICENSED ENTITY, FAILING TO
EXERCISE REASONABLE SUPERVISION OVER THE ACTIVITIES OF
EMPLOYEES;
(m) FAILING TO MAKE A FULL AND TRUE DISCLOSURE OF FEES,
CHARGES, AND REMUNERATION AS REQUIRED BY SECTION 12-61-1005;
(n) PROCURING, OR ATTEMPTING TO PROCURE, A LICENSE OR
RENEWING, REINSTATING, OR REACTIVATING, OR ATTEMPTING TO RENEW,
REINSTATE, OR REACTIVATE, A LICENSE BY FRAUD, MISREPRESENTATION,
OR DECEIT OR BY MAKING A MATERIAL MISSTATEMENT OF FACT IN AN
APPLICATION FOR A LICENSE;
(o) CLAIMING, ARRANGING FOR, OR TAKING ANY SECRET OR
UNDISCLOSED AMOUNT OF COMPENSATION, COMMISSION, OR PROFIT OR
FAILING TO REVEAL TO THE LICENSEE'S PRINCIPAL OR EMPLOYER THE FULL
AMOUNT OF THE LICENSEE'S COMPENSATION, COMMISSION, OR PROFIT IN
CONNECTION WITH ANY ACTS FOR WHICH A LICENSE IS REQUIRED UNDER
THIS PART 10;
(p) HAVING HAD A LICENSE OR A SUBDIVISION DEVELOPER'S
REGISTRATION SUSPENDED OR REVOKED IN ANY JURISDICTION, OR HAVING
HAD ANY DISCIPLINARY ACTION TAKEN AGAINST THE MANAGER OR
SUBDIVISION DEVELOPER IN ANY OTHER JURISDICTION IF THE LICENSEE'S
OR SUBDIVISION DEVELOPER'S ACTION WOULD CONSTITUTE A VIOLATION
OF THIS SUBSECTION (1). A CERTIFIED COPY OF THE ORDER OF
DISCIPLINARY ACTION IS PRIMA FACIE EVIDENCE OF SUCH DISCIPLINARY
ACTION.
(q) WITHIN THE LAST FIVE YEARS, HAVING A LICENSE,
REGISTRATION, OR CERTIFICATION ISSUED BY COLORADO OR ANOTHER
STATE REVOKED OR SUSPENDED FOR FRAUD, DECEIT, MATERIAL
MISREPRESENTATION, THEFT, OR BREACH OF A FIDUCIARY DUTY, AND
SUCH DISCIPLINE DENIED THE PERSON AUTHORIZATION TO PRACTICE AS:
(I) A MORTGAGE BROKER OR MORTGAGE LOAN ORIGINATOR;
(II) A REAL ESTATE BROKER OR SALESPERSON;
(III) A REAL ESTATE APPRAISER, AS DEFINED BY SECTION
12-61-702 (11);
(IV) AN INSURANCE PRODUCER, AS DEFINED BY SECTION 10-2-103
(6);
(V) AN ATTORNEY;
(VI) A SECURITIES BROKER-DEALER, AS DEFINED BY SECTION
11-51-201 (2);
(VII) A SECURITIES SALES REPRESENTATIVE, AS DEFINED BY
SECTION 11-51-201 (14);
(VIII) AN INVESTMENT ADVISOR, AS DEFINED BY SECTION
11-51-201 (9.5); OR
(IX) AN INVESTMENT ADVISOR REPRESENTATIVE, AS DEFINED BY
SECTION 11-51-201 (9.6);
(r) ACTING OUTSIDE THE SCOPE OF AUTHORITY GRANTED BY THE
ISSUANCE OF A LICENSE; OR
(s) ANY OTHER CONDUCT, WHETHER OF THE SAME OR A DIFFERENT
CHARACTER THAN SPECIFIED IN THIS SUBSECTION (1), THAT CONSTITUTES
DISHONEST DEALING.
(2) IF A FIRM, PARTNERSHIP, LIMITED LIABILITY COMPANY,
ASSOCIATION, OR CORPORATION OPERATING UNDER THE LICENSE OF A
MANAGER DESIGNATED AND LICENSED AS A REPRESENTATIVE OF THE
ENTITY COMMITS ANY ACT OR PRACTICE LISTED IN SUBSECTION (1) OF
THIS SECTION, THE DIRECTOR MAY SUSPEND OR REVOKE THE RIGHT OF THE
ENTITY TO CONDUCT ITS BUSINESS UNDER THE LICENSE OF THE MANAGER,
WHETHER OR NOT THE DESIGNATED MANAGER HAD PERSONAL
KNOWLEDGE OF THE ACT OR PRACTICE AND WHETHER OR NOT THE
DIRECTOR SUSPENDS OR REVOKES THE INDIVIDUAL LICENSE OF ANY
OTHER PERSON.
(3) THIS PART 10 DOES NOT
Senate Journal, May 2
HB19-1212 by Representative(s) Titone and Duran; also Senator(s) Fields and Todd--Concerning the
recreation of the community association manager licensing program.
Amendment No. 1, Finance Committee Amendment.
(Printed in Senate Journal, May 2, pages 1287-1310 and placed in members' bill files.)
Amendment No. 2(L.030), by Senator Fields.
Amend the Finance Committee Report, dated May 1, 2019, page 18, line
9, strike "(3)" and substitute "(2)".
Page 18, strike lines 36 through 41.
Page 19, strike lines 1 through 7 and substitute:
"(2) THE STAKEHOLDER GROUP SHALL MEET AT LEAST FOUR TIMES
DURING THE 2019 INTERIM AND SHALL KEEP MINUTES OF ITS MEETINGS AS
WELL AS WRITTEN SUMMARIES OF ANY DISCUSSION OR OUTREACH,
WHETHER IN THE COURSE OF A MEETING OR OTHERWISE, ON THE ISSUES
LISTED IN SUBSECTION (1) OF THIS SECTION, INCLUDING FEEDBACK
RECEIVED, RECOMMENDATIONS FROM STAKEHOLDERS, AND ANY
ADMINISTRATIVE OR STATUTORY CHANGES THAT WOULD BE REQUIRED TO
ACHIEVE THE STAKEHOLDER RECOMMENDATIONS. THESE MINUTES AND
WRITTEN SUMMARIES MUST BE INCLUDED IN THE DIVISION'S".
Page 36, line 1, strike "(3)" and substitute "(2)".
Page 36, strike lines 28 through 40 and substitute:
"(2) THE STAKEHOLDER GROUP SHALL MEET AT LEAST FOUR TIMES
DURING THE 2019 INTERIM AND SHALL KEEP MINUTES OF ITS MEETINGS AS
WELL AS WRITTEN SUMMARIES OF ANY DISCUSSION OR OUTREACH,
WHETHER IN THE COURSE OF A MEETING OR OTHERWISE, ON THE ISSUES
LISTED IN SUBSECTION (1) OF THIS SECTION, INCLUDING FEEDBACK
RECEIVED, RECOMMENDATIONS FROM STAKEHOLDERS, AND ANY
ADMINISTRATIVE OR STATUTORY CHANGES THAT WOULD BE REQUIRED TO
ACHIEVE THE STAKEHOLDER RECOMMENDATIONS. THESE MINUTES AND
WRITTEN SUMMARIES MUST BE INCLUDED IN THE DIVISION'S".
As amended, ordered revised and placed on the calendar for third reading and final
passage.