Amendments for HB22-1239
House Journal, March 10
52 HB22-1239 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 2, after line 1 insert:
2
3 "SECTION 1. Legislative declaration. (1) The general
4 assembly finds and determines that:
5 (a) The department of regulatory agencies has considered the need
6 for regulating community association managers (CAMs) through two
7 sunrise reviews and one sunset review and has concluded, in each
8 instance, that community association management companies should be
9 regulated by the state, and in the sunrise reports, concluded that regulation
10 of CAMs was necessary to protect the public;
11 (b) In response to the department's 2012 sunrise report, the general
12 assembly enacted House Bill 13-1277, which established a regulatory
13 scheme for CAMs that required all CAMs, whether individuals or
14 business entities, to obtain a license through the division of real estate;
15 (c) In its 2017 sunset review of the regulation of CAMs, the
16 department recommended continuing the regulation in order to gather
17 additional, relevant information, but proposed legislation to continue the
18 regulatory program failed in 2018 and 2019, and the regulation of CAMs
19 ceased in 2019;
20 (d) Since the termination of CAM regulation, the department
21 conducted a study and survey of the industry, homeowners, and other
22 stakeholders and found that sixty-four percent of CAMs and eighty-two
23 percent of homeowners favor regulation of CAMs to protect the public;
24 and
25 (e) Thereafter, the department conducted another sunrise review
26 and concluded that "minimal regulatory programs should be enacted to
27 ensure that CAMs who commit acts such as theft are held accountable
28 through regulatory oversight . . ." and while "regulation may not prevent
29 thefts from occurring in the future, it would potentially prevent a
30 practitioner from practicing again in Colorado."
31 (2) The general assembly therefore declares that the regulation of
32 CAMs:
33 (a) Is important to protect the public, and in particular,
34 homeowners, from financial harm and ensure businesses engaged in the
35 practice of community association management and their employees and
36 contractors have knowledge of applicable laws and are able to perform
37 community association management activities in a manner that ensures
38 homeowners are not financially harmed; and
39 (b) Must be accomplished in a manner that is least restrictive to
40 the business of community association management, is efficient, and is
41 cost-effective in order to avoid significant impacts and minimize burdens
42 on both businesses and homeowners.".
43
44 Renumber succeeding sections accordingly.
45
46 Page 5, line 8, strike "HOA;" and substitute "HOA AND THE HOA, UPON
47 ANNUAL REGISTRATION PURSUANT TO SECTION 38-33.3-401, HAS
48 DISCLOSED THE NAME OF THE INDIVIDUAL EMPLOYED OR ENGAGED BY THE
49 HOA TO PERFORM COMMUNITY ASSOCIATION MANAGEMENT FOR THE
50 HOA;".
51
52 Page 6, strike lines 9 through 18 and substitute:
53
54 "(a) MEETS THE EDUCATION REQUIREMENTS ESTABLISHED BY THE
55 DIRECTOR BY RULE;
1 (b) DEMONSTRATES KNOWLEDGE OF THE LAWS OF THIS STATE
2 THAT GOVERN COMMON INTEREST COMMUNITIES AND HOAS, INCLUDING
121 3 THE "COLORADO REVISED NONPROFIT CORPORATION ACT", ARTICLES
4 TO 137 OF TITLE 7, THE CCIOA, AND ANY OTHER LAWS SPECIFIED BY THE
5 DIRECTOR BY RULE; AND".
6
7 Reletter succeeding paragraph accordingly.
8
9 Page 7, line 19, strike "10." and substitute "10, INCLUDING RULES
10 ESTABLISHING EDUCATION REQUIREMENTS FOR CONTROLLING MANAGERS
11 AND ANY EMPLOYEES OF A LICENSED ENTITY WHO PERFORM COMMUNITY
12 ASSOCIATION MANAGEMENT ON BEHALF OF THE LICENSED ENTITY.".
13
14 Page 7, line 24, strike "IT" and substitute "ON AND AFTER JULY 1, 2023,
15 IT".
16
17 Page 9, line 14, strike "AND".
18
19 Page 9, after line 14 insert:
20
21 "(d) DEMONSTRATES THAT THE BUSINESS ENTITY HAS A POLICY
22 FOR EVALUATING THE FITNESS AND ABILITY OF ITS EMPLOYEES TO
23 PERFORM THE DUTIES OF A COMMUNITY ASSOCIATION MANAGER; AND".
24
25 Reletter succeeding paragraph accordingly.
26
27 Page 13, strike lines 18 through 21 and substitute:
28
29 "(b) THE DIRECTOR SHALL ENGAGE IN RULE-MAKING TO ESTABLISH
30 AN EQUITABLE FEE STRUCTURE THAT CONTEMPLATES THE SIZE OF THE
31 BUSINESS ENTITY, NUMBER OF EMPLOYEES PERFORMING COMMUNITY
32 ASSOCIATION MANAGEMENT ACTIVITIES FOR THE BUSINESS ENTITY, AND
33 THE NUMBER AND SIZE OF THE ASSETS MANAGED.".
34
35 Page 17, strike lines 12 and 13 and substitute:
36
37 "(I) MEET THE EDUCATION REQUIREMENTS ESTABLISHED BY THE
38 DIRECTOR BY RULE PURSUANT TO SECTION 12-10-1002 (1); OR".
39
40 Page 17, line 16, strike "OR".
41
42 Page 17, after line 16 insert:
43
44 "(m) FAILING TO PERFORM THE TERMS OF A WRITTEN AGREEMENT
45 BETWEEN THE LICENSED ENTITY AND AN HOA OR EXECUTIVE BOARD; OR".
46
47 Reletter succeeding paragraph accordingly.
48
49 Page 20, line 7, strike "2029." and substitute "2027.".
50
51 Page 20, line 10, strike "(30)(a)(VII)" and substitute "(28)(a)(VII)".
52
53 Page 20, line 13, strike "(30)" and substitute "(28)".
54
55 Page 20, line 14, strike "2029:" and substitute "2027:".