Amendments for HB24-1078
House Journal, February 15
46 HB24-1078 be amended as follows, and as so amended, be referred to
47 the Committee on Finance with favorable
48 recommendation:
49
50 Amend printed bill, strike everything below the enacting clause and
51 substitute:
52
53 "SECTION 1. Legislative declaration. (1) The general
54 assembly finds and determines that:
55
1 (a) The department of regulatory agencies (department) has
2 considered the need for regulating community association managers and
3 management companies (CAMs) through two sunrise reviews and one
4 sunset review and has concluded that community association management
5 companies should be regulated by the state to protect the public;
6 (b) In response to the department's 2012 sunrise report, the general
7 assembly enacted House Bill 13-1277, which established a regulatory
8 scheme that required all CAMs to obtain a license through the division of
9 real estate;
10 (c) In its 2017 sunset review, the department recommended
11 continuing the regulation in order to gather additional, relevant
12 information, but proposed legislation to continue the regulatory program
13 failed in 2018 and 2019, and the regulation of CAMs ceased in 2019; and
14 (d) In 2021, the department conducted another sunrise review and
15 concluded that "minimal regulatory programs should be enacted to ensure
16 that CAMs who commit acts such as theft are held accountable through
17 regulatory oversight ..." and recommended, in part, that the state regulate
18 community association management companies.
19 (2) To address these concerns, the general assembly therefore
20 declares that the regulation of community association management
21 companies:
22 (a) Is important to protect the public and, in particular,
23 homeowners from financial harm and ensure that business entities
24 engaged in the practice of community association management have
25 knowledge of applicable laws and are able to perform community
26 association management services in a manner that ensures homeowners
27 are not financially harmed; and
28 (b) Must be accomplished in a manner that is least restrictive to
29 community association management companies, is efficient, and is
30 cost-effective in order to avoid significant impacts and minimize burdens
31 on both businesses and homeowners.
32 SECTION 2. In Colorado Revised Statutes, add part 10 to article
33 10 of title 12 as follows:
10 34 PART
35 COMMUNITY ASSOCIATION MANAGEMENT COMPANIES
36 12-10-1001. Definitions - rules. AS USED IN THIS PART 10, UNLESS
37 THE CONTEXT OTHERWISE REQUIRES:
38 (1) "ASSOCIATION" OR "UNIT OWNERS' ASSOCIATION" HAS THE
39 MEANING SET FORTH IN SECTION 38-33.3-103 (3).
40 (2) "CCIOA" MEANS THE "COLORADO COMMON INTEREST
41 OWNERSHIP ACT", ARTICLE 33.3 OF TITLE 38.
42 (3) (a) EXCEPT AS PROVIDED IN SUBSECTION (3)(b) OF THIS
43 SECTION, "COMMON INTEREST COMMUNITY" HAS THE MEANING SET FORTH
44 IN SECTION 38-33.3-103 (8).
45 (b) "COMMON INTEREST COMMUNITY" DOES NOT INCLUDE:
46 (I) A COMMUNITY MANAGED BY AN ASSOCIATION IN WHICH A
47 MAJORITY OF UNITS THAT ARE DESIGNATED FOR RESIDENTIAL USE ARE
48 TIME SHARE UNITS, AS DEFINED IN SECTION 38-33-110 (7), OR TIME
49 SHARES, AS DEFINED IN SECTION 12-10-501 (4); OR
50 (II) A COMMUNITY, RESORT, OR DEVELOPMENT REGISTERED WITH
51 THE DIVISION AS A TIME SHARE SUBDIVISION.
52 (4) (a) "COMMUNITY ASSOCIATION MANAGEMENT COMPANY" OR
53 "MANAGEMENT COMPANY" MEANS A PERSON, A SOLE PROPRIETORSHIP,
54 FIRM, A PARTNERSHIP, A LIMITED LIABILITY COMPANY, AN ASSOCIATION,
55 A CORPORATION, OR ANOTHER LEGAL ENTITY THAT PROVIDES OR OFFERS
1 OR ATTEMPTS TO PROVIDE COMMUNITY ASSOCIATION MANAGEMENT
2 SERVICES IN COLORADO IN CONSIDERATION OF COMPENSATION BY FEE OR
3 ANYTHING ELSE OF VALUE OR WITH THE INTENTION OF RECEIVING OR
4 COLLECTING SUCH COMPENSATION.
5 (b) "COMMUNITY ASSOCIATION MANAGEMENT COMPANY" OR
6 "MANAGEMENT COMPANY" DOES NOT INCLUDE:
7 (I) AN INDIVIDUAL WHO IS EMPLOYED OR OTHERWISE ENGAGED BY
8 AN HOA TO PERFORM COMMUNITY ASSOCIATION MANAGEMENT SERVICES
9 FOR THE HOA, SO LONG AS THE INDIVIDUAL PERFORMS COMMUNITY
10 ASSOCIATION MANAGEMENT SERVICES FOR ONLY ONE HOA AND THE
11 HOA, UPON ANNUAL REGISTRATION PURSUANT TO SECTION 38-33.3-401,
12 HAS DISCLOSED THE NAME OF THE INDIVIDUAL AS ITS MANAGING AGENT
13 EMPLOYED OR ENGAGED BY THE HOA TO PERFORM COMMUNITY
14 ASSOCIATION MANAGEMENT SERVICES FOR THE HOA; OR
15 (II) (A) A CORPORATION, WITH RESPECT TO PROPERTY OWNED OR
16 LEASED BY THE CORPORATION, ACTING THROUGH ITS OFFICERS OR
17 REGULAR SALARIED EMPLOYEES, WHEN SUCH ACTS ARE INCIDENTAL AND
18 NECESSARY IN THE ORDINARY COURSE OF THE CORPORATION'S BUSINESS
19 ACTIVITIES AND ARE UNRELATED TO COMMUNITY ASSOCIATION
20 MANAGEMENT SERVICES.
21 (B) AS USED IN SUBSECTION (4)(b)(II)(A) OF THIS SECTION,
22 "OFFICERS OR REGULAR SALARIED EMPLOYEES" MEANS INDIVIDUALS
23 REGULARLY EMPLOYED WHO DERIVE NOT LESS THAN SEVENTY-FIVE
24 PERCENT OF THEIR COMPENSATION FROM THE CORPORATION IN THE FORM
25 OF SALARIES.
26 (5) (a) "COMMUNITY ASSOCIATION MANAGEMENT SERVICES"
27 MEANS ANY OF THE FOLLOWING SERVICES RELATING TO THE MANAGEMENT
28 OF A COMMON INTEREST COMMUNITY AT THE DIRECTION OF THE
29 EXECUTIVE BOARD OR AS SPECIFIED IN A CONTRACT FOR MANAGEMENT
30 SERVICES EXECUTED AND IN EFFECT BETWEEN A COMMUNITY ASSOCIATION
31 MANAGEMENT COMPANY AND THE COMMON INTEREST COMMUNITY:
32 (I) IN INTERACTIONS WITH MEMBERS OR NONMEMBERS OF THE
33 COMMON INTEREST COMMUNITY, ACTING WITH THE AUTHORITY OF THE
34 COMMON INTEREST COMMUNITY WITH RESPECT TO ITS BUSINESS, LEGAL,
35 FINANCIAL, OR OTHER TRANSACTIONS;
36 (II) ADMINISTERING THE RESOLUTIONS AND DECISIONS OF THE
37 EXECUTIVE BOARD;
38 (III) ENFORCING THE RIGHTS OF THE COMMON INTEREST
39 COMMUNITY SECURED BY STATUTE, CONTRACT, COVENANT, RULE, OR
40 BYLAW;
41 (IV) ADMINISTERING OR COORDINATING MAINTENANCE OF
42 PROPERTY OR FACILITIES OF THE COMMON INTEREST COMMUNITY;
43 (V) ADMINISTERING APPLICATIONS FOR ARCHITECTURAL REVIEW;
44 (VI) ARRANGING OR COORDINATING MEETINGS OF THE COMMON
45 INTEREST COMMUNITY'S MEMBERSHIP OR EXECUTIVE BOARD;
46 (VII) MAINTAINING THE COMMON INTEREST COMMUNITY'S
47 RECORDS PURSUANT TO ITS GOVERNING DOCUMENTS AND APPLICABLE
48 PROVISIONS OF THE CCIOA; OR
49 (VIII) ADMINISTERING, AS DIRECTED BY THE EXECUTIVE BOARD,
50 A COMMON INTEREST COMMUNITY'S MONEY, INCLUDING THE
51 ADMINISTRATION OF A RESERVE PROGRAM FOR THE MAJOR REPAIR OR
52 REPLACEMENT OF CAPITAL ASSETS.
53 (b) "COMMUNITY ASSOCIATION MANAGEMENT SERVICES" DO NOT
54 INCLUDE THE PERFORMANCE OF ANY CLERICAL, MINISTERIAL, OR
55 ACCOUNTING FUNCTION.
1 (6) "CONTROLLING MANAGER" MEANS AN INDIVIDUAL WHO:
2 (a) IS DESIGNATED BY THE LICENSED COMMUNITY ASSOCIATION
3 MANAGEMENT COMPANY;
4 (b) MEETS THE EDUCATION REQUIREMENTS ESTABLISHED BY THE
5 DIRECTOR BY RULE PURSUANT TO SECTION 12-10-1002;
6 (c) DEMONSTRATES KNOWLEDGE OF THE LAWS OF THIS STATE
7 THAT GOVERN COMMON INTEREST COMMUNITIES AND HOAS, INCLUDING
121 8 THE "COLORADO REVISED NONPROFIT CORPORATION ACT", ARTICLES
9 TO 137 OF TITLE 7; THE CCIOA; AND ANY OTHER LAWS SPECIFIED BY THE
10 DIRECTOR BY RULE; AND
11 (d) ON BEHALF OF A LICENSED COMMUNITY ASSOCIATION
12 MANAGEMENT COMPANY, IS RESPONSIBLE FOR:
13 (I) PERFORMING COMMUNITY ASSOCIATION MANAGEMENT
14 SERVICES AND SUPERVISING COMMUNITY ASSOCIATION MANAGEMENT
15 SERVICES PERFORMED BY INDIVIDUALS EMPLOYED BY, OR ACTING ON
16 BEHALF OF, THE LICENSED MANAGEMENT COMPANY;
17 (II) TRAINING OR SECURING TRAINING FOR LICENSED
18 MANAGEMENT COMPANY EMPLOYEES CONCERNING COMPLIANCE WITH
19 THIS PART 10; AND
20 (III) RESPONDING TO THE DIVISION REGARDING ANY MATTER
21 RELATED TO THE REQUIREMENTS OF THIS PART 10.
22 (7) "EXECUTIVE BOARD" HAS THE MEANING SET FORTH IN SECTION
23 38-33.3-103 (16).
24 (8) (a) "HOA" OR "HOMEOWNERS' ASSOCIATION" MEANS AN
25 ASSOCIATION OR UNIT OWNERS' ASSOCIATION, WHETHER ORGANIZED
26 BEFORE, ON, OR AFTER JULY 1, 1992.
27 (b) "HOA" OR "HOMEOWNERS' ASSOCIATION" DOES NOT INCLUDE
28 AN ASSOCIATION OR UNIT OWNERS' ASSOCIATION IN WHICH A MAJORITY OF
29 UNITS THAT ARE DESIGNATED FOR RESIDENTIAL USE ARE TIME SHARE
30 UNITS, AS DEFINED IN SECTION 38-33-110 (7).
31 (9) "LICENSED COMMUNITY ASSOCIATION MANAGEMENT
32 COMPANY" OR "LICENSED MANAGEMENT COMPANY" MEANS A COMMUNITY
33 ASSOCIATION MANAGEMENT COMPANY LICENSED PURSUANT TO SECTION
34 12-10-1004.
35 (10) "LIMITED LIABILITY COMPANY" HAS THE MEANING SET FORTH
36 IN SECTION 7-80-102 (7).
37 (11) "MAJORITY OF UNITS", AS USED IN SUBSECTIONS (3)(b)(I) AND
38 (8)(b) OF THIS SECTION, MEANS THE UNITS TO WHICH ARE ALLOCATED
39 MORE THAN FIFTY PERCENT OF THE ALLOCATED INTERESTS IN THE
40 COMMON INTEREST COMMUNITY APPURTENANT TO ALL UNITS THAT ARE
41 DESIGNATED FOR RESIDENTIAL USE.
42 12-10-1002. Rule-making authority - audits. (1) THE DIRECTOR
43 MAY PROMULGATE RULES AS NECESSARY TO CARRY OUT THE DIRECTOR'S
44 DUTIES UNDER THIS PART 10, INCLUDING RULES ESTABLISHING EDUCATION
45 REQUIREMENTS FOR CONTROLLING MANAGERS AND EDUCATION THAT A
46 CONTROLLING MANAGER SHALL PROVIDE OR CAUSE TO BE PROVIDED TO
47 EMPLOYEES OF A LICENSED MANAGEMENT COMPANY WHO PERFORM
48 COMMUNITY ASSOCIATION MANAGEMENT SERVICES ON BEHALF OF THE
49 LICENSED MANAGEMENT COMPANY.
50 (2) THE DIRECTOR MAY CONDUCT AUDITS OF BUSINESS RECORDS
51 AND ACCOUNTS OF LICENSED MANAGEMENT COMPANIES AND MAY
52 CONDUCT RANDOM COMPLIANCE AUDITS TO ENSURE COMPLIANCE WITH
53 THIS PART 10.
54 12-10-1003. Community association management company
55 license required - violations - injunction. (1) ON AND AFTER JULY 1,
1 2025, IT IS UNLAWFUL FOR A COMMUNITY ASSOCIATION MANAGEMENT
2 COMPANY TO OFFER OR PROVIDE COMMUNITY ASSOCIATION MANAGEMENT
3 SERVICES IN THIS STATE WITHOUT A LICENSE FROM THE DIRECTOR
4 PURSUANT TO SECTION 12-10-1004. THE DIRECTOR SHALL NOT GRANT A
5 LICENSE TO A MANAGEMENT COMPANY UNTIL THE MANAGEMENT
6 COMPANY DEMONSTRATES COMPLIANCE WITH THIS PART 10.
7 (2) IN ADDITION TO CONDUCTING HEARINGS AS PROVIDED IN
8 SECTION 12-10-1007, THE DIRECTOR MAY ENFORCE THIS PART 10 AND
9 RULES ADOPTED UNDER THIS PART 10 BY TAKING ONE OR MORE OF THE
10 FOLLOWING ACTIONS:
11 (a) IF THE DIRECTOR HAS REASONABLE CAUSE TO BELIEVE THAT A
12 PERSON IS VIOLATING THIS PART 10 OR A RULE ADOPTED UNDER THIS PART
13 10, THE DIRECTOR MAY ENTER AN ORDER REQUIRING THE PERSON TO
14 CEASE AND DESIST THE VIOLATION.
15 (b) THE DIRECTOR MAY APPLY TO A COURT OF COMPETENT
16 JURISDICTION FOR AN ORDER ENJOINING AN ACT OR PRACTICE THAT
17 CONSTITUTES A VIOLATION OF THIS PART 10, AND, UPON A SHOWING THAT
18 A LICENSED COMMUNITY ASSOCIATION MANAGEMENT COMPANY OR THE
19 CONTROLLING MANAGER OF THE LICENSED MANAGEMENT COMPANY IS
20 ENGAGING OR INTENDS TO ENGAGE IN AN ACT OR PRACTICE THAT
21 VIOLATES THIS PART 10, THE COURT SHALL GRANT AN INJUNCTION,
22 RESTRAINING ORDER, OR OTHER APPROPRIATE ORDER, REGARDLESS OF THE
23 EXISTENCE OF ANOTHER REMEDY FOR THE VIOLATION. ANY NOTICE,
24 HEARING, OR DURATION OF AN INJUNCTION OR RESTRAINING ORDER SHALL
25 BE MADE IN ACCORDANCE WITH THE COLORADO RULES OF CIVIL
26 PROCEDURE.
27 (3) IF A COMMUNITY ASSOCIATION MANAGEMENT COMPANY
28 VIOLATES THIS PART 10 BY OFFERING OR PROVIDING COMMUNITY
29 ASSOCIATION MANAGEMENT SERVICES WITHOUT A LICENSE OR BY ACTING
30 AS A LICENSED MANAGEMENT COMPANY AFTER THE MANAGEMENT
31 COMPANY'S LICENSE HAS BEEN REVOKED OR DURING ANY PERIOD FOR
32 WHICH THE LICENSE WAS SUSPENDED, THE OWNER OF THE MANAGEMENT
2 33 COMPANY OR LICENSED MANAGEMENT COMPANY COMMITS A CLASS
34 MISDEMEANOR AND SHALL BE PUNISHED AS PROVIDED IN SECTION
35 18-1.3-501.
36 12-10-1004. Community association management company
37 license - application - requirements - criminal history record check.
38 (1) A COMMUNITY ASSOCIATION MANAGEMENT COMPANY SHALL APPLY
39 FOR A LICENSE TO THE DIRECTOR IN A MANNER PRESCRIBED BY THE
40 DIRECTOR.
41 (2) UPON A COMMUNITY ASSOCIATION MANAGEMENT COMPANY'S
42 COMPLIANCE WITH SUBSECTION (3) OF THIS SECTION, THE DIRECTOR MAY
43 GRANT A COMMUNITY ASSOCIATION MANAGEMENT COMPANY LICENSE TO
44 A MANAGEMENT COMPANY THAT:
45 (a) APPLIES FOR A LICENSE IN ACCORDANCE WITH SUBSECTION (1)
46 OF THIS SECTION;
47 (b) DEMONSTRATES COMPLIANCE WITH THE INSURANCE
48 REQUIREMENTS SPECIFIED IN SECTION 12-10-1005;
49 (c) DESIGNATES A CONTROLLING MANAGER TO BE RESPONSIBLE
50 FOR THE LICENSED PRACTICES OF THE MANAGEMENT COMPANY AND FOR
51 ALL INDIVIDUALS EMPLOYED BY THE MANAGEMENT COMPANY WHO
52 PROVIDE COMMUNITY ASSOCIATION MANAGEMENT SERVICES;
53 (d) DEMONSTRATES THAT THE MANAGEMENT COMPANY HAS A
54 POLICY FOR EVALUATING THE FITNESS AND ABILITY OF ITS EMPLOYEES TO
55 PERFORM COMMUNITY ASSOCIATION MANAGEMENT SERVICES; AND
1 (e) PAYS THE FEE DETERMINED BY THE DIRECTOR PURSUANT TO
2 SECTION 12-10-1006.
3 (3) (a) THE DIRECTOR SHALL NOT ISSUE OR RENEW A LICENSE TO
4 ANY COMMUNITY ASSOCIATION MANAGEMENT COMPANY UNTIL THE
5 OWNER OF THE MANAGEMENT COMPANY, THE INDIVIDUAL DESIGNATED BY
6 THE MANAGEMENT COMPANY AS THE CONTROLLING MANAGER OF THE
7 MANAGEMENT COMPANY, AND ANY EMPLOYEE OF THE MANAGEMENT
8 COMPANY WHO PERFORMS COMMUNITY ASSOCIATION MANAGEMENT
9 SERVICES ON BEHALF OF THE MANAGEMENT COMPANY SUBMITS TO A
10 FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK. EACH
11 INDIVIDUAL SUBMITTING A SET OF FINGERPRINTS OR THE MANAGEMENT
12 COMPANY, ON BEHALF OF EACH INDIVIDUAL SUBMITTING A SET OF
13 FINGERPRINTS, SHALL PAY THE COSTS ASSOCIATED WITH THE
14 FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK.
15 (b) AN INDIVIDUAL DESCRIBED IN SUBSECTION (3)(a) OF THIS
16 SECTION SHALL HAVE THE INDIVIDUAL'S FINGERPRINTS TAKEN BY A LOCAL
17 LAW ENFORCEMENT AGENCY OR ANY THIRD PARTY APPROVED BY THE
18 COLORADO BUREAU OF INVESTIGATION FOR THE PURPOSE OF OBTAINING
19 A FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK. THE
20 INDIVIDUAL SHALL AUTHORIZE THE ENTITY TAKING THE FINGERPRINTS TO
21 SUBMIT, AND THE ENTITY SHALL SUBMIT, THE COMPLETE SET OF THE
22 APPLICANT'S FINGERPRINTS TO THE COLORADO BUREAU OF INVESTIGATION
23 FOR THE PURPOSE OF CONDUCTING A FINGERPRINT-BASED CRIMINAL
24 HISTORY RECORD CHECK.
25 (c) IF AN APPROVED THIRD PARTY TAKES AN INDIVIDUAL'S
26 FINGERPRINTS PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION, THE
27 FINGERPRINTS MAY BE ELECTRONICALLY CAPTURED USING COLORADO
28 BUREAU OF INVESTIGATION-APPROVED LIVESCAN EQUIPMENT.
29 THIRD-PARTY VENDORS SHALL NOT KEEP THE INDIVIDUAL'S INFORMATION
30 FOR MORE THAN THIRTY DAYS.
31 (d) THE COLORADO BUREAU OF INVESTIGATION SHALL USE AN
32 INDIVIDUAL'S FINGERPRINTS COLLECTED PURSUANT TO THIS SUBSECTION
33 (3) TO CONDUCT A CRIMINAL HISTORY RECORD CHECK USING THE
34 BUREAU'S RECORDS. THE COLORADO BUREAU OF INVESTIGATION SHALL
35 ALSO FORWARD THE FINGERPRINTS TO THE FEDERAL BUREAU OF
36 INVESTIGATION FOR THE PURPOSE OF CONDUCTING A FINGERPRINT-BASED
37 CRIMINAL HISTORY RECORD CHECK. THE COLORADO BUREAU OF
38 INVESTIGATION, THE INDIVIDUAL SUBMITTING TO THE FINGERPRINT-BASED
39 CRIMINAL HISTORY RECORD CHECK, THE DIRECTOR, AND THE ENTITY
40 TAKING FINGERPRINTS SHALL COMPLY WITH THE FEDERAL BUREAU OF
41 INVESTIGATION'S REQUIREMENTS TO CONDUCT A CRIMINAL HISTORY
42 RECORD CHECK.
43 (e) THE COLORADO BUREAU OF INVESTIGATION SHALL RETURN THE
44 RESULTS OF ITS CRIMINAL HISTORY RECORD CHECK TO THE DIVISION, AND
45 THE DIVISION IS AUTHORIZED TO RECEIVE THE RESULTS OF THE FEDERAL
46 BUREAU OF INVESTIGATION'S CRIMINAL HISTORY RECORD CHECK. THE
47 DIVISION SHALL USE THE INFORMATION RESULTING FROM THE CRIMINAL
48 HISTORY RECORD CHECKS TO INVESTIGATE AND DETERMINE WHETHER THE
49 OWNER OF THE COMMUNITY ASSOCIATION MANAGEMENT COMPANY IS
50 QUALIFIED TO HOLD A COMMUNITY ASSOCIATION MANAGEMENT COMPANY
51 LICENSE PURSUANT TO THIS SECTION, THE DESIGNATED INDIVIDUAL MAY
52 ACT AS THE CONTROLLING MANAGER OF THE MANAGEMENT COMPANY, OR
53 AN INDIVIDUAL MAY PERFORM COMMUNITY ASSOCIATION MANAGEMENT
54 SERVICES AS AN EMPLOYEE OF THE MANAGEMENT COMPANY.
55
1 (f) WHEN THE FEDERAL BUREAU OF INVESTIGATION IS UNABLE TO
2 COMPLETE A FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK OF
3 AN INDIVIDUAL, THE COLORADO BUREAU OF INVESTIGATION SHALL
4 INFORM THE DIVISION, AND THE DIVISION MAY CONDUCT A CRIMINAL
5 HISTORY RECORD CHECK OF THE INDIVIDUAL USING THE COLORADO
6 BUREAU OF INVESTIGATION'S RECORDS AS A SUBSTITUTE FOR THE
7 FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK REQUIRED IN THIS
8 SUBSECTION (3).
9 (g) WHEN THE RESULTS OF A CRIMINAL HISTORY RECORD CHECK
10 OF AN INDIVIDUAL PERFORMED PURSUANT TO THIS SUBSECTION (3) REVEAL
11 A RECORD OF ARREST WITHOUT A DISPOSITION, THE DIVISION SHALL
12 REQUIRE THE INDIVIDUAL TO SUBMIT TO A NAME-BASED JUDICIAL RECORD
13 CHECK, AS DEFINED IN SECTION 22-2-119.3 (6)(d). THE INDIVIDUAL OR THE
14 MANAGEMENT COMPANY, ON BEHALF OF THE INDIVIDUAL, SHALL PAY THE
15 COSTS ASSOCIATED WITH A NAME-BASED JUDICIAL RECORD CHECK.
16 (h) THE DIRECTOR MAY DENY AN APPLICATION FOR LICENSURE OR
17 REFUSE TO RENEW A LICENSE BASED ON THE OUTCOME OF A CRIMINAL
18 HISTORY RECORD CHECK CONDUCTED PURSUANT TO THIS SUBSECTION (3)
19 AND SHALL DENY AN APPLICATION IF THE OUTCOME OF THE CRIMINAL
20 HISTORY RECORD CHECK INDICATES THAT THE OWNER OF THE COMMUNITY
21 ASSOCIATION MANAGEMENT COMPANY, THE INDIVIDUAL DESIGNATED AS
22 THE CONTROLLING MANAGER, OR AN INDIVIDUAL WHO PERFORMS
23 COMMUNITY ASSOCIATION MANAGEMENT SERVICES ON BEHALF OF THE
24 MANAGEMENT COMPANY HAS, WITHIN THE IMMEDIATELY PRECEDING FIVE
25 YEARS, BEEN CONVICTED OF AN OFFENSE INVOLVING UNLAWFUL SEXUAL
26 BEHAVIOR LISTED IN SECTION 16-22-102 (9); FIRST DEGREE BURGLARY, AS
27 DESCRIBED IN SECTION 18-4-202; SECOND DEGREE BURGLARY, AS
28 DESCRIBED IN SECTION 18-4-203; OR ANY FELONY INVOLVING FRAUD,
29 THEFT, LARCENY, EMBEZZLEMENT, FRAUDULENT CONVERSION, OR
30 MISAPPROPRIATION OF PROPERTY.
31 (4) (a) THE DIRECTOR MAY DENY A LICENSE TO A COMMUNITY
32 ASSOCIATION MANAGEMENT COMPANY IF:
33 (I) THE OWNER OF THE MANAGEMENT COMPANY, THE INDIVIDUAL
34 DESIGNATED AS THE CONTROLLING MANAGER, OR AN EMPLOYEE OF THE
35 MANAGEMENT COMPANY WHO PERFORMS COMMUNITY ASSOCIATION
36 MANAGEMENT SERVICES ON BEHALF OF THE MANAGEMENT COMPANY HAS
37 PREVIOUSLY HAD, IN ANY STATE, A COMMUNITY ASSOCIATION
38 MANAGEMENT COMPANY LICENSE OR COMMUNITY ASSOCIATION MANAGER
39 REGISTRATION, LICENSE, OR CERTIFICATE REFUSED, DENIED, CANCELED,
40 SURRENDERED IN LIEU OF REVOCATION, OR REVOKED; OR
41 (II) THE MANAGEMENT COMPANY IS OWNED, IN WHOLE OR IN PART,
42 DIRECTLY OR INDIRECTLY, BY ANY PERSON WHO HAS HAD, IN ANY STATE,
43 A COMMUNITY ASSOCIATION MANAGEMENT COMPANY LICENSE OR
44 COMMUNITY ASSOCIATION MANAGER LICENSE, REGISTRATION, OR
45 CERTIFICATE REFUSED, DENIED, CANCELED, SURRENDERED IN LIEU OF
46 REVOCATION, OR REVOKED.
47 (b) IN EXERCISING THE DIRECTOR'S DISCRETION PURSUANT TO
48 SUBSECTION (4)(a) OF THIS SECTION, THE DIRECTOR SHALL CONSIDER THE
49 CIRCUMSTANCES UNDER WHICH A REGISTRATION, LICENSE, OR
50 CERTIFICATE WAS REFUSED, DENIED, CANCELED, SURRENDERED IN LIEU OF
51 REVOCATION, OR REVOKED AND WHETHER THE UNDERLYING ACTIONS ARE
52 LAWFUL AND CONSISTENT WITH PROFESSIONAL CONDUCT AND STANDARDS
53 OF CARE UNDER COLORADO LAW.
54 (5) EACH LICENSED COMMUNITY ASSOCIATION MANAGEMENT
55 COMPANY SHALL MAINTAIN A DEFINITE PLACE OF BUSINESS. IF A
1 MANAGEMENT COMPANY IS DOMICILED IN ANOTHER STATE, THE
2 CONTROLLING MANAGER DESIGNATED BY THE MANAGEMENT COMPANY IS
3 RESPONSIBLE FOR SUPERVISING ALL LICENSED ACTIVITIES THAT OCCUR IN
4 COLORADO. ALL LICENSED ACTIVITIES OCCURRING WITHIN THE STATE OF
5 COLORADO MUST OCCUR UNDER THE NAME UNDER WHICH THE LICENSED
6 MANAGEMENT COMPANY IS LICENSED OR ITS TRADE NAME ADOPTED IN
7 ACCORDANCE WITH COLORADO LAW.
8 (6) IF A COMMUNITY ASSOCIATION MANAGEMENT COMPANY THAT
9 APPLIES FOR A LICENSE PURSUANT TO THIS SECTION IS:
10 (a) A PARTNERSHIP, THE PARTNERSHIP MUST BE PROPERLY
11 REGISTERED WITH THE COLORADO DEPARTMENT OF REVENUE OR
12 PROPERLY FILED WITH THE COLORADO SECRETARY OF STATE AND IN GOOD
13 STANDING, PROOF OF WHICH MUST BE INCLUDED IN THE APPLICATION. IF
14 AN ASSUMED OR TRADE NAME IS TO BE USED, THE NAME MUST BE
15 PROPERLY FILED WITH THE COLORADO DEPARTMENT OF REVENUE OR FILED
16 AND ACCEPTED BY THE COLORADO SECRETARY OF STATE, PROOF OF WHICH
17 MUST BE INCLUDED WITH THE APPLICATION.
18 (b) A LIMITED LIABILITY COMPANY, THE LIMITED LIABILITY
19 COMPANY MUST BE PROPERLY REGISTERED WITH THE COLORADO
20 SECRETARY OF STATE AND IN GOOD STANDING, PROOF OF WHICH MUST BE
21 INCLUDED WITH THE APPLICATION. IF AN ASSUMED OR TRADE NAME IS TO
22 BE USED, THE NAME MUST BE PROPERLY FILED WITH THE COLORADO
23 SECRETARY OF STATE, PROOF OF WHICH MUST BE INCLUDED WITH THE
24 APPLICATION.
25 (c) A CORPORATION, THE CORPORATION MUST BE REGISTERED AS
26 A FOREIGN CORPORATION OR PROPERLY INCORPORATED WITH THE
27 COLORADO SECRETARY OF STATE AND IN GOOD STANDING, PROOF OF
28 WHICH MUST BE INCLUDED WITH THE APPLICATION. IF AN ASSUMED OR
29 TRADE NAME IS TO BE USED, THE NAME MUST BE PROPERLY FILED WITH
30 THE COLORADO SECRETARY OF STATE, PROOF OF WHICH MUST BE
31 INCLUDED WITH THE APPLICATION.
32 12-10-1005. Insurance required - rules. A COMMUNITY
33 ASSOCIATION MANAGEMENT COMPANY LICENSED PURSUANT TO THIS PART
34 10 MUST BE INSURED AS NECESSARY TO COVER ALL ACTIVITIES
35 CONTEMPLATED UNDER THIS PART 10 IN AN AMOUNT AND UNDER TERMS
36 AND CONDITIONS SPECIFIED BY THE DIRECTOR BY RULE. IN PROMULGATING
37 RULES UNDER THIS SECTION, THE DIRECTOR SHALL SOLICIT AND CONSIDER
38 INFORMATION AND COMMENTS FROM INTERESTED PERSONS.
39 12-10-1006. License fees - renewal - rules. (1) (a) IN
40 ACCORDANCE WITH SUBSECTION (1)(b) OF THIS SECTION, THE DIRECTOR
41 SHALL ESTABLISH, COLLECT, AND PERIODICALLY ADJUST, IN ACCORDANCE
42 WITH SECTION 12-10-215, FEES FOR:
43 (I) EACH COMMUNITY ASSOCIATION MANAGEMENT COMPANY'S
44 ORIGINAL APPLICATION AND LICENSE;
45 (II) EACH RENEWAL OR REINSTATEMENT OF A MANAGEMENT
46 COMPANY LICENSE; AND
47 (III) ANY CHANGE OF NAME, ADDRESS, OR EMPLOYMENT STATUS
48 REQUIRING A CHANGE IN DIRECTOR RECORDS.
49 (b) THE DIRECTOR SHALL ENGAGE IN RULE-MAKING TO ESTABLISH
50 AN EQUITABLE FEE STRUCTURE THAT CONTEMPLATES THE SIZE OF A
51 LICENSED MANAGEMENT COMPANY, THE NUMBER OF EMPLOYEES
52 PERFORMING COMMUNITY ASSOCIATION MANAGEMENT SERVICES FOR THE
53 LICENSED MANAGEMENT COMPANY, AND THE NUMBER AND SIZE OF THE
54 ASSETS MANAGED.
55
1 (2) THE DIRECTOR SHALL TRANSMIT ALL FEES TO THE STATE
2 TREASURER, WHO SHALL CREDIT THEM TO THE DIVISION OF REAL ESTATE
3 CASH FUND CREATED IN SECTION 12-10-215 (2)(b). FEES COLLECTED
4 PURSUANT TO THIS SECTION ARE NONREFUNDABLE.
5 (3) (a) LICENSES ARE VALID FOR UP TO TWO YEARS, SUBJECT TO
6 EXPIRATION AND RENEWAL ON A SCHEDULE DETERMINED BY THE
7 DIRECTOR.
8 (b) THE DIRECTOR SHALL ESTABLISH, BY RULE, THE REQUIREMENTS
9 FOR SUBSEQUENT CRIMINAL HISTORY RECORD CHECKS.
10 12-10-1007. Investigation - disciplinary actions - grounds for
11 discipline - rules. (1) (a) THE DIRECTOR, UPON THE DIRECTOR'S OWN
12 MOTION, MAY, AND, UPON THE WRITTEN SUBMISSION OF A PERSON OF A
13 VALID AND ACTIONABLE COMPLAINT, AS DETERMINED BY THE DIRECTOR,
14 SHALL, INVESTIGATE THE ACTIVITIES OF ANY LICENSED COMMUNITY
15 ASSOCIATION MANAGEMENT COMPANY OR ANY UNLICENSED COMMUNITY
16 ASSOCIATION MANAGEMENT COMPANY THAT ASSUMES TO ACT IN THE
17 CAPACITY OF A LICENSED MANAGEMENT COMPANY WITHIN THIS STATE.
18 AFTER HOLDING A HEARING IN ACCORDANCE WITH THE "STATE
19 ADMINISTRATIVE PROCEDURE ACT", ARTICLE 4 OF TITLE 24, AND FINDING
20 THAT A LICENSED MANAGEMENT COMPANY HAS PERFORMED, IS
21 PERFORMING, OR IS ATTEMPTING TO PERFORM ANY OF THE ACTS SPECIFIED
22 IN SUBSECTION (2) OF THIS SECTION, THE DIRECTOR MAY:
23 (I) IMPOSE AN ADMINISTRATIVE FINE NOT TO EXCEED FIVE
24 THOUSAND DOLLARS;
25 (II) CENSURE THE LICENSED MANAGEMENT COMPANY;
26 (III) ISSUE A LETTER OF ADMONITION;
27 (IV) ISSUE A LETTER OF CONCERN;
28 (V) ENTER INTO A STIPULATION WITH THE LICENSED MANAGEMENT
29 COMPANY FOR DIVERSION;
30 (VI) PLACE THE LICENSED MANAGEMENT COMPANY ON PROBATION
31 AND SET THE TERMS OF PROBATION;
32 (VII) TEMPORARILY SUSPEND THE LICENSED MANAGEMENT
33 COMPANY'S LICENSE; OR
34 (VIII) PERMANENTLY REVOKE THE LICENSED MANAGEMENT
35 COMPANY'S LICENSE.
36 (b) THE DIRECTOR SHALL DEVELOP, BY RULE, A POINTS-BASED
37 DISCIPLINARY SYSTEM TO DETERMINE THE LEVEL OF DISCIPLINE TO IMPOSE
38 ON A LICENSED MANAGEMENT COMPANY BASED ON THE POINTS ASSIGNED
39 TO EACH ACT SPECIFIED IN SUBSECTION (2) OF THIS SECTION. THE
40 POINTS-BASED DISCIPLINARY SYSTEM MUST INCLUDE A PROCESS FOR
41 REDUCING OR ELIMINATING POINTS AFTER A PERIOD OF TIME WITH NO
42 ADDITIONAL VIOLATIONS.
43 (c) THE DIRECTOR SHALL POST ON THE DIVISION'S WEBSITE A LIST
44 OF ALL LICENSED COMMUNITY ASSOCIATION MANAGEMENT COMPANIES IN
45 THIS STATE AND ANY POINTS ATTRIBUTED TO EACH LICENSED
46 MANAGEMENT COMPANY PURSUANT TO THE POINTS-BASED DISCIPLINARY
47 SYSTEM.
48 (2) THE DIRECTOR MAY TAKE DISCIPLINARY ACTION PURSUANT TO
49 SUBSECTION (1) OF THIS SECTION IF A LICENSED MANAGEMENT COMPANY
50 OR CONTROLLING MANAGER OF A LICENSED MANAGEMENT COMPANY HAS
51 ENGAGED IN, IS ENGAGING IN, OR IS ATTEMPTING TO ENGAGE IN, AND IS
52 GUILTY OF COMMITTING, ANY OF THE FOLLOWING ACTS OR OMISSIONS:
53 (a) MISMANAGING OR MISAPPROPRIATING HOA MONEY;
54 (b) KNOWINGLY VIOLATING OR KNOWINGLY DIRECTING OTHERS TO
55 VIOLATE ANY LAW OR ANY COVENANT OR RULES OF AN HOA;
1 (c) FAILING TO ACCOUNT FOR OR TO REMIT, WITHIN A REASONABLE
2 TIME, ANY MONEY IN THE LICENSED MANAGEMENT COMPANY'S POSSESSION
3 THAT BELONGS TO OTHERS, WHETHER WHILE PERFORMING COMMUNITY
4 ASSOCIATION MANAGEMENT SERVICES OR OTHERWISE, OR FAILING TO KEEP
5 RECORDS RELATIVE TO SUCH MONEY, WHICH RECORDS MUST CONTAIN ANY
6 INFORMATION REQUIRED BY RULES OF THE DIRECTOR AND ARE SUBJECT TO
7 AUDIT BY THE DIRECTOR;
8 (d) CONVERTING THE MONEY OF AN HOA OR OTHERS, DIVERTING
9 THE MONEY OF AN HOA OR OTHERS WITHOUT PROPER AUTHORIZATION,
10 COMMINGLING THE MONEY OF AN HOA OR OTHERS WITH THE LICENSED
11 MANAGEMENT COMPANY'S OWN MONEY, OR FAILING TO KEEP:
12 (I) THE MONEY OF AN HOA OR OTHERS IN A SEGREGATED
13 ACCOUNT WITH A BANK OR RECOGNIZED DEPOSITORY IN THIS STATE,
14 WHICH ACCOUNT MAY BE ANY TYPE OF CHECKING, DEMAND, PASSBOOK,
15 OR STATEMENT ACCOUNT INSURED BY AN AGENCY OF THE UNITED STATES
16 GOVERNMENT; AND
17 (II) RECORDS RELATIVE TO THE DEPOSIT OF THE FUNDS IN A
18 SEGREGATED ACCOUNT THAT INCLUDE ANY INFORMATION REQUIRED BY
19 RULES OF THE DIRECTOR AND ARE SUBJECT TO AUDIT BY THE DIRECTOR;
20 (e) DISREGARDING OR VIOLATING, OR AIDING OR ABETTING ANY
21 VIOLATION OF, THIS PART 10 OR ANY APPLICABLE RULE OR ORDER OF THE
22 DIRECTOR;
23 (f) IN THE CASE OF A CONTROLLING MANAGER ACTING ON BEHALF
24 OF THE LICENSED MANAGEMENT COMPANY, FAILING TO EXERCISE
25 REASONABLE SUPERVISION OVER THE ACTIVITIES OF EMPLOYEES OR OTHER
26 INDIVIDUALS PERFORMING COMMUNITY ASSOCIATION MANAGEMENT
27 SERVICES ON BEHALF OF THE LICENSED MANAGEMENT COMPANY;
28 (g) PROCURING A LICENSE OR RENEWING, REINSTATING, OR
29 REACTIVATING A LICENSE BY FRAUD, MISREPRESENTATION, OR DECEIT OR
30 BY MAKING A MATERIAL MISSTATEMENT OF FACT IN AN APPLICATION FOR
31 A LICENSE;
32 (h) ACTING OUTSIDE THE SCOPE OF AUTHORITY GRANTED BY THE
33 ISSUANCE OF A LICENSE;
34 (i) FAILING TO COOPERATE IN A LEGAL OR REGULATORY
35 INVESTIGATION;
36 (j) IN MAKING RECOMMENDATIONS FOR CONTRACTORS OR
37 VENDORS TO THE EXECUTIVE BOARD, FAILING TO DISCLOSE ANY
38 CONFLICTS OF INTEREST, SUCH AS FINANCIAL BENEFITS THAT MAY ACCRUE
39 TO THE LICENSED MANAGEMENT COMPANY FROM SUCH CONTRACTOR OR
40 VENDOR, INCLUDING A CONTRACTOR OR VENDOR THAT IS OWNED BY OR
41 AFFILIATED WITH THE LICENSED MANAGEMENT COMPANY;
42 (k) FAILING TO PROVIDE TO THE EXECUTIVE BOARD RECORDS OF
43 THE ASSOCIATION IN THE CUSTODY OF THE LICENSED MANAGEMENT
44 COMPANY OR THE CONTROLLING MANAGER;
45 (l) SELLING MEMBERSHIP LISTS TO A THIRD PARTY;
46 (m) SHARING PERSONAL IDENTIFYING INFORMATION OF
47 HOMEOWNERS WITHOUT PRIOR APPROVAL OF THE EXECUTIVE BOARD;
48 (n) FAILING TO PROVIDE TO THE DIRECTOR THE CRIMINAL HISTORY
49 RECORDS, IF ANY, RELATING TO THE HANDLING OR ACCOUNTING OF CLIENT
50 MONEY BY THE LICENSED MANAGEMENT COMPANY'S CONTROLLING
51 MANAGER OR AN EMPLOYEE OF THE LICENSED MANAGEMENT COMPANY
52 WHO HANDLES OR PROVIDES ACCOUNTING FOR CLIENT MONEY;
53 (o) FAILING TO ENSURE THE LICENSED MANAGEMENT COMPANY'S
54 CONTROLLING MANAGER AND ANY EMPLOYEES WHO PERFORM
55 COMMUNITY ASSOCIATION MANAGEMENT SERVICES ON BEHALF OF THE
1 LICENSED MANAGEMENT COMPANY MEET THE EDUCATION REQUIREMENTS
2 ESTABLISHED BY THE DIRECTOR BY RULE PURSUANT TO SECTION
3 12-10-1002 (1); OR
4 (p) ANY OTHER CONDUCT, WHETHER OF THE SAME CHARACTER AS
5 OR OF A DIFFERENT CHARACTER THAN ANY ACT SPECIFIED IN THIS
6 SUBSECTION (2), THAT CONSTITUTES DISHONEST DEALING.
7 (3) COMPLAINTS OF RECORD IN THE POSSESSION OF THE DIRECTOR
8 AND DIVISION INVESTIGATIONS, INCLUDING INVESTIGATIVE FILES, ARE
9 CLOSED TO PUBLIC INSPECTION. STIPULATIONS AND FINAL AGENCY ORDERS
10 ARE PUBLIC RECORDS SUBJECT TO SECTIONS 24-72-203 AND 24-72-204.
11 (4) ALL ADMINISTRATIVE FINES COLLECTED PURSUANT TO THIS
12 SECTION SHALL BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL
13 CREDIT THE MONEY TO THE DIVISION OF REAL ESTATE CASH FUND
14 CREATED IN SECTION 12-10-215 (2)(b).
15 (5) UPON INVESTIGATION OF THE ACTIVITIES OF A LICENSED OR AN
16 UNLICENSED COMMUNITY ASSOCIATION MANAGEMENT COMPANY, IF THE
17 DIVISION BECOMES AWARE OF FACTS OR CIRCUMSTANCES THAT FALL
18 WITHIN THE JURISDICTION OF A CRIMINAL JUSTICE OR OTHER LAW
19 ENFORCEMENT AUTHORITY, THE DIVISION SHALL, IN ADDITION TO
20 EXERCISING ITS AUTHORITY UNDER THIS PART 10, REFER AND TRANSMIT
21 THE INFORMATION, WHICH MAY INCLUDE ORIGINALS OR COPIES OF
22 DOCUMENTS AND MATERIALS, TO ONE OR MORE CRIMINAL JUSTICE OR
23 OTHER LAW ENFORCEMENT AUTHORITIES FOR INVESTIGATION AND
24 PROSECUTION AS AUTHORIZED BY LAW.
25 12-10-1008. Hearings - use of administrative law judges -
26 subpoenas - judicial review - immunity - rules. (1) EXCEPT AS
27 OTHERWISE PROVIDED IN THIS SECTION, ALL PROCEEDINGS BEFORE THE
28 DIRECTOR WITH RESPECT TO DISCIPLINARY ACTIONS AND DENIAL OF
29 LICENSURE UNDER THIS PART 10, AT THE DISCRETION OF THE DIRECTOR,
30 MAY BE CONDUCTED BY AN AUTHORIZED REPRESENTATIVE OF THE
31 DIRECTOR OR BY AN ADMINISTRATIVE LAW JUDGE PURSUANT TO SECTIONS
32 24-4-104 AND 24-4-105.
33 (2) VENUE FOR PROCEEDINGS IS IN THE COUNTY WHERE THE
34 DIRECTOR'S OFFICE IS LOCATED OR IN SUCH OTHER PLACE AS THE
35 DIRECTOR MAY DESIGNATE.
36 (3) THE DIRECTOR, AN AUTHORIZED REPRESENTATIVE OF THE
37 DIRECTOR, OR, SUBJECT TO APPROPRIATIONS MADE TO THE DEPARTMENT
38 OF PERSONNEL, AN ADMINISTRATIVE LAW JUDGE ON BEHALF OF THE
39 DIRECTOR SHALL CONDUCT ALL HEARINGS FOR DENYING A LICENSE OR
40 TAKING DISCIPLINARY ACTION. EACH ADMINISTRATIVE LAW JUDGE SHALL
41 BE APPOINTED PURSUANT TO PART 10 OF ARTICLE 30 OF TITLE 24. THE
42 ADMINISTRATIVE LAW JUDGE SHALL CONDUCT THE HEARING IN
43 ACCORDANCE WITH SECTIONS 24-4-104 AND 24-4-105. A LICENSE SHALL
44 NOT BE DENIED, SUSPENDED, OR REVOKED UNTIL THE DIRECTOR HAS MADE
45 A DECISION.
46 (4) THE DIRECTOR, AUTHORIZED REPRESENTATIVE OF THE
47 DIRECTOR, OR ADMINISTRATIVE LAW JUDGE APPOINTED FOR HEARINGS
48 MAY ISSUE A SUBPOENA COMPELLING THE ATTENDANCE AND TESTIMONY
49 OF WITNESSES AND THE PRODUCTION OF BOOKS, PAPERS, RECORDS, OR
50 OTHER EVIDENCE PURSUANT TO AN INVESTIGATION OR HEARING.
51 SUBPOENAS MUST BE SERVED IN THE SAME MANNER AS SUBPOENAS ISSUED
52 BY DISTRICT COURTS AND ISSUED WITHOUT DISCRIMINATION BETWEEN
53 PUBLIC AND PRIVATE PARTIES REQUIRING THE ATTENDANCE OF WITNESSES
54 AND THE PRODUCTION OF DOCUMENTS AT HEARINGS. IF A PERSON FAILS TO
55 OBEY A SUBPOENA ISSUED BY THE DIRECTOR, AUTHORIZED
1 REPRESENTATIVE OF THE DIRECTOR, OR APPOINTED ADMINISTRATIVE LAW
2 JUDGE, THE DIRECTOR MAY PETITION THE DISTRICT COURT OF THE CITY
3 AND COUNTY OF DENVER FOR ISSUANCE OF AN ORDER COMPELLING A
4 WITNESS TO ATTEND AND TESTIFY OR PRODUCE BOOKS, PAPERS, RECORDS,
5 OR OTHER EVIDENCE UNDER PENALTY OF PUNISHMENT FOR CONTEMPT.
6 (5) A DECISION OF THE DIRECTOR IN ANY DISCIPLINARY ACTION OR
7 DENIAL OF LICENSURE UNDER THIS SECTION IS SUBJECT TO JUDICIAL
8 REVIEW BY THE COURT OF APPEALS PURSUANT TO SECTION 13-4-102 (2).
9 (6) IN ANY HEARING CONDUCTED BY THE DIRECTOR OR AN
10 AUTHORIZED REPRESENTATIVE OF THE DIRECTOR IN WHICH THE