HB 22-1239

House Bill 22-1239, which has been signed into law, sets up rules for companies that manage community associations in Colorado. These companies must now get a license by meeting certain requirements like having proper insurance and designating a responsible manager who passes background checks and meets education standards. The bill also outlines ways to discipline these management companies if they break the rules. This new regulation affects businesses involved in managing homeowner associations or similar groups, ensuring better oversight and accountability for their operations. The law will be reviewed before it expires on September 1, 2029.

Official Summary

The bill establishes licensure requirements for business entities that perform community association management for common interest communities in the state. The division of real estate (division) in the department of regulatory agencies (department) is tasked with administering the regulatory program for community association managers (CAMs). To be licensed, a business entity must: Demonstrate compliance with insurance requirements specified by the director of the division (director) by rule; Designate an individual as the business entity's controlling manager who is responsible for the community association management activities of the business entity and its employees; Pay a fee based on the number of individuals who perform community association management on behalf of the business entity; and Obtain criminal history record checks for its controlling manager and each individual that performs community association management on behalf of the business entity. A business entity licensed as a CAM must ensure that its controlling manager and each individual performing community association management on behalf of the licensed entity is credentialed by the Community Association Managers International Certification Board or the Community Associations Institute and complies with periodic continuing education requirements. The bill sets forth various grounds for disciplining a licensed entity and directs the director to establish a points-based disciplinary system for determining the appropriate level of discipline to impose on a licensed entity based on the level of violation. The bill repeals the licensure of CAMs on September 1, 2029, and directs the department to conduct a sunset review of the licensure program before that date. (Note: This summary applies to this bill as introduced.)

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