HB 24-1078

House Bill 24-1078 in Colorado requires community association management companies to get a license starting July 1, 2025. To qualify for this license, these businesses must meet insurance requirements, designate a responsible manager, pay fees, and undergo background checks. The state will oversee the licensing process and can discipline or revoke licenses based on violations. The law also plans to review and potentially end the licensing requirement by September 1, 2029. This affects management companies that work with homeowner associations and similar groups in Colorado. Since the bill has been signed into law, these requirements will go into effect as scheduled.

Official Summary

The bill establishes licensure requirements for business entities that perform community association management for common interest communities in the state and makes it unlawful, on and after July 1, 2025, for a business entity to perform community association management duties without a license. 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 a schedule of fees determined by the director through rule-making; and Obtain criminal history record checks for its controlling manager and each individual that performs community association management on behalf of the business entity. The director shall establish by rule education requirements for controlling managers and any employees of a licensed business entity (licensed entity) who perform community association management on behalf of the licensed entity. 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.)