Bill Summary for S 373 (2011-2012)

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Summary date: 

Mar 17 2011

Bill Information:

View NCGA Bill Details2011-2012 Session
Senate Bill 373 (Public) Filed Thursday, March 17, 2011
Intro. by Apodaca

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Bill summary

Adds new Article 6, Community Association Managers Licensure Act, to GS Chapter 93A to require mandatory licensing of persons who serve as community association managers and receive compensation for that service.
Establishes the North Carolina Licensure Board for Community Association Managers (Board). Provides that the Board is to have seven members as follows: (1) four community association managers, with two appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, one appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives (Speaker), and one appointed by the Governor; (2) a home builder appointed by the Governor on the recommendation of the NC Home Builders Association; (3) a licensed real estate broker appointed by the Governor, on the recommendation of the NC Association of Realtors; and (4) a public member who is not a professional in any of the other specified categories and who is appointed by the General Assembly on the recommendation of the Speaker.
Requires that Board members must be United States citizens and residents of North Carolina. Provides guidelines setting term limits, filling vacancies, grounds for removing Board members, compensation, selecting officers, and holding meetings. Designates that initial Board members are to be appointed before October 1, 2011. Enumerates the powers and duties of the Board. Sets out the licensure requirements, which include submitting a completed application to the Board on a form provide by the Board, passing a licensing examination prescribed by the Board or in the alternative presenting evidence of successful completion of specifically designated education programs or the possession of a valid license issued by another state, political territory, or jurisdiction acceptable to the Board. Additionally provides that a person may satisfy the licensing requirements if that person provides proof to the Board of active engagement as a community association manager for compensation in this state for at least three consecutive years before the effective date of this act and pays the required licensing fee. However, provides that persons who fail to make application to the Board for licensing within one year of the effective date of this act will be required to complete all the licensing requirements and comply with all the licensing provisions of this Article. Also requires an applicant to produce evidence of coverage by a fidelity bond in accordance with proposed GS 93A-93, to demonstrate to the Board that the applicant is of good moral character, and pay the applicable fees. Additionally provides criteria to be applied in the denial of licensure.
Makes it unlawful on or after October 1, 2012, for any person in the state to act as a community association manager, to directly or indirectly engage in the business of community management association management, or otherwise hold himself or herself out to be a community association manager without first obtaining a license from the Board.
Exempts an officer or member of a community association who acts as a community association manager for no compensation from the provisions of proposed Article 6. Provides additional exemptions from this proposed Article for specifically identified categories of persons.
Provides definitions for the following terms as used in this proposed Article: (1) Board, (2) compensation, (3) community association, (4) community association manager, (5) license, and (6) licensee.
Requires that every community association manager engaged in community association management must be covered by a fidelity bond or an insurance policy that complies with the enumerated requirements. Lists the fees that the Board may impose. Provides criteria for license renewal, late renewal of a license, requests to be placed on inactive status, and applying for reinstatement of an inactive license. Permits the Board to establish programs of continuing education for licensees under this proposed Article and provides guidelines to apply in determining fees and credit for continuing education courses.
Requires every community association that employs a community association manager and has a membership that includes owners of 20 or more residential condominiums, townhouses, apartments, or lots, or any combination thereof, to register the community association with the Board on or before January 1 of each year. Also permits any other residential community association, which is otherwise not required to register, to choose to register the association with the Board on or before January 1, each year. Prohibits the Board from seeking any legal remedy against an association that is required to register but does not do so until the association has registered with the Board. Directs the Board to publish a directory of registered community associations and registration fees. Restricts the use of fees received by the Board to the administration and enforcement of proposed Article 6.
Provides criteria regarding disciplinary action available to the Board. Provides that a license issued by the Board remains the property of the Board. Requires licensees to maintain full and accurate business records and retain those records for no less than three years. Makes the violation of any provisions of proposed Article 6 a Class 2 misdemeanor. Provides that the Board may apply to any appropriate court for an order enjoining any violations of this proposed Article. Provides that a court may issue an injunction or restraining order upon the showing by the Board that a person has violated or is about to violate this proposed Article.
Amends GS 93A-6(a)(12) to provide that a real estate broker who is also a licensed community association manager is not subject to disciplinary action by the NC Real Estate Commission for handling and accounting for money belonging to a community association in compliance with proposed Article 6 of GS Chapter 93A.