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Sunset Community Association Managers

Concerning the continuation under the sunset law of the regulation of community association managers by the director of the division of real estate, and, in connection therewith, implementing the recommendations contained in the 2017 sunset report of the department of regulatory agencies.
2018 Regular Session
Business & Economic Development
Bill Summary

Sunset Process - House Business Affairs and Labor Committee. Sections 1 and 2 of the bill continue the licensing of community association managers and management companies, subject to regulation by the director of the division of real estate, for an additional 5 years, until September 1, 2023. ( Recommendation 1 )

Section 3 allows certain ministerial functions to be delegated to unlicensed persons while maintaining the license requirement for higher-level management functions such as the conduct of board meetings, handling of money, and negotiation of maintenance contracts. The director is authorized to adopt rules further clarifying these distinctions if necessary. ( Recommendation 3 )

Sections 4 and 6 through 8 scale back the amount of, and circumstances in which, direct supervision of an apprentice is required and specify that a supervising manager is accountable for the actions of an apprentice. Section 5 gives the director authority to adopt rules governing supervision of apprentices. ( Recommendation 4 )

Section 9 removes the automatic acceptance of certain private credentials as qualifications for licensure and substitutes a requirement that the director specify the acceptable credentials by rule. ( Recommendation 5 )

Sections 10 and 11 add due-process protections and specific procedural requirements to the director's authority to issue cease-and-desist orders. The director also has the option to issue an order to show cause and to hold a hearing before, rather than after, ordering a respondent to cease and desist from suspected unauthorized practices. ( Recommendation 6 )
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)




Bill Text


Sponsor Type Legislators
Prime Sponsor

Rep. T. Kraft-Tharp, Rep. D. Thurlow
Sen. B. Gardner



Rep. E. Hooton, Rep. J. Singer

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details