Representative Dan Thurlow (R-Grand Junction) has introduced House Bill 15-1040 (“HB 1040”). The bill is intended to greatly reduce the individuals who are required to be licensed by the Division of Real Estate as community association managers. Frankly, if you look at the practical implications of the bill, HB 1040 would essentially destroy most of the manager licensure requirements which were intended to protect folks living in common interest communities and to elevate the profession of community association management.
HB 1040 has been assigned to the House State, Veterans & Military Affairs Committee (“State Affairs Committee”) where it is almost certain that this bill will die. In a nutshell, if passed, HB 1040 would provide:
● That individuals who manage common interest communities with less than 200 units, commercial common interest communities and time share common interest communities would not be required to be licensed as community association managers by the Division of Real Estate.
● Management companies, CEOs of management companies and executives of management companies with direct oversight over community association managers would not be required to be licensed by the Division of Real Estate.
● Clarification on how individuals would be classified as community association managers.
● If more than one individual manages a particular common interest community, only one of the managers would be required to be licensed by the Division of Real Estate as a community association manager.
While there is no doubt that the current manager licensure law needs to be cleaned-up, it is highly unlikely that HB 1040, which guts the intent of the law, will be the vehicle that is utilized to make important changes to current law.
Stay tuned to this blog for more information on HB 1040 as it is taken up by the State Affairs Committee and for important updates on the introduction of an additional clean-up bill that will likely have legs and make much needed improvements to the current manager licensure law.