Today's Law As Amended


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AB-1423 Common interest development managers.(2003-2004)



As Amends the Law Today


SECTION 1.

 Section 11500 of the Business and Professions Code is amended to read:

11500.
 For purposes of this chapter, the following definitions apply:
(a) “Common interest development” means a residential development identified in Section 4100 subdivision (c) of Section 1351  of the Civil Code.
(b) “Association” has the same meaning  “Community association” means a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development. A community association is an “association”  as defined in Section 4080 subdivision (a) of Section 1351  of the Civil Code.
(c) “Financial services” means acts  an act  performed or offered to be performed, for compensation, for an association,  a community association  including, but not limited to, the preparation of internal unaudited financial statements, internal accounting and bookkeeping functions, billing of assessments, and related services.
(d) “Management services” means acts  an act  performed or offered to be performed in an advisory capacity for an  a community  association including, but not limited to, the following:
(1) Administering or supervising the collection, reporting, and archiving of the  financial or common area assets of an  a community  association or common interest development, at the direction of the association’s board of directors. community association’s governing body. 
(2) Implementing resolutions and directives of the board of directors of the community  association elected to oversee the operation of a common interest development.
(3) Implementing provisions of governing documents, as defined in Section 4150 1351  of the Civil Code, that which  govern the operation of the community association or  common interest development.
(4) Administering association  a community association’s  contracts, including insurance contracts, within the scope of the community  association’s duties or with other common interest development managers, vendors, contractors, and other third-party providers of goods and services to an  a community  association or common interest development.
(e) “Professional association for common interest development managers” means an organization that meets all of the following:
(1) Has at least 200 members or certificants who are common interest development managers in California.
(2) Has been in existence for at least five years.
(3) Operates pursuant to Section 501(c) of the Internal Revenue Code.
(4) Certifies that a common interest development manager has met the criteria set forth in Section 11502 without requiring membership in the association.
(5) Requires adherence to a code of professional ethics and standards of practice for certified common interest development managers.

SEC. 2.

 Section 11502 of the Business and Professions Code is amended to read:

11502.
 In order to be called a “certified common interest development manager,” a the  person shall meet one of the following requirements:
(a) Prior to July 1, 2003, has passed a knowledge, skills, and aptitude examination as specified in Section 11502.5 or has been granted a certification or a designation by a professional association for common interest development managers, and who has, within five years prior to July 1, 2004, received instruction in California law pursuant to paragraph (1) of subdivision (b).
(b) On or after July 1, 2003, has successfully completed an educational curriculum that shall be no less than a combined 30 hours in coursework described in this subdivision and passed an examination or examinations that test competence in common interest development management in the following areas:
(1) The  Instruction in California  law that relates  is related  to the management of common interest developments, including, but not limited to, the following courses of study:
(A) Topics  The topics  covered by the Davis-Stirling Common Interest Development Act, contained in Part 5 (commencing with Section 4000) of Division 4 of  Sections 1350 to 1376, inclusive, of  the Civil Code, including, but not limited to, the types of California common interest developments, disclosure requirements pertaining to common interest developments, meeting requirements, financial  requirements for community association boards of directors and members, financial disclosure and  reporting requirements, and member  access to community  association records.
(B) Personnel issues, including, but not limited to, general matters related to independent contractor or employee status, the laws on  issues related to types of  harassment, the Unruh Civil Rights Act, the California Fair Employment and Housing Act, and  fair employment laws, and  the Americans with Disabilities Act.
(C) Risk management,  management as it pertains to common interest development,  including, but not limited to, insurance coverage, maintenance, operations, and emergency preparedness. required insurance coverage and preventative maintenance programs. 
(D) Property protection for associations,  protection,  including, but not limited to, pertinent general  matters relating to environmental hazards hazardous materials  such as asbestos, radon gas, and lead-based paint,  radon, and lead,  the Vehicle Code, local and municipal regulations, family day care facilities, homes,  energy conservation, Federal Communications Commission rules and regulations, and solar energy systems.
(E) Business  The business  affairs of community  associations, including, but not limited to, necessary compliance with federal,  all required local,  state, and local law. federal laws and treatises. 
(F) Basic understanding of governing documents, codes, and regulations relating to the activities and affairs of community  associations and common interest developments.
(2) Instruction in general management that is related to the managerial and business skills needed for management of a common interest development, including, but not limited to, the following:
(A) Finance issues, including, but not limited to, budget preparation; management; administration or supervision of the collection, reporting, and archiving of the financial or common area assets of an association or common interest development; bankruptcy laws; and assessment collection. preparation, management, and administration of community association financial affairs, bankruptcy laws, and assessment collection activities. 
(B) Contract negotiation and administration.
(C) Supervision of common interest development  employees and staff.
(D) Management of common interest development  maintenance programs.
(E) Management and administration of rules, regulations, and parliamentary procedures. parliamentary procedures, and architectural standards pertaining to community associations and common interest developments. 
(F) Management and administration of architectural standards. common interest development recreational programs and facilities. 
(G) Management and administration of the association’s recreational programs and facilities.
(H) (G)  Management and administration of owner and resident communications.
(I) (H)  Training and strategic planning for the community  association’s board of directors and its committees. committees, and other activities of residents in a common interest development. 
(I) Risk management as it pertains to common interest development properties, activities, and emergency preparedness.
(J) Implementation of community  association policies and procedures.
(K) Ethics for common interest development managers.
(K) (L)  Ethics, professional conduct,  Professional conduct  and standards of practice for common interest development managers.
(L) (M)  Current issues relating to common interest developments.
(M) Conflict avoidance and resolution mechanisms.

SEC. 3.

 Section 11502.5 is added to the Business and Professions Code, to read:

11502.5.
 The course related competency examination or examinations and education provided to a certified common interest development manager pursuant to Section 11502 by any professional association for common interest development managers, or any postsecondary educational institution, shall be developed and administered in a manner consistent with standards and requirements set forth by the American Educational Research Association’s “Standards for Educational and Psychological Testing,” and the Equal Employment Opportunity Commission’s “Uniform Guidelines for Employee Selection Procedures,” the Civil Rights Act of 1991, and the Americans with Disabilities Act of 1990, or the course or courses that have been approved as a continuing education course or an equivalent course of study pursuant to the regulations of the Real Estate Commissioner.

SEC. 4.

 Section 11504 of the Business and Professions Code is amended to read:

11504.
 On or before September 1, 2003, and annually  on an annual basis  thereafter, a person who either provides or contemplates providing the services of a common interest development manager to an  a community  association shall disclose to the board of directors of the community  association the following information:
(a) Whether or not the common interest development manager has met the requirements of Section 11502 so he or she may be called a certified common interest development manager.
(b) The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification.
(c) The location of his or her primary office.
(d) Prior to entering into or renewing a contract with an  a community  association, the common interest development manager shall disclose to the governing  board of directors of  the association or common interest development  community association  whether the fidelity insurance of the common interest development  community  manager or his or her employer covers the current year’s  operating and reserve funds of the community  association. This requirement shall may  not be construed to compel an association to  or  require a community association or  common interest development manager to obtain or maintain  require  fidelity insurance.
(e) Whether the common interest development manager possesses  Possession of  an active real estate license. license, if applicable. 
(f) This  A   section may not preclude a  common interest development manager or common interest development management firm shall disclose information  from disclosing information as  required in Section 5375 1363.1  of the Civil Code.
(g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code.
(h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agent’s managing firm.

SEC. 5.

 Section 1363.5 of the Civil Code is amended to read:

1363.5.
 (a) The articles of incorporation of a common interest development association filed with the Secretary of State on or after January 1, 1995, shall include a statement, which shall be in addition to the statement of purposes of the corporation, that does all of the following:
(1) Identifies the corporation as an association formed to manage a common interest development under the Davis-Stirling Common Interest Development Act.
(2) States the business or corporate office of the association, if any, and, if the office is not on the site of the common interest development, states the nine-digit ZIP Code, front street, and nearest cross street for the physical location of the common interest development.
(3) States the name and address of the association’s managing agent, as defined in Section 1363.1, if any.
(b) The statement of principal business activity contained in the annual statement filed by an incorporated association with the Secretary of State pursuant to Section 1502 of the Corporations Code shall also contain the statement specified in subdivision (a).
SEC. 6.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to revise the requirements for a certified common interest development manager as soon as possible in order to better protect the public, it is necessary that this act go into immediate effect.