DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
COMMUNITY ASSOCIATION MANAGERS
4 CCR 725-7

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
July 22, 2015
	
A RULES:  LICENSE QUALIFICATIONS, APPLICATIONS & EXAMINATIONS

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Director of the Division of Real Estate (“Director”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules related to community association managers.

STATEMENT OF BASIS

The statutory basis for the rules titled Rules Regarding Community Association Managers is Part 10 of Title 12, Article 61, Colorado Revised Statutes, as amended.  

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the state statutes of the Community Association Managers Practice Act.

SPECIFIC PURPOSE OF THIS RULEMAKING

The specific purpose of this rule is to promulgate rules with respect to the requirements for licensure and ensures that community association managers are familiar with current regulations.

Proposed New, Amended and Repealed Rules

[Deleted material shown struck through, new material shown ALL CAPS. Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Director at www.dora.colorado.gov/dre

A RULES:  LICENSE QUALIFICATIONS, APPLICATIONS & EXAMINATIONS

A-1) Definitions.
The following definitions are applicable to all rules in these Director rules:
1)	The “Act” or the “Community Association Managers Practice Act” means §§ 12-61-1001, et seq., C.R.S.
2)	“Community Association Manager” or “CAM” or “Manager” has the meaning set forth in § 12-61-1001(4)(5), C.R.S. 
3)	“Licensee” means any person or entity licensed as a Community Association Manager OR AN APPRENTICE pursuant to the Act.
4)	“Community Association Management Company” or “CAM company” means any entity, including but not limited to a firm, partnership, limited liability company, association, or corporation, that meets the definition of a Community Association Manager in § 12-61-1001(4)(5), C.R.S., or applies to the Division to become a Community Association Manager.
5)	“Designated manager” means an individual who is designated to be a qualified active manager for a Community Association Management Company, qualified to act as a community association manager, and who is responsible for management and supervision of the licensed actions of the company and all persons employed by, or acting at any time on behalf of, the company and who is personally responsible for the handling of any and all common interest community funds received or disbursed by the company pursuant to § 12-61-1003(6)(b) and (7), C.R.S.  HAS THE MEANING SET FORTH IN § 12-61-1001(5.5), C.R.S.
6)	“Applicant” means any person or entity applying for licensure as a Community Association Manager under the Act.
7)	“License” means any license issued by the Director or the Division pursuant to the Act.
8)	“Director rules” means any and all rules issued by the Director pursuant to the Act, including but not limited to Community Association Manager Rules A, B, C, D, E, F, G, and H.
9)	“APPRENTICE” HAS THE MEANING SET FORTH IN § 12-61-1001(1), C.R.S.

A-5) Community Association Manager license examination expiration and application requirements.
The CAM license examination is made up of two parts, a general portion and a state COLORDO LAW portion. If an AN applicant HOLDING A CREDENTIAL PURSUANT TO § 12-61-1003(5)(A)(I)(D), C.R.S., MUST SIT FOR AND SUCCESSFULLY PASS BOTH PORTIONS OF THE EXAMINATION.  IF THE APPLICANT fails one or both parts of the examination, the applicant may retake the failed portion(s). A passing score for either part of the examination is valid for one year only.  IF AN APPLICANT HOLDS A CREDENTIAL PURSUANT TO § 12-61-1003(5)(A)(I)(A),(B), OR (C), C.R.S., AND HAS MAINTAINED SAID CREDENTIAL IN GOOD STANDING, SUCH APPLICANT NEED ONLY SIT FOR AND SUCCESSFULLY PASS THE COLORADO LAW PORTION OF THE EXAMINATION.  IF THE APPLICANT FAILS THE COLORADO LAW PORTION, THE APPLICANT MAY RETAKE THE FAILED PORTION.  An application received by the Division must be accompanied by the statutory fee, proof of completion of the required credential and proof of successful completion of both THE REQUIRED portions PORTION(S) of the examination within the year prior to the application being received by the Division. No examination score for either portion of the examination will be considered valid after one year.
A-7) License processing time frames.
Provided that an applicant has submitted a complete and satisfactory application in compliance with §§ 12-61-1002, - 1003, C.R.S., and the Director rules, the Director will issue a license within 10 business days after receipt by the Director of satisfactory results from the fingerprint-based criminal history record check. If the application or record check is not complete or satisfactory, the applicant will be notified that their license application has been deferred pending receipt of required compliance item(s). The application for a CAM license that has been approved by the Director subject to the receipt of certain compliance items will be issued on an inactive status until all compliance items have been received by the Director.  No activities requiring a license may be performed while the license is on inactive status.
A-8) Applicants who have held a community association manager license in another jurisdiction.
In lieu of the qualifying education credential requirements found in Rule A-3, an applicant who has held a community association manager license in another jurisdiction, as set forth in § 12-61-1003(5)(d), C.R.S., may submit a “certification of licensing history” issued by each jurisdiction where the applicant is currently or was previously licensed as a community association manager.  The license history must be submitted prior to sitting for the examination, along with a complete and satisfactory application in accordance with the Director rules. The Director will issue a license within 10 business days after receipt by the Director of satisfactory results from the fingerprint-based criminal history record check, and a determination by the Director that the applicant has established they possess the credentials and qualifications substantively equivalent to the requirements for Colorado licensure.  Within 30 calendar days after issuance of the CAM license, the applicant must complete successfully, and provide the Director proof of successful completion, of the state portion of the examination.  Failure to provide the Director with proof of successful completion of the state COLORADO LAW portion of the examination in the prescribed timeframe will result in the license being placed on inactive status and no activities requiring a license may be performed. 
A-9) Applicant with previous suspension or revocation of a community association manager license or certification.
Pursuant to § 12-61-1003(3)(b), C.R.S., an applicant who has held a community association manager license, APPRENTICE LICENSE, PROVISIONAL LICENSE or certification that has been suspended or revoked in Colorado or in any other jurisdiction that regulates community association managers within the last 10 years, with at least 2 years having elapsed since the date of that suspension or revocation, must file prior to or with their application for licensing the following information and documents:
1)	A written and signed personal explanation and detailed account of the facts and circumstances surrounding each suspension or revocation;
2)	The completed Community Association Manager application addendum form found on the Division’s website;
3)	Results of any hearing(s), and copies of the official reports of the suspension and revocation from the jurisdiction where any such suspension or revocation took place; 
4)	If the applicant is to be employed under a designated manager licensee, then that designated manager must submit a letter stating that he or she is aware of the specific suspension(s) or revocation(s) and has agreed to employ the applicant; and
5)	Any other documentation requested by the Director.

A-11) Preliminary advisory opinion.
At any time prior to submission of a formal application for licensure, a person may request that the Director issue a preliminary advisory opinion regarding the potential effect that previous conduct, license and certification suspension(s) or revocation(s), criminal conviction(s), or violation(s) of community association law, may have on a formal application for licensure (“PAO”). A PAO may be issued by the Director in his or her sole discretion, in order to provide preliminary advisory guidance.
1)	Potential applicants may request a PAO for any of the following reasons:
a)	If the individual has been convicted of, plead guilty or nolo contendere to any crime in a domestic, foreign or military court;
b)	If the individual has held a Community Association Manager license, APPRENTICE LICENSE, PROVISIONAL LICENSE or certification that has been suspended or revoked within the last 10 years;
c)	If the individual has had other professional licenses, certifications or registrations issued by Colorado, the District of Columbia, any other states or foreign countries, revoked or suspended for fraud, theft, deceit, material misrepresentations or the breach of a fiduciary duty and such suspension or revocation denied authorization to practice as: a mortgage loan originator or similar license; real estate broker; real estate appraiser; an insurance producer; an attorney; a securities broker-dealer; a securities sales representative; an investment advisor; or an investment advisor representative; or
d)	Any other conduct that would impact the public trust.
2)	Individuals requesting a PAO must complete the preliminary advisory opinion application located on the Division of Real Estate’s website.  
3)	Individuals requesting a PAO must submit all relevant documents related to any conduct or actions as set forth herein.  Incomplete requests will not be processed.  The Director may, at any time, request additional information regarding the PAO request. Such relevant or related documents may include, but are not limited to:
a)	Police officer reports;
b)	Dispositions documents;
c)	Court documents;
d)	Original charges documents;
e)	Stipulated agreements; or
f)	Final agency orders. 
4)	Individuals requesting a PAO must submit a written and signed personal explanation and detailed account of the facts and circumstances.
5)	Any PAO will not be binding on the Director or limit the Director’s authority to investigate a future formal application for licensure. 
6)	An individual seeking a PAO is not an applicant for licensure and the issuance of an unfavorable opinion will not prevent such individual from making application for licensure pursuant to the Act and the Director rules.
7)	No PAO will be considered final agency action.  PAO’s are not subject to appeal or judicial review.

A-16) APPRENTICE APPLICATION AND LICENSE REQUIREMENTS.
AN APPLICANT FOR AN APPRENTICE LICENSE MUST SUBMIT A SET OF FINGERPRINTS FOR THE PURPOSE OF A CRIMINAL HISTORY CHECK AS PRESCRIBED IN RULE A-12 AND SUBMIT A COMPLETE LICENSE APPLICATION AS PRESCRIBED IN THESE DIRECTOR RULES.
A-17) PROVISIONAL APPLICATION AND LICENSE REQUIREMENTS.
AN APPLICANT FOR A PROVISIONAL LICENSE MUST SUBMIT A SET OF FINGERPRINTS FOR THE PURPOSE OF A CRIMINAL HISTORY CHECK AS PRESCRIBED IN RULE A-12, MUST HOLD A QUALIFYING EDUCATIONAL CREDENTIAL AS PRESCRIBED IN RULE A-3, MUST HAVE SAT FOR AND NOT SUCCESSFULLY PASSED THE REQUIRED PORTION(S) OF THE COMMUNITY ASSOCIATION MANAGER EXAMINATION AS PRESCRIBED IN RULE A-5 AND SUBMIT A COMPLETE LICENSE APPLICATION AS PRESCRIBED IN THESE DIRECTOR RULES.

A hearing on the above subject matter will be held on Wednesday, July 22, 2015, at the Colorado Division of Real Estate, 1560 Broadway, Suite 110-D, Denver, Colorado 80202 beginning at 10:00 a.m.
Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate.  Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than three (3) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered.
Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.