| ( Note: This is the second analysis prepared by Jay Greenwood . By concealing the opposition to the bill the legislators only had his analysis on which to make a decision.)
ASSEMBLY THIRD READING
AB 555 (Dutra)
As Amended April 30, 2001
Majority vote
BUSINESS AND PROFESSIONS 12-0 APPROPRIATIONS 18-3
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|Ayes:|Correa, John Campbell, |Ayes:|Migden, Bates, Lowenthal, |
| |Bogh, Cedillo, Chavez, | |Jackson, Cedillo, |
| |Diaz, Kelley, Koretz, | |Corbett, Correa, Daucher, |
| |Leach, Matthews, Nation, | |Strom-Martin, Maldonado, |
| |Wesson | |Papan, Pavley, Simitian, |
| | | |Thomson, Wesson, Wiggins, |
| | | |Wright, Zettel |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Ashburn, Robert Pacheco, |
| | | |Runner |
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SUMMARY : Creates the Common Interest Development Manager
Registration Act (Act). Specifically, this bill :
1)States that the primary purpose of the Act is to recognize
consistent minimum standards for individuals hired for
compensation as managers of common interest developments
(CIDs), including community apartment projects, planned
developments, and condominium projects.
2)Creates the private California Common Interest Development
Manager Registration Council (Council) for the purpose of
registering individuals who meet educational and other
required qualifications for becoming a CID manager as set
fourth in this bill.
3)Provides that the Council is made up of six managers with
specified experience plus one attorney with experience in CID
law.
4)Requires individuals who act as CID managers to register with
the Council.
5)Provides that, in order to register with the Council,
applicants must satisfy specified educational requirements,
including successfully completing 30 hours of instruction
related to the management of CIDs.
6)Provides that, in order to renew their CID registrations for
three-year periods, managers must successfully complete 15
semester hours of continuing education pertaining to CIDs.
7)Permits the Council to charge a fee to applicants to cover the
costs of its duties.
8)Provides that a licensed real estate broker may act as a CID
manager without registering with the Council if the broker has
taken a minimum of three semester units of education
pertaining to California law that relates to managing
community associations that operate CIDs.
9)Requires active CID managers to be covered by fidelity
insurance.
EXISTING LAW :
1)Permits homeowner associations to form nonprofit mutual
benefit corporations.
2)Allows boards of directors to delegate the management of the
activities of the corporation to any person, management
company, or committee.
1)Includes the Davis-Stirling Common Interest Development Act
that governs all aspects of CIDs, including their fiduciary
and managerial responsibilities.
1)Requires prospective managing agents of CIDs to provide a
written statement to the board of directors about the managing
agent's business and any professional certifications or
designations held, including that of a professional CID
manager.
1)Defines a "managing agent" as a person or entity who, for
compensation or in expectation of compensation, exercises
control over the assets of a CID.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, potential non-reimbursable costs to local
governments for investigation, prosecution, and incarceration,
partially offset by fine revenues.
COMMENTS : There are more than 32,000 CIDs in California,
housing approximately six million people. As part of a CID, the
dwelling's owner/occupants have a common ownership in all or
parts of the development. The operation of the overall
development, such as streets, landscaping, utilities,
recreational facilities, and exterior maintenance, is totally
subject to decisions made by the development's homeowners
association (HOA). HOAs also are responsible for assessing,
collecting and expending fees to carry out the operations of the
CID.
In order to perform the tasks necessary to maintain a CID and
fulfill obligations to its homeowner/members, many HOA boards of
directors hire professional managers. Current law does not
require CID managers to meet any training or education
requirements. According to supporters, this bill seeks to
minimize the mistakes and harms that can occur in CIDs by
requiring managers who are hired for compensation to receive
specified training and education. The accomplishment of this
training would be overseen by a private Council of management
professionals, so as to minimize government involvement and cost
to the practitioner. The Council would be authorized to prepare
an official registry of managers and assign managers, who have
completed their education, a unique registration that would be
required for them to practice. The Council could investigate
complaints about violations of the statute and could remove
their registration.
Last year, AB 1893 (Dutra) proposed a mechanism for the
certification of CID managers, but that bill died in the Senate.
Analysis Prepared by : Jay Greenwood / B. & P. / (916) 319-3301
FN: 0000849
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