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1 Provisions concerning certification are operative until January 1, 2008.

California Business & Professions Code1


§11500. Definitions. For purposes of this chapter, the following definitions apply:

(a) "Common interest development" means a residential development identified in subdivision (c) of Section 1351 of the Civil Code.

(b) "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 subdivision (a) of Section 1351 of the Civil Code.

(c) "Financial services" means an act performed or offered to be performed, for compensation, for 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 an act performed or offered to be performed in an advisory capacity for a community association including, but not limited to, the following:

(1) Administering or supervising the financial or common area assets of a community association or common interest development, at the direction of the 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 1351 of the Civil Code, which govern the operation of the community association or common interest development.
(4) Administering 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 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.

§11501. Common Interest Development Manager.

(a) "Common interest development manager" means an individual who for compensation, or in expectation of compensation, provides or contracts to provide management or financial services, or represents himself or herself to act in the capacity of providing management or financial services to a community association. Notwithstanding any other provision of law, an individual may not be required to obtain a real estate or broker's license in order to perform the services of a common interest development manager to a community association.

(b) "Common interest development manager" also means any of the following:

(1) An individual who is a partner in a partnership, a shareholder or officer in a corporation, or who, in any other business entity acts in a capacity to advise, supervise, and direct the activity of a registrant or provisional registrant, or who acts as a principal on behalf of a company that provides the services of a common interest development manager.
(2) An individual operating under a fictitious business name who provides the services of a common interest development manager.

This section may not be construed to require a community association to hire for compensation a common interest development manager, unless required to do so by the governing documents of the common interest development. Nothing in this part shall be construed to supersede any law that requires a license, permit, or any other form of registration, to provide management or financial services. Nothing in this section shall preclude a licensee of the California Board of Accountancy to provide financial services to a community association within the scope of his or her license in addition to the preparation of reviewed and audited financial statements and the preparation of the community association's tax returns.

§11502. Criteria for Certification. In order to be called a "certified common interest development manager," 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) Instruction in California law that is related to the management of common interest developments, including, but not limited to, the following courses of study:

(A) The topics covered by the Davis-Stirling Common Interest Development Act, contained in 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 for community association boards of directors and members, financial disclosure and reporting requirements, and access to community association records.
(B) Personnel issues, including, but not limited to, general matters related to independent contractor or employee status, issues related to types of harassment, the Unruh Civil Rights Act, fair employment laws, and the Americans with Disabilities Act.
(C) Risk management as it pertains to common interest development, including, but not limited to, required insurance coverage and preventative maintenance programs.
(D) Property protection, including, but not limited to, general matters relating to hazardous materials such as asbestos, radon, and lead, the Vehicle Code, local and municipal regulations, family day care homes, energy conservation, Federal Communications Commission rules and regulations, and solar energy systems.
(E) The business affairs of community associations, including, but not limited to, necessary compliance with all required local, state, and 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, 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, parliamentary procedures, and architectural standards pertaining to community associations and common interest developments.
(F) Management and administration of common interest development recreational programs and facilities.
(G) Management and administration of owner and resident communications.
(H) Training and strategic planning for the community association' s board of directors and 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.
(L) Professional conduct and standards of practice for common interest development managers.
(M) Current issues relating to common interest developments.

§11502.5. Testing Standards. 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.

§11503. Exception. A "certified common interest development manager" does not include a common interest development management firm.

§11504. Annual Disclosures. On or before September 1, 2003, and on an annual basis thereafter, a person who either provides or contemplates providing the services of a common interest development manager to 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 a community association, the common interest development manager shall disclose to the governing board of the community association whether the fidelity insurance of the community2 manager or his or her employer covers the operating and reserve funds of the community association. This requirement may not be construed to compel or require a community association or common interest development manager to require fidelity insurance.

(e) Possession of an active real estate license, if applicable.

This section may not preclude a common interest development manager from disclosing information as required in Section 1363.1 of the Civil Code.

[2 Should probably read common interest development manager, not community manager.]

§11505. Unfair Business Practice. It is an unfair business practice for a common interest development manager, a company that employs the manager, or a company that is controlled by a company that also has a financial interest in a company employing a manager, to do any of the following:

(a) On or after July 1, 2003, to hold oneself out or use the title of "certified common interest development manager" or any other term that implies or suggests that the person is certified as a common interest development manager without meeting the requirements of Section 11502.

(b) To state or advertise that he or she is certified, registered, or licensed by a governmental agency to perform the functions of a certified common interest development manager.

(c) To state or advertise a registration or license number, unless the license or registration is specified by a statute, regulation, or ordinance.

(d) To fail to disclose or misrepresent any item to be disclosed in Section 11504 of this code, or Section 1363.1 of the Civil Code.

§11506. Expiration. This part shall be subject to the review required by Division 1.2 (commencing with Section 473). This part shall remain in effect only until January 1, 2008, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2008, deletes or extends that date.

06/14/2006