2005 California Business and Professions Code Sections 11500-11501 CHAPTER 1. PURPOSE AND DEFINITIONS

BUSINESS AND PROFESSIONS CODE
SECTION 11500-11501

11500.  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.  (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.


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