Senate Bill 373 Summary

• Establishes mandatory licensing for community association managers in North Carolina, effective October 1, 2012, requiring a license from the North Carolina Licensure Board for Community Association Managers to perform management services for compensation.

• Creates a seven-member licensing board consisting of four community association managers, one home builder, one real estate broker, and one public member, with members appointed by the Governor, General Assembly, and legislative leaders.

• Requires licensure applicants to pass an examination, provide proof of a fidelity bond of at least $20,000, demonstrate good moral character, and pay applicable fees; alternatively, applicants may provide evidence of equivalent certifications from recognized associations or valid licenses from other states.

• Mandates segregation of community association funds in separate accounts at federally insured financial institutions, prohibits commingling of funds, establishes continuing education requirements not to exceed eight credit hours annually, and requires community associations with 20 or more residential units to register with the Board.

• Authorizes the Board to discipline licensees for fraud, gross negligence, misrepresentation, improper handling of funds, and other violations, and establishes violations as Class 2 misdemeanors; provides grandfather clause allowing persons actively managing associations for three years before the act's effective date to obtain a license without examination.