54.1-2346 - License required; certification of employees; renewal; provisional license.
§ 54.1-2346. License required; certification of employees; renewal;provisional license.
A. Unless exempted by § 54.1-2347, any person, partnership, corporation, orother entity offering management services to a common interest community onor after January 1, 2009, shall hold a valid license issued in accordancewith the provisions of this chapter prior to engaging in such managementservices.
B. Unless exempted by § 54.1-2347, any person, partnership, corporation, orother entity offering management services to a common interest communitywithout being licensed in accordance with the provisions of this chapter,shall be subject to the provisions of § 54.1-111.
C. On or after July 1, 2011, it shall be a condition of the issuance orrenewal of the license of a common interest community manager that allemployees of the common interest community manager who have principalresponsibility for management services provided to a common interestcommunity or who have supervisory responsibility for employees whoparticipate directly in the provision of management services to a commoninterest community shall, within two years after employment with the commoninterest community manager, hold a certificate issued by the Board certifyingthe person possesses the character and minimum skills to engage properly inthe provision of management services to a common interest community or shallbe under the direct supervision of a certified employee of such commoninterest community manager. A common interest community manager shall notifythe Board if a certificated employee is discharged or in any way terminateshis active status with the common interest community manager.
D. It shall be a condition of the issuance or renewal of the license of acommon interest community manager that the common interest community managershall obtain and maintain a blanket fidelity bond or employee dishonestyinsurance policy insuring the common interest community manager againstlosses resulting from theft or dishonesty committed by the officers,directors, and persons employed by the common interest community manager.Such bond or insurance policy shall include coverage for losses of clients ofthe common interest community manager resulting from theft or dishonestycommitted by the officers, directors, and persons employed by the commoninterest community manager. Such bond or insurance policy shall providecoverage in an amount equal to the lesser of $2 million or the highestaggregate amount of the operating and reserve balances of all associationsunder the control of the common interest community manager during the priorfiscal year. The minimum coverage amount shall be $10,000.
E. It shall be a condition of the issuance or renewal of the license of acommon interest community manager that the common interest community managercertifies to the Board (i) that the common interest community manager is ingood standing and authorized to transact business in Virginia; (ii) that thecommon interest community manager has established a code of conduct for theofficers, directors, and persons employed by the common interest communitymanager to protect against conflicts of interest; (iii) that the commoninterest community manager provides all management services pursuant towritten contracts with the associations to which such services are provided;(iv) that the common interest community manager has established a system ofinternal accounting controls to manage the risk of fraud or illegal acts; and(v) that an independent certified public accountant reviews or audits thefinancial statements of the common interest community manager at leastannually in accordance with standards established by the American Instituteof Certified Public Accountants or by any successor standard-settingauthorities.
F. The Board shall issue a provisional license to any person, partnership,corporation, or other entity offering management services to a commoninterest community on or before December 31, 2008, who makes application forlicensure prior to January 1, 2009. Such provisional license will expire onJune 30, 2011, and may not be renewed. This subsection shall not be construedto limit the powers and authority of the Board.
(2008, cc. 851, 871.)