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Legislative Review 2007b
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CONNECTICUT MANAGER REGULATIONS ARE BROADENED

SCOTT J. SANDLER, ESQ.
PERLSTEIN, SANDLER & McCRACKEN, LLC

The Connecticut State Legislature has amended a number of provisions of the Connecticut Condominium Act, the Connecticut Common Interest Ownership Act and the provisions of the Connecticut statutes governing the registration of managers.  These amendments become effective on October 1, 2007.  A 2007 Legislative Update on the CAI Connecticut Chapter website details session information.

Of particular interest to community association managers is the new registration requirement.  Among other provisions, SB 1089 (now Public Act No. 07-243), signed mid-July, amends the provisions of the Connecticut General Statutes that govern the registration of property managers, and broadens the range of people that must register with the Department of Consumer Protection (“Department”).  Under Section 8 of Public Act No. 07-243, Section 20-450 of the Connecticut General Statutes is repealed and substituted by the new provisions (effective October 1, 2007).

Prior to October 1, 2007, a management company must register with the Department, but the individual managers or other employees of that company were not required to register.  However, the Department interprets the amended requirements to be much broader.  According to the Department, these amendments require anyone who provides management services, as defined by Section 20-450, including any partner, director, officer, or employee of a management company, to individually register.

Section 20-450 defines management services as any one of the following:

a.         Collecting, controlling or disbursing funds of the association or having authority to do so.

b.         Preparing budgets or other financial documents for the association.

c.         Assisting in the conduct of or conducting association meetings.

d.         Advising or assisting the association in obtaining insurance.

e.         Advising the association in the overall operations of the association.

Section 20-450 states that professionals who are licensed by the state, such as attorneys, are exempted from having to register.  An officer or director is also exempt, so long as he or she does not control more than two-thirds of the voting power in the association. 

However, under the Department’s broad interpretation, anyone else who provides any of the listed management services must register. 

  • Statute for Manager Registration Requirement
  • Manager Registration Form

 

Other provisions of SB 1089 include:

  • Providing a reasonable opportunity for all unit owners to express their views concerning the proposed budget before its adoption or ratification 
  • Availing association records, meeting minutes, financial, accounting, and board voting records to unit owners
  • Disclosing to unit owners the amount and terms of any loan agreement on behalf of the association
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