2022 CAI-NJ September LAC Issue

Mandatory Board Member Training (A1698) and Manager Licensing (A1699) By Cheryl Palent, Renaissance at Raritan Valley Master Association and Alex Scheffer, Access Property Management, AAMC, AMO

z_wei/iStock/Getty Images Plus

T wo key bills – A1698 and A1699 – were pre-filed for introduction in the 2022 Legislative Session of the State of NJ 220th Legislature by their sponsor, Assemblywoman Annette Quijano (D-Union). Both have been previously introduced in prior legislative terms but failed to get codified. Assemblywoman Quijano’s Mandatory Board Member Training and Manager Licensing bills have been the subject of many New Jersey Legislative Action Committee (NJ-LAC) meetings. Because CAI National does not support man datory training or licensing, this is a rare instance where CAI-NJ’s position diverges with CAI National’s, and CAI-NJ had to obtain permission from CAI National to pursue the bills with the Assemblywoman. NJ-LAC members have met with Assemblywomen Qijano on several occasions in an effort to craft a bill that would enable the chapter to take the lead on writing the bills, providing input on content and implementation. Below is a brief overview of the prospective legislation.

A1698 – Board Member Training The proposed board member training bill, as written, grants the DCA authority to establish the training require ments, including determining what the training should cover and how it should be conducted. The bill specifically includes training on the following topics: • Business practices • Record keeping procedures • Legal requirements • Budgeting • Reserves (this may need to be expanded upon to include Fannie Mae and Freddy Mac requirements) The bill would also contain the following requirements: • Minimum of three (3) hours training • Must be completed with 180 days of election and/or appointment to the board (first term of office) • Removal of the board member by the DCA if training not completed within the 180 days CONT I NU E S ON PAGE 36

34

S E P T E M B E R 2 0 2 2