§467-30  Registration, bonding, and
other requirements for condominium hotel operators.  (a)  As used in this
section, "condominium hotel" includes those apartments or units in a
project as defined in section 514A-3 or 514B-3 and subject to chapter 514A or
514B, which are used to provide transient lodging for periods of less than
thirty days.



(b)  All condominium hotel operators shall
register with the commission as a sole proprietor, partnership, limited
liability company, or corporation and shall:



(l) Register by submitting a completed commission
application form with the commission requested information, receive commission
approval prior to conducting condominium hotel activity, and re-register on or
before the commission prescribed deadline prior to the registration expiration
date.  The registration and re-registration shall expire on December 31 of an
even-numbered year.  Registration information shall include but not be limited
to the number of apartments or units managed for others as well as the number
of apartments or units owned by the condominium hotel operator.  Any operator
failing to register with the commission shall be subject to a fine not
exceeding an amount equal to $25 multiplied by the aggregate number of
apartments or units being utilized as a condominium hotel.  Each month or
fraction of a month of noncompliance shall be deemed a new and separate
violation;



(2)  Obtain and keep current a fidelity bond from an
insurance company authorized to issue fidelity bonds by the insurance division
of the department of commerce and consumer affairs.  The fidelity bond shall be
in an amount equal to $500 multiplied by the aggregate number of apartments or
units in the condominium hotel operation; provided that the minimum amount of
the fidelity bond required by this paragraph shall not be less than $20,000 nor
greater than $100,000.  The aggregate number of apartments or units excludes
the number of apartments or units owned by the condominium hotel operator
either as a sole proprietor, partnership, limited liability company, or
corporation or those apartments or units included in a registered time share
plan managed by a registered time share plan manager.  The fidelity bond shall
cover all of the condominium hotel operator's employees handling or having
custody and control of either the condominium hotel operator's or the apartment
or unit owner's funds, or both. Upon request by the commission, the condominium
hotel operator shall provide evidence of a current fidelity bond or a
certification statement from an insurance representative of an insurance
company authorized by the insurance division of the department of commerce and
consumer affairs certifying that the fidelity bond is in effect and meets the
requirements of this section and the rules adopted by the commission.  The
commission may adopt rules establishing conditions and terms by which it may
grant a bond alternative or permit deductibles.  No condominium hotel operator
shall be exempt from the fidelity bond requirement; and



(3)  Pay an application fee and an initial
registration or a re-registration fee as provided in rules adopted by the
director of commerce and consumer affairs pursuant to chapter 91, which fees
shall be deposited with the director of commerce and consumer affairs to the credit
of the compliance resolution fund established pursuant to section 26-9(o);



provided that this section shall not apply to
persons who are subject to section 467-2.



(c)  In the course of operating a condominium
hotel, neither a real estate broker license nor a real estate salesperson
license shall be required of those employees of a condominium hotel operator
who only perform or facilitate the delivery of customary hotel services.



(d)  All employees handling or having custody or
control of the funds received by the condominium hotel operator shall be
covered by a fidelity bond.  The fidelity bond shall protect the condominium
hotel operator against fraudulent or dishonest acts by the employees of the
condominium hotel operator.



(e)  As used in this section, "operating a
condominium hotel" includes the management of the apartments or units in a
condominium project for purposes of providing transient lodging, and includes
the renting or leasing of condominium apartments or units directly or indirectly
from the apartment or unit owners for purposes of providing transient lodging. 
The condominium hotel operator shall provide a written contract to the owner or
owners of each apartment or unit under the condominium hotel operation,
expressing the exact agreements of each party including all financial and
accounting obligations, and the notification requirements of subsection (g).



(f)  A condominium hotel operator shall operate
in condominium projects specifically authorized for transient lodgings by
county zoning and regulations and specifically permitted by the condominium
project's declaration and bylaws.



(g)  The registered condominium hotel operator:



(1)  Shall not provide or offer lodgings thirty days
or longer;



(2)  Shall not be licensed as a real estate broker or
a real estate salesperson;



(3)  Shall not conduct any other activities contained
in the definition of the term "real estate broker";



(4)  Shall appoint an employee or principal to have
direct management and responsibility over condominium hotel operations; and



(5)  Shall provide evidence of written notification to
all representing apartment or unit owners of the provisions of this section
including the nonapplicability of the real estate recovery fund.



(h)  Any condominium hotel operator aggrieved
by the fraudulent or dishonest acts of an employee shall act promptly and
diligently to recover from the fidelity bond required by this section.  The
condominium hotel operator shall apply all proceeds received from the fidelity
bond against all losses incurred by apartment or unit owners due to fraudulent
or dishonest acts by employees.  If more than one apartment or unit owner
suffers a loss, the condominium hotel operator shall divide the proceeds among
the owners in proportion to each owner's loss.



(i)  All persons handling or having custody and
control of either the condominium hotel operator's or the apartment or unit
owner's funds shall be either employees of the condominium hotel operator or
principals of the condominium hotel operator.



(j)  The registration and fidelity bond
requirements of this section shall not apply to active real estate brokers, in
compliance with and licensed under this chapter, conducting condominium hotel
activity. [L 1985, c 141, §1; am L 1987, c 276, §1; am L 1988, c 145, §6 as
superseded by c 225, §1; am L 1989, c 144, §1; am L 1990, c 41, §2; am L 1991,
c 155, §5; am L 1994, c 100, §13; am L 1995, c 241, §10; am L 1997, c 45, §2
and c 232, §10; am L 1999, c 240, §9; am L 2001, c 245, §2; am L 2004, c 164,
§15; am L 2007, c 244, §4; am L 2008, c 28, §27]