EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1147* HOUSE BILL 1147 N1 2lr2703 By: Delegates Terrasa and Lehman Introduced and read first time: February 11, 2022 Assigned to: Environment and Transportation A BILL ENTITLED AN ACT concerning 1 Real Property – Cooperative Housing Corporations, Condominiums, and 2 Homeowners Associations – Virtual Meetings 3 FOR the purpose of requiring a person conducting a meeting of a cooperative housing 4 corporation, condominium, or homeowners association by telephone conference, 5 video conference, or similar electronic means, to provide a participant a reasonable 6 opportunity to participate in the meeting; requiring certain participants in a meeting 7 of a cooperative housing corporation, condominium, or homeowners association to 8 have equal access to any available chat function; and generally relating to 9 cooperative housing corporations, condominiums, and homeowners associations. 10 BY repealing and reenacting, with amendments, 11 Article – Corporations and Associations 12 Section 5–6B–25.1 13 Annotated Code of Maryland 14 (2014 Replacement Volume and 2021 Supplement) 15 BY repealing and reenacting, with amendments, 16 Article – Real Property 17 Section 11–139.3 and 11B–113.6 18 Annotated Code of Maryland 19 (2015 Replacement Volume and 2021 Supplement) 20 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21 That the Laws of Maryland read as follows: 22 Article – Corporations and Associations 23 5–6B–25.1. 24 (a) (1) Notwithstanding language contained in the governing documents of the 25 2 HOUSE BILL 1147 cooperative housing corporation, the board of directors may authorize any meetings of the 1 cooperative housing corporation, the board of directors, or a committee of the cooperative 2 housing corporation to be conducted or attended by telephone conference, video conference, 3 or similar electronic means. 4 (2) If a meeting is conducted by telephone conference, video conference, or 5 similar electronic means[, the]: 6 (I) THE equipment or system used must permit any member, board 7 member, or committee member in attendance to hear and be heard by all other members 8 participating in the meeting; 9 (II) THE PERSON CONDUCTING THE MEETI NG SHALL ALLOW 10 ALL PARTICIPANTS A REASONABLE OPPORTUNITY TO : 11 1. BE HEARD BY ALL OTHER MEMBERS PARTICIPATING 12 IN THE MEETING ; AND 13 2. CALL FOR A VOTE ON , OR OBJECT TO , MATTERS 14 PRESENTED AT THE MEE TING TO THE SAME EXT ENT AS IF THE MEETING WERE 15 CONDUCTED IN PERSON ; AND 16 (III) THE PERSON CONDUCTING THE MEETI NG MAY MUTE A 17 PARTICIPANT IF THE PARTICIPANT BECOMES DISRUPTIVE A ND IS PROVIDED A 18 WARNING. 19 (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 20 ELECTRONIC MEANS , ALL BOARD MEMBERS , COMMITTEE MEMBERS , AND OTHER 21 MEMBERS SHALL HAVE THE SAME ACCESS TO ANY CHAT F UNCTION. 22 (4) A link or instructions on how to access the meeting by telephone 23 conference, video conference, or similar electronic means shall be included in the notice of 24 the meeting. 25 [(4)] (5) No specific authorization from members shall be required to hold 26 a meeting electronically. 27 (b) Any member, board member, or committee member attending a meeting by 28 telephone conference, video conference, or similar electronic means shall be deemed present 29 for quorum and voting purposes. 30 (c) (1) (i) Any matter requiring a vote of the cooperative housing 31 corporation may be set by the board of directors for a vote at the meeting, and a ballot may 32 be delivered to members with notice of the meeting. 33 HOUSE BILL 1147 3 (ii) Only those members present during the telephone conference, 1 video conference, or similar electronic meeting shall be authorized to vote a ballot in 2 accordance with this subsection. 3 (iii) Members who are not present at the meeting may: 4 1. Vote by proxy in accordance with the requirements of the 5 governing documents and this title; and 6 2. Be considered present for quorum purposes through their 7 proxy. 8 (2) (i) The board of directors may set a reasonable deadline for return 9 of a ballot to the cooperative housing corporation, including return by electronic 10 transmission. 11 (ii) The deadline for return of the ballot shall be not later than 24 12 hours after the conclusion of the meeting. 13 (d) Notwithstanding language contained in the governing documents of the 14 cooperative housing corporation, nominations from the floor at the meeting are not required 15 if at least one candidate has been nominated to fill each open board position. 16 (e) The inability of a member to join a meeting due to technical difficulties with 17 the member’s telephone, computer, or other electronic device does not invalidate the 18 meeting or any action taken at the meeting. 19 Article – Real Property 20 11–139.3. 21 (a) (1) Notwithstanding language contained in the governing documents of the 22 council of unit owners, the board of directors may authorize any meetings of the council of 23 unit owners, the board of directors, or a committee of the council of unit owners or the board 24 of directors to be conducted or attended by telephone conference, video conference, or 25 similar electronic means. 26 (2) If a meeting is conducted by telephone conference, video conference, or 27 similar electronic means[, the]: 28 (I) THE equipment or system used must permit any unit owner, 29 board member, or committee member in attendance to hear and be heard by all others 30 participating in the meeting; 31 (II) THE PERSON CONDUCTING THE MEETI NG SHALL ALLOW 32 ALL PARTICIPANTS A REASONABLE OPPORTU NITY TO: 33 4 HOUSE BILL 1147 1. BE HEARD BY ALL OTHERS PARTICIPATING IN THE 1 MEETING; AND 2 2. CALL FOR A VOTE ON , OR OBJECT TO , MATTERS 3 PRESENTED AT THE MEE TING TO THE SAME EXT ENT AS IF THE MEETING WERE 4 CONDUCTED IN PERSON ; AND 5 (III) THE PERSON CONDUCTING THE MEETI NG MAY MUTE A 6 PARTICIPANT IF THE PARTICIPANT BECOMES DISRUPTIVE A ND IS PROVIDE D A 7 WARNING. 8 (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 9 ELECTRONIC MEANS , ALL BOARD MEMBERS , COMMITTEE MEMBERS , AND UNIT 10 OWNERS SHALL HAVE THE SAME ACCESS TO ANY CHAT F UNCTION. 11 (4) A link or instructions on how to access the meeting by telephone 12 conference, video conference, or similar electronic means shall be included in the notice of 13 the meeting. 14 [(4)] (5) No specific authorization from unit owners shall be required to 15 hold a meeting electronically. 16 (b) Any unit owner, board member, or committee member attending a meeting by 17 telephone conference, video conference, or similar electronic means shall be deemed present 18 for quorum and voting purposes. 19 (c) (1) (i) Any matter requiring a vote of the council of unit owners may be 20 set by the board of directors for a vote at the meeting, and a ballot may be delivered to unit 21 owners with notice of the meeting. 22 (ii) Only those unit owners present during the telephone conference, 23 video conference, or similar electronic meeting shall be authorized to vote by ballot in 24 accordance with this subsection. 25 (iii) Unit owners who are not present at the meeting may: 26 1. Vote by proxy in accordance with the requirements of the 27 governing documents and this title; and 28 2. Be considered present for quorum purposes through their 29 proxy. 30 (2) (i) The board of directors may set a reasonable deadline for return 31 of a ballot to the council of unit owners, including return by electronic transmission. 32 HOUSE BILL 1147 5 (ii) The deadline for return of the ballot shall be not later than 24 1 hours after the conclusion of the meeting. 2 (d) Notwithstanding language contained in the governing documents of the 3 council of unit owners, nominations from the floor at the meeting are not required if at least 4 one candidate has been nominated to fill each open board position. 5 (e) The inability of a unit owner to join a meeting due to technical difficulties with 6 the unit owner’s telephone, computer, or other electronic device does not invalidate the 7 meeting or any action taken at the meeting. 8 11B–113.6. 9 (a) (1) Notwithstanding language contained in the governing documents of the 10 homeowners association, the governing body may authorize meetings of the homeowners 11 association, the governing body, or a committee of the homeowners association to be 12 conducted or attended by telephone conference, video conference, or similar electronic 13 means. 14 (2) If a meeting is conducted by telephone conference, video conference, or 15 similar electronic means[, the]: 16 (I) THE equipment or system used must permit any lot owner, board 17 member, or committee member in attendance to hear and be heard by all others 18 participating in the meeting; 19 (II) THE PERSON CONDUCTING THE MEETI NG SHALL ALLOW 20 ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 21 1. BE HEARD BY ALL OTHER S PARTICIPATING IN T HE 22 MEETING; AND 23 2. CALL FOR A VOTE ON , OR OBJECT TO , MATTERS 24 PRESENTED AT THE MEE TING TO THE SAME EXT ENT AS IF THE MEETING WERE 25 CONDUCTED IN PERSON ; AND 26 (III) THE PERSON CONDUCTING THE MEETI NG MAY MUTE A 27 PARTICIPANT IF THE P ARTICIPANT BECOMES D ISRUPTIVE AND IS PRO VIDED A 28 WARNING. 29 (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 30 ELECTRONIC MEANS , ALL BOARD MEMBERS , COMMITTEE MEMBERS , AND LOT 31 OWNERS SHALL HAVE TH E SAME ACCESS TO ANY CHAT FUNCTION. 32 (4) A link or instructions on how to access the meeting by telephone 33 6 HOUSE BILL 1147 conference, video conference, or similar electronic means shall be included in the notice of 1 the meeting. 2 [(4)] (5) No specific authorization from lot owners shall be required to 3 hold a meeting electronically. 4 (b) Any lot owner, board member, or committee member attending a meeting by 5 telephone conference, video conference, or similar electronic means shall be deemed present 6 for quorum and voting purposes. 7 (c) (1) (i) Any matter requiring a vote of the homeowners association may 8 be set by the governing body for a vote at the meeting, and a ballot may be delivered to 9 members with notice of the meeting. 10 (ii) Only those lot owners present during the telephone conference, 11 video conference, or similar electronic meeting shall be authorized to vote a ballot in 12 accordance with this subsection. 13 (iii) Lot owners who are not present at the meeting may: 14 1. Vote by proxy in accordance with the requirements of the 15 governing documents and this title; and 16 2. Be considered present for quorum purposes through their 17 proxy. 18 (2) (i) The governing body may set a reasonable deadline for return of 19 a ballot to the homeowners association, including return by electronic transmission. 20 (ii) The deadline for return of the ballot shall be not later than 24 21 hours after the conclusion of the meeting. 22 (d) Notwithstanding language contained in the governing documents of the 23 homeowners association, nominations from the floor at the meeting are not required if at 24 least one candidate has been nominated to fill each open position in the governing body. 25 (e) The inability of a lot owner to join a meeting due to technical difficulties with 26 the lot owner’s telephone, computer, or other electronic device does not invalidate the 27 meeting or any action taken at the meeting. 28 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29 October 1, 2022. 30