Maryland 2022 Regular Session

Maryland House Bill HB1147 Latest Draft

Bill / Engrossed Version Filed 03/20/2022

                             
 
EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. 
        [Brackets] indicate matter deleted from existing law. 
         Underlining indicates amendments to bill. 
         Strike out indicates matter stricken from the bill by amendment or deleted from the law by 
amendment. 
          *hb1147*  
  
HOUSE BILL 1147 
N1   	2lr2703 
      
By: Delegates Terrasa and Lehman 
Introduced and read first time: February 11, 2022 
Assigned to: Environment and Transportation 
Committee Report: Favorable with amendments 
House action: Adopted 
Read second time: March 13, 2022 
 
CHAPTER ______ 
 
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  2 	HOUSE BILL 1147  
 
 
 
Article – Corporations and Associations 1 
 
5–6B–25.1. 2 
 
 (a) (1) Notwithstanding language contained in the governing documents of the 3 
cooperative housing corporation, the board of directors may authorize any meetings of the 4 
cooperative housing corporation, the board of directors, or a committee of the cooperative 5 
housing corporation to be conducted or attended by telephone conference, video conference, 6 
or similar electronic means. 7 
 
 (2) If a meeting is conducted by telephone conference, video conference, or 8 
similar electronic means[, the]:  9 
 
 (I) THE equipment or system used must permit any member, board 10 
member, or committee member in attendance to hear and be heard by all other members 11 
participating in the meeting IN ACCORDANC E WITH THE GOVERNING DOCUMENTS ;  12 
 
 (II) THE PERSON CONDUCTING THE MEETING SHALL AL LOW 13 
ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 14 
 
 1. BE HEARD BY ALL OTHER MEMBERS PARTICIPATIN G 15 
IN THE MEETING ; AND 16 
 
 2. CALL FOR A VOTE ON , OR OBJECT TO , MATTERS 17 
PRESENTED AT PARTICIPATE IN THE MEETING TO THE S AME EXTENT AS IF THE 18 
MEETING WERE CONDUCT ED IN PERSON; AND 19 
 
 (III) THE PERSON CONDUCTING THE MEETING MAY MUTE A 20 
PARTICIPANT IF THE P ARTICIPANT BECOMES D ISRUPTIVE AND IS PRO VIDED A 21 
WARNING PROVIDED THAT ALL PARTICIPANTS ARE GRA NTED THE ABILITY TO 22 
UNMUTE THEMSELVES , THE PERSON CONDUCTIN G THE MEETING OR THE IR 23 
DESIGNEE MAY MUTE AL L PARTICIPANTS: 24 
 
 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 25 
CONDUCTING BUSINESS ; 26 
 
 2. DURING PRESENTATIONS ; AND  27 
 
 3. TO AVOID INTERFERENCE F ROM BACKGROUND 28 
NOISE; AND 29 
 
 (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 30 
CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 31 
PERSON’S DESIGNEE MAY : 32   	HOUSE BILL 1147 	3 
 
 
 
 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 1 
UNMUTE; AND 2 
 
 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 3 
MEETING AFTER WARNIN G THE PARTICIPANT . 4 
 
 (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 5 
ELECTRONIC MEANS , ALL BOARD MEMBERS , COMMITTEE MEMBERS , AND OTHER 6 
MEMBERS PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY CHAT F UNCTION. 7 
 
 (4) A link or instructions on how to access the meeting by telephone 8 
conference, video conference, or similar electronic means shall be included in the notice of 9 
the meeting. 10 
 
 [(4)] (5) No specific authorization from members shall be required to hold 11 
a meeting electronically. 12 
 
 (b) Any member, board member, or committee member attending a meeting by 13 
telephone conference, video conference, or similar electronic means shall be deemed present 14 
for quorum and voting purposes. 15 
 
 (c) (1) (i) Any matter requiring a vote of the cooperative housing 16 
corporation may be set by the board of directors for a vote at the meeting, and a ballot may 17 
be delivered to members with notice of the meeting. 18 
 
 (ii) Only those members present during the telephone conference, 19 
video conference, or similar electronic meeting shall be authorized to vote a ballot in 20 
accordance with this subsection. 21 
 
 (iii) Members who are not present at the meeting may: 22 
 
 1. Vote by proxy in accordance with the requirements of the 23 
governing documents and this title; and 24 
 
 2. Be considered present for quorum purposes through their 25 
proxy. 26 
 
 (2) (i) The board of directors may set a reasonable deadline for return 27 
of a ballot to the cooperative housing corporation, including return by electronic 28 
transmission. 29 
 
 (ii) The deadline for return of the ballot shall be not later than 24 30 
hours after the conclusion of the meeting. 31 
  4 	HOUSE BILL 1147  
 
 
 (d) Notwithstanding language contained in the governing documents of the 1 
cooperative housing corporation, nominations from the floor at the meeting are not required 2 
if at least one candidate has been nominated to fill each open board position. 3 
 
 (e) The inability of a member to join a meeting due to technical difficulties with 4 
the member’s telephone, computer, or other electronic device does not invalidate the 5 
meeting or any action taken at the meeting. 6 
 
Article – Real Property 7 
 
11–139.3. 8 
 
 (a) (1) Notwithstanding language contained in the governing documents of the 9 
council of unit owners, the board of directors may authorize any meetings of the council of 10 
unit owners, the board of directors, or a committee of the council of unit owners or the board 11 
of directors to be conducted or attended by telephone conference, video conference, or 12 
similar electronic means. 13 
 
 (2) If a meeting is conducted by telephone conference, video conference, or 14 
similar electronic means[, the]: 15 
 
 (I) THE equipment or system used must permit any unit owner, 16 
board member, or committee member in attendance to hear and be heard by all others 17 
participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS;  18 
 
 (II) THE PERSON CONDUCTING THE MEETING SH ALL ALLOW 19 
ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 20 
 
 1. BE HEARD BY ALL OTHER S PARTICIPATING IN T HE 21 
MEETING; AND 22 
 
 2. CALL FOR A VOTE ON , OR OBJECT TO , MATTERS 23 
PRESENTED AT PARTICIPATE IN THE MEETING TO THE S AME EXTENT AS IF THE 24 
MEETING WERE CON DUCTED IN PERSON ; AND 25 
 
 (III) THE PERSON CONDUCTING THE MEETING MAY MUTE A 26 
PARTICIPANT IF THE P ARTICIPANT BECOMES D ISRUPTIVE AND IS PRO VIDED A 27 
WARNING PROVIDED THAT ALL PAR TICIPANTS ARE GRANTE D THE ABILITY TO 28 
UNMUTE THEMSELVES , THE PERSON CONDUCTIN G THE MEETING OR THE PERSO N’S 29 
DESIGNEE MAY MUTE AL L PARTICIPANTS: 30 
 
 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 31 
CONDUCTING BUSINESS ; 32 
 
 2. DURING PRESENTATIONS ; AND  33   	HOUSE BILL 1147 	5 
 
 
 
 3. TO AVOID INTERFERENCE FROM BACKGROUND 1 
NOISE; AND 2 
 
 (IV) IF A PARTICIPANT INTERFERES IN THE AB ILITY TO 3 
CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 4 
PERSON’S DESIGNEE MAY : 5 
 
 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 6 
UNMUTE; AND 7 
 
 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 8 
MEETING AFTER WARNIN G THE PARTICIPANT. 9 
 
 (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 10 
ELECTRONIC MEANS , ALL BOARD MEMBERS , COMMITTEE MEMBERS , AND UNIT 11 
OWNERS PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY CHAT F UNCTION. 12 
 
 (4) A link or instructions on how to access the meeting by telephone 13 
conference, video conference, or similar electronic means shall be included in the notice of 14 
the meeting. 15 
 
 [(4)] (5) No specific authorization from unit owners shall be required to 16 
hold a meeting electronically. 17 
 
 (b) Any unit owner, board member, or committee member attending a meeting by 18 
telephone conference, video conference, or similar electronic means shall be deemed present 19 
for quorum and voting purposes. 20 
 
 (c) (1) (i) Any matter requiring a vote of the council of unit owners may be 21 
set by the board of directors for a vote at the meeting, and a ballot may be delivered to unit 22 
owners with notice of the meeting. 23 
 
 (ii) Only those unit owners present during the telephone conference, 24 
video conference, or similar electronic meeting shall be authorized to vote by ballot in 25 
accordance with this subsection. 26 
 
 (iii) Unit owners who are not present at the meeting may: 27 
 
 1. Vote by proxy in accordance with the requirements of the 28 
governing documents and this title; and 29 
 
 2. Be considered present for quorum purposes through their 30 
proxy. 31 
  6 	HOUSE BILL 1147  
 
 
 (2) (i) The board of directors may set a reasonable deadline for return 1 
of a ballot to the council of unit owners, including return by electronic transmission. 2 
 
 (ii) The deadline for return of the ballot shall be not later than 24 3 
hours after the conclusion of the meeting. 4 
 
 (d) Notwithstanding language contained in the governing documents of the 5 
council of unit owners, nominations from the floor at the meeting are not required if at least 6 
one candidate has been nominated to fill each open board position. 7 
 
 (e) The inability of a unit owner to join a meeting due to technical difficulties with 8 
the unit owner’s telephone, computer, or other electronic device does not invalidate the 9 
meeting or any action taken at the meeting. 10 
 
11B–113.6. 11 
 
 (a) (1) Notwithstanding language contained in the governing documents of the 12 
homeowners association, the governing body may authorize meetings of the homeowners 13 
association, the governing body, or a committee of the homeowners association to be 14 
conducted or attended by telephone conference, video conference, or similar electronic 15 
means. 16 
 
 (2) If a meeting is conducted by telephone conference, video conference, or 17 
similar electronic means[, the]: 18 
 
 (I) THE equipment or system used must permit any lot owner, board 19 
member, or committee member in attendance to hear and be heard by all others 20 
participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS;  21 
 
 (II) THE PERSON CONDUCTING THE MEETING S HALL ALLOW 22 
ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 23 
 
 1. BE HEARD BY ALL OTHER S PARTICIPATING IN T HE 24 
MEETING; AND 25 
 
 2. CALL FOR A VOTE ON , OR OBJECT TO , MATTERS 26 
PRESENTED AT PARTICIPATE IN THE MEETING TO THE S AME EXTENT AS IF THE 27 
MEETING WERE CONDUCT ED IN PERSON; AND 28 
 
 (III) THE PERSON CONDUCTING THE MEETING MAY MUTE A 29 
PARTICIPANT IF THE P ARTICIPANT BECOMES D ISRUPTIVE AND IS PRO VIDED A 30 
WARNING PROVIDED THAT ALL PAR TICIPANTS ARE GRANTE D THE ABILITY TO 31 
UNMUTE THEMSELVES , THE PERSON CONDUCTIN G THE MEETING OR THE PERSON’S 32 
DESIGNEE MAY MUTE AL L PARTICIPANTS: 33 
   	HOUSE BILL 1147 	7 
 
 
 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 1 
CONDUCTING BUSINESS ; 2 
 
 2. DURING PRESENTATIONS ; AND  3 
 
 3. TO AVOID INTERFERENCE FROM BACKGROUND 4 
NOISE; AND 5 
 
 (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 6 
CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 7 
PERSON’S DESIGNEE MAY : 8 
 
 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 9 
UNMUTE; AND 10 
 
 2. IF NECESSARY, REMOVE THE PARTICIPANT FR OM THE 11 
MEETING AFTER WARNIN G THE PARTICIPANT . 12 
 
 (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 13 
ELECTRONIC MEANS , ALL BOARD MEMBERS , COMMITTEE MEMBERS , AND LOT 14 
OWNERS PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY CHAT F UNCTION. 15 
 
 (4) A link or instructions on how to access the meeting by telephone 16 
conference, video conference, or similar electronic means shall be included in the notice of 17 
the meeting. 18 
 
 [(4)] (5) No specific authorization from lot owners shall be required to 19 
hold a meeting electronically. 20 
 
 (b) Any lot owner, board member, or committee member attending a meeting by 21 
telephone conference, video conference, or similar electronic means shall be deemed present 22 
for quorum and voting purposes. 23 
 
 (c) (1) (i) Any matter requiring a vote of the homeowners association may 24 
be set by the governing body for a vote at the meeting, and a ballot may be delivered to 25 
members with notice of the meeting. 26 
 
 (ii) Only those lot owners present during the telephone conference, 27 
video conference, or similar electronic meeting shall be authorized to vote a ballot in 28 
accordance with this subsection. 29 
 
 (iii) Lot owners who are not present at the meeting may: 30 
 
 1. Vote by proxy in accordance with the requirements of the 31 
governing documents and this title; and 32 
  8 	HOUSE BILL 1147  
 
 
 2. Be considered present for quorum purposes through their 1 
proxy. 2 
 
 (2) (i) The governing body may set a reasonable deadline for return of 3 
a ballot to the homeowners association, including return by electronic transmission. 4 
 
 (ii) The deadline for return of the ballot shall be not later than 24 5 
hours after the conclusion of the meeting. 6 
 
 (d) Notwithstanding language contained in the governing documents of the 7 
homeowners association, nominations from the floor at the meeting are not required if at 8 
least one candidate has been nominated to fill each open position in the governing body. 9 
 
 (e) The inability of a lot owner to join a meeting due to technical difficulties with 10 
the lot owner’s telephone, computer, or other electronic device does not invalidate the 11 
meeting or any action taken at the meeting. 12 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13 
October 1, 2022.  14 
 
 
 
 
Approved: 
________________________________________________________________________________  
 Governor. 
________________________________________________________________________________  
  Speaker of the House of Delegates. 
________________________________________________________________________________  
         President of the Senate.