Maryland 2022 Regular Session

Maryland House Bill HB26 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0026
6	6
7	7	HOUSE BILL 26
8	8	C2, N1 2lr0599
9	9	HB 367/21 – ENT (PRE–FILED)
10	10	By: Delegate Holmes
11	11	Requested: September 29, 2021
12	12	Introduced and read first time: January 12, 2022
13	13	Assigned to: Environment and Transportation
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Real Property – Regulation of Common Ownership Community Managers 2
20	20
21	21	FOR the purpose of creating the State Board of Common Ownership Community Managers 3
22	22	in the Maryland Department of Labor to oversee the licensing of community 4
23	23	managers who provide management services for common ownership communities; 5
24	24	requiring a common ownership community to register with the Board under certain 6
25	25	circumstances; imposing certain duties on a contracting party concerning a fidelity 7
26	26	bond or theft insurance under certain circumstances; requiring a contract to provide 8
27	27	management services to include certain provisions; making certain provisions of this 9
28	28	Act subject to the Maryland Program Evaluation Act; establishing the State Board 10
29	29	of Common Ownership Community Managers Fund as a special, nonlapsing fund; 11
30	30	requiring that certain interest earnings be credited to the Fund; requiring the 12
31	31	Secretary of Labor, in consultation with the Board, to calculate certain costs 13
32	32	annually; authorizing the Department of Budget and Management to advance 14
33	33	certain funds to the Board and requiring the Board to reimburse certain funds under 15
34	34	certain circumstances; and generally relating to the regulation of common ownership 16
35	35	community managers. 17
36	36
37	37	BY renumbering 18
38	38	Article – State Government 19
39	39	Section 8–403(13) through (62), respectively 20
40	40	to be Section 8–403(14) through (63), respectively 21
41	41	Annotated Code of Maryland 22
42	42	(2021 Replacement Volume) 23
43	43
44	44	BY adding to 24
45	45	Article – Business Occupations and Professions 25
46	46	Section 22–101 through 22–802 to be under the new title “Title 22. Common 26
47	47	Ownership Community Managers” 27
48	48	Annotated Code of Maryland 28 2 HOUSE BILL 26
49	49
50	50
51	51	(2018 Replacement Volume and 2021 Supplement) 1
52	52
53	53	BY adding to 2
54	54	Article – Business Regulation 3
55	55	Section 2–106.15, 2–106.16, and 2–108(a)(34) 4
56	56	Annotated Code of Maryland 5
57	57	(2015 Replacement Volume and 2021 Supplement) 6
58	58
59	59	BY adding to 7
60	60	Article – Corporations and Associations 8
61	61	Section 5–6B–12.1 9
62	62	Annotated Code of Maryland 10
63	63	(2014 Replacement Volume and 2021 Supplement) 11
64	64
65	65	BY adding to 12
66	66	Article – Real Property 13
67	67	Section 11–130.1 and 11B–115.2 14
68	68	Annotated Code of Maryland 15
69	69	(2015 Replacement Volume and 2021 Supplement) 16
70	70
71	71	BY repealing and reenacting, without amendments, 17
72	72	Article – State Finance and Procurement 18
73	73	Section 6–226(a)(2)(i) 19
74	74	Annotated Code of Maryland 20
75	75	(2021 Replacement Volume) 21
76	76
77	77	BY repealing and reenacting, with amendments, 22
78	78	Article – State Finance and Procurement 23
79	79	Section 6–226(a)(2)(ii)144. and 145. 24
80	80	Annotated Code of Maryland 25
81	81	(2021 Replacement Volume) 26
82	82
83	83	BY adding to 27
84	84	Article – State Finance and Procurement 28
85	85	Section 6–226(a)(2)(ii)146. 29
86	86	Annotated Code of Maryland 30
87	87	(2021 Replacement Volume) 31
88	88
89	89	BY adding to 32
90	90	Article – State Government 33
91	91	Section 8–403(13) 34
92	92	Annotated Code of Maryland 35
93	93	(2021 Replacement Volume) 36
94	94
95	95	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 37
96	96	That Section(s) 8–403(13) through (62), respectively, of Article – State Government of the 38 HOUSE BILL 26 3
97	97
98	98
99	99	Annotated Code of Maryland be renumbered to be Section(s) 8–403(14) through (63), 1
100	100	respectively. 2
101	101
102	102	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 3
103	103	as follows: 4
104	104
105	105	Article – Business Occupations and Professions 5
106	106
107	107	TITLE 22. COMMON OWNERSHIP COMMUNITY MANAGERS. 6
108	108
109	109	SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 7
110	110
111	111	22–101. 8
112	112
113	113	(A) IN THIS TITLE THE FOL LOWING WORDS HAVE THE MEANINGS 9
114	114	INDICATED. 10
115	115
116	116	(B) “BOARD” MEANS THE STATE BOARD OF COMMON OWNERSHIP 11
117	117	COMMUNITY MANAGERS. 12
118	118
119	119	(C) (1) “COMMON OWNERSHIP COMM UNITY” MEANS: 13
120	120
121	121	(I) A CONDOMINIUM AS DEF INED IN § 11–101 OF THE REAL 14
122	122	PROPERTY ARTICLE THAT IS USED FOR RESIDENTIAL PURPOSES ; 15
123	123
124	124	(II) A COOPERATIVE HOUSIN G CORPORATION AS DEF INED IN § 16
125	125	5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND 17
126	126
127	127	(III) A HOMEOWNERS ASSOCIA TION AS DEFINED IN § 11B–101 OF 18
128	128	THE REAL PROPERTY ARTICLE. 19
129	129
130	130	(2) “COMMON OWNERSHIP COMM UNITY” DOES NOT INCLUDE A 20
131	131	TIME–SHARE PROJECT AS DEF INED IN § 11A–101 OF THE REAL PROPERTY 21
132	132	ARTICLE. 22
133	133
134	134	(D) “LICENSE” MEANS, UNLESS THE CONTEXT R EQUIRES OTHERWISE , A 23
135	135	LICENSE ISSUED BY TH E BOARD UNDER SUBTITLE 3 OF THIS TITLE THAT ALLOWS 24
136	136	AN INDIVIDUAL TO PRO VIDE MANAGEMENT SERV ICES FOR A COMMON OW NERSHIP 25
137	137	COMMUNITY . 26
138	138
139	139	(E) “LICENSED ASSOCIATE CO MMUNITY MANAGER ” MEANS, UNLESS THE 27
140	140	CONTEXT REQUIRES OTH ERWISE, AN INDIVIDUAL WHO IS ISSUED A LIMITED 28
141	141	LICENSE BY THE BOARD UNDER SUBTITLE 4 OF THIS T ITLE TO PROVIDE 29
142	142	MANAGEMENT SERVICES FOR A COMMON OWNERSH IP COMMUNITY UNDER T HE 30
143	143	SUPERVISION OF A LIC ENSED COMMUNITY MANA GER. 31 4 HOUSE BILL 26
144	144
145	145
146	146
147	147	(F) “LICENSED COMMUNITY MA NAGER” MEANS, UNLESS THE CONTEXT 1
148	148	REQUIRES OTHERWISE , AN INDIVIDUAL WHO IS ISSUED A LICENSE BY THE BOARD 2
149	149	UNDER SUBTITLE 3 OF THIS TITLE TO PROVIDE MANAGEMEN T SERVICES FOR A 3
150	150	COMMON OWNERSHIP COM MUNITY. 4
151	151
152	152	(G) “LIMITED LICENSE ” MEANS, UNLESS THE CONTEXT R EQUIRES 5
153	153	OTHERWISE, A LIMITED LICENSE IS SUED BY THE BOARD UNDER SUBTITLE 4 OF THIS 6
154	154	TITLE THAT ALLOWS TH E INDIVIDUAL TO PROVIDE MAN AGEMENT SERVICES FOR A 7
155	155	COMMON OWNERSHIP COM MUNITY UNDER THE SUP ERVISION OF A LICENS ED 8
156	156	COMMUNITY MANAGER . 9
157	157
158	158	(H) “PROVIDE MANAGEMENT SE RVICES” MEANS: 10
159	159
160	160	(1) TO ACT WITH THE AUTH ORITY OF THE COMMON OWNERSHIP 11
161	161	COMMUNITY IN ITS BUS INESS, LEGAL, FINANCIAL, OR OTHER TRANSACTION S WITH 12
162	162	MEMBERS AND NONMEMBE RS OF THE COMMON OWN ERSHIP COMMUNITY ; 13
163	163
164	164	(2) TO EXECUTE THE RESOL UTIONS AND DECISIONS OF A COMMON 14
165	165	OWNERSHIP COMMUNITY ; 15
166	166
167	167	(3) TO ENFORCE THE RIGHT S OF THE COMMON OWNE RSHIP 16
168	168	COMMUNITY SECURED BY STATUTE, CONTRACT, COVENANT, RULE, OR BYLAW WITH 17
169	169	THE AUTHORITY OF THE COMMON OWNERSHIP COM MUNITY; 18
170	170
171	171	(4) TO NEGOTIATE CONTRAC TS OR OTHERWISE COOR DINATE OR 19
172	172	ARRANGE FOR SERVICES OR THE PURCHASE OF P ROPERTY AND GOODS FO R OR ON 20
173	173	BEHALF OF A COMMON O WNERSHIP C OMMUNITY; 21
174	174
175	175	(5) TO COLLECT, DISBURSE, OR OTHERWISE EXERCIS E DOMINION OR 22
176	176	CONTROL OVER MONEY O R OTHER PROPERTY BEL ONGING TO A COMMON 23
177	177	OWNERSHIP COMMUNITY ; 24
178	178
179	179	(6) TO PREPARE BUDGETS , FINANCIAL STATEMENTS , OR OTHER 25
180	180	FINANCIAL REPORTS FO R A COMMON OWNERSHIP COMMUNITY ; 26
181	181
182	182	(7) TO ARRANGE , CONDUCT, OR COORDINATE MEETIN GS OF A 27
183	183	COMMON OWNERSHIP COM MUNITY OR THE GOVERN ING BODY OF A COMMON 28
184	184	OWNERSHIP COMMUNITY ; OR 29
185	185
186	186	(8) TO OFFER OR SOLICIT TO PERFORM ANY OF TH E ACTS OR 30
187	187	SERVICES LISTED IN I TEMS (1) THROUGH (7) OF THIS SUBSECTION ON BEHA LF OF A 31
188	188	COMMON OWNERSHIP COM MUNITY. 32
189	189	HOUSE BILL 26 5
190	190
191	191
192	192	(I) “RESPONSIBLE MANAGER ” MEANS A LICENSED COM MUNITY MANAGER 1
193	193	WHO HAS PRIMARY RESP ONSIBILITY FOR PROVI DING MANAGEMENT SERV ICES TO A 2
194	194	COMMON OWNERSHIP COM MUNITY UNDER THE TER MS OF A CONTRACT ENT ERED 3
195	195	INTO BY THE COMMON OWNERSHIP COMMUNITY . 4
196	196
197	197	22–102. 5
198	198
199	199	THE PROVISIONS OF THI S TITLE THAT REQUIRE AN INDIVIDUAL TO BE ISSUED 6
200	200	A LICENSE OR A LIMIT ED LICENSE DO NOT PROHIBIT: 7
201	201
202	202	(1) AN INDIVIDUAL WHO IS A REGULAR, SALARIED EMPLOYEE OF A 8
203	203	LICENSED COMMUNITY M ANAGER OR A SINGLE COMMON OW NERSHIP COMMUNITY 9
204	204	FROM PERFORMING ADMI NISTRATIVE, INTERNAL, BOOKKEEPING , OR MINISTERIAL 10
205	205	FUNCTIONS IN SUPPORT OF THE LICENSED COMM UNITY MANAGER OR THE SINGLE 11
206	206	COMMON OWNERSHIP COM MUNITY; 12
207	207
208	208	(2) AN INDIVIDUAL WHO IS ADMINISTRATIVE SUPPO RT STAFF OR AN 13
209	209	ASSISTANT OF A LICEN SED COMMUNITY MANAGE R FROM INCIDENTALLY PROVIDING 14
210	210	MANAGEMENT SERVICES IF THE INDIVIDUAL IS SUPERVISED BY A LICE NSED 15
211	211	COMMUNITY MANAGER ; 16
212	212
213	213	(3) A RESIDENT OF A COMM ON OWNERSHIP COMMUNI TY WHO ACTS 17
214	214	WITHOUT COMPENSATION FROM PROV IDING MANAGEMENT SER VICES FOR THAT 18
215	215	COMMON OWNERSHIP COM MUNITY; 19
216	216
217	217	(4) A MEMBER OF THE GOVE RNING BODY OF A COMM ON OWNERSHIP 20
218	218	COMMUNITY WHO ACTS W ITHOUT COMPENSATION FROM PROVIDING MANAG EMENT 21
219	219	SERVICES FOR THAT CO MMON OWNERSHIP COMMU NITY; 22
220	220
221	221	(5) AN ATTORNEY AT LAW FROM REPRESENTIN G A COMMON 23
222	222	OWNERSHIP COMMUNITY , A LICENSED COMMUNITY MANAGER, OR A LICENSED 24
223	223	ASSOCIATE COMMUNITY MANAGER IN ANY BUSINESS THAT CONSTITUTES THE 25
224	224	PRACTICE OF LAW ; 26
225	225
226	226	(6) AN INDIVIDUAL LICENS ED UNDER THIS ARTICL E AS A LICENSED 27
227	227	CERTIFIED PUBL IC ACCOUNTANT , A LICENSED REAL ESTA TE BROKER , OR A 28
228	228	LICENSED ASSOCIATE R EAL ESTATE BROKER FROM PROVIDING TO A COMMON 29
229	229	OWNERSHIP COMMUNITY THE SERVICES FOR WHI CH THE INDIVIDUAL IS LICENSED; 30
230	230
231	231	(7) AN INDIVIDUAL WHO AC TS AS A RECEIVER OR TRUSTEE IN 31
232	232	BANKRUPTCY IN THE PERFORMANCE O F DUTIES OR AN INDIV IDUAL WHO ACTS 32
233	233	UNDER A COURT ORDER FROM PROVIDING MANAG EMENT SERVICES FOR A COMMON 33
234	234	OWNERSHIP COMMUNITY ; OR 34
235	235	6 HOUSE BILL 26
236	236
237	237
238	238	(8) AN INDIVIDUAL WHO IS AN EMPLOYEE OF A COM MON OWNERSHIP 1
239	239	COMMUNITY FROM PROVI DING MANAGEMENT SERV ICES ONLY TO THAT COMMON 2
240	240	OWNERSHIP COMMUNITY OR TO AN AFFILIATED COMMON OWNERSHIP COM MUNITY. 3
241	241
242	242	SUBTITLE 2. STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS. 4
243	243
244	244	22–201. 5
245	245
246	246	THERE IS A STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS 6
247	247	IN THE DEPARTMENT . 7
248	248
249	249	22–202. 8
250	250
251	251	(A) (1) THE BOARD CONSISTS OF NIN E MEMBERS. 9
252	252
253	253	(2) OF THE NINE MEMBERS O F THE BOARD: 10
254	254
255	255	(I) FIVE SHALL BE LICENSED CO MMON OWNERSHIP 11
256	256	COMMUNITY MANAGERS ; 12
257	257
258	258	(II) ONE SHALL BE A LAWYE R, AS DEFINED IN § 10–101 OF THIS 13
259	259	ARTICLE, WHOSE PRIMARY PRACTI CE INCLUDES THE REPRESENTATION O F 14
260	260	COMMON OWNERSHIP COM MUNITIES; AND 15
261	261
262	262	(III) THREE SHALL BE RESIDENT OW NERS IN A COMMON 16
263	263	OWNERSHIP COMMUNITY . 17
264	264
265	265	(3) THE GOVERNOR SHALL APPOIN T THE MEMBERS WITH T HE 18
266	266	ADVICE OF THE SECRETARY AND THE ADV ICE AND CONSENT OF T HE SENATE. 19
267	267
268	268	(B) EACH MEMBER OF THE BOARD MUST BE A RESID ENT OF THE STATE. 20
269	269
270	270	(C) BEFORE TAKING OFFICE , EACH APPOINTEE TO TH E BOARD SHALL TAKE 21
271	271	THE OATH REQUIRED BY ARTICLE I, § 9 OF THE MARYLAND CONSTITUTION. 22
272	272
273	273	(D) (1) THE TERM OF A MEMBER IS 4 YEARS AND BEGINS JULY 1. 23
274	274
275	275	(2) THE TERMS OF THE MEMB ERS ARE STAGGERED AS REQUIRED BY 24
276	276	THE TERMS PROVIDED F OR MEMBERS OF THE BOARD ON OCTOBER 1, 2022. 25
277	277
278	278	(3) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 26
279	279	A SUCCESSOR IS APPOI NTED AND QUALIFIES . 27
280	280	HOUSE BILL 26 7
281	281
282	282
283	283	(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 1
284	284	ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 2
285	285	QUALIFIES. 3
286	286
287	287	(5) A MEMBER MAY NOT SERVE MORE THAN TWO CONSEC UTIVE 4
288	288	TERMS. 5
289	289
290	290	(E) FOR FISCAL YEAR 2023, THE DEPARTMENT SHALL ALLO CATE NOT 6
291	291	MORE THAN $100,000 FOR THE ESTABLISHMEN T OF THE BOARD, INCLUDING 7
292	292	PERSONNEL EXPENSES . 8
293	293
294	294	22–203. 9
295	295
296	296	FROM AMONG THE MEMBER S OF THE BOARD, THE GOVERNOR SHALL 10
297	297	APPOINT A CHAIR AND A VICE CHAIR. 11
298	298
299	299	22–204. 12
300	300
301	301	(A) A MAJORITY OF THE MEMB ERS THEN SERVING ON THE BOARD IS A 13
302	302	QUORUM. 14
303	303
304	304	(B) THE BOARD SHALL DETERMINE THE TIMES AND PLACES OF ITS 15
305	305	MEETINGS. 16
306	306
307	307	(C) A MEMBER OF THE BOARD: 17
308	308
309	309	(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 18
310	310	BUT 19
311	311
312	312	(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 20
313	313	STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 21
314	314
315	315	(D) THE BOARD MAY EMPLOY STAF F IN ACCORDANCE WITH THE STATE 22
316	316	BUDGET. 23
317	317
318	318	22–205. 24
319	319
320	320	(A) IN ADDITION TO ANY PO WERS SET FORTH ELSEW HERE, THE BOARD 25
321	321	MAY: 26
322	322
323	323	(1) ADOPT BYLAWS AS NECE SSARY TO DO THE BUSI NESS OF THE 27
324	324	BOARD; AND 28
325	325
326	326	(2) ADOPT ANY REGULATION S TO CARRY OUT THIS TITLE. 29
327	327	8 HOUSE BILL 26
328	328
329	329
330	330	(B) IN ADDITION TO ANY DU TIES SET FORTH ELSEW HERE, THE BOARD 1
331	331	SHALL: 2
332	332
333	333	(1) ADOPT RULES OF PROFE SSIONAL CONDUCT AS A PPROPRIATE FOR 3
334	334	INDIVIDUALS ISSUED A LICENSE OR A LIMITED LICENSE UNDER THIS T ITLE; 4
335	335
336	336	(2) ESTABLISH CRITERIA AND A PROCESS FOR CERTIF ICATION OF A 5
337	337	VARIETY OF EDUCATION AL OFFERINGS AND TRA INING PROGRAMS FOR ISSUING 6
338	338	LICENSES OR LIMITED LICENSES UNDER THIS TITLE; 7
339	339
340	340	(3) ESTABLISH CONTINUING EDUCATION REQUIREMEN TS FOR 8
341	341	INDIVIDUALS WHO HAVE BEEN ISSUED A LICENSE OR A LIMIT ED LICENSE UNDER 9
342	342	THIS TITLE; AND 10
343	343
344	344	(4) KEEP A RECORD OF ITS PROCEEDINGS . 11
345	345
346	346	(C) THE BOARD MAY ESTABLISH B Y REGULATION : 12
347	347
348	348	(1) THE PROCESS OF RESOL VING DISCIPLINARY MA TTERS PENDING 13
349	349	BEFORE THE BOARD THROUGH NONJUDI CIAL DISPUTE RESOLUT ION PROCESSES; 14
350	350
351	351	(2) EDUCATION AND TRAINI NG OPPORTUNITIES FOR GOVERNING 15
352	352	BODIES OF COMMON OWN ERSHIP COMMUNITIES ; AND 16
353	353
354	354	(3) ANY OTHER PROCEDURES OR STANDARDS CONSIST ENT WITH THE 17
355	355	MISSION OF THE BOARD. 18
356	356
357	357	22–206. 19
358	358
359	359	(A) THE BOARD SHALL MAINTAIN A PUBLIC LIST OF THE NAMES AND 20
360	360	MAILING ADDRESSES OF ALL INDIVIDUALS ISSU ED A LICENSE OR A LI MITED 21
361	361	LICENSE UNDER THIS T ITLE. 22
362	362
363	363	(B) EACH INDIVIDUAL ISSUE D A LICENSE OR A LIM ITED LICENSE UNDER 23
364	364	THIS TITLE SHALL: 24
365	365
366	366	(1) DESIGNATE A MAILING ADDRESS AT THE TIME OF ISSUANCE OF 25
367	367	THE ORIGINAL LICENSE OR LI MITED LICENSE AND ON RENEWAL OF THE LICEN SE OR 26
368	368	LIMITED LICENSE ; AND 27
369	369
370	370	(2) NOTIFY THE BOARD OF A CHANGE OF ADDRESS WITHIN 30 DAYS 28
371	371	AFTER THE CHANGE . 29
372	372
373	373	22–207. 30 HOUSE BILL 26 9
374	374
375	375
376	376
377	377	(A) (1) THE BOARD MAY SET BY REGU LATION REASONABLE FE ES FOR ITS 1
378	378	SERVICES. 2
379	379
380	380	(2) THE FEES CHARGED SHAL L BE: 3
381	381
382	382	(I) SET SO AS TO PRODUCE FUNDS TO APPROXIMATE THE COST 4
383	383	OF MAINTAINING THE BOARD; 5
384	384
385	385	(II) BASED ON THE CALCULA TIONS PERFORMED BY T HE 6
386	386	SECRETARY UNDER § 2–106.16 OF THE BUSINESS REGULATION ARTICLE; AND 7
387	387
388	388	(III) CONSISTENT WITH OTHER FEES FOR COMPARABLE 8
389	389	LICENSES ISSUED BY O THER BOARDS AND COMM ISSIONS IN THE STATE. 9
390	390
391	391	(B) THE BOARD SHALL PUBLISH T HE FEE SCHEDULE SET BY THE BOARD. 10
392	392
393	393	(C) (1) THE BOARD SHALL PAY ALL F EES COLLECTED UNDER THIS TITLE 11
394	394	TO THE COMPTROLLER . 12
395	395
396	396	(2) THE COMPTROLLER SHALL DIS TRIBUTE THE FEES TO THE STATE 13
397	397	BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS FUND ESTABLISHED 14
398	398	UNDER § 2–106.15 OF THE BUSINESS REGULATION ARTICLE. 15
399	399
400	400	22–208. 16
401	401
402	402	THE BOARD EXERCISES ITS P OWERS, DUTIES, AND FUNCTIONS SUBJEC T TO 17
403	403	THE AUTHORITY OF THE SECRETARY. 18
404	404
405	405	22–209. 19
406	406
407	407	(A) IN ADDITION TO ANY OT HER REMEDY AUTHORIZE D UNDER THIS TITLE , 20
408	408	THE BOARD, WITH THE APPROVAL OF THE ATTORNEY GENERAL, MAY SUE IN THE 21
409	409	NAME OF THE STATE TO ENJOIN ANY ACT TH AT IS PROHIBITED UND ER SUBTITLE 7 22
410	410	OF THIS TITLE. 23
411	411
412	412	(B) THE BOARD MAY TAKE APPROP RIATE ACTIONS TO : 24
413	413
414	414	(1) ASSIST A COMMON OWNE RSHIP COMMUNITY IN E XERCISING ANY 25
415	415	RIGHTS OF THE COMMON OWNERSHIP COMMUNITY UNDER THIS TITLE ; OR 26
416	416
417	417	(2) ENTER INTO COOPERATI VE AND INFORMATION –SHARING 27
418	418	AGREEMENTS WITH ANY UNIT OF LAW ENFORCEMENT AS ALLOW ED BY LAW. 28
419	419
420	420	SUBTITLE 3. LICENSED COMMUNITY MANAGERS. 29 10 HOUSE BILL 26
421	421
422	422
423	423
424	424	22–301. 1
425	425
426	426	(A) AN INDIVIDUAL MUST BE I SSUED A LICENSE BY THE BOARD BEFORE 2
427	427	THE INDIVIDUAL MAY P ROVIDE MANAGEMENT SE RVICES AS A LICENSED 3
428	428	COMMUNITY MANAGER FO R A COMMON OWNERSHIP COMMUNI TY IN THE STATE. 4
429	429
430	430	(B) A LICENSED COMMUNITY M ANAGER MAY PROVIDE M ANAGEMENT 5
431	431	SERVICES FOR A COMMO N OWNERSHIP COMMUNIT Y ONLY UNDER THE TER MS OF A 6
432	432	CONTRACT ENTERED INT O BY THE COMMON OWNERSHIP COMMUNITY . 7
433	433
434	434	22–302. 8
435	435
436	436	(A) TO QUALIFY FOR A LICE NSE, AN APPLICANT MUST BE AN INDIVIDUA L 9
437	437	WHO MEETS: 10
438	438
439	439	(1) THE REQUIREMENTS OF THIS SECTION; AND 11
440	440
441	441	(2) ANY OTHER QUALIFICAT ION AS REQUIRED BY R EGULATION OF 12
442	442	THE BOARD. 13
443	443
444	444	(B) AN APPLICANT MUST BE A LICENSED ASSOCIATE COMMUNITY 14
445	445	MANAGER. 15
446	446
447	447	(C) AN APPLICANT SHALL : 16
448	448
449	449	(1) COMPLET E A TRAINING PROGRAM APPROVED BY THE BOARD; AND 17
450	450
451	451	(2) PASS AN EXAMINATION APPROVED BY THE BOARD THAT 18
452	452	INCLUDES TESTING OF KNOWLEDGE OF STATE LAWS AND REGULA TIONS 19
453	453	CONCERNING COMMON OW NERSHIP COMMUNITIES . 20
454	454
455	455	(D) AN APPLICANT MUST : 21
456	456
457	457	(1) BE ACTIVELY ENGAGED IN PROVIDING MANAGEM ENT SERVICES 22
458	458	FOR AT LEAST 5 YEARS AS A LICENSED ASSOCIATE COMMUNITY MANAGER BEFORE 23
459	459	APPLYING FOR A LICEN SE; OR 24
460	460
461	461	(2) HOLD AN ACTIVE PROFE SSIONAL DESIGNATION AS APPROVED BY 25
462	462	THE BOARD. 26
463	463
464	464	22–303. 27
465	465
466	466	AN APPLICANT FOR A LI CENSE SHALL: 28
467	467	HOUSE BILL 26 11
468	468
469	469
470	470	(1) SUBMIT TO THE BOARD AN APPLICATION ON THE FORM THAT THE 1
471	471	BOARD PROVIDES ; AND 2
472	472
473	473	(2) PAY TO THE BOARD AN APPLICATION FEE SET BY THE BOARD. 3
474	474
475	475	22–304. 4
476	476
477	477	(A) IF AN APPLICANT QUALI FIES FOR A LICENSE U NDER THIS SUBTITLE , 5
478	478	THE BOARD SHALL SEND THE APPLICANT A NOTI CE THAT STATES THAT : 6
479	479
480	480	(1) THE APPLICANT HAS QU ALIFIED FOR A LICENS E; AND 7
481	481
482	482	(2) ON RECEIPT OF THE LI CENSE FEE SET BY THE BOARD, THE BOARD 8
483	483	WILL ISSUE A LICENSE TO THE APPLICANT . 9
484	484
485	485	(B) ON PAYMENT OF THE LIC ENSE FEE, THE BOARD SHALL ISSU E A LICENSE 10
486	486	TO EACH APPLICANT WH O MEETS THE REQUIREM ENTS OF THIS SUBTITL E. 11
487	487
488	488	22–305. 12
489	489
490	490	WHILE IN EFFECT , A LICENSE AUTHORIZES THE LICENSED COMMUNI TY 13
491	491	MANAGER TO PROVIDE MANAGEMEN T SERVICES TO A COMM ON OWNERSHIP 14
492	492	COMMUNITY . 15
493	493
494	494	22–306. 16
495	495
496	496	(A) THE TERM OF A LICENSE IS 2 YEARS. 17
497	497
498	498	(B) AT LEAST 2 MONTHS BEFORE A LICE NSE EXPIRES, THE BOARD SHALL 18
499	499	SEND TO THE LICENSED COMMUNITY MANAGER , AT THE LAST KNOWN AD DRESS OF 19
500	500	THE LICENSED COMMUNI TY MANAGER: 20
501	501
502	502	(1) A RENEWAL APPLICATIO N FORM; AND 21
503	503
504	504	(2) A NOTICE THAT STATES : 22
505	505
506	506	(I) THE DATE ON WHICH THE CURRENT LICENSE EXPI RES; 23
507	507
508	508	(II) THE DATE BY WHICH TH E BOARD MUST RECEIVE TH E 24
509	509	RENEWAL APPLICATION FOR THE RENEWAL TO B E ISSUED AND MAILED BEFORE THE 25
510	510	LICENSE EXPIRES ; AND 26
511	511
512	512	(III) THE AMOUNT OF THE RE NEWAL FEE. 27
513	513	12 HOUSE BILL 26
514	514
515	515
516	516	(C) (1) THE BOARD SHALL RENEW THE LICE NSE OF AND ISSUE A 1
517	517	RENEWAL CERTIFICATE TO EACH LICENSED COM MUNITY MANAGER WHO MEETS THE 2
518	518	REQUIREMENTS OF THIS SECTION. 3
519	519
520	520	(2) THE BOARD SHALL INCLUDE O N EACH RENEWAL CERTI FICATE 4
521	521	THE DATE ON WHICH TH E CURRENT LICENSE EX PIRES. 5
522	522
523	523	22–307. 6
524	524
525	525	(A) THE BOARD SHALL REINSTATE THE LICENSE OF AN IN DIVIDUAL WHO 7
526	526	HAS FAILED TO RENEW THE LICENSE IF THE I NDIVIDUAL: 8
527	527
528	528	(1) APPLIES TO THE BOARD FOR REINSTATEME NT WITHIN 2 YEARS 9
529	529	AFTER THE LICENSE EX PIRES; 10
530	530
531	531	(2) MEETS THE RENEWAL RE QUIREMENTS OF § 22–306 OF THIS 11
532	532	SUBTITLE; AND 12
533	533
534	534	(3) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE BOARD. 13
535	535
536	536	(B) (1) IF AN INDIVIDUAL HAS FAILED TO RENEW A LI CENSE AND THEN 14
537	537	APPLIES TO THE BOARD FOR REINSTATEME NT MORE THAN 2 YEARS AFTER THE 15
538	538	LICENSE HAS EXPIRED , THE BOARD: 16
539	539
540	540	(I) MAY REQUIRE THE INDIVIDU AL TO REAPPLY FOR A LICENSE 17
541	541	IN THE SAME MANNER A S AN APPLICANT APPLI ES FOR A LICENSE UND ER THIS 18
542	542	SUBTITLE; OR 19
543	543
544	544	(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , MAY 20
545	545	REINSTATE THE LICENS E. 21
546	546
547	547	(2) THE BOARD MAY REINSTATE A LICENSE UNDE R PARAGRAPH (1) 22
548	548	OF THIS SUBSECTION O NLY IF THE INDIVIDUA L: 23
549	549
550	550	(I) MEETS THE RENEWAL RE QUIREMENTS OF § 22–306 OF THIS 24
551	551	SUBTITLE; 25
552	552
553	553	(II) IF REQUIRED BY THE BOARD, STATES REASONS WHY 26
554	554	REINSTATEMENT SHOULD BE GRANTED; AND 27
555	555
556	556	(III) PAYS TO THE BOARD A REINSTATEMENT FEE SE T BY THE 28
557	557	BOARD. 29
558	558
559	559	22–308. 30 HOUSE BILL 26 13
560	560
561	561
562	562
563	563	(A) SUBJECT TO THE PROVIS IONS OF THIS SECTION , THE BOARD MAY ISSUE 1
564	564	BY RECIPROCITY A LIC ENSE TO AN INDIVIDUA L WHO HAS THE EQUIVA LENT LICENSE 2
565	565	IN ANOTHER STATE OR TERRITORY OF THE UNITED STATES. 3
566	566
567	567	(B) THE BOARD MAY ISSUE A LICENSE U NDER THIS SECTION ON LY IF THE 4
568	568	APPLICANT: 5
569	569
570	570	(1) PAYS TO THE BOARD A LICENSE FEE S ET BY THE BOARD; AND 6
571	571
572	572	(2) PROVIDES ADEQUATE EV IDENCE THAT AT THE T IME OF 7
573	573	APPLICATION FOR LICE NSURE UNDER THIS SEC TION THE APPLICANT H AS MET 8
574	574	REQUIREMENTS THAT ARE SUBSTANTIAL LY EQUIVALENT TO THE REQUIREMENTS 9
575	575	OF THE STATE. 10
576	576
577	577	(C) THE BOARD SHALL ESTABLISH STANDARDS FOR THE IS SUANCE OF A 11
578	578	LICENSE UNDER THIS S ECTION. 12
579	579
580	580	22–309. 13
581	581
582	582	(A) SUBJECT TO THE HEARIN G PROVISIONS OF § 22–311 OF THIS SUBTITLE, 14
583	583	THE BOARD MAY DEN Y A LICENSE TO ANY A PPLICANT, REPRIMAND ANY LICENS ED 15
584	584	COMMUNITY MANAGER , OR SUSPEND OR REVOKE A LICENSE IF THE APP LICANT OR 16
585	585	LICENSED COMMUNITY M ANAGER: 17
586	586
587	587	(1) FRAUDULENTLY OR DECE PTIVELY OBTAINS OR A TTEMPTS TO 18
588	588	OBTAIN A LICENSE FOR THE APPLICANT OR LIC ENSED COMMUNITY MANAGER OR 19
589	589	FOR ANOTHER ; 20
590	590
591	591	(2) FRAUDULENTLY OR DECE PTIVELY USES A LICEN SE; 21
592	592
593	593	(3) UNDER THE LAWS OF TH E UNITED STATES OR OF ANY STAT E, IS 22
594	594	CONVICTED OF : 23
595	595
596	596	(I) A FELONY; OR 24
597	597
598	598	(II) A MISDEMEANOR THAT I S DIRECTLY RELATED T O THE 25
599	599	FITNESS AND QUALIFICATIONS OF TH E APPLICANT OR LICEN SED COMMUNITY 26
600	600	MANAGER TO PROVIDE MANAGEMEN T SERVICES; 27
601	601
602	602	(4) ENGAGES IN CONDUCT T HAT DEMONSTRATES BAD FAITH, 28
603	603	INCOMPETENCY , OR UNTRUSTWORTHINESS OR THAT CONSTITUTES DISHONEST, 29
604	604	FRAUDULENT , OR IMPROPER DEALINGS ; 30
605	605	14 HOUSE BILL 26
606	606
607	607
608	608	(5) FAILS TO HANDLE THE FUNDS OF A COMMON OW NERSHIP 1
609	609	COMMUNITY IN ACCORDA NCE WITH THE PROVISI ONS OF THIS TITLE; 2
610	610
611	611	(6) FAILS TO ACCOUNT IN A TIMELY MANNER FOR ALL MONEY AND 3
612	612	PROPERTY RECEIVED ON BEHALF OF A COMMON O WNERSHIP COMMUNITY ; 4
613	613
614	614	(7) WILLFULLY FAILS TO DISCLOSE TO A COMMON OWNERSHIP 5
615	615	COMMUNITY MATERIAL F ACTS THAT RELATE TO THE PROPERTY OF THE COMMON 6
616	616	OWNERSHIP COMMUNITY OR CONCERN MANAGEMEN T SERVICES OF WHICH THE 7
617	617	LICENSED COMMUNITY M ANAGER HAS ACTUAL KNOWLEDGE ; 8
618	618
619	619	(8) IS GUILTY OF GROSS N EGLIGENCE, INCOMPETENCE THAT IS 9
620	620	PROVEN TO HAVE BEEN DETRIMENTAL TO A COM MON OWNERSHIP COMMUN ITY, OR 10
621	621	MISCONDUCT IN PROVID ING MANAGEMENT SERVI CES; 11
622	622
623	623	(9) HAS BEEN SANCTIONED IN ANOTHER STATE IN A MATTER 12
624	624	RELATING TO PROVIDIN G MANAGEMENT SERVICE S; 13
625	625
626	626	(10) VIOLATES ANY OTHER P ROVISION OF THIS TITLE; OR 14
627	627
628	628	(11) VIOLATES ANY REGULAT ION ADOPTED BY THE BOARD UNDER 15
629	629	THIS TITLE. 16
630	630
631	631	(B) (1) INSTEAD OF OR IN ADDI TION TO REPRIMANDING THE LICENSED 17
632	632	COMMUNITY MANAGER OR SUSPENDING OR REV OKING A LICENSE UNDE R THIS 18
633	633	SECTION, THE BOARD MAY IMPOSE A PENALTY NOT EXCEED ING $5,000 FOR EACH 19
634	634	VIOLATION. 20
635	635
636	636	(2) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 21
637	637	THIS SUBSECTION , THE BOARD SHALL CONSIDER : 22
638	638
639	639	(I) THE SERIOUSNESS OF T HE VIOLATION; 23
640	640
641	641	(II) THE HARM CAUSED BY T HE VIOLATION; 24
642	642
643	643	(III) THE GOOD FAITH OF TH E LICENSED COMMUNITY MANAGER; 25
644	644	AND 26
645	645
646	646	(IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E LICENSED 27
647	647	COMMUNITY MANAGER . 28
648	648
649	649	(3) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 29
650	650	SUBSECTION INTO THE GENERAL FUND OF THE STATE. 30
651	651	HOUSE BILL 26 15
652	652
653	653
654	654	(C) THE BOARD SHALL CONSIDER THE F OLLOWING FACTS IN TH E 1
655	655	GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A L ICENSE OR THE 2
656	656	REPRIMAND OF A LICEN SED COMMUNITY MANAGE R WHEN AN APPLICANT OR A 3
657	657	LICENSED COMMUNITY M ANAGER IS CONVICTED OF A FE LONY OR MISDEMEANOR 4
658	658	DESCRIBED IN SUBSECT ION (A)(3) OF THIS SECTION: 5
659	659
660	660	(1) THE NATURE OF THE CR IME; 6
661	661
662	662	(2) THE RELATIONSHIP OF THE CRIME TO THE ACT IVITIES 7
663	663	AUTHORIZED BY THE LI CENSE; 8
664	664
665	665	(3) WITH RESPECT TO A FE LONY, THE RELEVANCE OF THE 9
666	666	CONVICTION TO THE FI TNESS AND QUALIFICAT ION OF THE APPLICANT OR LICENSED 10
667	667	COMMUNITY MANAGER TO PROVIDE MANAGEMEN T SERVICES; 11
668	668
669	669	(4) THE LENGTH OF TIME S INCE THE CONVICTION ; AND 12
670	670
671	671	(5) THE BEHAVIOR AND ACT IVITIES OF THE APPLI CANT OR LICENSED 13
672	672	COMMUNITY MANAGER BEFORE AND AFTER THE CONVICTION. 14
673	673
674	674	22–310. 15
675	675
676	676	ON ITS OWN INITIATIVE OR ON A WRITTEN COMP LAINT MADE TO THE BOARD 16
677	677	BY ANY PERSON , THE BOARD MAY COMMENCE PR OCEEDINGS UNDER § 22–311 OF 17
678	678	THIS SUBTITLE. 18
679	679
680	680	22–311. 19
681	681
682	682	(A) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 20
683	683	GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES ANY FINAL ACTION UNDER § 21
684	684	22–309 OF THIS SUBTITLE , THE BOARD SHALL GIVE THE INDIVIDUAL AGAINST 22
685	685	WHOM THE ACTION IS C ONTEMPLATED AN OPPOR TUNITY FOR A HEARING BEFORE 23
686	686	THE BOARD. 24
687	687
688	688	(B) THE BOARD SHALL GIVE NOTI CE AND HOLD THE HEAR ING IN 25
689	689	ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 26
690	690
691	691	(C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH ANY 27
692	692	PROCEEDING UNDER THI S SECTION. 28
693	693
694	694	(D) (1) THE BOARD MAY ISSUE A SUB POENA FOR THE ATTEND ANCE OF A 29
695	695	WITNESS TO TESTIFY O R THE PRODUCTION OF EVIDENCE IN CONNECTION WI TH ANY 30
696	696	PROCEEDING UNDER THI S SECTION. 31
697	697	16 HOUSE BILL 26
698	698
699	699
700	700	(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER 1
701	701	THIS SUBSECTION , ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 2
702	702	COMPLIANCE WITH THE SUBPOENA. 3
703	703
704	704	(E) IF, AFTER DUE NOTICE , THE INDIVIDUAL AGAINST W HOM THE ACTION IS 4
705	705	CONTEMPLATED FAILS O R REFUSES TO APPEAR , THE BOARD MAY HEAR AND 5
706	706	DETERMINE THE MATTER . 6
707	707
708	708	22–312. 7
709	709
710	710	ANY PERSON AGGRIEVED BY A FINAL DECISION OF THE BOARD IN A 8
711	711	CONTESTED CASE , AS DEFINED IN § 10–202 OF THE STATE GOVERNMENT ARTICLE, 9
712	712	IS ENTITLED TO JUDIC IAL REVIEW AS PROVID ED IN §§ 10–222 AND 10–223 OF THE 10
713	713	STATE GOVERNMENT ARTICLE. 11
714	714
715	715	22–313. 12
716	716
717	717	THE BOARD MAY REINSTATE , IN ACCORDANCE WITH T HE PROCEDURES OF 13
718	718	THE BOARD: 14
719	719
720	720	(1) A LICENSE THAT HAS B EEN REVOKED ; OR 15
721	721
722	722	(2) BEFORE FULFI LLMENT OF THE CONDIT IONS OF THE SUSPENSI ON, 16
723	723	ANY LICENSE THAT HAS BEEN SUSPENDED . 17
724	724
725	725	SUBTITLE 4. LICENSED ASSOCIATE COMMUNITY MANAGERS. 18
726	726
727	727	22–401. 19
728	728
729	729	(A) AN INDIVIDUAL MUST BE I SSUED A LIMITED LICE NSE BY THE BOARD 20
730	730	BEFORE THE INDIVIDUA L MAY PROVIDE MANAGE MENT SERVICES AS A LICENS ED 21
731	731	ASSOCIATE COMMUNITY MANAGER FOR A COMMON OWNERSHIP COMMUNITY IN THE 22
732	732	STATE. 23
733	733
734	734	(B) A LICENSED ASSOCIATE C OMMUNITY MANAGER MAY PROVIDE 24
735	735	MANAGEMENT SERVICES FOR A COMMON OWNERSH IP COMMUNITY ONLY WH ILE 25
736	736	UNDER THE GENERAL SU PERVISION OF A LI CENSED COMMUNITY MAN AGER. 26
737	737
738	738	22–402. 27
739	739
740	740	(A) TO QUALIFY FOR A LIMI TED LICENSE, AN APPLICANT MUST BE AN 28
741	741	INDIVIDUAL WHO MEETS : 29
742	742
743	743	(1) THE REQUIREMENTS OF THIS SECTION; AND 30 HOUSE BILL 26 17
744	744
745	745
746	746
747	747	(2) ANY OTHER QUALIFICAT ION REQUIRED BY REGU LATION OF THE 1
748	748	BOARD. 2
749	749
750	750	(B) AN APPLICANT MUST BE AT LEAST 18 YEARS OLD. 3
751	751
752	752	(C) AN APPLICANT SHALL : 4
753	753
754	754	(1) COMPLETE A TRAINING PROGRAM APPROVED BY THE BOARD; AND 5
755	755
756	756	(2) PASS AN EXAMINATION APPROVED BY THE BOARD. 6
757	757
758	758	22–403. 7
759	759
760	760	AN APPLICANT FOR A LI MITED LICENSE SHALL: 8
761	761
762	762	(1) SUBMIT TO THE BOARD AN APPL ICATION ON THE FORM THAT THE 9
763	763	BOARD PROVIDES ; AND 10
764	764
765	765	(2) PAY TO THE BOARD AN APPLICATION FEE SET BY THE BOARD. 11
766	766
767	767	22–404. 12
768	768
769	769	(A) IF AN APPLICANT QUALI FIES FOR A LIMITED L ICENSE UNDER THIS 13
770	770	SUBTITLE, THE BOARD SHALL SEND THE APPLICANT A NOTICE T HAT STATES THAT : 14
771	771
772	772	(1) THE APPLICANT HAS QU ALIFIED FOR A LIMITE D LICENSE; AND 15
773	773
774	774	(2) ON RECEIPT OF THE LI MITED LICENSE FEE SE T BY THE BOARD, 16
775	775	THE BOARD WILL ISSUE A LIMITED LICE NSE IN THE NAME OF THE A PPLICANT. 17
776	776
777	777	(B) ON PAYMENT OF THE LIM ITED LICENSE FEE, THE BOARD SHALL ISSUE 18
778	778	A LIMITED LICENSE IN THE NAME OF EACH APPLICANT WH O MEETS THE 19
779	779	REQUIREMENTS OF THIS SUBTITLE. 20
780	780
781	781	(C) THE BOARD SHALL DELIVER A LIMITED LICENSE ISSU ED BY THE BOARD 21
782	782	TO THE LICENSED COMM UNITY MANAGER WHO WI LL BE SUPERVISING TH E 22
783	783	LICENSED ASSOCIATE COMMUNITY MANAGER , AT THE ADDRESS OF TH E LICENSED 23
784	784	COMMUNITY MANAGER TH AT IS INDICATED IN T HE APPLICATION FOR A LIMITED 24
785	785	LICENSE. 25
786	786
787	787	22–405. 26
788	788
789	789	WHILE IN EFFECT , A LIMITED LICENSE AUTHORIZES THE LICEN SED 27
790	790	ASSOCIATE COMMUNITY MANAGER TO PROVIDE MANAGEMEN T SERVICES FOR A 28 18 HOUSE BILL 26
791	791
792	792
793	793	COMMON OWNERSHIP COM MUNITY ONLY WHILE UN DER THE GENERAL SUPE RVISION 1
794	794	OF A LICENSED COMMUN ITY MANAGER. 2
795	795
796	796	22–406. 3
797	797
798	798	(A) THE TERM OF A LIMITED LICENSE IS 2 YEARS. 4
799	799
800	800	(B) AT LEAST 2 MONTHS BEFORE A LIMI TED LICENSE EXPIRES, THE BOARD 5
801	801	SHALL SEND TO THE LI CENSED ASSOCIATE COMMUN ITY MANAGER , AT THE LAST 6
802	802	KNOWN ADDRESS OF THE LICENSED ASSOCIATE C OMMUNITY MANAGER : 7
803	803
804	804	(1) A RENEWAL APPLICATIO N FORM; AND 8
805	805
806	806	(2) A NOTICE THAT STATES : 9
807	807
808	808	(I) THE DATE ON WHICH TH E CURRENT LIMITED LI CENSE 10
809	809	EXPIRES; 11
810	810
811	811	(II) THE DATE BY WHICH THE BOARD MUST RECEIVE TH E 12
812	812	RENEWAL APPLICATION FOR THE RENEWAL TO B E ISSUED AND MAILED BEFORE THE 13
813	813	LIMITED LICENSE EXPIRES; AND 14
814	814
815	815	(III) THE AMOUNT OF THE RE NEWAL FEE. 15
816	816
817	817	(C) (1) THE BOARD SHALL RENEW THE LIMITED LICENSE OF A ND ISSUE 16
818	818	A RENEWAL CE RTIFICATE TO EACH LI CENSED ASSOCIATE COM MUNITY MANAGER 17
819	819	WHO MEETS THE REQUIR EMENTS OF THIS SECTI ON. 18
820	820
821	821	(2) THE BOARD SHALL INCLUDE O N EACH RENEWAL CERTI FICATE 19
822	822	THE DATE ON WHICH TH E CURRENT LIMITED LI CENSE EXPIRES. 20
823	823
824	824	22–407. 21
825	825
826	826	(A) THE BOARD SHALL REINSTATE THE LIMITED LICENSE OF AN 22
827	827	INDIVIDUAL WHO HAS F AILED TO RENEW THE L IMITED LICENSE IF THE INDIVIDUAL: 23
828	828
829	829	(1) APPLIES TO THE BOARD FOR REINSTATEME NT WITHIN 2 YEARS 24
830	830	AFTER THE LIMITED LI CENSE EXPIRES; 25
831	831
832	832	(2) MEETS THE RENEWAL RE QUIREMENTS OF § 22–406 OF THIS 26
833	833	SUBTITLE; AND 27
834	834
835	835	(3) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE BOARD. 28
836	836	HOUSE BILL 26 19
837	837
838	838
839	839	(B) (1) IF AN INDIVIDUAL HAS FAILED TO RENEW A LI MITED LICENSE AND 1
840	840	THEN APPLIES TO THE BOARD FOR REINSTATEME NT MORE THAN 2 YEARS AFTER 2
841	841	THE LIMITED LICENSE HAS EXPIRED, THE BOARD: 3
842	842
843	843	(I) MAY REQUIRE THE INDI VIDUAL TO REAPPLY FO R A LIMITED 4
844	844	LICENSE IN THE SAME MANNER A S AN APPLICANT APPLI ES FOR AN ORIGINAL 5
845	845	LIMITED LICENSE UNDER THIS SUBTITLE ; OR 6
846	846
847	847	(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , MAY 7
848	848	REINSTATE THE LIMITE D LICENSE. 8
849	849
850	850	(2) THE BOARD MAY REINSTATE A LIMITED LICENSE UNDER 9
851	851	PARAGRAPH (1) OF THIS SUBSECTION O NLY IF THE INDIVIDUA L: 10
852	852
853	853	(I) MEETS THE RENEWAL RE QUIREMENTS OF § 22–406 OF THIS 11
854	854	SUBTITLE; 12
855	855
856	856	(II) IF REQUIRED BY THE BOARD, STATES REASONS WHY 13
857	857	REINSTATEMENT SHOULD BE GRANTED; AND 14
858	858
859	859	(III) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE 15
860	860	BOARD. 16
861	861
862	862	22–408. 17
863	863
864	864	(A) SUBJECT TO THE HEARIN G PROVISIONS OF § 22–410 OF THIS SUBTITLE, 18
865	865	THE BOARD MAY DENY A LIMI TED LICENSE TO ANY A PPLICANT, REPRIMAND ANY 19
866	866	LICENSED ASSOCIATE C OMMUNITY MANAGER , OR SUSPEND OR REVOKE A LIMITED 20
867	867	LICENSE IF THE APPLI CANT OR LICENSED ASS OCIATE COMMUNITY MAN AGER: 21
868	868
869	869	(1) FRAUDULENTLY OR DECE PTIVELY OBTAINS OR A TTEMPTS TO 22
870	870	OBTAIN A LIMITED LIC ENSE FOR THE APPLICA NT OR LICENSED ASSOC IATE 23
871	871	COMMUNITY MANAGER OR FOR ANOTHER; 24
872	872
873	873	(2) FRAUDULENTLY OR DECE PTIVELY USES A LIMIT ED LICENSE; 25
874	874
875	875	(3) UNDER THE LAWS OF TH E UNITED STATES OR OF ANY STAT E, IS 26
876	876	CONVICTED OF : 27
877	877
878	878	(I) A FELONY; OR 28
879	879
880	880	(II) A MISDEMEANOR THAT I S DIRECTLY RELATED T O THE 29
881	881	FITNESS AND QUALIFIC ATIONS OF THE APPLICANT OR LIC ENSED ASSOCIATE 30
882	882	COMMUNITY MANAGER TO PROVIDE MANAGEMENT S ERVICES; 31 20 HOUSE BILL 26
883	883
884	884
885	885
886	886	(4) ENGAGES IN CONDUCT T HAT DEMONSTRATES BAD FAITH, 1
887	887	INCOMPETENCY , OR UNTRUSTWORTHINESS OR THAT CONSTITUTES DISHONEST, 2
888	888	FRAUDULENT , OR IMPROPER DEALINGS ; 3
889	889
890	890	(5) FAILS TO HANDLE THE FUNDS OF A COMMON OWNERSHI P 4
891	891	COMMUNITY IN ACCORDA NCE WITH THE PROVISI ONS OF THIS TITLE; 5
892	892
893	893	(6) FAILS TO ACCOUNT IN A TIMELY MANNER FOR ALL MONEY AND 6
894	894	PROPERTY RECEIVED ON BEHALF OF A COMMON O WNERSHIP COMMUNITY ; 7
895	895
896	896	(7) WILLFULLY FAILS TO DISCLOSE TO A COMMON OWNERSHIP 8
897	897	COMMUNITY MATERIAL F ACTS THAT RELATE TO THE PROPERTY OF THE COMMON 9
898	898	OWNERSHIP COMMUNITY OR CONCERN MANAGEMEN T SERVICES OF WHICH THE 10
899	899	LICENSED ASSOCIATE C OMMUNITY MANAGER HAS ACTUAL KNOWLEDGE ; 11
900	900
901	901	(8) IS GUILTY OF GROSS N EGLIGENCE, INCOMPETENCE THAT IS 12
902	902	PROVEN TO HAVE BEEN DETRIMENTAL TO A COM MON OWNERSHIP COMMUN ITY, OR 13
903	903	MISCONDUCT IN PROVID ING MANAGEMENT SERVI CES; 14
904	904
905	905	(9) HAS BEEN SANCTIONED IN ANOTHER STATE IN A MATTER 15
906	906	RELATING TO PROVIDIN G MANAGEMENT SERVICE S; 16
907	907
908	908	(10) VIOLATES ANY OTHER PROVISION O F THIS TITLE; OR 17
909	909
910	910	(11) VIOLATES ANY REGULAT ION ADOPTED BY THE BOARD UNDER 18
911	911	THIS TITLE. 19
912	912
913	913	(B) (1) INSTEAD OF OR IN ADDI TION TO REPRIMANDING THE LICENSED 20
914	914	ASSOCIATE COMMUNITY MANAGER OR SUSPENDIN G OR REVOKING A LIMI TED 21
915	915	LICENSE UNDER THIS SECTION, THE BOARD MAY IMPOSE A PE NALTY NOT 22
916	916	EXCEEDING $5,000 FOR EACH VIOLATION . 23
917	917
918	918	(2) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 24
919	919	THIS SUBSECTION , THE BOARD SHALL CONSIDER : 25
920	920
921	921	(I) THE SERIOUSNESS OF T HE VIOLATION; 26
922	922
923	923	(II) THE HARM CAUSED BY THE VIOLATION; 27
924	924
925	925	(III) THE GOOD FAITH OF TH E LICENSED ASSOCIATE COMMUNITY 28
926	926	MANAGER; AND 29
927	927	HOUSE BILL 26 21
928	928
929	929
930	930	(IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E LICENSED 1
931	931	ASSOCIATE COMMUNITY MANAGER. 2
932	932
933	933	(3) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 3
934	934	SUBSECTION INTO THE GENERAL FUND OF THE STATE. 4
935	935
936	936	(C) THE BOARD SHALL CONSIDER THE FOLLOWING FACTS IN THE 5
937	937	GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A L IMITED 6
938	938	LICENSE OR THE REPRI MAND OF A LICENSED A SSOCIATE COMMUNITY M ANAGER 7
939	939	WHEN AN APPLICANT OR A LICENSED A SSOCIATE COMMUNITY M ANAGER IS 8
940	940	CONVICTED OF A FELON Y OR MISDEMEANOR DES CRIBED IN SUBSECTION (A)(3) OF 9
941	941	THIS SECTION: 10
942	942
943	943	(1) THE NATURE OF THE CR IME; 11
944	944
945	945	(2) THE RELATIONSHIP OF THE CRIME TO THE ACT IVITIES 12
946	946	AUTHORIZED BY THE LI MITED LICENSE; 13
947	947
948	948	(3) WITH RESPECT TO A FELONY , THE RELEVANCE OF THE 14
949	949	CONVICTION TO THE FI TNESS AND QUALIFICAT ION OF THE APPLICANT OR LICENSED 15
950	950	ASSOCIATE COMMUNITY MANAGER TO PROVIDE M ANAGEMENT SERVICES ; 16
951	951
952	952	(4) THE LENGTH OF TIME S INCE THE CONVICTION ; AND 17
953	953
954	954	(5) THE BEHAVIOR AND ACT IVITIES OF THE APPLICANT OR L ICENSED 18
955	955	ASSOCIATE COMMUNITY MANAGER BEFORE AND A FTER THE CONVICTION . 19
956	956
957	957	22–409. 20
958	958
959	959	ON ITS OWN INITIATIVE OR ON A WRITTEN COMP LAINT MADE TO THE BOARD 21
960	960	BY ANY PERSON , THE BOARD MAY COMMENCE PR OCEEDINGS UNDER § 22–410 OF 22
961	961	THIS SUBTITLE. 23
962	962
963	963	22–410. 24
964	964
965	965	(A) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 25
966	966	GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES ANY FINAL ACTION UNDER § 26
967	967	22–408 OF THIS SUBTITLE , THE BOARD SHALL GIVE THE INDIVIDUAL AGAINST 27
968	968	WHOM THE ACTION IS C ONTEMPLATED AN OPPOR TUNITY FOR A HEAR ING BEFORE 28
969	969	THE BOARD. 29
970	970
971	971	(B) THE BOARD SHALL GIVE NOTI CE AND HOLD THE HEAR ING IN 30
972	972	ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 31
973	973	22 HOUSE BILL 26
974	974
975	975
976	976	(C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH ANY 1
977	977	PROCEEDING UNDER THI S SECTION. 2
978	978
979	979	(D) (1) THE BOARD MAY ISSUE A SUB POENA FOR THE ATTEND ANCE OF A 3
980	980	WITNESS TO TESTIFY O R THE PRODUCTION OF EVIDENCE IN CONNECTI ON WITH ANY 4
981	981	PROCEEDING UNDER THI S SECTION. 5
982	982
983	983	(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER 6
984	984	THIS SUBSECTION , ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 7
985	985	COMPLIANCE WITH THE SUBPOENA. 8
986	986
987	987	(E) IF, AFTER DUE NOTICE , THE INDIVIDUAL AGAIN ST WHOM THE ACTION I S 9
988	988	CONTEMPLATED FAILS O R REFUSES TO APPEAR , THE BOARD MAY HEAR AND 10
989	989	DETERMINE THE MATTER . 11
990	990
991	991	22–411. 12
992	992
993	993	ANY PERSON AGGRIEVED BY A FINAL DECISION OF TH E BOARD IN A 13
994	994	CONTESTED CASE , AS DEFINED IN § 10–202 OF THE STATE GOVERNMENT ARTICLE, 14
995	995	IS ENTITLED TO JUDIC IAL REVIEW AS PROVID ED IN §§ 10–222 AND 10–223 OF THE 15
996	996	STATE GOVERNMENT ARTICLE. 16
997	997
998	998	22–412. 17
999	999
1000	1000	THE BOARD MAY REINSTATE , IN ACCORDANCE WITH THE PROCEDURES OF 18
1001	1001	THE BOARD: 19
1002	1002
1003	1003	(1) A LIMITED LICENSE TH AT HAS BEEN REVOKED ; OR 20
1004	1004
1005	1005	(2) BEFORE FULFILLMENT O F THE CONDITIONS OF THE SUSPENSION , 21
1006	1006	ANY LIMITED LICENSE THAT HAS BEEN SUSPEN DED. 22
1007	1007
1008	1008	SUBTITLE 5. REGISTRATION OF COMMON OWNERSHIP COMMUNITIES . 23
1009	1009
1010	1010	22–501. 24
1011	1011
1012	1012	(A) ON OR BEFORE JANUARY 1 EACH YEAR , A COMMON OWNERSHIP 25
1013	1013	COMMUNITY SHALL REGISTER WITH THE BOARD. 26
1014	1014
1015	1015	(B) IF A COMMON OWNERSHIP COMMUNITY CONTRACTS FOR MANAGEMENT 27
1016	1016	SERVICES, THE RESPONSIBLE MANA GER SHALL BE RESPONS IBLE FOR THE 28
1017	1017	REGISTRATION OF THE COMMON OWNERSHIP COMMUNIT Y. 29
1018	1018
1019	1019	22–502. 30 HOUSE BILL 26 23
1020	1020
1021	1021
1022	1022
1023	1023	EACH COMMON OWNERSHIP COMMUNITY SHALL PROV IDE THE BOARD THE 1
1024	1024	FOLLOWING INFORMATIO N: 2
1025	1025
1026	1026	(1) THE NAME AND ADDRESS OF THE COMMON OWNERS HIP 3
1027	1027	COMMUNITY ; 4
1028	1028
1029	1029	(2) THE COUNTY IN WHICH THE COMMON OWNERSHIP COMMUNITY IS 5
1030	1030	LOCATED; 6
1031	1031
1032	1032	(3) THE NAME AND CONTACT INFORMATION OF EACH OFFICER AND 7
1033	1033	MEMBER OF THE BOARD OF DIRECTORS OR GOVE RNING BODY OF THE CO MMON 8
1034	1034	OWNERSHIP COMMUNITY ; 9
1035	1035
1036	1036	(4) THE NAME AND ADDRESS OF THE LICENSED COMM UNITY 10
1037	1037	MANAGER, IF ANY, FOR THE COMMON OWNER SHIP COMMUNITY ; AND 11
1038	1038
1039	1039	(5) ANY OTHER INFORMATIO N REQUIRED BY THE BOARD. 12
1040	1040
1041	1041	SUBTITLE 6. MISCELLANEOUS PROVISIONS. 13
1042	1042
1043	1043	22–601. 14
1044	1044
1045	1045	(A) IN THIS SECTION , “CONTRACTING PARTY ” MEANS A LICENSED 15
1046	1046	COMMUNITY MANAGER OR A PERSON UNDER THE D IRECTION OF A LICENS ED 16
1047	1047	COMMUNITY MANAGER TH AT CONTRACTS TO PROVIDE MANAGEMENT S ERVICES FOR 17
1048	1048	A COMMON OWNERSHIP C OMMUNITY. 18
1049	1049
1050	1050	(B) A CONTRACTING PARTY SHALL FILE WITH THE SECRETARY PROOF AS 19
1051	1051	REQUIRED BY THE BOARD OF A FIDELITY B OND OR THEFT INSURAN CE, OR OTHER 20
1052	1052	COMPARABLE WRITTEN I NSURANCE AS REQUIRED BY THE BOARD, THAT COVERS: 21
1053	1053
1054	1054	(1) ANY PERSON THAT PROV IDES MANAGEMENT SERV ICES FOR A 22
1055	1055	COMMON OWNERSHIP COM MUNITY UNDER THE TER MS OF A CONTRACT ; AND 23
1056	1056
1057	1057	(2) ANY INDIVIDUAL WORKI NG UNDER THE DIRECTI ON OF A PERSON 24
1058	1058	DESCRIBED IN ITEM (1) OF THIS SUBSECTION . 25
1059	1059
1060	1060	(C) (1) A FIDELITY BOND OR INSURANCE FOR WHICH PROOF IS FILED 26
1061	1061	UNDER THIS SECTION S HALL PROVIDE COVERAG E IN AN AMOUNT EQUAL TO THE 27
1062	1062	LESSER OF: 28
1063	1063
1064	1064	(I) $2,000,000; OR 29
1065	1065	24 HOUSE BILL 26
1066	1066
1067	1067
1068	1068	(II) THE HIGHEST AGGREGAT E AMOUNT OF THE OPER ATING 1
1069	1069	AND RESERVE BALANCES OF ALL COMMON OWNERS HIP COMMUNITIES U NDER 2
1070	1070	CONTRACT WITH THE CO NTRACTING PARTY IN THE PRIOR 3 MONTHS. 3
1071	1071
1072	1072	(2) THE TOTAL LIABILITY O F THE INSURANCE TO A LL INSURED 4
1073	1073	PERSONS UNDER A FIDE LITY BOND OR INSURAN CE MAY NOT EXCEED TH E SUM OF 5
1074	1074	THE FIDELITY BOND OR INSURANCE. 6
1075	1075
1076	1076	(3) THE SECRETARY, OR THE SECRETARY’S DESIGNEE, SHALL BE 7
1077	1077	NAMED AS A CERTIFICA TE HOLDER FOR ANY FI DELITY BOND OR INSUR ANCE 8
1078	1078	REQUIRED UNDER THIS SECTION. 9
1079	1079
1080	1080	(D) IF THE FIDELITY BOND OR INSURANCE IS CANC ELED, FORFEITED, OR 10
1081	1081	TERMINATED , THE CONTRACTING PART Y IMMEDIATELY SHALL NO TIFY THE 11
1082	1082	SECRETARY. 12
1083	1083
1084	1084	(E) IF THE FIDELITY BOND OR INSURANCE IS CANC ELED, FORFEITED, OR 13
1085	1085	TERMINATED , OR THE CONTRACTING P ARTY FAILS TO NOTIFY THE SECRETARY OF 14
1086	1086	ANY CHANGE TO THE FI DELITY BOND OR INSUR ANCE, THE SECRETARY: 15
1087	1087
1088	1088	(1) SHALL SUSPEND ANY LI CENSE OF ANY INDIVIDUAL PROVIDING 16
1089	1089	MANAGEMENT SERVICES COVERED BY THE FIDEL ITY BOND OR INSURANC E; AND 17
1090	1090
1091	1091	(2) MAY NOT REINSTATE A LICENSE UNTIL PROOF OF COMPLIANCE 18
1092	1092	WITH THIS SECTION IS PROVIDED TO THE SECRETARY. 19
1093	1093
1094	1094	22–602. 20
1095	1095
1096	1096	(A) A LICENSED COMMUNITY M ANAGER SHALL DEPOSIT A LL MONEY 21
1097	1097	RECEIVED IN CONNECTI ON WITH THE PROVISIO N OF MANAGEMENT SERV ICES IN 22
1098	1098	ONE OR MORE OF THE F INANCIAL INSTITUTION ACCOUNTS OF A COMMON 23
1099	1099	OWNERSHIP COMMUNITY . 24
1100	1100
1101	1101	(B) A LICENSED COMMUNITY M ANAGER WHO PROVIDES MANAGEM ENT 25
1102	1102	SERVICES FOR MORE TH AN ONE COMMON OWN ERSHIP COMMUNITY SHA LL 26
1103	1103	MAINTAIN SEPARATE FI NANCIAL INSTITUTION ACCOUNTS FOR EACH CO MMON 27
1104	1104	OWNERSHIP COMMUNITY . 28
1105	1105
1106	1106	(C) THE FUNDS IN EACH FIN ANCIAL INSTITUTION A CCOUNT OF A COMMON 29
1107	1107	OWNERSHIP COMMUNITY MAY NOT BE COMMINGLE D WITH THE FUNDS OF THE 30
1108	1108	LICENSED COMMUNIT Y MANAGER OR ANOTHER COMMON OW NERSHIP COMMUNITY . 31
1109	1109	HOUSE BILL 26 25
1110	1110
1111	1111
1112	1112	(D) THE MAINTENANCE OF FI NANCIAL INSTITUTION ACCOUNTS BY A 1
1113	1113	LICENSED COMMUNITY M ANAGER SHALL BE CUSTODIAL A ND PROVIDED IN THE 2
1114	1114	NAME OF THE COMMON O WNERSHIP COMMUNITY . 3
1115	1115
1116	1116	(E) THE RECORDS OF EACH FINANCIAL INST ITUTION ACCOUNT OF A 4
1117	1117	COMMON OWNERSHIP COM MUNITY SHALL BE ACCESSIBLE FOR REVIE W DIRECTLY 5
1118	1118	FROM THE FINANCIAL I NSTITUTION TO THE GO VERNING BODY OF THE COMMON 6
1119	1119	OWNERSHIP COMMUNITY . 7
1120	1120
1121	1121	(F) A LICENSED COMMUNITY M ANAGER WHO WILLFULLY VIOLAT ES ANY 8
1122	1122	PROVISION OF THIS SECTION IS GUILTY OF A MISDEMEANOR AND ON CONVICTION IS 9
1123	1123	SUBJECT TO A FINE NO T EXCEEDING $25,000 OR IMPRISONMENT NOT EXCEEDING 5 10
1124	1124	YEARS OR BOTH . 11
1125	1125
1126	1126	22–603. 12
1127	1127
1128	1128	IF A COMMON OWNERSHIP COMMUNITY CONTRACTS WITH A PERSON OTHER 13
1129	1129	THAN A LICENSED COMM UNITY MANAGER TO PROVIDE MANAGEMENT S ERVICES, 14
1130	1130	THE CONTRACT SHALL R EQUIRE THAT ONLY A L ICENSED COMMUNITY MA NAGER 15
1131	1131	PROVIDE THE MANAGEME NT SERVICES FOR THE COMMON OWNERSHIP COMMUNITY . 16
1132	1132
1133	1133	SUBTITLE 7. PROHIBITED ACTS; PENALTIES. 17
1134	1134
1135	1135	22–701. 18
1136	1136
1137	1137	EXCEPT AS OTHERWISE P ROVIDED IN THIS TITLE, AN INDIVIDUAL MAY NO T 19
1138	1138	PROVIDE, ATTEMPT TO PROVIDE , OR OFFER TO PROVIDE MANAGEMENT SERVICES 20
1139	1139	FOR A COMMON OWNERSHIP C OMMUNITY IN THE STATE UNLESS ISSUED A LICENSE 21
1140	1140	OR A LIMITED LICENSE BY THE BOARD. 22
1141	1141
1142	1142	22–702. 23
1143	1143
1144	1144	UNLESS AUTHORIZED UND ER THIS TITLE TO PRO VIDE MANAGEMENT 24
1145	1145	SERVICES TO A COMMON OWNERSHIP COMMUNITY , A PERSON MAY NOT REP RESENT 25
1146	1146	TO THE PUBLIC BY USE OF A TITLE, INCLUDING “LICENSED COMMUNITY M ANAGER”, 26
1147	1147	“LICENSED ASSOCIATE C OMMUNITY MANAGER ”, OR “COMMON OWNERSHIP 27
1148	1148	COMMUNITY MANAGEMENT ”, BY USE OF AN ABBREVIATION, BY DESCRIPTION OF 28
1149	1149	SERVICES, METHODS, OR PROCEDURES , OR OTHERWISE THAT TH E PERSON IS 29
1150	1150	AUTHORIZED TO PROVID E MANAGEMENT SERVICE S FOR A COMMON OWNERSHIP 30
1151	1151	COMMUNITY IN THE STATE. 31
1152	1152
1153	1153	22–703. 32
1154	1154
1155	1155	AN INDIVIDUAL MAY NOT : 33 26 HOUSE BILL 26
1156	1156
1157	1157
1158	1158
1159	1159	(1) USE OR ATTEMPT TO US E THE LICENSE OR LIMITED LICEN SE OF 1
1160	1160	ANOTHER INDIVIDUAL ; OR 2
1161	1161
1162	1162	(2) IMPERSONATE ANOTHER INDIVIDUAL WHO HOLDS A LICENSE OR 3
1163	1163	A LIMITED LICENSE . 4
1164	1164
1165	1165	22–704. 5
1166	1166
1167	1167	AN INDIVIDUAL MAY NOT GIVE FALSE INFORMATI ON TO THE BOARD IN AN 6
1168	1168	ATTEMPT TO OBTAIN A LICENSE OR A LIMITED LICENSE . 7
1169	1169
1170	1170	22–705. 8
1171	1171
1172	1172	AN INDIVIDUAL WHOSE L ICENSE OR LIMITED LI CENSE HAS BEEN SUSPENDED 9
1173	1173	OR REVOKED UNDER THI S TITLE MAY NOT PROV IDE MANAGEMENT SERVI CES FOR A 10
1174	1174	COMMON OWNERSHIP COM MUNITY IN ANY MANNER AS: 11
1175	1175
1176	1176	(1) AN ASSOCIATE , AN AGENT, AN EMPLOYEE , OR ANY OTHER 12
1177	1177	SUBORDINATE OF A LIC ENSED COMMUNITY MANA GER; OR 13
1178	1178
1179	1179	(2) A PRINCIPAL, AN ASSOCIATE, AN AGENT, AN EMPLOYEE , OR ANY 14
1180	1180	OTHER SUBORDINATE OF A CORPORATION , PARTNERSHIP , OR LIMITED LIABILITY 15
1181	1181	COMPANY THAT PROVIDE S MANAGEMENT SERVICE S. 16
1182	1182
1183	1183	22–706. 17
1184	1184
1185	1185	(A) A PERSON THAT VI OLATES ANY PROVISION OF THIS TITLE IS GUILTY OF 18
1186	1186	A MISDEMEANOR AND ON CONVICTION IS SUBJEC T TO A FINE NOT EXCE EDING 19
1187	1187	$5,000 OR IMPRISONMENT NOT EXCEEDING 3 YEARS OR BOTH . 20
1188	1188
1189	1189	(B) (1) THE BOARD MAY IMPOSE ON A PERSON THAT VIOLATES ANY 21
1190	1190	PROVISION OF THIS TI TLE A PENALTY NOT EXCEEDIN G $5,000 FOR EACH VIOLATION . 22
1191	1191
1192	1192	(2) IN SETTING THE AMOUNT OF THE PENALTY , THE BOARD SHALL 23
1193	1193	CONSIDER: 24
1194	1194
1195	1195	(I) THE SERIOUSNESS OF T HE VIOLATION; 25
1196	1196
1197	1197	(II) THE HARM CAUSED BY T HE VIOLATION; 26
1198	1198
1199	1199	(III) THE GOOD FAITH OF TH E VIOLATOR; 27
1200	1200
1201	1201	(IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E VIOLATOR; 28
1202	1202	AND 29 HOUSE BILL 26 27
1203	1203
1204	1204
1205	1205
1206	1206	(V) ANY OTHER RELEVANT F ACTORS. 1
1207	1207
1208	1208	(C) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 2
1209	1209	SECTION INTO THE GENERAL FUND OF THE STATE. 3
1210	1210
1211	1211	SUBTITLE 8. SHORT TITLE; TERMINATION OF TITLE. 4
1212	1212
1213	1213	22–801. 5
1214	1214
1215	1215	THIS TITLE MAY BE CIT ED AS THE MARYLAND COMMON OWNERSHIP 6
1216	1216	COMMUNITY MANAGERS ACT. 7
1217	1217
1218	1218	22–802. 8
1219	1219
1220	1220	SUBJECT TO THE EVALUA TION AND REESTABLISH MENT PROVISIONS OF T HE 9
1221	1221	MARYLAND PROGRAM EVALUATION ACT, THIS TITLE AND ALL REGULATIONS 10
1222	1222	ADOPTED UNDER THIS T ITLE SHALL TERMINATE AND BE OF NO EFFECT AFTER JULY 11
1223	1223	1, 2030. 12
1224	1224
1225	1225	Article – Business Regulation 13
1226	1226
1227	1227	2–106.15. 14
1228	1228
1229	1229	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 15
1230	1230	INDICATED. 16
1231	1231
1232	1232	(2) “BOARD” MEANS THE STATE BOARD OF COMMON OWNERSHIP 17
1233	1233	COMMUNITY MANAGERS. 18
1234	1234
1235	1235	(3) “FUND” MEANS THE STATE BOARD OF COMMON OWNERSHIP 19
1236	1236	COMMUNITY MANAGERS FUND. 20
1237	1237
1238	1238	(B) THERE IS A STATE BOARD OF COMMON OWNERSHIP COMMUNITY 21
1239	1239	MANAGERS FUND IN THE DEPARTMENT . 22
1240	1240
1241	1241	(C) THE PURPOSE OF THE FUND IS TO COVER THE ACTUAL DOCUMENTED 23
1242	1242	DIRECT AND INDIRECT COSTS OF FULF ILLING THE STATUTORY AND REGULATORY 24
1243	1243	DUTIES OF THE BOARD. 25
1244	1244
1245	1245	(D) THE SECRETARY OR THE SECRETARY’S DESIGNEE SHALL ADM INISTER 26
1246	1246	THE FUND. 27
1247	1247
1248	1248	(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 28
1249	1249	SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 29 28 HOUSE BILL 26
1250	1250
1251	1251
1252	1252
1253	1253	(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 1
1254	1254	AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
1255	1255
1256	1256	(F) THE FUND CONSISTS OF : 3
1257	1257
1258	1258	(1) FEES COLLECTED BY TH E BOARD AND DISTRIBUTED TO THE 4
1259	1259	FUND UNDER § 22–207 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 5
1260	1260	ARTICLE; 6
1261	1261
1262	1262	(2) INTEREST EARNINGS OF THE FUND; 7
1263	1263
1264	1264	(3) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 8
1265	1265
1266	1266	(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 9
1267	1267	THE BENEFIT OF THE FUND. 10
1268	1268
1269	1269	(G) THE FUND MAY BE USED ONLY TO COVER THE ACTUAL DOCUMENTED 11
1270	1270	DIRECT AND INDIRECT COSTS OF FULFILLING THE STATUTORY AND RE GULATORY 12
1271	1271	DUTIES OF THE BOARD. 13
1272	1272
1273	1273	(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 14
1274	1274	IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 15
1275	1275
1276	1276	(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 16
1277	1277	THE FUND. 17
1278	1278
1279	1279	(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 18
1280	1280	WITH THE STATE BUDGET . 19
1281	1281
1282	1282	(J) THE LEGISLATIVE AUDITOR SHALL AUDIT T HE ACCOUNTS AND 20
1283	1283	TRANSACTIONS OF THE FUND, AS PROVIDED IN § 2–1220 OF THE STATE 21
1284	1284	GOVERNMENT ARTICLE. 22
1285	1285
1286	1286	2–106.16. 23
1287	1287
1288	1288	(A) IN THIS SECTION , “BOARD” MEANS THE STATE BOARD OF COMMON 24
1289	1289	OWNERSHIP COMMUNITY MANAGERS. 25
1290	1290
1291	1291	(B) IN CONSULTATION WITH THE BOARD, THE SECRETARY SHALL 26
1292	1292	CALCULATE ANNUALLY T HE DIRECT AND INDIRE CT COSTS ATTRIBUTABL E TO THE 27
1293	1293	BOARD. 28
1294	1294	HOUSE BILL 26 29
1295	1295
1296	1296
1297	1297	(C) THE BOARD SHALL ESTABLISH FEES BASED ON THE CA LCULATIONS 1
1298	1298	PROVIDED BY THE SECRETARY UNDER THIS SECTION. 2
1299	1299
1300	1300	(D) EACH FEE ESTABLISHED BY THE BOARD MAY NOT BE INCR EASED 3
1301	1301	ANNUALLY BY MORE THA N 12.5% OF THE EXISTING AND CORRESPONDING FEE OF 4
1302	1302	THE BOARD. 5
1303	1303
1304	1304	2–108. 6
1305	1305
1306	1306	(a) The following units are in the Department: 7
1307	1307
1308	1308	(34) THE STATE BOARD OF COMMON OWNERSHIP COMMUNITY 8
1309	1309	MANAGERS. 9
1310	1310
1311	1311	Article – Corporations and Associations 10
1312	1312
1313	1313	5–6B–12.1. 11
1314	1314
1315	1315	A COOPERATIVE HOUSING CORPORATION SHALL RE GISTER ANNUALLY WITH 12
1316	1316	THE STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS IN THE 13
1317	1317	MARYLAND DEPARTMENT OF LABOR AS REQUIRED UND ER TITLE 22, SUBTITLE 5 14
1318	1318	OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 15
1319	1319
1320	1320	Article – Real Property 16
1321	1321
1322	1322	11–130.1. 17
1323	1323
1324	1324	A CONDOMINIUM THAT IS USED FOR RESIDENTIAL PURPOSES SHALL 18
1325	1325	REGISTER ANNUALLY WITH THE STATE BOARD OF COMMON OWNERSHIP 19
1326	1326	COMMUNITY MANAGERS IN THE MARYLAND DEPARTMENT OF LABOR AS REQUIRED 20
1327	1327	UNDER TITLE 22, SUBTITLE 5 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 21
1328	1328	ARTICLE. 22
1329	1329
1330	1330	11B–115.2. 23
1331	1331
1332	1332	A HOMEOWNERS ASSOCIATI ON SHALL REGISTER ANNUALLY WITH THE STATE 24
1333	1333	BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS IN THE MARYLAND 25
1334	1334	DEPARTMENT OF LABOR AS REQUIRED UND ER TITLE 22, SUBTITLE 5 OF THE 26
1335	1335	BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 27
1336	1336
1337	1337	Article – State Finance and Procurement 28
1338	1338
1339	1339	6–226. 29
1340	1340	30 HOUSE BILL 26
1341	1341
1342	1342
1343	1343	(a) (2) (i) Notwithstanding any other provision of law, and unless 1
1344	1344	inconsistent with a federal law, grant agreement, or other federal requirement or with the 2
1345	1345	terms of a gift or settlement agreement, net interest on all State money allocated by the 3
1346	1346	State Treasurer under this section to special funds or accounts, and otherwise entitled to 4
1347	1347	receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 5
1348	1348	Fund of the State. 6
1349	1349
1350	1350	(ii) The provisions of subparagraph (i) of this paragraph do not apply 7
1351	1351	to the following funds: 8
1352	1352
1353	1353	144. the Health Equity Resource Community Reserve Fund; 9
1354	1354	[and] 10
1355	1355
1356	1356	145. the Access to Counsel in Evictions Special Fund; AND 11
1357	1357
1358	1358	146. THE STATE BOARD OF COMMON OWNERSHIP 12
1359	1359	COMMUNITY MANAGERS FUND. 13
1360	1360
1361	1361	Article – State Government 14
1362	1362
1363	1363	8–403. 15
1364	1364
1365	1365	This subtitle applies only to the following governmental activities and units: 16
1366	1366
1367	1367	(13) COMMON OWNERSHIP COMMUNITY MANAGERS, STATE BOARD 17
1368	1368	OF (§ 22–201 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE); 18
1369	1369
1370	1370	SECTION 3. AND BE IT FURTHER ENACTED, That the terms of the initial 19
1371	1371	members of the State Board of Common Ownership Community Managers shall expire as 20
1372	1372	follows: 21
1373	1373
1374	1374	(1) three members in 2025; 22
1375	1375
1376	1376	(2) three members in 2026; and 23
1377	1377
1378	1378	(3) three members in 2027. 24
1379	1379
1380	1380	SECTION 4. AND BE IT FURTHER ENACTED, That the State Board of Common 25
1381	1381	Ownership Community Managers, when adopting regulations concerning the training and 26
1382	1382	examination requirements for an applicant for a license or a limited license under this Act, 27
1383	1383	may take into consideration the following training and examination standards: 28
1384	1384
1385	1385	(1) for a limited license: 29
1386	1386
1387	1387	(i) courses that include topics such as: 30
1388	1388	HOUSE BILL 26 31
1389	1389
1390	1390
1391	1391	1. the responsibilities of managers and members of 1
1392	1392	community governing bodies; 2
1393	1393
1394	1394	2. management ethics; 3
1395	1395
1396	1396	3. community rules; 4
1397	1397
1398	1398	4. community meetings and other communications; 5
1399	1399
1400	1400	5. assessments collections; 6
1401	1401
1402	1402	6. financial management; 7
1403	1403
1404	1404	7. risk management; 8
1405	1405
1406	1406	8. facilities management; and 9
1407	1407
1408	1408	9. personnel management; and 10
1409	1409
1410	1410	(ii) examinations that may be in a classroom or online; and 11
1411	1411
1412	1412	(2) for a license: 12
1413	1413
1414	1414	(i) courses that include topics such as: 13
1415	1415
1416	1416	1. high–rise maintenance and management; 14
1417	1417
1418	1418	2. advanced insurance and risk management; 15
1419	1419
1420	1420	3. management of large–scale communities; 16
1421	1421
1422	1422	4. legal considerations in community management; and 17
1423	1423
1424	1424	5. contemporary issues in community management; and 18
1425	1425
1426	1426	(ii) examinations that include a case study of an existing common 19
1427	1427	ownership community. 20
1428	1428
1429	1429	SECTION 5. AND BE IT FURTHER ENACTED, That: 21
1430	1430
1431	1431	(a) Until the time that the State Board of Common Ownership Community 22
1432	1432	Managers adopts regulations concerning the training and examination requirements for an 23
1433	1433	applicant for a license or a limited license under this Act, passing an examination that 24
1434	1434	meets the requirements listed in subsection (b) of this section shall be deemed adequate for 25
1435	1435	satisfying the requirements of § 22–302(c) or § 22–402(c) of the Business Occupations and 26
1436	1436	Professions Article, as enacted by Section 2 of this Act. 27
1437	1437	32 HOUSE BILL 26
1438	1438
1439	1439
1440	1440	(b) The examination specified under subsection (a) of this section shall be: 1
1441	1441
1442	1442	(1) a nationally prepared and administered standardized examination for 2
1443	1443	the community association management profession; and 3
1444	1444
1445	1445	(2) developed according to the basic principles of professional testing 4
1446	1446	standards that utilize psychometric measurement. 5
1447	1447
1448	1448	SECTION 6. AND BE IT FURTHER ENACTED, That the State Board of Common 6
1449	1449	Ownership Community Managers shall grant a waiver of the training and examination 7
1450	1450	requirements for a license issued under § 22–304 or a limited license issued under § 8
1451	1451	22–404 of the Business Occupations and Professions Article, as enacted by Section 2 of this 9
1452	1452	Act, to any applicant who presents to the Board not later than October 1, 2024, satisfactory 10
1453	1453	evidence that the applicant provided management services in the State for the 2 years 11
1454	1454	immediately before the date of application. 12
1455	1455
1456	1456	SECTION 7. AND BE IT FURTHER ENACTED, That, on or before December 1, 13
1457	1457	2022, the Maryland Department of Labor shall report to the General Assembly, in 14
1458	1458	accordance with § 2–1257 of the State Government Article, on the imposition of a 15
1459	1459	registration fee on common ownership communities, including the necessity for and amount 16
1460	1460	of a registration fee on common ownership communities in relation to the license fees and 17
1461	1461	limited license fees required under this Act and the size of a common ownership community 18
1462	1462	to which a registration fee would apply. 19
1463	1463
1464	1464	SECTION 8. AND BE IT FURTHER ENACTED, That the Department of Budget 20
1465	1465	and Management, by budget amendment, may advance sufficient funds to the State Board 21
1466	1466	of Common Ownership Community Managers to allow the Board to commence operations 22
1467	1467	on October 1, 2022, so that the functions of issuing licenses and limited licenses and 23
1468	1468	registering common ownership communities can be in place before October 1, 2023. The 24
1469	1469	Board shall reimburse any funds that have been advanced after the license fees and limited 25
1470	1470	license fees have been received and deposited into the State Board of Common Ownership 26
1471	1471	Community Managers Fund. 27
1472	1472
1473	1473	SECTION 9. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
1474	1474	October 1, 2022. 29
1475	1475