EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0026*
HOUSE BILL 26
C2, N1 2lr0599
HB 367/21 – ENT (PRE–FILED)
By: Delegate Holmes
Requested: September 29, 2021
Introduced and read first time: January 12, 2022
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Real Property – Regulation of Common Ownership Community Managers 2
FOR the purpose of creating the State Board of Common Ownership Community Managers 3
in the Maryland Department of Labor to oversee the licensing of community 4
managers who provide management services for common ownership communities; 5
requiring a common ownership community to register with the Board under certain 6
circumstances; imposing certain duties on a contracting party concerning a fidelity 7
bond or theft insurance under certain circumstances; requiring a contract to provide 8
management services to include certain provisions; making certain provisions of this 9
Act subject to the Maryland Program Evaluation Act; establishing the State Board 10
of Common Ownership Community Managers Fund as a special, nonlapsing fund; 11
requiring that certain interest earnings be credited to the Fund; requiring the 12
Secretary of Labor, in consultation with the Board, to calculate certain costs 13
annually; authorizing the Department of Budget and Management to advance 14
certain funds to the Board and requiring the Board to reimburse certain funds under 15
certain circumstances; and generally relating to the regulation of common ownership 16
community managers. 17
BY renumbering 18
Article – State Government 19
Section 8–403(13) through (62), respectively 20
to be Section 8–403(14) through (63), respectively 21
Annotated Code of Maryland 22
(2021 Replacement Volume) 23
BY adding to 24
Article – Business Occupations and Professions 25
Section 22–101 through 22–802 to be under the new title “Title 22. Common 26
Ownership Community Managers” 27
Annotated Code of Maryland 28 2 HOUSE BILL 26
(2018 Replacement Volume and 2021 Supplement) 1
BY adding to 2
Article – Business Regulation 3
Section 2–106.15, 2–106.16, and 2–108(a)(34) 4
Annotated Code of Maryland 5
(2015 Replacement Volume and 2021 Supplement) 6
BY adding to 7
Article – Corporations and Associations 8
Section 5–6B–12.1 9
Annotated Code of Maryland 10
(2014 Replacement Volume and 2021 Supplement) 11
BY adding to 12
Article – Real Property 13
Section 11–130.1 and 11B–115.2 14
Annotated Code of Maryland 15
(2015 Replacement Volume and 2021 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – State Finance and Procurement 18
Section 6–226(a)(2)(i) 19
Annotated Code of Maryland 20
(2021 Replacement Volume) 21
BY repealing and reenacting, with amendments, 22
Article – State Finance and Procurement 23
Section 6–226(a)(2)(ii)144. and 145. 24
Annotated Code of Maryland 25
(2021 Replacement Volume) 26
BY adding to 27
Article – State Finance and Procurement 28
Section 6–226(a)(2)(ii)146. 29
Annotated Code of Maryland 30
(2021 Replacement Volume) 31
BY adding to 32
Article – State Government 33
Section 8–403(13) 34
Annotated Code of Maryland 35
(2021 Replacement Volume) 36
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 37
That Section(s) 8–403(13) through (62), respectively, of Article – State Government of the 38 HOUSE BILL 26 3
Annotated Code of Maryland be renumbered to be Section(s) 8–403(14) through (63), 1
respectively. 2
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 3
as follows: 4
Article – Business Occupations and Professions 5
TITLE 22. COMMON OWNERSHIP COMMUNITY MANAGERS. 6
SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 7
22–101. 8
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(B) “BOARD” MEANS THE STATE BOARD OF COMMON OWNERSHIP 11
COMMUNITY MANAGERS. 12
(C) (1) “COMMON OWNERSHIP COMM UNITY” MEANS: 13
(I) A CONDOMINIUM AS DEF INED IN § 11–101 OF THE REAL 14
PROPERTY ARTICLE THAT IS USED FOR RESIDENTIAL PURPOSES ; 15
(II) A COOPERATIVE HOUSIN G CORPORATION AS DEF INED IN § 16
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND 17
(III) A HOMEOWNERS ASSOCIA TION AS DEFINED IN § 11B–101 OF 18
THE REAL PROPERTY ARTICLE. 19
(2) “COMMON OWNERSHIP COMM UNITY” DOES NOT INCLUDE A 20
TIME–SHARE PROJECT AS DEF INED IN § 11A–101 OF THE REAL PROPERTY 21
ARTICLE. 22
(D) “LICENSE” MEANS, UNLESS THE CONTEXT R EQUIRES OTHERWISE , A 23
LICENSE ISSUED BY TH E BOARD UNDER SUBTITLE 3 OF THIS TITLE THAT ALLOWS 24
AN INDIVIDUAL TO PRO VIDE MANAGEMENT SERV ICES FOR A COMMON OW NERSHIP 25
COMMUNITY . 26
(E) “LICENSED ASSOCIATE CO MMUNITY MANAGER ” MEANS, UNLESS THE 27
CONTEXT REQUIRES OTH ERWISE, AN INDIVIDUAL WHO IS ISSUED A LIMITED 28
LICENSE BY THE BOARD UNDER SUBTITLE 4 OF THIS T ITLE TO PROVIDE 29
MANAGEMENT SERVICES FOR A COMMON OWNERSH IP COMMUNITY UNDER T HE 30
SUPERVISION OF A LIC ENSED COMMUNITY MANA GER. 31 4 HOUSE BILL 26
(F) “LICENSED COMMUNITY MA NAGER” MEANS, UNLESS THE CONTEXT 1
REQUIRES OTHERWISE , AN INDIVIDUAL WHO IS ISSUED A LICENSE BY THE BOARD 2
UNDER SUBTITLE 3 OF THIS TITLE TO PROVIDE MANAGEMEN T SERVICES FOR A 3
COMMON OWNERSHIP COM MUNITY. 4
(G) “LIMITED LICENSE ” MEANS, UNLESS THE CONTEXT R EQUIRES 5
OTHERWISE, A LIMITED LICENSE IS SUED BY THE BOARD UNDER SUBTITLE 4 OF THIS 6
TITLE THAT ALLOWS TH E INDIVIDUAL TO PROVIDE MAN AGEMENT SERVICES FOR A 7
COMMON OWNERSHIP COM MUNITY UNDER THE SUP ERVISION OF A LICENS ED 8
COMMUNITY MANAGER . 9
(H) “PROVIDE MANAGEMENT SE RVICES” MEANS: 10
(1) TO ACT WITH THE AUTH ORITY OF THE COMMON OWNERSHIP 11
COMMUNITY IN ITS BUS INESS, LEGAL, FINANCIAL, OR OTHER TRANSACTION S WITH 12
MEMBERS AND NONMEMBE RS OF THE COMMON OWN ERSHIP COMMUNITY ; 13
(2) TO EXECUTE THE RESOL UTIONS AND DECISIONS OF A COMMON 14
OWNERSHIP COMMUNITY ; 15
(3) TO ENFORCE THE RIGHT S OF THE COMMON OWNE RSHIP 16
COMMUNITY SECURED BY STATUTE, CONTRACT, COVENANT, RULE, OR BYLAW WITH 17
THE AUTHORITY OF THE COMMON OWNERSHIP COM MUNITY; 18
(4) TO NEGOTIATE CONTRAC TS OR OTHERWISE COOR DINATE OR 19
ARRANGE FOR SERVICES OR THE PURCHASE OF P ROPERTY AND GOODS FO R OR ON 20
BEHALF OF A COMMON O WNERSHIP C OMMUNITY; 21
(5) TO COLLECT, DISBURSE, OR OTHERWISE EXERCIS E DOMINION OR 22
CONTROL OVER MONEY O R OTHER PROPERTY BEL ONGING TO A COMMON 23
OWNERSHIP COMMUNITY ; 24
(6) TO PREPARE BUDGETS , FINANCIAL STATEMENTS , OR OTHER 25
FINANCIAL REPORTS FO R A COMMON OWNERSHIP COMMUNITY ; 26
(7) TO ARRANGE , CONDUCT, OR COORDINATE MEETIN GS OF A 27
COMMON OWNERSHIP COM MUNITY OR THE GOVERN ING BODY OF A COMMON 28
OWNERSHIP COMMUNITY ; OR 29
(8) TO OFFER OR SOLICIT TO PERFORM ANY OF TH E ACTS OR 30
SERVICES LISTED IN I TEMS (1) THROUGH (7) OF THIS SUBSECTION ON BEHA LF OF A 31
COMMON OWNERSHIP COM MUNITY. 32
HOUSE BILL 26 5
(I) “RESPONSIBLE MANAGER ” MEANS A LICENSED COM MUNITY MANAGER 1
WHO HAS PRIMARY RESP ONSIBILITY FOR PROVI DING MANAGEMENT SERV ICES TO A 2
COMMON OWNERSHIP COM MUNITY UNDER THE TER MS OF A CONTRACT ENT ERED 3
INTO BY THE COMMON OWNERSHIP COMMUNITY . 4
22–102. 5
THE PROVISIONS OF THI S TITLE THAT REQUIRE AN INDIVIDUAL TO BE ISSUED 6
A LICENSE OR A LIMIT ED LICENSE DO NOT PROHIBIT: 7
(1) AN INDIVIDUAL WHO IS A REGULAR, SALARIED EMPLOYEE OF A 8
LICENSED COMMUNITY M ANAGER OR A SINGLE COMMON OW NERSHIP COMMUNITY 9
FROM PERFORMING ADMI NISTRATIVE, INTERNAL, BOOKKEEPING , OR MINISTERIAL 10
FUNCTIONS IN SUPPORT OF THE LICENSED COMM UNITY MANAGER OR THE SINGLE 11
COMMON OWNERSHIP COM MUNITY; 12
(2) AN INDIVIDUAL WHO IS ADMINISTRATIVE SUPPO RT STAFF OR AN 13
ASSISTANT OF A LICEN SED COMMUNITY MANAGE R FROM INCIDENTALLY PROVIDING 14
MANAGEMENT SERVICES IF THE INDIVIDUAL IS SUPERVISED BY A LICE NSED 15
COMMUNITY MANAGER ; 16
(3) A RESIDENT OF A COMM ON OWNERSHIP COMMUNI TY WHO ACTS 17
WITHOUT COMPENSATION FROM PROV IDING MANAGEMENT SER VICES FOR THAT 18
COMMON OWNERSHIP COM MUNITY; 19
(4) A MEMBER OF THE GOVE RNING BODY OF A COMM ON OWNERSHIP 20
COMMUNITY WHO ACTS W ITHOUT COMPENSATION FROM PROVIDING MANAG EMENT 21
SERVICES FOR THAT CO MMON OWNERSHIP COMMU NITY; 22
(5) AN ATTORNEY AT LAW FROM REPRESENTIN G A COMMON 23
OWNERSHIP COMMUNITY , A LICENSED COMMUNITY MANAGER, OR A LICENSED 24
ASSOCIATE COMMUNITY MANAGER IN ANY BUSINESS THAT CONSTITUTES THE 25
PRACTICE OF LAW ; 26
(6) AN INDIVIDUAL LICENS ED UNDER THIS ARTICL E AS A LICENSED 27
CERTIFIED PUBL IC ACCOUNTANT , A LICENSED REAL ESTA TE BROKER , OR A 28
LICENSED ASSOCIATE R EAL ESTATE BROKER FROM PROVIDING TO A COMMON 29
OWNERSHIP COMMUNITY THE SERVICES FOR WHI CH THE INDIVIDUAL IS LICENSED; 30
(7) AN INDIVIDUAL WHO AC TS AS A RECEIVER OR TRUSTEE IN 31
BANKRUPTCY IN THE PERFORMANCE O F DUTIES OR AN INDIV IDUAL WHO ACTS 32
UNDER A COURT ORDER FROM PROVIDING MANAG EMENT SERVICES FOR A COMMON 33
OWNERSHIP COMMUNITY ; OR 34
6 HOUSE BILL 26
(8) AN INDIVIDUAL WHO IS AN EMPLOYEE OF A COM MON OWNERSHIP 1
COMMUNITY FROM PROVI DING MANAGEMENT SERV ICES ONLY TO THAT COMMON 2
OWNERSHIP COMMUNITY OR TO AN AFFILIATED COMMON OWNERSHIP COM MUNITY. 3
SUBTITLE 2. STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS. 4
22–201. 5
THERE IS A STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS 6
IN THE DEPARTMENT . 7
22–202. 8
(A) (1) THE BOARD CONSISTS OF NIN E MEMBERS. 9
(2) OF THE NINE MEMBERS O F THE BOARD: 10
(I) FIVE SHALL BE LICENSED CO MMON OWNERSHIP 11
COMMUNITY MANAGERS ; 12
(II) ONE SHALL BE A LAWYE R, AS DEFINED IN § 10–101 OF THIS 13
ARTICLE, WHOSE PRIMARY PRACTI CE INCLUDES THE REPRESENTATION O F 14
COMMON OWNERSHIP COM MUNITIES; AND 15
(III) THREE SHALL BE RESIDENT OW NERS IN A COMMON 16
OWNERSHIP COMMUNITY . 17
(3) THE GOVERNOR SHALL APPOIN T THE MEMBERS WITH T HE 18
ADVICE OF THE SECRETARY AND THE ADV ICE AND CONSENT OF T HE SENATE. 19
(B) EACH MEMBER OF THE BOARD MUST BE A RESID ENT OF THE STATE. 20
(C) BEFORE TAKING OFFICE , EACH APPOINTEE TO TH E BOARD SHALL TAKE 21
THE OATH REQUIRED BY ARTICLE I, § 9 OF THE MARYLAND CONSTITUTION. 22
(D) (1) THE TERM OF A MEMBER IS 4 YEARS AND BEGINS JULY 1. 23
(2) THE TERMS OF THE MEMB ERS ARE STAGGERED AS REQUIRED BY 24
THE TERMS PROVIDED F OR MEMBERS OF THE BOARD ON OCTOBER 1, 2022. 25
(3) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 26
A SUCCESSOR IS APPOI NTED AND QUALIFIES . 27
HOUSE BILL 26 7
(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 1
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 2
QUALIFIES. 3
(5) A MEMBER MAY NOT SERVE MORE THAN TWO CONSEC UTIVE 4
TERMS. 5
(E) FOR FISCAL YEAR 2023, THE DEPARTMENT SHALL ALLO CATE NOT 6
MORE THAN $100,000 FOR THE ESTABLISHMEN T OF THE BOARD, INCLUDING 7
PERSONNEL EXPENSES . 8
22–203. 9
FROM AMONG THE MEMBER S OF THE BOARD, THE GOVERNOR SHALL 10
APPOINT A CHAIR AND A VICE CHAIR. 11
22–204. 12
(A) A MAJORITY OF THE MEMB ERS THEN SERVING ON THE BOARD IS A 13
QUORUM. 14
(B) THE BOARD SHALL DETERMINE THE TIMES AND PLACES OF ITS 15
MEETINGS. 16
(C) A MEMBER OF THE BOARD: 17
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 18
BUT 19
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 20
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 21
(D) THE BOARD MAY EMPLOY STAF F IN ACCORDANCE WITH THE STATE 22
BUDGET. 23
22–205. 24
(A) IN ADDITION TO ANY PO WERS SET FORTH ELSEW HERE, THE BOARD 25
MAY: 26
(1) ADOPT BYLAWS AS NECE SSARY TO DO THE BUSI NESS OF THE 27
BOARD; AND 28
(2) ADOPT ANY REGULATION S TO CARRY OUT THIS TITLE. 29
8 HOUSE BILL 26
(B) IN ADDITION TO ANY DU TIES SET FORTH ELSEW HERE, THE BOARD 1
SHALL: 2
(1) ADOPT RULES OF PROFE SSIONAL CONDUCT AS A PPROPRIATE FOR 3
INDIVIDUALS ISSUED A LICENSE OR A LIMITED LICENSE UNDER THIS T ITLE; 4
(2) ESTABLISH CRITERIA AND A PROCESS FOR CERTIF ICATION OF A 5
VARIETY OF EDUCATION AL OFFERINGS AND TRA INING PROGRAMS FOR ISSUING 6
LICENSES OR LIMITED LICENSES UNDER THIS TITLE; 7
(3) ESTABLISH CONTINUING EDUCATION REQUIREMEN TS FOR 8
INDIVIDUALS WHO HAVE BEEN ISSUED A LICENSE OR A LIMIT ED LICENSE UNDER 9
THIS TITLE; AND 10
(4) KEEP A RECORD OF ITS PROCEEDINGS . 11
(C) THE BOARD MAY ESTABLISH B Y REGULATION : 12
(1) THE PROCESS OF RESOL VING DISCIPLINARY MA TTERS PENDING 13
BEFORE THE BOARD THROUGH NONJUDI CIAL DISPUTE RESOLUT ION PROCESSES; 14
(2) EDUCATION AND TRAINI NG OPPORTUNITIES FOR GOVERNING 15
BODIES OF COMMON OWN ERSHIP COMMUNITIES ; AND 16
(3) ANY OTHER PROCEDURES OR STANDARDS CONSIST ENT WITH THE 17
MISSION OF THE BOARD. 18
22–206. 19
(A) THE BOARD SHALL MAINTAIN A PUBLIC LIST OF THE NAMES AND 20
MAILING ADDRESSES OF ALL INDIVIDUALS ISSU ED A LICENSE OR A LI MITED 21
LICENSE UNDER THIS T ITLE. 22
(B) EACH INDIVIDUAL ISSUE D A LICENSE OR A LIM ITED LICENSE UNDER 23
THIS TITLE SHALL: 24
(1) DESIGNATE A MAILING ADDRESS AT THE TIME OF ISSUANCE OF 25
THE ORIGINAL LICENSE OR LI MITED LICENSE AND ON RENEWAL OF THE LICEN SE OR 26
LIMITED LICENSE ; AND 27
(2) NOTIFY THE BOARD OF A CHANGE OF ADDRESS WITHIN 30 DAYS 28
AFTER THE CHANGE . 29
22–207. 30 HOUSE BILL 26 9
(A) (1) THE BOARD MAY SET BY REGU LATION REASONABLE FE ES FOR ITS 1
SERVICES. 2
(2) THE FEES CHARGED SHAL L BE: 3
(I) SET SO AS TO PRODUCE FUNDS TO APPROXIMATE THE COST 4
OF MAINTAINING THE BOARD; 5
(II) BASED ON THE CALCULA TIONS PERFORMED BY T HE 6
SECRETARY UNDER § 2–106.16 OF THE BUSINESS REGULATION ARTICLE; AND 7
(III) CONSISTENT WITH OTHER FEES FOR COMPARABLE 8
LICENSES ISSUED BY O THER BOARDS AND COMM ISSIONS IN THE STATE. 9
(B) THE BOARD SHALL PUBLISH T HE FEE SCHEDULE SET BY THE BOARD. 10
(C) (1) THE BOARD SHALL PAY ALL F EES COLLECTED UNDER THIS TITLE 11
TO THE COMPTROLLER . 12
(2) THE COMPTROLLER SHALL DIS TRIBUTE THE FEES TO THE STATE 13
BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS FUND ESTABLISHED 14
UNDER § 2–106.15 OF THE BUSINESS REGULATION ARTICLE. 15
22–208. 16
THE BOARD EXERCISES ITS P OWERS, DUTIES, AND FUNCTIONS SUBJEC T TO 17
THE AUTHORITY OF THE SECRETARY. 18
22–209. 19
(A) IN ADDITION TO ANY OT HER REMEDY AUTHORIZE D UNDER THIS TITLE , 20
THE BOARD, WITH THE APPROVAL OF THE ATTORNEY GENERAL, MAY SUE IN THE 21
NAME OF THE STATE TO ENJOIN ANY ACT TH AT IS PROHIBITED UND ER SUBTITLE 7 22
OF THIS TITLE. 23
(B) THE BOARD MAY TAKE APPROP RIATE ACTIONS TO : 24
(1) ASSIST A COMMON OWNE RSHIP COMMUNITY IN E XERCISING ANY 25
RIGHTS OF THE COMMON OWNERSHIP COMMUNITY UNDER THIS TITLE ; OR 26
(2) ENTER INTO COOPERATI VE AND INFORMATION –SHARING 27
AGREEMENTS WITH ANY UNIT OF LAW ENFORCEMENT AS ALLOW ED BY LAW. 28
SUBTITLE 3. LICENSED COMMUNITY MANAGERS. 29 10 HOUSE BILL 26
22–301. 1
(A) AN INDIVIDUAL MUST BE I SSUED A LICENSE BY THE BOARD BEFORE 2
THE INDIVIDUAL MAY P ROVIDE MANAGEMENT SE RVICES AS A LICENSED 3
COMMUNITY MANAGER FO R A COMMON OWNERSHIP COMMUNI TY IN THE STATE. 4
(B) A LICENSED COMMUNITY M ANAGER MAY PROVIDE M ANAGEMENT 5
SERVICES FOR A COMMO N OWNERSHIP COMMUNIT Y ONLY UNDER THE TER MS OF A 6
CONTRACT ENTERED INT O BY THE COMMON OWNERSHIP COMMUNITY . 7
22–302. 8
(A) TO QUALIFY FOR A LICE NSE, AN APPLICANT MUST BE AN INDIVIDUA L 9
WHO MEETS: 10
(1) THE REQUIREMENTS OF THIS SECTION; AND 11
(2) ANY OTHER QUALIFICAT ION AS REQUIRED BY R EGULATION OF 12
THE BOARD. 13
(B) AN APPLICANT MUST BE A LICENSED ASSOCIATE COMMUNITY 14
MANAGER. 15
(C) AN APPLICANT SHALL : 16
(1) COMPLET E A TRAINING PROGRAM APPROVED BY THE BOARD; AND 17
(2) PASS AN EXAMINATION APPROVED BY THE BOARD THAT 18
INCLUDES TESTING OF KNOWLEDGE OF STATE LAWS AND REGULA TIONS 19
CONCERNING COMMON OW NERSHIP COMMUNITIES . 20
(D) AN APPLICANT MUST : 21
(1) BE ACTIVELY ENGAGED IN PROVIDING MANAGEM ENT SERVICES 22
FOR AT LEAST 5 YEARS AS A LICENSED ASSOCIATE COMMUNITY MANAGER BEFORE 23
APPLYING FOR A LICEN SE; OR 24
(2) HOLD AN ACTIVE PROFE SSIONAL DESIGNATION AS APPROVED BY 25
THE BOARD. 26
22–303. 27
AN APPLICANT FOR A LI CENSE SHALL: 28
HOUSE BILL 26 11
(1) SUBMIT TO THE BOARD AN APPLICATION ON THE FORM THAT THE 1
BOARD PROVIDES ; AND 2
(2) PAY TO THE BOARD AN APPLICATION FEE SET BY THE BOARD. 3
22–304. 4
(A) IF AN APPLICANT QUALI FIES FOR A LICENSE U NDER THIS SUBTITLE , 5
THE BOARD SHALL SEND THE APPLICANT A NOTI CE THAT STATES THAT : 6
(1) THE APPLICANT HAS QU ALIFIED FOR A LICENS E; AND 7
(2) ON RECEIPT OF THE LI CENSE FEE SET BY THE BOARD, THE BOARD 8
WILL ISSUE A LICENSE TO THE APPLICANT . 9
(B) ON PAYMENT OF THE LIC ENSE FEE, THE BOARD SHALL ISSU E A LICENSE 10
TO EACH APPLICANT WH O MEETS THE REQUIREM ENTS OF THIS SUBTITL E. 11
22–305. 12
WHILE IN EFFECT , A LICENSE AUTHORIZES THE LICENSED COMMUNI TY 13
MANAGER TO PROVIDE MANAGEMEN T SERVICES TO A COMM ON OWNERSHIP 14
COMMUNITY . 15
22–306. 16
(A) THE TERM OF A LICENSE IS 2 YEARS. 17
(B) AT LEAST 2 MONTHS BEFORE A LICE NSE EXPIRES, THE BOARD SHALL 18
SEND TO THE LICENSED COMMUNITY MANAGER , AT THE LAST KNOWN AD DRESS OF 19
THE LICENSED COMMUNI TY MANAGER: 20
(1) A RENEWAL APPLICATIO N FORM; AND 21
(2) A NOTICE THAT STATES : 22
(I) THE DATE ON WHICH THE CURRENT LICENSE EXPI RES; 23
(II) THE DATE BY WHICH TH E BOARD MUST RECEIVE TH E 24
RENEWAL APPLICATION FOR THE RENEWAL TO B E ISSUED AND MAILED BEFORE THE 25
LICENSE EXPIRES ; AND 26
(III) THE AMOUNT OF THE RE NEWAL FEE. 27
12 HOUSE BILL 26
(C) (1) THE BOARD SHALL RENEW THE LICE NSE OF AND ISSUE A 1
RENEWAL CERTIFICATE TO EACH LICENSED COM MUNITY MANAGER WHO MEETS THE 2
REQUIREMENTS OF THIS SECTION. 3
(2) THE BOARD SHALL INCLUDE O N EACH RENEWAL CERTI FICATE 4
THE DATE ON WHICH TH E CURRENT LICENSE EX PIRES. 5
22–307. 6
(A) THE BOARD SHALL REINSTATE THE LICENSE OF AN IN DIVIDUAL WHO 7
HAS FAILED TO RENEW THE LICENSE IF THE I NDIVIDUAL: 8
(1) APPLIES TO THE BOARD FOR REINSTATEME NT WITHIN 2 YEARS 9
AFTER THE LICENSE EX PIRES; 10
(2) MEETS THE RENEWAL RE QUIREMENTS OF § 22–306 OF THIS 11
SUBTITLE; AND 12
(3) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE BOARD. 13
(B) (1) IF AN INDIVIDUAL HAS FAILED TO RENEW A LI CENSE AND THEN 14
APPLIES TO THE BOARD FOR REINSTATEME NT MORE THAN 2 YEARS AFTER THE 15
LICENSE HAS EXPIRED , THE BOARD: 16
(I) MAY REQUIRE THE INDIVIDU AL TO REAPPLY FOR A LICENSE 17
IN THE SAME MANNER A S AN APPLICANT APPLI ES FOR A LICENSE UND ER THIS 18
SUBTITLE; OR 19
(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , MAY 20
REINSTATE THE LICENS E. 21
(2) THE BOARD MAY REINSTATE A LICENSE UNDE R PARAGRAPH (1) 22
OF THIS SUBSECTION O NLY IF THE INDIVIDUA L: 23
(I) MEETS THE RENEWAL RE QUIREMENTS OF § 22–306 OF THIS 24
SUBTITLE; 25
(II) IF REQUIRED BY THE BOARD, STATES REASONS WHY 26
REINSTATEMENT SHOULD BE GRANTED; AND 27
(III) PAYS TO THE BOARD A REINSTATEMENT FEE SE T BY THE 28
BOARD. 29
22–308. 30 HOUSE BILL 26 13
(A) SUBJECT TO THE PROVIS IONS OF THIS SECTION , THE BOARD MAY ISSUE 1
BY RECIPROCITY A LIC ENSE TO AN INDIVIDUA L WHO HAS THE EQUIVA LENT LICENSE 2
IN ANOTHER STATE OR TERRITORY OF THE UNITED STATES. 3
(B) THE BOARD MAY ISSUE A LICENSE U NDER THIS SECTION ON LY IF THE 4
APPLICANT: 5
(1) PAYS TO THE BOARD A LICENSE FEE S ET BY THE BOARD; AND 6
(2) PROVIDES ADEQUATE EV IDENCE THAT AT THE T IME OF 7
APPLICATION FOR LICE NSURE UNDER THIS SEC TION THE APPLICANT H AS MET 8
REQUIREMENTS THAT ARE SUBSTANTIAL LY EQUIVALENT TO THE REQUIREMENTS 9
OF THE STATE. 10
(C) THE BOARD SHALL ESTABLISH STANDARDS FOR THE IS SUANCE OF A 11
LICENSE UNDER THIS S ECTION. 12
22–309. 13
(A) SUBJECT TO THE HEARIN G PROVISIONS OF § 22–311 OF THIS SUBTITLE, 14
THE BOARD MAY DEN Y A LICENSE TO ANY A PPLICANT, REPRIMAND ANY LICENS ED 15
COMMUNITY MANAGER , OR SUSPEND OR REVOKE A LICENSE IF THE APP LICANT OR 16
LICENSED COMMUNITY M ANAGER: 17
(1) FRAUDULENTLY OR DECE PTIVELY OBTAINS OR A TTEMPTS TO 18
OBTAIN A LICENSE FOR THE APPLICANT OR LIC ENSED COMMUNITY MANAGER OR 19
FOR ANOTHER ; 20
(2) FRAUDULENTLY OR DECE PTIVELY USES A LICEN SE; 21
(3) UNDER THE LAWS OF TH E UNITED STATES OR OF ANY STAT E, IS 22
CONVICTED OF : 23
(I) A FELONY; OR 24
(II) A MISDEMEANOR THAT I S DIRECTLY RELATED T O THE 25
FITNESS AND QUALIFICATIONS OF TH E APPLICANT OR LICEN SED COMMUNITY 26
MANAGER TO PROVIDE MANAGEMEN T SERVICES; 27
(4) ENGAGES IN CONDUCT T HAT DEMONSTRATES BAD FAITH, 28
INCOMPETENCY , OR UNTRUSTWORTHINESS OR THAT CONSTITUTES DISHONEST, 29
FRAUDULENT , OR IMPROPER DEALINGS ; 30
14 HOUSE BILL 26
(5) FAILS TO HANDLE THE FUNDS OF A COMMON OW NERSHIP 1
COMMUNITY IN ACCORDA NCE WITH THE PROVISI ONS OF THIS TITLE; 2
(6) FAILS TO ACCOUNT IN A TIMELY MANNER FOR ALL MONEY AND 3
PROPERTY RECEIVED ON BEHALF OF A COMMON O WNERSHIP COMMUNITY ; 4
(7) WILLFULLY FAILS TO DISCLOSE TO A COMMON OWNERSHIP 5
COMMUNITY MATERIAL F ACTS THAT RELATE TO THE PROPERTY OF THE COMMON 6
OWNERSHIP COMMUNITY OR CONCERN MANAGEMEN T SERVICES OF WHICH THE 7
LICENSED COMMUNITY M ANAGER HAS ACTUAL KNOWLEDGE ; 8
(8) IS GUILTY OF GROSS N EGLIGENCE, INCOMPETENCE THAT IS 9
PROVEN TO HAVE BEEN DETRIMENTAL TO A COM MON OWNERSHIP COMMUN ITY, OR 10
MISCONDUCT IN PROVID ING MANAGEMENT SERVI CES; 11
(9) HAS BEEN SANCTIONED IN ANOTHER STATE IN A MATTER 12
RELATING TO PROVIDIN G MANAGEMENT SERVICE S; 13
(10) VIOLATES ANY OTHER P ROVISION OF THIS TITLE; OR 14
(11) VIOLATES ANY REGULAT ION ADOPTED BY THE BOARD UNDER 15
THIS TITLE. 16
(B) (1) INSTEAD OF OR IN ADDI TION TO REPRIMANDING THE LICENSED 17
COMMUNITY MANAGER OR SUSPENDING OR REV OKING A LICENSE UNDE R THIS 18
SECTION, THE BOARD MAY IMPOSE A PENALTY NOT EXCEED ING $5,000 FOR EACH 19
VIOLATION. 20
(2) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 21
THIS SUBSECTION , THE BOARD SHALL CONSIDER : 22
(I) THE SERIOUSNESS OF T HE VIOLATION; 23
(II) THE HARM CAUSED BY T HE VIOLATION; 24
(III) THE GOOD FAITH OF TH E LICENSED COMMUNITY MANAGER; 25
AND 26
(IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E LICENSED 27
COMMUNITY MANAGER . 28
(3) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 29
SUBSECTION INTO THE GENERAL FUND OF THE STATE. 30
HOUSE BILL 26 15
(C) THE BOARD SHALL CONSIDER THE F OLLOWING FACTS IN TH E 1
GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A L ICENSE OR THE 2
REPRIMAND OF A LICEN SED COMMUNITY MANAGE R WHEN AN APPLICANT OR A 3
LICENSED COMMUNITY M ANAGER IS CONVICTED OF A FE LONY OR MISDEMEANOR 4
DESCRIBED IN SUBSECT ION (A)(3) OF THIS SECTION: 5
(1) THE NATURE OF THE CR IME; 6
(2) THE RELATIONSHIP OF THE CRIME TO THE ACT IVITIES 7
AUTHORIZED BY THE LI CENSE; 8
(3) WITH RESPECT TO A FE LONY, THE RELEVANCE OF THE 9
CONVICTION TO THE FI TNESS AND QUALIFICAT ION OF THE APPLICANT OR LICENSED 10
COMMUNITY MANAGER TO PROVIDE MANAGEMEN T SERVICES; 11
(4) THE LENGTH OF TIME S INCE THE CONVICTION ; AND 12
(5) THE BEHAVIOR AND ACT IVITIES OF THE APPLI CANT OR LICENSED 13
COMMUNITY MANAGER BEFORE AND AFTER THE CONVICTION. 14
22–310. 15
ON ITS OWN INITIATIVE OR ON A WRITTEN COMP LAINT MADE TO THE BOARD 16
BY ANY PERSON , THE BOARD MAY COMMENCE PR OCEEDINGS UNDER § 22–311 OF 17
THIS SUBTITLE. 18
22–311. 19
(A) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 20
GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES ANY FINAL ACTION UNDER § 21
22–309 OF THIS SUBTITLE , THE BOARD SHALL GIVE THE INDIVIDUAL AGAINST 22
WHOM THE ACTION IS C ONTEMPLATED AN OPPOR TUNITY FOR A HEARING BEFORE 23
THE BOARD. 24
(B) THE BOARD SHALL GIVE NOTI CE AND HOLD THE HEAR ING IN 25
ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 26
(C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH ANY 27
PROCEEDING UNDER THI S SECTION. 28
(D) (1) THE BOARD MAY ISSUE A SUB POENA FOR THE ATTEND ANCE OF A 29
WITNESS TO TESTIFY O R THE PRODUCTION OF EVIDENCE IN CONNECTION WI TH ANY 30
PROCEEDING UNDER THI S SECTION. 31
16 HOUSE BILL 26
(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER 1
THIS SUBSECTION , ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 2
COMPLIANCE WITH THE SUBPOENA. 3
(E) IF, AFTER DUE NOTICE , THE INDIVIDUAL AGAINST W HOM THE ACTION IS 4
CONTEMPLATED FAILS O R REFUSES TO APPEAR , THE BOARD MAY HEAR AND 5
DETERMINE THE MATTER . 6
22–312. 7
ANY PERSON AGGRIEVED BY A FINAL DECISION OF THE BOARD IN A 8
CONTESTED CASE , AS DEFINED IN § 10–202 OF THE STATE GOVERNMENT ARTICLE, 9
IS ENTITLED TO JUDIC IAL REVIEW AS PROVID ED IN §§ 10–222 AND 10–223 OF THE 10
STATE GOVERNMENT ARTICLE. 11
22–313. 12
THE BOARD MAY REINSTATE , IN ACCORDANCE WITH T HE PROCEDURES OF 13
THE BOARD: 14
(1) A LICENSE THAT HAS B EEN REVOKED ; OR 15
(2) BEFORE FULFI LLMENT OF THE CONDIT IONS OF THE SUSPENSI ON, 16
ANY LICENSE THAT HAS BEEN SUSPENDED . 17
SUBTITLE 4. LICENSED ASSOCIATE COMMUNITY MANAGERS. 18
22–401. 19
(A) AN INDIVIDUAL MUST BE I SSUED A LIMITED LICE NSE BY THE BOARD 20
BEFORE THE INDIVIDUA L MAY PROVIDE MANAGE MENT SERVICES AS A LICENS ED 21
ASSOCIATE COMMUNITY MANAGER FOR A COMMON OWNERSHIP COMMUNITY IN THE 22
STATE. 23
(B) A LICENSED ASSOCIATE C OMMUNITY MANAGER MAY PROVIDE 24
MANAGEMENT SERVICES FOR A COMMON OWNERSH IP COMMUNITY ONLY WH ILE 25
UNDER THE GENERAL SU PERVISION OF A LI CENSED COMMUNITY MAN AGER. 26
22–402. 27
(A) TO QUALIFY FOR A LIMI TED LICENSE, AN APPLICANT MUST BE AN 28
INDIVIDUAL WHO MEETS : 29
(1) THE REQUIREMENTS OF THIS SECTION; AND 30 HOUSE BILL 26 17
(2) ANY OTHER QUALIFICAT ION REQUIRED BY REGU LATION OF THE 1
BOARD. 2
(B) AN APPLICANT MUST BE AT LEAST 18 YEARS OLD. 3
(C) AN APPLICANT SHALL : 4
(1) COMPLETE A TRAINING PROGRAM APPROVED BY THE BOARD; AND 5
(2) PASS AN EXAMINATION APPROVED BY THE BOARD. 6
22–403. 7
AN APPLICANT FOR A LI MITED LICENSE SHALL: 8
(1) SUBMIT TO THE BOARD AN APPL ICATION ON THE FORM THAT THE 9
BOARD PROVIDES ; AND 10
(2) PAY TO THE BOARD AN APPLICATION FEE SET BY THE BOARD. 11
22–404. 12
(A) IF AN APPLICANT QUALI FIES FOR A LIMITED L ICENSE UNDER THIS 13
SUBTITLE, THE BOARD SHALL SEND THE APPLICANT A NOTICE T HAT STATES THAT : 14
(1) THE APPLICANT HAS QU ALIFIED FOR A LIMITE D LICENSE; AND 15
(2) ON RECEIPT OF THE LI MITED LICENSE FEE SE T BY THE BOARD, 16
THE BOARD WILL ISSUE A LIMITED LICE NSE IN THE NAME OF THE A PPLICANT. 17
(B) ON PAYMENT OF THE LIM ITED LICENSE FEE, THE BOARD SHALL ISSUE 18
A LIMITED LICENSE IN THE NAME OF EACH APPLICANT WH O MEETS THE 19
REQUIREMENTS OF THIS SUBTITLE. 20
(C) THE BOARD SHALL DELIVER A LIMITED LICENSE ISSU ED BY THE BOARD 21
TO THE LICENSED COMM UNITY MANAGER WHO WI LL BE SUPERVISING TH E 22
LICENSED ASSOCIATE COMMUNITY MANAGER , AT THE ADDRESS OF TH E LICENSED 23
COMMUNITY MANAGER TH AT IS INDICATED IN T HE APPLICATION FOR A LIMITED 24
LICENSE. 25
22–405. 26
WHILE IN EFFECT , A LIMITED LICENSE AUTHORIZES THE LICEN SED 27
ASSOCIATE COMMUNITY MANAGER TO PROVIDE MANAGEMEN T SERVICES FOR A 28 18 HOUSE BILL 26
COMMON OWNERSHIP COM MUNITY ONLY WHILE UN DER THE GENERAL SUPE RVISION 1
OF A LICENSED COMMUN ITY MANAGER. 2
22–406. 3
(A) THE TERM OF A LIMITED LICENSE IS 2 YEARS. 4
(B) AT LEAST 2 MONTHS BEFORE A LIMI TED LICENSE EXPIRES, THE BOARD 5
SHALL SEND TO THE LI CENSED ASSOCIATE COMMUN ITY MANAGER , AT THE LAST 6
KNOWN ADDRESS OF THE LICENSED ASSOCIATE C OMMUNITY MANAGER : 7
(1) A RENEWAL APPLICATIO N FORM; AND 8
(2) A NOTICE THAT STATES : 9
(I) THE DATE ON WHICH TH E CURRENT LIMITED LI CENSE 10
EXPIRES; 11
(II) THE DATE BY WHICH THE BOARD MUST RECEIVE TH E 12
RENEWAL APPLICATION FOR THE RENEWAL TO B E ISSUED AND MAILED BEFORE THE 13
LIMITED LICENSE EXPIRES; AND 14
(III) THE AMOUNT OF THE RE NEWAL FEE. 15
(C) (1) THE BOARD SHALL RENEW THE LIMITED LICENSE OF A ND ISSUE 16
A RENEWAL CE RTIFICATE TO EACH LI CENSED ASSOCIATE COM MUNITY MANAGER 17
WHO MEETS THE REQUIR EMENTS OF THIS SECTI ON. 18
(2) THE BOARD SHALL INCLUDE O N EACH RENEWAL CERTI FICATE 19
THE DATE ON WHICH TH E CURRENT LIMITED LI CENSE EXPIRES. 20
22–407. 21
(A) THE BOARD SHALL REINSTATE THE LIMITED LICENSE OF AN 22
INDIVIDUAL WHO HAS F AILED TO RENEW THE L IMITED LICENSE IF THE INDIVIDUAL: 23
(1) APPLIES TO THE BOARD FOR REINSTATEME NT WITHIN 2 YEARS 24
AFTER THE LIMITED LI CENSE EXPIRES; 25
(2) MEETS THE RENEWAL RE QUIREMENTS OF § 22–406 OF THIS 26
SUBTITLE; AND 27
(3) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE BOARD. 28
HOUSE BILL 26 19
(B) (1) IF AN INDIVIDUAL HAS FAILED TO RENEW A LI MITED LICENSE AND 1
THEN APPLIES TO THE BOARD FOR REINSTATEME NT MORE THAN 2 YEARS AFTER 2
THE LIMITED LICENSE HAS EXPIRED, THE BOARD: 3
(I) MAY REQUIRE THE INDI VIDUAL TO REAPPLY FO R A LIMITED 4
LICENSE IN THE SAME MANNER A S AN APPLICANT APPLI ES FOR AN ORIGINAL 5
LIMITED LICENSE UNDER THIS SUBTITLE ; OR 6
(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , MAY 7
REINSTATE THE LIMITE D LICENSE. 8
(2) THE BOARD MAY REINSTATE A LIMITED LICENSE UNDER 9
PARAGRAPH (1) OF THIS SUBSECTION O NLY IF THE INDIVIDUA L: 10
(I) MEETS THE RENEWAL RE QUIREMENTS OF § 22–406 OF THIS 11
SUBTITLE; 12
(II) IF REQUIRED BY THE BOARD, STATES REASONS WHY 13
REINSTATEMENT SHOULD BE GRANTED; AND 14
(III) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE 15
BOARD. 16
22–408. 17
(A) SUBJECT TO THE HEARIN G PROVISIONS OF § 22–410 OF THIS SUBTITLE, 18
THE BOARD MAY DENY A LIMI TED LICENSE TO ANY A PPLICANT, REPRIMAND ANY 19
LICENSED ASSOCIATE C OMMUNITY MANAGER , OR SUSPEND OR REVOKE A LIMITED 20
LICENSE IF THE APPLI CANT OR LICENSED ASS OCIATE COMMUNITY MAN AGER: 21
(1) FRAUDULENTLY OR DECE PTIVELY OBTAINS OR A TTEMPTS TO 22
OBTAIN A LIMITED LIC ENSE FOR THE APPLICA NT OR LICENSED ASSOC IATE 23
COMMUNITY MANAGER OR FOR ANOTHER; 24
(2) FRAUDULENTLY OR DECE PTIVELY USES A LIMIT ED LICENSE; 25
(3) UNDER THE LAWS OF TH E UNITED STATES OR OF ANY STAT E, IS 26
CONVICTED OF : 27
(I) A FELONY; OR 28
(II) A MISDEMEANOR THAT I S DIRECTLY RELATED T O THE 29
FITNESS AND QUALIFIC ATIONS OF THE APPLICANT OR LIC ENSED ASSOCIATE 30
COMMUNITY MANAGER TO PROVIDE MANAGEMENT S ERVICES; 31 20 HOUSE BILL 26
(4) ENGAGES IN CONDUCT T HAT DEMONSTRATES BAD FAITH, 1
INCOMPETENCY , OR UNTRUSTWORTHINESS OR THAT CONSTITUTES DISHONEST, 2
FRAUDULENT , OR IMPROPER DEALINGS ; 3
(5) FAILS TO HANDLE THE FUNDS OF A COMMON OWNERSHI P 4
COMMUNITY IN ACCORDA NCE WITH THE PROVISI ONS OF THIS TITLE; 5
(6) FAILS TO ACCOUNT IN A TIMELY MANNER FOR ALL MONEY AND 6
PROPERTY RECEIVED ON BEHALF OF A COMMON O WNERSHIP COMMUNITY ; 7
(7) WILLFULLY FAILS TO DISCLOSE TO A COMMON OWNERSHIP 8
COMMUNITY MATERIAL F ACTS THAT RELATE TO THE PROPERTY OF THE COMMON 9
OWNERSHIP COMMUNITY OR CONCERN MANAGEMEN T SERVICES OF WHICH THE 10
LICENSED ASSOCIATE C OMMUNITY MANAGER HAS ACTUAL KNOWLEDGE ; 11
(8) IS GUILTY OF GROSS N EGLIGENCE, INCOMPETENCE THAT IS 12
PROVEN TO HAVE BEEN DETRIMENTAL TO A COM MON OWNERSHIP COMMUN ITY, OR 13
MISCONDUCT IN PROVID ING MANAGEMENT SERVI CES; 14
(9) HAS BEEN SANCTIONED IN ANOTHER STATE IN A MATTER 15
RELATING TO PROVIDIN G MANAGEMENT SERVICE S; 16
(10) VIOLATES ANY OTHER PROVISION O F THIS TITLE; OR 17
(11) VIOLATES ANY REGULAT ION ADOPTED BY THE BOARD UNDER 18
THIS TITLE. 19
(B) (1) INSTEAD OF OR IN ADDI TION TO REPRIMANDING THE LICENSED 20
ASSOCIATE COMMUNITY MANAGER OR SUSPENDIN G OR REVOKING A LIMI TED 21
LICENSE UNDER THIS SECTION, THE BOARD MAY IMPOSE A PE NALTY NOT 22
EXCEEDING $5,000 FOR EACH VIOLATION . 23
(2) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 24
THIS SUBSECTION , THE BOARD SHALL CONSIDER : 25
(I) THE SERIOUSNESS OF T HE VIOLATION; 26
(II) THE HARM CAUSED BY THE VIOLATION; 27
(III) THE GOOD FAITH OF TH E LICENSED ASSOCIATE COMMUNITY 28
MANAGER; AND 29
HOUSE BILL 26 21
(IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E LICENSED 1
ASSOCIATE COMMUNITY MANAGER. 2
(3) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 3
SUBSECTION INTO THE GENERAL FUND OF THE STATE. 4
(C) THE BOARD SHALL CONSIDER THE FOLLOWING FACTS IN THE 5
GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A L IMITED 6
LICENSE OR THE REPRI MAND OF A LICENSED A SSOCIATE COMMUNITY M ANAGER 7
WHEN AN APPLICANT OR A LICENSED A SSOCIATE COMMUNITY M ANAGER IS 8
CONVICTED OF A FELON Y OR MISDEMEANOR DES CRIBED IN SUBSECTION (A)(3) OF 9
THIS SECTION: 10
(1) THE NATURE OF THE CR IME; 11
(2) THE RELATIONSHIP OF THE CRIME TO THE ACT IVITIES 12
AUTHORIZED BY THE LI MITED LICENSE; 13
(3) WITH RESPECT TO A FELONY , THE RELEVANCE OF THE 14
CONVICTION TO THE FI TNESS AND QUALIFICAT ION OF THE APPLICANT OR LICENSED 15
ASSOCIATE COMMUNITY MANAGER TO PROVIDE M ANAGEMENT SERVICES ; 16
(4) THE LENGTH OF TIME S INCE THE CONVICTION ; AND 17
(5) THE BEHAVIOR AND ACT IVITIES OF THE APPLICANT OR L ICENSED 18
ASSOCIATE COMMUNITY MANAGER BEFORE AND A FTER THE CONVICTION . 19
22–409. 20
ON ITS OWN INITIATIVE OR ON A WRITTEN COMP LAINT MADE TO THE BOARD 21
BY ANY PERSON , THE BOARD MAY COMMENCE PR OCEEDINGS UNDER § 22–410 OF 22
THIS SUBTITLE. 23
22–410. 24
(A) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 25
GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES ANY FINAL ACTION UNDER § 26
22–408 OF THIS SUBTITLE , THE BOARD SHALL GIVE THE INDIVIDUAL AGAINST 27
WHOM THE ACTION IS C ONTEMPLATED AN OPPOR TUNITY FOR A HEAR ING BEFORE 28
THE BOARD. 29
(B) THE BOARD SHALL GIVE NOTI CE AND HOLD THE HEAR ING IN 30
ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 31
22 HOUSE BILL 26
(C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH ANY 1
PROCEEDING UNDER THI S SECTION. 2
(D) (1) THE BOARD MAY ISSUE A SUB POENA FOR THE ATTEND ANCE OF A 3
WITNESS TO TESTIFY O R THE PRODUCTION OF EVIDENCE IN CONNECTI ON WITH ANY 4
PROCEEDING UNDER THI S SECTION. 5
(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER 6
THIS SUBSECTION , ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 7
COMPLIANCE WITH THE SUBPOENA. 8
(E) IF, AFTER DUE NOTICE , THE INDIVIDUAL AGAIN ST WHOM THE ACTION I S 9
CONTEMPLATED FAILS O R REFUSES TO APPEAR , THE BOARD MAY HEAR AND 10
DETERMINE THE MATTER . 11
22–411. 12
ANY PERSON AGGRIEVED BY A FINAL DECISION OF TH E BOARD IN A 13
CONTESTED CASE , AS DEFINED IN § 10–202 OF THE STATE GOVERNMENT ARTICLE, 14
IS ENTITLED TO JUDIC IAL REVIEW AS PROVID ED IN §§ 10–222 AND 10–223 OF THE 15
STATE GOVERNMENT ARTICLE. 16
22–412. 17
THE BOARD MAY REINSTATE , IN ACCORDANCE WITH THE PROCEDURES OF 18
THE BOARD: 19
(1) A LIMITED LICENSE TH AT HAS BEEN REVOKED ; OR 20
(2) BEFORE FULFILLMENT O F THE CONDITIONS OF THE SUSPENSION , 21
ANY LIMITED LICENSE THAT HAS BEEN SUSPEN DED. 22
SUBTITLE 5. REGISTRATION OF COMMON OWNERSHIP COMMUNITIES . 23
22–501. 24
(A) ON OR BEFORE JANUARY 1 EACH YEAR , A COMMON OWNERSHIP 25
COMMUNITY SHALL REGISTER WITH THE BOARD. 26
(B) IF A COMMON OWNERSHIP COMMUNITY CONTRACTS FOR MANAGEMENT 27
SERVICES, THE RESPONSIBLE MANA GER SHALL BE RESPONS IBLE FOR THE 28
REGISTRATION OF THE COMMON OWNERSHIP COMMUNIT Y. 29
22–502. 30 HOUSE BILL 26 23
EACH COMMON OWNERSHIP COMMUNITY SHALL PROV IDE THE BOARD THE 1
FOLLOWING INFORMATIO N: 2
(1) THE NAME AND ADDRESS OF THE COMMON OWNERS HIP 3
COMMUNITY ; 4
(2) THE COUNTY IN WHICH THE COMMON OWNERSHIP COMMUNITY IS 5
LOCATED; 6
(3) THE NAME AND CONTACT INFORMATION OF EACH OFFICER AND 7
MEMBER OF THE BOARD OF DIRECTORS OR GOVE RNING BODY OF THE CO MMON 8
OWNERSHIP COMMUNITY ; 9
(4) THE NAME AND ADDRESS OF THE LICENSED COMM UNITY 10
MANAGER, IF ANY, FOR THE COMMON OWNER SHIP COMMUNITY ; AND 11
(5) ANY OTHER INFORMATIO N REQUIRED BY THE BOARD. 12
SUBTITLE 6. MISCELLANEOUS PROVISIONS. 13
22–601. 14
(A) IN THIS SECTION , “CONTRACTING PARTY ” MEANS A LICENSED 15
COMMUNITY MANAGER OR A PERSON UNDER THE D IRECTION OF A LICENS ED 16
COMMUNITY MANAGER TH AT CONTRACTS TO PROVIDE MANAGEMENT S ERVICES FOR 17
A COMMON OWNERSHIP C OMMUNITY. 18
(B) A CONTRACTING PARTY SHALL FILE WITH THE SECRETARY PROOF AS 19
REQUIRED BY THE BOARD OF A FIDELITY B OND OR THEFT INSURAN CE, OR OTHER 20
COMPARABLE WRITTEN I NSURANCE AS REQUIRED BY THE BOARD, THAT COVERS: 21
(1) ANY PERSON THAT PROV IDES MANAGEMENT SERV ICES FOR A 22
COMMON OWNERSHIP COM MUNITY UNDER THE TER MS OF A CONTRACT ; AND 23
(2) ANY INDIVIDUAL WORKI NG UNDER THE DIRECTI ON OF A PERSON 24
DESCRIBED IN ITEM (1) OF THIS SUBSECTION . 25
(C) (1) A FIDELITY BOND OR INSURANCE FOR WHICH PROOF IS FILED 26
UNDER THIS SECTION S HALL PROVIDE COVERAG E IN AN AMOUNT EQUAL TO THE 27
LESSER OF: 28
(I) $2,000,000; OR 29
24 HOUSE BILL 26
(II) THE HIGHEST AGGREGAT E AMOUNT OF THE OPER ATING 1
AND RESERVE BALANCES OF ALL COMMON OWNERS HIP COMMUNITIES U NDER 2
CONTRACT WITH THE CO NTRACTING PARTY IN THE PRIOR 3 MONTHS. 3
(2) THE TOTAL LIABILITY O F THE INSURANCE TO A LL INSURED 4
PERSONS UNDER A FIDE LITY BOND OR INSURAN CE MAY NOT EXCEED TH E SUM OF 5
THE FIDELITY BOND OR INSURANCE. 6
(3) THE SECRETARY, OR THE SECRETARY’S DESIGNEE, SHALL BE 7
NAMED AS A CERTIFICA TE HOLDER FOR ANY FI DELITY BOND OR INSUR ANCE 8
REQUIRED UNDER THIS SECTION. 9
(D) IF THE FIDELITY BOND OR INSURANCE IS CANC ELED, FORFEITED, OR 10
TERMINATED , THE CONTRACTING PART Y IMMEDIATELY SHALL NO TIFY THE 11
SECRETARY. 12
(E) IF THE FIDELITY BOND OR INSURANCE IS CANC ELED, FORFEITED, OR 13
TERMINATED , OR THE CONTRACTING P ARTY FAILS TO NOTIFY THE SECRETARY OF 14
ANY CHANGE TO THE FI DELITY BOND OR INSUR ANCE, THE SECRETARY: 15
(1) SHALL SUSPEND ANY LI CENSE OF ANY INDIVIDUAL PROVIDING 16
MANAGEMENT SERVICES COVERED BY THE FIDEL ITY BOND OR INSURANC E; AND 17
(2) MAY NOT REINSTATE A LICENSE UNTIL PROOF OF COMPLIANCE 18
WITH THIS SECTION IS PROVIDED TO THE SECRETARY. 19
22–602. 20
(A) A LICENSED COMMUNITY M ANAGER SHALL DEPOSIT A LL MONEY 21
RECEIVED IN CONNECTI ON WITH THE PROVISIO N OF MANAGEMENT SERV ICES IN 22
ONE OR MORE OF THE F INANCIAL INSTITUTION ACCOUNTS OF A COMMON 23
OWNERSHIP COMMUNITY . 24
(B) A LICENSED COMMUNITY M ANAGER WHO PROVIDES MANAGEM ENT 25
SERVICES FOR MORE TH AN ONE COMMON OWN ERSHIP COMMUNITY SHA LL 26
MAINTAIN SEPARATE FI NANCIAL INSTITUTION ACCOUNTS FOR EACH CO MMON 27
OWNERSHIP COMMUNITY . 28
(C) THE FUNDS IN EACH FIN ANCIAL INSTITUTION A CCOUNT OF A COMMON 29
OWNERSHIP COMMUNITY MAY NOT BE COMMINGLE D WITH THE FUNDS OF THE 30
LICENSED COMMUNIT Y MANAGER OR ANOTHER COMMON OW NERSHIP COMMUNITY . 31
HOUSE BILL 26 25
(D) THE MAINTENANCE OF FI NANCIAL INSTITUTION ACCOUNTS BY A 1
LICENSED COMMUNITY M ANAGER SHALL BE CUSTODIAL A ND PROVIDED IN THE 2
NAME OF THE COMMON O WNERSHIP COMMUNITY . 3
(E) THE RECORDS OF EACH FINANCIAL INST ITUTION ACCOUNT OF A 4
COMMON OWNERSHIP COM MUNITY SHALL BE ACCESSIBLE FOR REVIE W DIRECTLY 5
FROM THE FINANCIAL I NSTITUTION TO THE GO VERNING BODY OF THE COMMON 6
OWNERSHIP COMMUNITY . 7
(F) A LICENSED COMMUNITY M ANAGER WHO WILLFULLY VIOLAT ES ANY 8
PROVISION OF THIS SECTION IS GUILTY OF A MISDEMEANOR AND ON CONVICTION IS 9
SUBJECT TO A FINE NO T EXCEEDING $25,000 OR IMPRISONMENT NOT EXCEEDING 5 10
YEARS OR BOTH . 11
22–603. 12
IF A COMMON OWNERSHIP COMMUNITY CONTRACTS WITH A PERSON OTHER 13
THAN A LICENSED COMM UNITY MANAGER TO PROVIDE MANAGEMENT S ERVICES, 14
THE CONTRACT SHALL R EQUIRE THAT ONLY A L ICENSED COMMUNITY MA NAGER 15
PROVIDE THE MANAGEME NT SERVICES FOR THE COMMON OWNERSHIP COMMUNITY . 16
SUBTITLE 7. PROHIBITED ACTS; PENALTIES. 17
22–701. 18
EXCEPT AS OTHERWISE P ROVIDED IN THIS TITLE, AN INDIVIDUAL MAY NO T 19
PROVIDE, ATTEMPT TO PROVIDE , OR OFFER TO PROVIDE MANAGEMENT SERVICES 20
FOR A COMMON OWNERSHIP C OMMUNITY IN THE STATE UNLESS ISSUED A LICENSE 21
OR A LIMITED LICENSE BY THE BOARD. 22
22–702. 23
UNLESS AUTHORIZED UND ER THIS TITLE TO PRO VIDE MANAGEMENT 24
SERVICES TO A COMMON OWNERSHIP COMMUNITY , A PERSON MAY NOT REP RESENT 25
TO THE PUBLIC BY USE OF A TITLE, INCLUDING “LICENSED COMMUNITY M ANAGER”, 26
“LICENSED ASSOCIATE C OMMUNITY MANAGER ”, OR “COMMON OWNERSHIP 27
COMMUNITY MANAGEMENT ”, BY USE OF AN ABBREVIATION, BY DESCRIPTION OF 28
SERVICES, METHODS, OR PROCEDURES , OR OTHERWISE THAT TH E PERSON IS 29
AUTHORIZED TO PROVID E MANAGEMENT SERVICE S FOR A COMMON OWNERSHIP 30
COMMUNITY IN THE STATE. 31
22–703. 32
AN INDIVIDUAL MAY NOT : 33 26 HOUSE BILL 26
(1) USE OR ATTEMPT TO US E THE LICENSE OR LIMITED LICEN SE OF 1
ANOTHER INDIVIDUAL ; OR 2
(2) IMPERSONATE ANOTHER INDIVIDUAL WHO HOLDS A LICENSE OR 3
A LIMITED LICENSE . 4
22–704. 5
AN INDIVIDUAL MAY NOT GIVE FALSE INFORMATI ON TO THE BOARD IN AN 6
ATTEMPT TO OBTAIN A LICENSE OR A LIMITED LICENSE . 7
22–705. 8
AN INDIVIDUAL WHOSE L ICENSE OR LIMITED LI CENSE HAS BEEN SUSPENDED 9
OR REVOKED UNDER THI S TITLE MAY NOT PROV IDE MANAGEMENT SERVI CES FOR A 10
COMMON OWNERSHIP COM MUNITY IN ANY MANNER AS: 11
(1) AN ASSOCIATE , AN AGENT, AN EMPLOYEE , OR ANY OTHER 12
SUBORDINATE OF A LIC ENSED COMMUNITY MANA GER; OR 13
(2) A PRINCIPAL, AN ASSOCIATE, AN AGENT, AN EMPLOYEE , OR ANY 14
OTHER SUBORDINATE OF A CORPORATION , PARTNERSHIP , OR LIMITED LIABILITY 15
COMPANY THAT PROVIDE S MANAGEMENT SERVICE S. 16
22–706. 17
(A) A PERSON THAT VI OLATES ANY PROVISION OF THIS TITLE IS GUILTY OF 18
A MISDEMEANOR AND ON CONVICTION IS SUBJEC T TO A FINE NOT EXCE EDING 19
$5,000 OR IMPRISONMENT NOT EXCEEDING 3 YEARS OR BOTH . 20
(B) (1) THE BOARD MAY IMPOSE ON A PERSON THAT VIOLATES ANY 21
PROVISION OF THIS TI TLE A PENALTY NOT EXCEEDIN G $5,000 FOR EACH VIOLATION . 22
(2) IN SETTING THE AMOUNT OF THE PENALTY , THE BOARD SHALL 23
CONSIDER: 24
(I) THE SERIOUSNESS OF T HE VIOLATION; 25
(II) THE HARM CAUSED BY T HE VIOLATION; 26
(III) THE GOOD FAITH OF TH E VIOLATOR; 27
(IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E VIOLATOR; 28
AND 29 HOUSE BILL 26 27
(V) ANY OTHER RELEVANT F ACTORS. 1
(C) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 2
SECTION INTO THE GENERAL FUND OF THE STATE. 3
SUBTITLE 8. SHORT TITLE; TERMINATION OF TITLE. 4
22–801. 5
THIS TITLE MAY BE CIT ED AS THE MARYLAND COMMON OWNERSHIP 6
COMMUNITY MANAGERS ACT. 7
22–802. 8
SUBJECT TO THE EVALUA TION AND REESTABLISH MENT PROVISIONS OF T HE 9
MARYLAND PROGRAM EVALUATION ACT, THIS TITLE AND ALL REGULATIONS 10
ADOPTED UNDER THIS T ITLE SHALL TERMINATE AND BE OF NO EFFECT AFTER JULY 11
1, 2030. 12
Article – Business Regulation 13
2–106.15. 14
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 15
INDICATED. 16
(2) “BOARD” MEANS THE STATE BOARD OF COMMON OWNERSHIP 17
COMMUNITY MANAGERS. 18
(3) “FUND” MEANS THE STATE BOARD OF COMMON OWNERSHIP 19
COMMUNITY MANAGERS FUND. 20
(B) THERE IS A STATE BOARD OF COMMON OWNERSHIP COMMUNITY 21
MANAGERS FUND IN THE DEPARTMENT . 22
(C) THE PURPOSE OF THE FUND IS TO COVER THE ACTUAL DOCUMENTED 23
DIRECT AND INDIRECT COSTS OF FULF ILLING THE STATUTORY AND REGULATORY 24
DUTIES OF THE BOARD. 25
(D) THE SECRETARY OR THE SECRETARY’S DESIGNEE SHALL ADM INISTER 26
THE FUND. 27
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 28
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 29 28 HOUSE BILL 26
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 1
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
(F) THE FUND CONSISTS OF : 3
(1) FEES COLLECTED BY TH E BOARD AND DISTRIBUTED TO THE 4
FUND UNDER § 22–207 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 5
ARTICLE; 6
(2) INTEREST EARNINGS OF THE FUND; 7
(3) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 8
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 9
THE BENEFIT OF THE FUND. 10
(G) THE FUND MAY BE USED ONLY TO COVER THE ACTUAL DOCUMENTED 11
DIRECT AND INDIRECT COSTS OF FULFILLING THE STATUTORY AND RE GULATORY 12
DUTIES OF THE BOARD. 13
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 14
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 15
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 16
THE FUND. 17
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 18
WITH THE STATE BUDGET . 19
(J) THE LEGISLATIVE AUDITOR SHALL AUDIT T HE ACCOUNTS AND 20
TRANSACTIONS OF THE FUND, AS PROVIDED IN § 2–1220 OF THE STATE 21
GOVERNMENT ARTICLE. 22
2–106.16. 23
(A) IN THIS SECTION , “BOARD” MEANS THE STATE BOARD OF COMMON 24
OWNERSHIP COMMUNITY MANAGERS. 25
(B) IN CONSULTATION WITH THE BOARD, THE SECRETARY SHALL 26
CALCULATE ANNUALLY T HE DIRECT AND INDIRE CT COSTS ATTRIBUTABL E TO THE 27
BOARD. 28
HOUSE BILL 26 29
(C) THE BOARD SHALL ESTABLISH FEES BASED ON THE CA LCULATIONS 1
PROVIDED BY THE SECRETARY UNDER THIS SECTION. 2
(D) EACH FEE ESTABLISHED BY THE BOARD MAY NOT BE INCR EASED 3
ANNUALLY BY MORE THA N 12.5% OF THE EXISTING AND CORRESPONDING FEE OF 4
THE BOARD. 5
2–108. 6
(a) The following units are in the Department: 7
(34) THE STATE BOARD OF COMMON OWNERSHIP COMMUNITY 8
MANAGERS. 9
Article – Corporations and Associations 10
5–6B–12.1. 11
A COOPERATIVE HOUSING CORPORATION SHALL RE GISTER ANNUALLY WITH 12
THE STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS IN THE 13
MARYLAND DEPARTMENT OF LABOR AS REQUIRED UND ER TITLE 22, SUBTITLE 5 14
OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 15
Article – Real Property 16
11–130.1. 17
A CONDOMINIUM THAT IS USED FOR RESIDENTIAL PURPOSES SHALL 18
REGISTER ANNUALLY WITH THE STATE BOARD OF COMMON OWNERSHIP 19
COMMUNITY MANAGERS IN THE MARYLAND DEPARTMENT OF LABOR AS REQUIRED 20
UNDER TITLE 22, SUBTITLE 5 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 21
ARTICLE. 22
11B–115.2. 23
A HOMEOWNERS ASSOCIATI ON SHALL REGISTER ANNUALLY WITH THE STATE 24
BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS IN THE MARYLAND 25
DEPARTMENT OF LABOR AS REQUIRED UND ER TITLE 22, SUBTITLE 5 OF THE 26
BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 27
Article – State Finance and Procurement 28
6–226. 29
30 HOUSE BILL 26
(a) (2) (i) Notwithstanding any other provision of law, and unless 1
inconsistent with a federal law, grant agreement, or other federal requirement or with the 2
terms of a gift or settlement agreement, net interest on all State money allocated by the 3
State Treasurer under this section to special funds or accounts, and otherwise entitled to 4
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 5
Fund of the State. 6
(ii) The provisions of subparagraph (i) of this paragraph do not apply 7
to the following funds: 8
144. the Health Equity Resource Community Reserve Fund; 9
[and] 10
145. the Access to Counsel in Evictions Special Fund; AND 11
146. THE STATE BOARD OF COMMON OWNERSHIP 12
COMMUNITY MANAGERS FUND. 13
Article – State Government 14
8–403. 15
This subtitle applies only to the following governmental activities and units: 16
(13) COMMON OWNERSHIP COMMUNITY MANAGERS, STATE BOARD 17
OF (§ 22–201 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE); 18
SECTION 3. AND BE IT FURTHER ENACTED, That the terms of the initial 19
members of the State Board of Common Ownership Community Managers shall expire as 20
follows: 21
(1) three members in 2025; 22
(2) three members in 2026; and 23
(3) three members in 2027. 24
SECTION 4. AND BE IT FURTHER ENACTED, That the State Board of Common 25
Ownership Community Managers, when adopting regulations concerning the training and 26
examination requirements for an applicant for a license or a limited license under this Act, 27
may take into consideration the following training and examination standards: 28
(1) for a limited license: 29
(i) courses that include topics such as: 30
HOUSE BILL 26 31
1. the responsibilities of managers and members of 1
community governing bodies; 2
2. management ethics; 3
3. community rules; 4
4. community meetings and other communications; 5
5. assessments collections; 6
6. financial management; 7
7. risk management; 8
8. facilities management; and 9
9. personnel management; and 10
(ii) examinations that may be in a classroom or online; and 11
(2) for a license: 12
(i) courses that include topics such as: 13
1. high–rise maintenance and management; 14
2. advanced insurance and risk management; 15
3. management of large–scale communities; 16
4. legal considerations in community management; and 17
5. contemporary issues in community management; and 18
(ii) examinations that include a case study of an existing common 19
ownership community. 20
SECTION 5. AND BE IT FURTHER ENACTED, That: 21
(a) Until the time that the State Board of Common Ownership Community 22
Managers adopts regulations concerning the training and examination requirements for an 23
applicant for a license or a limited license under this Act, passing an examination that 24
meets the requirements listed in subsection (b) of this section shall be deemed adequate for 25
satisfying the requirements of § 22–302(c) or § 22–402(c) of the Business Occupations and 26
Professions Article, as enacted by Section 2 of this Act. 27
32 HOUSE BILL 26
(b) The examination specified under subsection (a) of this section shall be: 1
(1) a nationally prepared and administered standardized examination for 2
the community association management profession; and 3
(2) developed according to the basic principles of professional testing 4
standards that utilize psychometric measurement. 5
SECTION 6. AND BE IT FURTHER ENACTED, That the State Board of Common 6
Ownership Community Managers shall grant a waiver of the training and examination 7
requirements for a license issued under § 22–304 or a limited license issued under § 8
22–404 of the Business Occupations and Professions Article, as enacted by Section 2 of this 9
Act, to any applicant who presents to the Board not later than October 1, 2024, satisfactory 10
evidence that the applicant provided management services in the State for the 2 years 11
immediately before the date of application. 12
SECTION 7. AND BE IT FURTHER ENACTED, That, on or before December 1, 13
2022, the Maryland Department of Labor shall report to the General Assembly, in 14
accordance with § 2–1257 of the State Government Article, on the imposition of a 15
registration fee on common ownership communities, including the necessity for and amount 16
of a registration fee on common ownership communities in relation to the license fees and 17
limited license fees required under this Act and the size of a common ownership community 18
to which a registration fee would apply. 19
SECTION 8. AND BE IT FURTHER ENACTED, That the Department of Budget 20
and Management, by budget amendment, may advance sufficient funds to the State Board 21
of Common Ownership Community Managers to allow the Board to commence operations 22
on October 1, 2022, so that the functions of issuing licenses and limited licenses and 23
registering common ownership communities can be in place before October 1, 2023. The 24
Board shall reimburse any funds that have been advanced after the license fees and limited 25
license fees have been received and deposited into the State Board of Common Ownership 26
Community Managers Fund. 27
SECTION 9. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October 1, 2022. 29