Maryland 2023 Regular Session

Maryland Senate Bill SB593 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	sb0593
6	6
7	7	SENATE BILL 593
8	8	N1, M5 3lr1772
9	9	CF HB 101
10	10	By: Senator Smith
11	11	Introduced and read first time: February 6, 2023
12	12	Assigned to: Judicial Proceedings
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Condominiums – Common Elements – Clean Energy Equipment 2
19	19
20	20	FOR the purpose of authorizing certain governing bodies of a condominium to grant an 3
21	21	interest affecting the common elements of the condominium for the installation and 4
22	22	use of leased clean energy equipment; and generally relating to the common 5
23	23	elements of a condominium and leased clean energy equipment. 6
24	24
25	25	BY repealing and reenacting, with amendments, 7
26	26	Article – Real Property 8
27	27	Section 11–125 9
28	28	Annotated Code of Maryland 10
29	29	(2015 Replacement Volume and 2022 Supplement) 11
30	30
31	31	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
32	32	That the Laws of Maryland read as follows: 13
33	33
34	34	Article – Real Property 14
35	35
36	36	11–125. 15
37	37
38	38	(a) The existing physical boundaries of any unit or common element constructed 16
39	39	or reconstructed in substantial conformity with the condominium plat shall be conclusively 17
40	40	presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement 18
41	41	of any building and regardless of minor variations between the physical boundaries as 19
42	42	described in the declaration or shown on the condominium plat and the existing physical 20
43	43	boundaries of any such unit or common element. This presumption applies only to 21
44	44	encroachments within the condominium. 22
45	45
46	46	(b) If any portion of any common element encroaches on any unit or if any portion 23
47	47	of a unit encroaches on any common element or any other unit, as a result of the duly 24
48	48	authorized construction or repair of a building, a valid easement for the encroachment and 25 2 SENATE BILL 593
49	49
50	50
51	51	for the maintenance of the encroachment exists so long as the building stands. 1
52	52
53	53	(c) An easement for mutual support shall exist in the units and common 2
54	54	elements. 3
55	55
56	56	(d) The grant or other disposition of a condominium unit shall include and grant, 4
57	57	and be subject to, any easement arising under the provisions of this section without specific 5
58	58	or particular reference to the easement. 6
59	59
60	60	(e) (1) The council of unit owners or its authorized designee shall have an 7
61	61	irrevocable right and an easement to enter units to investigate damage or make repairs 8
62	62	when the investigation or repairs reasonably appear necessary for public safety or to 9
63	63	prevent damage to other portions of the condominium. 10
64	64
65	65	(2) Except in cases involving manifest danger to public safety or property, 11
66	66	the council of unit owners shall make a reasonable effort to give notice to the owner of any 12
67	67	unit to be entered for the purpose of investigation or repair. 13
68	68
69	69	(3) If damage is inflicted on the common elements or any unit through 14
70	70	which access is taken, the council of unit owners is liable for the prompt repair. 15
71	71
72	72	(4) An entry by the council of unit owners for the purposes specified in this 16
73	73	subsection may not be considered a trespass. 17
74	74
75	75	(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 18
76	76	SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to 19
77	77	grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 20
78	78	affecting the common elements of the condominium if the grant is approved by the 21
79	79	affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes, 22
80	80	and with the express written consent of the mortgagees holding an interest in those units 23
81	81	as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar 24
82	82	interest granted by the council of unit owners under this subsection shall state that the 25
83	83	grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the 26
84	84	votes, and by the corresponding mortgagees. 27
85	85
86	86	(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 28
87	87	SUBSECTION, THE board of directors may, by majority vote, grant easements, 29
88	88	rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of 30
89	89	utility services or communication systems for the exclusive benefit of units within the 31
90	90	condominium regime. These actions by the board of directors are subject to the following 32
91	91	requirements: 33
92	92
93	93	(i) The action shall be taken at a meeting of the board held after at 34
94	94	least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 35
95	95
96	96	(ii) At the meeting, the board may not act until all unit owners and 36 SENATE BILL 593 3
97	97
98	98
99	99	mortgagees shall be afforded a reasonable opportunity to present their views on the 1
100	100	proposed easement, right–of–way, license, lease, or similar interest; AND 2
101	101
102	102	(iii) The easement, right–of–way, license, lease, or similar interest 3
103	103	shall contain the following provisions: 4
104	104
105	105	1. The service or system shall be installed or affixed to the 5
106	106	premises at no cost to the individual unit owners or the council of unit owners other than 6
107	107	charges normally paid for like services by residents of similar or comparable dwelling units 7
108	108	within the same area; 8
109	109
110	110	2. The unit owners and council of unit owners shall be 9
111	111	indemnified for any damage arising out of the installation of the service or system; and 10
112	112
113	113	3. The board of directors shall be provided the right to 11
114	114	approve of the design for installation of the service or system in order to insure that the 12
115	115	installation conforms to any conditions which are reasonable to protect the safety, 13
116	116	functioning, and appearance of the premises. 14
117	117
118	118	(3) By majority vote, the board of directors may grant to the State 15
119	119	perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 16
120	120	affecting the common elements of the condominium for bulkhead construction, dune 17
121	121	construction or restoration, beach replenishment, or periodic maintenance and replacement 18
122	122	construction, on Maryland’s ocean beaches, including rights in the State to restrict access 19
123	123	to dune areas. These actions by the board of directors are subject to the following 20
124	124	requirements: 21
125	125
126	126	(i) The action shall be taken at a meeting of the board held after at 22
127	127	least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 23
128	128	and 24
129	129
130	130	(ii) At the meeting, the board may not act until all unit owners and 25
131	131	mortgagees shall be afforded a reasonable opportunity to present their views on the 26
132	132	proposed easement, right–of–way, license, lease, or similar interest. 27
133	133
134	134	(4) By majority vote, the board of directors may settle an eminent domain 28
135	135	proceeding or grant to the State or any county, municipality, or agency or instrumentality 29
136	136	thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases 30
137	137	in excess of 1 year, or similar interests affecting the common elements of the condominium 31
138	138	for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public 32
139	139	purposes. These actions by the board of directors are subject to the following requirements: 33
140	140
141	141	(i) The action shall be taken at a meeting of the board held after at 34
142	142	least 60–days’ notice to all unit owners and all first mortgagees listed with the 35
143	143	condominium; 36
144	144
145	145	(ii) The notice shall include information provided by the 37 4 SENATE BILL 593
146	146
147	147
148	148	condemnation authority that describes the purpose and the extent of the property being 1
149	149	acquired for public use; and 2
150	150
151	151	(iii) At the meeting, the board may not act until all unit owners and 3
152	152	mortgagees in attendance have been afforded a reasonable opportunity to present their 4
153	153	views on the proposed easement, right–of–way, license, lease, or similar interest. 5
154	154
155	155	(5) (I) 1. IN THIS PARAGRAPH “CLEAN ENERGY EQUIPME NT” 6
156	156	MEANS EQUIPMENT THAT CONTRIBUTES TO : 7
157	157
158	158	A. THE PRODUCTION OF ENE RGY FROM RENEWABLE O R 8
159	159	SUSTAINABLE SOURCES ; OR 9
160	160
161	161	B. THE IMPROVEMENT OF EF FICIENCY IN THE USE OF 10
162	162	ENERGY. 11
163	163
164	164	2. “CLEAN ENERGY EQUIPMEN T” INCLUDES ELECTRIC 12
165	165	VEHICLE RECHARGING E QUIPMENT AND SOLAR , GEOTHERMAL , OR OTHER 13
166	166	ENERGY–EFFICIENT EQUIPMENT USED FOR HEATING , COOLING, OR LIGHTING. 14
167	167
168	168	(II) SUBJECT TO SUB PARAGRAPH (III) OF THIS PARAGRAPH , 15
169	169	THE BOARD OF DIRECTO RS, BY A MAJORITY VOTE , OR THE COUNCIL OF UN IT 16
170	170	OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF 17
171	171	THE VOTES IN THE COU NCIL, MAY GRANT EASEMENTS , RIGHTS–OF–WAY, LICENSES, 18
172	172	LEASES IN EXCESS OF 1 YEAR, OR SIMILAR INTERESTS AFFECTING THE COMMON 19
173	173	ELEMENTS OF THE COND OMINIUM FOR THE INST ALLATION AND USE OF LEASED 20
174	174	CLEAN ENERGY EQUIPME NT. 21
175	175
176	176	(III) THE BOARD OF DIRECTOR S MAY GRANT AN INTER EST 22
177	177	UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AFTER AT LEAST 23
178	178	30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD . 24
179	179
180	180	(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT 25
181	181	OVERRULE A VOTE TO G RANT AN INTEREST UND ER THIS PARAGRAPH . 26
182	182
183	183	[(5)] (6) The action of the board of directors granting any easement, 27
184	184	right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this 28
185	185	subsection shall not be final until the following have occurred: 29
186	186
187	187	(i) Within 15 days after the vote by the board to grant an easement, 30
188	188	right–of–way, license, lease, or similar interest, a petition may be filed with the board of 31
189	189	directors signed by the unit owners having at least [15 percent] 15% of the votes calling 32
190	190	for a special meeting of unit owners to vote on the question of a disapproval of the action of 33
191	191	the board of directors granting such easement, right–of–way, license, lease, or similar 34
192	192	interest. If no such petition is received within 15 days, the decision of the board shall be 35 SENATE BILL 593 5
193	193
194	194
195	195	final; 1
196	196
197	197	(ii) If a qualifying petition is filed, a special meeting shall be held no 2
198	198	less than 15 days or more than 30 days from receipt of the petition. At the special meeting, 3
199	199	if a quorum is not present, the decision of the board of directors shall be final; 4
200	200
201	201	(iii) 1. If a special meeting is held and [50 percent] 50% of the 5
202	202	unit owners present and voting disapprove the grant, and the unit owners voting to 6
203	203	disapprove the grant are more than [33 percent] 33% of the total votes in the condominium, 7
204	204	then the grant shall be void; or 8
205	205
206	206	2. If the vote of the unit owners is not more than [33 percent] 9
207	207	33% of the total votes in the condominium, the decision of the board or council to make the 10
208	208	grant shall be final; 11
209	209
210	210	(iv) Mortgagees shall receive notice of and be entitled to attend and 12
211	211	speak at such special meeting; and 13
212	212
213	213	(v) Any easement, right–of–way, license, lease, or similar interest 14
214	214	granted by the board of directors under the provisions of this subsection shall state that 15
215	215	the grant was approved in accordance with the provisions of this subsection. 16
216	216
217	217	[(6)] (7) The provisions of this subsection are applicable to all 17
218	218	condominiums, regardless of the date they were established. 18
219	219
220	220	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
221	221	October 1, 2023. 20
222	222