EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0593*
SENATE BILL 593
N1, M5 3lr1772
CF HB 101
By: Senator Smith
Introduced and read first time: February 6, 2023
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Condominiums – Common Elements – Clean Energy Equipment 2
FOR the purpose of authorizing certain governing bodies of a condominium to grant an 3
interest affecting the common elements of the condominium for the installation and 4
use of leased clean energy equipment; and generally relating to the common 5
elements of a condominium and leased clean energy equipment. 6
BY repealing and reenacting, with amendments, 7
Article – Real Property 8
Section 11–125 9
Annotated Code of Maryland 10
(2015 Replacement Volume and 2022 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Real Property 14
11–125. 15
(a) The existing physical boundaries of any unit or common element constructed 16
or reconstructed in substantial conformity with the condominium plat shall be conclusively 17
presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement 18
of any building and regardless of minor variations between the physical boundaries as 19
described in the declaration or shown on the condominium plat and the existing physical 20
boundaries of any such unit or common element. This presumption applies only to 21
encroachments within the condominium. 22
(b) If any portion of any common element encroaches on any unit or if any portion 23
of a unit encroaches on any common element or any other unit, as a result of the duly 24
authorized construction or repair of a building, a valid easement for the encroachment and 25 2 SENATE BILL 593
for the maintenance of the encroachment exists so long as the building stands. 1
(c) An easement for mutual support shall exist in the units and common 2
elements. 3
(d) The grant or other disposition of a condominium unit shall include and grant, 4
and be subject to, any easement arising under the provisions of this section without specific 5
or particular reference to the easement. 6
(e) (1) The council of unit owners or its authorized designee shall have an 7
irrevocable right and an easement to enter units to investigate damage or make repairs 8
when the investigation or repairs reasonably appear necessary for public safety or to 9
prevent damage to other portions of the condominium. 10
(2) Except in cases involving manifest danger to public safety or property, 11
the council of unit owners shall make a reasonable effort to give notice to the owner of any 12
unit to be entered for the purpose of investigation or repair. 13
(3) If damage is inflicted on the common elements or any unit through 14
which access is taken, the council of unit owners is liable for the prompt repair. 15
(4) An entry by the council of unit owners for the purposes specified in this 16
subsection may not be considered a trespass. 17
(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 18
SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to 19
grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 20
affecting the common elements of the condominium if the grant is approved by the 21
affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes, 22
and with the express written consent of the mortgagees holding an interest in those units 23
as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar 24
interest granted by the council of unit owners under this subsection shall state that the 25
grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the 26
votes, and by the corresponding mortgagees. 27
(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 28
SUBSECTION, THE board of directors may, by majority vote, grant easements, 29
rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of 30
utility services or communication systems for the exclusive benefit of units within the 31
condominium regime. These actions by the board of directors are subject to the following 32
requirements: 33
(i) The action shall be taken at a meeting of the board held after at 34
least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 35
(ii) At the meeting, the board may not act until all unit owners and 36 SENATE BILL 593 3
mortgagees shall be afforded a reasonable opportunity to present their views on the 1
proposed easement, right–of–way, license, lease, or similar interest; AND 2
(iii) The easement, right–of–way, license, lease, or similar interest 3
shall contain the following provisions: 4
1. The service or system shall be installed or affixed to the 5
premises at no cost to the individual unit owners or the council of unit owners other than 6
charges normally paid for like services by residents of similar or comparable dwelling units 7
within the same area; 8
2. The unit owners and council of unit owners shall be 9
indemnified for any damage arising out of the installation of the service or system; and 10
3. The board of directors shall be provided the right to 11
approve of the design for installation of the service or system in order to insure that the 12
installation conforms to any conditions which are reasonable to protect the safety, 13
functioning, and appearance of the premises. 14
(3) By majority vote, the board of directors may grant to the State 15
perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 16
affecting the common elements of the condominium for bulkhead construction, dune 17
construction or restoration, beach replenishment, or periodic maintenance and replacement 18
construction, on Maryland’s ocean beaches, including rights in the State to restrict access 19
to dune areas. These actions by the board of directors are subject to the following 20
requirements: 21
(i) The action shall be taken at a meeting of the board held after at 22
least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 23
and 24
(ii) At the meeting, the board may not act until all unit owners and 25
mortgagees shall be afforded a reasonable opportunity to present their views on the 26
proposed easement, right–of–way, license, lease, or similar interest. 27
(4) By majority vote, the board of directors may settle an eminent domain 28
proceeding or grant to the State or any county, municipality, or agency or instrumentality 29
thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases 30
in excess of 1 year, or similar interests affecting the common elements of the condominium 31
for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public 32
purposes. These actions by the board of directors are subject to the following requirements: 33
(i) The action shall be taken at a meeting of the board held after at 34
least 60–days’ notice to all unit owners and all first mortgagees listed with the 35
condominium; 36
(ii) The notice shall include information provided by the 37 4 SENATE BILL 593
condemnation authority that describes the purpose and the extent of the property being 1
acquired for public use; and 2
(iii) At the meeting, the board may not act until all unit owners and 3
mortgagees in attendance have been afforded a reasonable opportunity to present their 4
views on the proposed easement, right–of–way, license, lease, or similar interest. 5
(5) (I) 1. IN THIS PARAGRAPH “CLEAN ENERGY EQUIPME NT” 6
MEANS EQUIPMENT THAT CONTRIBUTES TO : 7
A. THE PRODUCTION OF ENE RGY FROM RENEWABLE O R 8
SUSTAINABLE SOURCES ; OR 9
B. THE IMPROVEMENT OF EF FICIENCY IN THE USE OF 10
ENERGY. 11
2. “CLEAN ENERGY EQUIPMEN T” INCLUDES ELECTRIC 12
VEHICLE RECHARGING E QUIPMENT AND SOLAR , GEOTHERMAL , OR OTHER 13
ENERGY–EFFICIENT EQUIPMENT USED FOR HEATING , COOLING, OR LIGHTING. 14
(II) SUBJECT TO SUB PARAGRAPH (III) OF THIS PARAGRAPH , 15
THE BOARD OF DIRECTO RS, BY A MAJORITY VOTE , OR THE COUNCIL OF UN IT 16
OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF 17
THE VOTES IN THE COU NCIL, MAY GRANT EASEMENTS , RIGHTS–OF–WAY, LICENSES, 18
LEASES IN EXCESS OF 1 YEAR, OR SIMILAR INTERESTS AFFECTING THE COMMON 19
ELEMENTS OF THE COND OMINIUM FOR THE INST ALLATION AND USE OF LEASED 20
CLEAN ENERGY EQUIPME NT. 21
(III) THE BOARD OF DIRECTOR S MAY GRANT AN INTER EST 22
UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AFTER AT LEAST 23
30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD . 24
(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT 25
OVERRULE A VOTE TO G RANT AN INTEREST UND ER THIS PARAGRAPH . 26
[(5)] (6) The action of the board of directors granting any easement, 27
right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this 28
subsection shall not be final until the following have occurred: 29
(i) Within 15 days after the vote by the board to grant an easement, 30
right–of–way, license, lease, or similar interest, a petition may be filed with the board of 31
directors signed by the unit owners having at least [15 percent] 15% of the votes calling 32
for a special meeting of unit owners to vote on the question of a disapproval of the action of 33
the board of directors granting such easement, right–of–way, license, lease, or similar 34
interest. If no such petition is received within 15 days, the decision of the board shall be 35 SENATE BILL 593 5
final; 1
(ii) If a qualifying petition is filed, a special meeting shall be held no 2
less than 15 days or more than 30 days from receipt of the petition. At the special meeting, 3
if a quorum is not present, the decision of the board of directors shall be final; 4
(iii) 1. If a special meeting is held and [50 percent] 50% of the 5
unit owners present and voting disapprove the grant, and the unit owners voting to 6
disapprove the grant are more than [33 percent] 33% of the total votes in the condominium, 7
then the grant shall be void; or 8
2. If the vote of the unit owners is not more than [33 percent] 9
33% of the total votes in the condominium, the decision of the board or council to make the 10
grant shall be final; 11
(iv) Mortgagees shall receive notice of and be entitled to attend and 12
speak at such special meeting; and 13
(v) Any easement, right–of–way, license, lease, or similar interest 14
granted by the board of directors under the provisions of this subsection shall state that 15
the grant was approved in accordance with the provisions of this subsection. 16
[(6)] (7) The provisions of this subsection are applicable to all 17
condominiums, regardless of the date they were established. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2023. 20