EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0273* HOUSE BILL 273 C2, N1 4lr1117 HB 80/23 – ENT By: Delegate Holmes Introduced and read first time: January 12, 2024 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 (64) 20 to be Section 8–403(14) through (65), respectively 21 Annotated Code of Maryland 22 (2021 Replacement Volume and 2023 Supplement) 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 (2018 Replacement Volume and 2023 Supplement) 29 2 HOUSE BILL 273 BY adding to 1 Article – Business Regulation 2 Section 2–106.15, 2–106.16, and 2–108(a)(34) 3 Annotated Code of Maryland 4 (2015 Replacement Volume and 2023 Supplement) 5 BY adding to 6 Article – Corporations and Associations 7 Section 5–6B–12.1 8 Annotated Code of Maryland 9 (2014 Replacement Volume and 2023 Supplement) 10 BY adding to 11 Article – Real Property 12 Section 11–130.1 and 11B–115.2 13 Annotated Code of Maryland 14 (2023 Replacement Volume) 15 BY repealing and reenacting, without amendments, 16 Article – State Finance and Procurement 17 Section 6–226(a)(2)(i) 18 Annotated Code of Maryland 19 (2021 Replacement Volume and 2023 Supplement) 20 BY repealing and reenacting, with amendments, 21 Article – State Finance and Procurement 22 Section 6–226(a)(2)(ii)189. and 190. 23 Annotated Code of Maryland 24 (2021 Replacement Volume and 2023 Supplement) 25 BY adding to 26 Article – State Finance and Procurement 27 Section 6–226(a)(2)(ii)191. 28 Annotated Code of Maryland 29 (2021 Replacement Volume and 2023 Supplement) 30 BY adding to 31 Article – State Government 32 Section 8–403(13) 33 Annotated Code of Maryland 34 (2021 Replacement Volume and 2023 Supplement) 35 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 36 That Section(s) 8–403(13) through (64) of Article – State Government of the Annotated 37 Code of Maryland be renumbered to be Section(s) 8–403(14) through (65), respectively. 38 HOUSE BILL 273 3 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1 as follows: 2 Article – Business Occupations and Professions 3 TITLE 22. COMMON OWNERSHIP COMMUNITY MANAGERS. 4 SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 5 22–101. 6 (A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 7 INDICATED. 8 (B) “BOARD” MEANS THE STATE BOARD OF COMMON OWNERSHIP 9 COMMUNITY MANAGERS. 10 (C) (1) “COMMON OWNERSHIP COMM UNITY” MEANS: 11 (I) A CONDOMINIUM AS DEF INED IN § 11–101 OF THE REAL 12 PROPERTY ARTICLE THAT IS USED FOR RESIDENTIAL PURP OSES; 13 (II) A COOPERATIVE HOUSIN G CORPORATION AS DEF INED IN § 14 5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND 15 (III) A HOMEOWNERS ASSOCIA TION AS DEFINED IN § 11B–101 OF 16 THE REAL PROPERTY ARTICLE. 17 (2) “COMMON OWNERSHIP COMM UNITY” DOES NOT INCLUDE A 18 TIME–SHARE PROJECT AS DEF INED IN § 11A–101 OF THE REAL PROPERTY 19 ARTICLE. 20 (D) “LICENSE” MEANS, UNLESS THE CONTEXT R EQUIRES OTHERWISE , A 21 LICENSE ISSUED BY TH E BOARD UNDER SUBTITLE 3 OF THIS TITLE THAT ALLOWS 22 AN INDIVIDUAL TO PRO VIDE MANAGEMENT SERV ICES FOR A COMMON OW NERSHIP 23 COMMUNITY . 24 (E) “LICENSED ASSOCIATE CO MMUNITY MANAGER ” MEANS, UNLESS THE 25 CONTEXT REQUIRES OTH ERWISE, AN INDIVIDUAL WHO IS ISSUED A LIMITED 26 LICENSE BY THE BOARD UNDER SUBTITLE 4 OF THIS TITLE TO PRO VIDE 27 MANAGEMENT SERVICES FOR A COMMON OWNERSH IP COMMUNITY UNDER T HE 28 SUPERVISION OF A LIC ENSED COMMUNITY MANA GER. 29 (F) “LICENSED COMMUNITY MA NAGER” MEANS, UNLESS THE CONTEXT 30 REQUIRES OTHERWISE , AN INDIVIDUAL WHO IS ISSUED A LICEN SE BY THE BOARD 31 4 HOUSE BILL 273 UNDER SUBTITLE 3 OF THIS TITLE TO PROVIDE MANAGEMEN T SERVICES FOR A 1 COMMON OWNERSHIP COM MUNITY. 2 (G) “LIMITED LICENSE ” MEANS, UNLESS THE CONTEXT R EQUIRES 3 OTHERWISE, A LIMITED LICENSE IS SUED BY THE BOARD UNDER SUBTITLE 4 OF THIS 4 TITLE THAT ALLOWS THE INDIVIDUA L TO PROVIDE MANAGEM ENT SERVICES FOR A 5 COMMON OWNERSHIP COM MUNITY UNDER THE SUP ERVISION OF A LICENS ED 6 COMMUNITY MANAGER . 7 (H) “PROVIDE MANAGEMENT SE RVICES” MEANS: 8 (1) TO ACT WITH THE AUTH ORITY OF THE COMMON OWNERSHIP 9 COMMUNITY IN IT S BUSINESS, LEGAL, FINANCIAL, OR OTHER TRANSACTION S WITH 10 MEMBERS AND NONMEMBE RS OF THE COMMON OWN ERSHIP COMMUNITY ; 11 (2) TO EXECUTE THE RESOL UTIONS AND DECISIONS OF A COMMON 12 OWNERSHIP COMMUNITY ; 13 (3) TO ENFORCE THE RIGHT S OF THE COMMON OWNE RSHIP 14 COMMUNI TY SECURED BY STATUTE , CONTRACT, COVENANT, RULE, OR BYLAW WITH 15 THE AUTHORITY OF THE COMMON OWNERSHIP COM MUNITY; 16 (4) TO NEGOTIATE CONTRAC TS OR OTHERWISE COOR DINATE OR 17 ARRANGE FOR SERVICES OR THE PURCHASE OF P ROPERTY AND GOODS FO R OR ON 18 BEHALF OF A COMMON OWNERSHIP COMMUNITY ; 19 (5) TO COLLECT, DISBURSE, OR OTHERWISE EXERCIS E DOMINION OR 20 CONTROL OVER MONEY O R OTHER PROPERTY BEL ONGING TO A COMMON 21 OWNERSHIP COMMUNITY ; 22 (6) TO PREPARE BUDGETS , FINANCIAL STATEMENTS , OR OTHER 23 FINANCIAL REPORTS FO R A COMMON OW NERSHIP COMMUNITY ; 24 (7) TO ARRANGE , CONDUCT, OR COORDINATE MEETIN GS OF A 25 COMMON OWNERSHIP COM MUNITY OR THE GOVERN ING BODY OF A COMMON 26 OWNERSHIP COMMUNITY ; OR 27 (8) TO OFFER OR SOLICIT TO PERFORM ANY OF TH E ACTS OR 28 SERVICES LISTED IN I TEMS (1) THROUGH (7) OF THIS SUBSECTION O N BEHALF OF A 29 COMMON OWNERSHIP COM MUNITY. 30 (I) “RESPONSIBLE MANAGER ” MEANS A LICENSED COM MUNITY MANAGER 31 WHO HAS PRIMARY RESP ONSIBILITY FOR PROVI DING MANAGEMENT SERV ICES TO A 32 HOUSE BILL 273 5 COMMON OWNERSHIP COM MUNITY UNDER THE TER MS OF A CONTRACT ENTERED 1 INTO BY THE COMMON OWNERSHIP COMMUNITY . 2 22–102. 3 THE PROVISIONS OF THI S TITLE THAT REQUIRE AN INDIVIDUAL TO BE ISSUED 4 A LICENSE OR A LIMIT ED LICENSE DO NOT PROHIBIT: 5 (1) AN INDIVIDUAL WHO IS A REGULAR, SALARIED EMPLOYEE OF A 6 LICENSED COMMUNITY MANAGER OR A SINGLE COMMON OWNERSHIP COM MUNITY 7 FROM PERFORMING ADMI NISTRATIVE, INTERNAL, BOOKKEEPING , OR MINISTERIAL 8 FUNCTIONS IN SUPPORT OF THE LICENSED COMM UNITY MANAGER OR THE SINGLE 9 COMMON OWNERSHIP COM MUNITY; 10 (2) AN INDIVIDUAL WHO IS ADMINISTRATIV E SUPPORT STAFF OR A N 11 ASSISTANT OF A LICEN SED COMMUNITY MANAGE R FROM INCIDENTALLY PROVIDING 12 MANAGEMENT SERVICES IF THE INDIVIDUAL IS SUPERVISED BY A LICE NSED 13 COMMUNITY MANAGER ; 14 (3) A RESIDENT OF A COMM ON OWNERSHIP COMMUNI TY WHO ACTS 15 WITHOUT COMPENSATION FROM PROVIDING MANAG EMENT SERVICES FOR T HAT 16 COMMON OWNERSHIP COM MUNITY; 17 (4) A MEMBER OF THE GOVE RNING BODY OF A COMM ON OWNERSHIP 18 COMMUNITY WHO ACTS W ITHOUT COMPENSATION FROM PROVIDING MANAG EMENT 19 SERVICES FOR THAT CO MMON OWNERSHIP COMMU NITY; 20 (5) AN ATTORNEY AT LAW FROM REPRESENTING A COMMO N 21 OWNERSHIP COMMUNITY , A LICENSED COMMUNITY MANAGER, OR A LICENSED 22 ASSOCIATE COMMUNITY MANAGER IN ANY BUSINESS THAT CONSTITUTES THE 23 PRACTICE OF LAW ; 24 (6) AN INDIVIDUAL LICENS ED UNDER THIS ARTICL E AS A LICENSED 25 CERTIFIED PUBLIC ACCOUNT ANT, A LICENSED REAL ESTA TE BROKER , OR A 26 LICENSED ASSOCIATE R EAL ESTATE BROKER FROM PROVIDING TO A COMMON 27 OWNERSHIP COMMUNITY THE SERVICES FOR WHI CH THE INDIVIDUAL IS LICENSED; 28 (7) AN INDIVIDUAL WHO AC TS AS A RECEIVER OR TRUSTEE IN 29 BANKRUPTCY IN THE PER FORMANCE OF DUTIES O R AN INDIVIDUAL WHO ACTS 30 UNDER A COURT ORDER FROM PROVIDING MANAG EMENT SERVICES FOR A COMMON 31 OWNERSHIP COMMUNITY ; OR 32 6 HOUSE BILL 273 (8) AN INDIVIDUAL WHO IS AN EMPLOYEE OF A COM MON OWNERSHIP 1 COMMUNITY FROM PROVI DING MANAGEMENT S ERVICES 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 PRACTICE INCLUDES TH E REPRESENTATION OF 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 THE 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, 2024. 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 273 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 2025, 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 273 (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 TITLE; 4 (2) ESTABLISH CRITERIA A ND A PROCESS FOR CER TIFICATION 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 RESOLUTION 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 LIMITED LICENSE A ND ON RENEWAL OF THE LICENSE 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 273 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 OTHE R FEES FOR COMPARABL E 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 SUBJECT 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 A S ALLOWED BY LAW . 28 SUBTITLE 3. LICENSED COMMUNITY MANAGERS. 29 10 HOUSE BILL 273 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 FOR A COMMON OWNERSH IP COMMUNITY 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 LICENSE, AN APPLICANT MUST BE AN INDIVIDUAL 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) COMPLETE 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 LICENSE S HALL: 28 HOUSE BILL 273 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 APPLI CANT A NOTICE THAT S TATES 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 ISSUE A LICE NSE 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 STAT ES: 22 (I) THE DATE ON WHICH TH E CURRENT LICENSE EX PIRES; 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 273 (C) (1) THE BOARD SHALL RENEW THE LICENSE 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 INDI VIDUAL TO REAPPLY FO R 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 UNDER PARAGRAP H (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 SET BY THE 28 BOARD. 29 22–308. 30 HOUSE BILL 273 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 LICENS E UNDER THIS SECTION ONLY 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 AR E SUBSTANTIALLY EQUI VALENT TO THE REQUIR EMENTS 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 DENY A LICE NSE TO ANY APPLICANT , 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 LICENSED COMMUNIT Y 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 QUALIFIC ATIONS OF THE APPLIC ANT OR LICENSED COMM UNITY 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 DEALI NGS; 30 14 HOUSE BILL 273 (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 NEGLIGENCE , 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 PROV ISION 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 PE NALTY NOT EXCEEDING $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 273 15 (C) THE BOARD SHALL CONSIDER THE FOLLOWING FACTS IN THE 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 QUALIFICATION OF T HE APPLICANT OR LICE NSED 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 EVIDEN CE IN CONNECTION WIT H ANY 30 PROCEEDING UNDER THI S SECTION. 31 16 HOUSE BILL 273 (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 AGAIN ST WHOM THE ACTION I S 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 FULFILLMENT O F THE CONDITIONS OF THE SUSPENSION , 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 PROVI DE MANAGEMENT SERVIC ES AS A LICENSED 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 SUPERVISION OF A LIC ENSED COMMUNITY MANA GER. 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 273 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 APPLICATION 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 THAT 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 M ANAGER, 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 273 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 LICENSED ASSOCIA TE COMMUNITY 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 TH E 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 CERTIFICATE TO EACH LICENSED ASS OCIATE COMMUNITY MAN AGER 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 RE INSTATE 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 273 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 COMMUN ITY 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 F OR 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 QUALIFICATIONS O F THE APPLICANT OR L ICENSED ASSOCIATE 30 COMMUNITY MANAGER TO PROVIDE MANAGEMENT S ERVICES; 31 20 HOUSE BILL 273 (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 OW NERSHIP 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 DISC LOSE TO A COMMON OWN ERSHIP 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 S ERVICES; 16 (10) VIOLATES ANY OTHER P ROVISION OF THIS TIT LE; 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 LIMITED 21 LICENSE UNDER THIS S ECTION, 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 T HE VIOLATION; 27 (III) THE GOOD FAITH OF TH E LICENSED ASSOCIATE COMMUNITY 28 MANAGER; AND 29 HOUSE BILL 273 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 UNDER 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 ASSOCIATE COMMUNITY MANAGER 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 LIMITED LICENSE ; 13 (3) WITH RESPECT TO A FE LONY, 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 APPLI CANT OR LICENSED 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 UNDE R § 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 OPPORT UNITY FOR A HEARING 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 273 (C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH ANY 1 PROCEEDING UNDER THIS 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 THE 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 T HE 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 COM MUNITY. 29 22–502. 30 HOUSE BILL 273 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 OWN ERSHIP 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 OWNERSHIP COM MUNITY; 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 PROV IDE MANAGEMENT SERVI CES 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 INS URANCE FOR WHICH PRO OF 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 273 (II) THE HIGHEST AGGREGAT E AMOUNT OF THE OPER ATING 1 AND RESERVE BALANCES OF ALL COMMON OWNERSH IP COMMUNITIES UNDER 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 PARTY 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 INDIVID UAL 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 MAN AGER SHALL DEPOSIT ALL MO NEY 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 OWNERS HIP COMMUNITY SHALL 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 TH E 30 LICENSED COMMUNITY M ANAGER OR ANOTHER COMMON OW NERSHIP COMMUNITY . 31 HOUSE BILL 273 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 INSTITUTIO N 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 VIOLATES A NY 8 PROVISION OF THIS SE CTION IS GUILTY OF A MISDEMEANOR AND ON C ONVICTION 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 PRO VIDE MANAGEMENT SERV ICES, 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 PRO VIDED 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 UNDER THIS TITLE TO PROVIDE MAN AGEMENT 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 273 (1) USE OR ATTEMPT TO US E THE LICENSE OR LIM ITED LICENSE 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 LIMIT ED 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 VIOLATES ANY PROVISION OF THI S 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 EX CEEDING $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 FAI TH OF THE VIOLATOR ; 27 (IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E VIOLATOR; 28 AND 29 HOUSE BILL 273 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 TITL E SHALL TERMINATE AN D BE OF NO EFFECT AF TER 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 COS TS OF FULFILLING THE STATUTORY AND REGULA TORY 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 273 (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 AC TUAL 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 ATTRIBUTABLE TO THE 27 BOARD. 28 HOUSE BILL 273 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 CORRESPONDI NG 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 WI TH 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 AN NUALLY 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 273 (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: 8 189. the Teacher Retention and Development Fund; [and] 9 190. the Protecting Against Hate Crimes Grant Fund; AND 10 191. THE STATE BOARD OF COMMON OWNERSHIP 11 COMMUNITY MANAGERS FUND. 12 Article – State Government 13 8–403. 14 This subtitle applies only to the following governmental activities and units: 15 (13) COMMON OWNERSHIP COMMUNITY MANAGERS, STATE BOARD 16 OF (§ 22–201 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE); 17 SECTION 3. AND BE IT FURTHER ENACTED, That the terms of the initial 18 members of the State Board of Common Ownership Community Managers shall expire as 19 follows: 20 (1) three members in 2027; 21 (2) three members in 2028; and 22 (3) three members in 2029. 23 SECTION 4. AND BE IT FURTHER ENACTED, That the State Board of Common 24 Ownership Community Managers, when adopting regulations concerning the training and 25 examination requirements for an applicant for a license or a limited license under this Act, 26 may take into consideration the following training and examination standards: 27 (1) for a limited license: 28 (i) courses that include topics such as: 29 HOUSE BILL 273 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 273 (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, 2026, 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 2024, 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, 2024, so that the functions of issuing licenses and limited licenses and 23 registering common ownership communities can be in place before October 1, 2025. 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, 2024. 29