Maryland 2024 Regular Session

Maryland House Bill HB273 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	hb0273
6	6
7	7	HOUSE BILL 273
8	8	C2, N1 4lr1117
9	9	HB 80/23 – ENT
10	10	By: Delegate Holmes
11	11	Introduced and read first time: January 12, 2024
12	12	Assigned to: Environment and Transportation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Real Property – Regulation of Common Ownership Community Managers 2
19	19
20	20	FOR the purpose of creating the State Board of Common Ownership Community Managers 3
21	21	in the Maryland Department of Labor to oversee the licensing of community 4
22	22	managers who provide management services for common ownership communities; 5
23	23	requiring a common ownership community to register with the Board under certain 6
24	24	circumstances; imposing certain duties on a contracting party concerning a fidelity 7
25	25	bond or theft insurance under certain circumstances; requiring a contract to provide 8
26	26	management services to include certain provisions; making certain provisions of this 9
27	27	Act subject to the Maryland Program Evaluation Act; establishing the State Board 10
28	28	of Common Ownership Community Managers Fund as a special, nonlapsing fund; 11
29	29	requiring that certain interest earnings be credited to the Fund; requiring the 12
30	30	Secretary of Labor, in consultation with the Board, to calculate certain costs 13
31	31	annually; authorizing the Department of Budget and Management to advance 14
32	32	certain funds to the Board and requiring the Board to reimburse certain funds under 15
33	33	certain circumstances; and generally relating to the regulation of common ownership 16
34	34	community managers. 17
35	35
36	36	BY renumbering 18
37	37	Article – State Government 19
38	38	Section 8–403(13) through (64) 20
39	39	to be Section 8–403(14) through (65), respectively 21
40	40	Annotated Code of Maryland 22
41	41	(2021 Replacement Volume and 2023 Supplement) 23
42	42
43	43	BY adding to 24
44	44	Article – Business Occupations and Professions 25
45	45	Section 22–101 through 22–802 to be under the new title “Title 22. Common 26
46	46	Ownership Community Managers” 27
47	47	Annotated Code of Maryland 28
48	48	(2018 Replacement Volume and 2023 Supplement) 29 2 HOUSE BILL 273
49	49
50	50
51	51
52	52	BY adding to 1
53	53	Article – Business Regulation 2
54	54	Section 2–106.15, 2–106.16, and 2–108(a)(34) 3
55	55	Annotated Code of Maryland 4
56	56	(2015 Replacement Volume and 2023 Supplement) 5
57	57
58	58	BY adding to 6
59	59	Article – Corporations and Associations 7
60	60	Section 5–6B–12.1 8
61	61	Annotated Code of Maryland 9
62	62	(2014 Replacement Volume and 2023 Supplement) 10
63	63
64	64	BY adding to 11
65	65	Article – Real Property 12
66	66	Section 11–130.1 and 11B–115.2 13
67	67	Annotated Code of Maryland 14
68	68	(2023 Replacement Volume) 15
69	69
70	70	BY repealing and reenacting, without amendments, 16
71	71	Article – State Finance and Procurement 17
72	72	Section 6–226(a)(2)(i) 18
73	73	Annotated Code of Maryland 19
74	74	(2021 Replacement Volume and 2023 Supplement) 20
75	75
76	76	BY repealing and reenacting, with amendments, 21
77	77	Article – State Finance and Procurement 22
78	78	Section 6–226(a)(2)(ii)189. and 190. 23
79	79	Annotated Code of Maryland 24
80	80	(2021 Replacement Volume and 2023 Supplement) 25
81	81
82	82	BY adding to 26
83	83	Article – State Finance and Procurement 27
84	84	Section 6–226(a)(2)(ii)191. 28
85	85	Annotated Code of Maryland 29
86	86	(2021 Replacement Volume and 2023 Supplement) 30
87	87
88	88	BY adding to 31
89	89	Article – State Government 32
90	90	Section 8–403(13) 33
91	91	Annotated Code of Maryland 34
92	92	(2021 Replacement Volume and 2023 Supplement) 35
93	93
94	94	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 36
95	95	That Section(s) 8–403(13) through (64) of Article – State Government of the Annotated 37
96	96	Code of Maryland be renumbered to be Section(s) 8–403(14) through (65), respectively. 38
97	97	HOUSE BILL 273 3
98	98
99	99
100	100	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
101	101	as follows: 2
102	102
103	103	Article – Business Occupations and Professions 3
104	104
105	105	TITLE 22. COMMON OWNERSHIP COMMUNITY MANAGERS. 4
106	106
107	107	SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 5
108	108
109	109	22–101. 6
110	110
111	111	(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 7
112	112	INDICATED. 8
113	113
114	114	(B) “BOARD” MEANS THE STATE BOARD OF COMMON OWNERSHIP 9
115	115	COMMUNITY MANAGERS. 10
116	116
117	117	(C) (1) “COMMON OWNERSHIP COMM UNITY” MEANS: 11
118	118
119	119	(I) A CONDOMINIUM AS DEF INED IN § 11–101 OF THE REAL 12
120	120	PROPERTY ARTICLE THAT IS USED FOR RESIDENTIAL PURP OSES; 13
121	121
122	122	(II) A COOPERATIVE HOUSIN G CORPORATION AS DEF INED IN § 14
123	123	5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND 15
124	124
125	125	(III) A HOMEOWNERS ASSOCIA TION AS DEFINED IN § 11B–101 OF 16
126	126	THE REAL PROPERTY ARTICLE. 17
127	127
128	128	(2) “COMMON OWNERSHIP COMM UNITY” DOES NOT INCLUDE A 18
129	129	TIME–SHARE PROJECT AS DEF INED IN § 11A–101 OF THE REAL PROPERTY 19
130	130	ARTICLE. 20
131	131
132	132	(D) “LICENSE” MEANS, UNLESS THE CONTEXT R EQUIRES OTHERWISE , A 21
133	133	LICENSE ISSUED BY TH E BOARD UNDER SUBTITLE 3 OF THIS TITLE THAT ALLOWS 22
134	134	AN INDIVIDUAL TO PRO VIDE MANAGEMENT SERV ICES FOR A COMMON OW NERSHIP 23
135	135	COMMUNITY . 24
136	136
137	137	(E) “LICENSED ASSOCIATE CO MMUNITY MANAGER ” MEANS, UNLESS THE 25
138	138	CONTEXT REQUIRES OTH ERWISE, AN INDIVIDUAL WHO IS ISSUED A LIMITED 26
139	139	LICENSE BY THE BOARD UNDER SUBTITLE 4 OF THIS TITLE TO PRO VIDE 27
140	140	MANAGEMENT SERVICES FOR A COMMON OWNERSH IP COMMUNITY UNDER T HE 28
141	141	SUPERVISION OF A LIC ENSED COMMUNITY MANA GER. 29
142	142
143	143	(F) “LICENSED COMMUNITY MA NAGER” MEANS, UNLESS THE CONTEXT 30
144	144	REQUIRES OTHERWISE , AN INDIVIDUAL WHO IS ISSUED A LICEN SE BY THE BOARD 31 4 HOUSE BILL 273
145	145
146	146
147	147	UNDER SUBTITLE 3 OF THIS TITLE TO PROVIDE MANAGEMEN T SERVICES FOR A 1
148	148	COMMON OWNERSHIP COM MUNITY. 2
149	149
150	150	(G) “LIMITED LICENSE ” MEANS, UNLESS THE CONTEXT R EQUIRES 3
151	151	OTHERWISE, A LIMITED LICENSE IS SUED BY THE BOARD UNDER SUBTITLE 4 OF THIS 4
152	152	TITLE THAT ALLOWS THE INDIVIDUA L TO PROVIDE MANAGEM ENT SERVICES FOR A 5
153	153	COMMON OWNERSHIP COM MUNITY UNDER THE SUP ERVISION OF A LICENS ED 6
154	154	COMMUNITY MANAGER . 7
155	155
156	156	(H) “PROVIDE MANAGEMENT SE RVICES” MEANS: 8
157	157
158	158	(1) TO ACT WITH THE AUTH ORITY OF THE COMMON OWNERSHIP 9
159	159	COMMUNITY IN IT S BUSINESS, LEGAL, FINANCIAL, OR OTHER TRANSACTION S WITH 10
160	160	MEMBERS AND NONMEMBE RS OF THE COMMON OWN ERSHIP COMMUNITY ; 11
161	161
162	162	(2) TO EXECUTE THE RESOL UTIONS AND DECISIONS OF A COMMON 12
163	163	OWNERSHIP COMMUNITY ; 13
164	164
165	165	(3) TO ENFORCE THE RIGHT S OF THE COMMON OWNE RSHIP 14
166	166	COMMUNI TY SECURED BY STATUTE , CONTRACT, COVENANT, RULE, OR BYLAW WITH 15
167	167	THE AUTHORITY OF THE COMMON OWNERSHIP COM MUNITY; 16
168	168
169	169	(4) TO NEGOTIATE CONTRAC TS OR OTHERWISE COOR DINATE OR 17
170	170	ARRANGE FOR SERVICES OR THE PURCHASE OF P ROPERTY AND GOODS FO R OR ON 18
171	171	BEHALF OF A COMMON OWNERSHIP COMMUNITY ; 19
172	172
173	173	(5) TO COLLECT, DISBURSE, OR OTHERWISE EXERCIS E DOMINION OR 20
174	174	CONTROL OVER MONEY O R OTHER PROPERTY BEL ONGING TO A COMMON 21
175	175	OWNERSHIP COMMUNITY ; 22
176	176
177	177	(6) TO PREPARE BUDGETS , FINANCIAL STATEMENTS , OR OTHER 23
178	178	FINANCIAL REPORTS FO R A COMMON OW NERSHIP COMMUNITY ; 24
179	179
180	180	(7) TO ARRANGE , CONDUCT, OR COORDINATE MEETIN GS OF A 25
181	181	COMMON OWNERSHIP COM MUNITY OR THE GOVERN ING BODY OF A COMMON 26
182	182	OWNERSHIP COMMUNITY ; OR 27
183	183
184	184	(8) TO OFFER OR SOLICIT TO PERFORM ANY OF TH E ACTS OR 28
185	185	SERVICES LISTED IN I TEMS (1) THROUGH (7) OF THIS SUBSECTION O N BEHALF OF A 29
186	186	COMMON OWNERSHIP COM MUNITY. 30
187	187
188	188	(I) “RESPONSIBLE MANAGER ” MEANS A LICENSED COM MUNITY MANAGER 31
189	189	WHO HAS PRIMARY RESP ONSIBILITY FOR PROVI DING MANAGEMENT SERV ICES TO A 32 HOUSE BILL 273 5
190	190
191	191
192	192	COMMON OWNERSHIP COM MUNITY UNDER THE TER MS OF A CONTRACT ENTERED 1
193	193	INTO BY THE COMMON OWNERSHIP COMMUNITY . 2
194	194
195	195	22–102. 3
196	196
197	197	THE PROVISIONS OF THI S TITLE THAT REQUIRE AN INDIVIDUAL TO BE ISSUED 4
198	198	A LICENSE OR A LIMIT ED LICENSE DO NOT PROHIBIT: 5
199	199
200	200	(1) AN INDIVIDUAL WHO IS A REGULAR, SALARIED EMPLOYEE OF A 6
201	201	LICENSED COMMUNITY MANAGER OR A SINGLE COMMON OWNERSHIP COM MUNITY 7
202	202	FROM PERFORMING ADMI NISTRATIVE, INTERNAL, BOOKKEEPING , OR MINISTERIAL 8
203	203	FUNCTIONS IN SUPPORT OF THE LICENSED COMM UNITY MANAGER OR THE SINGLE 9
204	204	COMMON OWNERSHIP COM MUNITY; 10
205	205
206	206	(2) AN INDIVIDUAL WHO IS ADMINISTRATIV E SUPPORT STAFF OR A N 11
207	207	ASSISTANT OF A LICEN SED COMMUNITY MANAGE R FROM INCIDENTALLY PROVIDING 12
208	208	MANAGEMENT SERVICES IF THE INDIVIDUAL IS SUPERVISED BY A LICE NSED 13
209	209	COMMUNITY MANAGER ; 14
210	210
211	211	(3) A RESIDENT OF A COMM ON OWNERSHIP COMMUNI TY WHO ACTS 15
212	212	WITHOUT COMPENSATION FROM PROVIDING MANAG EMENT SERVICES FOR T HAT 16
213	213	COMMON OWNERSHIP COM MUNITY; 17
214	214
215	215	(4) A MEMBER OF THE GOVE RNING BODY OF A COMM ON OWNERSHIP 18
216	216	COMMUNITY WHO ACTS W ITHOUT COMPENSATION FROM PROVIDING MANAG EMENT 19
217	217	SERVICES FOR THAT CO MMON OWNERSHIP COMMU NITY; 20
218	218
219	219	(5) AN ATTORNEY AT LAW FROM REPRESENTING A COMMO N 21
220	220	OWNERSHIP COMMUNITY , A LICENSED COMMUNITY MANAGER, OR A LICENSED 22
221	221	ASSOCIATE COMMUNITY MANAGER IN ANY BUSINESS THAT CONSTITUTES THE 23
222	222	PRACTICE OF LAW ; 24
223	223
224	224	(6) AN INDIVIDUAL LICENS ED UNDER THIS ARTICL E AS A LICENSED 25
225	225	CERTIFIED PUBLIC ACCOUNT ANT, A LICENSED REAL ESTA TE BROKER , OR A 26
226	226	LICENSED ASSOCIATE R EAL ESTATE BROKER FROM PROVIDING TO A COMMON 27
227	227	OWNERSHIP COMMUNITY THE SERVICES FOR WHI CH THE INDIVIDUAL IS LICENSED; 28
228	228
229	229	(7) AN INDIVIDUAL WHO AC TS AS A RECEIVER OR TRUSTEE IN 29
230	230	BANKRUPTCY IN THE PER FORMANCE OF DUTIES O R AN INDIVIDUAL WHO ACTS 30
231	231	UNDER A COURT ORDER FROM PROVIDING MANAG EMENT SERVICES FOR A COMMON 31
232	232	OWNERSHIP COMMUNITY ; OR 32
233	233	6 HOUSE BILL 273
234	234
235	235
236	236	(8) AN INDIVIDUAL WHO IS AN EMPLOYEE OF A COM MON OWNERSHIP 1
237	237	COMMUNITY FROM PROVI DING MANAGEMENT S ERVICES ONLY TO THAT COMMON 2
238	238	OWNERSHIP COMMUNITY OR TO AN AFFILIATED COMMON OWNERSHIP COM MUNITY. 3
239	239
240	240	SUBTITLE 2. STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS. 4
241	241
242	242	22–201. 5
243	243
244	244	THERE IS A STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS 6
245	245	IN THE DEPARTMENT . 7
246	246
247	247	22–202. 8
248	248
249	249	(A) (1) THE BOARD CONSISTS OF NIN E MEMBERS. 9
250	250
251	251	(2) OF THE NINE MEMBERS O F THE BOARD: 10
252	252
253	253	(I) FIVE SHALL BE LICENSED CO MMON OWNERSHIP 11
254	254	COMMUNITY MANAGERS ; 12
255	255
256	256	(II) ONE SHALL BE A LAWYE R, AS DEFINED IN § 10–101 OF THIS 13
257	257	ARTICLE, WHOSE PRIMARY PRACTICE INCLUDES TH E REPRESENTATION OF 14
258	258	COMMON OWNERSHIP COM MUNITIES; AND 15
259	259
260	260	(III) THREE SHALL BE RESIDENT OW NERS IN A COMMON 16
261	261	OWNERSHIP COMMUNITY . 17
262	262
263	263	(3) THE GOVERNOR SHALL APPOIN T THE MEMBERS WITH T HE 18
264	264	ADVICE OF THE SECRETARY AND THE ADV ICE AND CONSENT OF THE SENATE. 19
265	265
266	266	(B) EACH MEMBER OF THE BOARD MUST BE A RESID ENT OF THE STATE. 20
267	267
268	268	(C) BEFORE TAKING OFFICE , EACH APPOINTEE TO TH E BOARD SHALL TAKE 21
269	269	THE OATH REQUIRED BY ARTICLE I, § 9 OF THE MARYLAND CONSTITUTION. 22
270	270
271	271	(D) (1) THE TERM OF A MEMBER IS 4 YEARS AND BEGINS JULY 1. 23
272	272
273	273	(2) THE TERMS OF THE MEMB ERS ARE STAGGERED AS REQUIRED BY 24
274	274	THE TERMS PROVIDED F OR MEMBERS OF THE BOARD ON OCTOBER 1, 2024. 25
275	275
276	276	(3) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 26
277	277	A SUCCESSOR IS APPOI NTED AND QUALIFIES . 27
278	278	HOUSE BILL 273 7
279	279
280	280
281	281	(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 1
282	282	ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 2
283	283	QUALIFIES. 3
284	284
285	285	(5) A MEMBER MAY NOT SERVE MORE THAN TWO CONSEC UTIVE 4
286	286	TERMS. 5
287	287
288	288	(E) FOR FISCAL YEAR 2025, THE DEPARTMENT SHALL ALLO CATE NOT 6
289	289	MORE THAN $100,000 FOR THE ESTABLISHMEN T OF THE BOARD, INCLUDING 7
290	290	PERSONNEL EXPENSES . 8
291	291
292	292	22–203. 9
293	293
294	294	FROM AMONG THE MEMBER S OF THE BOARD, THE GOVERNOR SHALL 10
295	295	APPOINT A CHAIR AND A VICE CHAIR. 11
296	296
297	297	22–204. 12
298	298
299	299	(A) A MAJORITY OF THE MEMB ERS THEN SERVING ON THE BOARD IS A 13
300	300	QUORUM. 14
301	301
302	302	(B) THE BOARD SHALL DETERMINE THE TIMES AND PLACES OF ITS 15
303	303	MEETINGS. 16
304	304
305	305	(C) A MEMBER OF THE BOARD: 17
306	306
307	307	(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 18
308	308	BUT 19
309	309
310	310	(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 20
311	311	STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 21
312	312
313	313	(D) THE BOARD MAY EMPLOY STAF F IN ACCORDANCE WITH THE STATE 22
314	314	BUDGET. 23
315	315
316	316	22–205. 24
317	317
318	318	(A) IN ADDITION TO ANY PO WERS SET FORTH ELSEW HERE, THE BOARD 25
319	319	MAY: 26
320	320
321	321	(1) ADOPT BYLAWS AS NECE SSARY TO DO THE BUSI NESS OF THE 27
322	322	BOARD; AND 28
323	323
324	324	(2) ADOPT ANY REGULATION S TO CARRY OUT THIS TITLE. 29
325	325	8 HOUSE BILL 273
326	326
327	327
328	328	(B) IN ADDITION TO ANY DU TIES SET FORTH ELSEW HERE, THE BOARD 1
329	329	SHALL: 2
330	330
331	331	(1) ADOPT RULES OF PROFE SSIONAL CONDUCT AS A PPROPRIATE FOR 3
332	332	INDIVIDUALS ISSUED A LICENSE OR A LIMITED LICENSE UNDER THIS TITLE; 4
333	333
334	334	(2) ESTABLISH CRITERIA A ND A PROCESS FOR CER TIFICATION OF A 5
335	335	VARIETY OF EDUCATION AL OFFERINGS AND TRA INING PROGRAMS FOR ISSUING 6
336	336	LICENSES OR LIMITED LICENSES UNDER THIS TITLE; 7
337	337
338	338	(3) ESTABLISH CONTINUING EDUCATION REQUIREMEN TS FOR 8
339	339	INDIVIDUALS WHO HAVE BEEN ISSUED A LICENSE OR A LIMIT ED LICENSE UNDER 9
340	340	THIS TITLE; AND 10
341	341
342	342	(4) KEEP A RECORD OF ITS PROCEEDINGS . 11
343	343
344	344	(C) THE BOARD MAY ESTABLISH B Y REGULATION : 12
345	345
346	346	(1) THE PROCESS OF RESOL VING DISCIPLINARY MA TTERS PENDING 13
347	347	BEFORE THE BOARD THROUGH NONJUDI CIAL DISPUTE RESOLUTION PROCESSES; 14
348	348
349	349	(2) EDUCATION AND TRAINI NG OPPORTUNITIES FOR GOVERNING 15
350	350	BODIES OF COMMON OWN ERSHIP COMMUNITIES ; AND 16
351	351
352	352	(3) ANY OTHER PROCEDURES OR STANDARDS CONSIST ENT WITH THE 17
353	353	MISSION OF THE BOARD. 18
354	354
355	355	22–206. 19
356	356
357	357	(A) THE BOARD SHALL MAINTAIN A PUBLIC LIST OF THE NAMES AND 20
358	358	MAILING ADDRESSES OF ALL INDIVIDUALS ISSU ED A LICENSE OR A LI MITED 21
359	359	LICENSE UNDER THIS T ITLE. 22
360	360
361	361	(B) EACH INDIVIDUAL ISSUE D A LICENSE OR A LIM ITED LICENSE UNDER 23
362	362	THIS TITLE SHALL: 24
363	363
364	364	(1) DESIGNATE A MAILING ADDRESS AT THE TIME OF ISSUANCE OF 25
365	365	THE ORIGINAL LICENSE OR LIMITED LICENSE A ND ON RENEWAL OF THE LICENSE OR 26
366	366	LIMITED LICENSE ; AND 27
367	367
368	368	(2) NOTIFY THE BOARD OF A CHANGE OF ADDRESS WITHIN 30 DAYS 28
369	369	AFTER THE CHANGE . 29
370	370
371	371	22–207. 30 HOUSE BILL 273 9
372	372
373	373
374	374
375	375	(A) (1) THE BOARD MAY SET BY REGU LATION REASONABLE FE ES FOR ITS 1
376	376	SERVICES. 2
377	377
378	378	(2) THE FEES CHARGED SHAL L BE: 3
379	379
380	380	(I) SET SO AS TO PRODUCE FUNDS TO APPROXIMATE THE COST 4
381	381	OF MAINTAINING THE BOARD; 5
382	382
383	383	(II) BASED ON THE CALCULA TIONS PERFORMED BY T HE 6
384	384	SECRETARY UNDER § 2–106.16 OF THE BUSINESS REGULATION ARTICLE; AND 7
385	385
386	386	(III) CONSISTENT WITH OTHE R FEES FOR COMPARABL E 8
387	387	LICENSES ISSUED BY O THER BOARDS AND COMM ISSIONS IN THE STATE. 9
388	388
389	389	(B) THE BOARD SHALL PUBLISH T HE FEE SCHEDULE SET BY THE BOARD. 10
390	390
391	391	(C) (1) THE BOARD SHALL PAY ALL F EES COLLECTED UNDER THIS TITLE 11
392	392	TO THE COMPTROLLER. 12
393	393
394	394	(2) THE COMPTROLLER SHALL DIS TRIBUTE THE FEES TO THE STATE 13
395	395	BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS FUND ESTABLISHED 14
396	396	UNDER § 2–106.15 OF THE BUSINESS REGULATION ARTICLE. 15
397	397
398	398	22–208. 16
399	399
400	400	THE BOARD EXERCISES ITS P OWERS, DUTIES, AND FUNCTIONS SUBJECT TO 17
401	401	THE AUTHORITY OF THE SECRETARY. 18
402	402
403	403	22–209. 19
404	404
405	405	(A) IN ADDITION TO ANY OT HER REMEDY AUTHORIZE D UNDER THIS TITLE , 20
406	406	THE BOARD, WITH THE APPROVAL OF THE ATTORNEY GENERAL, MAY SUE IN THE 21
407	407	NAME OF THE STATE TO ENJOIN ANY ACT TH AT IS PROHIBITED UND ER SUBTITLE 7 22
408	408	OF THIS TITLE. 23
409	409
410	410	(B) THE BOARD MAY TAKE APPROP RIATE ACTIONS TO : 24
411	411
412	412	(1) ASSIST A COMMON OWNE RSHIP COMMUNITY IN E XERCISING ANY 25
413	413	RIGHTS OF THE COMMON OWNERSHIP COMMUNITY UNDER THIS TITLE ; OR 26
414	414
415	415	(2) ENTER INTO COOPERATI VE AND INFORMATION –SHARING 27
416	416	AGREEMENTS WITH ANY UNIT OF LAW ENFORCEMENT A S ALLOWED BY LAW . 28
417	417
418	418	SUBTITLE 3. LICENSED COMMUNITY MANAGERS. 29 10 HOUSE BILL 273
419	419
420	420
421	421
422	422	22–301. 1
423	423
424	424	(A) AN INDIVIDUAL MUST BE I SSUED A LICENSE BY THE BOARD BEFORE 2
425	425	THE INDIVIDUAL MAY P ROVIDE MANAGEMENT SE RVICES AS A LICENSED 3
426	426	COMMUNITY MANAGER FOR A COMMON OWNERSH IP COMMUNITY IN THE STATE. 4
427	427
428	428	(B) A LICENSED COMMUNITY M ANAGER MAY PROVIDE M ANAGEMENT 5
429	429	SERVICES FOR A COMMO N OWNERSHIP COMMUNIT Y ONLY UNDER THE TER MS OF A 6
430	430	CONTRACT ENTERED INT O BY THE COMMON OWNERSHIP COMMUNITY . 7
431	431
432	432	22–302. 8
433	433
434	434	(A) TO QUALIFY FOR A LICENSE, AN APPLICANT MUST BE AN INDIVIDUAL 9
435	435	WHO MEETS: 10
436	436
437	437	(1) THE REQUIREMENTS OF THIS SECTION; AND 11
438	438
439	439	(2) ANY OTHER QUALIFICAT ION AS REQUIRED BY R EGULATION OF 12
440	440	THE BOARD. 13
441	441
442	442	(B) AN APPLICANT MUST BE A LICENSED ASSOCIATE COMMUNITY 14
443	443	MANAGER. 15
444	444
445	445	(C) AN APPLICANT SHALL : 16
446	446
447	447	(1) COMPLETE A TRAINING PROGRAM APPROVED BY THE BOARD; AND 17
448	448
449	449	(2) PASS AN EXAMINATION APPROVED BY THE BOARD THAT 18
450	450	INCLUDES TESTING OF KNOWLEDGE OF STATE LAWS AND REGULA TIONS 19
451	451	CONCERNING COMMON OW NERSHIP COMMUNITIES . 20
452	452
453	453	(D) AN APPLICANT MUST: 21
454	454
455	455	(1) BE ACTIVELY ENGAGED IN PROVIDING MANAGEM ENT SERVICES 22
456	456	FOR AT LEAST 5 YEARS AS A LICENSED ASSOCIATE COMMUNITY MANAGER BEFORE 23
457	457	APPLYING FOR A LICEN SE; OR 24
458	458
459	459	(2) HOLD AN ACTIVE PROFE SSIONAL DESIGNATION AS APPROVED BY 25
460	460	THE BOARD. 26
461	461
462	462	22–303. 27
463	463
464	464	AN APPLICANT FOR A LICENSE S HALL: 28
465	465	HOUSE BILL 273 11
466	466
467	467
468	468	(1) SUBMIT TO THE BOARD AN APPLICATION ON THE FORM THAT THE 1
469	469	BOARD PROVIDES ; AND 2
470	470
471	471	(2) PAY TO THE BOARD AN APPLICATION FEE SET BY THE BOARD. 3
472	472
473	473	22–304. 4
474	474
475	475	(A) IF AN APPLICANT QUALI FIES FOR A LICENSE U NDER THIS SUBTITLE , 5
476	476	THE BOARD SHALL SEND THE APPLI CANT A NOTICE THAT S TATES THAT: 6
477	477
478	478	(1) THE APPLICANT HAS QU ALIFIED FOR A LICENS E; AND 7
479	479
480	480	(2) ON RECEIPT OF THE LI CENSE FEE SET BY THE BOARD, THE BOARD 8
481	481	WILL ISSUE A LICENSE TO THE APPLICANT . 9
482	482
483	483	(B) ON PAYMENT OF THE LIC ENSE FEE, THE BOARD SHALL ISSUE A LICE NSE 10
484	484	TO EACH APPLICANT WH O MEETS THE REQUIREM ENTS OF THIS SUBTITL E. 11
485	485
486	486	22–305. 12
487	487
488	488	WHILE IN EFFECT , A LICENSE AUTHORIZES THE LICENSED COMMUNI TY 13
489	489	MANAGER TO PROVIDE MANAGEMEN T SERVICES TO A COMM ON OWNERSHIP 14
490	490	COMMUNITY . 15
491	491
492	492	22–306. 16
493	493
494	494	(A) THE TERM OF A LICENSE IS 2 YEARS. 17
495	495
496	496	(B) AT LEAST 2 MONTHS BEFORE A LICE NSE EXPIRES, THE BOARD SHALL 18
497	497	SEND TO THE LICENSED COMMUNITY MANAGER , AT THE LAST KNOWN AD DRESS OF 19
498	498	THE LICENSED COMMUNI TY MANAGER: 20
499	499
500	500	(1) A RENEWAL APPLICATIO N FORM; AND 21
501	501
502	502	(2) A NOTICE THAT STAT ES: 22
503	503
504	504	(I) THE DATE ON WHICH TH E CURRENT LICENSE EX PIRES; 23
505	505
506	506	(II) THE DATE BY WHICH TH E BOARD MUST RECEIVE TH E 24
507	507	RENEWAL APPLICATION FOR THE RENEWAL TO B E ISSUED AND MAILED BEFORE THE 25
508	508	LICENSE EXPIRES ; AND 26
509	509
510	510	(III) THE AMOUNT OF THE RE NEWAL FEE. 27
511	511	12 HOUSE BILL 273
512	512
513	513
514	514	(C) (1) THE BOARD SHALL RENEW THE LICENSE OF AND ISSUE A 1
515	515	RENEWAL CERTIFICATE TO EACH LICENSED COM MUNITY MANAGER WHO MEETS THE 2
516	516	REQUIREMENTS OF THIS SECTION. 3
517	517
518	518	(2) THE BOARD SHALL INCLUDE O N EACH RENEWAL CERTI FICATE 4
519	519	THE DATE ON WHICH TH E CURRENT LICENSE EX PIRES. 5
520	520
521	521	22–307. 6
522	522
523	523	(A) THE BOARD SHALL REINSTATE THE LICENSE OF AN IN DIVIDUAL WHO 7
524	524	HAS FAILED TO RENEW THE LICENSE IF THE I NDIVIDUAL: 8
525	525
526	526	(1) APPLIES TO THE BOARD FOR REINSTATEME NT WITHIN 2 YEARS 9
527	527	AFTER THE LICENSE EX PIRES; 10
528	528
529	529	(2) MEETS THE RENEWAL RE QUIREMENTS OF § 22–306 OF THIS 11
530	530	SUBTITLE; AND 12
531	531
532	532	(3) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE BOARD. 13
533	533
534	534	(B) (1) IF AN INDIVIDUAL HAS FAILED TO RENEW A LI CENSE AND THEN 14
535	535	APPLIES TO THE BOARD FOR REINSTATEME NT MORE THAN 2 YEARS AFTER THE 15
536	536	LICENSE HAS EXPIRED , THE BOARD: 16
537	537
538	538	(I) MAY REQUIRE THE INDI VIDUAL TO REAPPLY FO R A LICENSE 17
539	539	IN THE SAME MANNER A S AN APPLICANT APPLI ES FOR A LICENSE UND ER THIS 18
540	540	SUBTITLE; OR 19
541	541
542	542	(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , MAY 20
543	543	REINSTATE THE LICENS E. 21
544	544
545	545	(2) THE BOARD MAY REINSTATE A LICENSE UNDER PARAGRAP H (1) 22
546	546	OF THIS SUBSECTION O NLY IF THE INDIVIDUA L: 23
547	547
548	548	(I) MEETS THE RENEWAL RE QUIREMENTS OF § 22–306 OF THIS 24
549	549	SUBTITLE; 25
550	550
551	551	(II) IF REQUIRED BY THE BOARD, STATES REASONS WHY 26
552	552	REINSTATEMENT SHOULD BE GRANTED; AND 27
553	553
554	554	(III) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE 28
555	555	BOARD. 29
556	556
557	557	22–308. 30 HOUSE BILL 273 13
558	558
559	559
560	560
561	561	(A) SUBJECT TO THE PROVIS IONS OF THIS SECTION , THE BOARD MAY ISSUE 1
562	562	BY RECIPROCITY A LIC ENSE TO AN INDIVIDUA L WHO HAS THE EQUIVA LENT LICENSE 2
563	563	IN ANOTHER STATE OR TERRITORY OF THE UNITED STATES. 3
564	564
565	565	(B) THE BOARD MAY ISSUE A LICENS E UNDER THIS SECTION ONLY IF THE 4
566	566	APPLICANT: 5
567	567
568	568	(1) PAYS TO THE BOARD A LICENSE FEE S ET BY THE BOARD; AND 6
569	569
570	570	(2) PROVIDES ADEQUATE EV IDENCE THAT AT THE T IME OF 7
571	571	APPLICATION FOR LICE NSURE UNDER THIS SEC TION THE APPLICANT H AS MET 8
572	572	REQUIREMENTS THAT AR E SUBSTANTIALLY EQUI VALENT TO THE REQUIR EMENTS 9
573	573	OF THE STATE. 10
574	574
575	575	(C) THE BOARD SHALL ESTABLISH STANDARDS FOR THE IS SUANCE OF A 11
576	576	LICENSE UNDER THIS S ECTION. 12
577	577
578	578	22–309. 13
579	579
580	580	(A) SUBJECT TO THE HEARIN G PROVISIONS OF § 22–311 OF THIS SUBTITLE, 14
581	581	THE BOARD MAY DENY A LICE NSE TO ANY APPLICANT , REPRIMAND ANY LICENS ED 15
582	582	COMMUNITY MANAGER , OR SUSPEND OR REVOKE A LICENSE IF THE APP LICANT OR 16
583	583	LICENSED COMMUNITY M ANAGER: 17
584	584
585	585	(1) FRAUDULENTLY OR DECE PTIVELY OBTAINS OR A TTEMPTS TO 18
586	586	OBTAIN A LICENSE FOR THE APPLICANT OR LICENSED COMMUNIT Y MANAGER OR 19
587	587	FOR ANOTHER ; 20
588	588
589	589	(2) FRAUDULENTLY OR DECE PTIVELY USES A LICEN SE; 21
590	590
591	591	(3) UNDER THE LAWS OF TH E UNITED STATES OR OF ANY STAT E, IS 22
592	592	CONVICTED OF : 23
593	593
594	594	(I) A FELONY; OR 24
595	595
596	596	(II) A MISDEMEANOR THAT I S DIRECTLY RELATED T O THE 25
597	597	FITNESS AND QUALIFIC ATIONS OF THE APPLIC ANT OR LICENSED COMM UNITY 26
598	598	MANAGER TO PROVIDE MANAGEMEN T SERVICES; 27
599	599
600	600	(4) ENGAGES IN CONDUCT T HAT DEMONSTRATES BAD FAITH, 28
601	601	INCOMPETENCY , OR UNTRUSTWORTHINESS OR THAT CONSTITUTES DISHONEST, 29
602	602	FRAUDULENT , OR IMPROPER DEALI NGS; 30
603	603	14 HOUSE BILL 273
604	604
605	605
606	606	(5) FAILS TO HANDLE THE FUNDS OF A COMMON OW NERSHIP 1
607	607	COMMUNITY IN ACCORDA NCE WITH THE PROVISI ONS OF THIS TITLE; 2
608	608
609	609	(6) FAILS TO ACCOUNT IN A TIMELY MANNER FOR ALL MONEY AND 3
610	610	PROPERTY RECEIVED ON BEHALF OF A COMMON O WNERSHIP COMMUNITY ; 4
611	611
612	612	(7) WILLFULLY FAILS TO DISCLOSE TO A COMMON OWNERSHIP 5
613	613	COMMUNITY MATERIAL F ACTS THAT RELATE TO THE PROPERTY OF THE COMMON 6
614	614	OWNERSHIP COMMUNITY OR CONCERN MANAGEMEN T SERVICES OF WHICH THE 7
615	615	LICENSED COMMUNITY M ANAGER HAS ACTUAL KNOWLEDGE ; 8
616	616
617	617	(8) IS GUILTY OF GROSS NEGLIGENCE , INCOMPETENCE THAT IS 9
618	618	PROVEN TO HAVE BEEN DETRIMENTAL TO A COM MON OWNERSHIP COMMUN ITY, OR 10
619	619	MISCONDUCT IN PROVID ING MANAGEMENT SERVI CES; 11
620	620
621	621	(9) HAS BEEN SANCTIONED IN ANOTHER STATE IN A MATTER 12
622	622	RELATING TO PROVIDIN G MANAGEMENT SERVICE S; 13
623	623
624	624	(10) VIOLATES ANY OTHER PROV ISION OF THIS TITLE; OR 14
625	625
626	626	(11) VIOLATES ANY REGULAT ION ADOPTED BY THE BOARD UNDER 15
627	627	THIS TITLE. 16
628	628
629	629	(B) (1) INSTEAD OF OR IN ADDI TION TO REPRIMANDING THE LICENSED 17
630	630	COMMUNITY MANAGER OR SUSPENDING OR REV OKING A LICENSE UNDE R THIS 18
631	631	SECTION, THE BOARD MAY IMPOSE A PE NALTY NOT EXCEEDING $5,000 FOR EACH 19
632	632	VIOLATION. 20
633	633
634	634	(2) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 21
635	635	THIS SUBSECTION , THE BOARD SHALL CONSIDER : 22
636	636
637	637	(I) THE SERIOUSNESS OF T HE VIOLATION; 23
638	638
639	639	(II) THE HARM CAUSED BY T HE VIOLATION; 24
640	640
641	641	(III) THE GOOD FAITH OF TH E LICENSED COMMUNITY MANAGER; 25
642	642	AND 26
643	643
644	644	(IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E LICENSED 27
645	645	COMMUNITY MANAGER . 28
646	646
647	647	(3) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 29
648	648	SUBSECTION INTO THE GENERAL FUND OF THE STATE. 30
649	649	HOUSE BILL 273 15
650	650
651	651
652	652	(C) THE BOARD SHALL CONSIDER THE FOLLOWING FACTS IN THE 1
653	653	GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A L ICENSE OR THE 2
654	654	REPRIMAND OF A LICEN SED COMMUNITY MANAGE R WHEN AN APPLICANT OR A 3
655	655	LICENSED COMMUNITY M ANAGER IS CONVICTED OF A FE LONY OR MISDEMEANOR 4
656	656	DESCRIBED IN SUBSECT ION (A)(3) OF THIS SECTION: 5
657	657
658	658	(1) THE NATURE OF THE CR IME; 6
659	659
660	660	(2) THE RELATIONSHIP OF THE CRIME TO THE ACT IVITIES 7
661	661	AUTHORIZED BY THE LI CENSE; 8
662	662
663	663	(3) WITH RESPECT TO A FE LONY, THE RELEVANCE OF THE 9
664	664	CONVICTION TO THE FI TNESS AND QUALIFICATION OF T HE APPLICANT OR LICE NSED 10
665	665	COMMUNITY MANAGER TO PROVIDE MANAGEMEN T SERVICES; 11
666	666
667	667	(4) THE LENGTH OF TIME S INCE THE CONVICTION ; AND 12
668	668
669	669	(5) THE BEHAVIOR AND ACT IVITIES OF THE APPLI CANT OR LICENSED 13
670	670	COMMUNITY MANAGER BEFORE AND AFTER THE CONVICTION. 14
671	671
672	672	22–310. 15
673	673
674	674	ON ITS OWN INITIATIVE OR ON A WRITTEN COMP LAINT MADE TO THE BOARD 16
675	675	BY ANY PERSON , THE BOARD MAY COMMENCE PR OCEEDINGS UNDER § 22–311 OF 17
676	676	THIS SUBTITLE. 18
677	677
678	678	22–311. 19
679	679
680	680	(A) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 20
681	681	GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES ANY FINAL ACTION UNDER § 21
682	682	22–309 OF THIS SUBTITLE , THE BOARD SHALL GIVE THE INDIVIDUAL AGAINST 22
683	683	WHOM THE ACTION IS C ONTEMPLATED AN OPPOR TUNITY FOR A HEARING BEFORE 23
684	684	THE BOARD. 24
685	685
686	686	(B) THE BOARD SHALL GIVE NOTI CE AND HOLD THE HEAR ING IN 25
687	687	ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 26
688	688
689	689	(C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH ANY 27
690	690	PROCEEDING UNDER THI S SECTION. 28
691	691
692	692	(D) (1) THE BOARD MAY ISSUE A SUB POENA FOR THE ATTEND ANCE OF A 29
693	693	WITNESS TO TESTIFY O R THE PRODUCTION OF EVIDEN CE IN CONNECTION WIT H ANY 30
694	694	PROCEEDING UNDER THI S SECTION. 31
695	695	16 HOUSE BILL 273
696	696
697	697
698	698	(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER 1
699	699	THIS SUBSECTION , ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 2
700	700	COMPLIANCE WITH THE SUBPOENA. 3
701	701
702	702	(E) IF, AFTER DUE NOTICE, THE INDIVIDUAL AGAIN ST WHOM THE ACTION I S 4
703	703	CONTEMPLATED FAILS O R REFUSES TO APPEAR , THE BOARD MAY HEAR AND 5
704	704	DETERMINE THE MATTER . 6
705	705
706	706	22–312. 7
707	707
708	708	ANY PERSON AGGRIEVED BY A FINAL DECISION OF THE BOARD IN A 8
709	709	CONTESTED CASE , AS DEFINED IN § 10–202 OF THE STATE GOVERNMENT ARTICLE, 9
710	710	IS ENTITLED TO JUDIC IAL REVIEW AS PROVID ED IN §§ 10–222 AND 10–223 OF THE 10
711	711	STATE GOVERNMENT ARTICLE. 11
712	712
713	713	22–313. 12
714	714
715	715	THE BOARD MAY REINSTATE , IN ACCORDANCE WITH T HE PROCEDURES OF 13
716	716	THE BOARD: 14
717	717
718	718	(1) A LICENSE THAT HAS B EEN REVOKED ; OR 15
719	719
720	720	(2) BEFORE FULFILLMENT O F THE CONDITIONS OF THE SUSPENSION , 16
721	721	ANY LICENSE THAT HAS BEEN SUSPENDED . 17
722	722
723	723	SUBTITLE 4. LICENSED ASSOCIATE COMMUNITY MANAGERS. 18
724	724
725	725	22–401. 19
726	726
727	727	(A) AN INDIVIDUAL MUST BE I SSUED A LIMITED LICE NSE BY THE BOARD 20
728	728	BEFORE THE INDIVIDUA L MAY PROVI DE MANAGEMENT SERVIC ES AS A LICENSED 21
729	729	ASSOCIATE COMMUNITY MANAGER FOR A COMMON OWNERSHIP COMMUNITY IN THE 22
730	730	STATE. 23
731	731
732	732	(B) A LICENSED ASSOCIATE C OMMUNITY MANAGER MAY PROVIDE 24
733	733	MANAGEMENT SERVICES FOR A COMMON OWNERSH IP COMMUNITY ONLY WH ILE 25
734	734	UNDER THE GENERAL SUPERVISION OF A LIC ENSED COMMUNITY MANA GER. 26
735	735
736	736	22–402. 27
737	737
738	738	(A) TO QUALIFY FOR A LIMI TED LICENSE, AN APPLICANT MUST BE AN 28
739	739	INDIVIDUAL WHO MEETS : 29
740	740
741	741	(1) THE REQUIREMENTS OF THIS SECTION; AND 30 HOUSE BILL 273 17
742	742
743	743
744	744
745	745	(2) ANY OTHER QUALIFICAT ION REQUIRED BY REGU LATION OF THE 1
746	746	BOARD. 2
747	747
748	748	(B) AN APPLICANT MUST BE AT LEAST 18 YEARS OLD. 3
749	749
750	750	(C) AN APPLICANT SHALL : 4
751	751
752	752	(1) COMPLETE A TRAINING PROGRAM APPROVED BY THE BOARD; AND 5
753	753
754	754	(2) PASS AN EXAMINATION APPROVED BY THE BOARD. 6
755	755
756	756	22–403. 7
757	757
758	758	AN APPLICANT FOR A LI MITED LICENSE SHALL: 8
759	759
760	760	(1) SUBMIT TO THE BOARD AN APPLICATION ON THE FORM THAT THE 9
761	761	BOARD PROVIDES ; AND 10
762	762
763	763	(2) PAY TO THE BOARD AN APPLICATION FEE SET BY THE BOARD. 11
764	764
765	765	22–404. 12
766	766
767	767	(A) IF AN APPLICANT QUALI FIES FOR A LIMITED L ICENSE UNDER THIS 13
768	768	SUBTITLE, THE BOARD SHALL SEND THE APPLICANT A NOTICE THAT STATES THAT : 14
769	769
770	770	(1) THE APPLICANT HAS QU ALIFIED FOR A LIMITE D LICENSE; AND 15
771	771
772	772	(2) ON RECEIPT OF THE LI MITED LICENSE FEE SE T BY THE BOARD, 16
773	773	THE BOARD WILL ISSUE A LIMITED LICE NSE IN THE NAME OF THE A PPLICANT. 17
774	774
775	775	(B) ON PAYMENT OF THE LIM ITED LICENSE FEE, THE BOARD SHALL ISSUE 18
776	776	A LIMITED LICENSE IN THE NAME OF EACH APPLICANT WH O MEETS THE 19
777	777	REQUIREMENTS OF THIS SUBTITLE. 20
778	778
779	779	(C) THE BOARD SHALL DELIVER A LIMITED LICENSE ISSU ED BY THE BOARD 21
780	780	TO THE LICENSED COMM UNITY MANAGER WHO WI LL BE SUPERVISING TH E 22
781	781	LICENSED ASSOCIATE COMMUNITY M ANAGER, AT THE ADDRESS OF TH E LICENSED 23
782	782	COMMUNITY MANAGER TH AT IS INDICATED IN T HE APPLICATION FOR A LIMITED 24
783	783	LICENSE. 25
784	784
785	785	22–405. 26
786	786
787	787	WHILE IN EFFECT , A LIMITED LICENSE AUTHORIZES THE LICEN SED 27
788	788	ASSOCIATE COMMUNITY MANAGER TO PROVIDE MANAGEMEN T SERVICES FOR A 28 18 HOUSE BILL 273
789	789
790	790
791	791	COMMON OWNERSHIP COM MUNITY ONLY WHILE UN DER THE GENERAL SUPE RVISION 1
792	792	OF A LICENSED COMMUN ITY MANAGER. 2
793	793
794	794	22–406. 3
795	795
796	796	(A) THE TERM OF A LIMITED LICENSE IS 2 YEARS. 4
797	797
798	798	(B) AT LEAST 2 MONTHS BEFORE A LIMI TED LICENSE EXPIRES, THE BOARD 5
799	799	SHALL SEND TO THE LICENSED ASSOCIA TE COMMUNITY MANAGER , AT THE LAST 6
800	800	KNOWN ADDRESS OF THE LICENSED ASSOCIATE C OMMUNITY MANAGER : 7
801	801
802	802	(1) A RENEWAL APPLICATIO N FORM; AND 8
803	803
804	804	(2) A NOTICE THAT STATES : 9
805	805
806	806	(I) THE DATE ON WHICH TH E CURRENT LIMITED LI CENSE 10
807	807	EXPIRES; 11
808	808
809	809	(II) THE DATE BY WHICH TH E BOARD MUST RECEIVE TH E 12
810	810	RENEWAL APPLICATION FOR THE RENEWAL TO B E ISSUED AND MAILED BEFORE THE 13
811	811	LIMITED LICENSE EXPIRES; AND 14
812	812
813	813	(III) THE AMOUNT OF THE RE NEWAL FEE. 15
814	814
815	815	(C) (1) THE BOARD SHALL RENEW THE LIMITED LICENSE OF A ND ISSUE 16
816	816	A RENEWAL CERTIFICATE TO EACH LICENSED ASS OCIATE COMMUNITY MAN AGER 17
817	817	WHO MEETS THE REQUIR EMENTS OF THIS SECTI ON. 18
818	818
819	819	(2) THE BOARD SHALL INCLUDE O N EACH RENEWAL CERTI FICATE 19
820	820	THE DATE ON WHICH TH E CURRENT LIMITED LI CENSE EXPIRES. 20
821	821
822	822	22–407. 21
823	823
824	824	(A) THE BOARD SHALL RE INSTATE THE LIMITED LICENSE OF AN 22
825	825	INDIVIDUAL WHO HAS F AILED TO RENEW THE L IMITED LICENSE IF THE INDIVIDUAL: 23
826	826
827	827	(1) APPLIES TO THE BOARD FOR REINSTATEME NT WITHIN 2 YEARS 24
828	828	AFTER THE LIMITED LI CENSE EXPIRES; 25
829	829
830	830	(2) MEETS THE RENEWAL RE QUIREMENTS OF § 22–406 OF THIS 26
831	831	SUBTITLE; AND 27
832	832
833	833	(3) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE BOARD. 28
834	834	HOUSE BILL 273 19
835	835
836	836
837	837	(B) (1) IF AN INDIVIDUAL HAS FAILED TO RENEW A LI MITED LICENSE AND 1
838	838	THEN APPLIES TO THE BOARD FOR REINSTATEME NT MORE THAN 2 YEARS AFTER 2
839	839	THE LIMITED LICENSE HAS EXPIRED, THE BOARD: 3
840	840
841	841	(I) MAY REQUIRE THE INDI VIDUAL TO REAPPLY FO R A LIMITED 4
842	842	LICENSE IN THE SAME MANNER A S AN APPLICANT APPLI ES FOR AN ORIGINAL 5
843	843	LIMITED LICENSE UNDER THIS SUBTITLE ; OR 6
844	844
845	845	(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , MAY 7
846	846	REINSTATE THE LIMITE D LICENSE. 8
847	847
848	848	(2) THE BOARD MAY REINSTATE A LIMITED LICENSE UNDER 9
849	849	PARAGRAPH (1) OF THIS SUBSECTION O NLY IF THE INDIVIDUA L: 10
850	850
851	851	(I) MEETS THE RENEWAL RE QUIREMENTS OF § 22–406 OF THIS 11
852	852	SUBTITLE; 12
853	853
854	854	(II) IF REQUIRED BY THE BOARD, STATES REASONS WHY 13
855	855	REINSTATEMENT SHOULD BE GRANTED; AND 14
856	856
857	857	(III) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE 15
858	858	BOARD. 16
859	859
860	860	22–408. 17
861	861
862	862	(A) SUBJECT TO THE HEARIN G PROVISIONS OF § 22–410 OF THIS SUBTITLE, 18
863	863	THE BOARD MAY DENY A LIMI TED LICENSE TO ANY A PPLICANT, REPRIMAND ANY 19
864	864	LICENSED ASSOCIATE COMMUN ITY MANAGER, OR SUSPEND OR REVOKE A LIMITED 20
865	865	LICENSE IF THE APPLI CANT OR LICENSED ASS OCIATE COMMUNITY MAN AGER: 21
866	866
867	867	(1) FRAUDULENTLY OR DECE PTIVELY OBTAINS OR A TTEMPTS TO 22
868	868	OBTAIN A LIMITED LIC ENSE FOR THE APPLICA NT OR LICENSED ASSOC IATE 23
869	869	COMMUNITY MANAGER OR F OR ANOTHER ; 24
870	870
871	871	(2) FRAUDULENTLY OR DECE PTIVELY USES A LIMIT ED LICENSE; 25
872	872
873	873	(3) UNDER THE LAWS OF TH E UNITED STATES OR OF ANY STAT E, IS 26
874	874	CONVICTED OF : 27
875	875
876	876	(I) A FELONY; OR 28
877	877
878	878	(II) A MISDEMEANOR THAT I S DIRECTLY RELATED T O THE 29
879	879	FITNESS AND QUALIFICATIONS O F THE APPLICANT OR L ICENSED ASSOCIATE 30
880	880	COMMUNITY MANAGER TO PROVIDE MANAGEMENT S ERVICES; 31 20 HOUSE BILL 273
881	881
882	882
883	883
884	884	(4) ENGAGES IN CONDUCT T HAT DEMONSTRATES BAD FAITH, 1
885	885	INCOMPETENCY , OR UNTRUSTWORTHINESS OR THAT CONSTITUTES DISHONEST, 2
886	886	FRAUDULENT , OR IMPROPER DEALINGS; 3
887	887
888	888	(5) FAILS TO HANDLE THE FUNDS OF A COMMON OW NERSHIP 4
889	889	COMMUNITY IN ACCORDA NCE WITH THE PROVISI ONS OF THIS TITLE; 5
890	890
891	891	(6) FAILS TO ACCOUNT IN A TIMELY MANNER FOR ALL MONEY AND 6
892	892	PROPERTY RECEIVED ON BEHALF OF A COMMON O WNERSHIP COMMUNITY ; 7
893	893
894	894	(7) WILLFULLY FAILS TO DISC LOSE TO A COMMON OWN ERSHIP 8
895	895	COMMUNITY MATERIAL F ACTS THAT RELATE TO THE PROPERTY OF THE COMMON 9
896	896	OWNERSHIP COMMUNITY OR CONCERN MANAGEMEN T SERVICES OF WHICH THE 10
897	897	LICENSED ASSOCIATE C OMMUNITY MANAGER HAS ACTUAL KNOWLEDGE ; 11
898	898
899	899	(8) IS GUILTY OF GROSS N EGLIGENCE, INCOMPETENCE THAT IS 12
900	900	PROVEN TO HAVE BEEN DETRIMENTAL TO A COM MON OWNERSHIP COMMUN ITY, OR 13
901	901	MISCONDUCT IN PROVID ING MANAGEMENT SERVI CES; 14
902	902
903	903	(9) HAS BEEN SANCTIONED IN ANOTHER STATE IN A MATTER 15
904	904	RELATING TO PROVIDIN G MANAGEMENT S ERVICES; 16
905	905
906	906	(10) VIOLATES ANY OTHER P ROVISION OF THIS TIT LE; OR 17
907	907
908	908	(11) VIOLATES ANY REGULAT ION ADOPTED BY THE BOARD UNDER 18
909	909	THIS TITLE. 19
910	910
911	911	(B) (1) INSTEAD OF OR IN ADDI TION TO REPRIMANDING THE LICENSED 20
912	912	ASSOCIATE COMMUNITY MANAGER OR SUSPENDIN G OR REVOKING A LIMITED 21
913	913	LICENSE UNDER THIS S ECTION, THE BOARD MAY IMPOSE A PE NALTY NOT 22
914	914	EXCEEDING $5,000 FOR EACH VIOLATION . 23
915	915
916	916	(2) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 24
917	917	THIS SUBSECTION , THE BOARD SHALL CONSIDER : 25
918	918
919	919	(I) THE SERIOUSNESS OF T HE VIOLATION; 26
920	920
921	921	(II) THE HARM CAUSED BY T HE VIOLATION; 27
922	922
923	923	(III) THE GOOD FAITH OF TH E LICENSED ASSOCIATE COMMUNITY 28
924	924	MANAGER; AND 29
925	925	HOUSE BILL 273 21
926	926
927	927
928	928	(IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E LICENSED 1
929	929	ASSOCIATE COMMUNITY MANAGER. 2
930	930
931	931	(3) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UNDER THIS 3
932	932	SUBSECTION INTO THE GENERAL FUND OF THE STATE. 4
933	933
934	934	(C) THE BOARD SHALL CONSIDER THE FOLLOWING FACTS IN THE 5
935	935	GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A L IMITED 6
936	936	LICENSE OR THE REPRI MAND OF A LICENSED A SSOCIATE COMMUNITY M ANAGER 7
937	937	WHEN AN APPLICANT OR A LICENSED ASSOCIATE COMMUNITY MANAGER IS 8
938	938	CONVICTED OF A FELON Y OR MISDEMEANOR DES CRIBED IN SUBSECTION (A)(3) OF 9
939	939	THIS SECTION: 10
940	940
941	941	(1) THE NATURE OF THE CR IME; 11
942	942
943	943	(2) THE RELATIONSHIP OF THE CRIME TO THE ACT IVITIES 12
944	944	AUTHORIZED BY THE LIMITED LICENSE ; 13
945	945
946	946	(3) WITH RESPECT TO A FE LONY, THE RELEVANCE OF THE 14
947	947	CONVICTION TO THE FI TNESS AND QUALIFICAT ION OF THE APPLICANT OR LICENSED 15
948	948	ASSOCIATE COMMUNITY MANAGER TO PROVIDE M ANAGEMENT SERVICES ; 16
949	949
950	950	(4) THE LENGTH OF TIME S INCE THE CONVICTION ; AND 17
951	951
952	952	(5) THE BEHAVIOR AND ACT IVITIES OF THE APPLI CANT OR LICENSED 18
953	953	ASSOCIATE COMMUNITY MANAGER BEFORE AND A FTER THE CONVICTION . 19
954	954
955	955	22–409. 20
956	956
957	957	ON ITS OWN INITIATIVE OR ON A WRITTEN COMP LAINT MADE TO THE BOARD 21
958	958	BY ANY PERSON , THE BOARD MAY COMMENCE PR OCEEDINGS UNDE R § 22–410 OF 22
959	959	THIS SUBTITLE. 23
960	960
961	961	22–410. 24
962	962
963	963	(A) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 25
964	964	GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES ANY FINAL ACTION UNDER § 26
965	965	22–408 OF THIS SUBTITLE , THE BOARD SHALL GIVE THE INDIVIDUAL AGAINST 27
966	966	WHOM THE ACTION IS C ONTEMPLATED AN OPPORT UNITY FOR A HEARING BEFORE 28
967	967	THE BOARD. 29
968	968
969	969	(B) THE BOARD SHALL GIVE NOTI CE AND HOLD THE HEAR ING IN 30
970	970	ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 31
971	971	22 HOUSE BILL 273
972	972
973	973
974	974	(C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH ANY 1
975	975	PROCEEDING UNDER THIS SECTION . 2
976	976
977	977	(D) (1) THE BOARD MAY ISSUE A SUB POENA FOR THE ATTEND ANCE OF A 3
978	978	WITNESS TO TESTIFY O R THE PRODUCTION OF EVIDENCE IN CONNECTI ON WITH ANY 4
979	979	PROCEEDING UNDER THI S SECTION. 5
980	980
981	981	(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER 6
982	982	THIS SUBSECTION, ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 7
983	983	COMPLIANCE WITH THE SUBPOENA. 8
984	984
985	985	(E) IF, AFTER DUE NOTICE , THE INDIVIDUAL AGAIN ST WHOM THE ACTION I S 9
986	986	CONTEMPLATED FAILS O R REFUSES TO APPEAR , THE BOARD MAY HEAR AND 10
987	987	DETERMINE THE MATTER . 11
988	988
989	989	22–411. 12
990	990
991	991	ANY PERSON AGGRIEVED BY A FINAL DECISION OF THE BOARD IN A 13
992	992	CONTESTED CASE , AS DEFINED IN § 10–202 OF THE STATE GOVERNMENT ARTICLE, 14
993	993	IS ENTITLED TO JUDIC IAL REVIEW AS PROVID ED IN §§ 10–222 AND 10–223 OF THE 15
994	994	STATE GOVERNMENT ARTICLE. 16
995	995
996	996	22–412. 17
997	997
998	998	THE BOARD MAY REINSTATE , IN ACCORDANCE WITH T HE PROCEDURES OF 18
999	999	THE BOARD: 19
1000	1000
1001	1001	(1) A LIMITED LICENSE TH AT HAS BEEN REVOKED ; OR 20
1002	1002
1003	1003	(2) BEFORE FULFILLMENT O F THE CONDITIONS OF THE SUSPENSION , 21
1004	1004	ANY LIMITED LICENSE THAT HAS BEEN SUSPEN DED. 22
1005	1005
1006	1006	SUBTITLE 5. REGISTRATION OF COMMON OWNERSHIP COMMUNITIES . 23
1007	1007
1008	1008	22–501. 24
1009	1009
1010	1010	(A) ON OR BEFORE JANUARY 1 EACH YEAR , A COMMON OWNERSHIP 25
1011	1011	COMMUNITY SHALL REGISTER WITH THE BOARD. 26
1012	1012
1013	1013	(B) IF A COMMON OWNERSHIP COMMUNITY CONTRACTS FOR MANAGEMENT 27
1014	1014	SERVICES, THE RESPONSIBLE MANA GER SHALL BE RESPONS IBLE FOR THE 28
1015	1015	REGISTRATION OF THE COMMON OWNERSHIP COM MUNITY. 29
1016	1016
1017	1017	22–502. 30 HOUSE BILL 273 23
1018	1018
1019	1019
1020	1020
1021	1021	EACH COMMON OWNERSHIP COMMUNITY SHALL PROV IDE THE BOARD THE 1
1022	1022	FOLLOWING INFORMATIO N: 2
1023	1023
1024	1024	(1) THE NAME AND ADDRESS OF THE COMMON OWNERS HIP 3
1025	1025	COMMUNITY ; 4
1026	1026
1027	1027	(2) THE COUNTY IN WHICH THE COMMON OWN ERSHIP COMMUNITY IS 5
1028	1028	LOCATED; 6
1029	1029
1030	1030	(3) THE NAME AND CONTACT INFORMATION OF EACH OFFICER AND 7
1031	1031	MEMBER OF THE BOARD OF DIRECTORS OR GOVE RNING BODY OF THE CO MMON 8
1032	1032	OWNERSHIP COMMUNITY ; 9
1033	1033
1034	1034	(4) THE NAME AND ADDRESS OF THE LICENSED COMM UNITY 10
1035	1035	MANAGER, IF ANY, FOR THE COMMON OWNERSHIP COM MUNITY; AND 11
1036	1036
1037	1037	(5) ANY OTHER INFORMATIO N REQUIRED BY THE BOARD. 12
1038	1038
1039	1039	SUBTITLE 6. MISCELLANEOUS PROVISIONS. 13
1040	1040
1041	1041	22–601. 14
1042	1042
1043	1043	(A) IN THIS SECTION , “CONTRACTING PARTY ” MEANS A LICENSED 15
1044	1044	COMMUNITY MANAGER OR A PERSON UNDER THE D IRECTION OF A LICENS ED 16
1045	1045	COMMUNITY MANAGER TH AT CONTRACTS TO PROV IDE MANAGEMENT SERVI CES FOR 17
1046	1046	A COMMON OWNERSHIP C OMMUNITY. 18
1047	1047
1048	1048	(B) A CONTRACTING PARTY SHALL FILE WITH THE SECRETARY PROOF AS 19
1049	1049	REQUIRED BY THE BOARD OF A FIDELITY B OND OR THEFT INSURAN CE, OR OTHER 20
1050	1050	COMPARABLE WRITTEN I NSURANCE AS REQUIRED BY THE BOARD, THAT COVERS: 21
1051	1051
1052	1052	(1) ANY PERSON THAT PROV IDES MANAGEMENT SERV ICES FOR A 22
1053	1053	COMMON OWNERSHIP COM MUNITY UNDER THE TER MS OF A CONTRACT ; AND 23
1054	1054
1055	1055	(2) ANY INDIVIDUAL WORKI NG UNDER THE DIRECTI ON OF A PERSON 24
1056	1056	DESCRIBED IN ITEM (1) OF THIS SUBSECTION. 25
1057	1057
1058	1058	(C) (1) A FIDELITY BOND OR INS URANCE FOR WHICH PRO OF IS FILED 26
1059	1059	UNDER THIS SECTION S HALL PROVIDE COVERAG E IN AN AMOUNT EQUAL TO THE 27
1060	1060	LESSER OF: 28
1061	1061
1062	1062	(I) $2,000,000; OR 29
1063	1063	24 HOUSE BILL 273
1064	1064
1065	1065
1066	1066	(II) THE HIGHEST AGGREGAT E AMOUNT OF THE OPER ATING 1
1067	1067	AND RESERVE BALANCES OF ALL COMMON OWNERSH IP COMMUNITIES UNDER 2
1068	1068	CONTRACT WITH THE CO NTRACTING PARTY IN THE PRIOR 3 MONTHS. 3
1069	1069
1070	1070	(2) THE TOTAL LIABILITY O F THE INSURANCE TO A LL INSURED 4
1071	1071	PERSONS UNDER A FIDE LITY BOND OR INSURAN CE MAY NOT EXCEED TH E SUM OF 5
1072	1072	THE FIDELITY BOND OR INSURANCE. 6
1073	1073
1074	1074	(3) THE SECRETARY, OR THE SECRETARY’S DESIGNEE, SHALL BE 7
1075	1075	NAMED AS A CERTIFICA TE HOLDER FOR ANY FI DELITY BOND OR INSUR ANCE 8
1076	1076	REQUIRED UNDER THIS SECTION. 9
1077	1077
1078	1078	(D) IF THE FIDELITY BOND OR INSURANCE IS CANC ELED, FORFEITED, OR 10
1079	1079	TERMINATED , THE CONTRACTING PARTY IMMEDIATELY SHALL NO TIFY THE 11
1080	1080	SECRETARY. 12
1081	1081
1082	1082	(E) IF THE FIDELITY BOND OR INSURANCE IS CANC ELED, FORFEITED, OR 13
1083	1083	TERMINATED , OR THE CONTRACTING P ARTY FAILS TO NOTIFY THE SECRETARY OF 14
1084	1084	ANY CHANGE TO THE FI DELITY BOND OR INSUR ANCE, THE SECRETARY: 15
1085	1085
1086	1086	(1) SHALL SUSPEND ANY LI CENSE OF ANY INDIVID UAL PROVIDING 16
1087	1087	MANAGEMENT SERVICES COVERED BY THE FIDEL ITY BOND OR INSURANC E; AND 17
1088	1088
1089	1089	(2) MAY NOT REINSTATE A LICENSE UNTIL PROOF OF COMPLIANCE 18
1090	1090	WITH THIS SECTION IS PROVIDED TO THE SECRETARY. 19
1091	1091
1092	1092	22–602. 20
1093	1093
1094	1094	(A) A LICENSED COMMUNITY MAN AGER SHALL DEPOSIT ALL MO NEY 21
1095	1095	RECEIVED IN CONNECTI ON WITH THE PROVISIO N OF MANAGEMENT SERV ICES IN 22
1096	1096	ONE OR MORE OF THE F INANCIAL INSTITUTION ACCOUNTS OF A COMMON 23
1097	1097	OWNERSHIP COMMUNITY . 24
1098	1098
1099	1099	(B) A LICENSED COMMUNITY M ANAGER WHO PROVIDES MANAGEM ENT 25
1100	1100	SERVICES FOR MORE TH AN ONE COMMON OWNERS HIP COMMUNITY SHALL 26
1101	1101	MAINTAIN SEPARATE FI NANCIAL INSTITUTION ACCOUNTS FOR EACH CO MMON 27
1102	1102	OWNERSHIP COMMUNITY . 28
1103	1103
1104	1104	(C) THE FUNDS IN EACH FIN ANCIAL INSTITUTION A CCOUNT OF A COMMON 29
1105	1105	OWNERSHIP COMMUNITY MAY NOT BE COMMINGLE D WITH THE FUNDS OF TH E 30
1106	1106	LICENSED COMMUNITY M ANAGER OR ANOTHER COMMON OW NERSHIP COMMUNITY . 31
1107	1107	HOUSE BILL 273 25
1108	1108
1109	1109
1110	1110	(D) THE MAINTENANCE OF FI NANCIAL INSTITUTION ACCOUNTS BY A 1
1111	1111	LICENSED COMMUNITY M ANAGER SHALL BE CUSTODIAL A ND PROVIDED IN THE 2
1112	1112	NAME OF THE COMMON O WNERSHIP COMMUNITY . 3
1113	1113
1114	1114	(E) THE RECORDS OF EACH FINANCIAL INSTITUTIO N ACCOUNT OF A 4
1115	1115	COMMON OWNERSHIP COM MUNITY SHALL BE ACCESSIBLE FOR REVIE W DIRECTLY 5
1116	1116	FROM THE FINANCIAL I NSTITUTION TO THE GO VERNING BODY OF THE COMMON 6
1117	1117	OWNERSHIP COMMUNITY . 7
1118	1118
1119	1119	(F) A LICENSED COMMUNITY M ANAGER WHO WILLFULLY VIOLATES A NY 8
1120	1120	PROVISION OF THIS SE CTION IS GUILTY OF A MISDEMEANOR AND ON C ONVICTION IS 9
1121	1121	SUBJECT TO A FINE NO T EXCEEDING $25,000 OR IMPRISONMENT NOT EXCEEDING 5 10
1122	1122	YEARS OR BOTH . 11
1123	1123
1124	1124	22–603. 12
1125	1125
1126	1126	IF A COMMON OWNERSHIP COMMUNITY CONTRACTS WITH A PERSON OTHER 13
1127	1127	THAN A LICENSED COMM UNITY MANAGER TO PRO VIDE MANAGEMENT SERV ICES, 14
1128	1128	THE CONTRACT SHALL R EQUIRE THAT ONLY A L ICENSED COMMUNITY MA NAGER 15
1129	1129	PROVIDE THE MANAGEME NT SERVICES FOR THE COMMON OWNERSHIP COMMUNITY . 16
1130	1130
1131	1131	SUBTITLE 7. PROHIBITED ACTS; PENALTIES. 17
1132	1132
1133	1133	22–701. 18
1134	1134
1135	1135	EXCEPT AS OTHERWISE PRO VIDED IN THIS TITLE , AN INDIVIDUAL MAY NO T 19
1136	1136	PROVIDE, ATTEMPT TO PROVIDE , OR OFFER TO PROVIDE MANAGEMENT SERVICES 20
1137	1137	FOR A COMMON OWNERSHIP C OMMUNITY IN THE STATE UNLESS ISSUED A LICENSE 21
1138	1138	OR A LIMITED LICENSE BY THE BOARD. 22
1139	1139
1140	1140	22–702. 23
1141	1141
1142	1142	UNLESS AUTHORIZED UNDER THIS TITLE TO PROVIDE MAN AGEMENT 24
1143	1143	SERVICES TO A COMMON OWNERSHIP COMMUNITY , A PERSON MAY NOT REP RESENT 25
1144	1144	TO THE PUBLIC BY USE OF A TITLE, INCLUDING “LICENSED COMMUNITY M ANAGER”, 26
1145	1145	“LICENSED ASSOCIATE C OMMUNITY MANAGER ”, OR “COMMON OWNERSHIP 27
1146	1146	COMMUNITY MANAGEMENT ”, BY USE OF AN ABBREVIATION , BY DESCRIPTION OF 28
1147	1147	SERVICES, METHODS, OR PROCEDURES , OR OTHERWISE THAT TH E PERSON IS 29
1148	1148	AUTHORIZED TO PROVID E MANAGEMENT SERVICE S FOR A COMMON OWNERSHIP 30
1149	1149	COMMUNITY IN THE STATE. 31
1150	1150
1151	1151	22–703. 32
1152	1152
1153	1153	AN INDIVIDUAL MAY NOT : 33 26 HOUSE BILL 273
1154	1154
1155	1155
1156	1156
1157	1157	(1) USE OR ATTEMPT TO US E THE LICENSE OR LIM ITED LICENSE OF 1
1158	1158	ANOTHER INDIVIDUAL ; OR 2
1159	1159
1160	1160	(2) IMPERSONATE ANOTHER INDIVIDUAL WHO HOLDS A LICENSE OR 3
1161	1161	A LIMITED LICENSE . 4
1162	1162
1163	1163	22–704. 5
1164	1164
1165	1165	AN INDIVIDUAL MAY NOT GIVE FALSE INFORMATI ON TO THE BOARD IN AN 6
1166	1166	ATTEMPT TO OBTAIN A LICENSE OR A LIMIT ED LICENSE. 7
1167	1167
1168	1168	22–705. 8
1169	1169
1170	1170	AN INDIVIDUAL WHOSE L ICENSE OR LIMITED LI CENSE HAS BEEN SUSPENDED 9
1171	1171	OR REVOKED UNDER THI S TITLE MAY NOT PROV IDE MANAGEMENT SERVI CES FOR A 10
1172	1172	COMMON OWNERSHIP COM MUNITY IN ANY MANNER AS: 11
1173	1173
1174	1174	(1) AN ASSOCIATE , AN AGENT, AN EMPLOYEE , OR ANY OTHER 12
1175	1175	SUBORDINATE OF A LIC ENSED COMMUNITY MANA GER; OR 13
1176	1176
1177	1177	(2) A PRINCIPAL, AN ASSOCIATE, AN AGENT, AN EMPLOYEE , OR ANY 14
1178	1178	OTHER SUBORDINATE OF A CORPORATION , PARTNERSHIP , OR LIMITED LIABILITY 15
1179	1179	COMPANY THAT PROVIDE S MANAGEMENT SERVICE S. 16
1180	1180
1181	1181	22–706. 17
1182	1182
1183	1183	(A) A PERSON THAT VIOLATES ANY PROVISION OF THI S TITLE IS GUILTY OF 18
1184	1184	A MISDEMEANOR AND ON CONVICTION IS SUBJEC T TO A FINE NOT EXCE EDING 19
1185	1185	$5,000 OR IMPRISONMENT NOT EXCEEDING 3 YEARS OR BOTH . 20
1186	1186
1187	1187	(B) (1) THE BOARD MAY IMPOSE ON A PERSON THAT VIOLATES ANY 21
1188	1188	PROVISION OF THIS TI TLE A PENALTY NOT EX CEEDING $5,000 FOR EACH VIOLATION . 22
1189	1189
1190	1190	(2) IN SETTING THE AMOUNT OF THE PENALTY , THE BOARD SHALL 23
1191	1191	CONSIDER: 24
1192	1192
1193	1193	(I) THE SERIOUSNESS OF T HE VIOLATION; 25
1194	1194
1195	1195	(II) THE HARM CAUSED BY T HE VIOLATION; 26
1196	1196
1197	1197	(III) THE GOOD FAI TH OF THE VIOLATOR ; 27
1198	1198
1199	1199	(IV) ANY HISTORY OF PREVI OUS VIOLATIONS BY TH E VIOLATOR; 28
1200	1200	AND 29 HOUSE BILL 273 27
1201	1201
1202	1202
1203	1203
1204	1204	(V) ANY OTHER RELEVANT F ACTORS. 1
1205	1205
1206	1206	(C) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 2
1207	1207	SECTION INTO THE GENERAL FUND OF THE STATE. 3
1208	1208
1209	1209	SUBTITLE 8. SHORT TITLE; TERMINATION OF TITLE. 4
1210	1210
1211	1211	22–801. 5
1212	1212
1213	1213	THIS TITLE MAY BE CIT ED AS THE MARYLAND COMMON OWNERSHIP 6
1214	1214	COMMUNITY MANAGERS ACT. 7
1215	1215
1216	1216	22–802. 8
1217	1217
1218	1218	SUBJECT TO THE EVALUA TION AND REESTABLISH MENT PROVISIONS OF T HE 9
1219	1219	MARYLAND PROGRAM EVALUATION ACT, THIS TITLE AND ALL REGULATIONS 10
1220	1220	ADOPTED UNDER THIS TITL E SHALL TERMINATE AN D BE OF NO EFFECT AF TER JULY 11
1221	1221	1, 2030. 12
1222	1222
1223	1223	Article – Business Regulation 13
1224	1224
1225	1225	2–106.15. 14
1226	1226
1227	1227	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 15
1228	1228	INDICATED. 16
1229	1229
1230	1230	(2) “BOARD” MEANS THE STATE BOARD OF COMMON OWNERSHIP 17
1231	1231	COMMUNITY MANAGERS. 18
1232	1232
1233	1233	(3) “FUND” MEANS THE STATE BOARD OF COMMON OWNERSHIP 19
1234	1234	COMMUNITY MANAGERS FUND. 20
1235	1235
1236	1236	(B) THERE IS A STATE BOARD OF COMMON OWNERSHIP COMMUNITY 21
1237	1237	MANAGERS FUND IN THE DEPARTMENT . 22
1238	1238
1239	1239	(C) THE PURPOSE OF THE FUND IS TO COVER THE ACTUAL DOCUMENTED 23
1240	1240	DIRECT AND INDIRECT COS TS OF FULFILLING THE STATUTORY AND REGULA TORY 24
1241	1241	DUTIES OF THE BOARD. 25
1242	1242
1243	1243	(D) THE SECRETARY OR THE SECRETARY’S DESIGNEE SHALL ADM INISTER 26
1244	1244	THE FUND. 27
1245	1245
1246	1246	(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 28
1247	1247	SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 29 28 HOUSE BILL 273
1248	1248
1249	1249
1250	1250
1251	1251	(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 1
1252	1252	AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
1253	1253
1254	1254	(F) THE FUND CONSISTS OF : 3
1255	1255
1256	1256	(1) FEES COLLECTED BY TH E BOARD AND DISTRIBUTED TO THE 4
1257	1257	FUND UNDER § 22–207 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 5
1258	1258	ARTICLE; 6
1259	1259
1260	1260	(2) INTEREST EARNINGS OF THE FUND; 7
1261	1261
1262	1262	(3) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 8
1263	1263
1264	1264	(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 9
1265	1265	THE BENEFIT OF THE FUND. 10
1266	1266
1267	1267	(G) THE FUND MAY BE USED ONLY TO COVER THE AC TUAL DOCUMENTED 11
1268	1268	DIRECT AND INDIRECT COSTS OF FULFILLING THE STATUTORY AND RE GULATORY 12
1269	1269	DUTIES OF THE BOARD. 13
1270	1270
1271	1271	(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 14
1272	1272	IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 15
1273	1273
1274	1274	(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 16
1275	1275	THE FUND. 17
1276	1276
1277	1277	(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 18
1278	1278	WITH THE STATE BUDGET . 19
1279	1279
1280	1280	(J) THE LEGISLATIVE AUDITOR SHALL AUDIT T HE ACCOUNTS AND 20
1281	1281	TRANSACTIONS OF THE FUND, AS PROVIDED IN § 2–1220 OF THE STATE 21
1282	1282	GOVERNMENT ARTICLE. 22
1283	1283
1284	1284	2–106.16. 23
1285	1285
1286	1286	(A) IN THIS SECTION , “BOARD” MEANS THE STATE BOARD OF COMMON 24
1287	1287	OWNERSHIP COMMUNITY MANAGERS. 25
1288	1288
1289	1289	(B) IN CONSULTATION WITH THE BOARD, THE SECRETARY SHALL 26
1290	1290	CALCULATE ANNUALLY T HE DIRECT AND INDIRE CT COSTS ATTRIBUTABLE TO THE 27
1291	1291	BOARD. 28
1292	1292	HOUSE BILL 273 29
1293	1293
1294	1294
1295	1295	(C) THE BOARD SHALL ESTABLISH FEES BASED ON THE CA LCULATIONS 1
1296	1296	PROVIDED BY THE SECRETARY UNDER THIS SECTION. 2
1297	1297
1298	1298	(D) EACH FEE ESTABLISHED BY THE BOARD MAY NOT BE INCR EASED 3
1299	1299	ANNUALLY BY MORE THA N 12.5% OF THE EXISTING AND CORRESPONDI NG FEE OF 4
1300	1300	THE BOARD. 5
1301	1301
1302	1302	2–108. 6
1303	1303
1304	1304	(a) The following units are in the Department: 7
1305	1305
1306	1306	(34) THE STATE BOARD OF COMMON OWNERSHIP COMMUNITY 8
1307	1307	MANAGERS. 9
1308	1308
1309	1309	Article – Corporations and Associations 10
1310	1310
1311	1311	5–6B–12.1. 11
1312	1312
1313	1313	A COOPERATIVE HOUSING CORPORATION SHALL RE GISTER ANNUALLY WITH 12
1314	1314	THE STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS IN THE 13
1315	1315	MARYLAND DEPARTMENT OF LABOR AS REQUIRED UND ER TITLE 22, SUBTITLE 5 14
1316	1316	OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 15
1317	1317
1318	1318	Article – Real Property 16
1319	1319
1320	1320	11–130.1. 17
1321	1321
1322	1322	A CONDOMINIUM THAT IS USED FOR RESIDENTIAL PURPOSES SHALL 18
1323	1323	REGISTER ANNUALLY WI TH THE STATE BOARD OF COMMON OWNERSHIP 19
1324	1324	COMMUNITY MANAGERS IN THE MARYLAND DEPARTMENT OF LABOR AS REQUIRED 20
1325	1325	UNDER TITLE 22, SUBTITLE 5 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 21
1326	1326	ARTICLE. 22
1327	1327
1328	1328	11B–115.2. 23
1329	1329
1330	1330	A HOMEOWNERS ASSOCIATI ON SHALL REGISTER AN NUALLY WITH THE STATE 24
1331	1331	BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS IN THE MARYLAND 25
1332	1332	DEPARTMENT OF LABOR AS REQUIRED UND ER TITLE 22, SUBTITLE 5 OF THE 26
1333	1333	BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 27
1334	1334
1335	1335	Article – State Finance and Procurement 28
1336	1336
1337	1337	6–226. 29
1338	1338	30 HOUSE BILL 273
1339	1339
1340	1340
1341	1341	(a) (2) (i) Notwithstanding any other provision of law, and unless 1
1342	1342	inconsistent with a federal law, grant agreement, or other federal requirement or with the 2
1343	1343	terms of a gift or settlement agreement, net interest on all State money allocated by the 3
1344	1344	State Treasurer under this section to special funds or accounts, and otherwise entitled to 4
1345	1345	receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 5
1346	1346	Fund of the State. 6
1347	1347
1348	1348	(ii) The provisions of subparagraph (i) of this paragraph do not apply 7
1349	1349	to the following funds: 8
1350	1350
1351	1351	189. the Teacher Retention and Development Fund; [and] 9
1352	1352
1353	1353	190. the Protecting Against Hate Crimes Grant Fund; AND 10
1354	1354
1355	1355	191. THE STATE BOARD OF COMMON OWNERSHIP 11
1356	1356	COMMUNITY MANAGERS FUND. 12
1357	1357
1358	1358	Article – State Government 13
1359	1359
1360	1360	8–403. 14
1361	1361
1362	1362	This subtitle applies only to the following governmental activities and units: 15
1363	1363
1364	1364	(13) COMMON OWNERSHIP COMMUNITY MANAGERS, STATE BOARD 16
1365	1365	OF (§ 22–201 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE); 17
1366	1366
1367	1367	SECTION 3. AND BE IT FURTHER ENACTED, That the terms of the initial 18
1368	1368	members of the State Board of Common Ownership Community Managers shall expire as 19
1369	1369	follows: 20
1370	1370
1371	1371	(1) three members in 2027; 21
1372	1372
1373	1373	(2) three members in 2028; and 22
1374	1374
1375	1375	(3) three members in 2029. 23
1376	1376
1377	1377	SECTION 4. AND BE IT FURTHER ENACTED, That the State Board of Common 24
1378	1378	Ownership Community Managers, when adopting regulations concerning the training and 25
1379	1379	examination requirements for an applicant for a license or a limited license under this Act, 26
1380	1380	may take into consideration the following training and examination standards: 27
1381	1381
1382	1382	(1) for a limited license: 28
1383	1383
1384	1384	(i) courses that include topics such as: 29
1385	1385	HOUSE BILL 273 31
1386	1386
1387	1387
1388	1388	1. the responsibilities of managers and members of 1
1389	1389	community governing bodies; 2
1390	1390
1391	1391	2. management ethics; 3
1392	1392
1393	1393	3. community rules; 4
1394	1394
1395	1395	4. community meetings and other communications; 5
1396	1396
1397	1397	5. assessments collections; 6
1398	1398
1399	1399	6. financial management; 7
1400	1400
1401	1401	7. risk management; 8
1402	1402
1403	1403	8. facilities management; and 9
1404	1404
1405	1405	9. personnel management; and 10
1406	1406
1407	1407	(ii) examinations that may be in a classroom or online; and 11
1408	1408
1409	1409	(2) for a license: 12
1410	1410
1411	1411	(i) courses that include topics such as: 13
1412	1412
1413	1413	1. high–rise maintenance and management; 14
1414	1414
1415	1415	2. advanced insurance and risk management; 15
1416	1416
1417	1417	3. management of large–scale communities; 16
1418	1418
1419	1419	4. legal considerations in community management; and 17
1420	1420
1421	1421	5. contemporary issues in community management; and 18
1422	1422
1423	1423	(ii) examinations that include a case study of an existing common 19
1424	1424	ownership community. 20
1425	1425
1426	1426	SECTION 5. AND BE IT FURTHER ENACTED, That: 21
1427	1427
1428	1428	(a) Until the time that the State Board of Common Ownership Community 22
1429	1429	Managers adopts regulations concerning the training and examination requirements for an 23
1430	1430	applicant for a license or a limited license under this Act, passing an examination that 24
1431	1431	meets the requirements listed in subsection (b) of this section shall be deemed adequate for 25
1432	1432	satisfying the requirements of § 22–302(c) or § 22–402(c) of the Business Occupations and 26
1433	1433	Professions Article, as enacted by Section 2 of this Act. 27
1434	1434	32 HOUSE BILL 273
1435	1435
1436	1436
1437	1437	(b) The examination specified under subsection (a) of this section shall be: 1
1438	1438
1439	1439	(1) a nationally prepared and administered standardized examination for 2
1440	1440	the community association management profession; and 3
1441	1441
1442	1442	(2) developed according to the basic principles of professional testing 4
1443	1443	standards that utilize psychometric measurement. 5
1444	1444
1445	1445	SECTION 6. AND BE IT FURTHER ENACTED, That the State Board of Common 6
1446	1446	Ownership Community Managers shall grant a waiver of the training and examination 7
1447	1447	requirements for a license issued under § 22–304 or a limited license issued under § 8
1448	1448	22–404 of the Business Occupations and Professions Article, as enacted by Section 2 of this 9
1449	1449	Act, to any applicant who presents to the Board not later than October 1, 2026, satisfactory 10
1450	1450	evidence that the applicant provided management services in the State for the 2 years 11
1451	1451	immediately before the date of application. 12
1452	1452
1453	1453	SECTION 7. AND BE IT FURTHER ENACTED, That, on or before December 1, 13
1454	1454	2024, the Maryland Department of Labor shall report to the General Assembly, in 14
1455	1455	accordance with § 2–1257 of the State Government Article, on the imposition of a 15
1456	1456	registration fee on common ownership communities, including the necessity for and amount 16
1457	1457	of a registration fee on common ownership communities in relation to the license fees and 17
1458	1458	limited license fees required under this Act and the size of a common ownership community 18
1459	1459	to which a registration fee would apply. 19
1460	1460
1461	1461	SECTION 8. AND BE IT FURTHER ENACTED, That the Department of Budget 20
1462	1462	and Management, by budget amendment, may advance sufficient funds to the State Board 21
1463	1463	of Common Ownership Community Managers to allow the Board to commence operations 22
1464	1464	on October 1, 2024, so that the functions of issuing licenses and limited licenses and 23
1465	1465	registering common ownership communities can be in place before October 1, 2025. The 24
1466	1466	Board shall reimburse any funds that have been advanced after the license fees and limited 25
1467	1467	license fees have been received and deposited into the State Board of Common Ownership 26
1468	1468	Community Managers Fund. 27
1469	1469
1470	1470	SECTION 9. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
1471	1471	October 1, 2024. 29