Maryland 2024 Regular Session

Maryland House Bill HB705 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *hb0705*
96
107 HOUSE BILL 705
118 N1 4lr2554
129 HB 331/23 – ENT
1310 By: Delegate Terrasa
1411 Introduced and read first time: January 26, 2024
1512 Assigned to: Environment and Transportation
16-Committee Report: Favorable
17-House action: Adopted
18-Read second time: February 23, 2024
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Real Property – Cooperative Housing Corporations, Condominiums, and 2
2519 Homeowners Associations – Virtual Meetings 3
2620
2721 FOR the purpose of requiring a person conducting a meeting of a cooperative housing 4
2822 corporation, condominium, or homeowners association by telephone conference, 5
2923 video conference, or similar electronic means to provide a participant a reasonable 6
3024 opportunity to participate in the meeting; requiring certain participants in a meeting 7
3125 of a cooperative housing corporation, condominium, or homeowners association to 8
3226 have equal access to any available chat function; specifying that a meeting of a 9
3327 cooperative housing corporation, condominium, or homeowners association by 10
3428 electronic transmission may be held only in accordance with certain provisions of 11
3529 law; and generally relating to cooperative housing corporations, condominiums, and 12
3630 homeowners associations. 13
3731
3832 BY repealing and reenacting, without amendments, 14
3933 Article – Corporations and Associations 15
4034 Section 5–6B–19 16
4135 Annotated Code of Maryland 17
4236 (2014 Replacement Volume and 2023 Supplement) 18
4337
4438 BY repealing and reenacting, with amendments, 19
4539 Article – Corporations and Associations 20
4640 Section 5–6B–25.1 21
4741 Annotated Code of Maryland 22
48- (2014 Replacement Volume and 2023 Supplement) 23 2 HOUSE BILL 705
42+ (2014 Replacement Volume and 2023 Supplement) 23
43+
44+BY repealing and reenacting, without amendments, 24
45+ Article – Real Property 25
46+Section 11–109 and 11B–111 26
47+ Annotated Code of Maryland 27
48+ (2023 Replacement Volume) 28 2 HOUSE BILL 705
4949
5050
5151
52-BY repealing and reenacting, without amendments, 1
52+BY repealing and reenacting, with amendments, 1
5353 Article – Real Property 2
54-Section 11–109 and 11B–111 3
54+Section 11–139.3 and 11B–113.6 3
5555 Annotated Code of Maryland 4
5656 (2023 Replacement Volume) 5
5757
58-BY repealing and reenacting, with amendments, 6
59- Article – Real Property 7
60-Section 11–139.3 and 11B–113.6 8
61- Annotated Code of Maryland 9
62- (2023 Replacement Volume) 10
58+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
59+That the Laws of Maryland read as follows: 7
6360
64- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
65-That the Laws of Maryland read as follows: 12
61+Article – Corporations and Associations 8
6662
67-Article – Corporations and Associations 13
63+5–6B–19. 9
6864
69-5–6B–19. 14
65+ (a) This section applies to any meeting of a cooperative housing corporation, the 10
66+governing body of a cooperative housing corporation, or a committee of a cooperative 11
67+housing corporation, notwithstanding anything contained in the documents of the 12
68+cooperative housing corporation. 13
7069
71- (a) This section applies to any meeting of a cooperative housing corporation, the 15
72-governing body of a cooperative housing corporation, or a committee of a cooperative 16
73-housing corporation, notwithstanding anything contained in the documents of the 17
74-cooperative housing corporation. 18
70+ (b) Subject to the provisions of subsection (e) of this section, all meetings of the 14
71+cooperative housing corporation shall be open to the members of the cooperative housing 15
72+corporation or their agents. 16
7573
76- (b) Subject to the provisions of subsection (e) of this section, all meetings of the 19
77-cooperative housing corporation shall be open to the members of the cooperative housing 20
78-corporation or their agents. 21
74+ (c) All members shall be given reasonable notice of all regularly scheduled open 17
75+meetings of the cooperative housing corporation. 18
7976
80- (c) All members shall be given reasonable notice of all regularly scheduled open 22
81-meetings of the cooperative housing corporation. 23
77+ (d) (1) This subsection does not apply to a meeting of a governing body that 19
78+occurs at any time before the members, other than the developer, have a majority of votes 20
79+in the cooperative housing corporation. 21
8280
83- (d) (1) This subsection does not apply to a meeting of a governing body that 24
84-occurs at any time before the members, other than the developer, have a majority of votes 25
85-in the cooperative housing corporation. 26
81+ (2) Subject to paragraph (3) of this subsection and to reasonable rules 22
82+adopted by a governing body, a governing body shall provide a designated period of time 23
83+during a meeting to allow members an opportunity to comment on any matter relating to 24
84+the cooperative housing corporation. 25
8685
87- (2) Subject to paragraph (3) of this subsection and to reasonable rules 27
88-adopted by a governing body, a governing body shall provide a designated period of time 28
89-during a meeting to allow members an opportunity to comment on any matter relating to 29
90-the cooperative housing corporation. 30
86+ (3) During a meeting at which the agenda is limited to specific topics or at 26
87+a special meeting, the comments of members may be limited to the topics listed on the 27
88+meeting agenda. 28
9189
92- (3) During a meeting at which the agenda is limited to specific topics or at 31
93-a special meeting, the comments of members may be limited to the topics listed on the 32
94-meeting agenda. 33
90+ (e) (1) A meeting of a cooperative housing corporation may be held in closed 29
91+session only for the purpose of: 30
9592
96- (e) (1) A meeting of a cooperative housing corporation may be held in closed 34
97-session only for the purpose of: 35 HOUSE BILL 705 3
93+ (i) Discussing matters pertaining to employees and personnel; 31
94+
95+ (ii) Protecting the privacy or reputation of individuals in matters not 32
96+related to the business of the cooperative housing corporation; 33
97+ HOUSE BILL 705 3
98+
99+
100+ (iii) Consulting with legal counsel on legal matters; 1
101+
102+ (iv) Consulting with staff personnel, consultants, attorneys, board 2
103+members, or other persons in connection with pending or potential litigation or other legal 3
104+matters; 4
105+
106+ (v) Conducting investigative proceedings concerning possible or 5
107+actual criminal misconduct; 6
108+
109+ (vi) Considering the terms or conditions of a business transaction in 7
110+the negotiation stage if the disclosure could adversely affect the economic interests of the 8
111+cooperative housing corporation; 9
112+
113+ (vii) Complying with a specific constitutional, statutory, or judicially 10
114+imposed requirement protecting particular proceedings or matters from public disclosure; 11
115+or 12
116+
117+ (viii) Discussing individual owner assessment accounts. 13
118+
119+ (2) If a meeting is held in closed session under paragraph (1) of this 14
120+subsection: 15
121+
122+ (i) An action may not be taken and a matter may not be discussed if 16
123+it is not permitted by paragraph (1) of this subsection; and 17
124+
125+ (ii) The minutes of the next meeting of the cooperative housing 18
126+corporation shall include: 19
127+
128+ 1. A statement of the time, place, and purpose of a closed 20
129+meeting; 21
130+
131+ 2. A record of the vote of each board or committee member by 22
132+which the meeting was closed; and 23
133+
134+ 3. A statement of the authority under this subsection for 24
135+closing the meeting. 25
136+
137+5–6B–25.1. 26
138+
139+ (a) (1) Notwithstanding language contained in the governing documents of the 27
140+cooperative housing corporation, the board of directors may authorize any meetings of the 28
141+cooperative housing corporation, the board of directors, or a committee of the cooperative 29
142+housing corporation to be conducted or attended by telephone conference, video conference, 30
143+or similar electronic means. 31
144+
145+ (2) If a meeting is conducted by telephone conference, video conference, or 32
146+similar electronic means[, the]: 33 4 HOUSE BILL 705
98147
99148
100149
101- (i) Discussing matters pertaining to employees and personnel; 1
150+ (I) THE equipment or system used must permit any member, board 1
151+member, or committee member in attendance to hear and be heard by all other members 2
152+participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS; 3
102153
103- (ii) Protecting the privacy or reputation of individuals in matters not 2
104-related to the business of the cooperative housing corporation; 3
154+ (II) THE PERSON CONDUCTING THE MEETING SHALL ALLOW 4
155+ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 5
105156
106- (iii) Consulting with legal counsel on legal matters; 4
157+ 1. BE HEARD BY ALL OTHER MEMBERS PARTICIPATIN G 6
158+IN THE MEETING ; AND 7
107159
108- (iv) Consulting with staff personnel, consultants, attorneys, board 5
109-members, or other persons in connection with pending or potential litigation or other legal 6
110-matters; 7
160+ 2. PARTICIPATE IN THE MEETING TO THE S AME EXTENT 8
161+AS IF THE MEETING WE RE CONDUCTED IN PERS ON; 9
111162
112- (v) Conducting investigative proceedings concerning possible or 8
113-actual criminal misconduct; 9
163+ (III) PROVIDED THAT AL L PARTICIPANTS ARE G RANTED THE 10
164+ABILITY TO UNMUTE TH EMSELVES, THE PERSON CONDUCTIN G THE MEETING OR 11
165+THE PERSON’S DESIGNEE MAY MUTE ALL PARTICIPANTS : 12
114166
115- (vi) Considering the terms or conditions of a business transaction in 10
116-the negotiation stage if the disclosure could adversely affect the economic interests of the 11
117-cooperative housing corporation; 12
167+ 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 13
168+CONDUCTING BUSINESS ; 14
118169
119- (vii) Complying with a specific constitutional, statutory, or judicially 13
120-imposed requirement protecting particular proceedings or matters from public disclosure; 14
121-or 15
170+ 2. DURING PRESENTATIONS ; AND 15
122171
123- (viii) Discussing individual owner assessment accounts. 16
172+ 3. TO AVOID INTERFERENCE FROM BACKGROUND 16
173+NOISE; AND 17
124174
125- (2) If a meeting is held in closed session under paragraph (1) of this 17
126-subsection: 18
175+ (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 18
176+CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 19
177+PERSON’S DESIGNEE MAY : 20
127178
128- (i) An action may not be taken and a matter may not be discussed if 19
129-it is not permitted by paragraph (1) of this subsection; and 20
179+ 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 21
180+UNMUTE; AND 22
130181
131- (ii) The minutes of the next meeting of the cooperative housing 21
132-corporation shall include: 22
182+ 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 23
183+MEETING AFTER WARNIN G THE PARTICIPANT . 24
133184
134- 1. A statement of the time, place, and purpose of a closed 23
135-meeting; 24
185+ (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 25
186+ELECTRONIC MEANS , ALL PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY 26
187+CHAT FUNCTION . 27
136188
137- 2. A record of the vote of each board or committee member by 25
138-which the meeting was closed; and 26
139-
140- 3. A statement of the authority under this subsection for 27
141-closing the meeting. 28
142-
143-5–6B–25.1. 29
144-
145- (a) (1) Notwithstanding language contained in the governing documents of the 30
146-cooperative housing corporation, the board of directors may authorize any meetings of the 31 4 HOUSE BILL 705
189+ (4) A link or instructions on how to access the meeting by telephone 28
190+conference, video conference, or similar electronic means shall be included in the notice of 29
191+the meeting. 30
192+ HOUSE BILL 705 5
147193
148194
149-cooperative housing corporation, the board of directors, or a committee of the cooperative 1
150-housing corporation to be conducted or attended by telephone conference, video conference, 2
151-or similar electronic means. 3
195+ [(4)] (5) No specific authorization from members shall be required to hold 1
196+a meeting electronically. 2
152197
153- (2) If a meeting is conducted by telephone conference, video conference, or 4
154-similar electronic means[, the]: 5
198+ (6) A MEETING OF THE GOVER NING BODY HELD BY ELECTRONIC 3
199+TRANSMISSION MAY BE HELD ONLY IN ACCORDA NCE WITH § 5–6B–19 OF THIS 4
200+SUBTITLE. 5
155201
156- (I) THE equipment or system used must permit any member, board 6
157-member, or committee member in attendance to hear and be heard by all other members 7
158-participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS; 8
202+ (b) Any member, board member, or committee member attending a meeting by 6
203+telephone conference, video conference, or similar electronic means shall be deemed present 7
204+for quorum and voting purposes. 8
159205
160- (II) THE PERSON CONDUCTING THE MEETING SHALL AL LOW 9
161-ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 10
206+ (c) (1) (i) Any matter requiring a vote of the cooperative housing 9
207+corporation may be set by the board of directors for a vote at the meeting, and a ballot may 10
208+be delivered to members with notice of the meeting. 11
162209
163- 1. BE HEARD BY ALL OTHER MEMBERS PARTICIPATIN G 11
164-IN THE MEETING ; AND 12
210+ (ii) Only those members present during the telephone conference, 12
211+video conference, or similar electronic meeting shall be authorized to vote a ballot in 13
212+accordance with this subsection. 14
165213
166- 2. PARTICIPATE IN THE MEETING TO THE S AME EXTENT 13
167-AS IF THE MEETING WE RE CONDUCTED IN PERS ON; 14
214+ (iii) Members who are not present at the meeting may: 15
168215
169- (III) PROVIDED THAT ALL PAR TICIPANTS ARE GRANTE D THE 15
170-ABILITY TO UNMUTE TH EMSELVES, THE PERSON CONDUCTIN G THE MEETING OR 16
171-THE PERSON’S DESIGNEE MAY MUTE ALL PARTICIPANTS : 17
216+ 1. Vote by proxy in accordance with the requirements of the 16
217+governing documents and this title; and 17
172218
173- 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 18
174-CONDUCTING BUSINESS ; 19
219+ 2. Be considered present for quorum purposes through their 18
220+proxy. 19
175221
176- 2. DURING PRESENTATIONS ; AND 20
222+ (2) (i) The board of directors may set a reasonable deadline for return 20
223+of a ballot to the cooperative housing corporation, including return by electronic 21
224+transmission. 22
177225
178- 3. TO AVOID INTERFERENCE FROM BACKGROUND 21
179-NOISE; AND 22
226+ (ii) The deadline for return of the ballot shall be not later than 24 23
227+hours after the conclusion of the meeting. 24
180228
181- (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 23
182-CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 24
183-PERSON’S DESIGNEE MAY : 25
229+ (d) Notwithstanding language contained in the governing documents of the 25
230+cooperative housing corporation, nominations from the floor at the meeting are not required 26
231+if at least one candidate has been nominated to fill each open board position. 27
184232
185- 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 26
186-UNMUTE; AND 27
233+ (e) The inability of a member to join a meeting due to technical difficulties with 28
234+the member’s telephone, computer, or other electronic device does not invalidate the 29
235+meeting or any action taken at the meeting. 30
187236
188- 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 28
189-MEETING AFTER WARNIN G THE PARTICIPANT . 29
237+Article – Real Property 31
190238
191- (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 30
192-ELECTRONIC MEANS , ALL PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY 31
193-CHAT FUNCTION . 32 HOUSE BILL 705 5
239+11–109. 32
240+ 6 HOUSE BILL 705
241+
242+
243+ (a) The affairs of the condominium shall be governed by a council of unit owners 1
244+which, even if unincorporated, is constituted a legal entity for all purposes. The council of 2
245+unit owners shall be comprised of all unit owners. 3
246+
247+ (b) The bylaws may authorize or provide for the delegation of any power of the 4
248+council of unit owners to a board of directors, officers, managing agent, or other person for 5
249+the purpose of carrying out the responsibilities of the council of unit owners. 6
250+
251+ (c) (1) A meeting of the council of unit owners or board of directors may not be 7
252+held on less notice than required by this section. 8
253+
254+ (2) The council of unit owners shall maintain a current roster of names and 9
255+addresses of each unit owner to which notice of meetings of the board of directors shall be 10
256+sent at least annually. 11
257+
258+ (3) Each unit owner shall furnish the council of unit owners with his name 12
259+and current mailing address. A unit owner may not vote at meetings of the council of unit 13
260+owners until this information is furnished. 14
261+
262+ (4) A regular or special meeting of the council of unit owners may not be 15
263+held on less than 10 nor more than 90 days’: 16
264+
265+ (i) Written notice delivered or mailed to each unit owner at the 17
266+address shown on the roster on the date of the notice; or 18
267+
268+ (ii) Notice sent to each unit owner by electronic transmission, if the 19
269+requirements of § 11–139.1 of this title are met. 20
270+
271+ (5) Notice of special meetings of the board of directors shall be given: 21
272+
273+ (i) As provided in the bylaws; or 22
274+
275+ (ii) If the requirements of § 11–139.1 of this title are met, by 23
276+electronic transmission. 24
277+
278+ (6) Except as provided in § 11–109.1 of this title, a meeting of a governing 25
279+body shall be open and held at a time and location as provided in the notice or bylaws. 26
280+
281+ (7) (i) This paragraph does not apply to any meeting of the governing 27
282+body that occurs at any time before the meeting at which the unit owners elect officers or a 28
283+board of directors in accordance with paragraph (16) of this subsection. 29
284+
285+ (ii) Subject to subparagraph (iii) of this paragraph and to reasonable 30
286+rules adopted by the governing body under § 11–111 of this title, a governing body shall 31
287+provide a designated period of time during a meeting to allow unit owners an opportunity 32
288+to comment on any matter relating to the condominium. 33
289+ HOUSE BILL 705 7
290+
291+
292+ (iii) During a meeting at which the agenda is limited to specific topics 1
293+or at a special meeting, the unit owners’ comments may be limited to the topics listed on 2
294+the meeting agenda. 3
295+
296+ (iv) The governing body shall convene at least one meeting each year 4
297+at which the agenda is open to any matter relating to the condominium. 5
298+
299+ (8) (i) Unless the bylaws provide otherwise, a quorum is deemed 6
300+present throughout any meeting of the council of unit owners if persons entitled to cast 25 7
301+percent of the total number of votes appurtenant to all units are present in person or by 8
302+proxy. 9
303+
304+ (ii) If the number of persons present in person or by proxy at a 10
305+properly called meeting of the council of unit owners is insufficient to constitute a quorum, 11
306+an additional meeting of the council of unit owners may be called for the same purpose if: 12
307+
308+ 1. The notice of the initial properly called meeting stated: 13
309+
310+ A. That the procedure authorized by this paragraph might be 14
311+invoked; and 15
312+
313+ B. The date, time, and place of the additional meeting; and 16
314+
315+ 2. A majority of the unit owners present vote in person or by 17
316+proxy to call for the additional meeting. 18
317+
318+ (iii) 1. An additional meeting called under subparagraph (ii) of 19
319+this paragraph shall occur not less than 15 days after the initial properly called meeting. 20
320+
321+ 2. Not less than 10 days before the additional meeting, a 21
322+separate and distinct notice of the date, time, place, and purpose of the additional meeting 22
323+called under subparagraph (ii) of this paragraph shall be: 23
324+
325+ A. Delivered, mailed, or sent by electronic transmission if the 24
326+requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 25
327+on the roster maintained under paragraph (2) of this subsection; 26
328+
329+ B. Advertised in a newspaper published in the county where 27
330+the condominium is located; or 28
331+
332+ C. If the condominium has a website, posted on the homepage 29
333+of the website. 30
334+
335+ 3. The notice shall contain the quorum and voting provisions 31
336+of subparagraph (iv) of this paragraph. 32
337+ 8 HOUSE BILL 705
338+
339+
340+ (iv) 1. At the additional meeting, the unit owners present in 1
341+person or by proxy constitute a quorum. 2
342+
343+ 2. Unless the bylaws provide otherwise, a majority of the 3
344+unit owners present in person or by proxy: 4
345+
346+ A. May approve or authorize the proposed action at the 5
347+additional meeting; and 6
348+
349+ B. May take any other action that could have been taken at 7
350+the original meeting if a sufficient number of unit owners had been present. 8
351+
352+ (v) This paragraph may not be construed to affect the percentage of 9
353+votes required to amend the declaration or bylaws or to take any other action required to 10
354+be taken by a specified percentage of votes. 11
355+
356+ (9) At meetings of the council of unit owners each unit owner shall be 12
357+entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 13
358+but the proxy is effective only for a maximum period of 180 days following its issuance, 14
359+unless granted to a lessee or mortgagee. 15
360+
361+ (10) Any proxy may be revoked at any time at the pleasure of the unit owner 16
362+or unit owners executing the proxy. 17
363+
364+ (11) A proxy who is not appointed to vote as directed by a unit owner may 18
365+only be appointed for purposes of meeting quorums and to vote for matters of business 19
366+before the council of unit owners, other than an election of officers and members of the 20
367+board of directors. 21
368+
369+ (12) Only a unit owner voting in person or by electronic transmission if the 22
370+requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 23
371+by a unit owner may vote for officers and members of the board of directors. 24
372+
373+ (13) Unless otherwise provided in the bylaws, a unit owner may nominate 25
374+himself or any other person to be an officer or member of the board of directors. A call for 26
375+nominations shall be sent to all unit owners not less than 45 days before notice of an election 27
376+is sent. Only nominations made at least 15 days before notice of an election shall be listed 28
377+on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 29
378+no indicated candidate preference. Nominations may be made from the floor at the meeting 30
379+at which the election to the board is held. 31
380+
381+ (14) Election materials prepared with funds of the council of unit owners 32
382+shall list candidates in alphabetical order and may not indicate a candidate preference. 33
383+
384+ (15) Unless otherwise provided in this title, and subject to provisions in the 34
385+bylaws requiring a different majority, decisions of the council of unit owners shall be made 35
386+on a majority of votes of the unit owners listed on the current roster present and voting. 36 HOUSE BILL 705 9
194387
195388
196389
197- (4) A link or instructions on how to access the meeting by telephone 1
198-conference, video conference, or similar electronic means shall be included in the notice of 2
199-the meeting. 3
390+ (16) (i) A meeting of the council of unit owners to elect a board of 1
391+directors for the council of unit owners, as provided in the condominium declaration or 2
392+bylaws, shall be held within: 3
200393
201- [(4)] (5) No specific authorization from members shall be required to hold 4
202-a meeting electronically. 5
394+ 1. 60 days from the date that units representing 50 percent 4
395+of the votes in the condominium have been conveyed by the developer to members of the 5
396+public for residential purposes; or 6
203397
204- (6) A MEETING OF THE GOVER NING BODY HELD BY ELECTRONIC 6
205-TRANSMISSION MAY BE HELD ONLY IN ACCORDA NCE WITH § 5–6B–19 OF THIS 7
206-SUBTITLE. 8
398+ 2. If a lesser percentage is specified in the declaration or 7
399+bylaws of the condominium, 60 days from the date the specified lesser percentage of units 8
400+in the condominium are sold to members of the public for residential purposes. 9
207401
208- (b) Any member, board member, or committee member attending a meeting by 9
209-telephone conference, video conference, or similar electronic means shall be deemed present 10
210-for quorum and voting purposes. 11
402+ (ii) 1. Before the date of the meeting held under subparagraph 10
403+(i) of this paragraph, the developer shall deliver to each unit owner notice that the 11
404+requirements of subparagraph (i) of this paragraph have been met. 12
211405
212- (c) (1) (i) Any matter requiring a vote of the cooperative housing 12
213-corporation may be set by the board of directors for a vote at the meeting, and a ballot may 13
214-be delivered to members with notice of the meeting. 14
406+ 2. The notice shall include the date, time, and place of the 13
407+meeting to elect the board of directors for the council of unit owners. 14
215408
216- (ii) Only those members present during the telephone conference, 15
217-video conference, or similar electronic meeting shall be authorized to vote a ballot in 16
218-accordance with this subsection. 17
409+ (iii) If a replacement board member is elected, the term of each 15
410+member of the board of directors appointed by the developer shall end 10 days after the 16
411+meeting is held as specified in subparagraph (i) of this paragraph. 17
219412
220- (iii) Members who are not present at the meeting may: 18
413+ (iv) Within 30 days from the date of the meeting held und er 18
414+subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 19
415+directors for the council of unit owners, as provided in the condominium declaration or 20
416+bylaws, at the developer’s expense: 21
221417
222- 1. Vote by proxy in accordance with the requirements of the 19
223-governing documents and this title; and 20
418+ 1. The documents specified in § 11–132 of this title; 22
224419
225- 2. Be considered present for quorum purposes through their 21
226-proxy. 22
420+ 2. The condominium funds, including operating funds, 23
421+replacement reserves, investment accounts, and working capital; 24
227422
228- (2) (i) The board of directors may set a reasonable deadline for return 23
229-of a ballot to the cooperative housing corporation, including return by electronic 24
230-transmission. 25
423+ 3. The tangible property of the condominium; and 25
231424
232- (ii) The deadline for return of the ballot shall be not later than 24 26
233-hours after the conclusion of the meeting. 27
425+ 4. A roster of current unit owners, including mailing 26
426+addresses, telephone numbers, and unit numbers, if known. 27
234427
235- (d) Notwithstanding language contained in the governing documents of the 28
236-cooperative housing corporation, nominations from the floor at the meeting are not required 29
237-if at least one candidate has been nominated to fill each open board position. 30
428+ (v) The replacement reserves delivered under subparagraph (iv)2 of 28
429+this paragraph for a residential condominium shall be equal to at least the reserve funding 29
430+amount recommended in the reserve study completed under § 11–109.4 of this title as of 30
431+the date of the meeting. 31
238432
239- (e) The inability of a member to join a meeting due to technical difficulties with 31
240-the member’s telephone, computer, or other electronic device does not invalidate the 32
241-meeting or any action taken at the meeting. 33
242- 6 HOUSE BILL 705
433+ (vi) 1. This subparagraph does not apply to a contract entered 32
434+into before October 1, 2009. 33
435+ 10 HOUSE BILL 705
243436
244437
245-Article – Real Property 1
438+ 2. A. In this subparagraph, “contract” means an 1
439+agreement with a company or individual to handle financial matters, maintenance, or 2
440+services for the condominium. 3
246441
247-11–109. 2
442+ B. “Contract” does not include an agreement relating to the 4
443+provision of utility services or communication systems. 5
248444
249- (a) The affairs of the condominium shall be governed by a council of unit owners 3
250-which, even if unincorporated, is constituted a legal entity for all purposes. The council of 4
251-unit owners shall be comprised of all unit owners. 5
445+ 3. Until all members of the board of directors of the 6
446+condominium are elected by the unit owners at a transitional meeting as specified in 7
447+subparagraph (i) of this paragraph, a contract entered into by the officers or board of 8
448+directors of the condominium may be terminated, at the discretion of the board of directors 9
449+and without liability for the termination, not later than 30 days after notice. 10
252450
253- (b) The bylaws may authorize or provide for the delegation of any power of the 6
254-council of unit owners to a board of directors, officers, managing agent, or other person for 7
255-the purpose of carrying out the responsibilities of the council of unit owners. 8
451+ (vii) If the developer fails to comply with the requirements of this 11
452+paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 12
453+Protection of the Office of the Attorney General under § 11–130(c) of this title. 13
256454
257- (c) (1) A meeting of the council of unit owners or board of directors may not be 9
258-held on less notice than required by this section. 10
455+ (d) The council of unit owners may be either incorporated as a nonstock 14
456+corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 15
457+the Corporations and Associations Article which are not inconsistent with this title. The 16
458+council of unit owners has, subject to any provision of this title, and except as provided in 17
459+item (22) of this subsection, the declaration, and bylaws, the following powers: 18
259460
260- (2) The council of unit owners shall maintain a current roster of names and 11
261-addresses of each unit owner to which notice of meetings of the board of directors shall be 12
262-sent at least annually. 13
461+ (1) To have perpetual existence, subject to the right of the unit owners to 19
462+terminate the condominium regime as provided in § 11–123 of this title; 20
263463
264- (3) Each unit owner shall furnish the council of unit owners with his name 14
265-and current mailing address. A unit owner may not vote at meetings of the council of unit 15
266-owners until this information is furnished. 16
464+ (2) To adopt and amend reasonable rules and regulations; 21
267465
268- (4) A regular or special meeting of the council of unit owners may not be 17
269-held on less than 10 nor more than 90 days’: 18
466+ (3) To adopt and amend budgets for revenues, expenditures, and reserves 22
467+and collect assessments for common expenses from unit owners; 23
270468
271- (i) Written notice delivered or mailed to each unit owner at the 19
272-address shown on the roster on the date of the notice; or 20
469+ (4) To sue and be sued, complain and defend, or intervene in litigation or 24
470+administrative proceedings in its own name on behalf of itself or two or more unit owners 25
471+on matters affecting the condominium; 26
273472
274- (ii) Notice sent to each unit owner by electronic transmission, if the 21
275-requirements of § 11–139.1 of this title are met. 22
473+ (5) To transact its business, carry on its operations and exercise the powers 27
474+provided in this subsection in any state, territory, district, or possession of the United 28
475+States and in any foreign country; 29
276476
277- (5) Notice of special meetings of the board of directors shall be given: 23
477+ (6) To make contracts and guarantees, incur liabilities and borrow money, 30
478+sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 31
479+of its property and assets; 32
278480
279- (i) As provided in the bylaws; or 24
280-
281- (ii) If the requirements of § 11–139.1 of this title are met, by 25
282-electronic transmission. 26
283-
284- (6) Except as provided in § 11–109.1 of this title, a meeting of a governing 27
285-body shall be open and held at a time and location as provided in the notice or bylaws. 28
286-
287- (7) (i) This paragraph does not apply to any meeting of the governing 29
288-body that occurs at any time before the meeting at which the unit owners elect officers or a 30
289-board of directors in accordance with paragraph (16) of this subsection. 31
290- HOUSE BILL 705 7
481+ (7) To issue bonds, notes, and other obligations and secure the same by 33
482+mortgage or deed of trust of any part of its property, franchises, and income; 34
483+ HOUSE BILL 705 11
291484
292485
293- (ii) Subject to subparagraph (iii) of this paragraph and to reasonable 1
294-rules adopted by the governing body under § 11–111 of this title, a governing body shall 2
295-provide a designated period of time during a meeting to allow unit owners an opportunity 3
296-to comment on any matter relating to the condominium. 4
486+ (8) To acquire by purchase or in any other manner, to take, receive, own, 1
487+hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 2
488+interest therein, wherever located; 3
297489
298- (iii) During a meeting at which the agenda is limited to specific topics 5
299-or at a special meeting, the unit owners’ comments may be limited to the topics listed on 6
300-the meeting agenda. 7
490+ (9) To hire and terminate managing agents and other employees, agents, 4
491+and independent contractors; 5
301492
302- (iv) The governing body shall convene at least one meeting each year 8
303-at which the agenda is open to any matter relating to the condominium. 9
493+ (10) To purchase, take, receive, subscribe for or otherwise acquire, own, 6
494+hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 7
495+use and deal in and with, shares or other interests in, or obligation of corporations of the 8
496+State, or foreign corporations, and of associations, partnerships, and individuals; 9
304497
305- (8) (i) Unless the bylaws provide otherwise, a quorum is deemed 10
306-present throughout any meeting of the council of unit owners if persons entitled to cast 25 11
307-percent of the total number of votes appurtenant to all units are present in person or by 12
308-proxy. 13
498+ (11) To invest its funds and to lend money in any manner appropriate to 10
499+enable it to carry on the operations or to fulfill the purposes named in the declaration or 11
500+bylaws, and to take and to hold real and personal property as security for the payment of 12
501+funds so invested or loaned; 13
309502
310- (ii) If the number of persons present in person or by proxy at a 14
311-properly called meeting of the council of unit owners is insufficient to constitute a quorum, 15
312-an additional meeting of the council of unit owners may be called for the same purpose if: 16
503+ (12) To regulate the use, maintenance, repair, replacement, and 14
504+modification of common elements; 15
313505
314- 1. The notice of the initial properly called meeting stated: 17
506+ (13) To cause additional improvements to be made as a part of the general 16
507+common elements; 17
315508
316- A. That the procedure authorized by this paragraph might be 18
317-invoked; and 19
509+ (14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 18
510+or similar interests through or over the common elements in accordance with § 11–125(f) 19
511+of this title; 20
318512
319- B. The date, time, and place of the additional meeting; and 20
513+ (15) To impose and receive any payments, fees, or charges for the use, rental, 21
514+or operation of the common elements other than limited common elements; 22
320515
321- 2. A majority of the unit owners present vote in person or by 21
322-proxy to call for the additional meeting. 22
516+ (16) To impose charges for late payment of assessments and, after notice 23
517+and an opportunity to be heard, levy reasonable fines for violations of the declaration, 24
518+bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 25
323519
324- (iii) 1. An additional meeting called under subparagraph (ii) of 23
325-this paragraph shall occur not less than 15 days after the initial properly called meeting. 24
520+ (17) To impose reasonable charges for the preparation and recordation of 26
521+amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 27
522+certificates, or statements of unpaid assessments; 28
326523
327- 2. Not less than 10 days before the additional meeting, a 25
328-separate and distinct notice of the date, time, place, and purpose of the additional meeting 26
329-called under subparagraph (ii) of this paragraph shall be: 27
524+ (18) To provide for the indemnification of and maintain liability insurance 29
525+for officers, directors, and any managing agent or other employee charged with the 30
526+operation or maintenance of the condominium; 31
330527
331- A. Delivered, mailed, or sent by electronic transmission if the 28
332-requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 29
333-on the roster maintained under paragraph (2) of this subsection; 30
528+ (19) To enforce the implied warranties made to the council of unit owners by 32
529+the developer under § 11–131 of this title; 33
334530
335- B. Advertised in a newspaper published in the county where 31
336-the condominium is located; or 32
337-
338- C. If the condominium has a website, posted on the homepage 33
339-of the website. 34 8 HOUSE BILL 705
531+ (20) To enforce the provisions of this title, the declaration, bylaws, and rules 34
532+and regulations of the council of unit owners against any unit owner or occupant; 35 12 HOUSE BILL 705
340533
341534
342535
343- 3. The notice shall contain the quorum and voting provisions 1
344-of subparagraph (iv) of this paragraph. 2
536+ (21) Generally, to exercise the powers set forth in this title and the 1
537+declaration or bylaws and to do every other act not inconsistent with law, which may be 2
538+appropriate to promote and attain the purposes set forth in this title, the declaration or 3
539+bylaws; and 4
345540
346- (iv) 1. At the additional meeting, the unit owners present in 3
347-person or by proxy constitute a quorum. 4
541+ (22) To designate parking for individuals with disabilities, notwithstanding 5
542+any provision in the declaration, bylaws, or rules and regulations. 6
348543
349- 2. Unless the bylaws provide otherwise, a majority of the 5
350-unit owners present in person or by proxy: 6
544+ (e) A unit owner may not have any right, title, or interest in any property owned 7
545+by the council of unit owners other than as holder of a percentage interest in common 8
546+expenses and common profits appurtenant to his unit. 9
351547
352- A. May approve or authorize the proposed action at the 7
353-additional meeting; and 8
548+ (f) A unit owner’s rights as holder of a percentage interest in common expenses 10
549+and common profits are such that: 11
354550
355- B. May take any other action that could have been taken at 9
356-the original meeting if a sufficient number of unit owners had been present. 10
551+ (1) A unit owner’s right to possess, use, or enjoy property of the council of 12
552+unit owners shall be as provided in the bylaws; and 13
357553
358- (v) This paragraph may not be construed to affect the percentage of 11
359-votes required to amend the declaration or bylaws or to take any other action required to 12
360-be taken by a specified percentage of votes. 13
554+ (2) A unit owner’s interest in the property is not assignable or attachable 14
555+separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 15
361556
362- (9) At meetings of the council of unit owners each unit owner shall be 14
363-entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 15
364-but the proxy is effective only for a maximum period of 180 days following its issuance, 16
365-unless granted to a lessee or mortgagee. 17
557+11–139.3. 16
366558
367- (10) Any proxy may be revoked at any time at the pleasure of the unit owner 18
368-or unit owners executing the proxy. 19
559+ (a) (1) Notwithstanding language contained in the governing documents of the 17
560+council of unit owners, the board of directors may authorize any meetings of the council of 18
561+unit owners, the board of directors, or a committee of the council of unit owners or the board 19
562+of directors to be conducted or attended by telephone conference, video conference, or 20
563+similar electronic means. 21
369564
370- (11) A proxy who is not appointed to vote as directed by a unit owner may 20
371-only be appointed for purposes of meeting quorums and to vote for matters of business 21
372-before the council of unit owners, other than an election of officers and members of the 22
373-board of directors. 23
565+ (2) If a meeting is conducted by telephone conference, video conference, or 22
566+similar electronic means[, the]: 23
374567
375- (12) Only a unit owner voting in person or by electronic transmission if the 24
376-requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 25
377-by a unit owner may vote for officers and members of the board of directors. 26
568+ (I) THE equipment or system used must permit any unit owner, 24
569+board member, or committee member in attendance to hear and be heard by all others 25
570+participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS; 26
378571
379- (13) Unless otherwise provided in the bylaws, a unit owner may nominate 27
380-himself or any other person to be an officer or member of the board of directors. A call for 28
381-nominations shall be sent to all unit owners not less than 45 days before notice of an election 29
382-is sent. Only nominations made at least 15 days before notice of an election shall be listed 30
383-on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 31
384-no indicated candidate preference. Nominations may be made from the floor at the meeting 32
385-at which the election to the board is held. 33
572+ (II) THE PERSON CONDUCTING THE MEETING SHALL AL LOW 27
573+ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 28
386574
387- (14) Election materials prepared with funds of the council of unit owners 34
388-shall list candidates in alphabetical order and may not indicate a candidate preference. 35 HOUSE BILL 705 9
575+ 1. BE HEARD BY ALL OTHER S PARTICIPATING IN T HE 29
576+MEETING; AND 30
577+
578+ 2. PARTICIPATE IN THE MEETING TO THE S AME EXTENT 31
579+AS IF THE MEETING WE RE CONDUCTED IN PERS ON; 32
580+ HOUSE BILL 705 13
581+
582+
583+ (III) PROVIDED THA T ALL PARTICIPANTS A RE GRANTED THE 1
584+ABILITY TO UNMUTE TH EMSELVES, THE PERSON CONDUCTIN G THE MEETING OR 2
585+THE PERSON’S DESIGNEE MAY MUTE ALL PARTICIPANTS : 3
586+
587+ 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 4
588+CONDUCTING BUSINESS ; 5
589+
590+ 2. DURING PRESENTATIONS ; AND 6
591+
592+ 3. TO AVOID INTERFERENCE FROM BACKGROUND 7
593+NOISE; AND 8
594+
595+ (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 9
596+CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 10
597+PERSON’S DESIGNEE MAY : 11
598+
599+ 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 12
600+UNMUTE; AND 13
601+
602+ 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 14
603+MEETING AFTER WARNIN G THE PARTICIPANT . 15
604+
605+ (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 16
606+ELECTRONIC MEANS , ALL PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY 17
607+CHAT FUNCTION . 18
608+
609+ (4) A link or instructions on how to access the meeting by telephone 19
610+conference, video conference, or similar electronic means shall be included in the notice of 20
611+the meeting. 21
612+
613+ [(4)] (5) No specific authorization from unit owners shall be required to 22
614+hold a meeting electronically. 23
615+
616+ (6) A MEETING OF THE GOVER NING BODY HELD BY ELECTRONIC 24
617+TRANSMISSION MAY BE HELD ONLY IN ACCORDA NCE WITH § 11–109 OF THIS TITLE. 25
618+
619+ (b) Any unit owner, board member, or committee member attending a meeting by 26
620+telephone conference, video conference, or similar electronic means shall be deemed present 27
621+for quorum and voting purposes. 28
622+
623+ (c) (1) (i) Any matter requiring a vote of the council of unit owners may be 29
624+set by the board of directors for a vote at the meeting, and a ballot may be delivered to unit 30
625+owners with notice of the meeting. 31
626+ 14 HOUSE BILL 705
627+
628+
629+ (ii) Only those unit owners present during the telephone conference, 1
630+video conference, or similar electronic meeting shall be authorized to vote by ballot in 2
631+accordance with this subsection. 3
632+
633+ (iii) Unit owners who are not present at the meeting may: 4
634+
635+ 1. Vote by proxy in accordance with the requirements of the 5
636+governing documents and this title; and 6
637+
638+ 2. Be considered present for quorum purposes through their 7
639+proxy. 8
640+
641+ (2) (i) The board of directors may set a reasonable deadline for return 9
642+of a ballot to the council of unit owners, including return by electronic transmission. 10
643+
644+ (ii) The deadline for return of the ballot shall be not later than 24 11
645+hours after the conclusion of the meeting. 12
646+
647+ (d) Notwithstanding language contained in the governing documents of the 13
648+council of unit owners, nominations from the floor at the meeting are not required if at least 14
649+one candidate has been nominated to fill each open board position. 15
650+
651+ (e) The inability of a unit owner to join a meeting due to technical difficulties with 16
652+the unit owner’s telephone, computer, or other electronic device does not invalidate the 17
653+meeting or any action taken at the meeting. 18
654+
655+11B–111. 19
656+
657+ Except as provided in this title, and notwithstanding anything contained in any of 20
658+the documents of the homeowners association: 21
659+
660+ (1) Subject to the provisions of item (4) of this section, all meetings of the 22
661+homeowners association, including meetings of the board of directors or other governing 23
662+body of the homeowners association or a committee of the homeowners association, shall 24
663+be open to all members of the homeowners association or their agents; 25
664+
665+ (2) All members of the homeowners association shall be given reasonable 26
666+notice of all regularly scheduled open meetings of the homeowners association; 27
667+
668+ (3) (i) This item does not apply to any meeting of a governing body that 28
669+occurs at any time before the lot owners, other than the developer, have a majority of votes 29
670+in the homeowners association, as provided in the declaration; 30
671+
672+ (ii) Subject to item (iii) of this item and to reasonable rules adopted 31
673+by a governing body, a governing body shall provide a designated period of time during a 32
674+meeting to allow lot owners an opportunity to comment on any matter relating to the 33
675+homeowners association; 34 HOUSE BILL 705 15
389676
390677
391678
392- (15) Unless otherwise provided in this title, and subject to provisions in the 1
393-bylaws requiring a different majority, decisions of the council of unit owners shall be made 2
394-on a majority of votes of the unit owners listed on the current roster present and voting. 3
679+ (iii) During a meeting at which the agenda is limited to specific topics 1
680+or at a special meeting, the lot owners’ comments may be limited to the topics listed on the 2
681+meeting agenda; and 3
395682
396- (16) (i) A meeting of the council of unit owners to elect a board of 4
397-directors for the council of unit owners, as provided in the condominium declaration or 5
398-bylaws, shall be held within: 6
683+ (iv) The governing body shall convene at least one meeting each year 4
684+at which the agenda is open to any matter relating to the homeowners association; 5
399685
400- 1. 60 days from the date that units representing 50 percent 7
401-of the votes in the condominium have been conveyed by the developer to members of the 8
402-public for residential purposes; or 9
686+ (4) A meeting of the board of directors or other governing body of the 6
687+homeowners association or a committee of the homeowners association may be held in 7
688+closed session only for the following purposes: 8
403689
404- 2. If a lesser percentage is specified in the declaration or 10
405-bylaws of the condominium, 60 days from the date the specified lesser percentage of units 11
406-in the condominium are sold to members of the public for residential purposes. 12
690+ (i) Discussion of matters pertaining to employees and personnel; 9
407691
408- (ii) 1. Before the date of the meeting held under subparagraph 13
409-(i) of this paragraph, the developer shall deliver to each unit owner notice that the 14
410-requirements of subparagraph (i) of this paragraph have been met. 15
692+ (ii) Protection of the privacy or reputation of individuals in matters 10
693+not related to the homeowners association’s business; 11
411694
412- 2. The notice shall include the date, time, and place of the 16
413-meeting to elect the board of directors for the council of unit owners. 17
695+ (iii) Consultation with legal counsel on legal matters; 12
414696
415- (iii) If a replacement board member is elected, the term of each 18
416-member of the board of directors appointed by the developer shall end 10 days after the 19
417-meeting is held as specified in subparagraph (i) of this paragraph. 20
697+ (iv) Consultation with staff personnel, consultants, attorneys, board 13
698+members, or other persons in connection with pending or potential litigation or other legal 14
699+matters; 15
418700
419- (iv) Within 30 days from the date of the meeting held under 21
420-subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 22
421-directors for the council of unit owners, as provided in the condominium declaration or 23
422-bylaws, at the developer’s expense: 24
701+ (v) Investigative proceedings concerning possible or actual criminal 16
702+misconduct; 17
423703
424- 1. The documents specified in § 11–132 of this title; 25
704+ (vi) Consideration of the terms or conditions of a business 18
705+transaction in the negotiation stage if the disclosure could adversely affect the economic 19
706+interests of the homeowners association; 20
425707
426- 2. The condominium funds, including operating funds, 26
427-replacement reserves, investment accounts, and working capital; 27
708+ (vii) Compliance with a specific constitutional, statutory, or judicially 21
709+imposed requirement protecting particular proceedings or matters from public disclosure; 22
710+or 23
428711
429- 3. The tangible property of the condominium; and 28
712+ (viii) Discussion of individual owner assessment accounts; 24
430713
431- 4. A roster of current unit owners, including mailing 29
432-addresses, telephone numbers, and unit numbers, if known. 30
714+ (5) If a meeting is held in closed session under item (4) of this section: 25
433715
434- (v) The replacement reserves delivered under subparagraph (iv)2 of 31
435-this paragraph for a residential condominium shall be equal to at least the reserve funding 32
436-amount recommended in the reserve study completed under § 11–109.4 of this title as of 33
437-the date of the meeting. 34 10 HOUSE BILL 705
716+ (i) An action may not be taken and a matter may not be discussed if 26
717+it is not permitted by item (4) of this section; and 27
718+
719+ (ii) A statement of the time, place, and purpose of a closed meeting, 28
720+the record of the vote of each board or committee member by which the meeting was closed, 29
721+and the authority under this section for closing a meeting shall be included in the minutes 30
722+of the next meeting of the board of directors or the committee of the homeowners 31
723+association; and 32
724+ 16 HOUSE BILL 705
438725
439726
727+ (6) (i) If the number of lot owners present in person or by proxy at a 1
728+properly called meeting is insufficient to constitute a quorum, an additional meeting of the 2
729+lot owners may be called for the same purpose if: 3
440730
441- (vi) 1. This subparagraph does not apply to a contract entered 1
442-into before October 1, 2009. 2
731+ 1. The notice of the initial properly called meeting stated: 4
443732
444- 2. A. In this subparagraph, “contract” means an 3
445-agreement with a company or individual to handle financial matters, maintenance, or 4
446-services for the condominium. 5
733+ A. That the procedure authorized by this item (6) might be 5
734+invoked; and 6
447735
448- B. “Contract” does not include an agreement relating to the 6
449-provision of utility services or communication systems. 7
736+ B. The date, time, and place of the additional meeting; and 7
450737
451- 3. Until all members of the board of directors of the 8
452-condominium are elected by the unit owners at a transitional meeting as specified in 9
453-subparagraph (i) of this paragraph, a contract entered into by the officers or board of 10
454-directors of the condominium may be terminated, at the discretion of the board of directors 11
455-and without liability for the termination, not later than 30 days after notice. 12
738+ 2. A majority of the lot owners present vote in person or by 8
739+proxy to call for the additional meeting; 9
456740
457- (vii) If the developer fails to comply with the requirements of this 13
458-paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 14
459-Protection of the Office of the Attorney General under § 11–130(c) of this title. 15
741+ (ii) An additional meeting called under item (i) of this item shall 10
742+occur not less than 15 days after the initial properly called meeting; 11
460743
461- (d) The council of unit owners may be either incorporated as a nonstock 16
462-corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 17
463-the Corporations and Associations Article which are not inconsistent with this title. The 18
464-council of unit owners has, subject to any provision of this title, and except as provided in 19
465-item (22) of this subsection, the declaration, and bylaws, the following powers: 20
744+ (iii) 1. Not less than 10 days before the additional meeting, a 12
745+separate and distinct notice of the date, time, place, and purpose of the additional meeting 13
746+called under item (i) of this item shall be: 14
466747
467- (1) To have perpetual existence, subject to the right of the unit owners to 21
468-terminate the condominium regime as provided in § 11–123 of this title; 22
748+ A. Delivered, mailed, or sent by electronic transmission, if 15
749+the requirements of § 11B–113.1 of this title are met, to each lot owner at the address shown 16
750+on the roster maintained by the homeowners association; 17
469751
470- (2) To adopt and amend reasonable rules and regulations; 23
752+ B. Advertised in a newspaper published in the county where 18
753+the homeowners association is located; or 19
471754
472- (3) To adopt and amend budgets for revenues, expenditures, and reserves 24
473-and collect assessments for common expenses from unit owners; 25
755+ C. If the homeowners association has a website, posted on the 20
756+homepage of the website; and 21
474757
475- (4) To sue and be sued, complain and defend, or intervene in litigation or 26
476-administrative proceedings in its own name on behalf of itself or two or more unit owners 27
477-on matters affecting the condominium; 28
758+ 2. The notice shall contain the quorum and voting provisions 22
759+of item (iv) of this item; 23
478760
479- (5) To transact its business, carry on its operations and exercise the powers 29
480-provided in this subsection in any state, territory, district, or possession of the United 30
481-States and in any foreign country; 31
761+ (iv) 1. At the additional meeting, the lot owners present in 24
762+person or by proxy constitute a quorum; and 25
482763
483- (6) To make contracts and guarantees, incur liabilities and borrow money, 32
484-sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 33
485-of its property and assets; 34
486- HOUSE BILL 705 11
764+ 2. Unless the bylaws provide otherwise, a majority of the lot 26
765+owners present in person or by proxy: 27
487766
767+ A. May approve or authorize the proposed action at the 28
768+additional meeting; and 29
488769
489- (7) To issue bonds, notes, and other obligations and secure the same by 1
490-mortgage or deed of trust of any part of its property, franchises, and income; 2
491-
492- (8) To acquire by purchase or in any other manner, to take, receive, own, 3
493-hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 4
494-interest therein, wherever located; 5
495-
496- (9) To hire and terminate managing agents and other employees, agents, 6
497-and independent contractors; 7
498-
499- (10) To purchase, take, receive, subscribe for or otherwise acquire, own, 8
500-hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 9
501-use and deal in and with, shares or other interests in, or obligation of corporations of the 10
502-State, or foreign corporations, and of associations, partnerships, and individuals; 11
503-
504- (11) To invest its funds and to lend money in any manner appropriate to 12
505-enable it to carry on the operations or to fulfill the purposes named in the declaration or 13
506-bylaws, and to take and to hold real and personal property as security for the payment of 14
507-funds so invested or loaned; 15
508-
509- (12) To regulate the use, maintena nce, repair, replacement, and 16
510-modification of common elements; 17
511-
512- (13) To cause additional improvements to be made as a part of the general 18
513-common elements; 19
514-
515- (14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 20
516-or similar interests through or over the common elements in accordance with § 11–125(f) 21
517-of this title; 22
518-
519- (15) To impose and receive any payments, fees, or charges for the use, rental, 23
520-or operation of the common elements other than limited common elements; 24
521-
522- (16) To impose charges for late payment of assessments and, after notice 25
523-and an opportunity to be heard, levy reasonable fines for violations of the declaration, 26
524-bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 27
525-
526- (17) To impose reasonable charges for the preparation and recordation of 28
527-amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 29
528-certificates, or statements of unpaid assessments; 30
529-
530- (18) To provide for the indemnification of and maintain liability insurance 31
531-for officers, directors, and any managing agent or other employee charged with the 32
532-operation or maintenance of the condominium; 33
533-
534- (19) To enforce the implied warranties made to the council of unit owners by 34
535-the developer under § 11–131 of this title; 35 12 HOUSE BILL 705
536-
537-
538-
539- (20) To enforce the provisions of this title, the declaration, bylaws, and rules 1
540-and regulations of the council of unit owners against any unit owner or occupant; 2
541-
542- (21) Generally, to exercise the powers set forth in this title and the 3
543-declaration or bylaws and to do every other act not inconsistent with law, which may be 4
544-appropriate to promote and attain the purposes set forth in this title, the declaration or 5
545-bylaws; and 6
546-
547- (22) To designate parking for individuals with disabilities, notwithstanding 7
548-any provision in the declaration, bylaws, or rules and regulations. 8
549-
550- (e) A unit owner may not have any right, title, or interest in any property owned 9
551-by the council of unit owners other than as holder of a percentage interest in common 10
552-expenses and common profits appurtenant to his unit. 11
553-
554- (f) A unit owner’s rights as holder of a percentage interest in common expenses 12
555-and common profits are such that: 13
556-
557- (1) A unit owner’s right to possess, use, or enjoy property of the council of 14
558-unit owners shall be as provided in the bylaws; and 15
559-
560- (2) A unit owner’s interest in the property is not assignable or attachable 16
561-separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 17
562-
563-11–139.3. 18
564-
565- (a) (1) Notwithstanding language contained in the governing documents of the 19
566-council of unit owners, the board of directors may authorize any meetings of the council of 20
567-unit owners, the board of directors, or a committee of the council of unit owners or the board 21
568-of directors to be conducted or attended by telephone conference, video conference, or 22
569-similar electronic means. 23
570-
571- (2) If a meeting is conducted by telephone conference, video conference, or 24
572-similar electronic means[, the]: 25
573-
574- (I) THE equipment or system used must permit any unit owner, 26
575-board member, or committee member in attendance to hear and be heard by all others 27
576-participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS; 28
577-
578- (II) THE PERSON CONDUCTING THE MEETING SHALL ALLOW 29
579-ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 30
580-
581- 1. BE HEARD BY ALL OTHER S PARTICIPATING IN T HE 31
582-MEETING; AND 32
583- HOUSE BILL 705 13
584-
585-
586- 2. PARTICIPATE IN THE MEETING TO THE S AME EXTENT 1
587-AS IF THE MEETING WE RE CONDUCTED IN PERS ON; 2
588-
589- (III) PROVIDED THAT ALL PAR TICIPANTS ARE GRANTED T HE 3
590-ABILITY TO UNMUTE TH EMSELVES, THE PERSON CONDUCTIN G THE MEETING OR 4
591-THE PERSON’S DESIGNEE MAY MUTE ALL PARTICIPANTS : 5
592-
593- 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 6
594-CONDUCTING BUSINESS ; 7
595-
596- 2. DURING PRESENTATIONS ; AND 8
597-
598- 3. TO AVOID INTERFERENCE FROM BACKGROUND 9
599-NOISE; AND 10
600-
601- (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 11
602-CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 12
603-PERSON’S DESIGNEE MAY : 13
604-
605- 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 14
606-UNMUTE; AND 15
607-
608- 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 16
609-MEETING AFTER WARNIN G THE PARTICIPANT . 17
610-
611- (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 18
612-ELECTRONIC MEANS , ALL PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY 19
613-CHAT FUNCTION . 20
614-
615- (4) A link or instructions on how to access the meeting by telephone 21
616-conference, video conference, or similar electronic means shall be included in the notice of 22
617-the meeting. 23
618-
619- [(4)] (5) No specific authorization from unit owners shall be required to 24
620-hold a meeting electronically. 25
621-
622- (6) A MEETING OF THE GOVER NING BODY HELD BY ELECTRONIC 26
623-TRANSMISSION MAY BE HELD ONLY IN ACCORDA NCE WITH § 11–109 OF THIS TITLE. 27
624-
625- (b) Any unit owner, board member, or committee member attending a meeting by 28
626-telephone conference, video conference, or similar electronic means shall be deemed present 29
627-for quorum and voting purposes. 30
628- 14 HOUSE BILL 705
629-
630-
631- (c) (1) (i) Any matter requiring a vote of the council of unit owners may be 1
632-set by the board of directors for a vote at the meeting, and a ballot may be delivered to unit 2
633-owners with notice of the meeting. 3
634-
635- (ii) Only those unit owners present during the telephone conference, 4
636-video conference, or similar electronic meeting shall be authorized to vote by ballot in 5
637-accordance with this subsection. 6
638-
639- (iii) Unit owners who are not present at the meeting may: 7
640-
641- 1. Vote by proxy in accordance with the requirements of the 8
642-governing documents and this title; and 9
643-
644- 2. Be considered present for quorum purposes through their 10
645-proxy. 11
646-
647- (2) (i) The board of directors may set a reasonable deadline for return 12
648-of a ballot to the council of unit owners, including return by electronic transmission. 13
649-
650- (ii) The deadline for return of the ballot shall be not later than 24 14
651-hours after the conclusion of the meeting. 15
652-
653- (d) Notwithstanding language contained in the governing documents of the 16
654-council of unit owners, nominations from the floor at the meeting are not required if at least 17
655-one candidate has been nominated to fill each open board position. 18
656-
657- (e) The inability of a unit owner to join a meeting due to technical difficulties with 19
658-the unit owner’s telephone, computer, or other electronic device does not invalidate the 20
659-meeting or any action taken at the meeting. 21
660-
661-11B–111. 22
662-
663- Except as provided in this title, and notwithstanding anything contained in any of 23
664-the documents of the homeowners association: 24
665-
666- (1) Subject to the provisions of item (4) of this section, all meetings of the 25
667-homeowners association, including meetings of the board of directors or other governing 26
668-body of the homeowners association or a committee of the homeowners association, shall 27
669-be open to all members of the homeowners association or their agents; 28
670-
671- (2) All members of the homeowners association shall be given reasonable 29
672-notice of all regularly scheduled open meetings of the homeowners association; 30
673-
674- (3) (i) This item does not apply to any meeting of a governing body that 31
675-occurs at any time before the lot owners, other than the developer, have a majority of votes 32
676-in the homeowners association, as provided in the declaration; 33
677- HOUSE BILL 705 15
678-
679-
680- (ii) Subject to item (iii) of this item and to reasonable rules adopted 1
681-by a governing body, a governing body shall provide a designated period of time during a 2
682-meeting to allow lot owners an opportunity to comment on any matter relating to the 3
683-homeowners association; 4
684-
685- (iii) During a meeting at which the agenda is limited to specific topics 5
686-or at a special meeting, the lot owners’ comments may be limited to the topics listed on the 6
687-meeting agenda; and 7
688-
689- (iv) The governing body shall convene at least one meeting each year 8
690-at which the agenda is open to any matter relating to the homeowners association; 9
691-
692- (4) A meeting of the board of directors or other governing body of the 10
693-homeowners association or a committee of the homeowners association may be held in 11
694-closed session only for the following purposes: 12
695-
696- (i) Discussion of matters pertaining to employees and personnel; 13
697-
698- (ii) Protection of the privacy or reputation of individuals in matters 14
699-not related to the homeowners association’s business; 15
700-
701- (iii) Consultation with legal counsel on legal matters; 16
702-
703- (iv) Consultation with staff personnel, consultants, attorneys, board 17
704-members, or other persons in connection with pending or potential litigation or other legal 18
705-matters; 19
706-
707- (v) Investigative proceedings concerning possible or actual criminal 20
708-misconduct; 21
709-
710- (vi) Consideration of the terms or conditions of a business 22
711-transaction in the negotiation stage if the disclosure could adversely affect the economic 23
712-interests of the homeowners association; 24
713-
714- (vii) Compliance with a specific constitutional, statutory, or judicially 25
715-imposed requirement protecting particular proceedings or matters from public disclosure; 26
716-or 27
717-
718- (viii) Discussion of individual owner assessment accounts; 28
719-
720- (5) If a meeting is held in closed session under item (4) of this section: 29
721-
722- (i) An action may not be taken and a matter may not be discussed if 30
723-it is not permitted by item (4) of this section; and 31
724-
725- (ii) A statement of the time, place, and purpose of a closed meeting, 32
726-the record of the vote of each board or committee member by which the meeting was closed, 33 16 HOUSE BILL 705
727-
728-
729-and the authority under this section for closing a meeting shall be included in the minutes 1
730-of the next meeting of the board of directors or the committee of the homeowners 2
731-association; and 3
732-
733- (6) (i) If the number of lot owners present in person or by proxy at a 4
734-properly called meeting is insufficient to constitute a quorum, an additional meeting of the 5
735-lot owners may be called for the same purpose if: 6
736-
737- 1. The notice of the initial properly called meeting stated: 7
738-
739- A. That the procedure authorized by this item (6) might be 8
740-invoked; and 9
741-
742- B. The date, time, and place of the additional meeting; and 10
743-
744- 2. A majority of the lot owners present vote in person or by 11
745-proxy to call for the additional meeting; 12
746-
747- (ii) An additional meeting called under item (i) of this item shall 13
748-occur not less than 15 days after the initial properly called meeting; 14
749-
750- (iii) 1. Not less than 10 days before the additional meeting, a 15
751-separate and distinct notice of the date, time, place, and purpose of the additional meeting 16
752-called under item (i) of this item shall be: 17
753-
754- A. Delivered, mailed, or sent by electronic transmission, if 18
755-the requirements of § 11B–113.1 of this title are met, to each lot owner at the address shown 19
756-on the roster maintained by the homeowners association; 20
757-
758- B. Advertised in a newspaper published in the county where 21
759-the homeowners association is located; or 22
760-
761- C. If the homeowners association has a website, posted on the 23
762-homepage of the website; and 24
763-
764- 2. The notice shall contain the quorum and voting provisions 25
765-of item (iv) of this item; 26
766-
767- (iv) 1. At the additional meeting, the lot owners present in 27
768-person or by proxy constitute a quorum; and 28
769-
770- 2. Unless the bylaws provide otherwise, a majority of the lot 29
771-owners present in person or by proxy: 30
772-
773- A. May approve or authorize the proposed action at the 31
774-additional meeting; and 32
770+ B. May take any other action that could have been taken at 30
771+the original meeting if a sufficient number of lot owners had been present; and 31
775772 HOUSE BILL 705 17
776773
777774
778- B. May take any other action that could have been taken at 1
779-the original meeting if a sufficient number of lot owners had been present; and 2
775+ (v) This item (6) may not be construed to affect the percentage of 1
776+votes required to amend the declaration or bylaws or to take any other action required to 2
777+be taken by a specified percentage of votes. 3
780778
781- (v) This item (6) may not be construed to affect the percentage of 3
782-votes required to amend the declaration or bylaws or to take any other action required to 4
783-be taken by a specified percentage of votes. 5
779+11B–113.6. 4
784780
785-11B–113.6. 6
781+ (a) (1) Notwithstanding language contained in the governing documents of the 5
782+homeowners association, the governing body may authorize meetings of the homeowners 6
783+association, the governing body, or a committee of the homeowners association to be 7
784+conducted or attended by telephone conference, video conference, or similar electronic 8
785+means. 9
786786
787- (a) (1) Notwithstanding language contained in the governing documents of the 7
788-homeowners association, the governing body may authorize meetings of the homeowners 8
789-association, the governing body, or a committee of the homeowners association to be 9
790-conducted or attended by telephone conference, video conference, or similar electronic 10
791-means. 11
787+ (2) If a meeting is conducted by telephone conference, video conference, or 10
788+similar electronic means[, the]: 11
792789
793- (2) If a meeting is conducted by telephone conference, video conference, or 12
794-similar electronic means[, the]: 13
790+ (I) THE equipment or system used must permit any lot owner, board 12
791+member, or committee member in attendance to hear and be heard by all others 13
792+participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS; 14
795793
796- (I) THE equipment or system used must permit any lot owner, board 14
797-member, or committee member in attendance to hear and be heard by all others 15
798-participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS; 16
794+ (II) THE PERSO N CONDUCTING THE MEE TING SHALL ALLOW 15
795+ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 16
799796
800- (II) THE PERSON CONDUCTING THE MEETING SHALL AL LOW 17
801-ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 18
797+ 1. BE HEARD BY ALL OTHER S PARTICIPATING IN T HE 17
798+MEETING; AND 18
802799
803- 1. BE HEARD BY ALL OTHER S PARTICIPATING IN T HE 19
804-MEETING; AND 20
800+ 2. PARTICIPATE IN THE MEETING TO THE S AME EXTENT 19
801+AS IF THE MEETING WE RE CONDUCTED IN PERS ON; 20
805802
806- 2. PARTICIPATE IN THE MEETING TO THE S AME EXTENT 21
807-AS IF THE MEETING WE RE CONDUCTED IN PERS ON; 22
803+ (III) PROVIDED THAT ALL PAR TICIPANTS ARE GRANTE D THE 21
804+ABILITY TO UNMUTE TH EMSELVES, THE PERSON CONDUCTIN G THE MEETING OR 22
805+THE PERSON’S DESIGNEE MAY MUTE ALL PARTICIPANTS : 23
808806
809- (III) PROVIDED THAT ALL PARTICIPANT S ARE GRANTED THE 23
810-ABILITY TO UNMUTE TH EMSELVES, THE PERSON CONDUCTIN G THE MEETING OR 24
811-THE PERSON’S DESIGNEE MAY MUTE ALL PARTICIPANTS : 25
807+ 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 24
808+CONDUCTING BUSINESS ; 25
812809
813- 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 26
814-CONDUCTING BUSINESS ; 27
810+ 2. DURING PRES ENTATIONS; AND 26
815811
816- 2. DURING PRESENTATIONS ; AND 28
812+ 3. TO AVOID INTERFERENCE FROM BACKGROUND 27
813+NOISE; AND 28
817814
818- 3. TO AVOID INTERFERENCE FROM BACKGROUND 29
819-NOISE; AND 30
815+ (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 29
816+CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 30
817+PERSON’S DESIGNEE MAY : 31
820818 18 HOUSE BILL 705
821819
822820
823- (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 1
824-CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 2
825-PERSON’S DESIGNEE MAY : 3
821+ 1. REVOKE THE ABILITY FO R THE PARTICIP ANT TO 1
822+UNMUTE; AND 2
826823
827- 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 4
828-UNMUTE; AND 5
824+ 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 3
825+MEETING AFTER WARNIN G THE PARTICIPANT . 4
829826
830- 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 6
831-MEETING AFTER WARNIN G THE PARTICIPANT . 7
827+ (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 5
828+ELECTRONIC MEANS , ALL PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY 6
829+CHAT FUNCTION. 7
832830
833- (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 8
834-ELECTRONIC MEANS , ALL PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY 9
835-CHAT FUNCTION . 10
831+ (4) A link or instructions on how to access the meeting by telephone 8
832+conference, video conference, or similar electronic means shall be included in the notice of 9
833+the meeting. 10
836834
837- (4) A link or instructions on how to access the meeting by telephone 11
838-conference, video conference, or similar electronic means shall be included in the notice of 12
839-the meeting. 13
835+ [(4)] (5) No specific authorization from lot owners shall be required to 11
836+hold a meeting electronically. 12
840837
841- [(4)] (5) No specific authorization from lot owners shall be required to 14
842-hold a meeting electronically. 15
838+ (6) A MEETING OF THE GOVER NING BODY HELD BY ELECTRONIC 13
839+TRANSMISSION MAY BE HELD ONLY IN ACCORDA NCE WITH § 11B–111 OF THIS TITLE. 14
843840
844- (6) A MEETING OF THE GOVER NING BODY HELD BY ELECTRONIC 16
845-TRANSMISSION MAY BE HELD ONLY IN ACCORDA NCE WITH § 11B–111 OF THIS TITLE. 17
841+ (b) Any lot owner, board member, or committee member attending a meeting by 15
842+telephone conference, video conference, or similar electronic means shall be deemed present 16
843+for quorum and voting purposes. 17
846844
847- (b) Any lot owner, board member, or committee member attending a meeting by 18
848-telephone conference, video conference, or similar electronic means shall be deemed present 19
849-for quorum and voting purposes. 20
845+ (c) (1) (i) Any matter requiring a vote of the homeowners association may 18
846+be set by the governing body for a vote at the meeting, and a ballot may be delivered to 19
847+members with notice of the meeting. 20
850848
851- (c) (1) (i) Any matter requiring a vote of the homeowners association may 21
852-be set by the governing body for a vote at the meeting, and a ballot may be delivered to 22
853-members with notice of the meeting. 23
849+ (ii) Only those lot owners present during the telephone conference, 21
850+video conference, or similar electronic meeting shall be authorized to vote a ballot in 22
851+accordance with this subsection. 23
854852
855- (ii) Only those lot owners present during the telephone conference, 24
856-video conference, or similar electronic meeting shall be authorized to vote a ballot in 25
857-accordance with this subsection. 26
853+ (iii) Lot owners who are not present at the meeting may: 24
858854
859- (iii) Lot owners who are not present at the meeting may: 27
855+ 1. Vote by proxy in accordance with the requirements of the 25
856+governing documents and this title; and 26
860857
861- 1. Vote by proxy in accordance with the requirements of the 28
862-governing documents and this title; and 29
858+ 2. Be considered present for quorum purposes through their 27
859+proxy. 28
863860
864- 2. Be considered present for quorum purposes through their 30
865-proxy. 31
861+ (2) (i) The governing body may set a reasonable deadline for return of 29
862+a ballot to the homeowners association, including return by electronic transmission. 30
866863
867- (2) (i) The governing body may set a reasonable deadline for return of 32
868-a ballot to the homeowners association, including return by electronic transmission. 33 HOUSE BILL 705 19
864+ (ii) The deadline for return of the ballot shall be not later than 24 31
865+hours after the conclusion of the meeting. 32
866+ HOUSE BILL 705 19
869867
870868
869+ (d) Notwithstanding language contained in the governing documents of the 1
870+homeowners association, nominations from the floor at the meeting are not required if at 2
871+least one candidate has been nominated to fill each open position in the governing body. 3
871872
872- (ii) The deadline for return of the ballot shall be not later than 24 1
873-hours after the conclusion of the meeting. 2
873+ (e) The inability of a lot owner to join a meeting due to technical difficulties with 4
874+the lot owner’s telephone, computer, or other electronic device does not invalidate the 5
875+meeting or any action taken at the meeting. 6
874876
875- (d) Notwithstanding language contained in the governing documents of the 3
876-homeowners association, nominations from the floor at the meeting are not required if at 4
877-least one candidate has been nominated to fill each open position in the governing body. 5
878-
879- (e) The inability of a lot owner to join a meeting due to technical difficulties with 6
880-the lot owner’s telephone, computer, or other electronic device does not invalidate the 7
881-meeting or any action taken at the meeting. 8
882-
883- SECTION 2. AND BE IT FURTHER ENACTED, That this Ac t shall take effect 9
884-October 1, 2024. 10
877+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
878+October 1, 2024. 8
885879
886880
887-
888-
889-Approved:
890-________________________________________________________________________________
891- Governor.
892-________________________________________________________________________________
893- Speaker of the House of Delegates.
894-________________________________________________________________________________
895- President of the Senate.