EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW . [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0705* HOUSE BILL 705 N1 4lr2554 HB 331/23 – ENT By: Delegate Terrasa Introduced and read first time: January 26, 2024 Assigned to: Environment and Transportation Committee Report: Favorable House action: Adopted Read second time: February 23, 2024 CHAPTER ______ AN ACT concerning 1 Real Property – Cooperative Housing Corporations, Condominiums, and 2 Homeowners Associations – Virtual Meetings 3 FOR the purpose of requiring a person conducting a meeting of a cooperative housing 4 corporation, condominium, or homeowners association by telephone conference, 5 video conference, or similar electronic means to provide a participant a reasonable 6 opportunity to participate in the meeting; requiring certain participants in a meeting 7 of a cooperative housing corporation, condominium, or homeowners association to 8 have equal access to any available chat function; specifying that a meeting of a 9 cooperative housing corporation, condominium, or homeowners association by 10 electronic transmission may be held only in accordance with certain provisions of 11 law; and generally relating to cooperative housing corporations, condominiums, and 12 homeowners associations. 13 BY repealing and reenacting, without amendments, 14 Article – Corporations and Associations 15 Section 5–6B–19 16 Annotated Code of Maryland 17 (2014 Replacement Volume and 2023 Supplement) 18 BY repealing and reenacting, with amendments, 19 Article – Corporations and Associations 20 Section 5–6B–25.1 21 Annotated Code of Maryland 22 (2014 Replacement Volume and 2023 Supplement) 23 2 HOUSE BILL 705 BY repealing and reenacting, without amendments, 1 Article – Real Property 2 Section 11–109 and 11B–111 3 Annotated Code of Maryland 4 (2023 Replacement Volume) 5 BY repealing and reenacting, with amendments, 6 Article – Real Property 7 Section 11–139.3 and 11B–113.6 8 Annotated Code of Maryland 9 (2023 Replacement Volume) 10 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11 That the Laws of Maryland read as follows: 12 Article – Corporations and Associations 13 5–6B–19. 14 (a) This section applies to any meeting of a cooperative housing corporation, the 15 governing body of a cooperative housing corporation, or a committee of a cooperative 16 housing corporation, notwithstanding anything contained in the documents of the 17 cooperative housing corporation. 18 (b) Subject to the provisions of subsection (e) of this section, all meetings of the 19 cooperative housing corporation shall be open to the members of the cooperative housing 20 corporation or their agents. 21 (c) All members shall be given reasonable notice of all regularly scheduled open 22 meetings of the cooperative housing corporation. 23 (d) (1) This subsection does not apply to a meeting of a governing body that 24 occurs at any time before the members, other than the developer, have a majority of votes 25 in the cooperative housing corporation. 26 (2) Subject to paragraph (3) of this subsection and to reasonable rules 27 adopted by a governing body, a governing body shall provide a designated period of time 28 during a meeting to allow members an opportunity to comment on any matter relating to 29 the cooperative housing corporation. 30 (3) During a meeting at which the agenda is limited to specific topics or at 31 a special meeting, the comments of members may be limited to the topics listed on the 32 meeting agenda. 33 (e) (1) A meeting of a cooperative housing corporation may be held in closed 34 session only for the purpose of: 35 HOUSE BILL 705 3 (i) Discussing matters pertaining to employees and personnel; 1 (ii) Protecting the privacy or reputation of individuals in matters not 2 related to the business of the cooperative housing corporation; 3 (iii) Consulting with legal counsel on legal matters; 4 (iv) Consulting with staff personnel, consultants, attorneys, board 5 members, or other persons in connection with pending or potential litigation or other legal 6 matters; 7 (v) Conducting investigative proceedings concerning possible or 8 actual criminal misconduct; 9 (vi) Considering the terms or conditions of a business transaction in 10 the negotiation stage if the disclosure could adversely affect the economic interests of the 11 cooperative housing corporation; 12 (vii) Complying with a specific constitutional, statutory, or judicially 13 imposed requirement protecting particular proceedings or matters from public disclosure; 14 or 15 (viii) Discussing individual owner assessment accounts. 16 (2) If a meeting is held in closed session under paragraph (1) of this 17 subsection: 18 (i) An action may not be taken and a matter may not be discussed if 19 it is not permitted by paragraph (1) of this subsection; and 20 (ii) The minutes of the next meeting of the cooperative housing 21 corporation shall include: 22 1. A statement of the time, place, and purpose of a closed 23 meeting; 24 2. A record of the vote of each board or committee member by 25 which the meeting was closed; and 26 3. A statement of the authority under this subsection for 27 closing the meeting. 28 5–6B–25.1. 29 (a) (1) Notwithstanding language contained in the governing documents of the 30 cooperative housing corporation, the board of directors may authorize any meetings of the 31 4 HOUSE BILL 705 cooperative housing corporation, the board of directors, or a committee of the cooperative 1 housing corporation to be conducted or attended by telephone conference, video conference, 2 or similar electronic means. 3 (2) If a meeting is conducted by telephone conference, video conference, or 4 similar electronic means[, the]: 5 (I) THE equipment or system used must permit any member, board 6 member, or committee member in attendance to hear and be heard by all other members 7 participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS; 8 (II) THE PERSON CONDUCTING THE MEETING SHALL AL LOW 9 ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 10 1. BE HEARD BY ALL OTHER MEMBERS PARTICIPATIN G 11 IN THE MEETING ; AND 12 2. PARTICIPATE IN THE MEETING TO THE S AME EXTENT 13 AS IF THE MEETING WE RE CONDUCTED IN PERS ON; 14 (III) PROVIDED THAT ALL PAR TICIPANTS ARE GRANTE D THE 15 ABILITY TO UNMUTE TH EMSELVES, THE PERSON CONDUCTIN G THE MEETING OR 16 THE PERSON’S DESIGNEE MAY MUTE ALL PARTICIPANTS : 17 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 18 CONDUCTING BUSINESS ; 19 2. DURING PRESENTATIONS ; AND 20 3. TO AVOID INTERFERENCE FROM BACKGROUND 21 NOISE; AND 22 (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 23 CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 24 PERSON’S DESIGNEE MAY : 25 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 26 UNMUTE; AND 27 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 28 MEETING AFTER WARNIN G THE PARTICIPANT . 29 (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 30 ELECTRONIC MEANS , ALL PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY 31 CHAT FUNCTION . 32 HOUSE BILL 705 5 (4) A link or instructions on how to access the meeting by telephone 1 conference, video conference, or similar electronic means shall be included in the notice of 2 the meeting. 3 [(4)] (5) No specific authorization from members shall be required to hold 4 a meeting electronically. 5 (6) A MEETING OF THE GOVER NING BODY HELD BY ELECTRONIC 6 TRANSMISSION MAY BE HELD ONLY IN ACCORDA NCE WITH § 5–6B–19 OF THIS 7 SUBTITLE. 8 (b) Any member, board member, or committee member attending a meeting by 9 telephone conference, video conference, or similar electronic means shall be deemed present 10 for quorum and voting purposes. 11 (c) (1) (i) Any matter requiring a vote of the cooperative housing 12 corporation may be set by the board of directors for a vote at the meeting, and a ballot may 13 be delivered to members with notice of the meeting. 14 (ii) Only those members present during the telephone conference, 15 video conference, or similar electronic meeting shall be authorized to vote a ballot in 16 accordance with this subsection. 17 (iii) Members who are not present at the meeting may: 18 1. Vote by proxy in accordance with the requirements of the 19 governing documents and this title; and 20 2. Be considered present for quorum purposes through their 21 proxy. 22 (2) (i) The board of directors may set a reasonable deadline for return 23 of a ballot to the cooperative housing corporation, including return by electronic 24 transmission. 25 (ii) The deadline for return of the ballot shall be not later than 24 26 hours after the conclusion of the meeting. 27 (d) Notwithstanding language contained in the governing documents of the 28 cooperative housing corporation, nominations from the floor at the meeting are not required 29 if at least one candidate has been nominated to fill each open board position. 30 (e) The inability of a member to join a meeting due to technical difficulties with 31 the member’s telephone, computer, or other electronic device does not invalidate the 32 meeting or any action taken at the meeting. 33 6 HOUSE BILL 705 Article – Real Property 1 11–109. 2 (a) The affairs of the condominium shall be governed by a council of unit owners 3 which, even if unincorporated, is constituted a legal entity for all purposes. The council of 4 unit owners shall be comprised of all unit owners. 5 (b) The bylaws may authorize or provide for the delegation of any power of the 6 council of unit owners to a board of directors, officers, managing agent, or other person for 7 the purpose of carrying out the responsibilities of the council of unit owners. 8 (c) (1) A meeting of the council of unit owners or board of directors may not be 9 held on less notice than required by this section. 10 (2) The council of unit owners shall maintain a current roster of names and 11 addresses of each unit owner to which notice of meetings of the board of directors shall be 12 sent at least annually. 13 (3) Each unit owner shall furnish the council of unit owners with his name 14 and current mailing address. A unit owner may not vote at meetings of the council of unit 15 owners until this information is furnished. 16 (4) A regular or special meeting of the council of unit owners may not be 17 held on less than 10 nor more than 90 days’: 18 (i) Written notice delivered or mailed to each unit owner at the 19 address shown on the roster on the date of the notice; or 20 (ii) Notice sent to each unit owner by electronic transmission, if the 21 requirements of § 11–139.1 of this title are met. 22 (5) Notice of special meetings of the board of directors shall be given: 23 (i) As provided in the bylaws; or 24 (ii) If the requirements of § 11–139.1 of this title are met, by 25 electronic transmission. 26 (6) Except as provided in § 11–109.1 of this title, a meeting of a governing 27 body shall be open and held at a time and location as provided in the notice or bylaws. 28 (7) (i) This paragraph does not apply to any meeting of the governing 29 body that occurs at any time before the meeting at which the unit owners elect officers or a 30 board of directors in accordance with paragraph (16) of this subsection. 31 HOUSE BILL 705 7 (ii) Subject to subparagraph (iii) of this paragraph and to reasonable 1 rules adopted by the governing body under § 11–111 of this title, a governing body shall 2 provide a designated period of time during a meeting to allow unit owners an opportunity 3 to comment on any matter relating to the condominium. 4 (iii) During a meeting at which the agenda is limited to specific topics 5 or at a special meeting, the unit owners’ comments may be limited to the topics listed on 6 the meeting agenda. 7 (iv) The governing body shall convene at least one meeting each year 8 at which the agenda is open to any matter relating to the condominium. 9 (8) (i) Unless the bylaws provide otherwise, a quorum is deemed 10 present throughout any meeting of the council of unit owners if persons entitled to cast 25 11 percent of the total number of votes appurtenant to all units are present in person or by 12 proxy. 13 (ii) If the number of persons present in person or by proxy at a 14 properly called meeting of the council of unit owners is insufficient to constitute a quorum, 15 an additional meeting of the council of unit owners may be called for the same purpose if: 16 1. The notice of the initial properly called meeting stated: 17 A. That the procedure authorized by this paragraph might be 18 invoked; and 19 B. The date, time, and place of the additional meeting; and 20 2. A majority of the unit owners present vote in person or by 21 proxy to call for the additional meeting. 22 (iii) 1. An additional meeting called under subparagraph (ii) of 23 this paragraph shall occur not less than 15 days after the initial properly called meeting. 24 2. Not less than 10 days before the additional meeting, a 25 separate and distinct notice of the date, time, place, and purpose of the additional meeting 26 called under subparagraph (ii) of this paragraph shall be: 27 A. Delivered, mailed, or sent by electronic transmission if the 28 requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 29 on the roster maintained under paragraph (2) of this subsection; 30 B. Advertised in a newspaper published in the county where 31 the condominium is located; or 32 C. If the condominium has a website, posted on the homepage 33 of the website. 34 8 HOUSE BILL 705 3. The notice shall contain the quorum and voting provisions 1 of subparagraph (iv) of this paragraph. 2 (iv) 1. At the additional meeting, the unit owners present in 3 person or by proxy constitute a quorum. 4 2. Unless the bylaws provide otherwise, a majority of the 5 unit owners present in person or by proxy: 6 A. May approve or authorize the proposed action at the 7 additional meeting; and 8 B. May take any other action that could have been taken at 9 the original meeting if a sufficient number of unit owners had been present. 10 (v) This paragraph may not be construed to affect the percentage of 11 votes required to amend the declaration or bylaws or to take any other action required to 12 be taken by a specified percentage of votes. 13 (9) At meetings of the council of unit owners each unit owner shall be 14 entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 15 but the proxy is effective only for a maximum period of 180 days following its issuance, 16 unless granted to a lessee or mortgagee. 17 (10) Any proxy may be revoked at any time at the pleasure of the unit owner 18 or unit owners executing the proxy. 19 (11) A proxy who is not appointed to vote as directed by a unit owner may 20 only be appointed for purposes of meeting quorums and to vote for matters of business 21 before the council of unit owners, other than an election of officers and members of the 22 board of directors. 23 (12) Only a unit owner voting in person or by electronic transmission if the 24 requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 25 by a unit owner may vote for officers and members of the board of directors. 26 (13) Unless otherwise provided in the bylaws, a unit owner may nominate 27 himself or any other person to be an officer or member of the board of directors. A call for 28 nominations shall be sent to all unit owners not less than 45 days before notice of an election 29 is sent. Only nominations made at least 15 days before notice of an election shall be listed 30 on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 31 no indicated candidate preference. Nominations may be made from the floor at the meeting 32 at which the election to the board is held. 33 (14) Election materials prepared with funds of the council of unit owners 34 shall list candidates in alphabetical order and may not indicate a candidate preference. 35 HOUSE BILL 705 9 (15) Unless otherwise provided in this title, and subject to provisions in the 1 bylaws requiring a different majority, decisions of the council of unit owners shall be made 2 on a majority of votes of the unit owners listed on the current roster present and voting. 3 (16) (i) A meeting of the council of unit owners to elect a board of 4 directors for the council of unit owners, as provided in the condominium declaration or 5 bylaws, shall be held within: 6 1. 60 days from the date that units representing 50 percent 7 of the votes in the condominium have been conveyed by the developer to members of the 8 public for residential purposes; or 9 2. If a lesser percentage is specified in the declaration or 10 bylaws of the condominium, 60 days from the date the specified lesser percentage of units 11 in the condominium are sold to members of the public for residential purposes. 12 (ii) 1. Before the date of the meeting held under subparagraph 13 (i) of this paragraph, the developer shall deliver to each unit owner notice that the 14 requirements of subparagraph (i) of this paragraph have been met. 15 2. The notice shall include the date, time, and place of the 16 meeting to elect the board of directors for the council of unit owners. 17 (iii) If a replacement board member is elected, the term of each 18 member of the board of directors appointed by the developer shall end 10 days after the 19 meeting is held as specified in subparagraph (i) of this paragraph. 20 (iv) Within 30 days from the date of the meeting held under 21 subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 22 directors for the council of unit owners, as provided in the condominium declaration or 23 bylaws, at the developer’s expense: 24 1. The documents specified in § 11–132 of this title; 25 2. The condominium funds, including operating funds, 26 replacement reserves, investment accounts, and working capital; 27 3. The tangible property of the condominium; and 28 4. A roster of current unit owners, including mailing 29 addresses, telephone numbers, and unit numbers, if known. 30 (v) The replacement reserves delivered under subparagraph (iv)2 of 31 this paragraph for a residential condominium shall be equal to at least the reserve funding 32 amount recommended in the reserve study completed under § 11–109.4 of this title as of 33 the date of the meeting. 34 10 HOUSE BILL 705 (vi) 1. This subparagraph does not apply to a contract entered 1 into before October 1, 2009. 2 2. A. In this subparagraph, “contract” means an 3 agreement with a company or individual to handle financial matters, maintenance, or 4 services for the condominium. 5 B. “Contract” does not include an agreement relating to the 6 provision of utility services or communication systems. 7 3. Until all members of the board of directors of the 8 condominium are elected by the unit owners at a transitional meeting as specified in 9 subparagraph (i) of this paragraph, a contract entered into by the officers or board of 10 directors of the condominium may be terminated, at the discretion of the board of directors 11 and without liability for the termination, not later than 30 days after notice. 12 (vii) If the developer fails to comply with the requirements of this 13 paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 14 Protection of the Office of the Attorney General under § 11–130(c) of this title. 15 (d) The council of unit owners may be either incorporated as a nonstock 16 corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 17 the Corporations and Associations Article which are not inconsistent with this title. The 18 council of unit owners has, subject to any provision of this title, and except as provided in 19 item (22) of this subsection, the declaration, and bylaws, the following powers: 20 (1) To have perpetual existence, subject to the right of the unit owners to 21 terminate the condominium regime as provided in § 11–123 of this title; 22 (2) To adopt and amend reasonable rules and regulations; 23 (3) To adopt and amend budgets for revenues, expenditures, and reserves 24 and collect assessments for common expenses from unit owners; 25 (4) To sue and be sued, complain and defend, or intervene in litigation or 26 administrative proceedings in its own name on behalf of itself or two or more unit owners 27 on matters affecting the condominium; 28 (5) To transact its business, carry on its operations and exercise the powers 29 provided in this subsection in any state, territory, district, or possession of the United 30 States and in any foreign country; 31 (6) To make contracts and guarantees, incur liabilities and borrow money, 32 sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 33 of its property and assets; 34 HOUSE BILL 705 11 (7) To issue bonds, notes, and other obligations and secure the same by 1 mortgage or deed of trust of any part of its property, franchises, and income; 2 (8) To acquire by purchase or in any other manner, to take, receive, own, 3 hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 4 interest therein, wherever located; 5 (9) To hire and terminate managing agents and other employees, agents, 6 and independent contractors; 7 (10) To purchase, take, receive, subscribe for or otherwise acquire, own, 8 hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 9 use and deal in and with, shares or other interests in, or obligation of corporations of the 10 State, or foreign corporations, and of associations, partnerships, and individuals; 11 (11) To invest its funds and to lend money in any manner appropriate to 12 enable it to carry on the operations or to fulfill the purposes named in the declaration or 13 bylaws, and to take and to hold real and personal property as security for the payment of 14 funds so invested or loaned; 15 (12) To regulate the use, maintena nce, repair, replacement, and 16 modification of common elements; 17 (13) To cause additional improvements to be made as a part of the general 18 common elements; 19 (14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 20 or similar interests through or over the common elements in accordance with § 11–125(f) 21 of this title; 22 (15) To impose and receive any payments, fees, or charges for the use, rental, 23 or operation of the common elements other than limited common elements; 24 (16) To impose charges for late payment of assessments and, after notice 25 and an opportunity to be heard, levy reasonable fines for violations of the declaration, 26 bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 27 (17) To impose reasonable charges for the preparation and recordation of 28 amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 29 certificates, or statements of unpaid assessments; 30 (18) To provide for the indemnification of and maintain liability insurance 31 for officers, directors, and any managing agent or other employee charged with the 32 operation or maintenance of the condominium; 33 (19) To enforce the implied warranties made to the council of unit owners by 34 the developer under § 11–131 of this title; 35 12 HOUSE BILL 705 (20) To enforce the provisions of this title, the declaration, bylaws, and rules 1 and regulations of the council of unit owners against any unit owner or occupant; 2 (21) Generally, to exercise the powers set forth in this title and the 3 declaration or bylaws and to do every other act not inconsistent with law, which may be 4 appropriate to promote and attain the purposes set forth in this title, the declaration or 5 bylaws; and 6 (22) To designate parking for individuals with disabilities, notwithstanding 7 any provision in the declaration, bylaws, or rules and regulations. 8 (e) A unit owner may not have any right, title, or interest in any property owned 9 by the council of unit owners other than as holder of a percentage interest in common 10 expenses and common profits appurtenant to his unit. 11 (f) A unit owner’s rights as holder of a percentage interest in common expenses 12 and common profits are such that: 13 (1) A unit owner’s right to possess, use, or enjoy property of the council of 14 unit owners shall be as provided in the bylaws; and 15 (2) A unit owner’s interest in the property is not assignable or attachable 16 separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 17 11–139.3. 18 (a) (1) Notwithstanding language contained in the governing documents of the 19 council of unit owners, the board of directors may authorize any meetings of the council of 20 unit owners, the board of directors, or a committee of the council of unit owners or the board 21 of directors to be conducted or attended by telephone conference, video conference, or 22 similar electronic means. 23 (2) If a meeting is conducted by telephone conference, video conference, or 24 similar electronic means[, the]: 25 (I) THE equipment or system used must permit any unit owner, 26 board member, or committee member in attendance to hear and be heard by all others 27 participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS; 28 (II) THE PERSON CONDUCTING THE MEETING SHALL ALLOW 29 ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 30 1. BE HEARD BY ALL OTHER S PARTICIPATING IN T HE 31 MEETING; AND 32 HOUSE BILL 705 13 2. PARTICIPATE IN THE MEETING TO THE S AME EXTENT 1 AS IF THE MEETING WE RE CONDUCTED IN PERS ON; 2 (III) PROVIDED THAT ALL PAR TICIPANTS ARE GRANTED T HE 3 ABILITY TO UNMUTE TH EMSELVES, THE PERSON CONDUCTIN G THE MEETING OR 4 THE PERSON’S DESIGNEE MAY MUTE ALL PARTICIPANTS : 5 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 6 CONDUCTING BUSINESS ; 7 2. DURING PRESENTATIONS ; AND 8 3. TO AVOID INTERFERENCE FROM BACKGROUND 9 NOISE; AND 10 (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 11 CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 12 PERSON’S DESIGNEE MAY : 13 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 14 UNMUTE; AND 15 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 16 MEETING AFTER WARNIN G THE PARTICIPANT . 17 (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 18 ELECTRONIC MEANS , ALL PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY 19 CHAT FUNCTION . 20 (4) A link or instructions on how to access the meeting by telephone 21 conference, video conference, or similar electronic means shall be included in the notice of 22 the meeting. 23 [(4)] (5) No specific authorization from unit owners shall be required to 24 hold a meeting electronically. 25 (6) A MEETING OF THE GOVER NING BODY HELD BY ELECTRONIC 26 TRANSMISSION MAY BE HELD ONLY IN ACCORDA NCE WITH § 11–109 OF THIS TITLE. 27 (b) Any unit owner, board member, or committee member attending a meeting by 28 telephone conference, video conference, or similar electronic means shall be deemed present 29 for quorum and voting purposes. 30 14 HOUSE BILL 705 (c) (1) (i) Any matter requiring a vote of the council of unit owners may be 1 set by the board of directors for a vote at the meeting, and a ballot may be delivered to unit 2 owners with notice of the meeting. 3 (ii) Only those unit owners present during the telephone conference, 4 video conference, or similar electronic meeting shall be authorized to vote by ballot in 5 accordance with this subsection. 6 (iii) Unit owners who are not present at the meeting may: 7 1. Vote by proxy in accordance with the requirements of the 8 governing documents and this title; and 9 2. Be considered present for quorum purposes through their 10 proxy. 11 (2) (i) The board of directors may set a reasonable deadline for return 12 of a ballot to the council of unit owners, including return by electronic transmission. 13 (ii) The deadline for return of the ballot shall be not later than 24 14 hours after the conclusion of the meeting. 15 (d) Notwithstanding language contained in the governing documents of the 16 council of unit owners, nominations from the floor at the meeting are not required if at least 17 one candidate has been nominated to fill each open board position. 18 (e) The inability of a unit owner to join a meeting due to technical difficulties with 19 the unit owner’s telephone, computer, or other electronic device does not invalidate the 20 meeting or any action taken at the meeting. 21 11B–111. 22 Except as provided in this title, and notwithstanding anything contained in any of 23 the documents of the homeowners association: 24 (1) Subject to the provisions of item (4) of this section, all meetings of the 25 homeowners association, including meetings of the board of directors or other governing 26 body of the homeowners association or a committee of the homeowners association, shall 27 be open to all members of the homeowners association or their agents; 28 (2) All members of the homeowners association shall be given reasonable 29 notice of all regularly scheduled open meetings of the homeowners association; 30 (3) (i) This item does not apply to any meeting of a governing body that 31 occurs at any time before the lot owners, other than the developer, have a majority of votes 32 in the homeowners association, as provided in the declaration; 33 HOUSE BILL 705 15 (ii) Subject to item (iii) of this item and to reasonable rules adopted 1 by a governing body, a governing body shall provide a designated period of time during a 2 meeting to allow lot owners an opportunity to comment on any matter relating to the 3 homeowners association; 4 (iii) During a meeting at which the agenda is limited to specific topics 5 or at a special meeting, the lot owners’ comments may be limited to the topics listed on the 6 meeting agenda; and 7 (iv) The governing body shall convene at least one meeting each year 8 at which the agenda is open to any matter relating to the homeowners association; 9 (4) A meeting of the board of directors or other governing body of the 10 homeowners association or a committee of the homeowners association may be held in 11 closed session only for the following purposes: 12 (i) Discussion of matters pertaining to employees and personnel; 13 (ii) Protection of the privacy or reputation of individuals in matters 14 not related to the homeowners association’s business; 15 (iii) Consultation with legal counsel on legal matters; 16 (iv) Consultation with staff personnel, consultants, attorneys, board 17 members, or other persons in connection with pending or potential litigation or other legal 18 matters; 19 (v) Investigative proceedings concerning possible or actual criminal 20 misconduct; 21 (vi) Consideration of the terms or conditions of a business 22 transaction in the negotiation stage if the disclosure could adversely affect the economic 23 interests of the homeowners association; 24 (vii) Compliance with a specific constitutional, statutory, or judicially 25 imposed requirement protecting particular proceedings or matters from public disclosure; 26 or 27 (viii) Discussion of individual owner assessment accounts; 28 (5) If a meeting is held in closed session under item (4) of this section: 29 (i) An action may not be taken and a matter may not be discussed if 30 it is not permitted by item (4) of this section; and 31 (ii) A statement of the time, place, and purpose of a closed meeting, 32 the record of the vote of each board or committee member by which the meeting was closed, 33 16 HOUSE BILL 705 and the authority under this section for closing a meeting shall be included in the minutes 1 of the next meeting of the board of directors or the committee of the homeowners 2 association; and 3 (6) (i) If the number of lot owners present in person or by proxy at a 4 properly called meeting is insufficient to constitute a quorum, an additional meeting of the 5 lot owners may be called for the same purpose if: 6 1. The notice of the initial properly called meeting stated: 7 A. That the procedure authorized by this item (6) might be 8 invoked; and 9 B. The date, time, and place of the additional meeting; and 10 2. A majority of the lot owners present vote in person or by 11 proxy to call for the additional meeting; 12 (ii) An additional meeting called under item (i) of this item shall 13 occur not less than 15 days after the initial properly called meeting; 14 (iii) 1. Not less than 10 days before the additional meeting, a 15 separate and distinct notice of the date, time, place, and purpose of the additional meeting 16 called under item (i) of this item shall be: 17 A. Delivered, mailed, or sent by electronic transmission, if 18 the requirements of § 11B–113.1 of this title are met, to each lot owner at the address shown 19 on the roster maintained by the homeowners association; 20 B. Advertised in a newspaper published in the county where 21 the homeowners association is located; or 22 C. If the homeowners association has a website, posted on the 23 homepage of the website; and 24 2. The notice shall contain the quorum and voting provisions 25 of item (iv) of this item; 26 (iv) 1. At the additional meeting, the lot owners present in 27 person or by proxy constitute a quorum; and 28 2. Unless the bylaws provide otherwise, a majority of the lot 29 owners present in person or by proxy: 30 A. May approve or authorize the proposed action at the 31 additional meeting; and 32 HOUSE BILL 705 17 B. May take any other action that could have been taken at 1 the original meeting if a sufficient number of lot owners had been present; and 2 (v) This item (6) may not be construed to affect the percentage of 3 votes required to amend the declaration or bylaws or to take any other action required to 4 be taken by a specified percentage of votes. 5 11B–113.6. 6 (a) (1) Notwithstanding language contained in the governing documents of the 7 homeowners association, the governing body may authorize meetings of the homeowners 8 association, the governing body, or a committee of the homeowners association to be 9 conducted or attended by telephone conference, video conference, or similar electronic 10 means. 11 (2) If a meeting is conducted by telephone conference, video conference, or 12 similar electronic means[, the]: 13 (I) THE equipment or system used must permit any lot owner, board 14 member, or committee member in attendance to hear and be heard by all others 15 participating in the meeting IN ACCORDANCE WITH T HE GOVERNING DOCUMEN TS; 16 (II) THE PERSON CONDUCTING THE MEETING SHALL AL LOW 17 ALL PARTICIPANTS A R EASONABLE OPPORTUNIT Y TO: 18 1. BE HEARD BY ALL OTHER S PARTICIPATING IN T HE 19 MEETING; AND 20 2. PARTICIPATE IN THE MEETING TO THE S AME EXTENT 21 AS IF THE MEETING WE RE CONDUCTED IN PERS ON; 22 (III) PROVIDED THAT ALL PARTICIPANT S ARE GRANTED THE 23 ABILITY TO UNMUTE TH EMSELVES, THE PERSON CONDUCTIN G THE MEETING OR 24 THE PERSON’S DESIGNEE MAY MUTE ALL PARTICIPANTS : 25 1. WHILE THE GOVERNING B ODY OR ITS DESIGNEE IS 26 CONDUCTING BUSINESS ; 27 2. DURING PRESENTATIONS ; AND 28 3. TO AVOID INTERFERENCE FROM BACKGROUND 29 NOISE; AND 30 18 HOUSE BILL 705 (IV) IF A PARTICIPANT INTE RFERES IN THE ABILIT Y TO 1 CONDUCT THE MEETING , THE PERSON CONDUCTIN G THE MEETING OR THE 2 PERSON’S DESIGNEE MAY : 3 1. REVOKE THE ABILITY FO R THE PARTICIPANT TO 4 UNMUTE; AND 5 2. IF NECESSARY, REMOVE THE PARTICIPA NT FROM THE 6 MEETING AFTER WARNIN G THE PARTICIPANT . 7 (3) IF A MEETING IS CONDU CTED BY VIDEO CONFER ENCE OR SIMILAR 8 ELECTRONIC MEANS , ALL PARTICIPANTS SHALL HAVE THE SAME ACCESS TO ANY 9 CHAT FUNCTION . 10 (4) A link or instructions on how to access the meeting by telephone 11 conference, video conference, or similar electronic means shall be included in the notice of 12 the meeting. 13 [(4)] (5) No specific authorization from lot owners shall be required to 14 hold a meeting electronically. 15 (6) A MEETING OF THE GOVER NING BODY HELD BY ELECTRONIC 16 TRANSMISSION MAY BE HELD ONLY IN ACCORDA NCE WITH § 11B–111 OF THIS TITLE. 17 (b) Any lot owner, board member, or committee member attending a meeting by 18 telephone conference, video conference, or similar electronic means shall be deemed present 19 for quorum and voting purposes. 20 (c) (1) (i) Any matter requiring a vote of the homeowners association may 21 be set by the governing body for a vote at the meeting, and a ballot may be delivered to 22 members with notice of the meeting. 23 (ii) Only those lot owners present during the telephone conference, 24 video conference, or similar electronic meeting shall be authorized to vote a ballot in 25 accordance with this subsection. 26 (iii) Lot owners who are not present at the meeting may: 27 1. Vote by proxy in accordance with the requirements of the 28 governing documents and this title; and 29 2. Be considered present for quorum purposes through their 30 proxy. 31 (2) (i) The governing body may set a reasonable deadline for return of 32 a ballot to the homeowners association, including return by electronic transmission. 33 HOUSE BILL 705 19 (ii) The deadline for return of the ballot shall be not later than 24 1 hours after the conclusion of the meeting. 2 (d) Notwithstanding language contained in the governing documents of the 3 homeowners association, nominations from the floor at the meeting are not required if at 4 least one candidate has been nominated to fill each open position in the governing body. 5 (e) The inability of a lot owner to join a meeting due to technical difficulties with 6 the lot owner’s telephone, computer, or other electronic device does not invalidate the 7 meeting or any action taken at the meeting. 8 SECTION 2. AND BE IT FURTHER ENACTED, That this Ac t shall take effect 9 October 1, 2024. 10 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.