Maryland 2024 Regular Session

Maryland Senate Bill SB206 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	WES MOORE, Governor Ch. 254
2	1
3		-	– 1 –
4		-	Chapter 254
5		-	(Senate Bill 206)
6	2
7		-	AN ACT concerning
	3	+	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
	4	+	[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.
	8	+	sb0206
8	9
9		-	Condominiums – Common Elements – Clean Energy Equipment
	10	+	SENATE BILL 206
	11	+	N1, M5 4lr1056
	12	+	SB 593/23 – JPR (PRE–FILED) CF HB 216
	13	+	By: Senator Smith
	14	+	Requested: October 20, 2023
	15	+	Introduced and read first time: January 10, 2024
	16	+	Assigned to: Judicial Proceedings
	17	+	Committee Report: Favorable with amendments
	18	+	Senate action: Adopted
	19	+	Read second time: February 13, 2024
10	20
11		-	FOR the purpose of authorizing certain governing bodies the board of directors of a
12		-	condominium to grant certain interests affecting the common elements of the
13		-	condominium for the installation and use of leased clean energy equipment; and
14		-	generally relating to the common elements of a condominium and leased clean
15		-	energy equipment.
	21	+	CHAPTER ______
16	22
17		-	BY repealing and reenacting, with amendments,
18		-	Article – Real Property
19		-	Section 11–125
20		-	Annotated Code of Maryland
21		-	(2023 Replacement Volume)
	23	+	AN ACT concerning 1
22	24
23		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
24		-	That the Laws of Maryland read as follows:
	25	+	Condominiums – Common Elements – Clean Energy Equipment 2
25	26
26		-	Article – Real Property
	27	+	FOR the purpose of authorizing certain governing bodies the board of directors of a 3
	28	+	condominium to grant certain interests affecting the common elements of the 4
	29	+	condominium for the installation and use of leased clean energy equipment; and 5
	30	+	generally relating to the common elements of a condominium and leased clean 6
	31	+	energy equipment. 7
27	32
28		-	11–125.
	33	+	BY repealing and reenacting, with amendments, 8
	34	+	Article – Real Property 9
	35	+	Section 11–125 10
	36	+	Annotated Code of Maryland 11
	37	+	(2023 Replacement Volume) 12
29	38
30		-	(a) The existing physical boundaries of any unit or common element constructed
31		-	or reconstructed in substantial conformity with the condominium plat shall be conclusively
32		-	presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement
33		-	of any building and regardless of minor variations between the physical boundaries as
34		-	described in the declaration or shown on the condominium plat and the existing physical
35		-	boundaries of any such unit or common element. This presumption applies only to
36		-	encroachments within the condominium.
	39	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
	40	+	That the Laws of Maryland read as follows: 14
37	41
38		-	(b) If any portion of any common element encroaches on any unit or if any portion
39		-	of a unit encroaches on any common element or any other unit, as a result of the duly
40		-	authorized construction or repair of a building, a valid easement for the encroachment and
41		-	for the maintenance of the encroachment exists so long as the building stands.
	42	+	Article – Real Property 15
42	43
43		-	(c) An easement for mutual support shall exist in the units and common
44		-	elements.
	44	+	11–125. 16
45	45
46		-	(d) The grant or other disposition of a condominium unit shall include and grant,
47		-	and be subject to, any easement arising under the provisions of this section without specific
48		-	or particular reference to the easement.
49		-	Ch. 254 2024 LAWS OF MARYLAND
	46	+	(a) The existing physical boundaries of any unit or common element constructed 17
	47	+	or reconstructed in substantial conformity with the condominium plat shall be conclusively 18
	48	+	presumed to be its boundaries, regardless of the shifting, settlement, or lateral movement 19 2 SENATE BILL 206
50	49
51		-	– 2 –
52		-	(e) (1) The council of unit owners or its authorized designee shall have an
53		-	irrevocable right and an easement to enter units to investigate damage or make repairs
54		-	when the investigation or repairs reasonably appear necessary for public safety or to
55		-	prevent damage to other portions of the condominium.
56	50
57		-	(2) Except in cases involving manifest danger to public safety or property,
58		-	the council of unit owners shall make a reasonable effort to give notice to the owner of any
59		-	unit to be entered for the purpose of investigation or repair.
	51	+	of any building and regardless of minor variations between the physical boundaries as 1
	52	+	described in the declaration or shown on the condominium plat and the existing physical 2
	53	+	boundaries of any such unit or common element. This presumption applies only to 3
	54	+	encroachments within the condominium. 4
60	55
61		-	(3) If damage is inflicted on the common elements or any unit through
62		-	which access is taken, the council of unit owners is liable for the prompt repair.
	56	+	(b) If any portion of any common element encroaches on any unit or if any portion 5
	57	+	of a unit encroaches on any common element or any other unit, as a result of the duly 6
	58	+	authorized construction or repair of a building, a valid easement for the encroachment and 7
	59	+	for the maintenance of the encroachment exists so long as the building stands. 8
63	60
64		-	(4) An ~~entry by~~ the ~~council of unit owners for the purposes specified in this~~
65		-	~~subsection may not be considered a trespass~~.
	61	+	(c) An easement for mutual support shall exist in the units and common 9
	62	+	elements. 10
66	63
67		-	(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS
68		-	SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to
69		-	grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests
70		-	affecting the common elements of the condominium if the grant is approved by the
71		-	affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes,
72		-	and with the express written consent of the mortgagees holding an interest in those units
73		-	as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar
74		-	interest granted by the council of unit owners under this subsection shall state that the
75		-	grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the
76		-	votes, and by the corresponding mortgagees.
	64	+	(d) The grant or other disposition of a condominium unit shall include and grant, 11
	65	+	and be subject to, any easement arising under the provisions of this section without specific 12
	66	+	or particular reference to the easement. 13
77	67
78		-	(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS
79		-	SUBSECTION, THE board of directors may, by majority vote, grant easements,
80		-	rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of
81		-	utility services or communication systems for the exclusive benefit of units within the
82		-	condominium regime. These actions by the board of directors are subject to the following
83		-	requirements:
	68	+	(e) (1) The council of unit owners or its authorized designee shall have an 14
	69	+	irrevocable right and an easement to enter units to investigate damage or make repairs 15
	70	+	when the investigation or repairs reasonably appear necessary for public safety or to 16
	71	+	prevent damage to other portions of the condominium. 17
84	72
85		-	(i) The action shall be taken at a meeting of the board held after at
86		-	least 30–days’ notice to all unit owners and mortgagees of record with the condominium;
	73	+	(2) Except in cases involving manifest danger to public safety or property, 18
	74	+	the council of unit owners shall make a reasonable effort to give notice to the owner of any 19
	75	+	unit to be entered for the purpose of investigation or repair. 20
87	76
88		-	(ii) At the meeting, the board may not act until all unit owners and
89		-	mortgagees shall be afforded a reasonable opportunity to present their views on the
90		-	proposed easement, right–of–way, license, lease, or similar interest; AND
	77	+	(3) If damage is inflicted on the common elements or any unit through 21
	78	+	which access is taken, the council of unit owners is liable for the prompt repair. 22
91	79
92		-	(~~iii~~) The ~~easement, right–~~of~~–way, license,~~ ~~lease, or similar interest~~
93		-	~~shall contain the following provisions:~~
	80	+	(4) An entry by the council of unit owners for the purposes specified in this 23
	81	+	subsection may not be considered a trespass. 24
94	82
95		-	1. The service or system shall be installed or affixed to the
96		-	premises at no cost to the individual unit owners or the council of unit owners other than WES MOORE, Governor Ch. 254
	83	+	(f) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 25
	84	+	SUBSECTION, THE declaration or bylaws may give the council of unit owners authority to 26
	85	+	grant easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 27
	86	+	affecting the common elements of the condominium if the grant is approved by the 28
	87	+	affirmative vote of unit owners having [66 2/3 percent] TWO–THIRDS or more of the votes, 29
	88	+	and with the express written consent of the mortgagees holding an interest in those units 30
	89	+	as to which unit owners vote affirmatively. Any easement, right–of–way, license, or similar 31
	90	+	interest granted by the council of unit owners under this subsection shall state that the 32
	91	+	grant was approved by unit owners having at least [66 2/3 percent] TWO–THIRDS of the 33
	92	+	votes, and by the corresponding mortgagees. 34
97	93
98		-	~~– 3 –~~
99		-	~~charges normally paid for like services~~ by ~~residents of similar or comparable dwelling units~~
100		-	~~within~~ the ~~same area;~~
	94	+	(2) [The] EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS 35
	95	+	SUBSECTION, THE board of directors may, by majority vote, grant easements, 36
	96	+	rights–of–way, licenses, leases in excess of 1 year, or similar interests for the provision of 37 SENATE BILL 206 3
101	97
102		-	2. The unit owners and council of unit owners shall be
103		-	indemnified for any damage arising out of the installation of the service or system; and
104	98
105		-	3. The board of directors shall be provided the right to
106		-	approve of the design for installation of the service or system in order to insure that the
107		-	installation conforms to any conditions which are reasonable to protect the safety,
108		-	functioning, and appearance of the premises.
	99	+	utility services or communication systems for the exclusive benefit of units within the 1
	100	+	condominium regime. These actions by the board of directors are subject to the following 2
	101	+	requirements: 3
109	102
110		-	(3) By majority vote, the board of directors may grant to the State
111		-	perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests
112		-	affecting the common elements of the condominium for bulkhead construction, dune
113		-	construction or restoration, beach replenishment, or periodic maintenance and replacement
114		-	construction, on Maryland’s ocean beaches, including rights in the State to restrict access
115		-	to dune areas. These actions by the board of directors are subject to the following
116		-	requirements:
	103	+	(i) The action shall be taken at a meeting of the board held after at 4
	104	+	least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 5
117	105
118		-	(i) The ~~action shall be taken at a~~ meeting of the board ~~held after at~~
119		-	~~least 30–days’ notice~~ to ~~all unit owners and mortgagees of record with~~ the ~~condominium;~~
120		-	and
	106	+	(ii) At the meeting, the board may not act until all unit owners and 6
	107	+	mortgagees shall be afforded a reasonable opportunity to present their views on the 7
	108	+	proposed easement, right–of–way, license, lease, or similar interest; AND 8
121	109
122		-	(ii) At the meeting, the board may not act until all unit owners and
123		-	mortgagees shall be afforded a reasonable opportunity to present their views on the
124		-	proposed easement, right–of–way, license, lease, or similar interest.
	110	+	(iii) The easement, right–of–way, license, lease, or similar interest 9
	111	+	shall contain the following provisions: 10
125	112
126		-	(4) By majority vote, the board of directors may settle an eminent domain
127		-	proceeding or grant to the State or any county, municipality, or agency or instrumentality
128		-	thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases
129		-	in excess of 1 year, or similar interests affecting the common elements of the condominium
130		-	for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public
131		-	purposes. These actions by the board of directors are subject to the following requirements:
	113	+	1. The service or system shall be installed or affixed to the 11
	114	+	premises at no cost to the individual unit owners or the council of unit owners other than 12
	115	+	charges normally paid for like services by residents of similar or comparable dwelling units 13
	116	+	within the same area; 14
132	117
133		-	(i) The action shall be taken at a meeting of the board held after at
134		-	least 60–days’ notice to all unit owners and all first mortgagees listed with the
135		-	condominium;
	118	+	2. The unit owners and council of unit owners shall be 15
	119	+	indemnified for any damage arising out of the installation of the service or system; and 16
136	120
137		-	(ii) The notice shall include information provided by the
138		-	condemnation authority that describes the purpose and the extent of the property being
139		-	acquired for public use; and
	121	+	3. The board of directors shall be provided the right to 17
	122	+	approve of the design for installation of the service or system in order to insure that the 18
	123	+	installation conforms to any conditions which are reasonable to protect the safety, 19
	124	+	functioning, and appearance of the premises. 20
140	125
141		-	(iii) At the meeting, the board may not act until all unit owners and
142		-	mortgagees in attendance have been afforded a reasonable opportunity to present their
143		-	views on the proposed easement, right–of–way, license, lease, or similar interest.
144		-	Ch. 254 2024 LAWS OF MARYLAND
	126	+	(3) By majority vote, the board of directors may grant to the State 21
	127	+	perpetual easements, rights–of–way, licenses, leases in excess of 1 year, or similar interests 22
	128	+	affecting the common elements of the condominium for bulkhead construction, dune 23
	129	+	construction or restoration, beach replenishment, or periodic maintenance and replacement 24
	130	+	construction, on Maryland’s ocean beaches, including rights in the State to restrict access 25
	131	+	to dune areas. These actions by the board of directors are subject to the following 26
	132	+	requirements: 27
145	133
146		-	– 4 –
147		-	(5) (I) IN THIS PARAGRAPH , “CLEAN ENERGY EQUIPME NT” MEANS
148		-	ELECTRIC V EHICLE RECHARGING EQ UIPMENT, SOLAR ENERGY EQUIPME NT, AND
149		-	ENERGY STORAGE SYSTE MS.
	134	+	(i) The action shall be taken at a meeting of the board held after at 28
	135	+	least 30–days’ notice to all unit owners and mortgagees of record with the condominium; 29
	136	+	and 30
150	137
151		-	(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH ,
152		-	THE BOARD OF DIRECTO RS, BY A MAJORITY VOTE , OR THE COUNCIL OF UN IT
153		-	OWNERS, BY THE AFFIRMATIVE V OTE OF UNIT OWNERS H AVING AT LEAST 51% OF
154		-	THE VOTES IN THE COU NCIL, MAY GRANT LEASES IN EXCESS OF 1 YEAR OR SIMILAR
155		-	INTERESTS AFFECTING THE COMMON ELEMENTS OF THE CONDOMINIUM F OR THE
156		-	INSTALLATION AND USE OF LEASED CLEAN ENER GY EQUIPMENT .
	138	+	(ii) At the meeting, the board may not act until all unit owners and 31
	139	+	mortgagees shall be afforded a reasonable opportunity to present their views on the 32
	140	+	proposed easement, right–of–way, license, lease, or similar interest. 33
157	141
158		-	(III) THE BOARD OF DIRECTOR S MAY GRA NT AN INTEREST
159		-	UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AFTER AT LEAST
160		-	30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD .
	142	+	(4) By majority vote, the board of directors may settle an eminent domain 34
	143	+	proceeding or grant to the State or any county, municipality, or agency or instrumentality 35
	144	+	thereof with condemnation authority, perpetual easements, rights–of–way, licenses, leases 36
	145	+	in excess of 1 year, or similar interests affecting the common elements of the condominium 37 4 SENATE BILL 206
161	146
162		-	(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT
163		-	OVERRULE A VOTE TO G RANT AN INTEREST UND ER THIS PARAGRAPH .
164	147
165		-	[(5)] (6) The action of the board of directors granting any easement,
166		-	right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this
167		-	subsection shall not be final until the following have occurred:
	148	+	for road, highway, sidewalk, bikeway, storm drain, sewer, water, utility, and similar public 1
	149	+	purposes. These actions by the board of directors are subject to the following requirements: 2
168	150
169		-	(i) Within 15 days after the vote by the board to grant an easement,
170		-	right–of–way, license, lease, or similar interest, a petition may be filed with the board of
171		-	directors signed by the unit owners having at least [15 percent] 15% of the votes calling
172		-	for a special meeting of unit owners to vote on the question of a disapproval of the action of
173		-	the board of directors granting such easement, right–of–way, license, lease, or similar
174		-	interest. If no such petition is received within 15 days, the decision of the board shall be
175		-	final;
	151	+	(i) The action shall be taken at a meeting of the board held after at 3
	152	+	least 60–days’ notice to all unit owners and all first mortgagees listed with the 4
	153	+	condominium; 5
176	154
177		-	(ii) ~~If a qualifying petition is filed, a special meeting~~ shall ~~be held no~~
178		-	~~less than 15 days or more than 30 days from receipt~~ of the ~~petition. At the special meeting,~~
179		-	~~if a quorum is not present, the decision of the board of directors shall be final~~;
	155	+	(ii) The notice shall include information provided by the 6
	156	+	condemnation authority that describes the purpose and the extent of the property being 7
	157	+	acquired for public use; and 8
180	158
181		-	(iii) 1. If a special meeting is held and [50 percent] 50% of the
182		-	unit owners present and voting disapprove the grant, and the unit owners voting to
183		-	disapprove the grant are more than [33 percent] 33% of the total votes in the condominium,
184		-	then the grant shall be void; or
	159	+	(iii) At the meeting, the board may not act until all unit owners and 9
	160	+	mortgagees in attendance have been afforded a reasonable opportunity to present their 10
	161	+	views on the proposed easement, right–of–way, license, lease, or similar interest. 11
185	162
186		-	2. If the vote of the unit owners is not more than [33 percent]
187		-	33% of the total votes in the condominium, the decision of the board or council to make the
188		-	grant shall be final;
189		-	WES MOORE, Governor Ch. 254
	163	+	(5) (I) IN THIS PARAGRAPH , “CLEAN ENERGY EQ UIPMENT” MEANS 12
	164	+	ELECTRIC VEHICLE REC HARGING EQUIPMENT , SOLAR ENERGY EQUIPME NT, AND 13
	165	+	ENERGY STORAGE SYSTE MS. 14
190	166
191		-	– 5 –
192		-	(iv) Mortgagees shall receive notice of and be entitled to attend and
193		-	speak at such special meeting; and
	167	+	(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH , 15
	168	+	THE BOARD OF DIRECTO RS, BY A MAJORITY VOTE , OR THE COUNCIL OF UN IT 16
	169	+	OWNERS, BY THE AFFIRMATIV E VOTE OF UNIT OWNER S HAVING AT LEAST 51% OF 17
	170	+	THE VOTES IN THE COU NCIL, MAY GRANT LEASES IN EXCESS OF 1 YEAR OR SIMILAR 18
	171	+	INTERESTS AFFECTING THE COMMON ELEMENTS OF THE CONDOMINIUM F OR THE 19
	172	+	INSTALLATION AND USE OF LEASED CLEAN ENER GY EQUIPMENT . 20
194	173
195		-	(v) ~~Any easement,~~ ~~right–~~of~~–way, license,~~ ~~lease, or similar~~ interest
196		-	~~granted by~~ the board ~~of directors under the provisions of this subsection shall state that~~
197		-	~~the grant was approved in accordance with the provisions~~ of ~~this subsection~~.
	174	+	(III) THE BOARD OF DIRECTORS MA Y GRANT AN INTEREST 21
	175	+	UNDER THIS PARAGRAPH ONLY AT A MEETING OF THE BOARD HELD AFTER AT LEAST 22
	176	+	30–DAYS’ NOTICE TO ALL UNIT O WNERS OF RECORD . 23
198	177
199		-	~~[(6)]~~ (7) ~~The provisions of this subsection are applicable to all~~
200		-	~~condominiums, regardless of the date they were established~~.
	178	+	(IV) A MORTGAGEE OR GROUP O F MORTGAGEES MAY NOT 24
	179	+	OVERRULE A VOTE TO G RANT AN INTEREST UND ER THIS PARAGRAPH . 25
201	180
202		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
203		-	October 1, 2024.
	181	+	[(5)] (6) The action of the board of directors granting any easement, 26
	182	+	right–of–way, license, lease, or similar interest under paragraphs (2), (3), or (4) of this 27
	183	+	subsection shall not be final until the following have occurred: 28
204	184
205		-	Approved by the Governor, April 25, 2024.
	185	+	(i) Within 15 days after the vote by the board to grant an easement, 29
	186	+	right–of–way, license, lease, or similar interest, a petition may be filed with the board of 30
	187	+	directors signed by the unit owners having at least [15 percent] 15% of the votes calling 31
	188	+	for a special meeting of unit owners to vote on the question of a disapproval of the action of 32
	189	+	the board of directors granting such easement, right–of–way, license, lease, or similar 33
	190	+	interest. If no such petition is received within 15 days, the decision of the board shall be 34
	191	+	final; 35
	192	+	SENATE BILL 206 5
	193	+
	194	+
	195	+	(ii) If a qualifying petition is filed, a special meeting shall be held no 1
	196	+	less than 15 days or more than 30 days from receipt of the petition. At the special meeting, 2
	197	+	if a quorum is not present, the decision of the board of directors shall be final; 3
	198	+
	199	+	(iii) 1. If a special meeting is held and [50 percent] 50% of the 4
	200	+	unit owners present and voting disapprove the grant, and the unit owners voting to 5
	201	+	disapprove the grant are more than [33 percent] 33% of the total votes in the condominium, 6
	202	+	then the grant shall be void; or 7
	203	+
	204	+	2. If the vote of the unit owners is not more than [33 percent] 8
	205	+	33% of the total votes in the condominium, the decision of the board or council to make the 9
	206	+	grant shall be final; 10
	207	+
	208	+	(iv) Mortgagees shall receive notice of and be entitled to attend and 11
	209	+	speak at such special meeting; and 12
	210	+
	211	+	(v) Any easement, right–of–way, license, lease, or similar interest 13
	212	+	granted by the board of directors under the provisions of this subsection shall state that 14
	213	+	the grant was approved in accordance with the provisions of this subsection. 15
	214	+
	215	+	[(6)] (7) The provisions of this subsection are applicable to all 16
	216	+	condominiums, regardless of the date they were established. 17
	217	+
	218	+	SECTION 2. AND BE IT FURTHER ENA CTED, That this Act shall take effect 18
	219	+	October 1, 2024. 19
	220	+
	221	+
	222	+
	223	+
	224	+	Approved:
	225	+	________________________________________________________________________________
	226	+	Governor.
	227	+	________________________________________________________________________________
	228	+	President of the Senate.
	229	+	________________________________________________________________________________
	230	+	Speaker of the House of Delegates.