Maryland 2025 Regular Session

Maryland House Bill HB558 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0558
6	6
7	7	HOUSE BILL 558
8	8	N1 5lr2687
9	9	HB 279/24 – ENT
10	10	By: Delegate Holmes
11	11	Introduced and read first time: January 23, 2025
12	12	Assigned to: Environment and Transportation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Common Ownership Communities – Local Commissions 2
19	19
20	20	FOR the purpose of establishing requirements for a local commission on common ownership 3
21	21	communities established by the local government of a county; and generally relating 4
22	22	to the regulation of common ownership communities 5
23	23
24	24	BY adding to 6
25	25	Article – Real Property 7
26	26	Section 11C–101 through 11C–114 to be under the new title “Title 11C. Local 8
27	27	Commissions on Common Ownership Communities” 9
28	28	Annotated Code of Maryland 10
29	29	(2023 Replacement Volume and 2024 Supplement) 11
30	30
31	31	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
32	32	That the Laws of Maryland read as follows: 13
33	33
34	34	Article – Real Property 14
35	35
36	36	TITLE 11C. LOCAL COMMISSIONS ON COMMON OWNERSHIP COMMUNITIES . 15
37	37
38	38	11C–101. 16
39	39
40	40	(A) IN THIS TITLE THE FOLLOWI NG WORDS HAVE THE ME ANINGS 17
41	41	INDICATED. 18
42	42
43	43	(B) “COMMON ELEMENT ” MEANS: 19
44	44
45	45	(1) ANY PORTION OF A COMM ON OWNERSHIP COMMUNI TY OTHER 20
46	46	THAN THE UNITS OF A CONDOMINIUM OR COOPE RATIVE; AND 21
47	47	2 HOUSE BILL 558
48	48
49	49
50	50	(2) PROPERTY THAT IS OWNE D OR LEASED BY A HOM EOWNERS 1
51	51	ASSOCIATION. 2
52	52
53	53	(C) (1) “COMMON OWNERSHIP COMM UNITY” MEANS: 3
54	54
55	55	(I) A CONDOMINIUM AS DEFIN ED IN § 11–101 OF THIS ARTICLE 4
56	56	THAT IS USED FOR RES IDENTIAL PURPOSES ; 5
57	57
58	58	(II) A COOPERATIVE HOUSING CORPORATION AS DEFIN ED IN § 6
59	59	5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND 7
60	60
61	61	(III) A HOMEOWNERS ASSOCIATI ON AS DEFINED IN § 11B–101 OF 8
62	62	THIS ARTICLE. 9
63	63
64	64	(2) “COMMON OWNERSHIP COMM UNITY” DOES NOT INCLUDE A 10
65	65	TIME–SHARE PROJECT AS DEF INED IN § 11A–101 OF THIS ARTICLE. 11
66	66
67	67	(D) (1) “DISPUTE” MEANS A DISAGREEME NT BETWEEN AT LEAST TWO 12
68	68	PARTIES THAT INVOLVE S: 13
69	69
70	70	(I) THE AUTHORITY OF A GO VERNING BODY OF A CO MMON 14
71	71	OWNERSHIP COMMUNITY TO: 15
72	72
73	73	1. REQUIRE OR PROHIBIT A NY ACTION INVOLVING A 16
74	74	UNIT OR COMMON ELEME NT; 17
75	75
76	76	2. REQUIRE ANY PERSON TO PAY A FEE, A FINE, OR AN 18
77	77	ASSESSMENT; 19
78	78
79	79	3. SPEND COMMON OWNERSHI P COMMUNITY FUNDS ; OR 20
80	80
81	81	4. ALTER OR ADD TO A COM MON ELEMENT ; OR 21
82	82
83	83	(II) THE FAILURE OF A GOVE RNING BODY OF A COMM ON 22
84	84	OWNERSHIP COMMUNITY TO: 23
85	85
86	86	1. PROPERLY CONDUCT AN E LECTION; 24
87	87
88	88	2. GIVE ADEQUATE NOTICE OF A MEETING OR OTHER 25
89	89	ACTION; 26
90	90
91	91	3. PROPERLY CONDUCT A ME ETING; 27
92	92	HOUSE BILL 558 3
93	93
94	94
95	95	4. PROPERLY ADOPT A BUDG ET OR RULES; 1
96	96
97	97	5. MAINTAIN OR AUDIT BOO KS AND RECORDS ; 2
98	98
99	99	6. ALLOW INSPECTION OF B OOKS AND RECORDS ; 3
100	100
101	101	7. MAINTAIN OR REPAIR A COMMON ELEMENT IF TH E 4
102	102	FAILURE RESULTS IN SIGNIFICA NT PERSONAL INJURY O R PROPERTY DAMAGE ; OR 5
103	103
104	104	8. EXERCISE ITS JUDGMENT IN GOOD FAITH 6
105	105	CONCERNING THE ENFOR CEMENT OF THE ASSOCI ATION DOCUMENTS AGAI NST ANY 7
106	106	PERSON THAT IS SUBJE CT TO THOSE DOCUMENT S. 8
107	107
108	108	(2) “DISPUTE” DOES NOT INCLUDE A D ISAGREEMENT THAT 9
109	109	INVOLVES: 10
110	110
111	111	(I) TITLE TO ANY UNIT OR COMMON ELEMENT ; 11
112	112
113	113	(II) THE PERCENTAGE INTERE ST OR VOTE ALLOCABLE TO A 12
114	114	UNIT; 13
115	115
116	116	(III) THE INTERPRETATION OR ENFORCEMENT OF ANY 14
117	117	WARRANTY; 15
118	118
119	119	(IV) THE COLLECTION OF AN ASSESSMENT VALIDLY L EVIED 16
120	120	AGAINST A PARTY; OR 17
121	121
122	122	(V) THE EXERCISE OF THE J UDGMENT OR DISCRETIO N OF A 18
123	123	GOVERNING BODY OF A COMMON OWNERSHIP COM MUNITY REGARDING ANY 19
124	124	LEGALLY AUTHORIZED A CTION. 20
125	125
126	126	(E) “GOVERNING BODY OF A C OMMON OWNERSHIP COMM UNITY” MEANS: 21
127	127
128	128	(1) THE COUNCIL OF UNIT O WNERS OF A CONDOMINIUM ; 22
129	129
130	130	(2) THE BOARD OF DIRECTOR S OF A COOPERATIVE H OUSING 23
131	131	CORPORATION ; 24
132	132
133	133	(3) A HOMEOWNERS ASSOCIATI ON, BOARD OF DIRECTORS , OR OTHER 25
134	134	ENTITY ESTABLISHED T O GOVERN A PROPERTY SUBJECT TO AN INSTRU MENT THAT 26
135	135	IMPOSES ON LOTS , OR ON THE OWNERS OR OCCUPANTS OF LOTS , ANY MANDATORY 27
136	136	FEE IN CONNECTION WI TH THE PROVISION OF SERVICES OR OTHERWIS E FOR THE 28
137	137	BENEFIT OF SOME OR A LL OF THE LOTS; OR 29 4 HOUSE BILL 558
138	138
139	139
140	140
141	141	(4) ANY OTHER BODY AUTHOR IZED TO ADOPT RULES OR 1
142	142	REGULATIONS GOVERNIN G A CONDOMINIUM , COOPERATIVE HOUSING 2
143	143	CORPORATION, OR HOMEOWNERS ASSOCI ATION. 3
144	144
145	145	(F) (1) “GOVERNING DOCUMENT ” MEANS: 4
146	146
147	147	(I) THE MASTER DEED , DECLARATION , INCORPORATION 5
148	148	DOCUMENT , BYLAWS, OR RULES OF ANY COMM ON OWNERSHIP COMMUNI TY; 6
149	149
150	150	(II) A WRITTEN PRIVATE AGRE EMENT BETWEEN PARTIE S 7
151	151	CONCERNING THE OP ERATION OF THE COMMU NITY OR MAINTENANCE OR CONTROL 8
152	152	OF COMMON OR LIMITED COMMON PROPERTY ; OR 9
153	153
154	154	(III) A DOCUMENT CONCERNING THE OPERATION OR 10
155	155	GOVERNANCE OF A COMM ON OWNERSHIP COMMUNI TY. 11
156	156
157	157	(2) “GOVERNING DOCUMENT ” DOES NOT INCLUDE A L EASE UNLESS 12
158	158	THE LEASE PROVIDES THAT IT MAY BE ENFORCED UNDER TH IS TITLE. 13
159	159
160	160	(G) “LOCAL COMMISSION ” MEANS A COMMISSION O N COMMON OWNERSHIP 14
161	161	COMMUNITIES ESTABLIS HED BY A COUNTY IN A CCORDANCE WITH THIS TITLE. 15
162	162
163	163	(H) “LOCAL GOVERNMENT ” MEANS: 16
164	164
165	165	(1) THE COUNTY COMMISSION ERS OR COUNTY COUNCIL OF A 17
166	166	COUNTY; 18
167	167
168	168	(2) IF THE CHARTER OF THE COUNTY PROVIDES FOR A COUNTY 19
169	169	EXECUTIVE, THE COUNTY EXECUTIVE AND THE COUNTY COUNC IL; OR 20
170	170
171	171	(3) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY. 21
172	172
173	173	(I) “OWNER” MEANS: 22
174	174
175	175	(1) A UNIT OWNER IN A COND OMINIUM; 23
176	176
177	177	(2) A MEMBER OF A COOPERAT IVE HOUSING CORPORAT ION; OR 24
178	178
179	179	(3) A LOT OWNER IN A HOMEO WNERS ASSOCIATION . 25
180	180
181	181	11C–102. 26
182	182	HOUSE BILL 558 5
183	183
184	184
185	185	THE PROVISIONS OF THI S TITLE SUPERSEDE AN Y INCONSISTENT PROVI SIONS 1
186	186	OF LOCAL LAW THAT CO NFLICT WITH THIS TIT LE TO THE EXTENT OF THE CONFLICT. 2
187	187
188	188	11C–103. 3
189	189
190	190	(A) A LOCAL COMMISSION ON COMMON OWNERSHIP COM MUNITIES 4
191	191	ESTABLISHED BY THE L OCAL GOVERNMENT OF A COUNTY BY LOCAL LAW SHALL 5
192	192	COMPLY WITH THE REQU IREMENTS OF THIS TIT LE. 6
193	193
194	194	(B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 7
195	195	LOCAL COMMISSION S HALL INCLUDE MEMBERS WHO: 8
196	196
197	197	1. ARE OWNERS IN A COMMO N OWNERSHIP COMMUNIT Y; 9
198	198	AND 10
199	199
200	200	2. REPRESENT PROFESSIONS ASSOCIATED WITH 11
201	201	COMMON OWNERSHIP COM MUNITIES, INCLUDING INDIVIDUAL S INVOLVED IN 12
202	202	HOUSING DEVELOPMENT OR REAL ESTATE SALES , DEVELOPERS , OR ATTORNE YS 13
203	203	WHO REPRESENT COMMON OWNERSHIP COMMUNITIE S, INCLUDING AT LEAST O NE 14
204	204	MEMBER WHO IS A LICE NSED COMMON OWNERSHI P COMMUNITY MANAGER . 15
205	205
206	206	(II) THE LOCAL GOVERNMENT SHALL DETERMINE THE TOTAL 16
207	207	NUMBER OF MEMBERS OF THE LOCAL COMMISSION . 17
208	208
209	209	(2) THE FOLLOWING INDIV IDUALS SHALL SERVE A S NONVOTING 18
210	210	MEMBERS OF A LOCAL C OMMISSION: 19
211	211
212	212	(I) A DESIGNEE OF THE LOCA L GOVERNMENT ; AND 20
213	213
214	214	(II) A DESIGNEE OF A COUNTY AGENCY DEALING WITH : 21
215	215
216	216	1. PLANNING; 22
217	217
218	218	2. ENVIRONMENT ; 23
219	219
220	220	3. PERMITTING; 24
221	221
222	222	4. TRANSPORTATION ; OR 25
223	223
224	224	5. HOUSING AND COMMUNITY AFFAIRS. 26
225	225
226	226	(C) THE CHAIR AND VICE CH AIR OF A LOCAL COMMI SSION SHALL BE 27
227	227	ELECTED FROM AMONG T HE VOTING MEMBERSHIP OF THE LOCAL COMMISS ION. 28 6 HOUSE BILL 558
228	228
229	229
230	230
231	231	(D) (1) SUBJECT TO THE REQUIR EMENTS OF PARAGRAPH (2) OF THIS 1
232	232	SUBSECTION, A LOCAL GOVERNMENT ESTABLISHING A LOCAL COMMISSION SHALL 2
233	233	ADOPT PROCEDURES FOR THE APPOINTMENT AND TERMS OF MEMBERS OF THE 3
234	234	LOCAL COMMISSION . 4
235	235
236	236	(2) A MEMBER OF A LOCAL CO MMISSION MAY NOT SER VE MORE THAN 5
237	237	TWO CONSECUTIVE TERM S. 6
238	238
239	239	11C–104. 7
240	240
241	241	(A) A MAJORITY OF THE TOTA L MEMBERSHIP OF A LOCAL COMMISSIO N 8
242	242	SHALL CONSTITUTE A Q UORUM. 9
243	243
244	244	(B) A LOCAL COMMISSION SHA LL MEET AT LEAST MON THLY AND 10
245	245	DETERMINE THE TIMES AND PLACES OF ITS ME ETINGS. 11
246	246
247	247	(C) A MEMBER OF A LOCAL CO MMISSION: 12
248	248
249	249	(1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE LOCAL 13
250	250	COMMISSION; BUT 14
251	251
252	252	(2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 15
253	253	STANDARD COUNTY TRAV EL REGULATIONS . 16
254	254
255	255	(D) (1) A LOCAL COMMISSION SHA LL: 17
256	256
257	257	(I) ADOPT RULES OF PROFES SIONAL CONDUCT AS 18
258	258	APPROPRIATE FOR MEMB ERS AND STAFF; 19
259	259
260	260	(II) KEEP A RECORD OF ITS PROCEEDINGS ; 20
261	261
262	262	(III) EXAMINE THE NEEDS OF COMMON OWNERSHIP 21
263	263	COMMUNITIES IN THE C OUNTY; 22
264	264
265	265	(IV) ADVISE COUNTY GOVERNM ENT AND APPROPRIATE STATE 23
266	266	AND FEDERAL AGENCIES ON MATTERS RELATING TO COMMON OWNERSHIP 24
267	267	COMMUNITIES ; AND 25
268	268
269	269	(V) PROVIDE TRAINING ON T HE RESPONSIBILITIES OF A LOCAL 26
270	270	COMMISSION’S MEMBERS TO THE GOV ERNING BODY OF A COM MON OWNERSHIP 27
271	271	COMMUNITY BY : 28
272	272	HOUSE BILL 558 7
273	273
274	274
275	275	1. DEVELOPING AN EDUCATI ONAL CURRICULUM FOR 1
276	276	NEW MEMBERS ; AND 2
277	277
278	278	2. APPROVING AN ALTERNAT IVE EDUCATIONAL 3
279	279	CURRICULUM FOR NEW M EMBERS. 4
280	280
281	281	(2) A LOCAL COMMISSION MAY : 5
282	282
283	283	(I) EMPLOY STAFF AS AUTHO RIZED BY A LOCAL GOV ERNMENT; 6
284	284
285	285	(II) ESTABLISH A PROCESS F OR RESOLVING DISCIPL INARY 7
286	286	MATTERS PENDING BEFO RE THE LOCAL COMMISS ION THROUGH NONJUDIC IAL 8
287	287	DISPUTE RESOLUTION P ROCESSES; 9
288	288
289	289	(III) DEVELOP EDUCATIONAL A ND TRAINING OPPORTUN ITIES 10
290	290	FOR GOVERNING BODIES ; 11
291	291
292	292	(IV) ADOPT ADDITIONAL BYLA WS NECESSARY TO CARR Y OUT 12
293	293	THE BUSINESS OF THE LOCAL COMMISSION ; AND 13
294	294
295	295	(V) ADOPT ANY ADDITIONAL REGULATIONS , PROCEDURES , OR 14
296	296	STANDARDS CONSISTENT WITH THE MISSION OF THE LOCAL COMMISSION AND TO 15
297	297	CARRY OUT THE REQUIR EMENTS OF THIS TITLE . 16
298	298
299	299	11C–105. 17
300	300
301	301	(A) A LOCAL LAW ESTABLISHI NG A LOCAL COMMISSIO N SHALL REQUIRE 18
302	302	COMMON OWNERSHIP COM MUNITIES IN THE COUN TY TO REGISTER WITH THE LOCAL 19
303	303	COMMISSION ANNUALLY ON A FORM THAT IDENTIFIES: 20
304	304
305	305	(1) THE ELECTED LEADERSHI P OF THE COMMON OWNE RSHIP 21
306	306	COMMUNITY ; AND 22
307	307
308	308	(2) THE MANAGING AGENTS O F THE COMMON OWNERSH IP 23
309	309	COMMUNITY . 24
310	310
311	311	(B) A COMMON OWNERSHIP COM MUNITY THAT FAILS TO REGISTER OR 25
312	312	MAKES A FALSE STATEM ENT ON A REGISTRATIO N FORM IS INELIGIBLE TO FILE A 26
313	313	DISPUTE. 27
314	314
315	315	11C–106. 28
316	316	8 HOUSE BILL 558
317	317
318	318
319	319	(A) A LOCAL LAW ESTABLISHI NG A LOCAL COMMISSIO N MAY AUTHORIZE 1
320	320	THE COLLECTION OF A REASONABLE FEE FOR S ERVICES PROVIDED BY THE LOCAL 2
321	321	COMMISSION. 3
322	322
323	323	(B) ANY AUTHORIZED FEE SH ALL BE USED TO COVER THE COST OF 4
324	324	MAINTAINING THE LOCAL COMMIS SION AND MAY INCLUDE : 5
325	325
326	326	(1) A PER–UNIT ANNUAL CHARGE T O COMMON OWNERSHIP 6
327	327	COMMUNITIES TO RENEW REGISTRATION ; 7
328	328
329	329	(2) FEES FOR DISPUTE RESO LUTION UNDER § 11C–110 OF THIS 8
330	330	TITLE, SERVICES, AND TECHNICAL ASSIST ANCE; AND 9
331	331
332	332	(3) A PER–UNIT CHARGE TO DEVELOPERS FO R THE RECORDATION OF 10
333	333	DOCUMENTS . 11
334	334
335	335	(C) IF THE COLLECTION OF A FEE BY A LOCAL COM MISSION IS AUTHORIZE D 12
336	336	UNDER THIS SECTION , THE LOCAL COMMISSION SHALL PUBLISH THE FE E 13
337	337	SCHEDULE. 14
338	338
339	339	11C–107. 15
340	340
341	341	A LOCAL GOVERNMENT THA T ESTABLISHES A LOCA L COMMISSION SHALL 16
342	342	DESIGNATE A COUNTY A GENCY OR OFFICE TO : 17
343	343
344	344	(1) DISSEMINATE EDUCATION AL MATERIALS REGARDI NG PROGRAMS 18
345	345	THAT ASSIST COMMON O WNERSHIP COMMUNITIES ; 19
346	346
347	347	(2) CONDUCT EDUCATIONAL P ROGRAMS TO PROMOTE T HE 20
348	348	OPERATION OF COMMON OWNERSHIP COMMUNITIE S; 21
349	349
350	350	(3) MAINTAIN A LIST OF: 22
351	351
352	352	(I) COMMON OWNERSHIP COMM UNITIES IN THE COUNT Y, 23
353	353	INCLUDING THE LEADER SHIP OF THE COMMON O WNERSHIP COMMUNITIES ; AND 24
354	354
355	355	(II) PROFESSIONAL MANAGEME NT COMPANIES THAT PR OVIDE 25
356	356	SERVICES TO COMMON O WNERSHIP COMMUNITIES IN THE COUNTY; 26
357	357
358	358	(4) MAINTAIN INFORMATION AND A REFERRAL SYSTE M FOR ALL 27
359	359	COUNTY SERVICES RELA TED TO COMMON OWNERS HIP COMMUNITIES ; 28
360	360
361	361	(5) MAINTAIN A COLLECTION OF GOVERNING DOCUMEN TS; 29 HOUSE BILL 558 9
362	362
363	363
364	364
365	365	(6) PROVIDE TECHNICAL ASS ISTANCE TO GOVERNING BODIES ON 1
366	366	MATTERS INCLUDING : 2
367	367
368	368	(I) LEADERSHIP TRANSITION ; 3
369	369
370	370	(II) ELECTIONS; 4
371	371
372	372	(III) ADOPTION OF RULES ; 5
373	373
374	374	(IV) ENFORCEMENT OF RULES ; 6
375	375
376	376	(V) SELECTION OF ASSOCIAT ION MANAGERS ; AND 7
377	377
378	378	(VI) STORMWATER MANAGEMENT ; 8
379	379
380	380	(7) MAINTAIN AN OPERATION S MANUAL TO GUIDE CO MMON 9
381	381	OWNERSHIP COMMUNITY LEADERSHIP; 10
382	382
383	383	(8) ADVISE COMMON OWNERSH IP COMMUNITIES AND P ROFESSIONAL 11
384	384	ASSOCIATION MANAGERS OF CHANGES IN THE LA WS AND REGULATIONS T HAT 12
385	385	AFFECT THEIR COMMUNI TIES OR OPERATIONS ; AND 13
386	386
387	387	(9) OPERATE A DISPUTE RES OLUTION PROCESS TO F URNISH 14
388	388	MEDIATION AND ADMINI STRATIVE HEARINGS . 15
389	389
390	390	11C–108. 16
391	391
392	392	(A) A LOCAL COMMISSION MAY HEAR ANY DISPUTE BET WEEN PARTIES . 17
393	393
394	394	(B) A PARTY MAY NOT FILE A DISPUTE WITH A LOCAL COMMISSION UNTIL 18
395	395	THE PARTY HAS MADE A GOOD FAITH EFFORT TO EXHAUST ALL PROCEDUR ES AND 19
396	396	REMEDIES PROVIDED BY THE GOV ERNING DOCUMENTS OF THE COMMON 20
397	397	OWNERSHIP COMMUNITY . 21
398	398
399	399	(C) A PARTY MAY FILE A DIS PUTE WITH A LOCAL CO MMISSION AT LEAST 60 22
400	400	DAYS AFTER A PROCEDU RE OR REMEDY HAS BEE N INITIATED WITH THE GOVERNING 23
401	401	BODY OF A COMMON OWN ERSHIP COMMUNITY . 24
402	402
403	403	(D) (1) IF THE GOVERNING BODY OF A COMMON OWNERSHI P COMMUNITY 25
404	404	DETERMINES THAT A DI SPUTE EXISTS, THE GOVERNING BODY O F THE COMMON 26
405	405	OWNERSHIP COMMUNITY SHALL NOTIFY THE OTH ER PARTIES OF THE OP TION TO 27
406	406	FILE THE DISPUTE WIT H A LOCAL COMMISSION . 28 10 HOUSE BILL 558
407	407
408	408
409	409
410	410	(2) THE GOVERNING BOD Y OF A COMMON OWNERS HIP COMMUNITY 1
411	411	MAY NOT TAKE ACTION TO ENFORCE OR IMPLEM ENT THE DECISION OF THE 2
412	412	GOVERNING BODY FOR 14 DAYS FOLLOWING NOTIF ICATION OF THE OTHER PARTIES. 3
413	413
414	414	(E) EXCEPT AS PROVIDED IN § 11C–109 OF THIS TITLE, ON THE FILING OF 4
415	415	A DISPUTE WITH A LOCAL COMMISSION , THE DECISION OF THE GOVERNING BODY OF 5
416	416	A COMMON OWNERSHIP C OMMUNITY SHALL BE ST AYED AND MAY NOT BE ENFORCED 6
417	417	OR IMPLEMENTED , OTHER THAN BY FILING A CIVIL ACTION , UNTIL THE 7
418	418	COMPLETION OF THE DI SPUTE PROCESS . 8
419	419
420	420	11C–109. 9
421	421
422	422	(A) (1) AT ANY TIME AFTER A DISPUTE IS F ILED, THE GOVERNING BODY 10
423	423	OF A COMMON OWNERSHI P COMMUNITY MAY SUBM IT A REQUEST TO LIFT AN 11
424	424	AUTOMATIC STAY UNDER § 11C–108 OF THIS TITLE. 12
425	425
426	426	(2) IF A HEARING PANEL HA S NOT BEEN APPOINTED UNDER § 13
427	427	11C–112 OF THIS TITLE, THE LOCAL COMMISSION SHALL AUT HORIZE A SPECIAL 14
428	428	STANDING PANEL TO CO NSIDER REQUESTS FOR RELIEF FROM STAYS . 15
429	429
430	430	(3) THE SPECIAL PANEL SHA LL INCLUDE: 16
431	431
432	432	(I) THREE VOTING MEMBERS OF THE LOCAL COMMISS ION 17
433	433	DESIGNATED BY THE CH AIR; AND 18
434	434
435	435	(II) AT LEAST ONE MEMBER D ESCRIBED UNDER § 19
436	436	11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DES CRIBED UNDER § 20
437	437	11C–103(B)(1)(I)2 OF THIS TITLE. 21
438	438
439	439	(B) (1) A GOVERNING BODY OF A COMMON OWNERSHIP COM MUNITY 22
440	440	THAT REQUESTS RELIEF FROM A STAY SHALL SE RVE A COPY OF ITS RE QUEST ON ANY 23
441	441	PARTY NAMED IN THE DISPUTE BY CERTIFIED MAIL OR PERSONAL SERVICE . 24
442	442
443	443	(2) A CERTIFICATE OF SERVI CE SHALL ACCOMPANY A NY REQUEST 25
444	444	SUBMITTED UNDER THIS SECTION. 26
445	445
446	446	(3) A PARTY SERVED WITH A COPY OF THE REQUEST SHALL FILE ANY 27
447	447	OPPOSITION TO THE RE QUEST WITHIN 10 DAYS AFTER RECEIVING SE RVICE. 28
448	448
449	449	(C) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A REQUEST 29
450	450	FOR RELIEF FROM A ST AY MAY BE GRANTED ON LY IF THE ASSIGNED P ANEL FINDS 30
451	451	THAT: 31 HOUSE BILL 558 11
452	452
453	453
454	454
455	455	(1) ENFORCING THE STAY WO ULD RESULT IN UNDUE HARM TO THE 1
456	456	COMMON OWNERSHIP COM MUNITY; AND 2
457	457
458	458	(2) LIFTING THE STAY WILL NOT RESULT IN UNDUE HARM TO THE 3
459	459	RIGHTS OR INTERESTS OF ANY OPPOSING PART Y. 4
460	460
461	461	(D) IF A REQUEST FOR RELI EF FROM A STAY STATI NG FACTS SUFFICIENT TO 5
462	462	SHOW A NEED FOR IMME DIATE ACTION IS NOT GRANTED OR DENIED WI THIN 20 DAYS 6
463	463	AFTER THE REQUEST WA S FILED, THE REQUEST SHALL BE TREATED AS GRANTED . 7
464	464
465	465	11C–110. 8
466	466
467	467	(A) (1) FOLLOWING THE FILING OF A DISPUTE WITH A LOCAL 9
468	468	COMMISSION, AN AGENCY DESIGNATED BY A LOCAL GOVERNMEN T UNDER § 10
469	469	11C–107 OF THIS TITLE MAY IN VESTIGATE FACTS AND ASSEMBLE DOCUMENTS 11
470	470	RELEVANT TO THE DISP UTE AND MAY PREPARE A SUMMARY OF THE ISS UES IN THE 12
471	471	DISPUTE FOR USE BY T HE LOCAL COMMISSION . 13
472	472
473	473	(2) THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY A PARTY IF 14
474	474	THE DESIGNATED AGENC Y OR OFFICE FINDS TH AT A DISPUTE WAS NOT PROPERLY 15
475	475	FILED. 16
476	476
477	477	(3) THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY EACH PARTY 17
478	478	OF THE DISPUTE REGAR DING POSSIBLE SANCTI ONS UNDER § 11C–112 OF THIS 18
479	479	TITLE. 19
480	480
481	481	(B) IF THE DESIGNATED AGE NCY OR OFFICE FINDS THAT, ASSUMING ALL 20
482	482	FACTS ALLEGED BY THE PARTY THAT FILED THE DISPUTE ARE TRUE , THERE ARE NO 21
483	483	REASONABLE GROUNDS T O CONCLUDE THAT A VI OLATION OF APPLICABL E LAW OR 22
484	484	ANY GOVERNING DOCUME NT HAS OCCURRED , IT SHALL INFORM THE LOCAL 23
485	485	COMMISSION. 24
486	486
487	487	(C) ON RECEIPT OF THE RES ULTS OF AN INVESTIGA TION BY A DESIGNATED 25
488	488	AGENCY OR OFFICE, A LOCAL COMMISSION M AY: 26
489	489
490	490	(1) IF IT FINDS THAT THER E ARE NO REASONABLE GROUNDS TO 27
491	491	CONCLUDE THAT A VIOL ATION OF APPLICABLE LAW OR ANY GOVERNING DOCUMENT 28
492	492	HAS OCCURRED , DISMISS THE DISPUTE ; 29
493	493
494	494	(2) REQUEST ADDITIONAL IN VESTIGATION BY THE D ESIGNATED 30
495	495	AGENCY OR OFFICE ; OR 31
496	496	12 HOUSE BILL 558
497	497
498	498
499	499	(3) SCHEDULE A HEARING ON THE DISPUTE. 1
500	500
501	501	(D) A LOCAL COMMISSION MAY RECONSIDER THE DISMI SSAL OF A DISPUTE 2
502	502	IF ANY PARTY FILES A MOTION TO RECONSIDER WITHIN 30 DAYS AFTER THE 3
503	503	DISPUTE IS DISMISSED , DEMONSTRATING THAT : 4
504	504
505	505	(1) THE COMMISSION ERRONEOUSLY IN TERPRETED OR APPLIED 5
506	506	APPLICABLE LAW OR AN ASSOCIATION DOCUMENT ; OR 6
507	507
508	508	(2) MATERIAL ISSUES OF FA CT THAT ARE NECESSAR Y TO A FAIR 7
509	509	RESOLUTION OF THE DI SPUTE REMAIN UNRESOL VED. 8
510	510
511	511	11C–111. 9
512	512
513	513	(A) (1) ANY PARTY IN A DISPUT E MAY REQUEST MEDIAT ION. 10
514	514
515	515	(2) IF A PARTY REQUESTS M EDIATION, THE LOCAL COMMISSION 11
516	516	SHALL NOTIFY ALL PAR TIES OF THE REQUEST AND OF THE MEDIATION SESSION. 12
517	517
518	518	(3) A LOCAL COMMISSION SHA LL PROVIDE A QUALIFI ED MEDIATOR 13
519	519	TO MEET WITH THE PAR TIES WITHIN 30 DAYS AFTER A PARTY R EQUESTS MEDIATION 14
520	520	TO ATTEMPT TO SETTLE THE DISPUTE. 15
521	521
522	522	(B) IF A PARTY REFUSES TO ATTEND A MEDIATION S ESSION, OR IF 16
523	523	MEDIATION DOES NOT S UCCESSFULLY RESOLVE THE DISPUTE WITHIN 10 DAYS 17
524	524	AFTER THE FIRST MEDI ATION SESSION IS HEL D, THE LOCAL COMMISSION SHALL 18
525	525	PROMPTLY SCHEDULE A HEARING . 19
526	526
527	527	11C–112. 20
528	528
529	529	(A) (1) IF A HEARING IS SCHED ULED, THE CHAIR OF THE LOC AL 21
530	530	COMMISSION SHALL CON VENE A PANEL TO HEAR THE DISPUTE. 22
531	531
532	532	(2) THE CHAIR SHALL SELEC T AT LEAST ONE MEMBE R DESCRIBED 23
533	533	UNDER § 11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DESCRIBED 24
534	534	UNDER § 11C–103(B)(1)(I)2 OF THIS TITLE. 25
535	535
536	536	(3) THE LOCAL COMMISSION MEMBERS SELECTED BY THE CHAIR 26
537	537	SHALL DESIGNATE A TH IRD MEMBER OF THE PA NEL FROM A LIST OF V OLUNTEER 27
538	538	ARBITRATORS TRAINED OR EXPERIENCED IN CO MMON OWNERSHIP COMMU NITY 28
539	539	ISSUES MAINTAINED BY THE LOCAL COMMISSION . 29
540	540	HOUSE BILL 558 13
541	541
542	542
543	543	(4) IF A SUITABLE ARBITRA TOR IS NOT AVAILABLE , THE CHAIR OF 1
544	544	THE LOCAL COMMISSION SHALL DESIGNATE : 2
545	545
546	546	(I) A THIRD PANELIST FROM AMONG THE VOTING MEM BERS OF 3
547	547	THE LOCAL COMMISSION ; AND 4
548	548
549	549	(II) THE CHAIR OF THE PANEL. 5
550	550
551	551	(B) A PANELIST MAY NOT HAV E AN INTEREST IN THE DISPUTE TO BE HEARD . 6
552	552
553	553	(C) A HEARING PANEL SHALL HOLD A HEARING ON EA CH DISPUTE THAT IS 7
554	554	NOT RESOLVED THROUGH MEDIATION UNDER § 11C–111 OF THIS TITLE UNLESS THE 8
555	555	LOCAL COMMISSION DET ERMINES THAT THE DIS PUTE IS: 9
556	556
557	557	(1) IDENTICAL TO ANOTHER DISPUTE BETWEEN THE SAME PARTIES 10
558	558	ON WHICH A HEARING H AS ALREADY BEEN HELD UNDER THIS SECTION ; OR 11
559	559
560	560	(2) CLEARLY NOT WITHIN TH E JURISDICTION OF TH E LOCAL 12
561	561	COMMISSION. 13
562	562
563	563	(D) A LOCAL COMMISSION SHA LL PROVIDE NOTICE OF A HEARING TO ALL 14
564	564	PARTIES NOT LESS THA N 30 DAYS BEFORE A HEARIN G, UNLESS THE LOCAL 15
565	565	COMMISSION DETERMINE S THAT AN EXPEDITED HEARING IS NECESSARY , IN WHICH 16
566	566	CASE NOTICE SHALL BE PROVIDED TO ALL PART IES AT LEAST 15 DAYS BEFORE A 17
567	567	HEARING. 18
568	568
569	569	(E) A PARTY OR WITNESS MAY BE ADVISED BY CO UNSEL AT A HEARING . 19
570	570
571	571	(F) IF A PARTY, AFTER PROPER NOTICE , DOES NOT APPEAR AT T HE 20
572	572	SCHEDULED HEARING , THE HEARING PANEL MA Y ORDER ANY RELIEF F OR ANOTHER 21
573	573	PARTY THAT THE FACTS ON RECORD WARRANT . 22
574	574
575	575	(G) (1) THE HEARING PANEL SHA LL APPLY STATE AND COUNTY LAWS 23
576	576	AND ALL RELEVANT CAS E LAW TO THE FACTS O F THE DISPUTE. 24
577	577
578	578	(2) A DECISION OF THE HEAR ING PANEL IS BINDING ON THE PARTIES. 25
579	579
580	580	(H) (1) A LOCAL COMMISSION MAY ENFORCE A DECISION O F THE 26
581	581	HEARING PANEL BY APP ROPRIATE LEGAL ACTIO N. 27
582	582
583	583	(2) IN ADDITION TO ANY OTHER EN FORCEMENT ACTION , A LOCAL 28
584	584	COMMISSION MAY : 29
585	585	14 HOUSE BILL 558
586	586
587	587
588	588	(I) FILE FOR INJUNCTIVE R ELIEF TO ENFORCE OR CORRECT 1
589	589	ANY VIOLATION OF THI S TITLE; AND 2
590	590
591	591	(II) FILE TO RECOVER DAMAG ES FOR A LOSS SUSTAI NED AS A 3
592	592	RESULT OF A VIOLATIO N OF THIS TITLE. 4
593	593
594	594	(I) A HEARING PANEL MAY AW ARD COSTS, INCLUDING REASONABLE 5
595	595	ATTORNEY’S FEES, TO ANY PARTY IF ANY OTHER PARTY : 6
596	596
597	597	(1) FILED OR MAINTAINED A FRIVOLOUS DISPUTE , OR FILED OR 7
598	598	MAINTAINED A DISPUTE IN BAD FAITH; 8
599	599
600	600	(2) REFUSED TO PARTICIPAT E IN MEDIATION OF A DISPUTE; OR 9
601	601
602	602	(3) SUBSTANTIALLY DELAYED OR HINDERED THE DISP UTE 10
603	603	RESOLUTION PROCESS W ITHOUT GOOD CAUSE . 11
604	604
605	605	(J) A HEARING PANEL MAY RE QUIRE A LOSING PARTY IN A DISPUTE TO PAY 12
606	606	ALL OR PART OF ANY F ILING FEE. 13
607	607
608	608	(K) A LOCAL GOVERNMENT MAY : 14
609	609
610	610	(1) ESTABLISH ADDITIONAL HEARING PROCEDURES ; AND 15
611	611
612	612	(2) ADOPT ADDITIONAL REQU IREMENTS RELATING TO WITNESSES 16
613	613	AND EVIDENCE FOR A H EARING. 17
614	614
615	615	11C–113. 18
616	616
617	617	(A) A PARTY MAY APPEAL A D ECISION OF A HEARING PANEL TO A COURT OF 19
618	618	COMPETENT JURISDICTI ON. 20
619	619
620	620	(B) AN APPEAL OF A DECISI ON SHALL BE CO NSOLIDATED WITH ANY CASE 21
621	621	THAT ARISES OUT OF T HE SAME FACTS . 22
622	622
623	623	(C) THE COURT HEARING AN APPEAL SHALL SUSTAIN THE DECISION OF THE 23
624	624	HEARING PANEL UNLESS THE DECISION IS: 24
625	625
626	626	(1) INCONSISTENT WITH APP LICABLE LAW; 25
627	627
628	628	(2) LACKING SUBSTANTIAL E VIDENCE; OR 26
629	629
630	630	(3) ARBITRARY AND CAPRICIO US. 27 HOUSE BILL 558 15
631	631
632	632
633	633
634	634	11C–114. 1
635	635
636	636	(A) A PARTY MAY FILE A CIV IL ACTION ARISING OU T OF A GOVERNING 2
637	637	DOCUMENT OR A LAW RE GULATING THE POWERS OF A GOVERNING BODY OF A 3
638	638	COMMON OWNERSHIP COM MUNITY. 4
639	639
640	640	(B) IF THE COURT IS NOTIF IED THAT A DISPUTE H AS BEEN FILED WI TH A 5
641	641	LOCAL COMMISSION IN ACCORDANCE WITH THIS TITLE, THE COURT MAY POSTPO NE 6
642	642	A PROCEEDING FOR AT LEAST 90 DAYS. 7
643	643
644	644	(C) THE COURT MAY HEAR TH E ACTION DE NOVO IF A HEARING PANEL 8
645	645	ASSIGNED TO THE DISP UTE HAS NOT ISSUED A DECISION UNDER § 11C–112 OF THIS 9
646	646	TITLE. 10
647	647
648	648	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
649	649	October 1, 2025. 12
650	650