EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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.
*sb0063*
SENATE BILL 63
N1, C1 5lr1630
SB 1157/24 – JPR (PRE–FILED) CF HB 292
By: Senator Muse
Requested: November 1, 2024
Introduced and read first time: January 8, 2025
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 23, 2025
CHAPTER ______
AN ACT concerning 1
Cooperative Housing Corporations, Condominiums, and Homeowners 2
Associations – Funding of Reserve Accounts and Preparation of Funding Plans 3
FOR the purpose of requiring that the annual budget of a cooperative housing corporation, 4
a residential condominium, or a homeowners association include certain funds; 5
requiring that certain funds for the reserve account of a cooperative housing 6
corporation, a residential condominium, or a homeowners association be deposited 7
by a certain day each fiscal year; extending the amount of time after an initial 8
reserve study that a cooperative housing corporation, a residential condominium, or 9
a homeowners association has to obtain a certain recommended reserve funding 10
level; authorizing a cooperative housing corporation, a residential condominium, or 11
a homeowners association to reasonably deviate from certain reserve funding 12
requirements following a certain financial hardship determination by the governing 13
body; requiring that certain updated reserve studies be prepared by a certain person; 14
requiring the governing body of a cooperative housing corporation, a residential 15
condominium, or a homeowners association to review the reserves and the most 16
recent reserve study or updated reserve study annually for accuracy to determine 17
whether there is adequate funding in accordance with a certain funding plan; 18
altering the definition of “reserve study” to provide that the governing body of a 19
cooperative housing corporation, a residential condominium, or a homeowners 20
association may determine a minimum cost of repair or replacement for components, 21
subject to certain restrictions; requiring the governing body of a cooperative housing 22
corporation, a residential condominium, or a homeowners association to prepare a 23
certain funding plan subject to certain requirements; altering a certain provision of 24 2 SENATE BILL 63
law relating to component costs and the application of certain reserve study 1
requirements to a homeowners association; and generally relating to the funding of 2
reserve accounts, reserve studies, and annual budgets of cooperative housing 3
corporations, condominiums, and homeowners associations. 4
BY repealing and reenacting, with amendments, 5
Article – Corporations and Associations 6
Section 5–6B–26.1 7
Annotated Code of Maryland 8
(2014 Replacement Volume and 2024 Supplement) 9
BY repealing and reenacting, without amendments, 10
Article – Real Property 11
Section 11–109.2(b) and 11B–112.2(c) 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Real Property 16
Section 11–109.2(b) and (c) 11–109.2(c), 11–109.4, 11B–112.2(c) and (d) 17
11B–112.2(d), and 11B–112.3 18
Annotated Code of Maryland 19
(2023 Replacement Volume and 2024 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Corporations and Associations 23
5–6B–26.1. 24
(a) (1) In this section[, “reserve] THE FOLLOWING WORDS HAVE THE 25
MEANINGS INDICATED . 26
(2) “RESERVE study” means a study of the reserves required for future 27
major repairs and replacement of the common elements of a cooperative housing 28
corporation that: 29
[(1)] (I) [Identifies] USING AN ITEMIZED LIS T, CLEARLY IDENTIFIES 30
each structural, mechanical, electrical, and plumbing component of the common elements 31
and any other components that are: 32
1. ARE the responsibility of the cooperative housing 33
corporation to repair and replace; AND 34
SENATE BILL 63 3
2. IF APPLICABLE, MEET A MINIMUM COST OF REPAIR 1
OR REPLACEMENT , AS DETERMINED BY THE GOVERNING BODY , THAT IS: 2
A. REASONABLY BASED ON T HE EXPENSES OF THE 3
COOPERATIVE HOUSING CORPORATION ; AND 4
B. NOT A MINOR EXPENSE T HAT IS OTHERWISE 5
ADDRESSED BY THE BUDGET OF THE COOPER ATIVE HOUSING CORPOR ATION; 6
[(2)] (II) States the normal useful life and the estimated remaining useful 7
life of each identified component; 8
[(3)] (III) States the estimated cost of repair or replacement of each 9
identified component; [and] 10
[(4)] (IV) States the estimated annual reserve amount necessary to 11
accomplish any identified future repair or replacement; AND 12
(V) STATES THE SQUARE FOOTAGE QUANTITY OR SIZE OF EACH 13
IDENTIFIED COMPONENT USING THE APPROPRIAT E MEASUREMENT , SUCH AS UNIT 14
AMOUNT, SQUARE FOOTAGE , OR CUBIC FEET. 15
(3) “UPDATED RESERVE STUDY ” MEANS, FOR THE COMMON 16
ELEMENTS SINCE THE P RIOR RESERVE STUDY W AS COMPLETED WITHIN THE 17
PREVIOUS 5 YEARS, A STUDY THAT: 18
(I) ANALYZES ANY WORK PER FORMED; 19
(II) REVISES REPLACEMENT COST , REMAINING LIFE , AND 20
USEFUL LIFE ESTIMATE S; AND 21
(III) IDENTIFIES: 22
1. (II) WORK ANALYZES WORK PERFORMED AND 23
AMOUNTS SPENT ; AND 24
2. (III) WHETHER IDENTIFIES WHETHER ANY 25
MAINTENANCE CONTRACT S ARE IN PLACE. 26
(b) (1) This subsection applies only to a cooperative housing corporation 27
established in: 28
(i) Prince George’s County on or after October 1, 2020; 29
(ii) Montgomery County on or after October 1, 2021; or 30 4 SENATE BILL 63
(iii) Any county other than Prince George’s County or Montgomery 1
County on or after October 1, 2022. 2
(2) The governing body of the cooperative housing corporation shall have 3
an independent reserve study completed not less than 30 calendar days before the first 4
meeting of the cooperative housing corporation at which the members other than the owner 5
have a majority of votes in the cooperative housing corporation. 6
(3) The governing body shall have an updated reserve study completed 7
within 5 years after the date of the initial reserve study conducted under paragraph (2) of 8
this subsection, which shall be updated at least every 5 years thereafter. 9
(c) (1) (i) This paragraph applies only to a cooperative housing corporation 10
established in Prince George’s County before October 1, 2020. 11
(ii) If the governing body of a cooperative housing corporation has 12
had a reserve study conducted on or after October 1, 2016, the governing body shall have 13
an updated reserve study conducted within 5 years after the date of that reserve study and 14
at least every 5 years thereafter. 15
(iii) If the governing body of a cooperative housing corporation has 16
not had a reserve study conducted on or after October 1, 2016, the governing body shall 17
have a reserve study conducted on or before October 1, 2021, and an updated reserve study 18
at least every 5 years thereafter. 19
(2) (i) This paragraph applies only to a cooperative housing corporation 20
established in Montgomery County before October 1, 2021. 21
(ii) If the governing body of a cooperative housing corporation has 22
had a reserve study conducted on or after October 1, 2017, the governing body shall have 23
an updated reserve study conducted within 5 years after the date of that reserve study and 24
at least every 5 years thereafter. 25
(iii) If the governing body of a cooperative housing corporation has 26
not had a reserve study conducted on or after October 1, 2017, the governing body shall 27
have a reserve study conducted on or before October 1, 2022, and an updated reserve study 28
at least every 5 years thereafter. 29
(3) (i) This paragraph applies to a cooperative housing corporation 30
established in any county other than Prince George’s County or Montgomery County before 31
October 1, 2022. 32
(ii) If the governing body of a cooperative housing corporation has 33
had a reserve study conducted on or after October 1, 2018, the governing body shall have 34
an updated reserve study conducted within 5 years after the date of that reserve study and 35
at least every 5 years thereafter. 36 SENATE BILL 63 5
(iii) If the governing body of a cooperative housing corporation has 1
not had a reserve study conducted on or after October 1, 2018, the governing body shall 2
have a reserve study conducted on or before October 1, 2023, and an updated reserve study 3
at least every 5 years thereafter. 4
(d) Each reserve study AND UPDATED RESERVE STUDY required under this 5
section shall: 6
(1) Be prepared by a person who: 7
(i) Has prepared at least 30 reserve studies within the prior 3 8
calendar years; 9
(ii) Has participated in the preparation of at least 30 reserve studies 10
within the prior 3 calendar years while employed by a firm that prepares reserve studies; 11
(iii) Holds a current license from the State Board of Architects or the 12
State Board for Professional Engineers; or 13
(iv) Is currently designated as a reserve specialist by the Community 14
Association Institute or as a professional reserve analyst by the Association of Professional 15
Reserve Analysts; 16
(2) Be available for inspection and copying by any unit owner; 17
(3) Be reviewed by the governing body of the cooperative housing 18
corporation in connection with the preparation of the annual proposed budget; and 19
(4) Be summarized for submission with the annual proposed budget to the 20
unit owners. 21
(e) To the extent that a reserve study conducted in accordance with this section 22
indicates a need to budget for reserves, the budget shall include: 23
(1) For the capital components, the current estimated: 24
(i) Replacement cost IF THE ESTIMATED REP LACEMENT COST IS 25
GREATER THAN $10,000 AS DETERMINED BY THE MOST RECENT RESERVE STUDY OR 26
UPDATED RESERVE STUD Y; 27
(ii) Remaining life; and 28
(iii) Useful life; 29
(2) The amount of accumulated cash reserves set aside for the repair, 30
replacement, or restoration of capital components as of the beginning of the fiscal year in 31 6 SENATE BILL 63
which the reserve study is conducted and the amount of the expected contribution to the 1
reserve fund for the fiscal year; 2
(3) A statement describing the procedures used for estimation and 3
accumulation of cash reserves in accordance with this section; and 4
(4) A statement of the amount of reserves recommended in the study and 5
the amount of current cash for replacement reserves. 6
(f) (1) (i) 1. Subject to PARAGRAPH (2) OF THIS SUBSECTION A ND 7
subparagraph (ii) of this paragraph, the governing body of a cooperative housing 8
corporation shall [provide] DEPOSIT funds to the reserve ACCOUNT in accordance with the 9
most recent reserve study OR UPDATED RESERVE S TUDY AND THE FUNDING PLAN 10
REQUIRED UNDER SUBSE CTION (G) OF THIS SECTION ON OR BEFORE THE LAS T DAY 11
OF EACH FISCA L YEAR and shall review the RESERVES AND THE MOS T RECENT 12
RESERVE STUDY OR UPD ATED reserve study annually for accuracy TO DETERMINE 13
WHETHER THERE IS ADE QUATE FUNDING IN ACC ORDANCE WITH THE FUN DING PLAN 14
REQUIRED UNDER SUBSE CTION (G) OF THIS SECTION . 15
2. THE ANNUAL REVIEW OF THE RESERVE STUDY FOR 16
ACCURACY UNDER SUBSUBPARAGRAP H 1 OF THIS SUBPARAGRAPH DOES NOT 17
REQUIRE A RESERVE ST UDY OR UPDATED RESERVE S TUDY IN ADDITION TO THE 18
RESERVE STUDY REQUIR EMENTS UNDER SUBSECT IONS (B) AND (C) OF THIS 19
SECTION. 20
(ii) If SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF the 21
most recent reserve study was an initial reserve study, the governing body shall, within [3] 22
5 fiscal years following the fiscal year in which the initial reserve study was completed, 23
attain the annual reserve funding level recommended in the initial reserve study IN 24
ACCORDANCE WITH THE FUNDING PLAN UNDER S UBSECTION (G) OF THIS SECTION . 25
(2) (I) THE GOVERNING BODY OF A COOPERATIVE HOUSIN G 26
CORPORATION MAY DETE RMINE BY A TWO –THIRDS MAJORITY VOTE THAT THE 27
COOPERATIVE HOUSING CORPORATION AND THE MEMBERS ARE EXPERIEN CING A 28
FINANCIAL HARDSHIP T HAT LIMITS THE ABILI TY TO FUND RESERVES THAT ARE 29
REQUIRED UNDER PARAG RAPH (1)(I) OR (II) OF THIS SUBSECTION . 30
(II) SUBJECT TO SUBPARAGRA PHS (III) THROUGH (V) OF THIS 31
PARAGRAPH , IF A GOVERNING BODY MAKES A FINANCIAL HA RDSHIP 32
DETERMINATION BASED ON THE RESERVE FUNDI NG REQUIREMENTS OF 33
PARAGRAPH (1)(I) OR (II) OF THIS SUBSECTION : 34
1. THE COOPERATIVE HOUSI NG CORPORATION MAY 35
REASONABLY DEVIATE F ROM THAT RESERVE FUN DING REQUIREMENT ; AND 36
SENATE BILL 63 7
2. THE FUNDING LEVEL UND ER THAT REQUIREMENT 1
SHALL BE AT LEAST TH E FUNDING AMOUNT NEC ESSARY FOR THE PURPO SES 2
SPECIFIED UNDER SUBS ECTION (G)(3) OF THIS SECTION. 3
(III) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 OF 4
THIS SUBPARAGRAPH , A COOPERATIVE HOUSIN G CORPORATION MAY NO T DEVIATE 5
FROM THE RESERVE FUN DING REQUIREMENTS OF PARAGRAPH (1)(I) OR (II) OF THIS 6
SUBSECTION FOR A PER IOD OF MORE THAN 1 FISCAL YEAR FOLLOWIN G THE 7
FINANCIAL HARDSHIP D ETERMINATION . 8
2. THE GOVERNI NG BODY MAY RENEW A FINANCIAL 9
HARDSHIP DETERMINATI ON UNDER SUBPARAGRAP H (I) OF THIS PARAGRAPH BY A 10
TWO–THIRDS MAJORITY VOTE TO EXTEND THE PERIOD THAT A COOPERATIVE 11
HOUSING CORPORATION MAY DEVIATE FROM THE RESERVE FUNDING 12
REQUIREMENT BY 1 FISCAL YEAR FOLLOW ING THE RENEWAL . 13
(IV) THE GOVERNING BODY SH ALL: 14
1. MAKE GOOD FAITH EFFOR TS TO RESOLVE THE 15
FINANCIAL HARDSHIP A ND RESUME FUNDING RE SERVES AS REQUIRED U NDER 16
PARAGRAPH (1)(I) OR (II) OF THIS SUBSECTION ; 17
2. MAINTAIN DETAILED DOC UMENTATION OF THE GOOD 18
FAITH EFFORTS MADE U NDER ITEM 1 OF THIS SUBPARAGRAPH ; AND 19
3. TREAT THE DOCUMENTS U NDER ITEM 2 OF THIS 20
SUBPARAGRAPH AS RECO RDS FOR EXAMINATION AND COPYING UNDER § 5–6B–26 21
OF THIS SUBTITLE. 22
(V) 1. ALL MEMBERS SHALL BE GIVEN REASONABLE NOT ICE 23
IN ADVANCE OF A VOTE ON AN INITIAL OR A R ENEWAL OF A FINANCIA L HARDSHIP 24
DETERMINATION UNDER THIS PARAGRAPH . 25
2. A VOTE ON AN INITIAL O R A RENEWAL OF A FIN ANCIAL 26
HARDSHIP DETERMINATI ON UNDER THIS PARAGR APH MAY BE TAKEN ONL Y AT A 27
REGULAR OR SPECIAL M EETING OF THE COOPERATIVE HOUSING CORPORATION . 28
(3) The governing body of a cooperative housing corporation has the 29
authority to increase an assessment levied to cover the reserve funding amount required 30
under this section, notwithstanding any provision of the articles of incorporation, bylaws, 31
or proprietary lease restricting assessment increases or capping the assessment that may 32
be levied in a fiscal year. 33
8 SENATE BILL 63
(G) (1) THE GOVERNING BODY OF A COOPERATIVE HOUSIN G 1
CORPORATION SHALL , IN CONSULTATION WITH A PERSON IDENTIFIED UNDER 2
SUBSECTION (D)(1) OF THIS SECTION , DEVELOP A FUNDING PL AN TO DETERMINE 3
HOW TO FULLY FUND THE RESERVES NE CESSARY UNDER THIS S ECTION. 4
(2) IN DEVELOPING THE FUN DING PLAN UNDER THIS SUBSECTION, 5
THE GOVERNING BODY S HALL CONSIDER SELECT ONE OF THE FOLLOWING 6
METHODS TO ACHIEVE T HE RESERVE FUNDING U NDER THIS SECTION : 7
(I) THE COMPONENT OR FULL FUNDING METHOD; 8
(II) THE CASH FLOW METHOD ; 9
(III) THE BASELINE FUNDING METHOD; 10
(IV) THE THRESHOLD CASH FL OW METHOD ; AND OR 11
(V) OTHER FUNDING METHODS ACCEPT ED BY ANY OTHER 12
FUNDING METHOD CONSI STENT WITH GENERALLY ACCEPTED A CCOUNTING 13
PRINCIPLES. 14
(3) A FUNDING PLAN DEVELOP ED UNDER THIS SUBSEC TION SHALL 15
PRIORITIZE ADEQUATE AMOUNTS FOR REPAIR A ND REPLACEMENT OF CO MMON 16
ELEMENTS OF THE COOP ERATIVE HOUSING CORPOR ATION THAT ARE NECES SARY 17
FOR: 18
(I) THE HEALTH, SAFETY, AND WELL–BEING OF THE MEMBERS 19
OCCUPANTS; 20
(II) ENSURING STRUCTURAL I NTEGRITY, SUCH AS ROOFING 21
REPLACEMENTS AND MAI NTAINING STRUCTURAL SYSTEMS; AND 22
(III) ESSENTIAL FUNCTIONING , SUCH AS PLUMBING , SEWER, 23
HEATING, COOLING, AND ELECTRICAL INFRA STRUCTURE; AND 24
(IV) ANY OTHER ESSENTIAL O R CRITICAL PURPOSE , AS 25
DETERMINED BY THE GO VERNING BODY . 26
(4) RESERVES MAY NOT BE U SED FOR PURPOSES OTH ER THAN THOSE 27
SPECIFIED IN THE FUNDING PLAN . 28
(4) RESERVES MAY BE USED FOR PURPOSES OTHER T HAN THOSE 29
SPECIFIED IN THE FUN DING PLAN IF THE FUN DS ARE REPAID TO THE RESERVE FUND 30
WITHIN 5 YEARS AFTER THEIR US E. 31 SENATE BILL 63 9
(5) A GOVERNING BODY SHALL REVIEW PROGRESS TOWA RD 1
COMPLIANCE WITH THE FUNDING PLAN DEVELOP ED UNDER THIS SUBSEC TION AT 2
EACH ANNUAL MEETING OF THE GOVERNING BOD Y. 3
Article – Real Property 4
11–109.2. 5
(b) The annual budget shall provide for at least the following items: 6
(1) Income; 7
(2) Administration; 8
(3) Maintenance; 9
(4) Utilities; 10
(5) General expenses; 11
(6) Reserves, INCLUDING REPLACEMEN T COSTS IF THE ESTIM ATED 12
REPLACEMENT COST IS GREATER THAN $10,000 AS DETERMINED BY THE MOST 13
RECENT RESERVE STUDY OR UPDATED RESERVE S TUDY; and 14
(7) Capital items. 15
(c) (1) Subject to paragraph (2) PARAGRAPHS (2) AND (3) of this subsection 16
AND IN ACCORDANCE WI TH THE FUNDING PLAN UNDER § 11–109.4(F) OF THIS TITLE, 17
the reserves provided for in the annual budget under subsection (b) of this section for a 18
residential condominium shall [be]: 19
(I) BE the funding amount recommended in the most recent reserve 20
study OR UPDATED RESERVE S TUDY completed under § 11–109.4 of this title; AND 21
(II) BE DEPOSITED IN THE R ESERVE ACCOUNT ON OR BEFORE 22
THE LAST DAY OF EACH FISCAL YEAR. 23
(2) If SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , IF the most 24
recent reserve study was an initial reserve study, the governing body shall, within [3] 5 25
fiscal years following the fiscal year in which the initial reserve study was completed, attain 26
the annual reserve funding level recommended in the initial reserve study IN 27
ACCORDANCE WITH THE FUNDING PLAN UNDER § 11–109.4(F) OF THIS TITLE. 28
10 SENATE BILL 63
(3) (I) THE GOVERNING BODY OF A RESIDENTIAL CONDOM INIUM 1
MAY DETERMINE BY A T WO–THIRDS MAJORITY VOTE THAT THE CONDOMINIUM AND 2
THE UNIT OWNERS ARE EXPERIENCING A FINAN CIAL HARDSHIP THAT L IMITS THE 3
ABILITY TO FUND RESE RVES THAT ARE REQUIR ED UNDER PARAGRAPH (1) OR (2) OF 4
THIS SUBSECTION . 5
(II) SUBJECT TO SUBPARAGRA PHS (III) THROUGH (V) OF THIS 6
PARAGRAPH , IF A GOVE RNING BODY MAKES A F INANCIAL HARDSHIP 7
DETERMINATION BASED ON THE RESERVE FUNDI NG REQUIREMENTS OF 8
PARAGRAPH (1) OR (2) OF THIS SUBSECTION : 9
1. THE CONDOMINIUM MAY R EASONABLY DEVIATE 10
FROM THAT RESERVE FU NDING REQUIREMENT ; AND 11
2. THE FUNDING LEVEL UN DER THAT REQUIREMENT 12
SHALL BE AT LEAST TH E FUNDING AMOUNT NEC ESSARY FOR THE PURPO SES 13
SPECIFIED UNDER § 11–109.4(F)(3) OF THIS TITLE. 14
(III) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 OF 15
THIS SUBPARAGRAPH , A RESIDENTIAL CONDOM INIUM MAY NOT DEVIAT E FROM THE 16
RESERVE FUNDING REQU IREMENTS OF PARAGRAP H (1) OR (2) OF THIS SUBSECTION 17
FOR A PERIOD OF MORE THAN 1 FISCAL YEAR FOLLOWIN G THE FINANCIAL 18
HARDSHIP DETERMINATI ON. 19
2. THE GOVERNING BODY MA Y RENEW A FINANCIAL 20
HARDSHIP DETERMINATI ON UNDER SUBPARAGRAP H (I) OF THIS PARAGRAPH BY A 21
TWO–THIRDS MAJORITY VOTE TO EXTEND THE PERIOD THAT A RESIDENTIAL 22
CONDOMINIUM MAY DEVI ATE FROM THE RESERVE FUNDING REQUIREMENT BY 1 23
FISCAL YEAR FOLLOWIN G THE RENEWAL . 24
(IV) THE GOVERNING BODY SH ALL: 25
1. MAKE GOOD FAITH EFFORTS TO RESOLVE T HE 26
FINANCIAL HARDSHIP A ND RESUME FUNDING RE SERVES AS REQUIRED U NDER 27
PARAGRAPH (1) OR (2) OF THIS SUBSECTION ; 28
2. MAINTAIN DETAILED DOC UMENTATION OF THE GO OD 29
FAITH EFFORTS MADE U NDER ITEM 1 OF THIS SUBPARAGRAPH ; AND 30
3. TREAT THE DOCUMENTS UNDER ITEM 2 OF THIS 31
SUBPARAGRAPH AS RECO RDS AVAILABLE FOR EX AMINATION AND COPYIN G UNDER 32
§ 11–116 OF THIS TITLE. 33
SENATE BILL 63 11
(V) 1. ALL UNIT OWNERS SHALL BE GIVEN REASONABLE 1
NOTICE IN ADVANCE OF A VOTE ON AN INITIAL OR A RENEWAL OF A FI NANCIAL 2
HARDSHIP DETERMINATION UNDER THIS PARAGRAPH . 3
2. A VOTE ON AN INITIAL O R A RENEWAL OF A FIN ANCIAL 4
HARDSHIP DETERMINATI ON UNDER THIS PARAGR APH MAY BE TAKEN ONL Y AT A 5
REGULAR OR SPECIAL M EETING OF THE CONDOM INIUM. 6
(4) (I) A THE GOVERNING BODY OF A RESIDENTIAL CONDOMIN IUM 7
SHALL ANNUALLY REVIEW THE RESERVE STUDY ANNUAL LY FOR ACCURACY 8
RESERVES AND THE MOS T RECENT RESERVE STU DY OR UPDATED RESERV E STUDY 9
TO DETERMINE WHETHER THERE IS ADEQUATE FU NDING IN ACCORDANCE WITH THE 10
FUNDING PLAN REQUIRE D UNDER § 11–109.4(F) OF THIS TITLE. 11
(II) THE ANNUAL REVIEW OF THE RESERVE STUDY FOR 12
ACCURACY UNDER THIS PARAGRAPH DOES NOT REQUIRE A R ESERVE STUDY OR 13
UPDATED RESERVE STUD Y IN ADDITION TO THE RESERVE STUDY REQUIR EMENTS 14
UNDER § 11–109.4 OF THIS TITLE. 15
11–109.4. 16
(a) (1) In this section[, “reserve] THE FOLLOWING WORDS HAVE THE 17
MEANINGS INDICATED . 18
(2) “RESERVE study” means a study of the reserves required for future 19
major repairs and replacement of the common elements of a condominium that: 20
[(1)] (I) [Identifies] USING AN ITEMIZED LIS T, IDENTIFIES each 21
structural, mechanical, electrical, and plumbing component of the common elements and 22
any other components that are: 23
1. ARE the responsibility of the council of unit owners to 24
repair and replace; AND 25
2. IF APPLICABLE, MEET A MINIMUM COST OF REPAIR 26
OR REPLACEMENT , AS DETERMINED BY THE GOVERNING BODY , THAT IS: 27
A. REASONABLY BASED ON T HE EXPENSES OF THE 28
CONDOMINIUM ; AND 29
B. NOT A MINOR EXPENSE T HAT IS OTHERWISE 30
ADDRESSED BY THE BUD GET OF THE CONDOMINIUM ; 31
12 SENATE BILL 63
[(2)] (II) States the normal useful life and the estimated remaining useful 1
life of each identified component; 2
[(3)] (III) States the estimated cost of repair or replacement of each 3
identified component; [and] 4
[(4)] (IV) States the estimated annual reserve amount necessary to 5
accomplish any identified future repair or replacement; AND 6
(V) STATES THE SQUARE FOOTAGE QUANTITY OR SIZE OF EACH 7
IDENTIFIED COMPONENT USING THE APPROPRIAT E MEASUREMENT , SUCH AS UNIT 8
AMOUNT, SQUARE FOOT AGE, OR CUBIC FEET. 9
(3) “UPDATED RESERVE STUDY ” MEANS, FOR THE COMMON 10
ELEMENTS SINCE THE P RIOR RESERVE STUDY W AS COMPLETED WITHIN THE 11
PREVIOUS 5 YEARS, A STUDY THAT: 12
(I) ANALYZES ANY WORK PER FORMED; 13
(II) REVISES REPLACEMENT C OST, REMAINING LIFE , AND 14
USEFUL LIFE ESTIMATE S; AND 15
(III) IDENTIFIES: 16
1. (II) WORK ANALYZES WORK PERFORMED AND 17
AMOUNTS SPENT ; AND 18
2. (III) WHETHER IDENTIFIES WHETHER ANY 19
MAINTENANCE CONTRACT S ARE IN PLACE. 20
(b) This section applies only to a residential condominium. 21
(c) (1) This subsection applies only to a condominium established in: 22
(i) Prince George’s County on or after October 1, 2020; 23
(ii) Montgomery County on or after October 1, 2021; or 24
(iii) Any county other than Prince George’s County or Montgomery 25
County on or after October 1, 2022. 26
(2) The governing body of the condominium shall have an independent 27
reserve study completed not less than 30 calendar days before the meeting of the council of 28
unit owners required under § 11–109(c)(16) of this title. 29
SENATE BILL 63 13
(3) The governing body shall have an updated reserve study completed 1
within 5 years after the date of the initial reserve study conducted under paragraph (2) of 2
this subsection and at least every 5 years thereafter. 3
(d) (1) (i) This paragraph applies only to a condominium established in 4
Prince George’s County before October 1, 2020. 5
(ii) If the governing body of a condominium has had a reserve study 6
conducted on or after October 1, 2016, the governing body shall have an updated reserve 7
study conducted within 5 years after the date of that reserve study and at least every 5 8
years thereafter. 9
(iii) If the governing body of a condominium has not had a reserve 10
study conducted on or after October 1, 2016, the governing body shall have a reserve study 11
conducted on or before October 1, 2021, and an updated reserve study at least every 5 years 12
thereafter. 13
(2) (i) This paragraph applies only to a condominium established in 14
Montgomery County before October 1, 2021. 15
(ii) If the governing body of a condominium has had a reserve study 16
conducted on or after October 1, 2017, the governing body shall have an updated reserve 17
study conducted within 5 years after the date of that reserve study and at least every 5 18
years thereafter. 19
(iii) If the governing body of a condominium has not had a reserve 20
study conducted on or after October 1, 2017, the governing body shall have a reserve study 21
conducted on or before October 1, 2022, and an updated reserve study at least every 5 years 22
thereafter. 23
(3) (i) This paragraph applies only to a condominium established in any 24
county other than Prince George’s County or Montgomery County before October 1, 2022. 25
(ii) If the governing body of a condominium has had a reserve study 26
conducted on or after October 1, 2018, the governing body shall have an updated reserve 27
study conducted within 5 years after the date of that reserve study and at least every 5 28
years thereafter. 29
(iii) If the governing body of a condominium has not had a reserve 30
study conducted on or after October 1, 2018, the governing body shall have a reserve study 31
conducted on or before October 1, 2023, and an updated reserve study at least every 5 years 32
thereafter. 33
(e) Each reserve study AND UPDATE D RESERVE STUDY required under this 34
section shall: 35
(1) Be prepared by a person who: 36 14 SENATE BILL 63
(i) Has prepared at least 30 reserve studies within the prior 3 1
calendar years; 2
(ii) Has participated in the preparation of at least 30 reserve studies 3
within the prior 3 calendar years while employed by a firm that prepares reserve studies; 4
(iii) Holds a current license from the State Board of Architects or the 5
State Board for Professional Engineers; or 6
(iv) Is currently designated as a reserve specialist by the Community 7
Association Institute or as a professional reserve analyst by the Association of Professional 8
Reserve Analysts; 9
(2) Be available for inspection and copying by any unit owner; 10
(3) Be reviewed by the governing body of the condominium in connection 11
with the preparation of the annual proposed budget; and 12
(4) Be summarized for submission with the annual proposed budget to the 13
unit owners. 14
(F) (1) THE GOVERNING BODY OF A CONDOMINIUM SHALL , IN 15
CONSULTATION WITH A PERSON IDENTIFIED UN DER SUBSECTION (E)(1) OF THIS 16
SECTION, DEVELOP A FUNDING PL AN TO DETERMINE HOW TO FULLY FUND THE 17
RESERVES NECESSARY U NDER THIS SECTION . 18
(2) IN DEVELOPING THE FUN DING PLAN UNDER THIS SUBSECTION, 19
THE GOVERNING BODY S HALL CONSIDER SELECT ONE OF THE FOLLOWING 20
METHODS TO ACHIEVE T HE RESERVE FUNDING U NDER THIS SECTION : 21
(I) THE COMPONENT OR FULL FUNDING METHOD; 22
(II) THE CASH FLOW METHOD ; 23
(III) THE BASELINE FUNDING METHOD; 24
(IV) THE THRESHOLD CASH FL OW METHOD ; AND OR 25
(V) OTHER FUNDING METHODS ACCEPTED BY ANY OTHER 26
FUNDING METHOD CONSI STENT WITH GENERALLY ACCEPTED A CCOUNTING 27
PRINCIPLES. 28
(3) A FUNDING PLAN DEVELOP ED UNDER THIS SUBSEC TION SHALL 29
PRIORITIZE ADEQUATE AMOUNTS FOR REPAIR A ND REPLACEMENT OF CO MMON 30
ELEMENTS OF THE COND OMINIUM THAT ARE NECESSARY FOR : 31 SENATE BILL 63 15
(I) THE HEALTH, SAFETY, AND WELL–BEING OF THE MEMBERS 1
OCCUPANTS; 2
(II) ENSURING STRUCTURAL I NTEGRITY, SUCH AS ROOFING 3
REPLACEMENTS AND MAI NTAINING STRUCTURAL SYSTEMS; AND 4
(III) ESSENTIAL FUNCTIONING , SUCH AS PLUMBING , SEWER, 5
HEATING, COOLING, AND ELECTRICAL INFRA STRUCTURE; AND 6
(IV) ANY OTHER ESSENTIAL O R CRITICAL PURPOSE , AS 7
DETERMINED BY THE GO VERNING BODY . 8
(4) RESERVES MAY NOT BE U SED FOR PURPOSES OTH ER THAN THOSE 9
SPECIFIED IN THE FUN DING PLAN. 10
(4) RESERVES MAY BE USED FOR PURPOSES OTHER T HAN THOSE 11
SPECIFIED IN THE FUN DING PLAN IF THE FUN DS ARE REPAID TO THE RESERVE FUND 12
WITHIN 5 YEARS AFTER THEIR US E. 13
(5) A GOVERNING BODY SHALL REVIEW PROGRESS TOWA RD 14
COMPLIANCE WITH THE FUNDING PLAN DEVELOP ED UNDER THIS SUBSEC TION AT 15
EACH ANNUAL MEETING OF THE GOVERNING BOD Y. 16
11B–112.2. 17
(c) The annual budget shall provide for at least the following items: 18
(1) Income; 19
(2) Administration; 20
(3) Maintenance; 21
(4) Utilities; 22
(5) General expenses; 23
(6) Reserves, INCLUDING REPLACEMEN T COSTS IF THE ESTIM ATED 24
REPLACEMENT COST IS GREATER THAN $10,000 AS DETERMINED BY THE MOST 25
RECENT RESERVE STUDY OR UPDATED RESERVE S TUDY; and 26
(7) Capital expenses. 27
16 SENATE BILL 63
(d) (1) Subject to paragraph (2) PARAGRAPHS (2) AND (3) of this subsection 1
AND IN ACCORDANCE WI TH THE FUNDING PLAN UNDER § 11B–112.3(F) OF THIS 2
TITLE, reserves provided for in the annual budget under subsection (c) of this section shall 3
[be]: 4
(I) BE the funding amount recommended in the most recent reserve 5
study OR UPDATED RESERVE S TUDY completed under § 11B–112.3 of this title; AND 6
(II) BE DEPOSITED IN THE R ESERVE ACCOUNT ON OR BEFORE 7
THE LAST DAY OF EACH FISCAL YEAR. 8
(2) If SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , IF the most 9
recent reserve study was an initial reserve study, the governing body shall, within [3] 5 10
fiscal years following the fiscal year in which the initial reserve study was completed, attain 11
the annual reserve funding level recommended in the initial reserve study IN 12
ACCORDANCE WITH THE FUNDING PLA N UNDER § 11B–112.3(F) OF THIS TITLE. 13
(3) (I) THE GOVERNING BODY OF A HOMEOWNERS ASSOCIA TION 14
MAY DETERMINE BY A T WO–THIRDS MAJORITY VOTE THAT THE HOMEOWNERS 15
ASSOCIATION AND THE LOT OWNERS ARE EXPER IENCING A FINANCIAL HARDSHIP 16
THAT LIMITS THE ABILITY TO FUND RESERVES THAT A RE REQUIRED UNDER 17
PARAGRAPH (1) OR (2) OF THIS SUBSECTION . 18
(II) SUBJECT TO SUBPARAGRA PHS (III) THROUGH (V) OF THIS 19
PARAGRAPH , IF A GOVERNING BODY MAKES A FINANCIAL HA RDSHIP 20
DETERMINATION BASED ON THE RESERVE FUNDING REQUIREMENTS OF 21
PARAGRAPH (1) OR (2) OF THIS SUBSECTION : 22
1. THE HOMEOWNERS ASSOCI ATION MAY REASONABLY 23
DEVIATE FROM THAT RE SERVE FUNDING REQUIR EMENT; AND 24
2. THE FUNDING LEVEL UND ER THAT REQUIREMENT 25
SHALL BE AT LEAST TH E FUNDING AMOUNT NECESSARY FOR THE PU RPOSES 26
SPECIFIED UNDER § 11B–112.3(F)(3) OF THIS TITLE. 27
(III) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 OF 28
THIS SUBPARAGRAPH , A HOMEOWNERS ASSOCIA TION MAY NOT DEVIATE FROM THE 29
RESERVE FUNDING REQU IREMENTS OF PARAGRAP H (1) OR (2) OF THIS SUBSECTION 30
FOR A PERIOD OF MORE THAN 1 FISCAL YEAR FOLLOWIN G THE FINANCIAL 31
HARDSHIP DETERMINATI ON. 32
2. THE GOVERNING BODY MA Y RENEW A FINANCIAL 33
HARDSHIP DETERMINATI ON UNDER SUBPARAGRAP H (I) OF THIS PARAGRAPH BY A 34
TWO–THIRDS MAJORITY VOTE TO EXTEND THE PERIOD THAT A HOMEOWNERS 35 SENATE BILL 63 17
ASSOCIATION MAY DEVI ATE FROM THE RESERVE FUNDING REQUIREMENT BY 1 1
FISCAL YEAR FOLLOWIN G THE RENEWAL . 2
(IV) THE GOVERNING BODY SH ALL: 3
1. MAKE GOOD FAITH EFFOR TS TO RESOLVE THE 4
FINANCIAL HARDSHIP A ND RESUME FUNDING RE SERVES AS REQUIRED UN DER 5
PARAGRAPH (1) OR (2) OF THIS SUBSECTION ; 6
2. MAINTAIN DETAILED DOC UMENTATION OF THE GO OD 7
FAITH EFFORTS MADE U NDER ITEM 1 OF THIS SUBPARAGRAPH ; AND 8
3. TREAT THE DOCUMENTS U NDER ITEM 2 OF THIS 9
SUBPARAGRAPH AS RECO RDS FOR EXAM INATION AND COPYING UNDER § 11B–112 10
OF THIS TITLE. 11
(V) 1. ALL LOT OWNERS SHALL BE GIVEN REASONABLE 12
NOTICE IN ADVANCE OF A VOTE ON AN INITIAL OR A RENEWAL OF A FI NANCIAL 13
HARDSHIP DETERMINATI ON UNDER THIS PARAGR APH. 14
2. A VOTE ON AN INITIAL O R A RENEWAL OF A FINANCIAL 15
HARDSHIP DETERMINATI ON UNDER THIS PARAGR APH MAY ONLY BE TAKE N AT A 16
REGULAR OR SPECIAL M EETING OF THE HOMEOW NERS ASSOCIATION . 17
(4) (I) A THE GOVERNING BODY OF A HOMEOWNERS ASSOCIATI ON 18
SHALL ANNUALLY REVIEW THE RESERVE STUDY ANNUAL LY FOR ACCURACY 19
RESERVES AND THE MOS T RECENT RESERVE STU DY OR UPDATED RESERV E STUDY 20
TO DETERMINE WHETHER THERE IS ADEQUATE FU NDING IN ACCORDANCE WITH THE 21
FUNDING PLAN REQUIRE D UNDER § 11B–112.3(F) OF THIS TITLE. 22
(II) THE ANNUAL REVIEW OF THE RESERVE STUDY FOR 23
ACCURACY UNDER THIS PARAGRAPH DOES NOT REQUIRE A R ESERVE STUDY OR 24
UPDATED RESERVE STUD Y IN ADDITION TO THE RESERVE STUDY REQUIR EMENTS 25
UNDER § 11B–112.3 OF THIS TITLE. 26
11B–112.3. 27
(a) (1) In this section[, “reserve] THE FOLLOWING WORDS HAVE THE 28
MEANINGS INDICATED . 29
(2) “RESERVE study” means a study of the reserves required for future 30
major repairs and replacement of the common areas of a homeowners association that: 31
18 SENATE BILL 63
[(1)] (I) [Identifies] USING AN ITEMIZED LIS T, IDENTIFIES each 1
structural, mechanical, electrical, and plumbing component of the common areas and any 2
other components that are: 3
1. ARE the responsibility of the homeowners association to 4
repair and replace; AND 5
2. IF APPLICABLE, MEET A MINIMUM COST OF REPAIR 6
OR REPLACEMENT , AS DETERMINED BY THE GOVERNING BODY , THAT IS: 7
A. REASONABLY BASED ON T HE EXPENSES OF THE 8
HOMEOWNERS ASSOCIATI ON; AND 9
B. NOT A MINOR EXPENSE T HAT IS OTHERWISE 10
ADDRESSED BY THE BUD GET OF THE HOMEOWNER S ASSOCIATION; 11
[(2)] (II) States the estimated remaining useful life of each identified 12
component; 13
[(3)] (III) States the estimated cost of repair or replacement of each 14
identified component; [and] 15
[(4)] (IV) States the estimated annual reserve amount necessary to 16
accomplish any identified future repair or replacement; AND 17
(V) STATES THE SQUARE FOOTAGE QUANTITY OR SIZE OF EACH 18
IDENTIFIED COMPONENT USING THE APPROPRIAT E MEASUREMENT , SUCH AS UNIT 19
AMOUNT, SQUARE FOOTAGE , OR CUBIC FEET. 20
(3) “UPDATED RESERVE STUDY ” MEANS, FOR THE COMMON 21
ELEMENTS AREAS SINCE THE PRIOR RESE RVE STUDY WAS COMPLE TED WITHIN THE 22
PREVIOUS 5 YEARS, A STUDY THAT: 23
(I) ANALYZES ANY WORK PER FORMED; 24
(II) REVISES REPLACEMENT C OST, REMAINING LIFE , AND 25
USEFUL LIFE ESTI MATES; AND 26
(III) IDENTIFIES: 27
1. (II) WORK ANALYZES WORK PERFORMED AND 28
AMOUNTS SPENT ; AND 29
2. (III) WHETHER IDENTIFIES WHETHER ANY 30
MAINTENANCE CONTRACT S ARE IN PLACE. 31 SENATE BILL 63 19
(b) (1) This section applies only to a homeowners association: 1
(i) That has responsibility under its declaration for maintaining and 2
repairing common areas; and 3
(ii) For which the total initial purchase and installation REPAIR OR 4
REPLACEMENT costs for all components identified in subsection [(a)(1)] (A) of this section 5
is at least $10,000. 6
(2) This section does not apply to a homeowners association that issues 7
bonds for the purpose of meeting capital expenditures. 8
(c) (1) This subsection applies only to a homeowners association established 9
in: 10
(i) Prince George’s County on or after October 1, 2020; 11
(ii) Montgomery County on or after October 1, 2021; or 12
(iii) Any county other than Prince George’s County or Montgomery 13
County on or after October 1, 2022. 14
(2) The governing body of the homeowners association shall have an 15
independent reserve study completed not more than 90 calendar days and not less than 30 16
calendar days before the meeting of the homeowners association required under § 17
11B–106.1(a) of this title. 18
(3) The governing body shall have an updated reserve study completed 19
within 5 years after the date of the initial reserve study conducted under paragraph (2) of 20
this subsection and at least every 5 years thereafter. 21
(d) (1) (i) This paragraph applies only to a homeowners association 22
established in Prince George’s County before October 1, 2020. 23
(ii) If the governing body of a homeowners association has had a 24
reserve study conducted on or after October 1, 2016, the governing body shall have an 25
updated reserve study conducted within 5 years after the date of that reserve study and at 26
least every 5 years thereafter. 27
(iii) If the governing body of a homeowners association has not had a 28
reserve study conducted on or after October 1, 2016, the governing body shall have a reserve 29
study conducted on or before October 1, 2021, and an updated reserve study at least every 30
5 years thereafter. 31
(2) (i) This paragraph applies only to a homeowners association 32
established in Montgomery County before October 1, 2021. 33 20 SENATE BILL 63
(ii) If the governing body of a homeowners association has had a 1
reserve study conducted on or after October 1, 2017, the governing body shall have an 2
updated reserve study conducted within 5 years after the date of that reserve study and at 3
least every 5 years thereafter. 4
(iii) If the governing body of a homeowners association has not had a 5
reserve study conducted on or after October 1, 2017, the governing body shall have a reserve 6
study conducted on or before October 1, 2022, and an updated reserve study at least every 7
5 years thereafter. 8
(3) (i) This paragraph applies only to a homeowners association 9
established in any county other than Prince George’s County or Montgomery County before 10
October 1, 2022. 11
(ii) If the governing body of a homeowners association has had a 12
reserve study conducted on or after October 1, 2018, the governing body shall have an 13
updated reserve study conducted within 5 years after the date of that reserve study and at 14
least every 5 years thereafter. 15
(iii) If the governing body of a homeowners association has not had a 16
reserve study conducted on or after October 1, 2018, the governing body shall have a reserve 17
study conducted on or before October 1, 2023, and an updated reserve study at least every 18
5 years thereafter. 19
(e) Each reserve study AND UPDATED RESERVE STUDY required under this 20
section shall: 21
(1) Be prepared by a person who: 22
(i) Has prepared at least 30 reserve studies within the prior 3 23
calendar years; 24
(ii) Has participated in the preparation of at least 30 reserve studies 25
within the prior 3 calendar years while employed by a firm that prepares reserve studies; 26
(iii) Holds a current license from the State Board of Architects or the 27
State Board for Professional Engineers; or 28
(iv) Is currently designated as a reserve specialist by the Community 29
Association Institute or as a professional reserve analyst by the Association of Professional 30
Reserve Analysts; 31
(2) Be available for inspection and copying by any lot owner; 32
(3) Be reviewed by the governing body of the homeowners association in 33
connection with the preparation of the annual proposed budget; and 34 SENATE BILL 63 21
(4) Be summarized for submission with the annual proposed budget to the 1
lot owners. 2
(F) (1) A THE GOVERNING BODY OF A HOMEOWNERS ASSOCIATIO N 3
SHALL, IN CONSULTATION WITH A PERSON IDENTIFIED UNDER SUBSECTION (E)(1) 4
OF THIS SECTION, DEVELOP A FUNDING PL AN TO DETERMINE HOW TO FULLY FUND 5
THE RESERVES NECESSA RY UNDER THIS SECTIO N. 6
(2) IN DEVELOPING THE FUN DING PLAN UNDER THIS SUBSECTION, 7
THE HOMEOWNERS GOVERNING BODY SHALL CONSIDER SELECT ONE OF THE 8
FOLLOWING METHODS TO ACHIEVE THE RESERVE FUNDING UNDER THIS S ECTION: 9
(I) THE COMPONENT OR FULL FUNDING METHOD; 10
(II) THE CASH FLOW M ETHOD; 11
(III) THE BASELINE FUNDING METHOD; 12
(IV) THE THRESHOLD CASH FL OW METHOD ; AND OR 13
(V) OTHER FUNDING METHODS ANY OTHER FUNDING MET HOD 14
CONSISTENT WITH GENE RALLY ACCEPTED ACCOU NTING PRINCIPLES . 15
(3) A FUNDING PLAN DEVELOP ED UNDER THIS SUBSEC TION SHALL 16
PRIORITIZE ADEQUATE AMOUNTS FOR REPAIR A ND REPLACEMENT OF CO MMON 17
ELEMENTS AREAS OF THE HOMEOWNERS AS SOCIATION THAT ARE N ECESSARY FOR : 18
(I) THE HEALTH, SAFETY, AND WELL–BEING OF THE MEMBERS 19
OCCUPANTS; 20
(II) ENSURING STRUCTURAL I NTEGRITY, SUCH AS ROOFING 21
REPLACEMENTS AND MAI NTAINING STRUCTURAL SYSTEMS; AND 22
(III) ESSENTIAL FUNCTIONING , SUCH AS PLUMBING , SEWER, 23
HEATING, COOLING, AND ELECTRICAL INFRA STRUCTURE; AND 24
(IV) ANY OTHER ESSENTIAL O R CRITICAL PURP OSE, AS 25
DETERMINED BY THE GO VERNING BODY . 26
(4) RESERVES MAY NOT BE U SED FOR PURPOSES OTH ER THAN THOSE 27
SPECIFIED IN THE FUN DING PLAN. 28
22 SENATE BILL 63
(4) RESERVES MAY BE USED FOR PURPOSES OTHER T HAN THOSE 1
SPECIFIED IN THE FUN DING PLAN IF THE FUN DS ARE REPAID TO THE RESERVE FUND 2
WITHIN 5 YEARS AFTER THEIR US E. 3
(5) A GOVERNING BODY OF A HOMEOWNERS ASSOCIATI ON SHALL 4
REVIEW PROGRESS TOWA RD COMPLIANCE WITH T HE FUNDING PLAN DEVE LOPED 5
UNDER THIS SUBSECTIO N AT EACH ANNUAL MEE TING OF THE HOMEOWNE RS 6
ASSOCIATION. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2025. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.