EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0728* SENATE BILL 728 N1 5lr2847 CF 5lr2846 By: Charles County Senators Introduced and read first time: January 27, 2025 Assigned to: Judicial Proceedings A BILL ENTITLED AN ACT concerning 1 Charles County – Governing Bodies of Common Ownership Communities – 2 Member Training 3 FOR the purpose of requiring each member of a board of directors or officer of a council of 4 unit owners of a condominium in Charles County and each member of a governing 5 body of a homeowners association in Charles County to successfully complete a 6 certain training curriculum in a certain manner and subject to certain requirements; 7 and generally relating to members of governing bodies of condominiums and 8 homeowners associations in Charles County. 9 BY repealing and reenacting, with amendments, 10 Article – Real Property 11 Section 11–109 and 11B–106.1(g) 12 Annotated Code of Maryland 13 (2023 Replacement Volume and 2024 Supplement) 14 BY repealing and reenacting, without amendments, 15 Article – Real Property 16 Section 11B–106.1(a) 17 Annotated Code of Maryland 18 (2023 Replacement Volume and 2024 Supplement) 19 BY adding to 20 Article – Real Property 21 Section 11B–106.1(g) 22 Annotated Code of Maryland 23 (2023 Replacement Volume and 2024 Supplement) 24 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25 That the Laws of Maryland read as follows: 26 2 SENATE BILL 728 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) THIS SUBSECTION APPLI ES ONLY IN CHARLES COUNTY. 9 (2) EACH MEMBER OF A BOAR D OF DIRECTORS OR OF FICER OF A 10 COUNCIL OF UNIT OWNE RS SHALL SUCCESSFULL Y COMPLETE A TRAININ G 11 CURRICULUM ON THE RE SPONSIBILITIES OF BE ING A MEMBER OR AN O FFICER 12 DEVELOPED BY : 13 (I) A COMMON OWNERSHIP COM MISSION RECOGNIZED B Y THE 14 STATE OR A LOCAL GOVE RNMENT; OR 15 (II) AN ORGA NIZATION APPROVED TO ADMINISTER THE 16 TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION. 17 (3) EACH MEMBER OF THE BO ARD OF DIRECTORS OR OFFICER OF THE 18 COUNCIL OF UNIT OWNE RS SHALL SUCCESSFULL Y COMPLETE THE TRAIN ING 19 CURRICULUM REQUIRED UNDER TH IS SUBSECTION WITHIN 90 DAYS AFTER THE 20 INDIVIDUAL: 21 (I) IS FIRST ELECTED OR A PPOINTED TO THE OFFI CE; OR 22 (II) FOR AN INDIVIDUAL WHO IS IN OFFICE ON OCTOBER 1, 23 2025, BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE BOARD OF DIRECTO RS OR 24 AN OFFICER OF THE C OUNCIL OF UNIT OWNER S. 25 (4) (I) THE BOARD OF DIRECTOR S OR OFFICERS OF THE COUNCIL 26 OF UNIT OWNERS SHALL : 27 1. CERTIFY THAT EACH MEM BER OR OFFICER 28 SUCCESSFULLY COMPLET ES THE TRAINING CURR ICULUM REQUIRED UNDE R THIS 29 SUBSECTION; 30 SENATE BILL 728 3 2. RETAIN A COPY OF TH E CERTIFICATE OF 1 COMPLETION OF EACH M EMBER OR OFFICER ; AND 2 3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 3 MEMBER OR OFFICER , REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 4 CERTIFICATION . 5 (II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 6 PARAGRAPH SHALL BE VALID FOR 3 YEARS. 7 (III) AN INDIVIDUAL WHO REM AINS A MEMBER OF THE BOARD OF 8 DIRECTORS OR AN OFFI CER OF THE COUNCIL O F UNIT OWNERS AT THE TIME THE 9 CERTIFICATE EXPIRES SHALL RENEW THE CERT IFICATION BY SUCCESS FULLY 10 COMPLETING THE TRAIN ING REQUIRED UNDER THIS SU BSECTION. 11 (5) IF A MEMBER OF THE BO ARD OF DIRECTORS OR AN OFFICER OF 12 THE COUNCIL OF UNIT OWNERS DOES NOT SUCC ESSFULLY COMPLETE TH E 13 TRAINING REQUIRED UN DER THIS SUBSECTION , THE BOARD OF DIRECTO RS OR THE 14 COUNCIL OF UNIT OWNE RS MAY: 15 (I) REMOVE THE INDIVIDUAL FROM THE OFFICE ; OR 16 (II) INVALIDATE A VOTE OF THE INDIVIDUAL . 17 [(c)] (D) (1) A meeting of the council of unit owners or board of directors may 18 not be held on less notice than required by this section. 19 (2) The council of unit owners shall maintain a current roster of names and 20 addresses of each unit owner to which notice of meetings of the board of directors shall be 21 sent at least annually. 22 (3) Each unit owner shall furnish the council of unit owners with his name 23 and current mailing address. A unit owner may not vote at meetings of the council of unit 24 owners until this information is furnished. 25 (4) A regular or special meeting of the council of unit owners may not be 26 held on less than 10 nor more than 90 days’: 27 (i) Written notice delivered or mailed to each unit owner at the 28 address shown on the roster on the date of the notice; or 29 (ii) Notice sent to each unit owner by electronic transmission, if the 30 requirements of § 11–139.1 of this title are met. 31 (5) Notice of special meetings of the board of directors shall be given: 32 4 SENATE BILL 728 (i) As provided in the bylaws; or 1 (ii) If the requirements of § 11–139.1 of this title are met, by 2 electronic transmission. 3 (6) Except as provided in § 11–109.1 of this title, a meeting of a governing 4 body shall be open and held at a time and location as provided in the notice or bylaws. 5 (7) (i) This paragraph does not apply to any meeting of the governing 6 body that occurs at any time before the meeting at which the unit owners elect officers or a 7 board of directors in accordance with paragraph (16) of this subsection. 8 (ii) Subject to subparagraph (iii) of this paragraph and to reasonable 9 rules adopted by the governing body under § 11–111 of this title, a governing body shall 10 provide a designated period of time during a meeting to allow unit owners an opportunity 11 to comment on any matter relating to the condominium. 12 (iii) During a meeting at which the agenda is limited to specific topics 13 or at a special meeting, the unit owners’ comments may be limited to the topics listed on 14 the meeting agenda. 15 (iv) The governing body shall convene at least one meeting each year 16 at which the agenda is open to any matter relating to the condominium. 17 (8) (i) Unless the bylaws provide otherwise, a quorum is deemed 18 present throughout any meeting of the council of unit owners if persons entitled to cast 25 19 percent of the total number of votes appurtenant to all units are present in person or by 20 proxy. 21 (ii) If the number of persons present in person or by proxy at a 22 properly called meeting of the council of unit owners is insufficient to constitute a quorum, 23 an additional meeting of the council of unit owners may be called for the same purpose if: 24 1. The notice of the initial properly called meeting stated: 25 A. That the procedure authorized by this paragraph might be 26 invoked; and 27 B. The date, time, and place of the additional meeting; and 28 2. A majority of the unit owners present vote in person or by 29 proxy to call for the additional meeting. 30 (iii) 1. An additional meeting called under subparagraph (ii) of 31 this paragraph shall occur not less than 15 days after the initial properly called meeting. 32 SENATE BILL 728 5 2. Not less than 10 days before the additional meeting, a 1 separate and distinct notice of the date, time, place, and purpose of the additional meeting 2 called under subparagraph (ii) of this paragraph shall be: 3 A. Delivered, mailed, or sent by electronic transmission if the 4 requirements of § 11–139.1 of this title are met, to each unit owner at the address shown 5 on the roster maintained under paragraph (2) of this subsection; 6 B. Advertised in a newspaper published in the county where 7 the condominium is located; or 8 C. If the condominium has a website, posted on the homepage 9 of the website. 10 3. The notice shall contain the quorum and voting provisions 11 of subparagraph (iv) of this paragraph. 12 (iv) 1. At the additional meeting, the unit owners present in 13 person or by proxy constitute a quorum. 14 2. Unless the bylaws provide otherwise, a majority of the 15 unit owners present in person or by proxy: 16 A. May approve or authorize the proposed action at the 17 additional meeting; and 18 B. May take any other action that could have been taken at 19 the original meeting if a sufficient number of unit owners had been present. 20 (v) This paragraph may not be construed to affect the percentage of 21 votes required to amend the declaration or bylaws or to take any other action required to 22 be taken by a specified percentage of votes. 23 (9) At meetings of the council of unit owners each unit owner shall be 24 entitled to cast the number of votes appurtenant to his unit. Unit owners may vote by proxy, 25 but the proxy is effective only for a maximum period of 180 days following its issuance, 26 unless granted to a lessee or mortgagee. 27 (10) Any proxy may be revoked at any time at the pleasure of the unit owner 28 or unit owners executing the proxy. 29 (11) A proxy who is not appointed to vote as directed by a unit owner may 30 only be appointed for purposes of meeting quorums and to vote for matters of business 31 before the council of unit owners, other than an election of officers and members of the 32 board of directors. 33 6 SENATE BILL 728 (12) Only a unit owner voting in person or by electronic transmission if the 1 requirements of § 11–139.2 of this title are met or a proxy voting for candidates designated 2 by a unit owner may vote for officers and members of the board of directors. 3 (13) Unless otherwise provided in the bylaws, a unit owner may nominate 4 himself or any other person to be an officer or member of the board of directors. A call for 5 nominations shall be sent to all unit owners not less than 45 days before notice of an election 6 is sent. Only nominations made at least 15 days before notice of an election shall be listed 7 on the election ballot. Candidates shall be listed on the ballot in alphabetical order, with 8 no indicated candidate preference. Nominations may be made from the floor at the meeting 9 at which the election to the board is held. 10 (14) Election materials prepared with funds of the council of unit owners 11 shall list candidates in alphabetical order and may not indicate a candidate preference. 12 (15) Unless otherwise provided in this title, and subject to provisions in the 13 bylaws requiring a different majority, decisions of the council of unit owners shall be made 14 on a majority of votes of the unit owners listed on the current roster present and voting. 15 (16) (i) A meeting of the council of unit owners to elect a board of 16 directors for the council of unit owners, as provided in the condominium declaration or 17 bylaws, shall be held within: 18 1. 60 days from the date that units representing 50 percent 19 of the votes in the condominium have been conveyed by the developer to members of the 20 public for residential purposes; or 21 2. If a lesser percentage is specified in the declaration or 22 bylaws of the condominium, 60 days from the date the specified lesser percentage of units 23 in the condominium are sold to members of the public for residential purposes. 24 (ii) 1. Before the date of the meeting held under subparagraph 25 (i) of this paragraph, the developer shall deliver to each unit owner notice that the 26 requirements of subparagraph (i) of this paragraph have been met. 27 2. The notice shall include the date, time, and place of the 28 meeting to elect the board of directors for the council of unit owners. 29 (iii) If a replacement board member is elected, the term of each 30 member of the board of directors appointed by the developer shall end 10 days after the 31 meeting is held as specified in subparagraph (i) of this paragraph. 32 (iv) Within 30 days from the date of the meeting held under 33 subparagraph (i) of this paragraph, the developer shall deliver to the officers or board of 34 directors for the council of unit owners, as provided in the condominium declaration or 35 bylaws, at the developer’s expense: 36 SENATE BILL 728 7 1. The documents specified in § 11–132 of this title; 1 2. The condominium funds, including operating funds, 2 replacement reserves, investment accounts, and working capital; 3 3. The tangible property of the condominium; and 4 4. A roster of current unit owners, including mailing 5 addresses, telephone numbers, and unit numbers, if known. 6 (v) The replacement reserves delivered under subparagraph (iv)2 of 7 this paragraph for a residential condominium shall be equal to at least the reserve funding 8 amount recommended in the reserve study completed under § 11–109.4 of this title as of 9 the date of the meeting. 10 (vi) 1. This subparagraph does not apply to a contract entered 11 into before October 1, 2009. 12 2. A. In this subparagraph, “contract” means an 13 agreement with a company or individual to handle financial matters, maintenance, or 14 services for the condominium. 15 B. “Contract” does not include an agreement relating to the 16 provision of utility services or communication systems. 17 3. Until all members of the board of directors of the 18 condominium are elected by the unit owners at a transitional meeting as specified in 19 subparagraph (i) of this paragraph, a contract entered into by the officers or board of 20 directors of the condominium may be terminated, at the discretion of the board of directors 21 and without liability for the termination, not later than 30 days after notice. 22 (vii) If the developer fails to comply with the requirements of this 23 paragraph, an aggrieved unit owner may submit the dispute to the Division of Consumer 24 Protection of the Office of the Attorney General under § 11–130(c) of this title. 25 [(d)] (E) The council of unit owners may be either incorporated as a nonstock 26 corporation or unincorporated and it is subject to those provisions of Title 5, Subtitle 2 of 27 the Corporations and Associations Article which are not inconsistent with this title. The 28 council of unit owners has, subject to any provision of this title, and except as provided in 29 item (22) of this subsection, the declaration, and bylaws, the following powers: 30 (1) To have perpetual existence, subject to the right of the unit owners to 31 terminate the condominium regime as provided in § 11–123 of this title; 32 (2) To adopt and amend reasonable rules and regulations; 33 8 SENATE BILL 728 (3) To adopt and amend budgets for revenues, expenditures, and reserves 1 and collect assessments for common expenses from unit owners; 2 (4) To sue and be sued, complain and defend, or intervene in litigation or 3 administrative proceedings in its own name on behalf of itself or two or more unit owners 4 on matters affecting the condominium; 5 (5) To transact its business, carry on its operations and exercise the powers 6 provided in this subsection in any state, territory, district, or possession of the United 7 States and in any foreign country; 8 (6) To make contracts and guarantees, incur liabilities and borrow money, 9 sell, mortgage, lease, pledge, exchange, convey, transfer, and otherwise dispose of any part 10 of its property and assets; 11 (7) To issue bonds, notes, and other obligations and secure the same by 12 mortgage or deed of trust of any part of its property, franchises, and income; 13 (8) To acquire by purchase or in any other manner, to take, receive, own, 14 hold, use, employ, improve, and otherwise deal with any property, real or personal, or any 15 interest therein, wherever located; 16 (9) To hire and terminate managing agents and other employees, agents, 17 and independent contractors; 18 (10) To purchase, take, receive, subscribe for or otherwise acquire, own, 19 hold, vote, use, employ, sell, mortgage, loan, pledge or otherwise dispose of, and otherwise 20 use and deal in and with, shares or other interests in, or obligation of corporations of the 21 State, or foreign corporations, and of associations, partnerships, and individuals; 22 (11) To invest its funds and to lend money in any manner appropriate to 23 enable it to carry on the operations or to fulfill the purposes named in the declaration or 24 bylaws, and to take and to hold real and personal property as security for the payment of 25 funds so invested or loaned; 26 (12) To regulate the use, maintenance, repair, replacement, and 27 modification of common elements; 28 (13) To cause additional improvements to be made as a part of the general 29 common elements; 30 (14) To grant easements, rights–of–way, licenses, leases in excess of 1 year, 31 or similar interests through or over the common elements in accordance with § 11–125(f) 32 of this title; 33 (15) To impose and receive any payments, fees, or charges for the use, rental, 34 or operation of the common elements other than limited common elements; 35 SENATE BILL 728 9 (16) To impose charges for late payment of assessments and, after notice 1 and an opportunity to be heard, levy reasonable fines for violations of the declaration, 2 bylaws, and rules and regulations of the council of unit owners, under § 11–113 of this title; 3 (17) To impose reasonable charges for the preparation and recordation of 4 amendments to the declaration, bylaws, rules, regulations, or resolutions, resale 5 certificates, or statements of unpaid assessments; 6 (18) To provide for the indemnification of and maintain liability insurance 7 for officers, directors, and any managing agent or other employee charged with the 8 operation or maintenance of the condominium; 9 (19) To enforce the implied warranties made to the council of unit owners by 10 the developer under § 11–131 of this title; 11 (20) To enforce the provisions of this title, the declaration, bylaws, and rules 12 and regulations of the council of unit owners against any unit owner or occupant; 13 (21) Generally, to exercise the powers set forth in this title and the 14 declaration or bylaws and to do every other act not inconsistent with law, which may be 15 appropriate to promote and attain the purposes set forth in this title, the declaration or 16 bylaws; and 17 (22) To designate parking for individuals with disabilities, notwithstanding 18 any provision in the declaration, bylaws, or rules and regulations. 19 [(e)] (F) A unit owner may not have any right, title, or interest in any property 20 owned by the council of unit owners other than as holder of a percentage interest in common 21 expenses and common profits appurtenant to his unit. 22 [(f)] (G) A unit owner’s rights as holder of a percentage interest in common 23 expenses and common profits are such that: 24 (1) A unit owner’s right to possess, use, or enjoy property of the council of 25 unit owners shall be as provided in the bylaws; and 26 (2) A unit owner’s interest in the property is not assignable or attachable 27 separate from his unit except as provided in §§ 11–107(d) and 11–112(g) of this title. 28 11B–106.1. 29 (a) A meeting of the members of the homeowners association to elect a governing 30 body of the homeowners association shall be held within: 31 10 SENATE BILL 728 (1) 60 days from the date that at least 75% of the total number of lots that 1 may be part of the development after all phases are complete are sold to members of the 2 public for residential purposes; or 3 (2) If a lesser percentage is specified in the governing documents of the 4 homeowners association, 60 days from the date the specified lesser percentage of the total 5 number of lots in the development after all phases are complete are sold to members of the 6 public for residential purposes. 7 (G) (1) THIS SUBSECTION APPLI ES ONLY IN CHARLES COUNTY. 8 (2) EACH MEMBER OF THE GO VERNING BODY SHALL S UCCESSFULLY 9 COMPLETE A TRAINING CURRICULUM ON THE RE SPONSIBILITIES OF A MEMBER OF 10 THE GOVERNING BODY DEVELOPED BY : 11 (I) A COMMON OWNERSHIP COM MISSION RECOGNIZED B Y THE 12 STATE OR A LOCAL GOVE RNMENT; OR 13 (II) AN ORGANIZATION APPRO VED TO ADMINISTER TH E 14 TRAINING CURRICULUM BY A RECOGNIZED COMM ON OWNERSHIP COMMISS ION. 15 (3) EACH MEMBER OF THE GO VERNING BODY SHALL SUCCESSFU LLY 16 COMPLETE THE TRAININ G CURRICULUM REQUIRE D UNDER THIS SUBSECT ION 17 WITHIN 90 DAYS AFTER THE INDIV IDUAL: 18 (I) IS FIRST ELECTED OR A PPOINTED TO THE GOVE RNING 19 BODY; OR 20 (II) FOR A MEMBER WHO IS I N OFFICE ON OCTOBER 1, 2025, 21 BEGINS A SUBSEQUENT TERM AS A MEMBER OF THE GOVERN ING BODY. 22 (4) (I) THE GOVERNING BODY SH ALL: 23 1. CERTIFY THAT EACH MEM BER SUCCESSFULLY 24 COMPLETES THE TRAINI NG CURRICULUM REQUIR ED UNDER THIS SUBSEC TION; 25 2. RETAIN A COPY OF THE CERTIFICATE OF 26 COMPLETION OF EACH MEMBER ; AND 27 3. WITHIN 90 DAYS AFTER THE CERTI FICATION OF THE 28 MEMBER, REPORT TO THE COMMON OWNERSHIP COMMISSION ON THE 29 CERTIFICATION . 30 SENATE BILL 728 11 (II) A CERTIFICATE OF COMPL ETION ISSUED UNDER T HIS 1 PARAGRAPH SHALL BE V ALID FOR 3 YEARS. 2 (III) IF A MEMBER OF THE GOVERNIN G BODY REMAINS A 3 MEMBER OF THE GOVERN ING BODY AT THE TIME THE CERTIFICATE EXPI RES, THE 4 MEMBER SHALL RENEW T HE CERTIFICATION BY SUCCESSFULLY COMPLET ING THE 5 TRAINING REQUIRED UN DER THIS SUBSECTION . 6 (5) IF A MEMBER OF THE GO VERNING BODY DOES NOT 7 SUCCESSFULLY COMPLET E THE TRAINING REQUI RED UNDER THIS SUBSE CTION, 8 THE GOVERNING BODY M AY: 9 (I) REMOVE THE MEMBER FRO M THE GOVERNING BODY ; OR 10 (II) INVALIDATE A VOTE OF THE MEMBER . 11 [(g)] (H) If the declarant fails to comply with the requirements of this section, an 12 aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the 13 Office of the Attorney General under § 11B–115(c) of this title. 14 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15 October 1, 2025. 16