Real Property - Regulation of Common Ownership Community Managers

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0853*

HOUSE BILL 853
C2, N1 6lr1698
HB 303/25 – ENT
By: Delegates Holmes, Boafo, Boyce, Ebersole, Harrison, Healey, Lehman, J. Long,
Patterson, Roberts, Ross, Ruth, Stein, and Taveras
Introduced and read first time: February 4, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Real Property – Regulation of Common Ownership Community Managers 2

FOR the purpose of creating the State Board of Common Ownership Community Managers 3
in the Maryland Department of Labor to oversee the licensing of community 4
managers who provide management services for common ownership communities; 5
requiring a common ownership community to register with the Board under certain 6
circumstances; imposing certain duties on a contracting party concerning a fidelity 7
bond or theft insurance under certain circumstances; requiring a contract to provide 8
management services to include certain provisions; making certain provisions of this 9
Act subject to the Maryland Program Evaluation Act; establishing the State Board 10
of Common Ownership Community Managers Fund as a special, nonlapsing fund; 11
requiring that certain interest earnings be credited to the Fund; requiring the 12
Secretary of Labor, in consultation with the Board, to calculate certain costs 13
annually; authorizing the Department of Budget and Management to advance 14
certain funds to the Board and requiring the Board to reimburse certain funds under 15
certain circumstances; and generally relating to the regulation of common ownership 16
community managers. 17

BY renumbering 18
Article – State Government 19
Section 8–403(13) through (65) 20
to be Section 8–403(14) through (66), respectively 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2025 Supplement) 23

BY adding to 24
Article – Business Occupations and Professions 25
Section 22 –101 through 22 –802 to be under the new title “Title 22. Common 26
Ownership Community Managers” 27
Annotated Code of Maryland 28
2 HOUSE BILL 853

(2018 Replacement Volume and 2025 Supplement) 1

BY adding to 2
Article – Business Regulation 3
Section 2–106.17, 2–106.18, and 2–108(a)(34) 4
Annotated Code of Maryland 5
(2024 Replacement Volume and 2025 Supplement) 6

BY adding to 7
Article – Corporations and Associations 8
Section 5–6B–12.1 9
Annotated Code of Maryland 10
(2025 Replacement Volume) 11

BY adding to 12
Article – Real Property 13
Section 11–130.1 and 11B–115.2 14
Annotated Code of Maryland 15
(2023 Replacement Volume and 2025 Supplement) 16

BY repealing and reenacting, without amendments, 17
Article – State Finance and Procurement 18
Section 6–226(a)(2)(i) and (ii) 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2025 Supplement) 21

BY repealing and reenacting, with amendments, 22
Article – State Finance and Procurement 23
Section 6–226(a)(2)(iii)212. and 213. 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2025 Supplement) 26

BY adding to 27
Article – State Finance and Procurement 28
Section 6–226(a)(2)(iii)214. 29
Annotated Code of Maryland 30
(2021 Replacement Volume and 2025 Supplement) 31

BY adding to 32
Article – State Government 33
Section 8–403(13) 34
Annotated Code of Maryland 35
(2021 Replacement Volume and 2025 Supplement) 36

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 37
That Section(s) 8 –403(13) through (65) of Article – State Government of the Annotated 38
Code of Maryland be renumbered to be Section(s) 8–403(14) through (66), respectively. 39
HOUSE BILL 853 3

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
as follows: 2

Article – Business Occupations and Professions 3

TITLE 22. COMMON OWNERSHIP COMMUNITY MANAGERS. 4

SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 5

22–101. 6

(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 7
INDICATED. 8

(B) “BOARD” MEANS THE STATE BOARD OF COMMON OWNERSHIP 9
COMMUNITY MANAGERS. 10

(C) (1) “COMMON OWNERSHIP COMMUNITY” MEANS: 11

(I) A CONDOMINIUM AS DEF INED IN § 11–101 OF THE REAL 12
PROPERTY ARTICLE THAT IS USED FOR RESIDENTIAL PURPOSES; 13

(II) A COOPERATIVE HOUSING CORPORATION AS DEF INED IN § 14
5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND 15

(III) A HOMEOWNERS ASSOCIATION AS DEFINED IN § 11B–101 OF 16
THE REAL PROPERTY ARTICLE. 17

(2) “COMMON OWNERSHIP COMM UNITY” DOES NOT INCLUDE A 18
TIME–SHARE PROJECT AS DEF INED IN § 11A–101 OF THE REAL PROPERTY 19
ARTICLE. 20

(D) “LICENSE” MEANS, UNLESS THE CONTEXT R EQUIRES OTHERWISE , A 21
LICENSE ISSUED BY TH E BOARD UNDER SUBTITLE 3 OF THIS TITLE THAT ALLOWS 22
AN INDIVIDUAL TO PROVIDE MANAGEMENT SERVICES FOR A COMMON OW NERSHIP 23
COMMUNITY. 24

(E) “LICENSED ASSOCIATE CO MMUNITY MANAGER ” MEANS, UNLESS THE 25
CONTEXT REQUIRES OTH ERWISE, AN INDIVIDUAL WHO IS ISSUED A LIMITED 26
LICENSE BY THE BOARD UNDER SUBTITLE 4 OF THIS TITLE TO PRO VIDE 27
MANAGEMENT SERVICES FOR A COMMON OWNERSH IP COMMUNITY UNDER T HE 28
SUPERVISION OF A LICENSED COMMUNITY MANAGER. 29

4 HOUSE BILL 853

(F) “LICENSED COMMUNITY MANA GER” MEANS, UNLESS THE CONTEXT 1
REQUIRES OTHERWISE, AN INDIVIDUAL WHO IS ISSUED A LICENSE BY THE BOARD 2
UNDER SUBTITLE 3 OF THIS TITLE TO PROVIDE MANAGEMEN T SERVICES FOR A 3
COMMON OWNERSHIP COMMUNITY. 4

(G) “LIMITED LICENSE ” MEANS, UNLESS THE CONTEXT REQUIRES 5
OTHERWISE, A LIMITED LICENSE ISSUED BY THE BOARD UNDER SUBTITLE 4 OF THIS 6
TITLE THAT ALLOWS THE INDIVIDUAL TO PROVIDE MANAGEMENT SERVICES FOR A 7
COMMON OWNERSHIP COM MUNITY UNDER THE SUP ERVISION OF A LICENS ED 8
COMMUNITY MANAGER. 9

(H) “PROVIDE MANAGEMENT SERVICES” MEANS: 10

(1) TO ACT WITH THE AUTH ORITY OF THE COMMON OWNERSHIP 11
COMMUNITY IN ITS BUSINESS, LEGAL, FINANCIAL, OR OTHER TRANSACTIONS WITH 12
MEMBERS AND NONMEMBERS OF THE COMMON OWNERSHIP COMMUNITY; 13

(2) TO EXECUTE THE RESOL UTIONS A ND DECISIONS OF A CO MMON 14
OWNERSHIP COMMUNITY; 15

(3) TO ENFORCE THE RIGHT S OF THE COMMON OWNE RSHIP 16
COMMUNITY SECURED BY STATUTE, CONTRACT, COVENANT, RULE, OR BYLAW WITH 17
THE AUTHORITY OF THE COMMON OWNERSHIP COMMUNITY; 18

(4) TO NEGOTIATE CONTRAC TS OR OTHER WISE COORDINATE OR 19
ARRANGE FOR SERVICES OR THE PURCHASE OF PROPERTY AND GOODS FOR OR ON 20
BEHALF OF A COMMON OWNERSHIP COMMUNITY; 21

(5) TO COLLECT, DISBURSE, OR OTHERWISE EXERCISE DOMINION OR 22
CONTROL OVER MONEY O R OTHER PROPERTY BEL ONGING TO A COMMON 23
OWNERSHIP COMMUNITY; 24

(6) TO PREPARE BUDGETS , FINANCIAL STATEMENTS , OR OTHER 25
FINANCIAL REPORTS FOR A COMMON OWNERSHIP COMMUNITY; 26

(7) TO ARRANGE , CONDUCT, OR COORDINATE MEETIN GS OF A 27
COMMON OWNERSHIP COM MUNITY OR THE GOVERN ING BODY OF A COMMON 28
OWNERSHIP COMMUNITY; OR 29

(8) TO OFFER OR SOLICIT TO PERFORM ANY OF TH E ACTS OR 30
SERVICES LISTED IN ITEMS (1) THROUGH (7) OF THIS SUBSECTION ON BEHALF OF A 31
COMMON OWNERSHIP COMMUNITY. 32

HOUSE BILL 853 5

(I) “RESPONSIBLE MANAGER” MEANS A LICENSED COM MUNITY MANAGER 1
WHO HAS PRIMARY RESPONSIBILITY FOR PROVIDING MANAGEMENT SERVICES TO A 2
COMMON OWNERSHIP COM MUNITY UNDER THE TER MS OF A CONTRACT ENT ERED 3
INTO BY THE COMMON OWNERSHIP COMMUNITY. 4

22–102. 5

THE PROVISIONS OF THIS TITLE THAT REQUIRE AN INDIVIDUAL TO BE ISSUED 6
A LICENSE OR A LIMITED LICENSE DO NOT PROHIBIT: 7

(1) AN INDIVIDUAL WHO IS A REGULAR, SALARIED EMPLOYEE OF A 8
LICENSED COMMUNITY MANAGER OR A SINGLE C OMMON OWNERSHIP COMMUNITY 9
FROM PERFORMING ADMINISTRATIVE, INTERNAL, BOOKKEEPING, OR MINISTERIAL 10
FUNCTIONS IN SUPPORT OF THE LICENSED COMMUNITY MANAGER OR THE SINGLE 11
COMMON OWNERSHIP COMMUNITY; 12

(2) AN INDIVIDUAL WHO IS ADMINISTRATIVE SUPPORT STAFF OR AN 13
ASSISTANT OF A LICENSED COMMUNITY MANAGER FROM INCIDENTALLY PROVIDING 14
MANAGEMENT SERVICES IF THE INDIVIDUAL IS SUPERVISED BY A LICENSED 15
COMMUNITY MANAGER; 16

(3) A RESIDENT OF A COMM ON OWNERSHIP COMMUNI TY WHO ACTS 17
WITHOUT COMPENSATION FROM PROVIDING MANAG EMENT SERVICES FOR T HAT 18
COMMON OWNERSHIP COMMUNITY; 19

(4) A MEMBER OF THE GOVERNING BODY OF A COMMON OWNERSHIP 20
COMMUNITY WHO ACTS WITHOUT COMPENSATION FROM PROVIDING MANAGEMENT 21
SERVICES FOR THAT COMMON OWNERSHIP COMMUNITY; 22

(5) AN ATTORNEY AT LAW F ROM REPRESENTING A C OMMON 23
OWNERSHIP COMMUNITY , A LICENSED COMMUNITY MANAGER, OR A LICENSED 24
ASSOCIATE COMMUNITY MANAGER IN ANY BUSINESS THAT CO NSTITUTES THE 25
PRACTICE OF LAW; 26

(6) AN INDIVIDUAL LICENS ED UNDER THIS ARTICL E AS A LICENSED 27
CERTIFIED PUBLIC ACC OUNTANT, A LICENSED REAL ESTA TE BROKER , OR A 28
LICENSED ASSOCIATE R EAL ESTATE BROKER FROM PROVIDING TO A COMMON 29
OWNERSHIP COMMUNITY THE SERVICES FOR WHICH THE INDIVIDUAL IS LICENSED; 30

(7) AN INDIVIDUAL WHO AC TS AS A RECEIVER OR TRUSTEE IN 31
BANKRUPTCY IN THE PE RFORMANCE OF DUTIES OR AN INDIVIDUAL WHO ACTS 32
UNDER A COURT ORDER FROM PROVIDING MANAGEMENT SERVICES FOR A COMMON 33
OWNERSHIP COMMUNITY; OR 34

6 HOUSE BILL 853

(8) AN INDIVIDUAL WHO IS AN EMPLOYEE OF A COMMON OWNERSHIP 1
COMMUNITY FROM PROVI DING MANAGEMENT SERV ICES ONLY TO THAT CO MMON 2
OWNERSHIP COMMUNITY OR TO AN AFFILIATED COMMON OWNERSHIP COMMUNITY. 3

SUBTITLE 2. STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS. 4

22–201. 5

THERE IS A STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS 6
IN THE DEPARTMENT. 7

22–202. 8

(A) (1) THE BOARD CONSISTS OF NINE MEMBERS. 9

(2) OF THE NINE MEMBERS OF THE BOARD: 10

(I) FIVE SHALL BE LICENSED CO MMON OWNERSHIP 11
COMMUNITY MANAGERS; 12

(II) ONE SHALL BE A LAWYER, AS DEFINED IN § 10–101 OF THIS 13
ARTICLE, WHOSE PRIMARY PRACTI CE INCLUDES THE REPR ESENTATION OF 14
COMMON OWNERSHIP COMMUNITIES; AND 15

(III) THREE SHALL BE RESIDENT OW NERS IN A COMMON 16
OWNERSHIP COMMUNITY. 17

(3) THE GOVERNOR SHALL APPOIN T THE MEMBERS WITH T HE 18
ADVICE OF THE SECRETARY AND THE ADVICE AND CONSENT OF THE SENATE. 19

(B) EACH MEMBER OF THE BOARD MUST BE A RESIDENT OF THE STATE. 20

(C) BEFORE TAKING OFFICE, EACH APPOINTEE TO THE BOARD SHALL TAKE 21
THE OATH REQUIRED BY ARTICLE I, § 9 OF THE MARYLAND CONSTITUTION. 22

(D) (1) THE TERM OF A MEMBER IS 4 YEARS AND BEGINS JULY 1. 23

(2) THE TERMS OF THE MEMBERS ARE STAGGERED AS REQUIRED BY 24
THE TERMS PROVIDED FOR MEMBERS OF THE BOARD ON OCTOBER 1, 2027. 25

(3) AT THE END OF A TERM , A MEMBER CONTINUES TO SERVE UNTIL 26
A SUCCESSOR IS APPOINTED AND QUALIFIES. 27

HOUSE BILL 853 7

(4) A MEMBER WHO IS APPOINTED AFTER A TERM HAS BEGUN SERVES 1
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 2
QUALIFIES. 3

(5) A MEMBER MAY NOT SERVE MORE THAN TWO CONSEC UTIVE 4
TERMS. 5

22–203. 6

FROM AMONG THE MEMBER S OF THE BOARD, THE GOVERNOR SHALL 7
APPOINT A CHAIR AND A VICE CHAIR. 8

22–204. 9

(A) A MAJORITY OF THE MEMB ERS THEN SERVING ON THE BOARD IS A 10
QUORUM. 11

(B) THE BOARD SHALL DETERMINE THE TIMES AND PLACES OF ITS 12
MEETINGS. 13

(C) A MEMBER OF THE BOARD: 14

(1) MAY NOT RECEIVE COMPENSATION AS A MEMBER OF THE BOARD; 15
BUT 16

(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 17
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. 18

(D) THE BOARD MAY EMPLOY STAF F IN ACCORDANCE WITH THE STATE 19
BUDGET. 20

22–205. 21

(A) IN ADDITION TO ANY PO WERS SET FORTH ELSEW HERE, THE BOARD 22
MAY: 23

(1) ADOPT BYLAWS AS NECE SSARY TO DO THE BUSI NESS OF THE 24
BOARD; AND 25

(2) ADOPT ANY REGULATIONS TO CARRY OUT THIS TITLE. 26

(B) IN ADDITION TO ANY DU TIES SET FORTH ELSEW HERE, THE BOARD 27
SHALL: 28

8 HOUSE BILL 853

(1) ADOPT RULES OF PROFESSIONAL CONDUCT AS APPROPRIATE FOR 1
INDIVIDUALS ISSUED A LICENSE OR A LIMITED LICENSE UNDER THIS TITLE; 2

(2) ESTABLISH CRITERIA AND A PROCESS FOR CERTIFICATION OF A 3
VARIETY OF EDUCATION AL OFFERINGS AND TRA INING PROGRAMS FOR ISSUING 4
LICENSES OR LIMITED LICENSES UNDER THIS TITLE; 5

(3) ESTABLISH CONTINUING EDUCATION REQUIREMEN TS FOR 6
INDIVIDUALS WHO HAVE BEEN ISSUED A LICENS E OR A LIMITED LICENSE UNDER 7
THIS TITLE; AND 8

(4) KEEP A RECORD OF ITS PROCEEDINGS. 9

(C) THE BOARD MAY ESTABLISH BY REGULATION: 10

(1) THE PROCESS OF RESOL VING DISCIPLINARY MA TTERS PENDING 11
BEFORE THE BOARD THROUGH NONJUDICIAL DISPUTE RESOLUTION PROCESSES; 12

(2) EDUCATION AND TRAINI NG OPPORTUNITIES FOR GOVERNING 13
BODIES OF COMMON OWNERSHIP COMMUNITIES; AND 14

(3) ANY OTHER PROCEDURES OR STANDARDS CONSISTENT WITH THE 15
MISSION OF THE BOARD. 16

22–206. 17

(A) THE BOARD SHALL MAINTAIN A PUBLIC LIST OF THE NAMES AND 18
MAILING ADDRESSES OF ALL INDIVIDUALS ISSU ED A LICENSE OR A LI MITED 19
LICENSE UNDER THIS TITLE. 20

(B) EACH INDIVIDUAL ISSUE D A LICENSE OR A LIM ITED LICENSE UNDER 21
THIS TITLE SHALL: 22

(1) DESIGNATE A MAILING ADDRESS AT THE TIME OF ISSUANCE OF 23
THE ORIGINAL LICENSE OR LIMITED LICENSE AND ON RENEWAL OF THE LICENSE OR 24
LIMITED LICENSE; AND 25

(2) NOTIFY THE BOARD OF A CHANGE OF ADDRESS WITHIN 30 DAYS 26
AFTER THE CHANGE. 27

22–207. 28

(A) (1) THE BOARD MAY SET BY REGULATION REASONABLE FEES FOR ITS 29
SERVICES. 30
HOUSE BILL 853 9

(2) THE FEES CHARGED SHALL BE: 1

(I) SET SO AS TO PRODUCE FUNDS TO APPROXIMATE THE COST 2
OF MAINTAINING THE BOARD; 3

(II) BASED ON THE CALCULA TIONS PERFORMED BY T HE 4
SECRETARY UNDER § 2–106.18 OF THE BUSINESS REGULATION ARTICLE; AND 5

(III) CONSISTENT WITH OT HER FEES FOR COMPARA BLE 6
LICENSES ISSUED BY OTHER BOARDS AND COMMISSIONS IN THE STATE. 7

(B) THE BOARD SHALL PUBLISH THE FEE SCHEDULE SET BY THE BOARD. 8

(C) (1) THE BOARD SHALL PAY ALL FEES COLLECTED UNDER THIS TITLE 9
TO THE COMPTROLLER. 10

(2) THE COMPTROLLER SHALL DISTRIBUTE THE FEES TO THE STATE 11
BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS FUND ESTABLISHED 12
UNDER § 2–106.17 OF THE BUSINESS REGULATION ARTICLE. 13

22–208. 14

THE BOARD EXERCISES ITS P OWERS, DUTIES, AND FUNCTIONS SUBJEC T TO 15
THE AUTHORITY OF THE SECRETARY. 16

22–209. 17

(A) IN ADDITION TO ANY OTHER REMEDY AUTHORIZED UNDER THIS TITLE, 18
THE BOARD, WITH THE APPROVAL OF THE ATTORNEY GENERAL, MAY SUE IN THE 19
NAME OF THE STATE TO ENJOIN ANY ACT THAT IS PROHIBITED UNDER SUBTITLE 7 20
OF THIS TITLE. 21

(B) THE BOARD MAY TAKE APPROPRIATE ACTIONS TO: 22

(1) ASSIST A COMMON OWNE RSHIP COMMUNITY IN E XERCISING ANY 23
RIGHTS OF THE COMMON OWNERSHIP COMMUNITY UNDER THIS TITLE; OR 24

(2) ENTER INTO COOPERATI VE AND INFORMATION –SHARING 25
AGREEMENTS WITH ANY UNIT OF LAW ENFORCEMENT AS ALLOWED BY LAW. 26

SUBTITLE 3. LICENSED COMMUNITY MANAGERS. 27

22–301. 28

10 HOUSE BILL 853

(A) AN INDIVIDUAL MUST BE ISSUED A LICENSE BY THE BOARD BEFORE 1
THE INDIVIDUAL MAY P ROVIDE MANAGEMENT SE RVICES AS A LICENSED 2
COMMUNITY MANAGER FOR A COMMON OWNERSHIP COMMUNITY IN THE STATE. 3

(B) A LICENSED COMMUNITY M ANAGER MAY PROVIDE M ANAGEMENT 4
SERVICES FOR A COMMON OWNERSHIP COMMUNITY ONLY UNDER THE TER MS OF A 5
CONTRACT ENTERED INTO BY THE COMMON OWNERSHIP COMMUNITY. 6

22–302. 7

(A) TO QUALIFY FOR A LICE NSE, AN APPLICANT MUST BE AN INDIVIDUAL 8
WHO MEETS: 9

(1) THE REQUIREMENTS OF THIS SECTION; AND 10

(2) ANY OTHER QUALIFICAT ION AS REQUIRED BY R EGULATION OF 11
THE BOARD. 12

(B) AN APPLICANT MUST BE A LICENSED ASSOCIATE COMMUNITY 13
MANAGER. 14

(C) AN APPLICANT SHALL: 15

(1) COMPLETE A TRAINING PROGRAM APPROVED BY THE BOARD; AND 16

(2) PASS AN EXAMINATION APPROVED BY THE BOARD THAT 17
INCLUDES TESTING OF KNOWLEDGE OF STATE LAWS AND REGULA TIONS 18
CONCERNING COMMON OWNERSHIP COMMUNITIES. 19

(D) AN APPLICANT MUST: 20

(1) BE ACTIVELY E NGAGED IN PROVIDING MANAGEMENT SERVICES 21
FOR AT LEAST 5 YEARS AS A LICENSED ASSOCIATE COMMUNITY MANAGER BEFORE 22
APPLYING FOR A LICENSE; OR 23

(2) HOLD AN ACTIVE PROFESSIONAL DESIGNATION AS APPROVED BY 24
THE BOARD. 25

22–303. 26

AN APPLICANT FOR A LICENSE SHALL: 27

(1) SUBMIT TO THE BOARD AN APPLICATION ON THE FORM THAT THE 28
BOARD PROVIDES; AND 29

HOUSE BILL 853 11

(2) PAY TO THE BOARD AN APPLICATION FEE SET BY THE BOARD. 1

22–304. 2

(A) IF AN APPLICANT QUALI FIES FOR A LICENSE U NDER THIS SUBTITLE , 3
THE BOARD SHALL SEND THE APPLICANT A NOTICE THAT STATES THAT: 4

(1) THE APPLICANT HAS QUALIFIED FOR A LICENSE; AND 5

(2) ON RECEIPT OF THE LICENSE FEE SET BY THE BOARD, THE BOARD 6
WILL ISSUE A LICENSE TO THE APPLICANT. 7

(B) ON PAYMENT OF THE LICENSE FEE, THE BOARD SHALL ISSUE A LICENSE 8
TO EACH APPLICANT WHO MEETS THE REQUIREMENTS OF THIS SUBTITLE. 9

22–305. 10

WHILE IN EFFECT , A LICENSE AUTHORIZES THE LICENSED COMMUNI TY 11
MANAGER TO PROVIDE MANAGEMEN T SERVICES TO A COMM ON OWNERSHIP 12
COMMUNITY. 13

22–306. 14

(A) THE TERM OF A LICENSE IS 2 YEARS. 15

(B) AT LEAST 2 MONTHS BEFORE A LICE NSE EXPIRES, THE BOARD SHALL 16
SEND TO THE LICENSED COMMUNITY MANAGER, AT THE LAST KNOWN AD DRESS OF 17
THE LICENSED COMMUNITY MANAGER: 18

(1) A RENEWAL APPLICATION FORM; AND 19

(2) A NOTICE THAT STATES: 20

(I) THE DATE ON WHICH THE CURRENT LICENSE EXPIRES; 21

(II) THE DATE BY WHICH TH E BOARD MUST RECEIVE TH E 22
RENEWAL APPLICATION FOR THE RENEWAL TO BE ISSUED AND MAILED BEFORE THE 23
LICENSE EXPIRES; AND 24

(III) THE AMOUNT OF THE RENEWAL FEE. 25

(C) (1) THE BOARD SHALL RENEW THE LICENSE OF AND ISSUE A 26
RENEWAL CERTIFICATE TO EACH LICENSED COMMUNITY MANAGER WHO MEETS THE 27
REQUIREMENTS OF THIS SECTION. 28

12 HOUSE BILL 853

(2) THE BOARD SHALL INCLUDE O N EACH RENEWAL CERTI FICATE 1
THE DATE ON WHICH THE CURRENT LICENSE EXPIRES. 2

22–307. 3

(A) THE BOARD SHALL REINSTATE THE LIC ENSE OF AN INDIVIDUA L WHO 4
HAS FAILED TO RENEW THE LICENSE IF THE INDIVIDUAL: 5

(1) APPLIES TO THE BOARD FOR REINSTATEME NT WITHIN 2 YEARS 6
AFTER THE LICENSE EXPIRES; 7

(2) MEETS THE RENEWAL RE QUIREMENTS OF § 22–306 OF THIS 8
SUBTITLE; AND 9

(3) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE BOARD. 10

(B) (1) IF AN INDIVIDUAL HAS FAILED TO RENEW A LI CENSE AND THEN 11
APPLIES TO THE BOARD FOR REINSTATEME NT MORE THAN 2 YEARS AFTER THE 12
LICENSE HAS EXPIRED, THE BOARD: 13

(I) MAY REQUIRE THE INDIVIDUAL TO REAPPLY FOR A LICENSE 14
IN THE SAME MANNER A S AN APPLICANT APPLI ES FOR A LICENSE UND ER THIS 15
SUBTITLE; OR 16

(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , MAY 17
REINSTATE THE LICENSE. 18

(2) THE BOARD MAY REINSTATE A LICENSE UNDER PARAGRAPH (1) 19
OF THIS SUBSECTION ONLY IF THE INDIVIDUAL: 20

(I) MEETS THE RENEWAL REQUIREMENTS OF § 22–306 OF THIS 21
SUBTITLE; 22

(II) IF REQUIRED BY THE BOARD, STATES REASONS WHY 23
REINSTATEMENT SHOULD BE GRANTED; AND 24

(III) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE 25
BOARD. 26

22–308. 27

(A) SUBJECT TO THE PROVISIONS OF THIS SECTION, THE BOARD MAY ISSUE 28
BY RECIPROCITY A LICENSE TO AN INDIVIDUAL WHO HAS THE EQUIVALENT LICENSE 29
IN ANOTHER STATE OR TERRITORY OF THE UNITED STATES. 30
HOUSE BILL 853 13

(B) THE BOARD MAY ISSUE A LIC ENSE UNDER THIS SECTION ONLY IF THE 1
APPLICANT: 2

(1) PAYS TO THE BOARD A LICENSE FEE SET BY THE BOARD; AND 3

(2) PROVIDES ADEQUATE EV IDENCE THAT AT THE T IME OF 4
APPLICATION FOR LICE NSURE UNDER THIS SEC TION THE APPLICANT H AS MET 5
REQUIREMENTS THAT AR E SUBSTANTIALLY EQUIVALENT TO THE RE QUIREMENTS 6
OF THE STATE. 7

(C) THE BOARD SHALL ESTABLISH STANDARDS FOR THE IS SUANCE OF A 8
LICENSE UNDER THIS SECTION. 9

22–309. 10

(A) SUBJECT TO THE HEARING PROVISIONS OF § 22–311 OF THIS SUBTITLE, 11
THE BOARD MAY DENY A LICE NSE TO ANY APP LICANT, REPRIMAND ANY LICENSED 12
COMMUNITY MANAGER, OR SUSPEND OR REVOKE A LICENSE IF THE APPLICANT OR 13
LICENSED COMMUNITY MANAGER: 14

(1) FRAUDULENTLY OR DECE PTIVELY OBTAINS OR A TTEMPTS TO 15
OBTAIN A LICENSE FOR THE APPLICANT OR LIC ENSED COMMUNITY MANA GER OR 16
FOR ANOTHER; 17

(2) FRAUDULENTLY OR DECEPTIVELY USES A LICENSE; 18

(3) UNDER THE LAWS OF TH E UNITED STATES OR OF ANY STAT E, IS 19
CONVICTED OF: 20

(I) A FELONY; OR 21

(II) A MISDEMEANOR THAT I S DIRECTLY RELATED T O THE 22
FITNESS AND QUALIFIC ATIONS OF THE APPLICANT OR LICENSE D COMMUNITY 23
MANAGER TO PROVIDE MANAGEMENT SERVICES; 24

(4) ENGAGES IN CONDUCT T HAT DEMONSTRATES BAD FAITH, 25
INCOMPETENCY, OR UNTRUSTWORTHINESS OR THAT CONSTITUTES DISHONEST, 26
FRAUDULENT, OR IMPROPER DEALINGS; 27

(5) FAILS TO HANDLE THE FUNDS OF A COMMON OW NERSHIP 28
COMMUNITY IN ACCORDANCE WITH THE PROVISIONS OF THIS TITLE; 29

14 HOUSE BILL 853

(6) FAILS TO ACCOUNT IN A TIMELY MANNER FOR ALL MONEY AND 1
PROPERTY RECEIVED ON BEHALF OF A COMMON OWNERSHIP COMMUNITY; 2

(7) WILLFULLY FAILS TO DISCLOSE TO A COMMON OWNERSHIP 3
COMMUNITY MATERIAL F ACTS THAT RELATE TO THE PROPERTY OF THE COMMON 4
OWNERSHIP COMMUNITY OR CONCERN MANAGEMEN T SERVICES OF WHICH THE 5
LICENSED COMMUNITY MANAGER HAS ACTUAL KNOWLEDGE; 6

(8) IS GUILTY OF GROSS N EGLIGENCE, INCOMPETENCE THAT IS 7
PROVEN TO HAVE BEEN DETRIMENTAL TO A COMMON OWNERSHIP COMMUNITY, OR 8
MISCONDUCT IN PROVIDING MANAGEMENT SERVICES; 9

(9) HAS BEEN SANCTIONED IN ANOTHER STATE IN A MATTER 10
RELATING TO PROVIDING MANAGEMENT SERVICES; 11

(10) VIOLATES ANY OTHER PROVISION OF THIS TITLE; OR 12

(11) VIOLATES ANY REGULAT ION ADOPTED BY THE BOARD UNDER 13
THIS TITLE. 14

(B) (1) INSTEAD OF OR IN ADDI TION TO REPRIMANDING THE LICENSED 15
COMMUNITY MANAGER OR SUSPENDING OR REV OKING A LICENSE UNDE R THIS 16
SECTION, THE BOARD MAY IMPOSE A PE NALTY NOT EXCEEDING $5,000 FOR EACH 17
VIOLATION. 18

(2) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 19
THIS SUBSECTION, THE BOARD SHALL CONSIDER: 20

(I) THE SERIOUSNESS OF THE VIOLATION; 21

(II) THE HARM CAUSED BY THE VIOLATION; 22

(III) THE GOOD FAITH OF THE LICENSED COMMUNITY MANAGER; 23
AND 24

(IV) ANY HISTORY OF PREVIOUS VIOLATIONS BY THE LICENSED 25
COMMUNITY MANAGER. 26

(3) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 27
SUBSECTION INTO THE GENERAL FUND OF THE STATE. 28

(C) THE BOARD SHALL CONSIDER THE F OLLOWING FACTS IN TH E 29
GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A LICENSE OR THE 30
REPRIMAND OF A LICEN SED COMMUNITY MANAGE R WHEN AN APPLICANT OR A 31
HOUSE BILL 853 15

LICENSED COMMUNITY M ANAGER IS CONVICTED OF A FELONY OR MISDE MEANOR 1
DESCRIBED IN SUBSECTION (A)(3) OF THIS SECTION: 2

(1) THE NATURE OF THE CRIME; 3

(2) THE RELATIONSHIP OF THE CRIME TO THE ACT IVITIES 4
AUTHORIZED BY THE LICENSE; 5

(3) WITH RESPECT TO A FE LONY, THE RELEVANCE OF THE 6
CONVICTION TO THE FITNESS AND QUALIFICATION OF THE APPLICANT OR LICENSED 7
COMMUNITY MANAGER TO PROVIDE MANAGEMENT SERVICES; 8

(4) THE LENGTH OF TIME SINCE THE CONVICTION; AND 9

(5) THE BEHAVIOR AND ACTIVITIES OF THE APPLICANT OR LICENSED 10
COMMUNITY MANAGER BEFORE AND AFTER THE CONVICTION. 11

22–310. 12

ON ITS OWN INITIATIVE OR ON A WRITTEN COMPLAINT MADE TO THE BOARD 13
BY ANY PERSON , THE BOARD MAY COMMENCE PR OCEEDINGS UNDER § 22–311 OF 14
THIS SUBTITLE. 15

22–311. 16

(A) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 17
GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES ANY FINAL ACTI ON UNDER § 18
22–309 OF THIS SUBTITLE , THE BOARD SHALL GIVE THE INDIVIDUAL AGAINST 19
WHOM THE ACTION IS C ONTEMPLATED AN OPPORTUNITY FOR A HEARING BEFORE 20
THE BOARD. 21

(B) THE BOARD SHALL GIVE NOTI CE AND HOLD THE HEAR ING IN 22
ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 23

(C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH ANY 24
PROCEEDING UNDER THIS SECTION. 25

(D) (1) THE BOARD MAY ISSUE A SUBPOENA FOR THE ATTENDANCE OF A 26
WITNESS TO TESTIFY OR THE PRODUCTION OF EVIDENCE IN CONNECTION WITH ANY 27
PROCEEDING UNDER THIS SECTION. 28

(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOENA ISSUED UNDER 29
THIS SUBSECTION, ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 30
COMPLIANCE WITH THE SUBPOENA. 31
16 HOUSE BILL 853

(E) IF, AFTER DUE NOTICE, THE INDIVIDUAL AGAINST WHOM THE ACTION IS 1
CONTEMPLATED FAILS O R REFUSES TO APPEAR , THE BOARD MAY HEAR AND 2
DETERMINE THE MATTER. 3

22–312. 4

ANY PERSON AGGRIEVED BY A FINAL DECISION OF THE BOARD IN A 5
CONTESTED CASE, AS DEFINED IN § 10–202 OF THE STATE GOVERNMENT ARTICLE, 6
IS ENTITLED TO JUDICIAL REVIEW AS PROVIDED IN §§ 10–222 AND 10–223 OF THE 7
STATE GOVERNMENT ARTICLE. 8

22–313. 9

THE BOARD MAY REINSTATE , IN ACCORDANCE WITH T HE PROCEDURES OF 10
THE BOARD: 11

(1) A LICENSE THAT HAS BEEN REVOKED; OR 12

(2) BEFORE FULFILLMENT OF THE CONDITIONS OF THE SUSPENSION, 13
ANY LICENSE THAT HAS BEEN SUSPENDED. 14

SUBTITLE 4. LICENSED ASSOCIATE COMMUNITY MANAGERS. 15

22–401. 16

(A) AN INDIVIDUAL MUST BE I SSUED A LIMITED LICE NSE BY THE BOARD 17
BEFORE THE INDIVIDUA L MAY PROVIDE MANAGE MENT SERVICES AS A LICENSED 18
ASSOCIATE COMMUNITY MANAGER FOR A COMMON OWNERSHIP COMMUNITY IN THE 19
STATE. 20

(B) A LICENSED ASSOCIATE C OMMUNITY MANAGER MAY PROVIDE 21
MANAGEMENT SERVICES FOR A COMMON OWNERSH IP COMMUNITY ONLY WH ILE 22
UNDER THE GENERAL SUPERVISION OF A LICENSED COMMUNITY MANAGER. 23

22–402. 24

(A) TO QUALIFY FOR A LIMI TED LICENSE , AN APPLICANT MUST BE AN 25
INDIVIDUAL WHO MEETS: 26

(1) THE REQUIREMENTS OF THIS SECTION; AND 27

(2) ANY OTHER QUALIFICAT ION REQUIRED BY REGU LATION OF THE 28
BOARD. 29

HOUSE BILL 853 17

(B) AN APPLICANT MUST BE AT LEAST 18 YEARS OLD. 1

(C) AN APPLICANT SHALL: 2

(1) COMPLETE A TRAINING PROGRAM APPROVED BY THE BOARD; AND 3

(2) PASS AN EXAMINATION APPROVED BY THE BOARD. 4

22–403. 5

AN APPLICANT FOR A LIMITED LICENSE SHALL: 6

(1) SUBMIT TO THE BOARD AN APPLICATION ON THE FORM THAT THE 7
BOARD PROVIDES; AND 8

(2) PAY TO THE BOARD AN APPLICATION FEE SET BY THE BOARD. 9

22–404. 10

(A) IF AN APPLICANT QUALI FIES FOR A LIMITED L ICENSE UNDER THIS 11
SUBTITLE, THE BOARD SHALL SEND THE APPLICANT A NOTICE THAT STATES THAT: 12

(1) THE APPLICANT HAS QUALIFIED FOR A LIMITED LICENSE; AND 13

(2) ON RECEIPT OF THE LI MITED LICENSE FEE SE T BY THE BOARD, 14
THE BOARD WILL ISSUE A LIMITED LICENSE IN THE NAME OF THE APPLICANT. 15

(B) ON PAYMENT OF THE LIM ITED LICENSE FEE, THE BOARD SHALL ISSUE 16
A LIMITED LICENSE IN THE NAME OF EACH APPLICANT WH O MEETS THE 17
REQUIREMENTS OF THIS SUBTITLE. 18

(C) THE BOARD SHALL DELIVER A LIMITED LICENSE ISSUED BY THE BOARD 19
TO THE LICENSED COMM UNITY MANAGER WHO WI LL BE SUPERVISING TH E 20
LICENSED ASSOCIATE COMMUNITY MANAGER, AT THE ADDRESS OF TH E LICENSED 21
COMMUNITY MANAGER TH AT IS INDICATED IN T HE APPLICATION FOR A LIMITED 22
LICENSE. 23

22–405. 24

WHILE IN EFFECT , A LIMITED LICENSE AUTHORIZES THE LICEN SED 25
ASSOCIATE COMMUNITY MANAGER TO PROVIDE MANAGEMEN T SERVICES FOR A 26
COMMON OWNERSHIP COMMUNITY ONLY WHILE UNDER THE GENERAL SUPERVISION 27
OF A LICENSED COMMUNITY MANAGER. 28

22–406. 29
18 HOUSE BILL 853

(A) THE TERM OF A LIMITED LICENSE IS 2 YEARS. 1

(B) AT LEAST 2 MONTHS BEFORE A LIMITED LICENSE EXPIRES, THE BOARD 2
SHALL SEND TO THE LI CENSED ASSOCIATE CO MMUNITY MANAGER, AT THE LAST 3
KNOWN ADDRESS OF THE LICENSED ASSOCIATE COMMUNITY MANAGER: 4

(1) A RENEWAL APPLICATION FORM; AND 5

(2) A NOTICE THAT STATES: 6

(I) THE DATE ON WHICH TH E CURRENT LIMITED LI CENSE 7
EXPIRES; 8

(II) THE DATE BY WHICH TH E BOARD MUST RECEIVE THE 9
RENEWAL APPLICATION FOR THE RENEWAL TO BE ISSUED AND MAILED BEFORE THE 10
LIMITED LICENSE EXPIRES; AND 11

(III) THE AMOUNT OF THE RENEWAL FEE. 12

(C) (1) THE BOARD SHALL RENEW THE LIMITED LICENSE OF AND ISSUE 13
A RENEWAL CERTIFICAT E TO EACH LICENSED ASSOCIATE C OMMUNITY MANAGER 14
WHO MEETS THE REQUIREMENTS OF THIS SECTION. 15

(2) THE BOARD SHALL INCLUDE O N EACH RENEWAL CERTI FICATE 16
THE DATE ON WHICH THE CURRENT LIMITED LICENSE EXPIRES. 17

22–407. 18

(A) THE BOARD SHALL REINSTATE THE LIMITED LICENSE OF AN 19
INDIVIDUAL WHO HAS FAILED TO RENEW THE LIMITED LICENSE IF THE INDIVIDUAL: 20

(1) APPLIES TO THE BOARD FOR REINSTATEME NT WITHIN 2 YEARS 21
AFTER THE LIMITED LICENSE EXPIRES; 22

(2) MEETS THE RENEWAL RE QUIREMENTS OF § 22–406 OF THIS 23
SUBTITLE; AND 24

(3) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE BOARD. 25

(B) (1) IF AN INDIVIDUAL HAS FAILED TO RENEW A LIMITED LICENSE AND 26
THEN APPLIES TO THE BOARD FOR REINSTATEME NT MORE THAN 2 YEARS AFTER 27
THE LIMITED LICENSE HAS EXPIRED, THE BOARD: 28

HOUSE BILL 853 19

(I) MAY REQUIRE THE INDIVIDUAL TO REAPPLY FOR A LIMITED 1
LICENSE IN THE SAME MANNER A S AN APPLICANT APPLI ES FOR AN ORIGINAL 2
LIMITED LICENSE UNDER THIS SUBTITLE; OR 3

(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , MAY 4
REINSTATE THE LIMITED LICENSE. 5

(2) THE BOARD MAY REINSTATE A LIMITED LICENSE UNDER 6
PARAGRAPH (1) OF THIS SUBSECTION ONLY IF THE INDIVIDUAL: 7

(I) MEETS THE RENEWAL REQUIREMENTS OF § 22–406 OF THIS 8
SUBTITLE; 9

(II) IF REQUIRED BY THE BOARD, STATES REASONS WHY 10
REINSTATEMENT SHOULD BE GRANTED; AND 11

(III) PAYS TO THE BOARD A REINSTATEMENT FEE SET BY THE 12
BOARD. 13

22–408. 14

(A) SUBJECT TO THE HEARING PROVISIONS OF § 22–410 OF THIS SUBTITLE, 15
THE BOARD MAY DENY A LIMI TED LICENSE TO ANY A PPLICANT, REPRIMAND ANY 16
LICENSED ASSOCIATE COMMUNITY MANAGER, OR SUSPEND OR REVOKE A LIMIT ED 17
LICENSE IF THE APPLICANT OR LICENSED ASSOCIATE COMMUNITY MANAGER: 18

(1) FRAUDULENTLY OR DECE PTIVELY OBTAINS OR A TTEMPTS TO 19
OBTAIN A LIMITED LIC ENSE FOR THE APPLICA NT OR LICENSED ASSOC IATE 20
COMMUNITY MANAGER OR FOR ANOTHER; 21

(2) FRAUDULENTLY OR DECEPTIVELY USES A LIMITED LICENSE; 22

(3) UNDER THE LAWS OF TH E UNITED STATES OR OF ANY STAT E, IS 23
CONVICTED OF: 24

(I) A FELONY; OR 25

(II) A MISDEMEANOR THAT I S DIRECTLY RELATED T O THE 26
FITNESS AND QUALIFIC ATIONS OF THE APPLIC ANT OR LICENSE D ASSOCIATE 27
COMMUNITY MANAGER TO PROVIDE MANAGEMENT SERVICES; 28

(4) ENGAGES IN CONDUCT T HAT DEMONSTRATES BAD FAITH, 29
INCOMPETENCY, OR UNTRUSTWORTHINESS OR THAT CONSTITUTES DISHONEST, 30
FRAUDULENT, OR IMPROPER DEALINGS; 31
20 HOUSE BILL 853

(5) FAILS TO HANDLE THE FUNDS OF A COMMON OWNERSHIP 1
COMMUNITY IN ACCORDANCE WITH THE PROVISIONS OF THIS TITLE; 2

(6) FAILS TO ACCOUNT IN A TIMELY MANNER FOR ALL MONEY AND 3
PROPERTY RECEIVED ON BEHALF OF A COMMON OWNERSHIP COMMUNITY; 4

(7) WILLFULLY FAILS TO D ISCLOSE TO A COMMON OWNERSHIP 5
COMMUNITY MATERIAL FA CTS THAT RELATE TO T HE PROPERTY OF THE C OMMON 6
OWNERSHIP COMMUNITY OR CONCERN MANAGEMEN T SERVICES OF WHICH THE 7
LICENSED ASSOCIATE COMMUNITY MANAGER HAS ACTUAL KNOWLEDGE; 8

(8) IS GUILTY OF GROSS N EGLIGENCE, INCOMPETENCE THAT IS 9
PROVEN TO HAVE BEEN DETRIMENTAL TO A COMMON OWNERSHIP COMMUNITY, OR 10
MISCONDUCT IN PROVIDING MANAGEMENT SERVICES; 11

(9) HAS BEEN SANCTIONED IN ANOTHER STATE IN A MATTER 12
RELATING TO PROVIDING MANAGEMENT SERVICES; 13

(10) VIOLATES ANY OTHER PROVISION OF THIS TITLE; OR 14

(11) VIOLATES ANY REGULAT ION ADOPTED BY THE BOARD UNDER 15
THIS TITLE. 16

(B) (1) INSTEAD OF OR IN ADDI TION TO REPRIMANDING THE LICENSED 17
ASSOCIATE COMMUNITY MANAGER OR SUSPENDIN G OR REVOKING A LIMI TED 18
LICENSE UNDER THIS S ECTION, THE BOARD MAY IMPOSE A PE NALTY NOT 19
EXCEEDING $5,000 FOR EACH VIOLATION. 20

(2) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 21
THIS SUBSECTION, THE BOARD SHALL CONSIDER: 22

(I) THE SERIOUSNESS OF THE VIOLATION; 23

(II) THE HARM CAUSED BY THE VIOLATION; 24

(III) THE GOOD FAITH OF THE LICENSED ASSOCIATE COMMUNITY 25
MANAGER; AND 26

(IV) ANY HISTORY OF PREVIOUS VIOLATIONS BY THE LICENSED 27
ASSOCIATE COMMUNITY MANAGER. 28

(3) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 29
SUBSECTION INTO THE GENERAL FUND OF THE STATE. 30
HOUSE BILL 853 21

(C) THE BOARD SHALL CONSIDER THE FOLLOWING FACTS IN THE 1
GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A L IMITED 2
LICENSE OR THE REPRI MAND OF A LICENSED A SSOCIATE COMMUNITY M ANAGER 3
WHEN AN APPLICANT OR A LICENSED ASSOCIATE COMMUNITY MANAGER IS 4
CONVICTED OF A FELONY OR MIS DEMEANOR DESCRIBED IN SUBSECTION (A)(3) OF 5
THIS SECTION: 6

(1) THE NATURE OF THE CRIME; 7

(2) THE RELATIONSHIP OF THE CRIME TO THE ACT IVITIES 8
AUTHORIZED BY THE LIMITED LICENSE; 9

(3) WITH RESPECT TO A FE LONY, THE RELEVANCE OF THE 10
CONVICTION TO THE FITNESS AND QUALIFICATION OF THE APPLICANT OR LICENSED 11
ASSOCIATE COMMUNITY MANAGER TO PROVIDE MANAGEMENT SERVICES; 12

(4) THE LENGTH OF TIME SINCE THE CONVICTION; AND 13

(5) THE BEHAVIOR AND ACTIVITIES OF THE APPLICANT OR LICENSED 14
ASSOCIATE COMMUNITY MANAGER BEFORE AND AFTER THE CONVICTION. 15

22–409. 16

ON ITS OWN INITIATIVE OR ON A WRITTEN COMPLAINT MADE TO THE BOARD 17
BY ANY PERSON , THE BOARD MAY COMMENCE PR OCEEDINGS UNDER § 22–410 OF 18
THIS SUBTITLE. 19

22–410. 20

(A) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 21
GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES ANY FINAL ACTION UNDER § 22
22–408 OF THIS SUBTITLE , THE BOARD SHALL GIVE THE INDIVIDUAL AGAINST 23
WHOM THE ACTION IS C ONTEMPLATED AN OPPORTUNITY FOR A HEARING BEFORE 24
THE BOARD. 25

(B) THE BOARD SHALL GIVE NOTICE AND HOLD THE HEARING IN 26
ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 27

(C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH ANY 28
PROCEEDING UNDER THIS SECTION. 29

22 HOUSE BILL 853

(D) (1) THE BOARD MAY ISSUE A SUBPOENA FOR THE ATTENDANCE OF A 1
WITNESS TO TESTIFY OR THE PRODUCTION OF EVIDENCE IN CONNECTION WITH ANY 2
PROCEEDING UNDER THIS SECTION. 3

(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOENA ISSUED UNDER 4
THIS SUBSECTION, ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 5
COMPLIANCE WITH THE SUBPOENA. 6

(E) IF, AFTER DUE NOTICE, THE INDIVIDUAL AGAINST WHOM THE ACTION IS 7
CONTEMPLATED FAILS O R REFUSES TO APPEAR , THE BOARD MAY HEAR AND 8
DETERMINE THE MATTER. 9

22–411. 10

ANY PERSON AGGRIEVED BY A FINAL DECISION OF THE BOARD IN A 11
CONTESTED CASE, AS DEFINED IN § 10–202 OF THE STATE GOVERNMENT ARTICLE, 12
IS ENTITLED TO JUDICIAL REVIEW AS PROVIDED IN §§ 10–222 AND 10–223 OF THE 13
STATE GOVERNMENT ARTICLE. 14

22–412. 15

THE BOARD MAY REINSTATE , IN ACCORDANCE WITH T HE PROCEDURES OF 16
THE BOARD: 17

(1) A LIMITED LICENSE THAT HAS BEEN REVOKED; OR 18

(2) BEFORE FULFILLMENT OF THE CONDITIONS OF THE SUSPENSION, 19
ANY LIMITED LICENSE THAT HAS BEEN SUSPENDED. 20

SUBTITLE 5. REGISTRATION OF COMMON OWNERSHIP COMMUNITIES. 21

22–501. 22

(A) ON OR BEFORE JANUARY 1 EACH YEAR , A COMMON OWNERSHIP 23
COMMUNITY SHALL REGISTER WITH THE BOARD. 24

(B) IF A COMMON OWNERSHIP COMMUNITY CONTRACTS FOR MANAGEMENT 25
SERVICES, THE RESPONSIBLE MANA GER SHALL BE RESPONS IBLE FOR THE 26
REGISTRATION OF THE COMMON OWNERSHIP COMMUNITY. 27

22–502. 28

EACH COMMON OWNERSHIP COMMUNITY SHALL PROV IDE THE BOARD THE 29
FOLLOWING INFORMATION: 30
HOUSE BILL 853 23

(1) THE NAME AND ADDRESS OF THE COMMON OWNERS HIP 1
COMMUNITY; 2

(2) THE COUNTY IN WHICH THE COMMON OWNERSHIP COMMUNITY IS 3
LOCATED; 4

(3) THE NAME AND CONTACT INFORMATION OF EACH OFFICER AND 5
MEMBER OF THE BOARD OF DIRECTORS OR GOVE RNING BODY OF THE CO MMON 6
OWNERSHIP COMMUNITY; 7

(4) THE NAME AND ADDRESS OF THE LICENSED COMM UNITY 8
MANAGER, IF ANY, FOR THE COMMON OWNERSHIP COMMUNITY; AND 9

(5) ANY OTHER INFORMATION REQUIRED BY THE BOARD. 10

SUBTITLE 6. MISCELLANEOUS PROVISIONS. 11

22–601. 12

(A) IN THIS SECTION , “CONTRACTING PARTY ” MEANS A LICENSED 13
COMMUNITY MANAGER OR A PERSON UNDER THE D IRECTION OF A LICENS ED 14
COMMUNITY MANAGER THAT CONTRACTS TO PROVIDE MANAGEMENT SERVICES FOR 15
A COMMON OWNERSHIP COMMUNITY. 16

(B) A CONTRACTING PARTY SHALL FILE WITH THE SECRETARY PROOF AS 17
REQUIRED BY THE BOARD OF A FIDELITY B OND OR THEFT INSURAN CE, OR OTHER 18
COMPARABLE WRITTEN INSURANCE AS REQUIRED BY THE BOARD, THAT COVERS: 19

(1) ANY PERSON THAT PR OVIDES MANAGEMENT SE RVICES FOR A 20
COMMON OWNERSHIP COMMUNITY UNDER THE TERMS OF A CONTRACT; AND 21

(2) ANY INDIVIDUAL WORKING UNDER THE DIRECTION OF A PERSON 22
DESCRIBED IN ITEM (1) OF THIS SUBSECTION. 23

(C) (1) A FIDELITY BOND OR INS URANCE FOR WHICH PRO OF IS FILED 24
UNDER THIS SECTION S HALL PROVIDE COVERAG E IN AN AMOUNT EQUAL TO THE 25
LESSER OF: 26

(I) $2,000,000; OR 27

(II) THE HIGHEST AGGREGAT E AMOUNT OF THE OPER ATING 28
AND RESERVE BALANCES OF ALL COMMON OWNERS HIP COMMUNITIES UNDE R 29
CONTRACT WITH THE CONTRACTING PARTY IN THE PRIOR 3 MONTHS. 30
24 HOUSE BILL 853

(2) THE TOTAL LIABILITY O F THE INSURANCE TO A LL INSURED 1
PERSONS UNDER A FIDE LITY BOND OR INSURAN CE MAY NOT EXCEED TH E SUM OF 2
THE FIDELITY BOND OR INSURANCE. 3

(3) THE SECRETARY, OR THE SECRETARY’S DESIGNEE , SHALL BE 4
NAMED AS A CERTIFICATE HOL DER FOR ANY FIDELITY BOND OR INSURANCE 5
REQUIRED UNDER THIS SECTION. 6

(D) IF THE FIDELITY BOND OR INSURANCE IS CANC ELED, FORFEITED, OR 7
TERMINATED, THE CONTRACTING PART Y IMMEDIATELY SHALL NO TIFY THE 8
SECRETARY. 9

(E) IF THE FIDELITY BOND OR INSURANCE IS CANC ELED, FORFEITED, OR 10
TERMINATED, OR THE CONTRACTING PARTY FAILS TO NOTIFY THE SECRETARY OF 11
ANY CHANGE TO THE FIDELITY BOND OR INSURANCE, THE SECRETARY: 12

(1) SHALL SUSPEND ANY LI CENSE OF ANY INDIVID UAL PROVIDING 13
MANAGEMENT SERVICES COVERED BY THE FIDELITY BOND OR INSURANCE; AND 14

(2) MAY NOT REINSTATE A LICENSE UNTIL PROOF OF COMPLIANCE 15
WITH THIS SECTION IS PROVIDED TO THE SECRETARY. 16

22–602. 17

(A) A LICENSED COMMUNITY M ANAGER SHALL DEPOSIT ALL MO NEY 18
RECEIVED IN CONNECTI ON WITH THE PROVISION OF MANAGEM ENT SERVICES IN 19
ONE OR MORE OF THE F INANCIAL INSTITUTION ACCOUNTS OF A COMMON 20
OWNERSHIP COMMUNITY. 21

(B) A LICENSED COMMUNITY M ANAGER WHO PROVIDES MANAGEM ENT 22
SERVICES FOR MORE TH AN ONE COMMON OWNERS HIP COMMUNITY SHALL 23
MAINTAIN SEPARATE FINANCIAL INSTITUTIO N ACCOUNTS FOR EACH COMMON 24
OWNERSHIP COMMUNITY. 25

(C) THE FUNDS IN EACH FIN ANCIAL INSTITUTION ACCOUNT OF A COMMON 26
OWNERSHIP COMMUNITY MAY NOT BE COMMINGLE D WITH THE FUNDS OF THE 27
LICENSED COMMUNITY MANAGER OR ANOTHER COMMON OWNERSHIP COMMUNITY. 28

(D) THE MAINTENANCE OF FI NANCIAL INSTITUTION ACCOUNTS BY A 29
LICENSED COMMUNITY M ANAGER SHALL BE CUSTODIAL A ND PROVIDED IN THE 30
NAME OF THE COMMON OWNERSHIP COMMUNITY. 31

HOUSE BILL 853 25

(E) THE RECORDS OF EACH FINANCIAL INSTITUTIO N ACCOUNT OF A 1
COMMON OWNERSHIP COMMUNITY SHALL BE ACCESSIBLE FOR REVIEW DIRECTLY 2
FROM THE FINANCIAL I NSTITUTION TO THE GO VERNING BODY OF THE COMMON 3
OWNERSHIP COMMUNITY. 4

(F) A LICENSED COMMUNITY M ANAGER WHO WILLFULLY VIOLAT ES ANY 5
PROVISION OF THIS SECTION IS GUILTY OF A MISDEMEANOR AND ON CONVICTION IS 6
SUBJECT TO A FINE NOT EXCEEDING $25,000 OR IMPRISONMENT NOT EXCEEDING 5 7
YEARS OR BOTH. 8

22–603. 9

IF A COMMON OWNERSHIP COMMUNITY CONTRACTS WITH A PERSON OTHER 10
THAN A LICENSED COMM UNITY MANAGER TO PRO VIDE MANAGEMENT SERV ICES, 11
THE CONTRACT SH ALL REQUIRE THAT ONL Y A LICENSED COMMUNI TY MANAGER 12
PROVIDE THE MANAGEMENT SERVICES FOR THE COMMON OWNERSHIP COMMUNITY. 13

SUBTITLE 7. PROHIBITED ACTS; PENALTIES. 14

22–701. 15

EXCEPT AS OTHERWISE P ROVIDED IN THIS TITL E, AN INDIVIDUAL MAY NO T 16
PROVIDE, ATTEMPT TO PROVIDE, OR OFFER TO PROVIDE MANAGEMENT SERVICES 17
FOR A COMMON OWNERSHIP COMMUNITY IN THE STATE UNLESS ISSUED A LICENSE 18
OR A LIMITED LICENSE BY THE BOARD. 19

22–702. 20

UNLESS AUTHORIZED UND ER THIS TITLE TO PRO VIDE MANAGEMENT 21
SERVICES TO A COMMON OWNERSHIP COMMUNITY, A PERSON MAY NOT REPRESENT 22
TO THE PUBLIC BY USE OF A TITLE, INCLUDING “LICENSED COMMUNITY MANAGER”, 23
“LICENSED ASSOCIATE C OMMUNITY MANAGER ”, OR “COMMON OWNERSHIP 24
COMMUNITY MANAGEMENT”, BY USE OF AN ABBREVIATION , BY DESCRIPTION OF 25
SERVICES, METHODS, OR PROCEDURES , OR OTHERWISE THAT TH E PERSON IS 26
AUTHORIZED TO PROVID E MANAGEMENT SERVICE S FOR A COMMON OWNERSHIP 27
COMMUNITY IN THE STATE. 28

22–703. 29

AN INDIVIDUAL MAY NOT: 30

(1) USE OR ATTEMPT TO US E THE LICENSE OR LIM ITED LICENSE OF 31
ANOTHER INDIVIDUAL; OR 32

26 HOUSE BILL 853

(2) IMPERSONATE ANOTHER INDIVIDUAL WHO HOLDS A LICENSE OR 1
A LIMITED LICENSE. 2

22–704. 3

AN INDIVIDUAL MAY NOT GIVE FALSE INFORMATI ON TO THE BOARD IN AN 4
ATTEMPT TO OBTAIN A LICENSE OR A LIMITED LICENSE. 5

22–705. 6

AN INDIVIDUAL WHOSE LICENSE OR LIMITED LICENSE HAS BEEN SUSPENDED 7
OR REVOKED UNDER THIS TITLE MAY NOT PROVIDE MANAGEMENT SERVICES FOR A 8
COMMON OWNERSHIP COMMUNITY IN ANY MANNER AS: 9

(1) AN ASSOCIATE , AN AGENT , AN EMPLOYEE , OR ANY OTHER 10
SUBORDINATE OF A LICENSED COMMUNITY MANAGER; OR 11

(2) A PRINCIPAL, AN ASSOCIATE, AN AGENT, AN EMPLOYEE, OR ANY 12
OTHER SUBORDINATE OF A CORPORATION, PARTNERSHIP, OR LIMITED LIABILITY 13
COMPANY THAT PROVIDES MANAGEMENT SERVICES. 14

22–706. 15

(A) AN INDIVIDUAL WHO VIO LATES ANY PROVISION OF THIS TITLE IS 16
GUILTY OF A M ISDEMEANOR AND ON CO NVICTION IS SUBJECT TO A FINE NOT 17
EXCEEDING $5,000 OR IMPRISONMENT NOT EXCEEDING 3 YEARS OR BOTH. 18

(B) (1) THE BOARD MAY IMPOSE ON A PERSON THAT VIOLATES ANY 19
PROVISION OF THIS TITLE A PENALTY NOT EXCEEDING $5,000 FOR EACH VIOLATION. 20

(2) IN SETTING THE AMOUNT OF THE PENALTY , THE BOARD SHALL 21
CONSIDER: 22

(I) THE SERIOUSNESS OF THE VIOLATION; 23

(II) THE HARM CAUSED BY THE VIOLATION; 24

(III) THE GOOD FAITH OF THE VIOLATOR; 25

(IV) ANY HISTORY OF PREVIOUS VIOLATIONS BY THE VIOLATOR; 26
AND 27

(V) ANY OTHER RELEVANT FACTORS. 28

HOUSE BILL 853 27

(C) THE BOARD SHALL PAY ANY P ENALTY COLLECTED UND ER THIS 1
SECTION INTO THE GENERAL FUND OF THE STATE. 2

SUBTITLE 8. SHORT TITLE; TERMINATION OF TITLE. 3

22–801. 4

THIS TITLE MAY BE CIT ED AS THE MARYLAND COMMON OWNERSHIP 5
COMMUNITY MANAGERS ACT. 6

22–802. 7

SUBJECT TO THE EVALUA TION AND REESTABLISHMENT PROVISIONS OF T HE 8
MARYLAND PROGRAM EVALUATION ACT, THIS TITLE AND ALL REGULATIONS 9
ADOPTED UNDER THIS TITLE SHALL TERMINATE AND BE OF NO EFFECT AFTER JULY 10
1, 2032. 11

Article – Business Regulation 12

2–106.17. 13

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15

(2) “BOARD” MEANS THE STATE BOARD OF COMMON OWNERSHIP 16
COMMUNITY MANAGERS. 17

(3) “FUND” MEANS THE STATE BOARD OF COMMON OWNERSHIP 18
COMMUNITY MANAGERS FUND. 19

(B) THERE IS A STATE BOARD OF COMMON OWNERSHIP COMMUNITY 20
MANAGERS FUND IN THE DEPARTMENT. 21

(C) THE PURPOSE OF THE FUND IS TO COVER THE ACTUAL DOCUMENTED 22
DIRECT AND INDIRECT COSTS OF FULFILLING THE STATUTORY AND RE GULATORY 23
DUTIES OF THE BOARD. 24

(D) THE SECRETARY OR THE SECRETARY’S DESIGNEE SHALL ADM INISTER 25
THE FUND. 26

(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 27
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 28

(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY, 29
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 30
28 HOUSE BILL 853

(F) THE FUND CONSISTS OF: 1

(1) FEES COLLECTED BY TH E BOARD AND DISTRIBUTED TO THE 2
FUND UNDER § 22–207 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 3
ARTICLE; 4

(2) INTEREST EARNINGS OF THE FUND; 5

(3) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; AND 6

(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 7
THE BENEFIT OF THE FUND. 8

(G) THE FUND MAY BE USED ONLY TO COVER THE ACTUAL DOCUMENTED 9
DIRECT AND INDIRECT COSTS OF FULFILLING THE STATUTORY AND REGULA TORY 10
DUTIES OF THE BOARD. 11

(H) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 12
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 13

(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 14
THE FUND. 15

(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 16
WITH THE STATE BUDGET. 17

(J) THE LEGISLATIVE AUDITOR SHALL AUDIT T HE ACCOUNTS AND 18
TRANSACTIONS OF THE FUND, AS PROVIDED IN § 2–1220 OF THE STATE 19
GOVERNMENT ARTICLE. 20

2–106.18. 21

(A) IN THIS SECTION , “BOARD” MEANS THE STATE BOARD OF COMMON 22
OWNERSHIP COMMUNITY MANAGERS. 23

(B) IN CONSULTATION WITH THE BOARD, THE SECRETARY SHALL 24
CALCULATE ANNUALLY THE DIRECT AND INDIRE CT COSTS ATTRIBUTABLE TO THE 25
BOARD. 26

(C) THE BOARD SHALL ESTABLISH FEES BASED ON THE CALCULATIONS 27
PROVIDED BY THE SECRETARY UNDER THIS SECTION. 28

HOUSE BILL 853 29

(D) EACH FEE ESTABLISHED BY THE BOARD MAY NOT BE INCR EASED 1
ANNUALLY BY MORE THA N 12.5% OF THE EXISTING AND CORRESPONDING FEE OF 2
THE BOARD. 3

2–108. 4

(a) The following units are in the Department: 5

(34) THE STATE BOARD OF COMMON OWNERSHIP COMMUNITY 6
MANAGERS. 7

Article – Corporations and Associations 8

5–6B–12.1. 9

A COOPERATIVE HOUSING CORPORATION SHALL REGISTER ANNUALLY WITH 10
THE STATE BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS IN THE 11
MARYLAND DEPARTMENT OF LABOR AS REQUIRED UND ER TITLE 22, SUBTITLE 5 12
OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 13

Article – Real Property 14

11–130.1. 15

A CONDOMINIUM THAT IS USED FOR RESIDENTIAL PURPOSES SHALL 16
REGISTER ANNUALLY WI TH THE STATE BOARD OF COMMON OWNERSHIP 17
COMMUNITY MANAGERS IN THE MARYLAND DEPARTMENT OF LABOR AS REQUIRED 18
UNDER TITLE 22, SUBTITLE 5 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 19
ARTICLE. 20

11B–115.2. 21

A HOMEOWNERS ASSOCIATION SHALL REGISTER ANNUALLY WITH THE STATE 22
BOARD OF COMMON OWNERSHIP COMMUNITY MANAGERS IN THE MARYLAND 23
DEPARTMENT OF LABOR AS REQUIRED UND ER TITLE 22, SUBTITLE 5 OF THE 24
BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 25

Article – State Finance and Procurement 26

6–226. 27

(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 28

(ii) Notwithstanding any other provision of law, and unless 29
inconsistent with a federal law, grant agreement, or other federal requirement or with the 30
30 HOUSE BILL 853

terms of a gift or settlement agreement, net interest on all State mo ney allocated by the 1
State Treasurer under this section to special funds or accounts, and otherwise entitled to 2
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 3
Fund of the State. 4

(iii) The provisions of subpa ragraph (ii) of this paragraph do not 5
apply to the following funds: 6

212. the Department of Social and Economic Mobility Special 7
Fund; [and] 8

213. the Population Health Improvement Fund; AND 9

214. THE STATE BOARD OF COMMON OWNERSHIP 10
COMMUNITY MANAGERS FUND. 11

Article – State Government 12

8–403. 13

This subtitle applies only to the following governmental activities and units: 14

(13) COMMON OWNERSHIP COMMUNITY MANAGERS, STATE BOARD 15
OF (§ 22–201 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE); 16

SECTION 3. AND BE IT FURTHER ENACTED, That the terms of the initial 17
members of the State Board of Common Ownership Community Managers shall expire as 18
follows: 19

(1) three members in 2030; 20

(2) three members in 2031; and 21

(3) three members in 2032. 22

SECTION 4. AND BE IT FURTHER ENACTED, That the State Board of Common 23
Ownership Community Managers, when adopting regulations concerning the training and 24
examination requirements for an applicant for a license or a limited license under this Act, 25
may take into consideration the following training and examination standards: 26

(1) for a limited license: 27

(i) courses that include topics such as: 28

1. the responsibilities of managers and members of 29
community governing bodies; 30
HOUSE BILL 853 31

2. management ethics; 1

3. community rules; 2

4. community meetings and other communications; 3

5. assessments collections; 4

6. financial management; 5

7. risk management; 6

8. facilities management; and 7

9. personnel management; and 8

(ii) examinations that may be in a classroom or online; and 9

(2) for a license: 10

(i) courses that include topics such as: 11

1. high–rise maintenance and management; 12

2. advanced insurance and risk management; 13

3. management of large–scale communities; 14

4. legal considerations in community management; and 15

5. contemporary issues in community management; and 16

(ii) examinations that include a case study of an existing common 17
ownership community. 18

SECTION 5. AND BE IT FURTHER ENACTED, That: 19

(a) Until the time that the State Board of Common Ownership Community 20
Managers adopts regulations concerning the training and examination requirements for an 21
applicant for a license or a limited license under this Act, passing an examination that 22
meets the requirements listed in subsection (b) of this section shall be deemed adequate for 23
satisfying the requirements of § 22–302(c) or § 22–402(c) of the Business Occupations and 24
Professions Article, as enacted by Section 2 of this Act. 25

(b) The examination specified under subsection (a) of this section shall be: 26

32 HOUSE BILL 853

(1) a nationally prepared and administered standardized examination for 1
the community association management profession; and 2

(2) developed according to the basic principles of professional testing 3
standards that utilize psychometric measurement. 4

SECTION 6. AND BE IT FURTHER ENACTED, That the State Board of Common 5
Ownership Community Managers shall grant a waiver of the training and examination 6
requirements for a license issued under § 22 –304 or a limited license issued under § 7
22–404 of the Business Occupations and Professions Article, as enacted by Section 2 of this 8
Act, to any applicant who presents to the Board not later than October 1, 2029, satisfactory 9
evidence that the applicant provided management services in the State for the 2 years 10
immediately before the date of application. 11

SECTION 7. AND BE IT FURTHER ENACTED, That, on or before December 1, 12
2027, the Maryland Department of Labor shall report to the General Assembly, in 13
accordance with § 2 –1257 of the State Government Article, on the imposition of a 14
registration fee on common ownership communities, including the necessity for and amount 15
of a registration fee on common ownership communities in relation to the license fees and 16
limited license fees required under this Act and the size of a common ownership community 17
to which a registration fee would apply. 18

SECTION 8. AND BE IT FURTHER ENACTED, That the Department of Budget 19
and Management, by budget amendment, may advance sufficient funds to the State Board 20
of Common Ownership Community Managers to allow the Board to commence operations 21
on October 1, 2027, so that the functions of issuing licenses and limited licenses and 22
registering common ownership communities can be in place before October 1, 2028. The 23
Board shall reimburse any funds that have been advanced after the license fees and limited 24
license fees have been received and deposited into the State Board of Common Ownership 25
Community Managers Fund. 26

SECTION 9. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
October 1, 2026. 28