Bill > HB853

This bill establishes the State Board of Common Ownership Community Managers within the Maryland Department of Labor to regulate individuals who provide management services for common ownership communities, which include condominiums, cooperative housing corporations, and homeowners associations. The bill requires individuals to obtain a license or a limited license from this Board before providing such management services, defining "provide management services" broadly to encompass acting on behalf of the community in business, legal, and financial matters, enforcing community rights, negotiating contracts, handling community funds, preparing financial reports, and organizing meetings. While licensing is generally required, certain individuals are exempt, such as regular employees performing administrative tasks, volunteers, attorneys, licensed real estate professionals, receivers in bankruptcy, and employees of a common ownership community providing services only to that community or an affiliated one. The bill outlines the composition and duties of the Board, including adopting regulations, establishing professional conduct rules, and setting criteria for training and continuing education. It also details the requirements for obtaining a full license (requiring prior experience as a licensed associate community manager or a professional designation) and a limited license (for associate managers who work under the supervision of a licensed manager), along with provisions for license renewal, reinstatement, reciprocity, and disciplinary actions, including fines and license suspension or revocation for violations such as fraud, conviction of certain crimes, or mishandling community funds. The bill also mandates annual registration for common ownership communities and requires contracting parties to maintain fidelity bonds or theft insurance, with specific coverage amounts and notification requirements to the Secretary of Labor. Furthermore, it establishes a dedicated fund for the Board's operations, financed by collected fees, and sets forth penalties for violations, including misdemeanors punishable by fines and imprisonment. The bill also includes provisions for initial board member terms, allows for waivers of training and examination requirements for those with prior experience, and mandates a report on registration fees for common ownership communities.

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https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0853?ys=2026RS