SB 981

SENATE BILL 981
     N1, I3, P1  6lr3642
     SB 866/25 – JPR  CF HB 402
     By: Senator Muse
     Introduced and read first time: February 15, 2026
     Assigned to: Rules
  A BILL ENTITLED
1 AN ACT concerning
2   Common Ownership Communities – Ombudsman Unit, Governing Document
3Database, and Local Commissions
4 FOR the purpose of establishing the Common Ownership Community Ombudsman Unit in
5      the Division of Consumer Protection in the Office of the Attorney General to receive
6      and respond to certain complaints; requiring common ownership communities to file
7      certain documents with the Department of Housing and Community Development;
8      requiring the Department to establish a certain database; establishing requirements
9      for a local common ownership commission established by the local government of a
10      county; and generally relating to common ownership communities.
11 BY adding to
12      Article – Commercial Law
13      Section 13–207
14      Annotated Code of Maryland
15      (2025 Replacement Volume)
16 BY adding to
17      Article – Housing and Community Development
18      Section 2–304
19      Annotated Code of Maryland
20      (2019 Replacement Volume and 2025 Supplement)
21 BY adding to
22      Article – Real Property
23      Section 11C–101 through 11C–114 to be under the new title “Title 11C. Local
24Commissions on Common Ownership Communities”
25      Annotated Code of Maryland
26      (2023 Replacement Volume and 2025 Supplement)
     EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
  [Brackets] indicate matter deleted from existing law.
  *sb0981*
2SENATE BILL 981
1SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
2 That the Laws of Maryland read as follows:
3Article – Commercial Law
4 13–207.
5      (A)     (1)   IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
6 INDICATED.
7(2)   “COMMON OWNERSHIP COMMUNITY” MEANS:
8(I)  A COOPERATIVE HOUSING CORPORATION AS DEFINED IN §
9 5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE;
10(II) A CONDOMINIUM AS DEFINED IN § 11–101 OF THE REAL
11 PROPERTY ARTICLE; OR
12(III) A HOMEOWNERS ASSOCIATION AS DEFINED IN § 11B–101 OF
13 THE REAL PROPERTY ARTICLE.
14(3)   “GOVERNING BODY” MEANS:
15(I)    THE COUNCIL OF UNIT OWNERS OF A CONDOMINIUM;
16(II)   THE BOARD OF DIRECTORS OF A COOPERATIVE HOUSING
17 CORPORATION;
18(III) A HOMEOWNERS ASSOCIATION, BOARD OF DIRECTORS, OR
19 ANY OTHER ENTITY ESTABLISHED TO GOVERN A PROPERTY SUBJECT TO AN
20 INSTRUMENT THAT IMPOSES ON LOTS, OR ON THE OWNERS OR OCCUPANTS OF LOTS,
21 ANY MANDATORY FEE IN CONNECTION WITH THE PROVISION OF SERVICES OR
22 OTHERWISE FOR THE BENEFIT OF SOME OR ALL OF THE LOTS; OR
23(IV)
  ANY OTHER BODY AUTHORIZED TO ADOPT RULES OR
24 REGULATIONS   GOVERNING  A    CONDOMINIUM, COOPERATIVE HOUSING
25 CORPORATION, OR HOMEOWNERS ASSOCIATION.
26(4)
  “LOCAL COMMISSION” MEANS A COMMISSION ON COMMON
27 OWNERSHIP COMMUNITIES ESTABLISHED BY A COUNTY, IN ACCORDANCE WITH §
28 11C–101 OF THE REAL PROPERTY ARTICLE.
29(5)   “MEMBER” MEANS:
  SENATE BILL 981  3
1(I)       AN OCCUPANT OR A UNIT OWNER UNDER THE MARYLAND
2 CONDOMINIUM ACT;
3(II) A LOT OWNER UNDER THE MARYLAND HOMEOWNERS
4 ASSOCIATION ACT; OR
5(III) A MEMBER OF A COOPERATIVE HOUSING CORPORATION AS
6 DEFINED IN § 5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE.
7(6) “UNIT” MEANS THE COMMON OWNERSHIP  COMMUNITY
8 OMBUDSMAN UNIT IN THE OFFICE OF THE ATTORNEY GENERAL.
9      (B) THERE IS A COMMON OWNERSHIP COMMUNITY OMBUDSMAN UNIT IN
10 THE DIVISION OF CONSUMER PROTECTION.
11(C)   THE PURPOSE OF THE UNIT IS:
12(1)
  TO MONITOR CHANGES IN FEDERAL AND STATE LAWS RELATING
13 TO COMMON OWNERSHIP COMMUNITIES;
14(2)
  TO PUBLISH INFORMATION CONCERNING COMMON OWNERSHIP
15 COMMUNITIES ON THE WEBSITE OF THE OFFICE OF THE ATTORNEY GENERAL;
16(3)   TO
  ASSIST MEMBERS IN UNDERSTANDING RIGHTS AND
17 PROCESSES AVAILABLE TO MEMBERS UNDER LAWS AND REGULATIONS GOVERNING
18 COMMON OWNERSHIP COMMUNITIES; AND
19(4) ON REQUEST, TO PROVIDE REFERRALS TO PUBLIC AND PRIVATE
20 ALTERNATIVE DISPUTE RESOLUTION SERVICES, WITH A GOAL OF REDUCING AND
21 RESOLVING CONFLICTS AMONG GOVERNING BODIES AND MEMBERS.
22(D)   THE UNIT SHALL INCLUDE:
23(1)   A FULL–TIME COMMON OWNERSHIP COMMUNITY OMBUDSMAN;
24 AND
25(2)   STAFF AS PROVIDED IN THE STATE BUDGET.
26     (E) (1) THE ATTORNEY GENERAL SHALL APPOINT THE COMMON
27 OWNERSHIP COMMUNITY OMBUDSMAN.
28(2)
  THE COMMON OWNERSHIP COMMUNITY OMBUDSMAN MUST BE A
29 MEMBER OF THE MARYLAND BAR.
4SENATE BILL 981
1     (F)   THE UNIT SHALL RECEIVE AND RESPOND TO COMPLAINTS BY MEMBERS
2 REGARDING FINAL ADVERSE DECISIONS BY A GOVERNING BODY OR COMMON
3 OWNERSHIP COMMUNITY MANAGER.
4     (G) IN RESPONSE TO A COMPLAINT, OR ON THE INITIATIVE OF THE
5 OMBUDSMAN, THE UNIT SHALL:
6(1)   REFER THE COMPLAINT TO AN APPROPRIATE LOCAL COMMISSION
7 FOR FURTHER REVIEW OF WHETHER THE FINAL ADVERSE DECISION CONFLICTS
8 WITH LAWS OR REGULATIONS GOVERNING COMMON OWNERSHIP COMMUNITIES IN
9 THE JURISDICTION; OR
10(2)   MAKE A DETERMINATION OF WHETHER THE FINAL ADVERSE
11 DECISION CONFLICTS WITH LAWS OR REGULATIONS GOVERNING COMMON
12 OWNERSHIP COMMUNITIES AND PROMPTLY NOTIFY THE COMPLAINANT OF THE
13 DETERMINATION.
14     (H)   (1)   IF THE UNIT DETERMINES THAT A FINAL ADVERSE DECISION
15 CONFLICTS WITH LAWS OR REGULATIONS GOVERNING COMMON OWNERSHIP
16 COMMUNITIES, THE UNIT SHALL PROMPTLY NOTIFY THE MEMBER, THE GOVERNING
17 BOARD, AND, IF APPLICABLE, THE COMMON OWNERSHIP COMMUNITY MANAGER
18 THAT THE ADVERSE DECISION CONFLICTS WITH LAWS OR REGULATIONS
19 GOVERNING COMMON OWNERSHIP COMMUNITIES.
20(2)   IF WITHIN 1 YEAR AFTER ISSUING A DETERMINATION THE
21 OMBUDSMAN RECEIVES A SUBSEQUENT COMPLAINT OF A FINAL ADVERSE DECISION
22 FOR THE SAME VIOLATION, THE UNIT SHALL REFER THE MATTER TO THE
23 APPROPRIATE LOCAL COMMISSION.
24     (I)   (1) ON OR BEFORE DECEMBER 1, 2028, AND EACH DECEMBER 1
25 THEREAFTER, THE UNIT SHALL REPORT TO THE DEPARTMENT OF HOUSING AND
26 COMMUNITY DEVELOPMENT AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE
27 GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON THE ACTIVITIES OF THE
28 UNIT DURING THE REPORTING PERIOD.
29(2)  THE REPORT REQUIRED UNDER PARAGRAPH (1) OF THIS
30 SUBSECTION SHALL INCLUDE:
31(I)    THE NUMBER OF COMPLAINTS RECEIVED BY THE UNIT;
32(II)   THE TYPES OF ASSISTANCE REQUESTED;
  SENATE BILL 981  5
1(III) ACTIONS TAKEN BY THE UNIT;
2(IV)   THE   NUMBER     OF   REFERRALS    MADE   TO   LOCAL
3 COMMISSIONS; AND
4(V)    DATA ON DISPOSITIONS AND OUTCOMES OF COMPLAINTS
5 RECEIVED.
6Article – Housing and Community Development
7 2–304.
8(A)   (1)   IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
9 INDICATED.
10(2) “COMMON OWNERSHIP COMMUNITY” HAS THE MEANING STATED
11 IN § 2–303 OF THIS SUBTITLE.
12(3) “GOVERNING DOCUMENTS” MEANS AN OFFERING STATEMENT, A
13 DECLARATION, BYLAWS, RULES, REGULATIONS, A PROPRIETARY LEASE, OR ANY
14 OTHER SIMILAR DOCUMENT OF A COMMON OWNERSHIP COMMUNITY.
15(B)   (1)A COMMON OWNERSHIP COMMUNITY LOCATED IN THE STATE
16 SHALL FILE WITH THE DEPARTMENT A COPY OF THE GOVERNING DOCUMENTS, AND
17 ANY AMENDMENTS TO THE GOVERNING DOCUMENTS, OF THE COMMON OWNERSHIP
18 COMMUNITY.
19(2)
  A COMMON OWNERSHIP COMMUNITY THAT FAILS TO MAKE A
20 FILING REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION IS SUBJECT TO A
21 FINE OF $500.
22(C)   (1)THE DEPARTMENT SHALL DEVELOP AND MAINTAIN A DATABASE
23 OF GOVERNING DOCUMENTS FILED WITH THE DEPARTMENT UNDER SUBSECTION
24 (B) OF THIS SECTION ACCESSIBLE TO THE PUBLIC THROUGH THE DEPARTMENT’S
25 WEBSITE DESCRIBED IN § 2–303 OF THIS SUBTITLE.
26(2)
  THE DEPARTMENT MAY CHARGE THE FOLLOWING FEES FOR
27 FILINGS REQUIRED UNDER THIS SECTION:
28(I)    FOR AN INITIAL FILING, UP TO $100; AND
29(II)   FOR ANY AMENDMENT TO A GOVERNING DOCUMENT, UP TO
30 $25.
6SENATE BILL 981
1Article – Real Property
2     TITLE 11C. LOCAL COMMISSIONS ON COMMON OWNERSHIP COMMUNITIES.
3 11C–101.
4      (A)     IN THIS TITLE THE FOLLOWING WORDS HAVE THE MEANINGS
5 INDICATED.
6      (B)     “COMMON ELEMENT” MEANS:
7(1)
  ANY PORTION OF A COMMON OWNERSHIP COMMUNITY OTHER
8 THAN THE UNITS OF A CONDOMINIUM OR COOPERATIVE; AND
9(2)      PROPERTY THAT IS OWNED OR LEASED BY A HOMEOWNERS
10 ASSOCIATION.
11      (C)     (1)   “COMMON OWNERSHIP COMMUNITY” MEANS:
12(I)
  A CONDOMINIUM AS DEFINED IN § 11–101 OF THIS ARTICLE
13 THAT IS USED FOR RESIDENTIAL PURPOSES;
14(II) A COOPERATIVE HOUSING CORPORATION AS DEFINED IN §
15 5–6B–01 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE; AND
16(III) A HOMEOWNERS ASSOCIATION AS DEFINED IN § 11B–101 OF
17 THIS ARTICLE.
18(2)
  “COMMON OWNERSHIP COMMUNITY” DOES NOT INCLUDE A
19 TIME–SHARE PROJECT AS DEFINED IN § 11A–101 OF THIS ARTICLE.
20      (D)     (1)“DISPUTE” MEANS A DISAGREEMENT BETWEEN AT LEAST TWO
21 PARTIES THAT INVOLVES:
22(I)
  THE AUTHORITY OF A GOVERNING BODY OF A COMMON
23 OWNERSHIP COMMUNITY TO:
241.   REQUIRE OR PROHIBIT ANY ACTION INVOLVING A
25 UNIT OR COMMON ELEMENT;
262.   REQUIRE ANY PERSON TO PAY A FEE, A FINE, OR AN
27 ASSESSMENT;
  SENATE BILL 981  7
13.   SPEND COMMON OWNERSHIP COMMUNITY FUNDS; OR
24.   ALTER OR ADD TO A COMMON ELEMENT; OR
3(II)
  THE FAILURE OF A GOVERNING BODY OF A COMMON
4 OWNERSHIP COMMUNITY TO:
51.   PROPERLY CONDUCT AN ELECTION;
62.   GIVE ADEQUATE NOTICE OF A MEETING OR ANY
7 OTHER ACTION;
83.   PROPERLY CONDUCT A MEETING;
94.   PROPERLY ADOPT A BUDGET OR RULES;
105.   MAINTAIN OR AUDIT BOOKS AND RECORDS;
116.   ALLOW INSPECTION OF BOOKS AND RECORDS;
127.
  MAINTAIN OR REPAIR A COMMON ELEMENT IF THE
13 FAILURE RESULTS IN SIGNIFICANT PERSONAL INJURY OR PROPERTY DAMAGE; OR
148.   EXERCISE
  ITS  JUDGMENT IN GOOD   FAITH
15 CONCERNING THE ENFORCEMENT OF THE GOVERNING DOCUMENTS AGAINST ANY
16 PERSON THAT IS SUBJECT TO THOSE DOCUMENTS.
17(2)   “DISPUTE” DOES NOT INCLUDE A DISAGREEMENT THAT
18 INVOLVES:
19(I)    TITLE TO ANY UNIT OR COMMON ELEMENT;
20(II)   THE PERCENTAGE INTEREST OR VOTE ALLOCABLE TO A
21 UNIT;
22(III) THE   INTERPRETATION     OR   ENFORCEMENT    OF   ANY
23 WARRANTY;
24(IV)      THE COLLECTION OF AN ASSESSMENT VALIDLY LEVIED
25 AGAINST A PARTY; OR
26(V)
  THE EXERCISE OF THE JUDGMENT OR DISCRETION OF A
27 COMMON OWNERSHIP COMMUNITY REGARDING ANY LEGALLY AUTHORIZED ACTION.
8SENATE BILL 981
1      (E)   “GOVERNING BODY OF A COMMON OWNERSHIP COMMUNITY” MEANS:
2(1)   THE COUNCIL OF UNIT OWNERS OF A CONDOMINIUM;
3(2)     THE BOARD OF DIRECTORS OF A COOPERATIVE HOUSING
4 CORPORATION;
5(3)   A HOMEOWNERS ASSOCIATION, BOARD OF DIRECTORS, OR ANY
6 OTHER ENTITY ESTABLISHED TO GOVERN A PROPERTY SUBJECT TO AN INSTRUMENT
7 THAT IMPOSES ON LOTS, OR ON THE OWNERS OR OCCUPANTS OF LOTS, ANY
8 MANDATORY FEE IN CONNECTION WITH THE PROVISION OF SERVICES OR
9 OTHERWISE FOR THE BENEFIT OF SOME OR ALL OF THE LOTS; OR
10(4)   ANYOTHER BODY AUTHORIZED TO ADOPT RULES OR
11 REGULATIONS   GOVERNING   A   CONDOMINIUM, COOPERATIVE HOUSING
12 CORPORATION, OR HOMEOWNERS ASSOCIATION.
13      (F)   (1)   “GOVERNING DOCUMENT” MEANS:
14(I)THE MASTER DEED, DECLARATION, INCORPORATION
15 DOCUMENT, BYLAWS, OR RULES OF ANY COMMON OWNERSHIP COMMUNITY;
16(II)   A WRITTEN PRIVATE AGREEMENT BETWEEN PARTIES
17 CONCERNING THE OPERATION OF THE COMMUNITY OR MAINTENANCE OR CONTROL
18 OF COMMON OR LIMITED COMMON PROPERTY; OR
19(III) A DOCUMENT CONCERNING  THE   OPERATION   OR
20 GOVERNANCE OF A COMMON OWNERSHIP COMMUNITY.
21(2) “GOVERNING DOCUMENT” DOES NOT INCLUDE A LEASE UNLESS
22 THE LEASE PROVIDES THAT IT MAY BE ENFORCED UNDER THIS TITLE.
23      (G) “LOCAL COMMISSION” MEANS A COMMISSION ON COMMON OWNERSHIP
24 COMMUNITIES ESTABLISHED BY A COUNTY IN ACCORDANCE WITH THIS TITLE.
25      (H)   “LOCAL GOVERNMENT” MEANS:
26(1)   THE COUNTY COMMISSIONERS OR COUNTY COUNCIL OF A
27 COUNTY;
28(2) IF THE CHARTER OF THE COUNTY PROVIDES FOR A COUNTY
29 EXECUTIVE, THE COUNTY EXECUTIVE AND THE COUNTY COUNCIL; OR
  SENATE BILL 981  9
1(3)   THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY.
2(I)   “OWNER” MEANS:
3(1)   A UNIT OWNER IN A CONDOMINIUM;
4(2)   A MEMBER OF A COOPERATIVE HOUSING CORPORATION; OR
5(3)   A LOT OWNER IN A HOMEOWNERS ASSOCIATION.
6 11C–102.
7      THE PROVISIONS OF THIS TITLE SUPERSEDE ANY INCONSISTENT PROVISIONS
8 OF LOCAL LAW THAT CONFLICT WITH THIS TITLE TO THE EXTENT OF THE CONFLICT.
9 11C–103.
10(A)   A LOCAL COMMISSION ON COMMON OWNERSHIP COMMUNITIES
11 ESTABLISHED BY THE LOCAL GOVERNMENT OF A COUNTY BY LOCAL LAW SHALL
12 COMPLY WITH THE REQUIREMENTS OF THIS TITLE.
13(B)   (1)   (I)
  SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, A
14 LOCAL COMMISSION SHALL INCLUDE MEMBERS WHO:
151.   ARE OWNERS IN A COMMON OWNERSHIP COMMUNITY;
16 AND
172.
  REPRESENT PROFESSIONS ASSOCIATED WITH
18 COMMON OWNERSHIP COMMUNITIES, INCLUDING INDIVIDUALS INVOLVED IN
19 HOUSING DEVELOPMENT OR REAL ESTATE SALES, DEVELOPERS, OR ATTORNEYS
20 WHO REPRESENT COMMON OWNERSHIP COMMUNITIES INCLUDING AT LEAST ONE
21 MEMBER WHO IS A LICENSED COMMON OWNERSHIP COMMUNITY MANAGER.
22(II)
  THE LOCAL GOVERNMENT SHALL DETERMINE THE TOTAL
23 NUMBER OF MEMBERS OF THE LOCAL COMMISSION.
24(2)THE FOLLOWING INDIVIDUALS SHALL SERVE AS NONVOTING
25 MEMBERS OF A LOCAL COMMISSION:
26(I)    A DESIGNEE OF THE LOCAL GOVERNMENT; AND
27(II)   A DESIGNEE OF A COUNTY AGENCY DEALING WITH:
10SENATE BILL 981
11.   PLANNING;
22.   ENVIRONMENT;
33.   PERMITTING;
44.   TRANSPORTATION; OR
55.   HOUSING AND COMMUNITY AFFAIRS.
6      (C)  THE CHAIR AND VICE CHAIR OF A LOCAL COMMISSION SHALL BE
7 ELECTED FROM AMONG THE VOTING MEMBERSHIP OF THE LOCAL COMMISSION.
8      (D)   (1)   SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, A LOCAL
9 GOVERNMENT ESTABLISHING A LOCAL COMMISSION SHALL ADOPT PROCEDURES
10 FOR THE APPOINTMENT AND TERMS OF MEMBERS OF THE LOCAL COMMISSION.
11(2)A MEMBER OF A LOCAL COMMISSION MAY NOT SERVE MORE THAN
12 TWO CONSECUTIVE TERMS.
13 11C–104.
14      (A)  A MAJORITY OF THE TOTAL MEMBERSHIP OF A LOCAL COMMISSION
15 SHALL CONSTITUTE A QUORUM.
16      (B) A LOCAL COMMISSION SHALL MEET AT LEAST MONTHLY AND
17 DETERMINE THE TIMES AND PLACES OF ITS MEETINGS.
18      (C)   A MEMBER OF A LOCAL COMMISSION:
19(1) MAY NOT RECEIVE COMPENSATION AS A MEMBER OF THE LOCAL
20 COMMISSION; BUT
21(2)IS ENTITLED TO REIMBURSEMENT FOR EXPENSES UNDER THE
22 STANDARD COUNTY TRAVEL REGULATIONS.
23      (D)   (1)   A LOCAL COMMISSION SHALL:
24(I)    ADOPT
  RULES  OF     PROFESSIONAL   CONDUCT   AS
25 APPROPRIATE FOR MEMBERS AND STAFF;
26(II)   KEEP A RECORD OF ITS PROCEEDINGS;
  SENATE BILL 981  11
1(III) EXAMINE      THE   NEEDS    OF   COMMON    OWNERSHIP
2 COMMUNITIES IN THE COUNTY;
3(IV)   ADVISE COUNTY GOVERNMENT AND APPROPRIATE STATE
4 AND FEDERAL AGENCIES ON MATTERS RELATING TO COMMON OWNERSHIP
5 COMMUNITIES; AND
6(V)    PROVIDE TRAINING ON THE RESPONSIBILITIES OF A LOCAL
7 COMMISSION’S MEMBERS TO THE GOVERNING BODY OF A COMMON OWNERSHIP
8 COMMUNITY BY:
91.   DEVELOPING AN EDUCATIONAL CURRICULUM FOR
10 NEW MEMBERS; AND
112.
  APPROVING  AN    ALTERNATIVE    EDUCATIONAL
12 CURRICULUM FOR NEW MEMBERS.
13(2)   A LOCAL COMMISSION MAY:
14(I)    EMPLOY STAFF AS AUTHORIZED BY A LOCAL GOVERNMENT;
15(II)   ESTABLISH A PROCESS FOR RESOLVING DISCIPLINARY
16 MATTERS PENDING BEFORE THE LOCAL COMMISSION THROUGH NONJUDICIAL
17 DISPUTE RESOLUTION PROCESSES;
18(III) DEVELOP EDUCATIONAL AND TRAINING OPPORTUNITIES
19 FOR GOVERNING BODIES;
20(IV)ADOPT ADDITIONAL BYLAWS NECESSARY TO CARRY OUT
21 THE BUSINESS OF THE LOCAL COMMISSION; AND
22(V)    ADOPT ANY ADDITIONAL REGULATIONS, PROCEDURES, OR
23 STANDARDS CONSISTENT WITH THE MISSION OF THE LOCAL COMMISSION AND TO
24 CARRY OUT THE REQUIREMENTS OF THIS TITLE.
25 11C–105.
26     (A) A LOCAL LAW ESTABLISHING A LOCAL COMMISSION SHALL REQUIRE
27 COMMON OWNERSHIP COMMUNITIES IN THE COUNTY TO REGISTER WITH THE LOCAL
28 COMMISSION ANNUALLY ON A FORM THAT IDENTIFIES:
12SENATE BILL 981
1(1) THE ELECTED LEADERSHIP OF THE COMMON OWNERSHIP
2 COMMUNITY; AND
3(2)     THE   MANAGING   AGENTS   OF   THE   COMMON   OWNERSHIP
4 COMMUNITY.
5      (B) A COMMON OWNERSHIP COMMUNITY THAT FAILS TO REGISTER OR
6 MAKES A FALSE STATEMENT ON A REGISTRATION FORM IS INELIGIBLE TO FILE A
7 DISPUTE.
8 11C–106.
9      (A)   A LOCAL LAW ESTABLISHING A LOCAL COMMISSION MAY AUTHORIZE
10 THE COLLECTION OF A REASONABLE FEE FOR SERVICES PROVIDED BY THE LOCAL
11 COMMISSION.
12      (B) ANY AUTHORIZED FEE SHALL BE USED TO COVER THE COST OF
13 MAINTAINING THE LOCAL COMMISSION AND MAY INCLUDE:
14(1) A PER UNIT ANNUAL CHARGE TO COMMON OWNERSHIP
15 COMMUNITIES TO RENEW REGISTRATION;
16(2)   FEES FOR DISPUTE RESOLUTION UNDER § 11C–110 OF THIS
17 TITLE, SERVICE, AND TECHNICAL ASSISTANCE; AND
18(3)      A PER UNIT CHARGE TO DEVELOPERS FOR THE RECORDATION OF
19 DOCUMENTS.
20      (C)  IF THE COLLECTION OF A FEE BY A LOCAL COMMISSION IS AUTHORIZED
21 UNDER THIS SECTION, THE LOCAL COMMISSION SHALL PUBLISH THE FEE
22 SCHEDULE.
23 11C–107.
24      A LOCAL GOVERNMENT THAT ESTABLISHES A LOCAL COMMISSION SHALL
25 DESIGNATE A COUNTY AGENCY OR AN OFFICE TO:
26(1) DISSEMINATE EDUCATIONAL MATERIALS REGARDING PROGRAMS
27 THAT ASSIST COMMON OWNERSHIP COMMUNITIES;
28(2)   CONDUCTEDUCATIONAL PROGRAMS  TO   PROMOTE   THE
29 OPERATION OF COMMON OWNERSHIP COMMUNITIES;
  SENATE BILL 981  13
1(3)   MAINTAIN A LIST OF:
2(I)
  COMMON OWNERSHIP COMMUNITIES IN THE COUNTY,
3 INCLUDING THE LEADERSHIP OF EACH COMMON OWNERSHIP COMMUNITY; AND
4(II)
  PROFESSIONAL MANAGEMENT COMPANIES THAT PROVIDE
5 SERVICES TO COMMON OWNERSHIP COMMUNITIES IN THE COUNTY;
6(4)MAINTAIN INFORMATION AND A REFERRAL SYSTEM FOR ALL
7 COUNTY SERVICES RELATED TO COMMON OWNERSHIP COMMUNITIES;
8(5)   MAINTAIN A COLLECTION OF GOVERNING DOCUMENTS;
9(6)PROVIDE TECHNICAL ASSISTANCE TO GOVERNING BODIES ON
10 MATTERS INCLUDING:
11(I)    LEADERSHIP TRANSITION;
12(II)   ELECTIONS;
13(III) ADOPTION OF RULES;
14(IV)   ENFORCEMENT OF RULES;
15(V)    SELECTION OF ASSOCIATION MANAGERS; AND
16(VI)   STORMWATER MANAGEMENT;
17(7)
  MAINTAIN AN OPERATIONS MANUAL TO GUIDE COMMON
18 OWNERSHIP COMMUNITY LEADERSHIP;
19(8)   ADVISE COMMON OWNERSHIP COMMUNITIES AND PROFESSIONAL
20 ASSOCIATION MANAGERS OF CHANGES IN THE LAWS AND REGULATIONS THAT
21 AFFECT THEIR COMMUNITIES OR OPERATIONS; AND
22(9) OPERATE A DISPUTE RESOLUTION PROCESS TO FURNISH
23 MEDIATION AND ADMINISTRATIVE HEARINGS.
24 11C–108.
25      (A)   A LOCAL COMMISSION MAY HEAR ANY DISPUTE BETWEEN PARTIES.
26      (B)   A PARTY MAY NOT FILE A DISPUTE WITH A LOCAL COMMISSION UNTIL:
14SENATE BILL 981
1(1)   THE PARTY HAS MADE A GOOD FAITH EFFORT TO EXHAUST ALL
2 PROCEDURES AND REMEDIES PROVIDED BY THE GOVERNING DOCUMENTS OF THE
3 COMMON OWNERSHIP COMMUNITY; AND
4(2)  AT LEAST 60 DAYS AFTER ANY PROCEDURE OR REMEDY HAS BEEN
5 INITIATED WITH THE GOVERNING BODY OF A COMMON OWNERSHIP COMMUNITY.
6      (C)   (1)IF THE GOVERNING BODY OF A COMMON OWNERSHIP COMMUNITY
7 DETERMINES THAT A DISPUTE EXISTS, THE GOVERNING BODY OF THE COMMON
8 OWNERSHIP COMMUNITY SHALL NOTIFY THE OTHER PARTIES OF THE OPTION TO
9 FILE THE DISPUTE WITH A LOCAL COMMISSION.
10(2)   THE GOVERNING BODY OF A COMMON OWNERSHIP COMMUNITY
11 MAY NOT TAKE ACTION TO ENFORCE OR IMPLEMENT THE DECISION OF THE
12 GOVERNING BODY FOR 14 DAYS FOLLOWING NOTIFICATION OF ALL OTHER PARTIES.
13      (D)   EXCEPT AS PROVIDED IN § 11C–109 OF THIS TITLE, ON THE FILING OF
14 A DISPUTE WITH A LOCAL COMMISSION, THE DECISION OF THE GOVERNING BODY OF
15 A COMMON OWNERSHIP COMMUNITY SHALL BE STAYED AND MAY NOT BE ENFORCED
16 OR IMPLEMENTED, OTHER THAN BY FILING A CIVIL ACTION, UNTIL THE
17 COMPLETION OF THE DISPUTE PROCESS.
18 11C–109.
19      (A)   (1)   AT ANY TIME AFTER A DISPUTE IS FILED, THE GOVERNING BODY
20 OF A COMMON OWNERSHIP COMMUNITY MAY SUBMIT A REQUEST TO LIFT AN
21 AUTOMATIC STAY UNDER § 11C–108 OF THIS TITLE.
22(2) IF A HEARING PANEL HAS NOT BEEN APPOINTED UNDER §
23 11C–112 OF THIS TITLE, THE LOCAL COMMISSION SHALL AUTHORIZE A SPECIAL
24 STANDING PANEL TO CONSIDER REQUESTS FOR RELIEF FROM STAYS.
25(3)   THE SPECIAL PANEL SHALL INCLUDE:
26(I)THREE VOTING MEMBERS OF THE LOCAL COMMISSION
27 DESIGNATED BY THE CHAIR; AND
28(II) AT LEAST ONE MEMBER DESCRIBED UNDER §
29 11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DESCRIBED UNDER §
30 11C–103(B)(1)(I)2 OF THIS TITLE.
  SENATE BILL 981  15
1      (B)   (1)   A GOVERNING BODY OF A COMMON OWNERSHIP COMMUNITY
2 THAT REQUESTS RELIEF FROM A STAY SHALL SERVE A COPY OF ITS REQUEST ON ANY
3 PARTY NAMED IN THE DISPUTE BY CERTIFIED MAIL OR PERSONAL SERVICE.
4(2)A CERTIFICATE OF SERVICE SHALL ACCOMPANY ANY REQUEST
5 SUBMITTED UNDER THIS SECTION.
6(3) A PARTY SERVED WITH A COPY OF THE REQUEST SHALL FILE ANY
7 OPPOSITION TO THE REQUEST WITHIN 10 DAYS AFTER RECEIVING SERVICE.
8      (C)   EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A REQUEST
9 FOR RELIEF FROM A STAY MAY BE GRANTED ONLY IF THE ASSIGNED PANEL FINDS
10 THAT:
11(1)
  ENFORCING THE STAY WOULD RESULT IN UNDUE HARM TO THE
12 COMMON OWNERSHIP COMMUNITY; AND
13(2) LIFTING THE STAY WILL NOT RESULT IN UNDUE HARM TO THE
14 RIGHTS OR INTERESTS OF ANY OPPOSING PARTY.
15      (D)  IF A REQUEST FOR RELIEF FROM A STAY STATING FACTS SUFFICIENT TO
16 SHOW A NEED FOR IMMEDIATE ACTION IS NOT GRANTED OR DENIED WITHIN 20 DAYS
17 AFTER THE REQUEST WAS FILED, THE REQUEST SHALL BE DEEMED GRANTED.
18 11C–110.
19      (A) (1) FOLLOWING THE FILING OF A DISPUTE WITH A LOCAL
20 COMMISSION, AN AGENCY DESIGNATED BY A LOCAL GOVERNMENT UNDER §
21 11C–107 OF THIS TITLE MAY INVESTIGATE FACTS AND ASSEMBLE DOCUMENTS
22 RELEVANT TO THE DISPUTE AND MAY PREPARE A SUMMARY OF THE ISSUES IN THE
23 DISPUTE FOR USE BY THE LOCAL COMMISSION.
24(2)   THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY A PARTY IF
25 THE DESIGNATED AGENCY OR OFFICE FINDS THAT A DISPUTE WAS NOT PROPERLY
26 FILED.
27(3)THE DESIGNATED AGENCY OR OFFICE MAY NOTIFY EACH PARTY
28 OF THE DISPUTE REGARDING POSSIBLE SANCTIONS UNDER § 11C–112 OF THIS
29 TITLE.
30      (B)  IF THE DESIGNATED AGENCY OR OFFICE FINDS THAT, ASSUMING ALL
31 FACTS ALLEGED BY THE PARTY THAT FILED THE DISPUTE ARE TRUE, THERE ARE NO
32 REASONABLE GROUNDS TO CONCLUDE THAT A VIOLATION OF APPLICABLE LAW OR
16SENATE BILL 981
1 ANY GOVERNING DOCUMENT HAS OCCURRED, THE DESIGNATED AGENCY OR OFFICE
2 SHALL INFORM THE LOCAL COMMISSION.
3      (C)  ON RECEIPT OF THE RESULTS OF AN INVESTIGATION BY A DESIGNATED
4 AGENCY OR OFFICE, A LOCAL COMMISSION MAY:
5(1) IF IT FINDS THAT THERE ARE NO REASONABLE GROUNDS TO
6 CONCLUDE THAT A VIOLATION OF APPLICABLE LAW OR ANY GOVERNING DOCUMENT
7 HAS OCCURRED, DISMISS THE DISPUTE;
8(2) REQUEST ADDITIONAL INVESTIGATION BY THE DESIGNATED
9 AGENCY OR OFFICE; OR
10(3)   SCHEDULE A HEARING ON THE DISPUTE.
11      (D)   A LOCAL COMMISSION MAY RECONSIDER THE DISMISSAL OF A DISPUTE
12 IF ANY PARTY FILES A MOTION TO RECONSIDER WITHIN 30 DAYS AFTER THE
13 DISPUTE IS DISMISSED, DEMONSTRATING THAT:
14(1) THE LOCAL COMMISSION ERRONEOUSLY INTERPRETED OR
15 APPLIED APPLICABLE LAW OR A GOVERNING DOCUMENT; OR
16(2) MATERIAL ISSUES OF FACT THAT ARE NECESSARY TO A FAIR
17 RESOLUTION OF THE DISPUTE REMAIN UNRESOLVED.
18 11C–111.
19      (A)   (1)   ANY PARTY IN A DISPUTE MAY REQUEST MEDIATION.
20(2) IF A PARTY REQUESTS MEDIATION, THE LOCAL COMMISSION
21 SHALL NOTIFY ALL PARTIES OF THE REQUEST AND OF THE MEDIATION SESSION.
22(3) A LOCAL COMMISSION SHALL PROVIDE A QUALIFIED MEDIATOR
23 TO MEET WITH THE PARTIES WITHIN 30 DAYS AFTER A PARTY REQUESTS MEDIATION
24 TO ATTEMPT TO SETTLE THE DISPUTE.
25      (B)  IF A PARTY REFUSES TO ATTEND A MEDIATION SESSION, OR IF
26 MEDIATION DOES NOT SUCCESSFULLY RESOLVE THE DISPUTE WITHIN 10 DAYS
27 AFTER THE FIRST MEDIATION SESSION IS HELD, THE LOCAL COMMISSION SHALL
28 PROMPTLY SCHEDULE A HEARING.
29 11C–112.
  SENATE BILL 981  17
1      (A)   (1)IF A HEARING IS SCHEDULED, THE CHAIR OF THE LOCAL
2 COMMISSION SHALL CONVENE A PANEL TO HEAR THE DISPUTE.
3(2) THE CHAIR SHALL SELECT AT LEAST ONE MEMBER DESCRIBED
4 UNDER § 11C–103(B)(1)(I)1 OF THIS TITLE AND AT LEAST ONE MEMBER DESCRIBED
5 UNDER § 11C–103(B)(1)(I)2 OF THIS TITLE.
6(3)   THE LOCAL COMMISSION MEMBERS SELECTED BY THE CHAIR
7 SHALL DESIGNATE A THIRD MEMBER OF THE PANEL FROM A LIST OF VOLUNTEER
8 ARBITRATORS TRAINED OR EXPERIENCED IN COMMON OWNERSHIP COMMUNITY
9 ISSUES MAINTAINED BY THE LOCAL COMMISSION.
10(4)IF A SUITABLE ARBITRATOR IS NOT AVAILABLE, THE CHAIR OF
11 THE LOCAL COMMISSION SHALL DESIGNATE:
12(I)
  A THIRD PANELIST FROM AMONG THE VOTING MEMBERS OF
13 THE LOCAL COMMISSION; AND
14(II)   THE CHAIR OF THE PANEL.
15      (B)   A PANELIST MAY NOT HAVE AN INTEREST IN THE DISPUTE TO BE HEARD.
16      (C)  A HEARING PANEL SHALL HOLD A HEARING ON EACH DISPUTE THAT IS
17 NOT RESOLVED THROUGH MEDIATION UNDER § 11C–111 OF THIS TITLE UNLESS THE
18 LOCAL COMMISSION DETERMINES THAT THE DISPUTE IS:
19(1) IDENTICAL TO ANOTHER DISPUTE BETWEEN THE SAME PARTIES
20 ON WHICH A HEARING HAS ALREADY BEEN HELD UNDER THIS SECTION; OR
21(2)     CLEARLY NOT WITHIN THE JURISDICTION OF THE LOCAL
22 COMMISSION.
23      (D)  A LOCAL COMMISSION SHALL PROVIDE NOTICE OF A HEARING TO ALL
24 PARTIES NOT LESS THAN 30 DAYS BEFORE A HEARING, UNLESS THE LOCAL
25 COMMISSION DETERMINES THAT AN EXPEDITED HEARING IS NECESSARY, IN WHICH
26 CASE NOTICE SHALL BE PROVIDED TO ALL PARTIES AT LEAST 15 DAYS BEFORE A
27 HEARING.
28      (E)   A PARTY OR WITNESS MAY BE ADVISED BY COUNSEL AT A HEARING.
29      (F)  IF A PARTY, AFTER PROPER NOTICE, DOES NOT APPEAR AT THE
30 SCHEDULED HEARING, THE HEARING PANEL MAY ORDER ANY RELIEF FOR ANOTHER
31 PARTY THAT THE FACTS ON RECORD WARRANT.
18SENATE BILL 981
1      (G)   (1) THE HEARING PANEL SHALL APPLY STATE AND COUNTY LAWS
2 AND ALL RELEVANT CASE LAW TO THE FACTS OF THE DISPUTE.
3(2)   A DECISION OF THE HEARING PANEL IS BINDING ON THE PARTIES.
4     (H) (1) A LOCAL COMMISSION MAY ENFORCE A DECISION OF THE
5 HEARING PANEL BY APPROPRIATE LEGAL ACTION.
6(2)IN ADDITION TO ANY OTHER ENFORCEMENT ACTION, A LOCAL
7 COMMISSION MAY:
8(I) FILE FOR INJUNCTIVE RELIEF TO ENFORCE OR CORRECT
9 ANY VIOLATION OF THIS TITLE; AND
10(II)FILE TO RECOVER DAMAGES FOR A LOSS SUSTAINED AS A
11 RESULT OF A VIOLATION OF THIS TITLE.
12      (I)  A HEARING PANEL MAY AWARD COSTS, INCLUDING REASONABLE
13 ATTORNEY’S FEES, TO ANY PARTY IF ANY OTHER PARTY:
14(1) FILED OR MAINTAINED A FRIVOLOUS DISPUTE, OR FILED OR
15 MAINTAINED A DISPUTE IN BAD FAITH;
16(2)   REFUSED TO PARTICIPATE IN MEDIATION OF A DISPUTE; OR
17(3)   SUBSTANTIALLYDELAYED       OR   HINDERED    THE   DISPUTE
18 RESOLUTION PROCESS WITHOUT GOOD CAUSE.
19      (J)  A HEARING PANEL MAY REQUIRE A LOSING PARTY IN A DISPUTE TO PAY
20 ALL OR PART OF ANY FILING FEE.
21      (K)   A LOCAL GOVERNMENT MAY:
22(1)   ESTABLISH ADDITIONAL HEARING PROCEDURES; AND
23(2) ADOPT ADDITIONAL REQUIREMENTS RELATING TO WITNESSES
24 AND EVIDENCE FOR A HEARING.
25 11C–113.
26      (A) A PARTY MAY APPEAL A DECISION OF A HEARING PANEL TO A COURT OF
27 COMPETENT JURISDICTION.
  SENATE BILL 981  19
1      (B)  AN APPEAL OF A DECISION SHALL BE CONSOLIDATED WITH ANY CASE
2 THAT ARISES OUT OF THE SAME FACTS.
3      (C)  THE COURT HEARING AN APPEAL SHALL SUSTAIN THE DECISION OF THE
4 HEARING PANEL UNLESS THE DECISION IS:
5(1)   INCONSISTENT WITH APPLICABLE LAW;
6(2)   LACKING SUBSTANTIAL EVIDENCE; OR
7(3)   ARBITRARY AND CAPRICIOUS.
8 11C–114.
9      (A)   A PARTY MAY FILE A CIVIL ACTION ARISING OUT OF A GOVERNING
10 DOCUMENT OR A LAW REGULATING THE POWERS OF A GOVERNING BODY OF A
11 COMMON OWNERSHIP COMMUNITY.
12      (B)  IF THE COURT IS NOTIFIED THAT A DISPUTE HAS BEEN FILED WITH A
13 LOCAL COMMISSION IN ACCORDANCE WITH THIS TITLE, THE COURT MAY POSTPONE
14 A PROCEEDING FOR AT LEAST 90 DAYS.
15      (C)  THE COURT MAY HEAR THE ACTION DE NOVO IF A HEARING PANEL
16 ASSIGNED TO THE DISPUTE HAS NOT ISSUED A DECISION UNDER § 11C–112 OF THIS
17 TITLE.
18SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
19 1, 2026.