hb0137e

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.[Brackets] indicate matter deleted from existing law.Underlining indicates amendments to bill.Strike out indicates matter stricken from the bill by amendment or deleted from the law byamendment.Italics indicate opposite chamber/conference committee amendments.

*hb0137*

HOUSE BILL 137N1 (9lr0815)

ENROLLED BILL—Environmental Matters/Judicial Proceedings—

Introduced by Delegates McConkey, Weir, Boteler, Hucker, Holmes, Bobo, andGlenn

Read and Examined by Proofreaders:

_______________________________________________Proofreader.

_______________________________________________Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _______________ at ________________________ o’clock, ________M.

______________________________________________Speaker.

CHAPTER ______

AN ACT concerning

Home Financial Accountability Act of 2009

FOR the purpose of clarifying the availability of certain books and records kept by oron behalf of certain common ownership communities for certain purposes and tocertain persons; requiring the governing body of certain common ownershipcommunities, on request of a member, unit owner, or lot owner, to compile andsend certain information within a certain time; making a stylistic change;altering certain limitations concerning public inspection of certain records;prohibiting certain common ownership communities from imposing certain feesother than a reasonable charge imposed on a person desiring to review or copycertain books and records or who requests delivery of certain information;providing that a charge for copying certain records may not exceed a certainamount; and generally relating to access to the books and records of cooperativehousing associations, condominiums, and homeowners associations.

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BY repealing and reenacting, with amendments,Article – Corporations and AssociationsSection 5–6B–18.5Annotated Code of Maryland(2007 Replacement Volume and 2008 Supplement)

BY repealing and reenacting, with amendments,Article – Real PropertySection 11–116(c) and (d) and 11B–112(a) and (b)Annotated Code of Maryland(2003 Replacement Volume and 2008 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OFMARYLAND, That the Laws of Maryland read as follows:

Article – Corporations and Associations

5–6B–18.5.

(a) (1) (I) Except as provided in paragraph (2) of this subsection, allbooks and records kept by or on behalf of a cooperative housing corporation shall bemade available for examination [and] OR copying, OR BOTH, by a member, amember’s mortgagee, [and] OR their respective duly authorized agents or attorneys,during normal business hours, and after reasonable notice.

(II) IF A MEMBER REQUESTS IN WRITING A COPY OFFINANCIAL STATEMENTS OF THE COOPERATIVE HOUSING CORPORATION ORTHE MINUTES OF A MEETING OF THE BOARD OF DIRECTORS OR OTHERGOVERNING BODY OF THE COOPERATIVE HOUSING CORPORATION TO BEDELIVERED, THE BOARD OF DIRECTORS OR OTHER GOVERNING BODY OF THECOOPERATIVE HOUSING CORPORATION SHALL COMPILE AND SEND THEREQUESTED INFORMATION BY MAIL, ELECTRONIC TRANSMISSION, ORPERSONAL DELIVERY WITHIN:

1. WITHIN 21 DAYS AFTER RECEIPT OF THEWRITTEN REQUEST, IF THE FINANCIAL STATEMENTS OR MINUTES WEREPREPARED WITHIN THE 3 YEARS IMMEDIATELY PRECEDING RECEIPT OF THEREQUEST; OR

2. WITHIN 45 DAYS AFTER RECEIPT OF THE WRITTENREQUEST, IF THE FINANCIAL STATEMENTS OR MINUTES WERE PREPARED MORETHAN 3 YEARS BEFORE RECEIPT OF THE REQUEST.

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(2) Books and records kept by or on behalf of a cooperative housingcorporation may be withheld from public inspection, EXCEPT FOR INSPECTION BYTHE PERSON WHO IS THE SUBJECT OF THE RECORD OR THE PERSON’SDESIGNEE OR GUARDIAN, to the extent that they concern:

(i) Personnel records, NOT INCLUDING INFORMATION ONINDIVIDUAL SALARIES, WAGES, BONUSES, AND OTHER COMPENSATION PAID TOEMPLOYEES RECEIVING ANNUAL COMPENSATION EXCEEDING $50,000;

(ii) An individual’s medical records;

(iii) An individual’s PERSONAL financial records, INCLUDINGASSETS, INCOME, LIABILITIES, NET WORTH, BANK BALANCES, FINANCIALHISTORY OR ACTIVITIES, AND CREDITWORTHINESS;

(iv) Records relating to business transactions that are currentlyin negotiation;

(v) The written advice of legal counsel; or

(vi) Minutes of a closed meeting of the board of directors or othergoverning body of the cooperative housing corporation, UNLESS A MAJORITY OF AQUORUM OF THE BOARD OF DIRECTORS OR GOVERNING BODY THAT HELD THEMEETING APPROVES UNSEALING THE MINUTES OR A RECORDING OF THEMINUTES FOR PUBLIC INSPECTION.

(b) (1) [The cooperative housing corporation may impose] EXCEPT FOR areasonable charge IMPOSED on a person desiring to review or copy the books andrecords OR WHO REQUESTS DELIVERY OF INFORMATION, THE COOPERATIVEHOUSING CORPORATION MAY NOT IMPOSE ANY CHARGES UNDER THIS SECTION.

(2) A CHARGE IMPOSED UNDER PARAGRAPH (1) OF THISSUBSECTION FOR COPYING BOOKS AND RECORDS MAY NOT EXCEED THE LIMITSAUTHORIZED UNDER TITLE 7, SUBTITLE 2 OF THE COURTS ARTICLEPREVAILING AVERAGE CHARGE BY COMMERCIAL COPYING SERVICES IN THECOMMUNITY LIMITS AUTHORIZED UNDER TITLE 7, SUBTITLE 2 OF THE COURTSARTICLE.

Article – Real Property

11–116.

(c) (1) (I) Except as provided in paragraph (2) of this subsection, allbooks and records, including insurance policies, kept by the council of unit ownersshall be maintained in Maryland or within 50 miles of its borders and shall be

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available at some place designated by the council of unit owners within the countywhere the condominium is located for examination [and] OR copying, OR BOTH, byany unit owner, [his] A UNIT OWNER’S mortgagee, [and] OR their respective dulyauthorized agents or attorneys, during normal business hours, and after reasonablenotice.

(II) IF A UNIT OWNER REQUESTS IN WRITING A COPY OFFINANCIAL STATEMENTS OF THE CONDOMINIUM OR THE MINUTES OF AMEETING OF THE BOARD OF DIRECTORS OR OTHER GOVERNING BODY OF THECONDOMINIUM TO BE DELIVERED, THE BOARD OF DIRECTORS OR OTHERGOVERNING BODY OF THE CONDOMINIUM SHALL COMPILE AND SEND THEREQUESTED INFORMATION BY MAIL, ELECTRONIC TRANSMISSION, ORPERSONAL DELIVERY WITHIN:



(2) Books and records kept by or on behalf of a council of unit ownersmay be withheld from public inspection, EXCEPT FOR INSPECTION BY THE PERSONWHO IS THE SUBJECT OF THE RECORD OR THE PERSON’S DESIGNEE ORGUARDIAN, to the extent that they concern:






(vi) Minutes of a closed meeting of the board of directors or othergoverning body of the council of unit owners, UNLESS A MAJORITY OF A QUORUM OF

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THE BOARD OF DIRECTORS OR GOVERNING BODY THAT HELD THE MEETINGAPPROVES UNSEALING THE MINUTES OR A RECORDING OF THE MINUTES FORPUBLIC INSPECTION.

(d) (1) [The council of unit owners may impose] EXCEPT FOR areasonable charge [upon] IMPOSED ON a person desiring to review or copy the booksand records OR WHO REQUESTS DELIVERY OF INFORMATION, THE COUNCIL OFUNIT OWNERS MAY NOT IMPOSE ANY CHARGES UNDER THIS SECTION.


11B–112.

(a) (1) (I) Subject to the provisions of paragraph (2) of this subsection,all books and records kept by or on behalf of the homeowners association shall bemade available for examination [and] OR copying, OR BOTH, by a lot owner, a lotowner’s mortgagee, [and] OR their respective duly authorized agents or attorneys,during normal business hours, and after reasonable notice.

(II) IF A LOT OWNER REQUESTS IN WRITING A COPY OFFINANCIAL STATEMENTS OF THE HOMEOWNERS ASSOCIATION OR THE MINUTESOF A MEETING OF THE GOVERNING BODY OF THE HOMEOWNERS ASSOCIATIONTO BE DELIVERED, THE GOVERNING BODY OF THE HOMEOWNERS ASSOCIATIONSHALL COMPILE AND SEND THE REQUESTED INFORMATION BY MAIL,ELECTRONIC TRANSMISSION, OR PERSONAL DELIVERY WITHIN:



(2) Books and records kept by or on behalf of a homeownersassociation may be withheld from public inspection, EXCEPT FOR INSPECTION BYTHE PERSON WHO IS THE SUBJECT OF THE RECORD OR THE PERSON’SDESIGNEE OR GUARDIAN, to the extent that they concern:

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(vi) Minutes of a closed meeting of the governing body of thehomeowners association, UNLESS A MAJORITY OF A QUORUM OF THE GOVERNINGBODY OF THE HOMEOWNERS ASSOCIATION THAT HELD THE MEETING APPROVESUNSEALING THE MINUTES OR A RECORDING OF THE MINUTES FOR PUBLICINSPECTION.

(b) (1) [The homeowners association may impose] EXCEPT FOR areasonable charge [upon] IMPOSED ON a person desiring to review or copy the booksand records OR WHO REQUESTS DELIVERY OF INFORMATION, THE HOMEOWNERSASSOCIATION MAY NOT IMPOSE ANY CHARGES UNDER THIS SECTION.


SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effectOctober 1, 2009.

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hb0137e