CITIZEN-DRAFTED BILL AH-402

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CITIZEN-DRAFTED BILL AH-402 
 
Requested: August 24, 2024 
Suggested assignment to: Environment and Transportation 
AN ACT concerning 
Common Ownership – CPA Selection, Election by Secret Ballot, Neutral Parties 
FOR the purpose of codifying the right to a fair election administered by neutral parties not under the control of 
incumbents or their agents, and for establishing basic checks and balances essential to the proper functioning of 
a valid governing body acting in good faith.   
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 by amendment. 
 
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as 
follows: 
 
Article – Real Property 
 
11-116 
(a) The council of unit owners shall keep books and records in accordance with good accounting AND 
ELECTION practices on a consistent basis.   
(b) (1) On the request of the unit owners of at least 5 percent of the units, the council of unit owners shall 
cause an audit of the FINANCIAL books and records AND/OR ELECTION RECORDS to be made by an 
independent certified public accountant, provided an audit shall be made not more than once in any 
consecutive 12-month period.   
(2) The cost of the audit shall be a common expense.   
(3) THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT SHALL BE SELECTED BY A MAJORITY OF THE 
UNIT OWNERS OF AT LEAST 5 PERCENT OF THE UNITS AND SHALL BE PART OF THE REQUEST.   
(4) IN THE EVENT THAT A REQUEST FAILS TO RECOMMEND A SPECIFIC INDEPENDENT CERTIFIED PUBLIC 
ACCOUNTANT, THE GOVERNING BODY SHALL SELECT A CERTIFIED PUBLIC ACCOUNTANT WHO HAS NO 
PREVIOUS CONTRACTS OR WORK EXPERIENCE WITH INCUMBENTS OF THE BOARD OF DIRECTORS OR 
WITH THE MANAGER OR MANAGEMENT COMPANY.   
(5) THE GOVERNING BODY MAY NOT RESTRICT ANY DIRECTOR, OFFICER, MANAGER, OR UNIT OWNER 
FROM PROVIDING INFORMATION TO THE CERTIFIED PUBLIC ACCOUNTANT.   
(6) NOTWITHSTANDING THE BYLAWS, THE CERTIFIED PUBLIC ACCOUNTANT SHALL HAVE THE 
AUTHORITY TO INVESTIGATE THE ACCURACY OF ANY BALLOT DISQUALIFICATION. 
 

11-109 ( c ) ( 16 ) ( viii ) NOTWITHSTANDING OTHER PROVISIONS IN THIS TITLE OR THE BYLAWS, THE ELECTION 
PORTION OF A MEETING OF THE COUNCIL OF UNIT OWNERS TO ELECT A BOARD OF DIRECTORS FOR THE 
COUNCIL OF UNIT OWNERS SHALL BE ADMINISTERED AND COUNTED BY ELECTION OFFICIALS INCLUSIVE OF AN 
UNEVEN NUMBER OF ONE OR MORE INSPECTORS EXCLUDING: 
( 1 ) CURRENT MEMBERS OR CANDIDATES OF THE BOARD OF DIRECTORS 
( 2 ) AGENTS, EMPLOYEES, OR SUPERVISORS OF A MANAGER, OR MANAGEMENT COMPANY 
( 3 ) PERSONS UNDER THE CONTROL OF THE BOARD OF DIRECTORS OR MANAGEMENT COMPANY 
( 4 ) ANY PERSON NOT DIRECTLY APPOINTED OR AUTHORIZED BY A MAJORITY OF VOTES OF THE UNIT 
OWNERS LISTED ON THE CURRENT ROSTER PRESENT AND VOTING IN PERSON 
 
11-109 ( c ) ( 16 ) ( ix ) NOTWITHSTANDING THE BYLAWS, ELECTION COUNTS CONDUCTED BY A DIRECTOR, 
OFFICER, OR MANAGER SHALL BE CERTIFIED BY AN INSPECTOR UNDER §11-109 ( C ) ( 16 ) ( VIII ) OF THIS TITLE 
 
11-109 ( c ) ( 16 ) ( x ) SUBJECT TO PARAGRAPH ( c ) OF THIS SECTION, AND SUBJECT TO §11-116 OF THIS TITLE, 
THE ELECTION OF THE MEMBERSHIP OF THE GOVERNING BODY SHALL BE BY SECRET BALLOT.   
 
11A-128 
( b ) (1) On the request of the owners of at least 5 percent of the time-shares, the association, or developer 
during the developer control period, shall cause  an audit of the FINANCIAL books  and records AND/OR 
ELECTION RECORDS, to be made by an independent certified public accountant at common expense. 
(2) An audit may not be required more than once in any consecutive 12-month period.   
(3) THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT SHALL BE SELECTED BY A MAJORITY OF AT LEAST 
5 PERCENT OF THE TIME-SHARES AND SHALL BE PART OF THE REQUEST.   
(4) IN THE EVENT THAT A REQUEST FAILS TO RECOMMEND A SPECIFIC INDEPENDENT CERTIFIED PUBLIC 
ACCOUNTANT,  THE GOVERNING  BODY  SHALL  SELECT A  CERTIFIED PUBLIC  ACCOUNTANT  WHO  HAS  NO 
PREVIOUS  CONTRACTS  OR  WORK  EXPERIENCE  WITH  INCUMBENTS  OF  THE  BOARD  OF  DIRECTORS  OR 
WITH THE MANAGER OR MANAGEMENT COMPANY.   
(5)  THE  GOVERNING  BODY  MAY  NOT  RESTRICT  ANY  DIRECTOR,  OFFICER,  MANAGER,  OR  TIME-SHARE 
FROM PROVIDING INFORMATION TO THE CERTIFIED PUBLIC ACCOUNTANT.   
(6) NOTWITHSTANDING THE BYLAWS, THE CERTIFIED PUBLIC ACCOUNTANT SHALL HAVE THE 
AUTHORITY TO INVESTIGATE THE ACCURACY OF ANY BALLOT DISQUALIFICATION. 
 
 
11B-112.4 AUDIT 
(a) ON THE REQUEST OF THE OWNERS OF AT LEAST 5 PERCENT OF THE LOT OWNERS, THE GOVERNING BODY 
SHALL  CAUSE  AN  AUDIT  OF  THE FINANCIAL  BOOKS  AND  RECORDS  AND/OR  ELECTION  RECORDS,  TO BE 
MADE BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT, PROVIDED THAT:  
(1) THE COST OF THE AUDIT SHALL BE A COMMON EXPENSE.   
(2) AN AUDIT SHALL BE MADE NOT MORE THAN ONCE IN ANY CONSECUTIVE 12-MONTH PERIOD.   

(3)  THE  INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT  SHALL  BE  SELECTED BY  A  MAJORITY OF  AT 
LEAST 5 PERCENT OF THE LOT OWNERS AND SHALL BE PART OF THE REQUEST.   
(4)  IN  THE  EVENT  THAT  A  REQUEST  FAILS  TO  RECOMMEND  A  SPECIFIC  INDEPENDENT  CERTIFIED 
PUBLIC ACCOUNTANT, THE GOVERNING BODY SHALL SELECT A CERTIFIED PUBLIC ACCOUNTANT WHO 
HAS  NO  PREVIOUS  CONTRACTS  OR  WORK  EXPERIENCE  WITH  INCUMBENTS  OF  THE  BOARD  OF 
DIRECTORS OR WITH THE MANAGER OR MANAGEMENT COMPANY.   
(5) THE GOVERNING BODY MAY NOT RESTRICT ANY DIRECTOR, OFFICER, MANAGER, OR LOT OWNER 
FROM PROVIDING INFORMATION TO THE CERTIFIED PUBLIC ACCOUNTANT.   
(6) NOTWITHSTANDING THE BYLAWS, THE CERTIFIED PUBLIC ACCOUNTANT SHALL HAVE THE 
AUTHORITY TO INVESTIGATE THE ACCURACY OF ANY BALLOT DISQUALIFICATION. 
 
 
11B-106.3 ELECTION INSPECTORS AND CERTIFICATION 
( a ) NOTWITHSTANDING OTHER PROVISIONS IN THIS TITLE OR THE BYLAWS, THE ELECTION PORTION OF 
A  MEETING  OF  THE  LOT  OWNERS  TO  ELECT  A  BOARD  OF  DIRECTORS  FOR  THE  HOMEOWNERS 
ASSOCIATION SHALL BE ADMINISTERED AND COUNTED BY ELECTION OFFICIALS INCLUSIVE OF AN UNEVEN 
NUMBER OF ONE OR MORE INSPECTORS EXCLUDING: 
( 1 ) CURRENT MEMBERS OR CANDIDATES OF THE BOARD OF DIRECTORS 
( 2 ) AGENTS, EMPLOYEES, OR SUPERVISORS OF A MANAGER, OR MANAGEMENT COMPANY 
( 3 ) PERSONS UNDER THE CONTROL OF THE BOARD OF DIRECTORS OR MANAGEMENT COMPANY 
( 4 ) ANY PERSON NOT DIRECTLY APPOINTED OR AUTHORIZED BY A MAJORITY OF VOTES OF THE 
LOT OWNERS LISTED ON THE CURRENT ROSTER PRESENT AND VOTING IN PERSON 
(  b  )  NOTWITHSTANDING  THE  BYLAWS,  ELECTION  COUNTS  CONDUCTED  BY  A  DIRECTOR,  OFFICER,  OR 
MANAGER SHALL BE CERTIFIED BY AN INSPECTOR UNDER PARAGRAPH (a) OF THIS SECTION 
( c ) SUBJECT TO PARAGRAPH ( a ) OF THIS SECTION, AND SUBJECT TO §11B-112 AND §11B-112.3 OF THIS 
TITLE, THE ELECTION OF THE MEMBERSHIP OF THE GOVERNING BODY SHALL BE BY SECRET BALLOT.   
 
 
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2025.