HF 2235 — A bill for an act relating to filling a vacancy on a unit owners association executive board.

House File 2235 - IntroducedReprinted HOUSE FILE 2235 BY JUDGE and NORDMAN (As Amended and Passed by the House March 11, 2024) A BILL FOR An Act relating to thefilling electiona ofvacancy on a unit owners association executive board.

TLSBHF 5435YH2235 (6)(7) 90 nls/konls/ko/md H.F.

499C.3 ExecutiveVacancy boardon members.executive board.

1.If an executive board fills a vacancy on the board, the executive board shall submit the name of the appointed board member for a ratification vote at the next annual meeting or at a special meeting called pursuant to the bylaws of the unit owners association, or pursuant to the chapter under subtitle 3 or subtitle 5 of Title XII that the unit owners association is organized under.

If anthe executiveappointed board appoints a board member tois fillratified aby vacancythe onvote of the board,members, the appointed board member shall standserve for election for the remainingremainder length of the term for which the member was appointed at the next annual meeting of the unitvacant ownersposition. association.

2.If the appointed board member is not ratified by the vote of the members, the members may fill the vacancy pursuant to the bylaws of the unit owners association, or pursuant to the chapter under subtitle 3 or subtitle 5 of Title XII that the unit owners association is organized under.

If,Notwithstanding atthis anysection, given time, a majorityunit ofowners theassociation boardshall membersbe ofgoverned anby executivethe boardchapter areunder eithersubtitle serving3 by appointment or bysubtitle extension5 of theTitle boardXII member’sthat term through the distribution of unserved time from other board members vacating their board positions, a petition bearing the signatures of one-fourth of all unit owners shallassociation forceis anorganized openunder. election for all executive board seats occupied by an appointed member or a member serving an extended term.

AnHF election2235 required(7) under90 this-1- subsectionnls/ko/md shall1/1 be held no more than sixty days after the filing of the petition.

A petition may not force an election less than sixty days prior to a regular election.

3.

An executive board shall provide written notice, in the form and manner as may be established by the bylaws, to all unit owners no more than thirty calendar days prior to an election pursuant to subsection 1 or 2.

All unit owners shall be eligible to vote in such an election in the form and manner established by the bylaws.

4.

An executive board’s refusal or failure to hold an election in compliance with this section shall be grounds for any unit owner to bring an action in small claims court if the small claims court has jurisdiction based on the amount in controversy pursuant to section 631.1 or, if the amount is unknown or the small claims court does not have jurisdiction, in the district court in the county where the unit owners association is located to request that the court order the executive board and the unit owners to mediate, and that the court appoint the mediator.

EXPLANATION The inclusion of this explanation does not constitute agreement with LSB 5435YH (6) 90 -1- nls/ko 1/2 H.F.

2235 the explanation’s substance by the members of the general assembly.

This bill relates to the appointment and election of an executive board (board).

The bill requires an election for a board member who has been appointed to fill a vacancy on the board.

The appointed board member must stand for election at the next annual meeting of the unit owners association in order to serve the remaining length of the appointed board member’s term.

The bill permits one-fourth of the unit owners to petition the board to hold an election when a majority of the board members currently serve either by appointment or through the extension of the board member’s term by the distribution of unserved time for a vacated board position.

The election shall be for all board members currently serving by appointment or by the extension of the board member’s term.

The election shall be held no more than 60 days after the filing of the petition.

A petition may not force an election less than 60 days prior to a regular election.

The bill requires the board to provide written notice, in the form and manner required by the bylaws, to all unit owners prior to an election no more than 30 days prior to the election.

All unit owners shall be eligible to vote in an election required under the bill in the form and manner established by the bylaws.

If a board refuses or fails to comply with the requirements of the bill, the bill permits a unit owner to bring an action in small claims court or, if the amount in controversy is unknown or the small claims court does not have jurisdiction, in the district court in the county where the unit owners association is located to request that the court order the board and the unit owners to mediate with a court-appointed mediator.

LSB 5435YH (6) 90 -2- nls/ko 2/2