HB2046 Summary

• Requires condominium associations to obtain approval from 50% of unit owners before imposing charges, penalties, late fees, or fines, either at an annual meeting or by written consent.

• Establishes a fining procedure that must state the basis for fines and allow unit owners to appeal to the board within 90 days of issuance.

• Guarantees unit owners the right to initiate dispute resolution through sections 514B-161 and 514B-162 prior to paying any fine.

• Changes board authority from discretionary ("may") to mandatory ("shall") in acting on behalf of the association and expands fiduciary duty to include association members, not just the association itself.

• Removes the ability of board members to exclude non-board association members from open board meetings and deliberations through majority vote.