SB 57 - AS AMENDED BY THE SENATE
03/26/2015 1011s
2015 SESSION
05/01
SENATE BILL 57
AN ACT relative to qualifications and duties of condominium association board members.
SPONSORS: Sen. Stiles, Dist 24; Sen. Boutin, Dist 16; Sen. Cataldo, Dist 6; Rep. Sterling, Ches 14; Rep. Umberger, Carr 2; Rep. Porter, Hills 1; Rep. A. Christie, Rock 37
This bill provides that the board of directors has a fiduciary relationship with members of the unit owners’ association. The bill also prohibits a person who has been convicted of a felony from serving as a board member and prohibits compensation for board members. The bill also requires the unit owners’ association to maintain a fidelity bond for all persons who control or disburse funds of the association.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/26/2015 1011s
15-0439
05/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to qualifications and duties of condominium association board members.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Condominium Act; Unit Owners’ Association; Board Members’ Fiduciary Duty. Amend RSA 356-B:35, II to read as follows:
II. The bylaws shall provide whether or not the unit owners’ association shall elect a board of directors. If there is to be such a board, the bylaws shall specify the powers and responsibilities of the same and the number and terms of its members. The bylaws may delegate to such board, among other things, any of the powers and responsibilities assigned by this chapter to the unit owners’ association. The bylaws shall also specify which, if any, of its powers and responsibilities the unit owners’ association or its board may delegate to a managing agent. The board of directors shall have a fiduciary relationship to members of the unit owners’ association.
2 New Paragraphs; Condominium Act; Qualification of Officers; Compensation Prohibited. Amend RSA 356-B:40 by inserting after paragraph II the following new paragraphs:
II-a. No person who has been convicted of any felony in this state or in a United States district or territorial court, or who has been convicted of any offense in another jurisdiction that would be considered a felony if committed in this state, is eligible to serve as an officer or board member unless such felon’s civil rights have been restored for at least 5 years as of the date on which such person seeks election as an officer or board member.
II-b. An officer shall not directly receive any salary or compensation from the association for the performance of duties as an officer or board member and shall not in any other way benefit financially from service to the association.
II-c. If annually approved by a 2/3 majority of the voting interests present at a properly called meeting of the association, the association may waive the requirements of paragraphs II-a and II-b.
3 New Paragraph; Condominium Act; Insurance; Fidelity Bond Required. Amend RSA 356-B:43 by inserting after paragraph I the following new paragraph:
I-a. The unit owners’ association shall maintain insurance or a fidelity bond for all persons who control or disburse funds for the association. The insurance policy or fidelity bond shall cover the maximum funds that will be in the custody of the association or its management agent at any one time. In this subparagraph, the term “persons who control or disburse funds of the association” includes, but is not limited to, persons authorized to sign checks on behalf of the association, and the president, secretary, and treasurer of the association. The association shall bear the cost of such insurance or bond.
4 Effective Date. This act shall take effect January 1, 2016.