HB1522 (2018) Detail

Relative to the fiduciary duty of members of condominium boards of directors.


HB 1522 - AS INTRODUCED

 

 

2018 SESSION

18-2368

10/03

 

HOUSE BILL 1522

 

AN ACT relative to the fiduciary duty of members of condominium boards of directors.

 

SPONSORS: Rep. Webb, Rock. 6; Rep. LeBrun, Hills. 32; Rep. Dowling, Rock. 6; Rep. Pantelakos, Rock. 25; Rep. Tripp, Rock. 6; Rep. D. Thomas, Rock. 5; Rep. Crawford, Carr. 4; Rep. Ellis, Straf. 8; Sen. Reagan, Dist 17

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill provides that members of the board of directors of a condominium unit owners' association may be liable for monetary damages for breaches of their duties as fiduciary to the association.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2368

10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to the fiduciary duty of members of condominium boards of directors.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Section; Condominium; Board of Directors Liability.  Amend RSA 356-B by inserting after section 35 the following new section:

356-B:35-a  Board of Directors; Liability.  A member of the board of directors shall discharge his or her fiduciary duties to the unit owners' association in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner he or she reasonably believes to be in the interests of the association.  A member of the board of directors shall not be covered by a master liability policy and shall be liable for monetary damages of the unit owners association if such person knowingly breached or failed to perform his or her fiduciary duties and the breach of, or failure to perform, his or her fiduciary duties constitutes a crime of forgery, theft, embezzlement, tampering with physical evidence, obstruction of justice, or the destruction of or the refusal to allow inspection or copying of an official record of a condominium association that is accessible to unit owners within the time periods required by law;  constitutes a transaction from which the director derived an improper personal benefit, either directly or indirectly; or constitutes recklessness or an act or omission that was in bad faith, with malicious purpose, or in a manner exhibiting wanton and willful disregard of human rights, safety, or property.

2  Effective Date.  This act shall take effect 60 days after its passage.

Links

HB1522 at GenCourtMobile

Action Dates

Date Body Type
Jan. 25, 2018 House Hearing
Feb. 20, 2018 House Exec Session
House Floor Vote
March 6, 2018 House Floor Vote

Bill Text Revisions

HB1522 Revision: 2144 Date: Nov. 6, 2017, 2:11 p.m.

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and referred to Commerce and Consumer Affairs HJ 1 P. 13
Jan. 25, 2018 Public Hearing: 01/25/2018 10:30 AM LOB 302
Feb. 1, 2018 Subcommittee Work Session: 02/01/2018 09:00 AM LOB 302
Feb. 20, 2018 Executive Session: 02/20/2018 LOB 302
Committee Report: Inexpedient to Legislate (Vote 20-0; CC)
March 6, 2018 Committee Report: Inexpedient to Legislate for 03/06/2018 (Vote 20-0; CC) HC 9 P. 7
March 6, 2018 Inexpedient to Legislate: MA VV 03/06/2018 HJ 6 P. 11