Revision: Nov. 6, 2017, 2:11 p.m.
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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.