operating in the homeowners association, provided that the percentage of family day
care homes permitted may not be less than 7.5 percent of the total residences of the
homeowners association;

(2) Requires day care providers to pay on a pro rata basis based on the
total number of family day care homes operating in the homeowners association any
increase in insurance costs of the homeowners association that are solely and directly
attributable to the operation of family day care homes in the homeowners association;
and

(3) (2) Imposes a fee for use of common areas in a reasonable amount
not to exceed $50 per year on each family day care home or no-impact home-based
business which is registered and operating in the homeowners association.

(f) (1) If the homeowners association regulates the number or percentage of
family day care homes under subsection (e)(1) of this section, in order to assure
compliance with this regulation, the homeowners association may require residents to
notify the homeowners association before opening a family day care home.

(2) The homeowners association may require residents to notify the
homeowners association before opening a no-impact home-based business.

(g) (1) A day care provider in a homeowners association:

(i) Shall obtain the liability insurance described under §§ 19-106
and 19-202 of the Insurance Article in at least the minimum amount described under
that statute; and

(ii) May not operate without the liability insurance described under
item (i) of this paragraph. 

(2) A homeowners association may not require a day care provider to
obtain insurance in an amount greater than the minimum amount required under
paragraph (1) of this subsection.

(h) A homeowners association may restrict or prohibit a no-impact
home-based business in any common areas.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1999.

Approved May 13, 1999.