EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0693* HOUSE BILL 693 D1 2lr0670 By: Delegate Clippinger Introduced and read first time: January 31, 2022 Assigned to: Judiciary A BILL ENTITLED AN ACT concerning 1 Courts – Surcharges and Payment to Special Funds 2 FOR the purpose of increasing certain surcharges on certain fees, charges, and costs in 3 certain civil cases in the circuit courts and the District Court; requiring that certain 4 surcharges collected be deposited into the Maryland Legal Services Corporation 5 Fund and directed to certain special funds in the State; establishing the Rental 6 Assistance Special Fund as a special, nonlapsing fund; requiring interest earnings 7 of the Rental Assistance Special Fund to be credited to the Rental Assistance Special 8 Fund; and generally relating to court surcharges and payment to special funds. 9 BY repealing and reenacting, with amendments, 10 Article – Courts and Judicial Proceedings 11 Section 7–202(d) and 7–301(c) 12 Annotated Code of Maryland 13 (2020 Replacement Volume and 2021 Supplement) 14 BY adding to 15 Article – Real Property 16 Section 8–219 and 8–220 17 Annotated Code of Maryland 18 (2015 Replacement Volume and 2021 Supplement) 19 BY repealing and reenacting, without amendments, 20 Article – State Finance and Procurement 21 Section 6–226(a)(2)(i) 22 Annotated Code of Maryland 23 (2021 Replacement Volume) 24 BY repealing and reenacting, with amendments, 25 Article – State Finance and Procurement 26 Section 6–226(a)(2)(ii)144. and 145. 27 2 HOUSE BILL 693 Annotated Code of Maryland 1 (2021 Replacement Volume) 2 BY adding to 3 Article – State Finance and Procurement 4 Section 6–226(a)(2)(ii)146. 5 Annotated Code of Maryland 6 (2021 Replacement Volume) 7 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8 That the Laws of Maryland read as follows: 9 Article – Courts and Judicial Proceedings 10 7–202. 11 (d) The State Court Administrator, as part of the Administrator’s determination 12 of the amount of court costs and charges in civil cases, shall assess a surcharge that: 13 (1) May not be more than [$55] $85 per case; and 14 (2) Shall be deposited into the Maryland Legal Services Corporation Fund 15 established under § 11–402 of the Human Services Article. 16 7–301. 17 (c) (1) The filing fees and costs in a civil case are those prescribed by law 18 subject to modification by law, rule, or administrative regulation. 19 (2) The Chief Judge of the District Court shall assess a surcharge that[: 20 (i) May] MAY not be more than: 21 [1.] (I) [$8] $68 per summary ejectment case, WHICH SHALL 22 BE DEPOSITED AS FOLL OWS: 23 1. $30 INTO THE ACCESS TO COUNSEL IN EVICTIONS 24 SPECIAL FUND; 25 2. $30 INTO THE RENTAL ASSISTANCE SPECIAL FUND; 26 and 27 3. $8 INTO THE MARYLAND LEGAL SERVICES 28 CORPORATION FUND ESTABLISHED UNDE R § 11–402 OF THE HUMAN SERVICES 29 ARTICLE; AND 30 HOUSE BILL 693 3 [2.] (II) [$18] $28 per case for all other civil cases, WHICH 1 SHALL BE DEPOSITED I NTO THE MARYLAND LEGAL SERVICES CORPORATION FUND 2 ESTABLISHED UNDER § 11–402 OF THE HUMAN SERVICES ARTICLE[; and 3 (ii) Shall be deposited into the Maryland Legal Services Corporation 4 Fund established under § 11–402 of the Human Services Article]. 5 (3) (i) In addition to the surcharge assessed under paragraph (2) of this 6 subsection, the Chief Judge of the District Court shall assess a surcharge that may not be 7 more than $10 per case for the following cases filed in Baltimore City: 8 1. Summary ejectment; 9 2. Tenant holding over; 10 3. Breach of lease; and 11 4. Warrant of restitution. 12 (ii) The revenue generated from the surcharge on filing fees collected 13 by the District Court in Baltimore City under subparagraph (i) of this paragraph shall be: 14 1. Remitted quarterly to the Baltimore City Director of 15 Finance; and 16 2. Used to fund the enhancement of sheriff benefits and the 17 increase in sheriff personnel to enhance the service of domestic violence orders. 18 (4) In addition to the surcharge assessed under paragraphs (2) and (3) of 19 this subsection, the Chief Judge of the District Court shall assess a surcharge that: 20 (i) May not be more than: 21 1. $3 per summary ejectment case; and 22 2. $8 per case for all other civil cases; and 23 (ii) Shall be deposited into the Circuit Court Real Property Records 24 Improvement Fund established under § 13–602 of this article. 25 (5) The Court of Appeals may provide by rule for waiver of prepayment of 26 filing fees and other costs in cases of indigency. 27 Article – Real Property 28 8–219. 29 4 HOUSE BILL 693 (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 1 INDICATED. 2 (2) “FUND” MEANS THE RENTAL ASSISTANCE SPECIAL FUND. 3 (3) “MDEC SYSTEM” MEANS THE SYSTEM OF ELECTRONIC FILING 4 AND CASE MANAGEMENT ESTABLISHED BY THE MARYLAND COURT OF APPEALS. 5 (B) THERE IS A RENTAL ASSISTANCE SPECIAL FUND. 6 (C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 7 THE PURPOSE OF THE FUND IS TO PROVIDE FUNDING FOR THE MARYLAND 8 JUDICIARY TO EXPAND T HE MDEC SYSTEM TO ALLOW FOR THE ELECTRONIC 9 FILING OF ALL LANDLORD–TENANT ACTIONS. 10 (2) BEGINNING JULY 1, 2025, OR IF IT OCCURS EARLIER, AT THE TIME 11 THE MARYLAND JUDICIARY NO LONGER N EEDS THE FUNDING TO EXPAND TH E 12 MDEC SYSTEM AS PROVIDED UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE 13 PURPOSE OF THE FUND SHALL BE TO PROV IDE FUNDING TO ORGAN IZATIONS THAT 14 WORK IN THE AREA OF RENTAL ASSISTANCE TO PAY TH E BACK RENT FOR 15 INDIVIDUALS FACING A POTENTIAL RESIDENTIA L RENTAL PROPERTY EV ICTION. 16 (D) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 17 THE MARYLAND JUDICIARY SHALL ADMIN ISTER THE FUND. 18 (2) BEGINNING JULY 1, 2025, OR IF IT OCCURS EARLIER, AT THE TIME 19 THE MDEC SYSTEM IS EXPANDED A S PROVIDED UNDER SUBSECTION (C)(1) OF THIS 20 SECTION, THE MARYLAND DEPARTMENT OF HOUSING AND COMMUNITY 21 DEVELOPMENT SHALL ADMINISTER THE FUND. 22 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 23 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 24 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY, 25 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 26 (F) THE FUND CONSISTS OF : 27 (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 28 (2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 29 THE BENEFIT OF THE FUND; AND 30 HOUSE BILL 693 5 (3) INTEREST EARNINGS OF THE FUND. 1 (G) (1) THE STATE TREASURER SHALL INVEST THE MON EY OF THE FUND 2 IN THE SAME MANNER AS OTHER STATE MONEY MAY BE IN VESTED. 3 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 4 THE FUND. 5 (H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 6 WITH THE STATE BUDGET . 7 8–220. 8 (A) IN THIS SECTION , “MDEC SYSTEM” MEANS THE SYSTEM OF 9 ELECTRONIC FILING AN D CASE MANAGEMENT ES TABLISHED BY THE MARYLAND 10 COURT OF APPEALS. 11 (B) ON OR BEFORE JULY 1, 2025, ALL LANDLORD –TENANT ACTIONS SHALL 12 BE FILED ELECTRONICA LLY IN THE MDEC SYSTEM. 13 Article – State Finance and Procurement 14 6–226. 15 (a) (2) (i) Notwithstanding any other provision of law, and unless 16 inconsistent with a federal law, grant agreement, or other federal requirement or with the 17 terms of a gift or settlement agreement, net interest on all State money allocated by the 18 State Treasurer under this section to special funds or accounts, and otherwise entitled to 19 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 20 Fund of the State. 21 (ii) The provisions of subparagraph (i) of this paragraph do not apply 22 to the following funds: 23 144. the Health Equity Resource Community Reserve Fund; 24 [and] 25 145. the Access to Counsel in Evictions Special Fund; AND 26 146. THE RENTAL ASSISTANCE SPECIAL FUND. 27 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28 October 1, 2022. 29