EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0968* SENATE BILL 968 Q1 2lr3050 By: Senator Edwards Introduced and read first time: February 15, 2022 Assigned to: Rules A BILL ENTITLED AN ACT concerning 1 Tax Sales – Foreclosure Actions – Assignment of Certificates of Sale 2 FOR the purpose of authorizing the governing body of a county or municipal corporation to 3 file a petition with a court to request that a certain certificate of sale be assigned to 4 the governing body of the county or the municipal corporation in a certain foreclosure 5 action under certain circumstances; providing that, on a grant of the petition by the 6 court, the holder of the certificate of sale forfeits certain rights and the amount paid 7 to acquire the certificate of sale; applying this Act retroactively; and generally 8 relating to tax sales of property. 9 BY adding to 10 Article – Tax – Property 11 Section 14–821(c) 12 Annotated Code of Maryland 13 (2019 Replacement Volume and 2021 Supplement) 14 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 That the Laws of Maryland read as follows: 16 Article – Tax – Property 17 14–821. 18 (C) (1) THE GOVERNING BODY OF A COUNTY OR MUNICIPA L 19 CORPORATION MAY FILE A PETITION WITH THE COURT REQUE STING THAT A 20 CERTIFICATE OF SALE BE ASSIGNED TO THE G OVERNING BODY OF THE COUNTY OR 21 MUNICIPAL CORPORATIO N IF: 22 (I) A FORECLOSURE ACTION HAS BEEN INITIATED B Y THE 23 HOLDER OF THE CERTIF ICATE OF SALE IN ACCORDANCE WIT H THIS SUBTITLE; AND 24 2 SENATE BILL 968 (II) THE FORECLOSURE ACTI ON IS SUBJECT TO DIS MISSAL FOR 1 A LACK OF PROSECUTIO N UNDER MARYLAND RULE 2–507 OR A FINAL ORDER HAS 2 NOT BEEN ENTERED IN THE FORECLOSURE ACTI ON WITHIN 18 MONTHS AFTER THE 3 FILING OF THE COMPLAINT , WHICHEVER IS EARLIER . 4 (2) ON THE FILING OF A PETITION UNDER THIS S UBSECTION, THE 5 COURT SHALL ISSUE A SUMMONS TO PROCURE A N ANSWER AND APPEARA NCE OF 6 THE HOLDER OF THE CE RTIFICATE OF SALE TO SHOW GOOD CAUSE A S TO WHY THE 7 COURT SHOULD NOT G RANT THE PETITION . 8 (3) IF THE HOLDER OF THE CERTIFICATE OF SALE FAILS TO RESPOND 9 TO THE PETITION IN A CCORDANCE WITH THE MARYLAND RULES, THE COURT SHALL 10 GRANT THE PETITION . 11 (4) IF A COURT GRANTS A PETITION UNDER THI S SUBSECTION, THE 12 HOLDER OF THE CERTIF ICATE OF SALE SHALL FORFEIT : 13 (I) ANY RIGHTS UNDER THE CERTIFICATE OF SALE ; AND 14 (II) THE AMOUNT PAID TO A CQUIRE THE CERTIFICA TE OF SALE. 15 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 16 apply retroactively and shall be applied to and interpreted to affect any tax sale actions 17 foreclosing the right of redemption that are pending on enactment of this Act. 18 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 19 1, 2022. 20