EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1050*
HOUSE BILL 1050
N1 3lr2635
CF SB 756
By: Delegates Taylor, Rosenberg, Toles, and Turner
Introduced and read first time: February 10, 2023
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Access to Counsel in Evictions – Funding 2
FOR the purpose of making permanent a requirement that the Comptroller distribute a 3
certain amount of certain abandoned property funds to the Access to Counsel in 4
Evictions Special Fund; making permanent a requirement that the Governor include 5
in the annual budget bill a certain appropriation from the Fund to the Maryland 6
Legal Services Corporation; and generally relating to the Access to Counsel in 7
Evictions Special Fund. 8
BY repealing and reenacting, without amendments, 9
Article – Commercial Law 10
Section 17–101(a) and (c) 11
Annotated Code of Maryland 12
(2013 Replacement Volume and 2022 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Commercial Law 15
Section 17–317(a) 16
Annotated Code of Maryland 17
(2013 Replacement Volume and 2022 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Real Property 20
Section 8–909 21
Annotated Code of Maryland 22
(2015 Replacement Volume and 2022 Supplement) 23
BY repealing and reenacting, with amendments, 24
Chapter 40 of the Acts of the General Assembly of 2022 25
Section 2 26
2 HOUSE BILL 1050
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Commercial Law 3
17–101. 4
(a) In this title the following words have the meanings indicated. 5
(c) “Administrator” means the State Comptroller. 6
17–317. 7
(a) (1) (i) All funds received under this title, including the proceeds of the 8
sale of abandoned property under § 17–316 of this subtitle, shall be credited by the 9
Administrator to a special fund. 10
(ii) The Administrator shall retain in the special fund at the end of 11
each fiscal year, from the proceeds received, an amount not to exceed $50,000, from which 12
sum the Administrator shall pay any claim allowed under this title. 13
(2) After deducting all costs incurred in administering this title from the 14
remaining net funds the Administrator shall distribute $8,000,000 to the Maryland Legal 15
Services Corporation Fund established under § 11–402 of the Human Services Article. 16
(3) (i) Subject to subparagraph (ii) of this paragraph, the Administrator 17
shall distribute all unclaimed money from judgments of restitution under Title 11, Subtitle 18
6 of the Criminal Procedure Article to the State Victims of Crime Fund established under 19
§ 11–916 of the Criminal Procedure Article to assist victims of crimes and delinquent acts 20
to protect the victims’ rights as provided by law. 21
(ii) If a victim entitled to restitution that has been treated as 22
abandoned property under § 11–614 of the Criminal Procedure Article is located after the 23
money has been distributed under this paragraph, the Administrator shall reduce the next 24
distribution to the State Victims of Crime Fund by the amount recovered by the victim. 25
(4) [For fiscal years 2022 and 2023, after making the distributions required 26
under paragraphs (2) and (3) of this subsection, the Administrator shall distribute $250,000 27
from the remaining net funds to the Tax Clinics for Low–Income Marylanders Fund 28
established under § 1–206 of the Tax – General Article. 29
(5) For fiscal year 2024, after] AFTER making the distributions required 30
under paragraphs (2)[,] AND (3)[, and (4)] of this subsection, the Administrator shall 31
distribute $14,000,000 from the remaining net funds to the Access to Counsel in Evictions 32
Special Fund under § 8–909 of the Real Property Article. 33
HOUSE BILL 1050 3
[(6)] (5) After making the distributions required under paragraphs (2), 1
(3), AND (4)[, and (5)] of this subsection, the Administrator shall distribute the remaining 2
net funds not retained under paragraph (1) of this subsection to the General Fund of the 3
State. 4
Article – Real Property 5
8–909. 6
(a) There is an Access to Counsel in Evictions Special Fund. 7
(b) The purpose of the Fund is to provide funding to fully implement access to 8
legal representation in evictions and other related proceedings in the State. 9
(c) MLSC shall administer the Fund. 10
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 11
the State Finance and Procurement Article. 12
(2) The State Treasurer shall hold the Fund separately, and the 13
Comptroller shall account for the Fund. 14
(e) The Fund consists of: 15
(1) Money received by the Division of Consumer Protection in the Office of 16
the Attorney General from any final settlement or agreement with or judgment against a 17
party relating to an investigation or enforcement of the Maryland Consumer Protection Act 18
for an unfair, abusive, or deceptive trade practice for rental residential property, excluding 19
any restitution and the costs of the action the Attorney General is entitled to recover; 20
(2) Money appropriated in the State budget to the Fund; 21
(3) Money distributed to the Fund under § 17–317 of the Commercial Law 22
Article; 23
(4) Interest earnings of the Fund; and 24
(5) Any other money from any other source accepted for the benefit of the 25
Fund. 26
(f) The Fund may be used only for: 27
(1) Services provided by a designated organization or activity by a 28
community group to implement the Program as provided in this subtitle, including all costs 29
associated with required legal representation in any proceeding and any outreach and 30
education activities; 31
4 HOUSE BILL 1050
(2) If a local jurisdiction enacts a program authorized under this subtitle, 1
services provided by the local jurisdiction to implement access to counsel in eviction 2
proceedings as provided for in this subtitle, including all costs associated with required 3
legal representation in any proceeding and any outreach and education activities; 4
(3) Administrative expenses of MLSC; and 5
(4) Expenses related to the study and evaluation of: 6
(i) Services and activities provided under this subtitle; and 7
(ii) Funding amounts and sources necessary to fully effectuate 8
access to counsel in eviction proceedings. 9
(g) (1) The State Treasurer shall invest the money of the Fund in the same 10
manner as other State money may be invested. 11
(2) Any interest earnings of the Fund shall be credited to the Fund. 12
(h) (1) Expenditures from the Fund may be made only in accordance with the 13
State budget. 14
(2) For EACH fiscal year [2024], the Governor shall include in the annual 15
budget bill an appropriation of $14,000,000 from the Fund to MLSC. 16
(i) Money expended from the Fund is supplemental to and is not intended to take 17
the place of funding that otherwise would be appropriated for civil legal services from any 18
other source. 19
Chapter 40 of the Acts of 2022 20
SECTION 2. AND BE IT FURTHER EN ACTED, That this Act shall take effect July 21
1, 2022. [It shall remain effective for a period of 2 years and 6 months and, at the end of 22
December 31, 2024, this Act, with no further action required by the General Assembly, shall 23
be abrogated and of no further force and effect.] 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
1, 2023. 26