EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0236* HOUSE BILL 236 Q1 3lr0701 By: Delegates Kaiser, Ebersole, Fair, Hill, McCaskill, McComas, Taveras, and Terrasa Introduced and read first time: January 23, 2023 Assigned to: Ways and Means A BILL ENTITLED AN ACT concerning 1 Tax Sales – State Tax Sale Ombudsman – Outreach Campaign 2 FOR the purpose of requiring the State Tax Sale Ombudsman to contract with a vendor to 3 conduct an annual outreach campaign to homeowners in tax sale; requiring the 4 outreach campaign to consist of making telephone calls to each homeowner whose 5 dwelling is sold at a tax sale to inform the homeowner of the assistance available to 6 the homeowner through the Ombudsman’s office; authorizing the State Department 7 of Assessments and Taxation and the vendor to use any reliable public or private 8 source of information to compile the list of homeowners the vendor is required to call 9 and those homeowners’ telephone numbers; providing that the Homeowner 10 Protection Fund is the exclusive source of funding for the outreach campaign; and 11 generally relating to tax sales. 12 BY adding to 13 Article – Tax – Property 14 Section 2–113 15 Annotated Code of Maryland 16 (2019 Replacement Volume and 2022 Supplement) 17 BY repealing and reenacting, with amendments, 18 Article – Tax – Property 19 Section 14–891 20 Annotated Code of Maryland 21 (2019 Replacement Volume and 2022 Supplement) 22 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23 That the Laws of Maryland read as follows: 24 Article – Tax–Property 25 2 HOUSE BILL 236 2–113. 1 (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 2 INDICATED. 3 (2) “HOMEOWNER ” HAS THE MEANING STATED IN § 9–105 OF THIS 4 ARTICLE. 5 (3) “OMBUDSMAN ” MEANS THE STATE TAX SALE OMBUDSMAN 6 ESTABLISHED UNDER § 2–112 OF THIS SUBTITLE. 7 (4) “TELEPHONE NUMBER ” INCLUDES A LANDLINE OR MOBILE 8 TELEPHONE NUMBER . 9 (5) “VENDOR” MEANS THE PRIVATE EN TITY CONTRACTED BY T HE 10 OMBUDSMAN TO CARRY OU T THIS SECTION. 11 (B) THE OMBUDSMAN SHALL CONTRACT WITH A VEND OR TO CONDUCT AN 12 ANNUAL OUTREACH CAMP AIGN TO HOMEOWNERS I N TAX SALE IN ACCORD ANCE 13 WITH THIS SECTION . 14 (C) (1) THE OUTREACH CAMPAIGN SHALL CONSIST OF MAK ING 15 TELEPHONE CALLS TO E ACH HOMEOWNER WHOSE DWEL LING IS SOLD AT A TAX SALE 16 TO INFORM THE HOMEOWNER OF THE ASSISTANCE AVAILABLE TO THE HOMEOWNER 17 THROUGH THE OMBUDSMAN ’S OFFICE. 18 (2) EACH CALL SHALL BE MA DE BY A LIVE HUMAN CALLER AND MAY 19 NOT BE PRERECORDED OR AUTOMATED . 20 (3) THE VENDOR MUST CONTINUE TO PLACE SEPARATE CALLS TO 21 EACH HOMEOWNER WITH INTERVALS OF AT LEAST 2 DAYS BETWEEN EACH CA LL 22 UNTIL THE VENDOR HAS EITHER: 23 (I) HAD A CONVERSATION DIRECTLY WITH THE HOMEOWNER ; 24 OR 25 (II) MADE AT LEAST THREE SEPARATE CALLS TO TH E 26 HOMEOWNER . 27 (4) THE CALLS TO EACH HOMEOWNER SHALL BE MADE : 28 (I) AS SOON AS POSSIBLE AFTER THE HOMEOWNER ’S 29 DWELLING IS SOLD AT A TAX SALE; AND 30 HOUSE BILL 236 3 (II) BEFORE THE HOLDER OF THE CERTIFICATE OF SALE FOR 1 THE HOMEOWNER ’S DWELLING MAY FILE A COMPLAINT TO FORECLOSE THE 2 HOMEOWNER ’S RIGHT TO REDEEM TH E DWELLING UNDER § 14–833 OF THIS 3 ARTICLE. 4 (5) DURING EACH CALL , THE CALLER SHALL : 5 (I) PROVIDE A BRIEF SUMM ARY OF THE ASSISTANCE 6 AVAILABLE THROUGH TH E OMBUDSMAN ’S OFFICE, INCLUDING THE HOMEOWNERS ’ 7 TAX CREDIT AND THE HOMEOWNER PROTECTION PROGRAM; AND 8 (II) EXPLAIN TO THE HOMEO WNER WHY IT IS IN THE 9 HOMEOWNER ’S INTEREST TO WORK WIT H THE OMBUDSMAN . 10 (6) THE CALLER MAY LEAVE THE INFORMATION REQUIRED UNDER 11 PARAGRAPH (5) OF THIS SUBSECTION I N A VOICEMAIL MESSAG E BUT SHALL MAKE 12 SUBSEQUENT CALLS IN AN EFFORT TO SPEAK T O THE HOMEOWNER DIRE CTLY IF 13 REQUIRED UNDER PARAG RAPH (3) OF THIS SUBSECTION . 14 (7) (I) IF THE CALLER SPEAK S TO THE HOMEOWNER , THE CALLER 15 SHALL OFFER TO TRANSFER TH E HOMEOWNER DIRECTLY TO THE OMBUDSMAN ’S 16 OFFICE FOR ASSISTANCE AFTER PROVIDING THE INFORMATION REQUIRED UNDER 17 PARAGRAPH (5) OF THIS SUBSECTION . 18 (II) IF THE CALLER LEAV ES A VOICEMAIL MESSAGE FOR THE 19 HOMEOWNER OR IF THE HOMEOWNER DECLINES T O BE TRANSFERRED DIR ECTLY TO 20 THE OMBUDSMAN ’S OFFICE, THE CALLER SHALL PROVIDE THE HO MEOWNER WITH 21 THE OMBUDSMAN ’S WEBSITE ADDRESS , E–MAIL ADDRESS , AND TELEPHONE 22 NUMBER. 23 (D) (1) THE DEPARTMENT AND THE VE NDOR MAY USE ANY REL IABLE 24 PUBLIC OR PRIVATE SO URCE OF INFORMATION TO COMPILE THE LIST OF 25 HOMEOWNERS THE VENDOR IS REQUIR ED TO CALL UNDER THI S SECTION AND 26 THOSE HOMEOWNERS ’ TELEPHONE NUMBERS . 27 (2) AT THE REQUEST OF THE DEPARTMENT OR THE VENDOR , EACH 28 STATE OR LOCAL GOVERNMENT AGE NCY SHALL PROMPTLY P ROVIDE ANY 29 INFORMATION REQUIRED TO CARRY OUT THIS SE CTION. 30 (3) PROMPTLY AFTER EACH C OUNTY TAX SALE , THE COLLECTOR 31 SHALL PROVIDE THE DEPARTMENT OR VENDOR WITH THE LIST OF HOM EOWNERS 32 WHOSE DWELLINGS WERE SOLD AT THE TAX SALE . 33 4 HOUSE BILL 236 (4) NOTWITHSTANDING § 13–202 OF THE TAX–GENERAL ARTICLE, 1 AT THE REQUEST OF THE DEPARTMENT O R VENDOR, THE COMPTROLLER SHALL 2 PROVIDE THE TELEPHONE NUMBER OF A HOMEOWNER THE VENDOR IS REQUIR ED 3 TO CALL UNDER THIS S ECTION IF THE HOMEOW NER INCLUDED THE HOMEOWNER ’S 4 TELEPHONE NUMBER ON A TAX RETURN FILED WITH THE COMPTROLLER . 5 (5) THE DEPARTMENT OR VENDOR MAY PURCHASE TELEPHONE 6 NUMBERS OF HOMEOWNER S FROM A PRIVATE SOURC E TO CARRY OUT THIS SECTION. 7 (E) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS 8 SECTION. 9 14–891. 10 (a) In this section, “Fund” means the Homeowner Protection Fund. 11 (b) There is a Homeowner Protection Fund. 12 (c) The purpose of the Fund is to finance the Program AND THE OUTREACH 13 CAMPAIGN UNDER § 2–113 OF THIS ARTICLE . 14 (d) The Department shall administer the Fund. 15 (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 16 the State Finance and Procurement Article. 17 (2) The State Treasurer shall hold the Fund separately, and the 18 Comptroller shall account for the Fund. 19 (f) The Fund consists of: 20 (1) tax and interest payments made to the Department by homeowners 21 enrolled in the Program; 22 (2) money appropriated in the State budget to the Fund; 23 (3) interest earnings; and 24 (4) any other money from any other source accepted for the benefit of the 25 Fund. 26 (g) For each of fiscal years 2023, 2024, and 2025, the Governor shall include in 27 the annual budget bill an appropriation of $750,000 to the Fund. 28 HOUSE BILL 236 5 (h) (1) The Fund may be used only for any expenses associated with the 1 Program AND THE OUTREACH CAM PAIGN UNDER § 2–113 OF THIS ARTICLE. 2 (2) The Fund may not be used for any expenses of the office of the State 3 Tax Sale Ombudsman that are not directly related to the Program OR THE OUTREACH 4 CAMPAIGN UNDER § 2–113 OF THIS ARTICLE . 5 (i) (1) The State Treasurer shall invest the money of the Fund in the same 6 manner as other State money may be invested. 7 (2) Any interest earnings of the Fund shall be credited to the Fund. 8 (j) Expenditures from the Fund may be made only in accordance with the State 9 budget. 10 (k) The Fund is the exclusive source of funding for the Program AND THE 11 OUTREACH CAMPAIGN UN DER § 2–113 OF THIS ARTICLE . 12 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13 October 1, 2023. 14