EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 6, 2023
CHAPTER ______
AN ACT concerning 1
Tax Sales – State Tax Sale Ombudsman Homeowner Protection Program – 2
Outreach Campaign 3
FOR the purpose of requiring the State Tax Sale Ombudsman to contract with a vendor to 4
conduct an annual outreach campaign to homeowners in tax sale; requiring the 5
outreach campaign to consist of making telephone calls to each homeowner whose 6
dwelling is sold at a tax sale to inform the homeowner of the assistance available to 7
the homeowner through the Ombudsman’s office; authorizing the State Department 8
of Assessments and Taxation and the vendor to use any reliable public or private 9
source of information to compile the list of homeowners the vendor is required to call 10
and those homeowners’ telephone numbers; providing that the Homeowner 11
Protection Fund is the exclusive source of funding for the outreach campaign; 12
expressing the intent of the General Assembly that a certain portion of the balance 13
in the Homeowner Protection Fund be spent each year to conduct outreach in a 14
certain manner to homeowners in tax sale to encourage the homeowners to enroll in 15
the Homeowner Protection Program; authorizing the State Tax Sale Ombudsman to 16
conduct outreach using State employees and resources or contract with a private 17
vendor to conduct outreach; requiring that certain State and local government 18
agencies provide certain information to facilitate outreach at the request of the 19
Ombudsman; and generally relating to tax sales. 20
BY adding to 21
Article – Tax – Property 22
Section 2–113 23 2 HOUSE BILL 236
Annotated Code of Maryland 1
(2019 Replacement Volume and 2022 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Tax – Property 4
Section 14–891 14–880 and 14–886 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2022 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Tax – Property 10
2–113. 11
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 12
INDICATED. 13
(2) “HOMEOWNER ” HAS THE MEANING STAT ED IN § 9–105 OF THIS 14
ARTICLE. 15
(3) “OMBUDSMAN ” MEANS THE STATE TAX SALE OMBUDSMAN 16
ESTABLISHED UNDER § 2–112 OF THIS SUBTITLE. 17
(4) “TELEPHONE NUMBER ” INCLUDES A LANDLINE OR MOBILE 18
TELEPHONE NUMBER . 19
(5) “VENDOR” MEANS THE PRIVATE EN TITY CONTRACTED BY T HE 20
OMBUDSMAN TO CARRY OU T THIS SECTION. 21
(B) THE OMBUDSMAN SHALL CONTR ACT WITH A VENDOR TO CONDUCT AN 22
ANNUAL OUTREACH CAMP AIGN TO HOMEOWNERS I N TAX SALE IN ACCORD ANCE 23
WITH THIS SECTION . 24
(C) (1) THE OUTREACH CAMPAIGN SHALL CONSIST OF MAK ING 25
TELEPHONE CALLS TO E ACH HOMEOWNER WHOSE DWELLING IS SOLD AT A TAX SALE 26
TO INFORM THE HOMEOW NER OF THE ASSISTANC E AVAILABLE TO THE H OMEOWNER 27
THROUGH THE OMBUDSMAN ’S OFFICE. 28
(2) EACH CALL SHALL BE MA DE BY A LIVE HUMAN C ALLER AND MAY 29
NOT BE PRERECORDED O R AUTOMATED . 30
HOUSE BILL 236 3
(3) THE VENDOR MUST CONTI NUE TO PLACE SEPARAT E CALLS TO 1
EACH HOMEOWNER WITH INTERVALS OF AT LEAS T 2 DAYS BETWEEN EACH CA LL 2
UNTIL THE VENDOR HAS EITHER: 3
(I) HAD A CONVERSATION D IRECTLY WITH THE HOM EOWNER; 4
OR 5
(II) MADE AT LEAST THREE SEPARATE CALLS TO TH E 6
HOMEOWNER . 7
(4) THE CALLS TO EACH HOM EOWNER SHALL BE MADE : 8
(I) AS SOON AS POSSIBLE AFTER THE HOMEOWNER ’S 9
DWELLING IS SOLD AT A TAX SALE; AND 10
(II) BEFORE THE HOLDER OF THE CERTIFICATE OF S ALE FOR 11
THE HOMEOWNER ’S DWELLING MAY FILE A COMPLAINT TO FOREC LOSE THE 12
HOMEOWNER ’S RIGHT TO REDEEM TH E DWELLING UNDER § 14–833 OF THIS 13
ARTICLE. 14
(5) DURING EACH CALL , THE CALLER SHALL : 15
(I) PROVIDE A BRIEF SUMM ARY OF THE ASSISTANC E 16
AVAILABLE THROUGH TH E OMBUDSMAN ’S OFFICE, INCLUDING THE HOMEOW NERS’ 17
TAX CREDIT AND THE HOMEOWNER PROTECTION PROGRAM; AND 18
(II) EXPLAIN TO THE HOMEOWNER WHY IT IS IN THE 19
HOMEOWNER ’S INTEREST TO WORK W ITH THE OMBUDSMAN . 20
(6) THE CALLER MAY LEAVE THE INFORMATION REQU IRED UNDER 21
PARAGRAPH (5) OF THIS SUBSECTION I N A VOICEMAIL MESSAG E BUT SHALL MAKE 22
SUBSEQUENT CALLS IN AN EFFORT TO SPEAK T O THE HOMEOWNER DIRECTLY IF 23
REQUIRED UNDER PARAG RAPH (3) OF THIS SUBSECTION . 24
(7) (I) IF THE CALLER SPEAKS TO THE HOMEOWNER , THE CALLER 25
SHALL OFFER TO TRANS FER THE HOMEOWNER DI RECTLY TO THE OMBUDSMAN ’S 26
OFFICE FOR ASSISTANC E AFTER PROVIDING TH E INFORMATION R EQUIRED UNDER 27
PARAGRAPH (5) OF THIS SUBSECTION . 28
(II) IF THE CALLER LEAVES A VOICEMAIL MESSAGE FOR THE 29
HOMEOWNER OR IF THE HOMEOWNER DECLINES T O BE TRANSFERRED DIR ECTLY TO 30
THE OMBUDSMAN ’S OFFICE, THE CALLER SHALL PRO VIDE THE HOMEOWNER W ITH 31
THE OMBUDSMA N’S WEBSITE ADDRESS , E–MAIL ADDRESS , AND TELEPHONE 32
NUMBER. 33 4 HOUSE BILL 236
(D) (1) THE DEPARTMENT AND THE VE NDOR MAY USE ANY REL IABLE 1
PUBLIC OR PRIVATE SO URCE OF INFORMATION TO COMPILE THE LIST OF 2
HOMEOWNERS THE VENDO R IS REQUIRED TO CAL L UNDER THIS SECTION AND 3
THOSE HOMEOWNERS ’ TELEPHONE NUMBERS . 4
(2) AT THE REQUEST OF THE DEPARTMENT OR THE VEN DOR, EACH 5
STATE OR LOCAL GOVERN MENT AGENCY SHALL PR OMPTLY PROVIDE ANY 6
INFORMATION REQUIRED TO CARRY OUT THIS SE CTION. 7
(3) PROMPTLY AFTER EACH C OUNTY TAX SALE , THE COLLECTOR 8
SHALL PROVIDE THE DEPARTMENT OR VENDOR WITH THE LIST OF HOM EOWNERS 9
WHOSE DWELLINGS WERE SOLD AT THE TAX SALE . 10
(4) NOTWITHSTANDING § 13–202 OF THE TAX–GENERAL ARTICLE, 11
AT THE REQUEST OF TH E DEPARTMENT OR VENDOR , THE COMPTROLLER SHALL 12
PROVIDE THE TELEPHONE NUMBER OF A HOMEOWNER THE VEND OR IS REQUIRED 13
TO CALL UNDER THIS S ECTION IF THE HOMEOW NER INCLUDED THE HOM EOWNER’S 14
TELEPHONE NUMBER ON A TAX RETURN FILED W ITH THE COMPTROLLER . 15
(5) THE DEPARTMENT OR VENDOR MAY PURCHASE TELEPHO NE 16
NUMBERS OF HOMEOWNER S FROM A PRIVATE SOU RCE TO CARRY OUT THI S SECTION. 17
(E) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS 18
SECTION. 19
14–891. 20
(a) In this section, “Fund” means the Homeowner Protection Fund. 21
(b) There is a Homeowner Protection Fund. 22
(c) The purpose of the Fund is to finance the Program AND THE OUTREACH 23
CAMPAIGN UNDER § 2–113 OF THIS ARTICLE . 24
(d) The Department shall administer the Fund. 25
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 26
the State Finance and Procurement Article. 27
(2) The State Treasurer shall hold the Fund separately, and the 28
Comptroller shall account for the Fund. 29
(f) The Fund consists of: 30
HOUSE BILL 236 5
(1) tax and interest payments made to the Department by homeowners 1
enrolled in the Program; 2
(2) money appropriated in the State budget to the Fund; 3
(3) interest earnings; and 4
(4) any other money from any other source accepted for the benefit of the 5
Fund. 6
(g) For each of fiscal years 2023, 2024, and 2025, the Governor shall include in 7
the annual budget bill an appropriation of $750,000 to the Fund. 8
(h) (1) The Fund may be used only for any expenses associated with the 9
Program AND THE OUTREACH CAM PAIGN UNDER § 2–113 OF THIS ARTICLE . 10
(2) The Fund may not be used for any expenses of the office of the State 11
Tax Sale Ombudsman that are not directly related to the Program OR THE OUTREACH 12
CAMPAIGN UNDER § 2–113 OF THIS ARTICLE . 13
(i) (1) The State Treasurer shall invest the money of the Fund in the same 14
manner as other State money may be invested. 15
(2) Any interest earnings of the Fund shall be credited to the Fund. 16
(j) Expenditures from the Fund may be made only in accordance with the State 17
budget. 18
(k) The Fund is the exclusive source of funding for the Program AND THE 19
OUTREACH CAMPAIGN UN DER § 2–113 OF THIS ARTICLE . 20
14–880. 21
(a) Each year, the Department shall issue a report that includes: 22
(1) an analysis and summary of the information collected through the 23
survey under § 14–879 of this part; and 24
(2) the following information concerning the activities of the State Tax Sale 25
Ombudsman established under § 2–112 of this article in the preceding taxable year: 26
(i) the number of homeowners who contacted the Ombudsman; 27
(ii) the number of homeowners assisted by the Ombudsman to apply 28
for each of the tax credits under § 9–104 or § 9–105 of this article; 29
6 HOUSE BILL 236
(iii) the number of homeowners assisted by the Ombudsman to apply 1
for other discount programs or public benefits and a brief summary of those programs and 2
benefits; 3
(iv) the number of homeowners referred by the Ombudsman to legal 4
services, housing counseling, and other social services, and a brief summary of those 5
services; 6
(v) the number of homeowners enrolled in the Homeowner 7
Protection Program under Part VII of this subtitle; 8
(vi) a summary of the implementation of the Homeowner Protection 9
Program under Part VII of this subtitle, INCLUDING OUTREACH T O HOMEOWNERS 10
UNDER § 14–886(D) OF THIS SUBTITLE ; 11
(vii) any statutory or administrative changes the Ombudsman 12
recommends to improve the administration of the Homeowner Protection Program under 13
Part VII of this subtitle; and 14
(viii) any other relevant information. 15
(b) On or before November 15 each year, the Department shall: 16
(1) publish the report required under subsection (a) of this section on the 17
Department’s website; and 18
(2) submit the report required under subsection (a) of this section, in 19
accordance with § 2–1257 of the State Government Article, to the Senate Budget and 20
Taxation Committee and the House Committee on Ways and Means. 21
14–886. 22
(a) A homeowner shall submit an application to the Department to be enrolled in 23
the Program. 24
(b) A homeowner may submit an application for the Program online or by mail. 25
(c) The Ombudsman shall: 26
(1) prominently advertise the Program and make applications available on 27
the Ombudsman’s website; and 28
(2) collaborate with local governments, community organizations, and 29
public and private providers of social services and benefits to raise awareness of the 30
Program and disseminate applications. 31
(D) (1) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT : 32 HOUSE BILL 236 7
(I) AT LEAST 2% OF THE BALANCE IN TH E HOMEOWNER 1
PROTECTION FUND ESTABLISHED UNDE R § 14–891 OF THIS SUBTITLE BE SPENT 2
EACH YEAR TO CONDUCT OUTREACH TO HOMEOWNE RS IN TAX SALE TO EN COURAGE 3
THE HOMEOWNERS TO EN ROLL IN THE PROGRAM; 4
(II) THE OUTREACH CONSIST OF: 5
1. LIVE TELEPHONE CALLS TO HOMEOWNERS 6
WHENEVER PRACTICABLE ; OR 7
2. IF LIVE TELEPHONE CA LLS ARE NOT PRACTICA BLE, 8
METHODS OF CONTACTING HOMEOWNER S OTHER THAN SENDING INFORMATION BY 9
MAIL; AND 10
(III) PRIORITY BE GIVEN TO CONTACTING HOMEOWNER S AS 11
SOON AS POSSIBLE AFT ER THEIR DWELLINGS A RE SOLD AT TAX SALE . 12
(2) THE OMBUDSMAN MAY : 13
(I) CONDUCT OUTREACH TO HOMEOWNERS USING STATE 14
EMPLOYEES AND RESOUR CES; OR 15
(II) CONTRACT WITH A PRIV ATE VENDOR TO CONDUC T 16
OUTREACH TO HOMEOWNE RS. 17
(3) AT THE REQUEST OF THE OMBUDSMAN : 18
(I) PROMPTLY AFTER EACH COUNTY TAX SALE , THE 19
COLLECTOR SHALL PROV IDE THE OMBUDSMAN WITH THE LI ST OF HOMEOWNERS 20
WHOSE DWELLINGS WERE SOLD AT THE TAX SALE ; 21
(II) NOTWITHSTANDING § 13–202 OF THE TAX – GENERAL 22
ARTICLE, THE COMPTROLLER SHALL PRO VIDE THE TELEPHONE N UMBER OF A 23
HOMEOWNER IF THE HOM EOWNER INCLUDED THE HOMEOWNER ’S TELEPHONE 24
NUMBER ON A TAX RETU RN FILED WITH THE COMPTROLLER ; AND 25
(III) ANY OTHER STATE OR LOCAL GOVERN MENT AGENCY SHALL 26
PROMPTLY PROVIDE ANY INFORMATION REQUIRED TO CONDUCT OUTREACH UNDER 27
THIS SUBSECTION . 28
(4) THE OMBUDSMAN MAY OBTAIN INFORMATION FROM ANY 29
RELIABLE PRIVATE SOU RCE TO CONDUCT OUTRE ACH UNDER THIS SUBSE CTION. 30
8 HOUSE BILL 236
[(d)] (E) The Ombudsman shall cancel the enrollment of a homeowner in the 1
Program if: 2
(1) the homeowner submits a request to the Ombudsman to withdraw from 3
the Program; 4
(2) the homeowner submitted false information in the homeowner’s 5
application for enrollment in the Program; or 6
(3) the Ombudsman determines that the homeowner is not acting in good 7
faith to pay the taxes due. 8
[(e)] (F) If the Ombudsman cancels the enrollment of a homeowner in the 9
Program, the Ombudsman shall send a notice of the cancellation to the homeowner that 10
includes the reasons for cancellation. 11
[(f)] (G) A homeowner’s enrollment in the Program ends on the earliest of: 12
(1) the date the homeowner pays the full amount of the taxes owed to the 13
Department; 14
(2) the date that is 3 years after the date the homeowner first enrolled in 15
the Program; or 16
(3) the date the homeowner’s enrollment in the Program is canceled under 17
subsection [(d)] (E) of this section. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2023. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.