WES MOORE, Governor Ch. 316
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Chapter 316
(House Bill 236)
AN ACT concerning
Tax Sales – State Tax Sale Ombudsman Homeowner Protection Program –
Outreach Campaign
FOR the purpose of requiring the State Tax Sale Ombudsman to contract with a vendor to
conduct an annual outreach campaign to homeowners in tax sale; requiring the
outreach campaign to consist of making telephone calls to each homeowner whose
dwelling is sold at a tax sale to inform the homeowner of the assistance available to
the homeowner through the Ombudsman’s office; authorizing the State Department
of Assessments and Taxation and the vendor to use any reliable public or private
source of information to compile the list of homeowners the vendor is required to call
and those homeowners’ telephone numbers; providing that the Homeowner
Protection Fund is the exclusive source of funding for the outreach campaign;
expressing the intent of the General Assembly that a certain portion of the balance
in the Homeowner Protection Fund be spent each year to conduct outreach in a
certain manner to homeowners in tax sale to encourage the homeowners to enroll in
the Homeowner Protection Program; authorizing the State Tax Sale Ombudsman to
conduct outreach using State employees and resources or contract with a private
vendor to conduct outreach; requiring that certain State and local government
agencies provide certain information to facilitate outreach at the request of the
Ombudsman; and generally relating to tax sales.
BY adding to
Article – Tax – Property
Section 2–113
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 14–891 14–880 and 14–886
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Tax – Property
2–113.
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(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANI NGS
INDICATED.
(2) “HOMEOWNER ” HAS THE MEANING STAT ED IN § 9–105 OF THIS
ARTICLE.
(3) “OMBUDSMAN ” MEANS THE STATE TAX SALE OMBUDSMAN
ESTABLISHED UNDER § 2–112 OF THIS SUBTITLE.
(4) “TELEPHONE NUMBER ” INCLUDES A LANDLINE OR MOB ILE
TELEPHONE NUMBER .
(5) “VENDOR” MEANS THE PRIVATE EN TITY CONTRACTED BY T HE
OMBUDSMAN TO CARRY OU T THIS SECTION.
(B) THE OMBUDSMAN SHALL CONTR ACT WITH A VENDOR TO CONDUCT AN
ANNUAL OUTREACH CAMP AIGN TO HOMEOWNERS I N TAX SALE IN ACCORD ANCE
WITH THIS SECTION .
(C) (1) THE OUTREACH CAMPAIGN SHALL CONSIST OF MAK ING
TELEPHONE CALLS TO E ACH HOMEOWNER WHOSE DWELLING IS SOLD AT A TAX SALE
TO INFORM THE HOMEOW NER OF THE ASSISTANC E AVAILABLE TO THE H OMEOWNER
THROUGH THE OMBUDSMAN ’S OFFICE.
(2) EACH CALL SHALL BE MA DE BY A LIVE HUMAN C ALLER AND MAY
NOT BE PRERECORDED O R AUTOMATED .
(3) THE VENDOR MUST CONTI NUE TO PLACE SEPARAT E CALLS TO
EACH HOMEOWNER WITH INTERVALS OF AT LEAS T 2 DAYS BETWEEN EACH CA LL
UNTIL THE VENDOR HAS EITHER:
(I) HAD A CONVERSATION DIREC TLY WITH THE HOMEOWN ER;
OR
(II) MADE AT LEAST THREE SEPARATE CALLS TO TH E
HOMEOWNER .
(4) THE CALLS TO EACH HOM EOWNER SHALL BE MADE :
(I) AS SOON AS POSSIBLE AFTER THE HOMEOWNER ’S
DWELLING IS SOLD AT A TAX SALE; AND
WES MOORE, Governor Ch. 316
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(II) BEFORE THE HOLDER OF THE CERTIFICATE OF S ALE FOR
THE HOMEOWNER ’S DWELLING MAY FILE A COMPLAINT TO FOREC LOSE THE
HOMEOWNER ’S RIGHT TO REDEEM TH E DWELLING UNDER § 14–833 OF THIS
ARTICLE.
(5) DURING EACH CALL , THE CALLER SHALL :
(I) PROVIDE A BRIEF SUMMARY OF THE ASSIS TANCE
AVAILABLE THROUGH TH E OMBUDSMAN ’S OFFICE, INCLUDING THE HOMEOW NERS’
TAX CREDIT AND THE HOMEOWNER PROTECTION PROGRAM; AND
(II) EXPLAIN TO THE HOMEO WNER WHY IT IS IN TH E
HOMEOWNER ’S INTEREST TO WORK W ITH THE OMBUDSMAN .
(6) THE CALLER MAY LEAVE THE INFORMATION REQU IRED UNDER
PARAGRAPH (5) OF THIS SUBSECTION I N A VOICEMAIL MESSAG E BUT SHALL MAKE
SUBSEQUENT CALLS IN AN EFFORT TO SPEAK T O THE HOMEOWNER DIRE CTLY IF
REQUIRED UNDER PARAG RAPH (3) OF THIS SUBSECTION .
(7) (I) IF THE CALLER SPEAKS TO THE HOMEOWNER , THE CALLER
SHALL OFFER TO TRANS FER THE HOMEOWNER DI RECTLY TO THE OMBUDSMAN ’S
OFFICE FOR ASSISTANC E AFTER PROVIDING TH E INFORMATION REQUIR ED UNDER
PARAGRAPH (5) OF THIS SUBSECTION .
(II) IF THE CALLER LEAVES A VOICEMA IL MESSAGE FOR THE
HOMEOWNER OR IF THE HOMEOWNER DECLINES T O BE TRANSFERRED DIR ECTLY TO
THE OMBUDSMAN ’S OFFICE, THE CALLER SHALL PRO VIDE THE HOMEOWNER W ITH
THE OMBUDSMAN ’S WEBSITE ADDRESS , E–MAIL ADDRESS , AND TELEPHONE
NUMBER.
(D) (1) THE DEPARTMENT AND THE VENDOR MAY USE A NY RELIABLE
PUBLIC OR PRIVATE SO URCE OF INFORMATION TO COMPILE THE LIST OF
HOMEOWNERS THE VENDO R IS REQUIRED TO CAL L UNDER THIS SECTION AND
THOSE HOMEOWNERS ’ TELEPHONE NUMBERS .
(2) AT THE REQUEST OF THE DEPARTMENT OR THE VEN DOR, EACH
STATE OR LOCAL GOVERN MENT AGENCY SHALL PR OMPTLY PROVIDE ANY
INFORMATION REQUIRED TO CARRY OUT THIS SE CTION.
(3) PROMPTLY AFTER EACH C OUNTY TAX SALE , THE COLLECTOR
SHALL PROVIDE THE DEPARTMENT OR VENDOR WITH THE LIST OF HOM EOWNERS
WHOSE DWELLINGS WERE SOLD AT THE TAX SALE .
Ch. 316 2023 LAWS OF MARYLAND
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(4) NOTWITHSTANDING § 13–202 OF THE TAX–GENERAL ARTICLE,
AT THE REQUEST OF TH E DEPARTMENT OR VENDOR , THE COMPTROLLER SHALL
PROVIDE THE TELEPHON E NUMBER OF A HOMEOW NER THE VENDOR IS RE QUIRED
TO CALL UNDER THIS S ECTION IF THE HOMEO WNER INCLUDED THE HO MEOWNER’S
TELEPHONE NUMBER ON A TAX RETURN FILED W ITH THE COMPTROLLER .
(5) THE DEPARTMENT OR VENDOR MAY PURCHASE TELEPHO NE
NUMBERS OF HOMEOWNER S FROM A PRIVATE SOU RCE TO CARRY OUT THI S SECTION.
(E) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS
SECTION.
14–891.
(a) In this section, “Fund” means the Homeowner Protection Fund.
(b) There is a Homeowner Protection Fund.
(c) The purpose of the Fund is to finance the Program AND THE OUTREACH
CAMPAIGN UNDER § 2–113 OF THIS ARTICLE .
(d) The Department shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of
the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the
Comptroller shall account for the Fund.
(f) The Fund consists of:
(1) tax and interest payments made to the Department by homeowners
enrolled in the Program;
(2) money appropriated in the State budget to the Fund;
(3) interest earnings; and
(4) any other money from any other source accepted for the benefit of the
Fund.
(g) For each of fiscal years 2023, 2024, and 2025, the Governor shall include in
the annual budget bill an appropriation of $750,000 to the Fund.
WES MOORE, Governor Ch. 316
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(h) (1) The Fund may be used only for any expenses associated with the
Program AND THE OUTREACH CAM PAIGN UNDER § 2–113 OF THIS ARTICLE .
(2) The Fund may not be used for any expenses of the office of the State
Tax Sale Ombudsman that are not directly related to the Program OR THE OUTREACH
CAMPAIGN UNDER § 2–113 OF THIS ARTICLE .
(i) (1) The State Treasurer shall invest the money of the Fund in the same
manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(j) Expenditures from the Fund may be made only in accordance with the State
budget.
(k) The Fund is the exclusive source of funding for the Program AND THE
OUTREACH CAMPAIGN UN DER § 2–113 OF THIS ARTICLE .
14–880.
(a) Each year, the Department shall issue a report that includes:
(1) an analysis and summary of the information collected through the
survey under § 14–879 of this part; and
(2) the following information concerning the activities of the State Tax Sale
Ombudsman established under § 2–112 of this article in the preceding taxable year:
(i) the number of homeowners who contacted the Ombudsman;
(ii) the number of homeowners assisted by the Ombudsman to apply
for each of the tax credits under § 9–104 or § 9–105 of this article;
(iii) the number of homeowners assisted by the Ombudsman to apply
for other discount programs or public benefits and a brief summary of those programs and
benefits;
(iv) the number of homeowners referred by the Ombudsman to legal
services, housing counseling, and other social services, and a brief summary of those
services;
(v) the number of homeowners enrolled in the Homeowner
Protection Program under Part VII of this subtitle;
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(vi) a summary of the implementation of the Homeowner Protection
Program under Part VII of this subtitle, INCLUDING OUTREACH T O HOMEOWNERS
UNDER § 14–886(D) OF THIS SUBTITLE ;
(vii) any statutory or administrative changes the Ombudsman
recommends to improve the administration of the Homeowner Protection Program under
Part VII of this subtitle; and
(viii) any other relevant information.
(b) On or before November 15 each year, the Department shall:
(1) publish the report required under subsection (a) of this section on the
Department’s website; and
(2) submit the report required under subsection (a) of this section, in
accordance with § 2–1257 of the State Government Article, to the Senate Budget and
Taxation Committee and the House Committee on Ways and Means.
14–886.
(a) A homeowner shall submit an application to the Department to be enrolled in
the Program.
(b) A homeowner may submit an application for the Program online or by mail.
(c) The Ombudsman shall:
(1) prominently advertise the Program and make applications available on
the Ombudsman’s website; and
(2) collaborate with local governments, community organizations, and
public and private providers of social services and benefits to raise awareness of the
Program and disseminate applications.
(D) (1) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT:
(I) AT LEAST 2% OF THE BALANCE IN TH E HOMEOWNER
PROTECTION FUND ESTABLISHED UNDE R § 14–891 OF THIS SUBTITLE BE SPENT
EACH YEAR TO CONDUCT OUTREACH TO HOMEOWNE RS IN TAX SALE TO EN COURAGE
THE HOMEOWNERS TO EN ROLL IN THE PROGRAM;
(II) THE OUTREA CH CONSIST OF:
WES MOORE, Governor Ch. 316
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1. LIVE TELEPHONE CALLS TO HOMEOWNERS
WHENEVER PRACTICABLE ; OR
2. IF LIVE TELEPHONE CA LLS ARE NOT PRACTICA BLE,
METHODS OF CONTACTIN G HOMEOWNERS OTHER T HAN SENDING INFORMAT ION BY
MAIL; AND
(III) PRIORITY BE GIVEN TO CONTACTING HOMEOWNERS AS
SOON AS POSSIBLE AFT ER THEIR DWELLINGS A RE SOLD AT TAX SALE .
(2) THE OMBUDSMAN MAY :
(I) CONDUCT OUTREACH TO HOMEOWNERS USING STATE
EMPLOYEES AND RESOUR CES; OR
(II) CONTRACT WITH A PRIV ATE VENDOR TO CONDUC T
OUTREACH TO HOMEOWNE RS.
(3) AT THE REQUEST OF THE OMBUDSMAN :
(I) PROMPTLY AFTER EACH COUNTY TAX SALE , THE
COLLECTOR SHALL PROV IDE THE OMBUDSMAN WITH THE LI ST OF HOMEOWNERS
WHOSE DWELLINGS WERE SOLD AT THE TAX SALE ;
(II) NOTWITHSTANDING § 13–202 OF THE TAX – GENERAL
ARTICLE, THE COMPTROLLER SHALL PRO VIDE THE TELEPHONE N UMBER OF A
HOMEOWNER IF THE HOM EOWNER INCLUDED THE HOMEOWNER ’S TELEPHONE
NUMBER ON A TAX RETU RN FILED WITH THE COMPTROLLER ; AND
(III) ANY OTHER STATE OR LOCAL GOVERN MENT AGENCY SHALL
PROMPTLY PROVID E ANY INFORMATION RE QUIRED TO CONDUCT OU TREACH UNDER
THIS SUBSECTION .
(4) THE OMBUDSMAN MAY OBTAIN INFORMATION FROM ANY
RELIABLE PRIVATE SOU RCE TO CONDUCT OUTRE ACH UNDER THIS SUBSE CTION.
[(d)] (E) The Ombudsman shall cancel the enrollment of a homeowner in the
Program if:
(1) the homeowner submits a request to the Ombudsman to withdraw from
the Program;
(2) the homeowner submitted false information in the homeowner’s
application for enrollment in the Program; or Ch. 316 2023 LAWS OF MARYLAND
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(3) the Ombudsman determines that the homeowner is not acting in good
faith to pay the taxes due.
[(e)] (F) If the Ombudsman cancels the enrollment of a homeowner in the
Program, the Ombudsman shall send a notice of the cancellation to the homeowner that
includes the reasons for cancellation.
[(f)] (G) A homeowner’s enrollment in the Program ends on the earliest of:
(1) the date the homeowner pays the full amount of the taxes owed to the
Department;
(2) the date that is 3 years after the date the homeowner first enrolled in
the Program; or
(3) the date the homeowner’s enrollment in the Program is canceled under
subsection [(d)] (E) of this section.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2023.
Approved by the Governor, May 3, 2023.