MD
Maryland Senate Bill SB193

Maryland 2023 Regular Session

Maryland Senate Bill SB193 Compare Versions

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1- WES MOORE, Governor Ch. 181
21
3-– 1 –
4-Chapter 181
5-(Senate Bill 193)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *sb0193*
89
9-Ground Leases – Collection of Rent, Interest, Fees, and Other Expenses –
10-Registration Requirements
10+SENATE BILL 193
11+N1 3lr1199
12+ CF HB 92
13+By: Senators Sydnor and Hayes
14+Introduced and read first time: January 20, 2023
15+Assigned to: Judicial Proceedings
16+Committee Report: Favorable
17+Senate action: Adopted
18+Read second time: February 24, 2023
1119
12-FOR the purpose of establishing that ground leases and amendments that are not posted
13-on the State Department of Assessments and Taxation’s website are not considered
14-registered; prohibiting a ground lease holder from collecting or attempting to collect
15-rent, late fees, interest, collection costs, and other expenses related to a ground lease
16-unless the ground lease is registered with the Department; establishing a process
17-within the Department to render decisions on the legality of efforts by a ground lease
18-holder to collect rent, late fees, interest, collection costs, and other expenses;
19-authorizing a ground lease holder or leasehold tenant to file suit in circuit court for
20-a certain judicial determination following a decision by the Department; requiring
21-the Department to develop and make available certain forms and post a certain
22-notice on its website; and generally relating to ground leases.
20+CHAPTER ______
2321
24-BY repealing and reenacting, with amendments,
25- Article – Real Property
26-Section 8–703 and 8–707
27- Annotated Code of Maryland
28- (2015 Replacement Volume and 2022 Supplement)
22+AN ACT concerning 1
2923
30- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
31-That the Laws of Maryland read as follows:
24+Ground Leases – Collection of Rent, Interest, Fees, and Other Expenses – 2
25+Registration Requirements 3
3226
33-Article – Real Property
27+FOR the purpose of establishing that ground leases and amendments that are not posted 4
28+on the State Department of Assessments and Taxation’s website are not considered 5
29+registered; prohibiting a ground lease holder from collecting or attempting to collect 6
30+rent, late fees, interest, collection costs, and other expenses related to a ground lease 7
31+unless the ground lease is registered with the Department; establishing a process 8
32+within the Department to render decisions on the legality of efforts by a ground lease 9
33+holder to collect rent, late fees, interest, collection costs, and other expenses; 10
34+authorizing a ground lease holder or leasehold tenant to file suit in circuit court for 11
35+a certain judicial determination following a decision by the Department; requiring 12
36+the Department to develop and make available certain forms and post a certain 13
37+notice on its website; and generally relating to ground leases. 14
3438
35-8–703.
39+BY repealing and reenacting, with amendments, 15
40+ Article – Real Property 16
41+Section 8–703 and 8–707 17
42+ Annotated Code of Maryland 18
43+ (2015 Replacement Volume and 2022 Supplement) 19
3644
37- (a) (1) The Department shall maintain an online registry of all properties that
38-are subject to ground leases.
45+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
46+That the Laws of Maryland read as follows: 21
3947
40- (2) The online registry shall:
48+Article – Real Property 22 2 SENATE BILL 193
4149
42- (i) Identify properties for which a renewal notice to preserve the
43-irredeemability of an irredeemable ground lease has been filed; and
4450
45- (ii) Include a clear notation of the expiration date for each renewal
46-notice.
47- Ch. 181 2023 LAWS OF MARYLAND
4851
49-– 2 –
50- (b) A GROUND LEASE OR AN A MENDMENT IS NOT REGI STERED UNTIL THE
51-GROUND LEASE OR AMEN DMENT IS POSTED ON T HE ONLINE REGISTRY .
52+8–703. 1
5253
53- (C) The Department is not responsible for the completeness or accuracy of the
54-contents of the online registry.
54+ (a) (1) The Department shall maintain an online registry of all properties that 2
55+are subject to ground leases. 3
5556
56-8–707.
57+ (2) The online registry shall: 4
5758
58- (A) If a ground lease is not registered in accordance with this subtitle, the ground
59-lease holder may not:
59+ (i) Identify properties for which a renewal notice to preserve the 5
60+irredeemability of an irredeemable ground lease has been filed; and 6
6061
61- (1) Collect OR ATTEMPT TO COLLEC T any ground rent payments [due
62-under], LATE FEES, INTEREST, COLLECTION COSTS , OR OTHER EXPENSES RE LATED
63-TO the ground lease;
62+ (ii) Include a clear notation of the expiration date for each renewal 7
63+notice. 8
6464
65- (2) Bring a civil action against the leasehold tenant to enforce any rights
66-the ground lease holder may have under the ground lease; or
65+ (b) A GROUND LEASE OR AN A MENDMENT IS NOT REGI STERED UNTIL THE 9
66+GROUND LEASE OR AMEN DMENT IS POSTED ON T HE ONLINE REGISTRY . 10
6767
68- (3) Bring an action against the leasehold tenant under Subtitle 8 of this
69-title.
68+ (C) The Department is not responsible for the completeness or accuracy of the 11
69+contents of the online registry. 12
7070
71- (B) (1) A LEASEHOLD TENANT WHO BELIEVES THAT A GROU ND LEASE
72-HOLDER HAS COLLECTED OR ATTEMPTED TO COLL ECT GROUND RENT PAYM ENT,
73-LATE FEES, INTEREST, COLLECTION COSTS , OR OTHER EXPENSES RE LATED TO THE
74-GROUND LEASE IN VIOLATI ON OF SUBSECTION (A)(1) OF THIS SECTION MAY SUBMIT
75-TO THE DEPARTMENT AN AFFIDAV IT STATING THE FACTU AL BASIS FOR THE
76-LEASEHOLD TENANT ’S BELIEF AND ANY DOC UMENTS IN SUPPORT OF THE
77-AFFIDAVIT.
71+8–707. 13
7872
79- (2) ON RECEIPT OF AN AFFI DAVIT AND ANY SUPP ORTING
80-DOCUMENTS SUBMITTED UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE
81-DEPARTMENT SHALL SEND NOTICE TO THE GROUND LEASE HOLDER THAT IS THE
82-SUBJECT OF THE SUBMI SSION STATING THAT :
73+ (A) If a ground lease is not registered in accordance with this subtitle, the ground 14
74+lease holder may not: 15
8375
84- (I) THE DEPARTMENT HAS RECEIV ED A SUBMISSION
85-ALLEGING THAT THE GR OUND LEASE HOLDER HAS VIOLAT ED SUBSECTION (A)(1) OF
86-THIS SECTION; AND
76+ (1) Collect OR ATTEMPT TO COLLEC T any ground rent payments [due 16
77+under], LATE FEES, INTEREST, COLLECTION COSTS , OR OTHER EXPENSES RE LATED 17
78+TO the ground lease; 18
8779
88- (II) THE RELEVANT GROUND L EASE REGISTRATION OR
89-AMENDMENT SUBMITTED TO THE DEPARTMENT BY THE GRO UND LEASE HOLDER
90-FOR THE PROPERTY IN QUESTION MAY BE VOID ED IN THE DEPARTMENT ’S RECORDS
91-UNLESS, WITHIN 45 DAYS AFTER THE NOTIC E, THE GROUND LEASE HOL DER SUBMITS
92-TO THE DEPARTMENT A COUNTER –AFFIDAVIT AND ANY DO CUMENTS IN SUPPORT O F WES MOORE, Governor Ch. 181
80+ (2) Bring a civil action against the leasehold tenant to enforce any rights 19
81+the ground lease holder may have under the ground lease; or 20
9382
94-– 3 –
95-THE COUNTER –AFFIDAVIT THAT SETS FORTH THE GROUND LEA SE HOLDER’S BELIEF
96-THAT ANY COLLECTION OR ATTEMPTED COLLECT ION DESCRIBED IN THE AFFIDAVI T
97-DID NOT VIOLATE SUBS ECTION (A)(1) OF THIS SECTION AND THE FACTUAL BASIS
98-FOR THAT BELIEF .
83+ (3) Bring an action against the leasehold tenant under Subtitle 8 of this 21
84+title. 22
9985
100- (3) NOTICE SENT TO THE GR OUND LEASE HOLDER UN DER
101-PARAGRAPH (2) OF THIS SUBSECTION S HALL:
86+ (B) (1) A LEASEHOLD TENANT WHO BELIEVES THAT A GROU ND LEASE 23
87+HOLDER HAS COLLECTED OR ATTEMPTED TO COLL ECT GROUND RENT PAYM ENT, 24
88+LATE FEES, INTEREST, COLLECTION COSTS , OR OTHER EXPENSES RE LATED TO THE 25
89+GROUND LEASE IN VIOL ATION OF SUBSECTION (A)(1) OF THIS SECTION MAY SUBMIT 26
90+TO THE DEPARTMENT AN AFFIDAV IT STATING THE FACTU AL BASIS FOR THE 27
91+LEASEHOLD TENANT ’S BELIEF AND ANY DOC UMENTS IN SUPPORT OF THE 28
92+AFFIDAVIT. 29
10293
103- (I) BE SENT BY CERTIFIED MAIL, RETURN RECEIPT
104-REQUESTED, AND BY FIRST –CLASS MAIL TO THE AD DRESS PROVIDED IN TH E
105-GROUND LEASE HOLDER ’S GROUND LEASE REGIS TRATION OR AMENDMENT , OR TO
106-ANY OTHER ADDRESS US ED BY THE GROUND LEA SE HOLDER KNOWN TO T HE
107-DEPARTMENT ; AND
94+ (2) ON RECEIPT OF AN AFFI DAVIT AND ANY SUPPOR TING 30
95+DOCUMENTS SUBMITT ED UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE 31 SENATE BILL 193 3
10896
109- (II) INCLUDE A COPY OF THE AFFIDAVIT AND ANY SUPPORTING
110-DOCUMENTS SUBMITTED BY THE LEASEHOLD TEN ANT TO THE DEPARTMENT .
11197
112- (C) (1) IF, AFTER REVIEWING ANY AFFIDAVITS, TIMELY SUBMITTED
113-COUNTER–AFFIDAVITS, AND ANY SUPPORTING D OCUMENTS, THE DEPARTMENT
114-REASONABLY BELIEVES THAT THE GROUND LEAS E HOLDER VIOLATED SUBSECTION
115-(A)(1) OF THIS SECTION, THE DEPARTMENT MAY MAKE A FINAL DECISION.
98+DEPARTMENT SHALL SEND NOTICE TO THE GROUND LEASE HOLDER THAT IS THE 1
99+SUBJECT OF THE SUBMI SSION STATING THAT : 2
116100
117- (2) FOLLOWING A DECISION MADE UNDER PARAGRAPH (1) OF THIS
118-SUBSECTION, THE DEPARTMENT SHALL PROM PTLY SEND TO ALL PER SONS WHO
119-SUBMITTED AFFIDAVITS AND COUNTER –AFFIDAVITS NOTICE OF THE DECISI ON.
101+ (I) THE DEPARTMENT HAS RECEIV ED A SUBMISSION 3
102+ALLEGING THAT THE GR OUND LEASE HOLDER HA S VIOLATED SUBSECTION (A)(1) OF 4
103+THIS SECTION; AND 5
120104
121- (3) NOTICE REQUIRED UNDER PARAGRAPH (2) OF THIS SUBSECTION
122-SHALL:
105+ (II) THE RELEVANT GROUND L EASE REGISTRATION OR 6
106+AMENDMENT SUBMITTED TO THE DEPARTMENT BY THE GRO UND LEASE HOLDER 7
107+FOR THE PROPERTY IN QUESTION MAY BE VOID ED IN THE DEPARTMENT ’S RECORDS 8
108+UNLESS, WITHIN 45 DAYS AFTER TH E NOTICE, THE GROUND LEASE HOL DER SUBMITS 9
109+TO THE DEPARTMENT A COUNTER –AFFIDAVIT AND ANY DO CUMENTS IN SUPPORT O F 10
110+THE COUNTER –AFFIDAVIT THAT SETS FORTH THE GROUND LEA SE HOLDER’S BELIEF 11
111+THAT ANY COLLECTION OR ATTEMPTED COLLECT ION DESCRIBED IN THE AFFIDAVIT 12
112+DID NOT VIOLATE SUBSEC TION (A)(1) OF THIS SECTION AND THE FACTUAL BASIS 13
113+FOR THAT BELIEF . 14
123114
124- (I) BE SENT BY CERTIFIED MAIL, RETURN RECEIPT
125-REQUESTED , AND BY FIRST–CLASS MAIL; AND
115+ (3) NOTICE SENT TO THE GR OUND LEASE HOLDER UN DER 15
116+PARAGRAPH (2) OF THIS SUBSECTION S HALL: 16
126117
127- (II) STATE THAT THE DEPARTMENT :
118+ (I) BE SENT BY CERTIFIED MAIL, RETURN RECEIPT 17
119+REQUESTED , AND BY FIRST–CLASS MAIL TO THE AD DRESS PROVIDED IN TH E 18
120+GROUND LEASE HOLDER ’S GROUND LEASE REGIS TRATION OR AMENDMENT , OR TO 19
121+ANY OTHER ADDRESS US ED BY THE GROUND LEA SE HOLDER KNOWN TO T HE 20
122+DEPARTMENT ; AND 21
128123
129- 1. REASONABLY BELIEVES T HAT THE GROUND LEASE
130-HOLDER HAS VIOLATED SUBSECTION (A)(1) OF THIS SECTION; AND
124+ (II) INCLUDE A COPY OF THE AFFIDAVIT AND ANY SU PPORTING 22
125+DOCUMENTS SUBMITTED B Y THE LEASEHOLD TENA NT TO THE DEPARTMENT . 23
131126
132- 2. MAY VOID A RELEVANT G ROUND LEASE
133-REGISTRATION OR AMEN DMENT IN THE DEPARTMENT ’S RECORDS UNLESS , WITHIN
134-45 DAYS AFTER THE DATE OF THE NOTICE, THE GROUND LEASE HOLDER FI LES AN
135-ACTION IN THE CIRCUI T COURT UNDER SUBSEC TION (E) OF THIS SECTION.
136- Ch. 181 2023 LAWS OF MARYLAND
127+ (C) (1) IF, AFTER REVIEWING ANY AFFIDAVITS, TIMELY SUBMITTED 24
128+COUNTER–AFFIDAVITS, AND ANY SUPPORTING D OCUMENTS, THE DEPARTMENT 25
129+REASONABLY BELIEVES THAT THE GROUND LEAS E HOLDER VIOLATED SU BSECTION 26
130+(A)(1) OF THIS SECTION, THE DEPARTMENT MAY MAKE A FINAL DECISION. 27
137131
138-– 4 –
139- (D) (1) IF, AFTER REVIEWING ANY AFFIDAVITS, TIMELY SUBMITTED
140-COUNTER–AFFIDAVITS, AND SUPPORTING DOCUM ENTS, THE DEPARTMENT
141-REASONABLY BELIEVES THAT THE GROUND LEA SE HOLDER DID NOT VI OLATE
142-SUBSECTION (A)(1) OF THIS SECTION , THE DEPARTMENT SHALL PROM PTLY SEND
143-TO ALL PERSONS WHO S UBMITTED AFFIDAVITS OR TIMELY FILED
144-COUNTER–AFFIDAVITS NOTICE OF THE DECISION.
132+ (2) FOLLOWING A DECISION MADE UNDER PARAGRAPH (1) OF THIS 28
133+SUBSECTION, THE DEPARTMENT SHALL PROM PTLY SEND TO ALL PER SONS WHO 29
134+SUBMITTED AFFIDAVITS AND COUNTER –AFFIDAVITS NOTICE OF THE DECISION. 30
145135
146- (2) NOTICE REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTI ON
147-SHALL:
136+ (3) NOTICE REQUIRED UNDER PARAGRAPH (2) OF THIS SUBSECTION 31
137+SHALL: 32
148138
149- (I) BE SENT BY CERTIFIED MAIL, RETURN RECEIPT
150-REQUESTED , AND BY FIRST–CLASS MAIL; AND
139+ (I) BE SENT BY CERTIFIED MAIL, RETURN RECEIPT 33
140+REQUESTED , AND BY FIRST–CLASS MAIL; AND 34 4 SENATE BILL 193
151141
152- (II) STATE THAT:
153142
154- 1. THE DEPARTMENT REASONABLY BELIEVES THAT THE
155-GROUND LEASE HOLDER DID NOT VIOLATE SUBS ECTION (A)(1) OF THIS SECTION ;
156-AND
157143
158- 2. THE DEPARTMENT WILL TAKE NO FURTHER ACTION
159-UNLESS, WITHIN 45 DAYS AFTER THE DATE OF THE NOTICE , THE LEASEHOLD
160-TENANT FILES AN ACTI ON IN THE CIRCUIT CO URT UNDER SUBSECTION (E) OF THIS
161-SECTION.
144+ (II) STATE THAT THE DEPARTMENT : 1
162145
163- (E) (1) FOLLOWING NOTICE OF A FINAL DECISION BY TH E DEPARTMENT
164-MADE UNDER THIS SECT ION, A GROUND LEASE HOLDE R OR A LEASEHOLD TEN ANT
165-MAY FILE AN ACTION I N THE CIRCUIT COURT .
146+ 1. REASONABLY BELIEVES T HAT THE GROUND LEASE 2
147+HOLDER HAS VIOLATED SU BSECTION (A)(1) OF THIS SECTION; AND 3
166148
167- (2) AN ACTION FILED UNDER THIS SUBSECTION SHAL L BE FILED:
149+ 2. MAY VOID A RELEVANT G ROUND LEASE 4
150+REGISTRATION OR AMEN DMENT IN THE DEPARTMENT ’S RECORDS UNLESS , WITHIN 5
151+45 DAYS AFTER THE DATE OF THE NOTICE, THE GROUND LEASE HOL DER FILES AN 6
152+ACTION IN THE CIR CUIT COURT UNDER SUB SECTION (E) OF THIS SECTION. 7
168153
169- (I) WITHIN 45 DAYS AFTER THE DATE OF NOTICE BY THE
170-DEPARTMENT ; AND
154+ (D) (1) IF, AFTER REVIEWING ANY AFFIDAVITS, TIMELY SUBMITTED 8
155+COUNTER–AFFIDAVITS, AND SUPPORTING DOCUM ENTS, THE DEPARTMENT 9
156+REASONABLY BELIEVES THAT THE GROUND LEAS E HOLDER DID NOT VIO LATE 10
157+SUBSECTION (A)(1) OF THIS SECTION , THE DEPARTMENT SHALL PROM PTLY SEND 11
158+TO ALL PERSONS WHO S UBMITTED AFFIDAVITS OR TIMELY FILED 12
159+COUNTER–AFFIDAVITS NOTICE OF THE DECISION. 13
171160
172- (II) 1. IN THE CIRCUIT COURT FOR THE COUNTY IN WH ICH
173-THE PETITIONER RESID ES; OR
161+ (2) NOTICE REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION 14
162+SHALL: 15
174163
175- 2. IF THE PERSON DOES NO T RESIDE IN THE STATE, IN
176-THE CIRCUIT COURT FO R THE COUNTY IN WHIC H THE PROPERTY SUBJE CT TO THE
177-GROUND LEASE IS LOCA TED.
164+ (I) BE SENT BY CERTIFIED MAIL, RETURN RECEIPT 16
165+REQUESTED , AND BY FIRST–CLASS MAIL; AND 17
178166
179- (3) AN ACTION FILED UNDER THIS SUBSECTION SHAL L BE HEARD DE
180-NOVO BY THE CIRCUIT COURT. WES MOORE, Governor Ch. 181
167+ (II) STATE THAT: 18
181168
182-– 5 –
169+ 1. THE DEPARTMENT REASONABLY BELIEVES THAT THE 19
170+GROUND LEASE HOLDER DID NOT VIOLATE SUBS ECTION (A)(1) OF THIS SECTION ; 20
171+AND 21
183172
184- (4) EACH PERSON WHO WAS S ENT A NOTICE UNDER S UBSECTION (C)
185-OR (D) OF THIS SECTION SHAL L BE A PARTY TO AN A CTION FILED UNDER TH IS
186-SUBSECTION.
173+ 2. THE DEPARTMENT WILL TAKE NO FURTHER ACTION 22
174+UNLESS, WITHIN 45 DAYS AFTER THE DATE OF THE NOTICE , THE LEASEHOLD 23
175+TENANT FILES AN ACTI ON IN THE CIRCUIT CO URT UNDER SUBSECTION (E) OF THIS 24
176+SECTION. 25
187177
188- (5) THE DEPARTMENT MAY N OT BE JOINED AS A PA RTY IN AN ACTION
189-UNDER THIS SUBSECTIO N.
178+ (E) (1) FOLLOWING NOTICE OF A FINAL DECISION BY TH E DEPARTMEN T 26
179+MADE UNDER THIS SECT ION, A GROUND LEASE HOLDE R OR A LEASEHOLD TEN ANT 27
180+MAY FILE AN ACTION I N THE CIRCUIT COURT . 28
190181
191- (F) (1) IF A COURT DETERMINES THAT A GROUND LEASE HOLDER HAS
192-VIOLATED SUBSECTION (A)(1) OF THIS SECTION:
182+ (2) AN ACTION FILED UNDER THIS SUBSECTION SHAL L BE FILED: 29
193183
194- (I) THE COURT SHALL ENTER AN ORDER REQUIRING T HE
195-DEPARTMENT TO VOID TH E APPROPRIATE GROUND LEASE REGISTR ATION OR
196-AMENDMENT IN THE DEPARTMENT ’S RECORDS;
184+ (I) WITHIN 45 DAYS AFTER THE DATE OF NOTICE BY THE 30
185+DEPARTMENT ; AND 31 SENATE BILL 193 5
197186
198- (II) THE PREVAILING PARTY SHALL PROVIDE A COPY OF THE
199-ORDER TO THE DEPARTMENT ; AND
200187
201- (III) THE DEPARTMENT SHALL PROM PTLY VOID THE
202-REGISTRATION OR AMEN DMENT AND ENTER A NO TATION IN THE DEPARTMENT ’S
203-RECORDS THAT THE REL EVANT GROUND LEASE R EGISTRATION OR AMEND MENT IS
204-VOID UNDER A COURT O RDER.
205188
206- (2) IF A COURT DETERMINES THAT THE GROUND LEAS E HOLDER HAS
207-NOT VIOLATED SUBSECT ION (A)(1) OF THIS SECTION:
189+ (II) 1. IN THE CIRCUIT COURT FOR THE COUNTY IN WH ICH 1
190+THE PETITIONER RESID ES; OR 2
208191
209- (I) THE COURT SHALL ENTER AN ORDER FINDING THAT TH E
210-COLLECTION OR ATTEMP TED COLLECTION THAT WAS THE SUBJECT OF T HE
211-COMPLAINT WAS NOT UN LAWFUL; AND
192+ 2. IF THE PERSON DOES NO T RESIDE IN THE STATE, IN 3
193+THE CIRCUIT COURT FO R THE COUNTY IN WHIC H THE PROPERTY SUBJE CT TO THE 4
194+GROUND LEASE IS LOCA TED. 5
212195
213- (II) THE PREVAILING PARTY SHALL PROVIDE A COPY OF THE
214-ORDER TO THE DEPARTMENT .
196+ (3) AN ACTION FILED UNDER THIS SUBSECTION SHAL L BE HEARD DE 6
197+NOVO BY THE CIRCUIT COURT. 7
215198
216- (G) (1) A GROUND LEASE HOLDER OR LEASEHOLD TENANT WHO FILES AN
217-ACTION UNDER SUBSECT ION (E) OF THIS SECTION SHAL L MAIL A COPY OF THE
218-COMPLAINT TO THE DEPARTMENT WITHIN 45 DAYS AFTER THE DATE OF NOTICE OF
219-DECISION ISSUED BY T HE DEPARTMENT .
199+ (4) EACH PERSON WHO WAS S ENT A NOTICE UNDER S UBSECTION (C) 8
200+OR (D) OF THIS SECTION SHAL L BE A PARTY TO AN A CTION FILED UNDER TH IS 9
201+SUBSECTION. 10
220202
221- (2) IF THE DEPARTMENT DOES NOT R ECEIVE A COPY OF A
222-COMPLAINT FILED UNDER SUBSECTION (E) OF THIS SECTION WITH IN 45 DAYS AFTER
223-THE DATE OF THE NOTI CE OF DECISION ISSUE D BY THE DEPARTMENT , THE
224-DEPARTMENT SHALL TAKE ACTION IN ACCORDANCE WITH ITS FINAL DECIS ION.
225- Ch. 181 2023 LAWS OF MARYLAND
203+ (5) THE DEPARTMENT MAY N OT BE JOINED AS A PA RTY IN AN ACTION 11
204+UNDER THIS SUBSECTIO N. 12
226205
227-– 6 –
228- (H) A GROUND LEASE REGISTR ATION OR AMENDMENT T HAT HAS BEEN
229-VOIDED BY THE DEPARTMENT UNDER THIS SECTION MAY NOT BE C ONSIDERED
230-REGISTERED.
206+ (F) (1) IF A COURT DETERMINES THAT A GROUND LEASE HOLDER HAS 13
207+VIOLATED SUBSECTION (A)(1) OF THIS SECTION: 14
231208
232- (I) THE DEPARTMENT SHALL INCL UDE NOTICE ON ALL GR OUND RENT
233-FORMS AND ON ITS WEB SITE IN SUBSTANTIALL Y THE FOLLOWING FORM :
209+ (I) THE COURT SHALL ENTER AN ORDER REQUIRING T HE 15
210+DEPARTMENT TO VOID TH E APPROPRIATE GROUND LEASE REGISTR ATION OR 16
211+AMENDMENT IN THE DEPARTMENT ’S RECORDS; 17
234212
235- “NOTICE REQUIRED BY LA W: A GROUND RENT LEASE HO LDER MAY NOT
236-COLLECT OR ATTEMPT T O COLLECT GROUND REN T, LATE FEES, INTEREST,
237-COLLECTION COSTS , OR ANY OTHER EXPENSE S RELATED TO A GROUN D LEASE THAT
238-IS NOT REGISTERED AN D POSTED ON THE DEPARTMENT ’S ONLINE GR OUND RENT
239-REGISTRY.”.
213+ (II) THE PREVAILING PARTY SHALL PROVIDE A COPY OF THE 18
214+ORDER TO THE DEPARTMENT ; AND 19
240215
241- (J) (1) THE DEPARTMENT SHALL DEVE LOP A FORM AFFIDAVIT AND A
242-FORM COUNTER –AFFIDAVIT THAT SHALL BE USED BY A LEASEHO LD TENANT AND
243-GROUND LEASE HOLDER , RESPECTIVELY , FOR SUBMISSIONS MADE TO THE
244-DEPARTMENT UNDER SUBS ECTION (B) OF THIS SECTION.
216+ (III) THE DEPARTMENT SHALL PROM PTLY VOID THE 20
217+REGISTRATION OR AMEN DMENT AND ENTER A NO TATION IN THE DEPARTMENT ’S 21
218+RECORDS THAT THE REL EVANT GROUND LEASE R EGISTRATION OR AMEND MENT IS 22
219+VOID UNDER A COURT O RDER. 23
245220
246- (2) THE FORM AFFIDAVIT AN D FORM COUNTER –AFFIDAVIT
247-DEVELOPED BY THE DEPARTMENT SHALL INCL UDE AN ACKNOWLEDGMEN T THAT
248-THE FORM IS BEING SI GNED UNDER PENALTY O F PERJURY.
221+ (2) IF A COURT DETERMINES THAT THE GROUND LEAS E HOLDER HAS 24
222+NOT VIOLATED SUBSECT ION (A)(1) OF THIS SECTION: 25
249223
250- (K) THE DEPARTMENT MAY NOT CH ARGE A FEE TO CARRY OUT THIS
251-SECTION.
224+ (I) THE COURT SHALL ENTER AN ORDER FINDING THA T THE 26
225+COLLECTION OR ATTEMP TED COLLECTION THAT WAS THE SUBJECT OF T HE 27
226+COMPLAINT WAS NOT UN LAWFUL; AND 28
252227
253- (L) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS
254-SECTION.
228+ (II) THE PREVAILING PARTY SHALL PROVIDE A COPY OF THE 29
229+ORDER TO THE DEPARTMENT . 30
230+ 6 SENATE BILL 193
255231
256- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
257-October 1, 2023.
258232
259-Approved by the Governor, April 24, 2023.
233+ (G) (1) A GROUND LEASE HOLDER OR LEASEHOLD TENANT WHO FILES AN 1
234+ACTION UNDER SUBSECT ION (E) OF THIS SECTION SHAL L MAIL A COPY OF THE 2
235+COMPLAINT TO THE DEPARTMENT WITHIN 45 DAYS AFTER THE DATE OF NOTICE OF 3
236+DECISION ISSUED B Y THE DEPARTMENT . 4
237+
238+ (2) IF THE DEPARTMENT DOES NOT R ECEIVE A COPY OF A 5
239+COMPLAINT FILED UNDE R SUBSECTION (E) OF THIS SECTION WITH IN 45 DAYS AFTER 6
240+THE DATE OF THE NOTI CE OF DECISION ISSUE D BY THE DEPARTMENT , THE 7
241+DEPARTMENT SHALL TAKE ACTION IN ACCORDANCE WITH ITS FINAL DECISI ON. 8
242+
243+ (H) A GROUND LEASE REGISTR ATION OR AMENDMENT T HAT HAS BEEN 9
244+VOIDED BY THE DEPARTMENT UNDER THIS SECTION MAY NOT BE C ONSIDERED 10
245+REGISTERED. 11
246+
247+ (I) THE DEPARTMENT SHALL INCL UDE NOTICE ON ALL GR OUND RENT 12
248+FORMS AND ON ITS WEB SITE IN SUBSTANTIALLY THE FOLLO WING FORM: 13
249+
250+ “NOTICE REQUIRED BY LA W: A GROUND RENT LEASE HO LDER MAY NOT 14
251+COLLECT OR ATTEMPT T O COLLECT GROUND REN T, LATE FEES, INTEREST, 15
252+COLLECTION COSTS , OR ANY OTHER EXPENSE S RELATED TO A GROUN D LEASE THAT 16
253+IS NOT REGISTERED AN D POSTED ON THE DEPARTMENT ’S ONLINE GROUND RENT 17
254+REGISTRY.”. 18
255+
256+ (J) (1) THE DEPARTMENT SHALL DEVE LOP A FORM AFFIDAVIT AND A 19
257+FORM COUNTER –AFFIDAVIT THAT SHALL BE USED BY A LEASEHO LD TENANT AND 20
258+GROUND LEASE HOLDER , RESPECTIVELY , FOR SUBMISSIONS MADE TO THE 21
259+DEPARTMENT UNDER SUBSECTION (B) OF THIS SECTION. 22
260+
261+ (2) THE FORM AFFIDAVIT AN D FORM COUNTER –AFFIDAVIT 23
262+DEVELOPED BY THE DEPARTMENT SHALL INCL UDE AN ACKNOWLEDGMEN T THAT 24
263+THE FORM IS BEING SI GNED UNDER PENALTY O F PERJURY. 25
264+
265+ (K) THE DEPARTMENT MAY NOT CH ARGE A FEE TO CA RRY OUT THIS 26
266+SECTION. 27
267+
268+ (L) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS 28
269+SECTION. 29
270+
271+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
272+October 1, 2023. 31
273+