EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0540*
SENATE BILL 540
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By: The President (By Request – Office of the Attorney General)
Introduced and read first time: February 3, 2023
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Human Relations – Civil Rights Enforcement – Powers of the Attorney General 2
FOR the purpose of authorizing the Attorney General to investigate, prosecute, and 3
remediate certain civil rights violations under certain circumstances and in a certain 4
manner; authorizing the Attorney General to intervene in certain causes of action 5
under certain circumstances; establishing certain penalties and authorizing the 6
Attorney General to obtain certain relief in certain civil actions, conciliation 7
agreements, and settlement agreements; authorizing the Attorney General to 8
recover certain investigation and litigation costs in a certain manner; establishing 9
the Civil Rights Enforcement Fund as a special, nonlapsing fund; requiring the 10
Attorney General to coordinate with the Maryland Commission on Civil Rights in 11
areas of overlapping jurisdiction; and generally relating to civil rights enforcement. 12
BY repealing and reenacting, without amendments, 13
Article – State Government 14
Section 20–101(a), (b), and (d) 15
Annotated Code of Maryland 16
(2021 Replacement Volume and 2022 Supplement) 17
BY adding to 18
Article – State Government 19
Section 20–1040 through 20–1048 to be under the new part “Part III. Enforcement 20
by the Attorney General” 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2022 Supplement) 23
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
That the Laws of Maryland read as follows: 25
Article – State Government 26
2 SENATE BILL 540
20–101. 1
(a) In Subtitles 1 through 11 of this title the following words have the meanings 2
indicated. 3
(b) “Commission” means the Commission on Civil Rights. 4
(d) “Discriminatory act” means an act prohibited under: 5
(1) Subtitle 3 of this title (Discrimination in Places of Public 6
Accommodation); 7
(2) Subtitle 4 of this title (Discrimination by Persons Licensed or Regulated 8
by Maryland Department of Labor); 9
(3) Subtitle 5 of this title (Discrimination in Leasing of Commercial 10
Property); 11
(4) Subtitle 6 of this title (Discrimination in Employment); 12
(5) Subtitle 7 of this title (Discrimination in Housing); or 13
(6) Subtitle 8 of this title (Aiding, Abetting, or Attempting Discriminatory 14
Act; Obstructing Compliance). 15
20–1038. RESERVED. 16
20–1039. RESERVED. 17
PART III. ENFORCEMENT BY THE ATTORNEY GENERAL. 18
20–1040. 19
(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 20
INDICATED. 21
(B) “ATTORNEY GENERAL” MEANS THE ATTORNEY GENERAL AND THE 22
OFFICE OF THE ATTORNEY GENERAL. 23
(C) (1) “CIVIL RIGHTS VIOLATIO N” MEANS AN ACT OF DISC RIMINATION 24
PROHIBITED UNDER THE U.S. CONSTITUTION, THE MARYLAND CONSTITUTION, OR 25
STATE OR FEDERAL LAW . 26
(2) “CIVIL RIGHTS VIOLATIO N” INCLUDES A DISCRIMIN ATORY ACT AS 27
DEFINED IN § 20–101 OF THIS TITLE. 28 SENATE BILL 540 3
20–1041. 1
(A) THE ATTORNEY GENERAL MAY INVESTIGATE , PROSECUTE, AND 2
REMEDIATE, ON BEHALF OF THE RES IDENTS OF THE STATE, ANY CONDUCT THAT 3
CONSTITUTES A CIVIL RIGHTS VIOLATION . 4
(B) THE ATTORNEY GENERAL MAY NOT BRING A CIVIL RIGHTS ACTION 5
UNDER THIS PART: 6
(1) ON BEHALF OF AN INDI VIDUAL; OR 7
(2) AGAINST A POLITICAL SUBDIVIS ION. 8
(C) NOTHING IN THIS PART MAY BE INTERPRE TED TO IMPAIR THE RIGHTS 9
AND POWERS OF THE COMMISSION UNDER THIS TITLE . 10
20–1042. 11
(A) IF THE ATTORNEY GENERAL HAS REASONABL E CAUSE TO BELIEVE 12
THAT A PERSON IS ENGAGED IN DISCRI MINATION PROHIBITED BY THE U.S. 13
CONSTITUTION, THE MARYLAND CONSTITUTION, OR STATE OR FEDERAL LAW, THE 14
ATTORNEY GENERAL MAY COMMENCE A CIVIL ACTION IN ACCORDANCE WITH THIS 15
PART. 16
(B) THE CIVIL ACTION SHALL B E INSTITUTED IN THE CIRCUIT COURT FOR 17
THE COUNTY WHERE: 18
(1) THE ALLEGED VIOLATOR RESIDES OR HAS A PRINCIPAL PLAC E OF 19
BUSINESS; OR 20
(2) THE ALLEGED VIOLATIO N OCCURRED . 21
20–1043. 22
(A) TO OBTAIN RELIEF WITH RESPECT TO AN ALLEGED CIVIL RIGHTS 23
VIOLATION, AN ACTION SHALL BE COMM ENCED NO T LATER THAN 3 YEARS AFTER 24
THE DISCOVERY, OCCURRENCE , OR TERMINATION , WHICHEVER OCCURS LAS T, OF 25
THE ALLEGED CIVIL RI GHTS VIOLATION . 26
(B) TO OBTAIN RELIEF WITH RESPECT TO AN ALLEGE D BREACH OF A 27
CONCILIATION OR SETTLEMENT AGREEMENT ENTERED IN TO UNDER THIS TITLE, AN 28 4 SENATE BILL 540
ACTION SHALL BE COMM ENCED NOT LATER THAN 3 YEARS AFTER THE DISC OVERY, 1
OCCURRENCE , OR TERMINATION OF TH E ALLEGED BREACH . 2
20–1044. 3
(A) BEFORE INITIATING A CIVIL A CTION, THE OFFICE OF THE ATTORNEY 4
GENERAL SHALL CONDUCT A PRELIMINARY INVEST IGATION TO DETERMINE 5
WHETHER THERE IS REASONABLE CAUSE TO BELIEVE THAT ANY PERSON 6
COMMITTED A CIVIL RIGHTS VIOLATI ON. 7
(B) DURING ANY EXAMINATIO N, INVESTIGATION , OR HEARING, THE OFFICE 8
OF THE ATTORNEY GENERAL MAY: 9
(1) SUBPOENA WITNESSES; 10
(2) ADMINISTER OATHS ; 11
(3) EXAMINE INDIVIDUAL S UNDER OATH ; AND 12
(4) COMPEL PRODUCTION OF RECORDS, BOOKS, PAPERS, 13
CONTRACTS, AND OTHER DOCUMENTS . 14
(C) INFORMATION OBTAINED UNDER A SUBPOENA DESCRIBED UNDER THIS 15
SECTION IS NOT ADMISSIBLE IN A LATER CRIMINAL PRO CEEDING AGAINST THE 16
PERSON WHO PROVIDES THE EVIDENCE . 17
(D) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 18
THE ATTORNEY GENERAL MAY COMMENCE A CIVIL ACTION UNDER THIS PART. 19
(2) IF THE ATTORNEY GENERAL OBTAINS A CONCILIATI ON OR 20
SETTLEMENT AGREEMENT UNDER THIS PART , NO ACTION MAY BE FIL ED UNDER 21
THIS PART WITH RESPECT TO THE ALLEGED CONDUCT THAT FORMS THE BASIS FOR 22
THE COMPLAINT COVERED BY THE AGREEMENT EXCEPT FOR THE PURPO SE OF 23
ENFORCING THE TERMS OF THE AGREEMENT . 24
(E) THE ATTORNEY GENERAL MAY INTERVENE IN A CIVIL ACTION 25
CONCERNING AN ALLEGED CIVIL RIGHTS VIOLATION, IF: 26
(1) THE ATTORNEY GENERAL CERTIFIES THA T THE CASE IS OF 27
GENERAL IMPORTANCE ; AND 28
(2) TIMELY APPLICATION I S MADE. 29
SENATE BILL 540 5
20–1045. 1
(A) THE ATTORNEY GENERAL MAY SEEK AN I NJUNCTION TO PROHIBI T A 2
PERSON THAT HAS ENGAGED OR IS ENGAGING IN A CIVIL RIGHTS VIOLATI ON, FROM 3
CONTINUING OR ENGAGI NG IN THE VIOLATION . 4
(B) IN A REQUEST FOR INJUNCTI VE RELIEF BROUGHT UN DER THIS 5
SECTION, THE ATTORNEY GENERAL IS NOT REQUIR ED TO: 6
(1) POST BOND; 7
(2) ALLEGE OR PROVE THAT AN ADEQUATE REMEDY A T LAW DOES 8
NOT EXIST; OR 9
(3) ALLEGE OR PROVE THAT SUBSTANTIAL OR IRREP ARABLE DAMAGE 10
WOULD RESULT FROM ANY CO NDUCT ALLEGED . 11
(C) THE OFFICE OF THE ATTORNEY GENERAL SHALL SERVE N OTICE OF 12
THE GENERAL RELIEF S OUGHT ON THE ALLEGED VIOLATOR AT LEAST 7 DAYS 13
BEFORE THE ACTION FO R AN INJUNCTION IS F ILED. 14
(D) THE COURT MAY ENTER A NY ORDER OF JUDGMENT NECESSARY T O: 15
(1) PREVENT THE USE BY A PERSON OF ANY PROHIB ITED PRACTICE; 16
(2) RESTORE TO A PERSON ANY MONEY , REAL PROPERTY , OR 17
PERSONAL PROPERTY AC QUIRED BY MEANS OF A NY PROHIBITED PRACTI CE; OR 18
(3) APPOINT A RECEIVER T O PREVENT WILLFUL VI OLATION OF THIS 19
TITLE. 20
20–1046. 21
(A) IN ANY CIVIL ACTION BROUGHT UNDER THIS P ART, OR ANY 22
CONCILIATION OR SETT LEMENT AGREEMENT ENTERED INTO UNDER T HIS PART, 23
THE ATTORNEY GENERAL MAY OBTAIN AS A REMEDY EQUITABLE R ELIEF, 24
INCLUDING: 25
(1) A PERMANENT INJUNCTION; 26
(2) A PRELIMINARY INJUNCTI ON; 27
(3) A TEMPORARY RESTRAININ G ORDER; OR 28 6 SENATE BILL 540
(4) ANY OTHER ORDER , INCLUDING: 1
(I) AN ORDER ENJOINING T HE DEFENDANT FROM EN GAGING IN 2
CIVIL RIGHTS VIOLATI ONS; OR 3
(II) AN ORDER REQUIRING ANY APPROPRIATE ACTION. 4
(B) (1) IN ANY CIVIL ACTION BROUGHT UNDER THIS P ART, OR ANY 5
CONCILIATION OR SETT LEMENT AGREEMENT ENTERED INTO UNDER T HIS PART, 6
THE ATTORNEY GENERAL MAY OBTAIN A CIVIL PENALTY TO VIN DICATE THE PUBLIC 7
INTEREST. 8
(2) A CIVIL PENALTY IMPOSE D UNDER THIS SUBSECTION SHALL BE IN 9
AN AMOUNT NOT EXCEEDING : 10
(I) $10,000 FOR A FIRST VIOLATION; OR 11
(II) $25,000 FOR A SECOND OR SUBSEQUENT VIOLATION ; 12
(3) THE FINES PROVIDED FO R IN THIS SUBSECTION : 13
(I) ARE CIVIL PENALTIES AND ARE RECOVERABLE BY THE 14
STATE IN A CIVIL ACTION; AND 15
(II) SHALL BE DEPOSITED I N THE CIVIL RIGHTS ENFORCEMENT 16
FUND ESTABLISHED UNDER § 20–1047 OF THIS PART. 17
(C) IN ANY CIVIL ACTION BROUGHT UNDER THIS P ART, OR ANY 18
CONCILIATION OR SETT LEMENT AGREEMENT ENTERED INTO UNDER T HIS PART, 19
THE ATTORNEY GENERAL MAY OBTAIN RE STITUTION, INCLUDING A REQUIREM ENT 20
THAT THE VIOLATOR OR ALLEGED VIOLATOR : 21
(1) REIMBURSE THE COSTS O F THE INVESTIGATION AND LITIGATION 22
TO THE ATTORNEY GENERAL AND THE COMMISSION; 23
(2) MAKE RESTITUTION TO A NY AGGRIEVED PERSON OF MONEY, 24
PROPERTY, OR ANY OTHER THING R ECEIVED FROM THE AGG RIEVED PERSON IN 25
CONNECTION WITH A VI OLATION OR AN ALLEGED VIOLATION OF THIS TITLE; 26
(3) PAY ECONOMIC DAMAGES TO AN AGGRIEVED PERS ON; OR 27
(4) POST A PERFORMANCE BOND OR OTH ER SECURITY. 28 SENATE BILL 540 7
20–1047. 1
(A) IN THIS SECTION, “FUND” MEANS THE CIVIL RIGHTS ENFORCEMENT 2
FUND. 3
(B) THERE IS A CIVIL RIGHTS ENFORCEMENT FUND. 4
(C) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDING FOR: 5
(1) CIVIL RIGHTS ENFORCE MENT ACTIVITIES OF THE ATTORNEY 6
GENERAL AND THE COMMISSION; AND 7
(2) EDUCATION AND OUTREA CH IN THE COMMUNITY RELATING TO 8
CIVIL RIGHTS VIOLATI ONS. 9
(D) (1) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 10
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREM ENT ARTICLE. 11
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 12
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 13
(E) THE FUND CONSISTS OF : 14
(1) CIVIL PENALTIES DEPO SITED INTO THE FUND UNDER § 20–1046 15
OF THIS PART; 16
(2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 17
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 18
THE BENEFIT OF THE FUND. 19
(F) THE FUND MAY BE USED ONLY: 20
(1) TO REIMBURSE THE ATTORNEY GENERAL AND THE COMMISSION 21
FOR COSTS ASSOCIATED WIT H INVESTIGATING AND PROSECUTING CIVIL RIGHTS 22
VIOLATIONS; AND 23
(2) EDUCATION AND OUTREA CH IN THE COMMUNITY RELATING TO 24
CIVIL RIGHTS VIOLATI ONS. 25
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 26
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 27 8 SENATE BILL 540
(2) INTEREST EARNINGS OF T HE FUND SHALL BE CREDITE D TO THE 1
GENERAL FUND OF THE STATE. 2
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 3
WITH THE STATE BUDGET . 4
(I) MONEY OF THE FUND IS NOT SUBJECT T O TRANSFER BY BUDGET 5
AMENDMENT . 6
(J) MONEY EXPENDED FROM T HE FUND FOR THE ENFORCEM ENT 7
ACTIVITIES OF THE ATTORNEY GENERAL AND THE COMMISSION IS SUPPLEM ENTAL 8
TO AND IS NOT INTEND ED TO TAKE THE PLACE OF FUNDING THAT WOUL D 9
OTHERWISE BE APPROPR IATED FOR THE ATTORNEY GENERAL OR THE 10
COMMISSION. 11
20–1048. 12
(A) IN AREAS OF OVERLAPPI NG JURISDICTION , THE ATTORNEY GENERAL 13
AND THE COMMISSION SHALL COOR DINATE REFERRALS TO MINIMIZE DUPLICATION 14
OF EFFORT AND PROMOT E COLLABORATION . 15
(B) (1) THE ATTORNEY GENERAL, IN COORDINATION WITH THE 16
COMMISSION, SHALL ADOPT REGULATIONS TO IMPLE MENT THIS SECTION . 17
(2) THE ATTORNEY GENERAL SHALL PUBLISH PROPOSED 18
REGULATIONS UNDER TH IS SUBSECTION FOR NOTICE AND COMME NT ON OR BEFORE 19
JULY 1, 2024. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
October 1, 2023. 22