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Maryland House Bill HB451

Maryland 2024 Regular Session

Maryland House Bill HB451 Compare Versions

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1- WES MOORE, Governor Ch. 727
21
3-– 1 –
4-Chapter 727
5-(House Bill 451)
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+ *hb0451*
89
9-Tax Assistance for Low–Income Marylanders – Funding
10+HOUSE BILL 451
11+Q7 4lr1799
12+ CF SB 676
13+By: The Speaker (By Request – Office of the Comptroller)
14+Introduced and read first time: January 22, 2024
15+Assigned to: Ways and Means
16+Committee Report: Favorable with amendments
17+House action: Adopted
18+Read second time: March 5, 2024
1019
11-FOR the purpose of requiring the Comptroller, beginning in a certain fiscal year, to
12-distribute a certain amount of abandoned property funds to the Tax Clinics for
13-Low–Income Marylanders Fund; requiring the Governor to include a certain amount
14-of funding in the annual budget for the CASH Campaign of Maryland to award
15-grants for providing certain tax assistance through certain on–demand and mobile
16-tax clinics; requiring certain grant recipients tax clinics to interact with the CASH
17-Campaign in a certain manner for a certain purpose; and generally relating to tax
18-assistance for low–income Marylanders.
20+CHAPTER ______
1921
20-BY repealing and reenacting, with amendments,
21- Article – Commercial Law
22-Section 17–317
23- Annotated Code of Maryland
24- (2013 Replacement Volume and 2023 Supplement)
22+AN ACT concerning 1
2523
26-BY repealing and reenacting, with amendments,
27- Article – Human Services
28-Section 6–801
29- Annotated Code of Maryland
30- (2019 Replacement Volume and 2023 Supplement)
24+Tax Assistance for Low–Income Marylanders – Funding 2
3125
32-BY repealing and reenacting, without amendments,
33- Article – Human Services
34-Section 6–802
35- Annotated Code of Maryland
36- (2019 Replacement Volume and 2023 Supplement)
26+FOR the purpose of requiring the Comptroller, beginning in a certain fiscal year, to 3
27+distribute a certain amount of abandoned property funds to the Tax Clinics for 4
28+Low–Income Marylanders Fund; requiring the Governor to include a certain amount 5
29+of funding in the annual budget for the CASH Campaign of Maryland to award 6
30+grants for providing certain tax assistance through certain on–demand and mobile 7
31+tax clinics; requiring certain grant recipients tax clinics to interact with the CASH 8
32+Campaign in a certain manner for a certain purpose; and generally relating to tax 9
33+assistance for low–income Marylanders. 10
3734
38-BY repealing and reenacting, without with amendments,
39- Article – Tax – General
40-Section 1–207
41- Annotated Code of Maryland
42- (2022 Replacement Volume and 2023 Supplement)
35+BY repealing and reenacting, with amendments, 11
36+ Article – Commercial Law 12
37+Section 17–317 13
38+ Annotated Code of Maryland 14
39+ (2013 Replacement Volume and 2023 Supplement) 15
4340
44- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
45-That the Laws of Maryland read as follows:
41+BY repealing and reenacting, with amendments, 16
42+ Article – Human Services 17
43+Section 6–801 18
44+ Annotated Code of Maryland 19
45+ (2019 Replacement Volume and 2023 Supplement) 20
4646
47-Article – Commercial Law
47+BY repealing and reenacting, without amendments, 21
48+ Article – Human Services 22 2 HOUSE BILL 451
4849
49-17–317. Ch. 727 2024 LAWS OF MARYLAND
5050
51-– 2 –
51+Section 6–802 1
52+ Annotated Code of Maryland 2
53+ (2019 Replacement Volume and 2023 Supplement) 3
5254
53- (a) (1) (i) All funds received under this title, including the proceeds of the
54-sale of abandoned property under § 17–316 of this subtitle, shall be credited by the
55-Administrator to a special fund.
55+BY repealing and reenacting, without with amendments, 4
56+ Article – Tax – General 5
57+Section 1–207 6
58+ Annotated Code of Maryland 7
59+ (2022 Replacement Volume and 2023 Supplement) 8
5660
57- (ii) The Administrator shall retain in the special fund at the end of
58-each fiscal year, from the proceeds received, an amount not to exceed $50,000, from which
59-sum the Administrator shall pay any claim allowed under this title.
61+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
62+That the Laws of Maryland read as follows: 10
6063
61- (2) After deducting all costs incurred in administering this title from the
62-remaining net funds the Administrator shall distribute $8,000,000 to the Maryland Legal
63-Services Corporation Fund established under § 11–402 of the Human Services Article.
64+Article – Commercial Law 11
6465
65- (3) (i) Subject to subparagraph (ii) of this paragraph, the Administrator
66-shall distribute all unclaimed money from judgments of restitution under Title 11, Subtitle
67-6 of the Criminal Procedure Article to the State Victims of Crime Fund established under
68-§ 11–916 of the Criminal Procedure Article to assist victims of crimes and delinquent acts
69-to protect the victims’ rights as provided by law.
66+17–317. 12
7067
71- (ii) If a victim entitled to restitution that has been treated as
72-abandoned property under § 11–614 of the Criminal Procedure Article is located after the
73-money has been distributed under this paragraph, the Administrator shall reduce the next
74-distribution to the State Victims of Crime Fund by the amount recovered by the victim.
68+ (a) (1) (i) All funds received under this title, including the proceeds of the 13
69+sale of abandoned property under § 17–316 of this subtitle, shall be credited by the 14
70+Administrator to a special fund. 15
7571
76- (4) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER ,
77-AFTER MAKING THE DIS TRIBUTIONS REQUIRED UNDER PARAGRAPHS (2) AND (3) OF
78-THIS SUBSECTION , THE ADMINISTRATOR SHALL D ISTRIBUTE $500,000 FROM THE
79-REMAINING NET FUNDS TO THE TAX CLINICS FOR LOW–INCOME MARYLANDERS
80-FUND ESTABLISHED UNDE R § 1–207 OF THE TAX – GENERAL ARTICLE.
72+ (ii) The Administrator shall retain in the special fund at the end of 16
73+each fiscal year, from the proceeds received, an amount not to exceed $50,000, from which 17
74+sum the Administrator shall pay any claim allowed under this title. 18
8175
82- (5) For each of fiscal years 2024 through 2027, after making the
83-distributions required under paragraphs [(2) and (3)] (2) THROUGH (4) of this subsection,
84-the Administrator shall distribute $14,000,000 from the remaining net funds to the Access
85-to Counsel in Evictions Special Fund under § 8–909 of the Real Property Article.
76+ (2) After deducting all costs incurred in administering this title from the 19
77+remaining net funds the Administrator shall distribute $8,000,000 to the Maryland Legal 20
78+Services Corporation Fund established under § 11–402 of the Human Services Article. 21
8679
87- [(5)] (6) After making the distributions required under paragraphs [(2),
88-(3), and (4)] (2) THROUGH (5) of this subsection, the Administrator shall distribute the
89-remaining net funds not retained under paragraph (1) of this subsection to the General
90-Fund of the State.
80+ (3) (i) Subject to subparagraph (ii) of this paragraph, the Administrator 22
81+shall distribute all unclaimed money from judgments of restitution under Title 11, Subtitle 23
82+6 of the Criminal Procedure Article to the State Victims of Crime Fund established under 24
83+§ 11–916 of the Criminal Procedure Article to assist victims of crimes and delinquent acts 25
84+to protect the victims’ rights as provided by law. 26
9185
92- (b) (1) Before making the distribution, the Administrator shall record the
93-name and last known address, if any, of the owners of funds so distributed and the type of
94-property which the funds distributed represent.
95- WES MOORE, Governor Ch. 727
86+ (ii) If a victim entitled to restitution that has been treated as 27
87+abandoned property under § 11–614 of the Criminal Procedure Article is located after the 28
88+money has been distributed under this paragraph, the Administrator shall reduce the next 29
89+distribution to the State Victims of Crime Fund by the amount recovered by the victim. 30
9690
97-– 3 –
98- (2) The record shall be available for public inspection during reasonable
99-business hours by any person who claims a legal interest in any property held by the
100-Administrator, provided that the person gives prior notice to the Administrator.
91+ (4) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , 31
92+AFTER MAKING THE DIS TRIBUTIONS REQUIRED UNDER PARAGRAPHS (2) AND (3) OF 32
93+THIS SUBSECTION , THE ADMINISTRATOR SHALL D ISTRIBUTE $500,000 FROM THE 33
94+REMAINING NET FUNDS TO THE TAX CLINICS FOR LOW–INCOME MARYLANDERS 34
95+FUND ESTABLISHED UNDE R § 1–207 OF THE TAX – GENERAL ARTICLE. 35
96+ HOUSE BILL 451 3
10197
102-Article – Human Services
10398
104-6–801.
99+ (5) For each of fiscal years 2024 through 2027, after making the 1
100+distributions required under paragraphs [(2) and (3)] (2) THROUGH (4) of this subsection, 2
101+the Administrator shall distribute $14,000,000 from the remaining net funds to the Access 3
102+to Counsel in Evictions Special Fund under § 8–909 of the Real Property Article. 4
105103
106- (a) For fiscal years 2021 through 2023, the Governor shall include in the annual
107-State budget an appropriation of $200,000 for the CASH Campaign of Maryland to promote
108-the financial capability of low–income individuals and families by providing outreach,
109-education, and free tax preparation services.
104+ [(5)] (6) After making the distributions required under paragraphs [(2), 5
105+(3), and (4)] (2) THROUGH (5) of this subsection, the Administrator shall distribute the 6
106+remaining net funds not retained under paragraph (1) of this subsection to the General 7
107+Fund of the State. 8
110108
111- (b) For fiscal [year 2024 and each fiscal year thereafter] YEARS 2024 AND 2025,
112-the Governor shall include in the annual budget bill an appropriation of $500,000 for the
113-CASH Campaign.
109+ (b) (1) Before making the distribution, the Administrator shall record the 9
110+name and last known address, if any, of the owners of funds so distributed and the type of 10
111+property which the funds distributed represent. 11
114112
115- (C) (1) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR THEREAFTER ,
116-THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDGET BILL AN APPROPRIATIO N
117-OF $800,000 FOR THE CASH CAMPAIGN.
113+ (2) The record shall be available for public inspection during reasonable 12
114+business hours by any person who claims a legal interest in any property held by the 13
115+Administrator, provided that the person gives prior notice to the Administrator. 14
118116
119- (2) (I) FROM THE APPROPRIATIO N MADE UNDER PARAGRA PH (1)
120-OF THIS SUBSECTION , $150,000 SHALL BE USED TO PRO VIDE GRANTS TO EXTER NAL
121-ENTITIES FOR PROVIDI NG INCOME TAX ASSIST ANCE IN ACCORDANCE WITH § 6–802
122-OF THIS SUBTITLE THR OUGH ON–DEMAND OR MOBILE TAX CLINICS THAT SERVE
123-SENIOR POPULATIONS , RURAL COMMUNITIES , OR UNDER –RESOURCED
124-COMMUNITIES , INCLUDING NEW AMERICAN POPULATIONS .
117+Article – Human Services 15
125118
126- (II) A RECIPIENT OF A GRANT FROM THE CASH CAMPAIGN TO
127-OPERATE AN ON –DEMAND OR MOBILE TAX CLINIC IN ACCORDANCE WITH
128-SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL INTERACT WITH TH E CASH
129-CAMPAIGN OF MARYLAND ON , AT MINIMUM, A QUARTERLY BASIS EA CH YEAR TO
130-ENSURE SUFFICIENT AC CESS TO TAX PREPARAT ION SERVICES FOR LO W–INCOME
131-MARYLAND RESIDENTS .
119+6–801. 16
132120
133-6–802.
121+ (a) For fiscal years 2021 through 2023, the Governor shall include in the annual 17
122+State budget an appropriation of $200,000 for the CASH Campaign of Maryland to promote 18
123+the financial capability of low–income individuals and families by providing outreach, 19
124+education, and free tax preparation services. 20
134125
135- An appropriation made under § 6–801 of this subtitle may be used only to:
126+ (b) For fiscal [year 2024 and each fiscal year thereafter] YEARS 2024 AND 2025, 21
127+the Governor shall include in the annual budget bill an appropriation of $500,000 for the 22
128+CASH Campaign. 23
136129
137- (1) provide free volunteer income tax assistance that helps low–income
138-individuals and families:
130+ (C) (1) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR THEREAFTER , 24
131+THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDGET BILL AN APPROPRIATIO N 25
132+OF $800,000 FOR THE CASH CAMPAIGN. 26
139133
140- (i) file tax returns;
134+ (2) (I) FROM THE APPROPRIATIO N MADE UNDER PARAGRA PH (1) 27
135+OF THIS SUBSECTION , $150,000 SHALL BE USED TO PRO VIDE GRANTS TO EXTER NAL 28
136+ENTITIES FOR PROVIDI NG INCOME TAX ASSIST ANCE IN ACCORDANCE WITH § 6–802 29
137+OF THIS SUBTITLE THR OUGH ON–DEMAND OR MOBILE TAX CLINICS THAT SERVE 30
138+SENIOR POPULATIONS , RURAL COMMUNITIES , OR UNDER –RESOURCED 31
139+COMMUNITIES , INCLUDING NEW AMERICAN POPULATIONS . 32
141140
142- (ii) avoid predatory fees; and Ch. 727 2024 LAWS OF MARYLAND
141+ (II) A RECIPIENT OF A GRANT FROM THE CASH CAMPAIGN TO 33
142+OPERATE AN ON –DEMAND OR MOBILE TAX CLINIC IN ACCORDANCE WITH 34
143+SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL INTERACT WITH TH E CASH 35 4 HOUSE BILL 451
143144
144-– 4 –
145145
146- (iii) claim the federal earned income tax credit or the State earned
147-income tax credit under § 10–704 of the Tax – General Article;
146+CAMPAIGN OF MARYLAND ON , AT MINIMUM, A QUARTERLY BASIS EA CH YEAR TO 1
147+ENSURE SUFFICIENT AC CESS TO TAX PREPARAT ION SERVICES FOR LO W–INCOME 2
148+MARYLAND RESIDENTS . 3
148149
149- (2) coordinate and expand access to free, fact–based financial education
150-and coaching for low–income individuals and families;
150+6–802. 4
151151
152- (3) connect low–income individuals and families to affordable,
153-high–quality financial services;
152+ An appropriation made under § 6–801 of this subtitle may be used only to: 5
154153
155- (4) recruit, train, and manage a corps of volunteers to provide financial
156-education, coaching, and tax preparation services for low–income individuals and families;
157-and
154+ (1) provide free volunteer income tax assistance that helps low–income 6
155+individuals and families: 7
158156
159- (5) conduct outreach to low–income individuals and families.
157+ (i) file tax returns; 8
160158
161-Article – Tax – General
159+ (ii) avoid predatory fees; and 9
162160
163-1–207.
161+ (iii) claim the federal earned income tax credit or the State earned 10
162+income tax credit under § 10–704 of the Tax – General Article; 11
164163
165- (a) In this section, “Fund” means the Tax Clinics for Low–Income Marylanders
166-Fund.
164+ (2) coordinate and expand access to free, fact–based financial education 12
165+and coaching for low–income individuals and families; 13
167166
168- (b) There is a Tax Clinics for Low–Income Marylanders Fund.
167+ (3) connect low–income individuals and families to affordable, 14
168+high–quality financial services; 15
169169
170- (c) The purpose of the Fund is to provide grants to the University of Maryland
171-School of Law, the University of Baltimore School of Law, and the Maryland Volunteer
172-Lawyers Service to operate tax clinics for low–income Maryland residents.
170+ (4) recruit, train, and manage a corps of volunteers to provide financial 16
171+education, coaching, and tax preparation services for low–income individuals and families; 17
172+and 18
173173
174- (d) The Comptroller shall administer the Fund.
174+ (5) conduct outreach to low–income individuals and families. 19
175175
176- (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of
177-the State Finance and Procurement Article.
176+Article – Tax – General 20
178177
179- (2) The State Treasurer shall hold the Fund separately, and t he
180-Comptroller shall account for the Fund.
178+1–207. 21
181179
182- (f) The Fund consists of:
180+ (a) In this section, “Fund” means the Tax Clinics for Low–Income Marylanders 22
181+Fund. 23
183182
184- (1) proceeds distributed to the Fund under § 17–317 of the Commercial
185-Law Article;
183+ (b) There is a Tax Clinics for Low–Income Marylanders Fund. 24
186184
187- (2) money appropriated in the State budget for the Fund; and
185+ (c) The purpose of the Fund is to provide grants to the University of Maryland 25
186+School of Law, the University of Baltimore School of Law, and the Maryland Volunteer 26
187+Lawyers Service to operate tax clinics for low–income Maryland residents. 27
188188
189- (3) any other money from any other source accepted for the benefit of the
190-Fund. WES MOORE, Governor Ch. 727
189+ (d) The Comptroller shall administer the Fund. 28
191190
192-– 5 –
191+ (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 29
192+the State Finance and Procurement Article. 30 HOUSE BILL 451 5
193193
194- (g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only
195-to provide grants to the University of Maryland School of Law, the University of Baltimore
196-School of Law, and the Maryland Volunteer Lawyers Service to operate tax clinics for
197-low–income Maryland residents.
198194
199- (2) For each fiscal year, the total amount of grant money expended from
200-the Fund to support tax clinics shall be distributed as follows:
201195
202- (i) one–third to the University of Maryland School of Law;
196+ (2) The State Treasurer shall hold the Fund separately, and t he 1
197+Comptroller shall account for the Fund. 2
203198
204- (ii) one–third to the University of Baltimore School of Law; and
199+ (f) The Fund consists of: 3
205200
206- (iii) one–third to the Maryland Volunteer Lawyers Service.
201+ (1) proceeds distributed to the Fund under § 17–317 of the Commercial 4
202+Law Article; 5
207203
208- (h) Beginning in fiscal year 2024 and each fiscal year thereafter, the Governor
209-may include in the annual budget bill an appropriation to the Fund.
204+ (2) money appropriated in the State budget for the Fund; and 6
210205
211- (i) (1) The State Treasurer shall invest the money of the Fund in the same
212-manner as other State money may be invested.
206+ (3) any other money from any other source accepted for the benefit of the 7
207+Fund. 8
213208
214- (2) Any interest earnings of the Fund shall be credited to the General Fund
215-of the State.
209+ (g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 9
210+to provide grants to the University of Maryland School of Law, the University of Baltimore 10
211+School of Law, and the Maryland Volunteer Lawyers Service to operate tax clinics for 11
212+low–income Maryland residents. 12
216213
217- (j) Expenditures from the Fund may be made only in accordance with the State
218-budget.
214+ (2) For each fiscal year, the total amount of grant money expended from 13
215+the Fund to support tax clinics shall be distributed as follows: 14
219216
220- (k) Money expended from the Fund to support tax clinics at the University of
221-Maryland School of Law, the University of Baltimore School of Law, and the Maryland
222-Volunteer Lawyers Service is supplemental to and is not intended to take the place of
223-funding that otherwise would be appropriated for tax clinics.
217+ (i) one–third to the University of Maryland School of Law; 15
224218
225- (L) THE TAX CLINICS AT TH E UNIVERSITY OF MARYLAND SCHOOL OF LAW,
226-THE UNIVERSITY OF BALTIMORE SCHOOL OF LAW, AND THE MARYLAND
227-VOLUNTEER LAWYERS SERVICE SHALL INTERAC T WITH THE CASH CAMPAIGN OF
228-MARYLAND AT LEAST ONC E EACH YEAR TO ENSUR E SUFFICIENT ACCESS TO TAX
229-PREPARATION SERVICES FOR LOW–INCOME MARYLAND RESIDENTS .
219+ (ii) one–third to the University of Baltimore School of Law; and 16
230220
231- SECTION 2. AND BE IT FURTHER ENAC TED, That this Act shall take effect July
232-1, 2024.
221+ (iii) one–third to the Maryland Volunteer Lawyers Service. 17
233222
234-Approved by the Governor, May 16, 2024.
223+ (h) Beginning in fiscal year 2024 and each fiscal year thereafter, the Governor 18
224+may include in the annual budget bill an appropriation to the Fund. 19
225+
226+ (i) (1) The State Treasurer shall invest the money of the Fund in the same 20
227+manner as other State money may be invested. 21
228+
229+ (2) Any interest earnings of the Fund shall be credited to the General Fund 22
230+of the State. 23
231+
232+ (j) Expenditures from the Fund may be made only in accordance with the State 24
233+budget. 25
234+
235+ (k) Money expended from the Fund to support tax clinics at the University of 26
236+Maryland School of Law, the University of Baltimore School of Law, and the Maryland 27
237+Volunteer Lawyers Service is supplemental to and is not intended to take the place of 28
238+funding that otherwise would be appropriated for tax clinics. 29
239+
240+ (L) THE TAX CLINICS AT TH E UNIVERSITY OF MARYLAND SCHOOL OF LAW, 30
241+THE UNIVERSITY OF BALTIMORE SCHOOL OF LAW, AND THE MARYLAND 31 6 HOUSE BILL 451
242+
243+
244+VOLUNTEER LAWYERS SERVICE SHALL INTERAC T WITH THE CASH CAMPAIGN OF 1
245+MARYLAND AT LEAST ONC E EACH YEAR TO ENSUR E SUFFICIENT ACCESS TO TAX 2
246+PREPARATION SERVICES FOR LOW–INCOME MARYLAND RESIDENTS . 3
247+
248+ SECTION 2. AND BE IT FURTHER ENAC TED, That this Act shall take effect July 4
249+1, 2024. 5
250+
251+
252+
253+
254+Approved:
255+________________________________________________________________________________
256+ Governor.
257+________________________________________________________________________________
258+ Speaker of the House of Delegates.
259+________________________________________________________________________________
260+ President of the Senate.