WES MOORE, Governor Ch. 804
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Chapter 804
(Senate Bill 1142)
AN ACT concerning
Tax Clinics Assistance for Low–Income Marylanders – Funding
FOR the purpose of requiring the Comptroller, beginning in a certain fiscal year, to
distribute a certain amount of abandoned property funds to the Tax Clinics for
Low–Income Marylanders Fund; requiring the Governor to include a certain amount
of funding in the annual budget for the CASH Campaign of Maryland to award
grants for providing certain tax assistance through certain on–demand and mobile
tax clinics; requiring certain tax clinics to interact with the CASH Campaign in a
certain manner for a certain purpose; and generally relating to tax assistance for
low–income Marylanders.
BY repealing and reenacting, with amendments,
Article – Commercial Law
Section 17–317
Annotated Code of Maryland
(2013 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Human Services
Section 6–801
Annotated Code of Maryland
(2019 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, without amendments,
Article – Human Services
Section 6–802
Annotated Code of Maryland
(2019 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, without with amendments,
Article – Tax – General
Section 1–207
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Commercial Law
17–317. Ch. 804 2024 LAWS OF MARYLAND
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(a) (1) (i) All funds received under this title, including the proceeds of the
sale of abandoned property under § 17–316 of this subtitle, shall be credited by the
Administrator to a special fund.
(ii) The Administrator shall retain in the special fund at the end of
each fiscal year, from the proceeds received, an amount not to exceed $50,000, from which
sum the Administrator shall pay any claim allowed under this title.
(2) After deducting all costs incurred in administering this title from the
remaining net funds the Administrator shall distribute $8,000,000 to the Maryland Legal
Services Corporation Fund established under § 11–402 of the Human Services Article.
(3) (i) Subject to subparagraph (ii) of this paragraph, the Administrator
shall distribute all unclaimed money from judgments of restitution under Title 11, Subtitle
6 of the Criminal Procedure Article to the State Victims of Crime Fund established under
§ 11–916 of the Criminal Procedure Article to assist victims of crimes and delinquent acts
to protect the victims’ rights as provided by law.
(ii) If a victim entitled to restitution that has been treated as
abandoned property under § 11–614 of the Criminal Procedure Article is located after the
money has been distributed under this paragraph, the Administrator shall reduce the next
distribution to the State Victims of Crime Fund by the amount recovered by the victim.
(4) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER ,
AFTER MAKING THE DIS TRIBUTIONS REQUIRED UNDER PARAGRAPHS (2) AND (3) OF
THIS SUBSECTION , THE ADMINISTRATOR SHALL D ISTRIBUTE $250,000 $500,000
FROM THE REMAINING N ET FUNDS TO THE TAX CLINICS FOR LOW–INCOME
MARYLANDERS FUND ESTABLISHED UNDE R § 1–207 OF THE TAX – GENERAL
ARTICLE.
(5) For each of fiscal years 2024 through 2027, after making the
distributions required under paragraphs (2) [and (3)] THROUGH (4) of this subsection, the
Administrator shall distribute $14,000,000 from the remaining net funds to the Access to
Counsel in Evictions Special Fund under § 8–909 of the Real Property Article.
[(5)] (6) After making the distributions required under paragraphs (2)[,
(3), and (4)] THROUGH (5) of this subsection, the Administrator shall distribute the
remaining net funds not retained under paragraph (1) of this subsection to the General
Fund of the State.
(b) (1) Before making the distribution, the Administrator shall record the
name and last known address, if any, of the owners of funds so distributed and the type of
property which the funds distributed represent.
WES MOORE, Governor Ch. 804
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(2) The record shall be available for public inspection during reasonable
business hours by any person who claims a legal interest in any property held by the
Administrator, provided that the person gives prior notice to the Administrator.
Article – Human Services
6–801.
(a) For fiscal years 2021 through 2023, the Governor shall include in the annual
State budget an appropriation of $200,000 for the CASH Campaign of Maryland to promote
the financial capability of low–income individuals and families by providing outreach,
education, and free tax preparation services.
(b) For fiscal [year 2024 and each fiscal year thereafter] YEARS 2024 AND 2025,
the Governor shall include in the annual budget bill an appropriation of $500,000 for the
CASH Campaign.
(C) (1) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR THEREAFTER , THE
GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIATION OF
$800,000 FOR THE CASH CAMPAIGN.
(2) FROM THE APPROPRIATIO N MADE UNDER PARAGRA PH (1) OF THIS
SUBSECTION, $150,000 SHALL BE USED TO PRO VIDE GRANTS TO EXTER NAL
ENTITIES FOR PROVIDI NG INCOME TAX ASSIST ANCE IN ACCORDANCE W ITH § 6–802
OF THIS SUBTITLE THROUGH ON –DEMAND OR MOBILE TAX CLINICS THAT SERVE
SENIOR POPULATIONS , RURAL COMMUNITIES , OR UNDER –RESOURCED
COMMUNITIES , INCLUDING NEW AMERICAN POPULATIONS .
6–802.
An appropriation made under § 6–801 of this subtitle may be used only to:
(1) provide free volunteer income tax assistance that helps low–income
individuals and families:
(i) file tax returns;
(ii) avoid predatory fees; and
(iii) claim the federal earned income tax credit or the State earned
income tax credit under § 10–704 of the Tax – General Article;
(2) coordinate and expand access to free, fact–based financial education and
coaching for low–income individuals and families;
Ch. 804 2024 LAWS OF MARYLAND
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(3) connect low–income individuals and families to affordable, high–quality
financial services;
(4) recruit, train, and manage a corps of volunteers to provide financial
education, coaching, and tax preparation services for low–income individuals and families;
and
(5) conduct outreach to low–income individuals and families.
Article – Tax – General
1–207.
(a) In this section, “Fund” means the Tax Clinics for Low–Income Marylanders
Fund.
(b) There is a Tax Clinics for Low–Income Marylanders Fund.
(c) The purpose of the Fund is to provide grants to the University of Maryland
School of Law, the University of Baltimore School of Law, and the Maryland Volunteer
Lawyers Service to operate tax clinics for low–income Maryland residents.
(d) The Comptroller 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) proceeds distributed to the Fund under § 17–317 of the Commercial
Law Article;
(2) money appropriated in the State budget for the Fund; and
(3) any other money from any other source accepted for the benefit of the
Fund.
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only
to provide grants to the University of Maryland School of Law, the University of Baltimore
School of Law, and the Maryland Volunteer Lawyers Service to operate tax clinics for
low–income Maryland residents.
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(2) For each fiscal year, the total amount of grant money expended from
the Fund to support tax clinics shall be distributed as follows:
(i) one–third to the University of Maryland School of Law;
(ii) one–third to the University of Baltimore School of Law; and
(iii) one–third to the Maryland Volunteer Lawyers Service.
(h) Beginning in fiscal year 2024 and each fiscal year thereafter, the Governor
may include in the annual budget bill an appropriation to the Fund.
(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 General Fund
of the State.
(j) Expenditures from the Fund may be made only in accordance with the State
budget.
(k) Money expended from the Fund to support tax clinics at the University of
Maryland School of Law, the University of Baltimore School of Law, and the Maryland
Volunteer Lawyers Service is supplemental to and is not intended to take the place of
funding that otherwise would be appropriated for tax clinics.
(L) THE TAX CLINICS AT TH E UNIVERSITY OF MARYLAND SCHOOL OF LAW,
THE UNIVERSITY OF BALTIMORE SCHOOL OF LAW, AND THE MARYLAND
VOLUNTEER LAWYERS SERVICE SHALL INTERACT WITH THE CASH CAMPAIGN OF
MARYLAND AT LEAST ONC E EACH YEAR TO ENSUR E SUFFICIENT ACCESS TO TAX
PREPARATION SERVICES FOR LOW–INCOME MARYLAND RESIDENTS .
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2024.
Approved by the Governor, May 16, 2024.