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Maryland Senate Bill SB429

Maryland 2024 Regular Session

Maryland Senate Bill SB429 Compare Versions

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1- WES MOORE, Governor Ch. 862
21
3-– 1 –
4-Chapter 862
5-(Senate Bill 429)
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+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0429*
810
9-Corporations and Associations – Protestant Episcopal Church, Diocese of
10-Washington and Study of Property Held in Trust by the United Methodist
11-Church
11+SENATE BILL 429
12+C1 (4lr0885)
13+ENROLLED BILL
14+— Judicial Proceedings/Economic Matters —
15+Introduced by Senator Bailey
1216
13-FOR the purpose of repealing uncodified provisions of law relating to the Protestant
14-Episcopal Church, Diocese of Washington, commonly known as the “Vestry Act”;
15-providing for the governance of religious corporations in union with the Protestant
16-Episcopal Church, Diocese of Washington; requiring the State Department of
17-Assessments and Taxation to report on the impact of repealing certain sections of
18-the Corporations and Associations Article; and generally relating to the Protestant
19-Episcopal Church, Diocese of Washington and a study of property held in trust by
20-the United Methodist Church.
17+Read and Examined by Proofreaders:
2118
22-BY repealing and reenacting, without amendments,
23- Article – Corporations and Associations
24-Section 5–301(a)
25- Annotated Code of Maryland
26- (2014 Replacement Volume and 2023 Supplement)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2723
28-BY repealing and reenacting, with amendments,
29- Article – Corporations and Associations
30-Section 5–301(e)
31- Annotated Code of Maryland
32- (2014 Replacement Volume and 2023 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
3325
34-BY adding to
35- Article – Corporations and Associations
36-Section 5–341 and 5–342 to be under the new part “Part VII. Protestant Episcopal
37-Church, Diocese of Washington”
38- Annotated Code of Maryland
39- (2014 Replacement Volume and 2023 Supplement)
26+_______ day of _______________ at _________________ _______ o’clock, ________M.
4027
41-BY repealing
42- Chapter 96 of the Acts of the General Assembly of 1976
28+______________________________________________
29+President.
4330
44- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
45-That the Laws of Maryland read as follows:
31+CHAPTER ______
4632
47-Article – Corporations and Associations
33+AN ACT concerning 1
4834
49-5–301. Ch. 862 2024 LAWS OF MARYLAND
35+Corporations and Associations – Protestant Episcopal Church, Diocese of 2
36+Washington and Study of Property Held in Trust by the United Methodist 3
37+Church 4
5038
51-– 2 –
39+FOR the purpose of repealing uncodified provisions of law relating to the Protestant 5
40+Episcopal Church, Diocese of Washington, commonly known as the “Vestry Act”; 6
41+providing for the governance of religious corporations in union with the Protestant 7
42+Episcopal Church, Diocese of Washington; requiring the State Department of 8
43+Assessments and Taxation to report on the impact of repealing certain sections of 9
44+the Corporations and Associations Article; and generally relating to the Protestant 10
45+Episcopal Church, Diocese of Washington and a study of property held in trust by 11
46+the United Methodist Church. 12
5247
53- (a) In this part the following words have the meanings indicated.
48+BY repealing and reenacting, without amendments, 13
49+ Article – Corporations and Associations 14 2 SENATE BILL 429
5450
55- (e) “Trustees” means:
5651
57- (1) As to a religious corporation subject to Part II of this subtitle, the
58-corporators appointed or elected as provided in that part; and
52+Section 5–301(a) 1
53+ Annotated Code of Maryland 2
54+ (2014 Replacement Volume and 2023 Supplement) 3
5955
60- (2) As to a religious corporation subject to Part V [or], Part VI, OR PART
61-VII of this subtitle, the members of the vestry.
56+BY repealing and reenacting, with amendments, 4
57+ Article – Corporations and Associations 5
58+Section 5–301(e) 6
59+ Annotated Code of Maryland 7
60+ (2014 Replacement Volume and 2023 Supplement) 8
6261
63-5–339. RESERVED.
62+BY adding to 9
63+ Article – Corporations and Associations 10
64+Section 5–341 and 5–342 to be under the new part “Part VII. Protestant Episcopal 11
65+Church, Diocese of Washington” 12
66+ Annotated Code of Maryland 13
67+ (2014 Replacement Volume and 2023 Supplement) 14
6468
65-5–340. RESERVED.
69+BY repealing 15
70+ Chapter 96 of the Acts of the General Assembly of 1976 16
6671
67-PART VII. PROTESTANT EPISCOPAL CHURCH, DIOCESE OF WASHINGTON.
72+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
73+That the Laws of Maryland read as follows: 18
6874
69-5–341.
75+Article – Corporations and Associations 19
7076
71- (A) THIS PART APPLIES TO EVERY RELIGIOUS CORP ORATION FORMED IN
72-THIS STATE BY A PARISH OR SEPARATE CONGREGATION THAT IS IN UNION WITH OR
73-INTENDING TO APPLY F OR UNION WITH THE CO NVENTION OF THE PROTESTANT
74-EPISCOPAL CHURCH IN THE DIOCESE OF WASHINGTON, AS CREATED BY THE ACT
75-OF CONGRESS APPROVED MARCH 16, 1896 (29 STAT. 58).
77+5–301. 20
7678
77- (B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION
78-OR OTHERWISE IN THIS PART:
79+ (a) In this part the following words have the meanings indicated. 21
7980
80- (I) PART I OF THIS SUBTITLE APP LIES TO AND REGULATE S THE
81-CORPORATE AND TEMPOR AL AFFAIRS OF EVERY RELIGIOUS CORPORATIO N
82-DESCRIBED IN SUBSECT ION (A) OF THIS SECTION , INCLUDING THOSE
83-INCORPORATED UNDER CHAPTER 24 OF THE ACTS OF THE GENERAL ASSEMBLY OF
84-1798, UNDER CHAPTER 96 OF THE ACTS OF THE GENERAL ASSEMBLY OF 1976, OR
85-BY SPECIAL ACT OF THE GENERAL ASSEMBLY; AND
81+ (e) “Trustees” means: 22
8682
87- (II) TO THE EXTENT NOT PRO HIBITED BY THE CONSTITUTION
88-OF THE UNITED STATES OR OF THIS STATE, THE CHARTER OF EACH OF THEM IS
89-DEEMED TO BE AMENDED TO CONFORM TO THIS S UBTITLE UNTIL THE CH ARTER
90-OTHERWISE IS AMENDED BY THE PARISH OR SEP ARATE CONGREGATION A S
91-PROVIDED IN PART I OF THIS SUBTITLE.
83+ (1) As to a religious corporation subject to Part II of this subtitle, the 23
84+corporators appointed or elected as provided in that part; and 24
9285
93- (2) AS TO ANY PARIS H OR SEPARATE CONGRE GATION THAT WAS
94-INCORPORATED BEFORE THE EFFECTIVE DATE O F THE MARYLAND CONSTITUTION
95-OF 1851 AND THEREFORE HAS AN IRREPEALABLE CHARTER , UNLESS THAT PARISH WES MOORE, Governor Ch. 862
86+ (2) As to a religious corporation subject to Part V [or], Part VI, OR PART 25
87+VII of this subtitle, the members of the vestry. 26
9688
97-– 3 –
98-OR SEPARATE CONGREGA TION ACCEPTS , USES, ENJOYS, OR IN ANY WAY AVAILS
99-ITSELF OF ANY RIGHT, PRIVILEGE, OR ADVANTAGE GRANTED OR CONFERRED BY
100-ANY STATUTE ENACTED AFTER NOVEMBER 3, 1891:
89+5–339. RESERVED. 27
10190
102- (I) PART I OF THIS SUBTITLE DOE S NOT APPLY TO THE P ARISH
103-OR SEPARATE CONGREGA TION; AND
91+5–340. RESERVED. 28
10492
105- (II) THE PARISH OR SEPARAT E CONGREGATION CONTI NUES TO
106-BE GOVERNED BY THE STAT UTE UNDER WHICH IT W AS INCORPORATED .
93+PART VII. PROTESTANT EPISCOPAL CHURCH, DIOCESE OF WASHINGTON. 29
10794
108-5–342.
95+5–341. 30
96+ SENATE BILL 429 3
10997
110- (A) (1) EACH RELIGIOUS CORPOR ATION SUBJECT TO THI S PART SHALL
111-ADOPT BYLAWS TO GOVE RN ITS CORPORATE AND TEMPORAL AFFAIRS .
11298
113- (2) BYLAWS MAY BE ADOPTED BY A MAJORITY OF THE QUALIFIED
114-VOTERS VOTING AT A REGULAR O R SPECIAL CONGREGATI ONAL MEETING CALLED
115-FOR THAT PURPOSE .
99+ (A) THIS PART APPLIES TO EVERY RELIGIOUS CORP ORATION FORMED IN 1
100+THIS STATE BY A PARISH OR SEPARATE CONGREGATIO N THAT IS IN UNION W ITH OR 2
101+INTENDING TO APPLY FOR UNION WITH THE CONVENTION OF TH E PROTESTANT 3
102+EPISCOPAL CHURCH IN THE DIOCESE OF WASHINGTON, AS CREATED BY THE ACT 4
103+OF CONGRESS APPROVED MARCH 16, 1896 (29 STAT. 58). 5
116104
117- (B) EACH RELIGIOUS CORPOR ATION SUBJECT TO THI S PART IS SUBJECT AT
118-ALL TIMES TO THE CON STITUTION AND CANONS OF THE CONVENTION OF THE
119-PROTESTANT EPISCOPAL CHURCH IN THE DIOCESE OF WASHINGTON AND OF THE
120-PROTESTANT EPISCOPAL CHURCH IN THE UNITED STATES OF AMERICA.
105+ (B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION 6
106+OR OTHERWISE IN THIS PART: 7
121107
122- SECTION 2. AND BE IT FURTHER ENACTED, That Chapter 96 of the Acts of the
123-General Assembly of 1976 be repealed.
108+ (I) PART I OF THIS SUBTITLE APP LIES TO AND REGULATE S THE 8
109+CORPORATE AND TEMPOR AL AFFAIRS OF EVERY RELIGIOUS CORPORATIO N 9
110+DESCRIBED IN SUBSECT ION (A) OF THIS SECTION , INCLUDING THOSE 10
111+INCORPORATED UNDER CHAPTER 24 OF THE ACTS OF THE GENERAL ASSEMBLY OF 11
112+1798, UNDER CHAPTER 96 OF THE ACTS OF THE GENERAL ASSEMBLY OF 1976, OR 12
113+BY SPECIAL ACT OF THE GENERAL ASSEMBLY; AND 13
124114
125- SECTION 3. AND BE IT FURTHER ENACTED, That since the ve stries previously
126-incorporated under the provisions of the original Vestry Act have not been required to file
127-and record a certificate of incorporation, and the vestries of any separate congregation, after
128-union with the convention of the Protestant Episcopal Church in the Diocese of
129-Washington, have not been required to file and record a supplemental certificate signifying
130-that union, the State Department of Assessments and Taxation, or its successor
131-administrative body, may file and record a certificate, similar in every respect to the
132-certificate required by § 5–304(b) of the Corporations and Associations Article, on the
133-request of:
115+ (II) TO THE EXTENT NOT PRO HIBITED BY THE CONSTITUTION 14
116+OF THE UNITED STATES OR OF THIS STATE, THE CHARTER OF EACH OF THEM IS 15
117+DEEMED TO BE AMENDED TO C ONFORM TO THIS SUBTI TLE UNTIL THE CHARTE R 16
118+OTHERWISE IS AMENDED BY THE PARISH OR SEP ARATE CONGREGATION A S 17
119+PROVIDED IN PART I OF THIS SUBTITLE. 18
134120
135- (1) any parish or separate congregation offering its own certificate for
136-record; or
121+ (2) AS TO ANY PARISH OR S EPARATE CONGREGATION THAT WAS 19
122+INCORPORATED BEFORE THE EFFECTIVE DA TE OF THE MARYLAND CONSTITUTION 20
123+OF 1851 AND THEREFORE HAS AN IRREPEALABLE CHARTER , UNLESS THAT PARISH 21
124+OR SEPARATE CONGREGA TION ACCEPTS , USES, ENJOYS, OR IN ANY WAY AVAILS 22
125+ITSELF OF ANY RIGHT , PRIVILEGE, OR ADVANTAGE GRANTED OR CONFERRED BY 23
126+ANY STATUTE ENAC TED AFTER NOVEMBER 3, 1891: 24
137127
138- (2) the convention of the Protestant Episcopal Church in the Diocese of
139-Washington on behalf of any parish or separate congregation that neglects or declines for
140-any reason to offer its own certificate for record, in which event the certificate may be made
141-and signed by the secretary of the convention instead of the vestry of the parish or separate
142-congregation. Ch. 862 2024 LAWS OF MARYLAND
128+ (I) PART I OF THIS SUBTITLE DOE S NOT APPLY TO THE P ARISH 25
129+OR SEPARATE CONGREGA TION; AND 26
143130
144-– 4 –
131+ (II) THE PARISH OR SEPARAT E CONGREGATION CONTI NUES TO 27
132+BE GOVERNED BY THE S TATUTE UNDER WHICH I T WAS INCORPORATED . 28
145133
146- SECTION 4. AND BE IT FURTHER ENACTED, That the legal existence of the
147-following parishes and separate congregations in union with the Convention of the
148-Protestant Episcopal Church in the Diocese of Washington as bodies corporate is recognized
149-and acknowledged for all purposes:
134+5–342. 29
150135
151- (1) in Mongomery County, Maryland: The Vestry of Ascension Parish, The
152-Vestry of Chevy Chase Parish, The Vestry of Christ Church Parish, The Vestry of Church
153-of Our Saviour, The Vestry of Good Shepherd Parish, The Vestry of Norwood Parish, The
154-Vestry of Potomac Parish, The Vestry of Prince George’s Parish, The Vestry of Redeemer
155-Parish, The Vestry of Silver Spring Parish, The Vestry of Sligo Parish, The Vestry of St.
156-Anne’s Parish, The Vestry of St. Bartholomew’s Parish, The Vestry of St. Dunstan’s Parish,
157-The Vestry of St. James’ Parish, The Vestry of St. John’s Church, The Vestry of St. Luke’s
158-Church, The Vestry of St. Mark’s Parish, The Vestry of St. Nicholas’ Parish, The Vestry of
159-St. Peter’s Parish, The Vestry of Transfiguration Parish, The Vestry of Trinity Parish, and
160-The Vestry of Wheaton Parish;
136+ (A) (1) EACH RELIGIOUS CORPOR ATION SUBJECT TO THI S PART SHALL 30
137+ADOPT BYLAWS TO GOVE RN ITS CORPORATE AND TEMPORAL AFFAIRS . 31
161138
162- (2) in Prince George’s County, Maryland: The Vestry of Adelphi Parish,
163-The Vestry of Baden Parish, The Vestry of Clinton Parish, The Vestry of Epiphany Parish,
164-The Vestry of Glenn Dale Parish, The Vestry of Holy Trinity Parish, The Vestry of King
165-George’s Parish, The Vestry of Queen Anne Parish, The Vestry of St. Andrew’s Parish, The
166-Vestry of St. Barnabas’ Parish, The Vestry of St. Christopher’s Parish, The Vestry of St.
167-John’s Parish, The Vestry of St. Matthew’s Parish, The Vestry of St. Paul’s Parish, The
168-Vestry of St. Philip’s Parish, The Vestry of St. Thomas’ Parish, and The Vestry of Zion
169-Parish;
139+ (2) BYLAWS MAY BE ADOPTED BY A MAJORITY OF THE QUALIFIED 32
140+VOTERS VOTING AT A R EGULAR OR SPECIAL CO NGREGATIONAL MEETING CALLED 33
141+FOR THAT PURPOSE. 34
142+ 4 SENATE BILL 429
170143
171- (3) in Charles County, Maryland: The Vestry of Durham Parish, The
172-Vestry of Piney Parish, The Vestry of Port Tobacco Parish, The Vestry of St. James’ Parish,
173-The Vestry of Trinity Parish, and The Vestry of William and Mary Parish; and
174144
175- (4) in St. Mary’s County, Maryland: The Vestry of All Faith Parish, The
176-Vestry of All Saints’ Parish, The Vestry of King and Queen Parish, The Vestry of
177-Resurrection Parish, The Vestry of St. Andrew’s Parish, and The Vestry of St. Mary’s
178-Parish.
145+ (B) EACH RELIGIOUS CORPOR ATION SUBJECT TO THI S PART IS SUBJECT AT 1
146+ALL TIMES TO THE CON STITUTION AND CANONS OF THE CONVENTION OF THE 2
147+PROTESTANT EPISCOPAL CHURCH IN THE DIOCESE OF WASHINGTON AND OF THE 3
148+PROTESTANT EPISCOPAL CHURCH IN THE UNITED STATES OF AMERICA. 4
179149
180- SECTION 5. AND BE IT FURTH ER ENACTED, That the bodies corporate named
181-in Section 4 of this Act shall be deemed properly incorporated and all persons, entities, and
182-instrumentalities, including the courts of this State and units of State government, shall
183-be estopped from denying the legal existence of those bodies corporate.
150+ SECTION 2. AND BE IT FURTHER ENACTED, That Chapter 96 of the Acts of the 5
151+General Assembly of 1976 be repealed. 6
184152
185- SECTION 6. AND BE IT FURTHER ENACTED, That this Act does not prohibit the
186-future dissolution or merger of the bodies corporate named in Section 4 of this Act pursuant
187-to the constitution and canons of the Convention of the Protestant Episcopal Church in the
188-Diocese of Washington and the applicable provisions of the laws of this State.
189- WES MOORE, Governor Ch. 862
153+ SECTION 3. AND BE IT FURTHER ENACTED, That since the vestries previously 7
154+incorporated under the provisions of the original Vestry Act have not been required to file 8
155+and record a certificate of incorporation, and the vestries of any separate congregation, after 9
156+union with the convention of the Protestant Episcopal Church in the Diocese of 10
157+Washington, have not been required to file and record a supplemental certificate signifying 11
158+that union, the State Department of Assessments and Taxation, or its successor 12
159+administrative body, may file and record a certificate, similar in every respect to the 13
160+certificate required by § 5–304(b) of the Corporations and Associations Article, on the 14
161+request of: 15
190162
191-– 5 –
192- SECTION 7. AND BE IT FURTHER ENACTED, That, on or before December 31,
193-2024, the State Department of Assessments and Taxation shall report to the General
194-Assembly, in accordance with § 2–1257 of the State Government Article, on the impact of
195-repealing:
163+ (1) any parish or separate congregation offering its own certificate for 16
164+record; or 17
196165
197- (1) the requirement in § 5–326 of the Corporations and Associations Article
198-that certain assets owned by any Methodist Church be held by the trustees of the church
199-in trust for the United Methodist Church; and
166+ (2) the convention of the Protestant Episcopal Church in the Diocese of 18
167+Washington on behalf of any parish or separate congregation that neglects or declines for 19
168+any reason to offer its own certificate for record, in which event the certificate may be made 20
169+and signed by the secretary of the convention instead of the vestry of the parish or separate 21
170+congregation. 22
200171
201- (2) the restrictions in § 5–327 of the Corporations and Associations Article
202-on a deed or conveyance executed before June 1, 1953, that does not include a trust clause.
172+ SECTION 4. AND BE IT FURTHER ENACTED, That the legal existence of the 23
173+following parishes and separate congregations in union with the Convention of the 24
174+Protestant Episcopal Church in the Diocese of Washington as bodies corporate is recognized 25
175+and acknowledged for all purposes: 26
203176
204- SECTION 7. 8. 7. AND BE IT FURTHER ENACTED, That this Act shall take effect
205-July 1, 2024.
177+ (1) in Mongomery County, Maryland: The Vestry of Ascension Parish, The 27
178+Vestry of Chevy Chase Parish, The Vestry of Christ Church Parish, The Vestry of Church 28
179+of Our Saviour, The Vestry of Good Shepherd Parish, The Vestry of Norwood Parish, The 29
180+Vestry of Potomac Parish, The Vestry of Prince George’s Parish, The Vestry of Redeemer 30
181+Parish, The Vestry of Silver Spring Parish, The Vestry of Sligo Parish, The Vestry of St. 31
182+Anne’s Parish, The Vestry of St. Bartholomew’s Parish, The Vestry of St. Dunstan’s Parish, 32
183+The Vestry of St. James’ Parish, The Vestry of St. John’s Church, The Vestry of St. Luke’s 33
184+Church, The Vestry of St. Mark’s Parish, The Vestry of St. Nicholas’ Parish, The Vestry of 34
185+St. Peter’s Parish, The Vestry of Transfiguration Parish, The Vestry of Trinity Parish, and 35
186+The Vestry of Wheaton Parish; 36
206187
207-Approved by the Governor, May 16, 2024.
188+ (2) in Prince George’s County, Maryland: The Vestry of Adelphi Parish, 37
189+The Vestry of Baden Parish, The Vestry of Clinton Parish, The Vestry of Epiphany Parish, 38
190+The Vestry of Glenn Dale Parish, The Vestry of Holy Trinity Parish, The Vestry of King 39 SENATE BILL 429 5
191+
192+
193+George’s Parish, The Vestry of Queen Anne Parish, The Vestry of St. Andrew’s Parish, The 1
194+Vestry of St. Barnabas’ Parish, The Vestry of St. Christopher’s Parish, The Vestry of St. 2
195+John’s Parish, The Vestry of St. Matthew’s Parish, The Vestry of St. Paul’s Parish, The 3
196+Vestry of St. Philip’s Parish, The Vestry of St. Thomas’ Parish, and The Vestry of Zion 4
197+Parish; 5
198+
199+ (3) in Charles County, Maryland: The Vestry of Durham Parish, The 6
200+Vestry of Piney Parish, The Vestry of Port Tobacco Parish, The Vestry of St. James’ Parish, 7
201+The Vestry of Trinity Parish, and The Vestry of William and Mary Parish; and 8
202+
203+ (4) in St. Mary’s County, Maryland: The Vestry of All Faith Parish, The 9
204+Vestry of All Saints’ Parish, The Vestry of King and Queen Parish, The Vestry of 10
205+Resurrection Parish, The Vestry of St. Andrew’s Parish, and The Vestry of St. Mary’s 11
206+Parish. 12
207+
208+ SECTION 5. AND BE IT FURTHER ENACTED, That the bodies corporate named 13
209+in Section 4 of this Act shall be deemed properly incorporated and all persons, entities, and 14
210+instrumentalities, including the courts of this State and units of State government, shall 15
211+be estopped from denying the legal existence of those bodies corporate. 16
212+
213+ SECTION 6. AND BE IT FURTHER ENACTED, That this Act does not prohibit the 17
214+future dissolution or merger of the bodies corporate named in Section 4 of this Act pursuant 18
215+to the constitution and canons of the Convention of the Protestant Episcopal Church in the 19
216+Diocese of Washington and the applicable provisions of the laws of this State. 20
217+
218+ SECTION 7. AND BE IT FURTHER ENACTED, That, on or before December 31, 21
219+2024, the State Department of Assessments and Taxation shall report to the General 22
220+Assembly, in accordance with § 2–1257 of the State Government Article, on the impact of 23
221+repealing: 24
222+
223+ (1) the requirement in § 5–326 of the Corporations and Associations Article 25
224+that certain assets owned by any Methodist Church be held by the trustees of the church 26
225+in trust for the United Methodist Church; and 27
226+
227+ (2) the restrictions in § 5–327 of the Corporations and Associations Article 28
228+on a deed or conveyance executed before June 1, 1953, that does not include a trust clause. 29
229+
230+ SECTION 7. 8. 7. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
231+July 1, 2024. 31