1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb0103* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 103 |
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8 | 8 | | N1, P1 5lr1494 |
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9 | 9 | | (PRE–FILED) CF SB 154 |
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10 | 10 | | By: Delegate Rosenberg |
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11 | 11 | | Requested: October 30, 2024 |
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12 | 12 | | Introduced and read first time: January 8, 2025 |
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13 | 13 | | Assigned to: Appropriations and Judiciary |
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14 | 14 | | |
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15 | 15 | | A BILL ENTITLED |
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16 | 16 | | |
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17 | 17 | | AN ACT concerning 1 |
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18 | 18 | | |
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19 | 19 | | Access to Counsel in Evictions – Task Force Termination and Special Fund 2 |
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20 | 20 | | |
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21 | 21 | | FOR the purpose of making permanent a requirement that the Comptroller distribute a 3 |
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22 | 22 | | certain amount of certain abandoned property funds to the Access to Counsel in 4 |
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23 | 23 | | Evictions Special Fund; making permanent a requirement that the Governor make 5 |
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24 | 24 | | a certain appropriation from the Access to Counsel in Evictions Special Fund to the 6 |
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25 | 25 | | Maryland Legal Services Corporation; terminating the Access to Counsel in 7 |
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26 | 26 | | Evictions Task Force on a certain date; and generally relating to the Access to 8 |
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27 | 27 | | Counsel in Evictions Special Fund and the Access to Counsel in Evictions Task Force. 9 |
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28 | 28 | | |
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29 | 29 | | BY repealing and reenacting, with amendments, 10 |
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30 | 30 | | Article – Commercial Law 11 |
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31 | 31 | | Section 17–317 12 |
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32 | 32 | | Annotated Code of Maryland 13 |
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33 | 33 | | (2013 Replacement Volume and 2024 Supplement) 14 |
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34 | 34 | | |
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35 | 35 | | BY repealing and reenacting, with amendments, 15 |
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36 | 36 | | Article – Real Property 16 |
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37 | 37 | | Section 8–901 and 8–909 17 |
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38 | 38 | | Annotated Code of Maryland 18 |
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39 | 39 | | (2023 Replacement Volume and 2024 Supplement) 19 |
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40 | 40 | | |
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41 | 41 | | BY repealing 20 |
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42 | 42 | | Article – Real Property 21 |
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43 | 43 | | Section 8–908 22 |
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44 | 44 | | Annotated Code of Maryland 23 |
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45 | 45 | | (2023 Replacement Volume and 2024 Supplement) 24 |
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46 | 46 | | |
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47 | 47 | | BY repealing and reenacting, with amendments, 25 |
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48 | 48 | | Article – Commercial Law 26 2 HOUSE BILL 103 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | Section 17–317(a)(5) 1 |
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52 | 52 | | Annotated Code of Maryland 2 |
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53 | 53 | | (2013 Replacement Volume and 2024 Supplement) 3 |
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54 | 54 | | (As enacted by Section 1 of this Act) 4 |
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55 | 55 | | |
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56 | 56 | | BY renumbering 5 |
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57 | 57 | | Article – Real Property 6 |
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58 | 58 | | Section 8–909 through 8–911 7 |
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59 | 59 | | to be Section 8–908 through 8–910, respectively 8 |
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60 | 60 | | Annotated Code of Maryland 9 |
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61 | 61 | | (2023 Replacement Volume and 2024 Supplement) 10 |
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62 | 62 | | |
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63 | 63 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11 |
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64 | 64 | | That the Laws of Maryland read as follows: 12 |
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65 | 65 | | |
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66 | 66 | | Article – Commercial Law 13 |
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67 | 67 | | |
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68 | 68 | | 17–317. 14 |
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69 | 69 | | |
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70 | 70 | | (a) (1) (i) All funds received under this title, including the proceeds of the 15 |
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71 | 71 | | sale of abandoned property under § 17–316 of this subtitle, shall be credited by the 16 |
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72 | 72 | | Administrator to a special fund. 17 |
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73 | 73 | | |
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74 | 74 | | (ii) The Administrator shall retain in the special fund at the end of 18 |
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75 | 75 | | each fiscal year, from the proceeds received, an amount not to exceed $50,000, from which 19 |
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76 | 76 | | sum the Administrator shall pay any claim allowed under this title. 20 |
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77 | 77 | | |
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78 | 78 | | (2) After deducting all costs incurred in administering this title from the 21 |
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79 | 79 | | remaining net funds the Administrator shall distribute $8,000,000 to the Maryland Legal 22 |
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80 | 80 | | Services Corporation Fund established under § 11–402 of the Human Services Article. 23 |
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81 | 81 | | |
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82 | 82 | | (3) (i) Subject to subparagraph (ii) of this paragraph, the Administrator 24 |
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83 | 83 | | shall distribute all unclaimed money from judgments of restitution under Title 11, Subtitle 25 |
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84 | 84 | | 6 of the Criminal Procedure Article to the State Victims of Crime Fund established under 26 |
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85 | 85 | | § 11–916 of the Criminal Procedure Article to assist victims of crimes and delinquent acts 27 |
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86 | 86 | | to protect the victims’ rights as provided by law. 28 |
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87 | 87 | | |
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88 | 88 | | (ii) If a victim entitled to restitution that has been treated as 29 |
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89 | 89 | | abandoned property under § 11–614 of the Criminal Procedure Article is located after the 30 |
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90 | 90 | | money has been distributed under this paragraph, the Administrator shall reduce the next 31 |
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91 | 91 | | distribution to the State Victims of Crime Fund by the amount recovered by the victim. 32 |
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92 | 92 | | |
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93 | 93 | | (4) For fiscal year 2025 and each fiscal year thereafter, after making the 33 |
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94 | 94 | | distributions required under paragraphs (2) and (3) of this subsection, the Administrator 34 |
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95 | 95 | | shall distribute $500,000 from the remaining net funds to the Tax Clinics for Low–Income 35 |
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96 | 96 | | Marylanders Fund established under § 1–207 of the Tax – General Article. 36 |
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97 | 97 | | HOUSE BILL 103 3 |
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98 | 98 | | |
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99 | 99 | | |
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100 | 100 | | (5) [For each of fiscal years 2024 through 2027, after] AFTER making the 1 |
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101 | 101 | | distributions required under paragraphs (2) through (4) of this subsection, the 2 |
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102 | 102 | | Administrator shall distribute $14,000,000 from the remaining net funds to the Access to 3 |
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103 | 103 | | Counsel in Evictions Special Fund under § 8–909 of the Real Property Article. 4 |
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104 | 104 | | |
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105 | 105 | | (6) After making the distributions required under paragraphs (2) through 5 |
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106 | 106 | | (5) of this subsection, the Administrator shall distribute the remaining net funds not 6 |
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107 | 107 | | retained under paragraph (1) of this subsection to the General Fund of the State. 7 |
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108 | 108 | | |
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109 | 109 | | (b) (1) Before making the distribution, the Administrator shall record the 8 |
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110 | 110 | | name and last known address, if any, of the owners of funds so distributed and the type of 9 |
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111 | 111 | | property which the funds distributed represent. 10 |
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112 | 112 | | |
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113 | 113 | | (2) The record shall be available for public inspection during reasonable 11 |
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114 | 114 | | business hours by any person who claims a legal interest in any property held by the 12 |
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115 | 115 | | Administrator, provided that the person gives prior notice to the Administrator. 13 |
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116 | 116 | | |
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117 | 117 | | Article – Real Property 14 |
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118 | 118 | | |
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119 | 119 | | 8–909. 15 |
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120 | 120 | | |
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121 | 121 | | (a) There is an Access to Counsel in Evictions Special Fund. 16 |
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122 | 122 | | |
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123 | 123 | | (b) The purpose of the Fund is to provide funding to fully implement access to 17 |
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124 | 124 | | legal representation in evictions and other related proceedings in the State. 18 |
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125 | 125 | | |
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126 | 126 | | (c) MLSC shall administer the Fund. 19 |
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127 | 127 | | |
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128 | 128 | | (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 20 |
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129 | 129 | | the State Finance and Procurement Article. 21 |
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130 | 130 | | |
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131 | 131 | | (2) The State Treasurer shall hold the Fund separately, and the 22 |
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132 | 132 | | Comptroller shall account for the Fund. 23 |
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133 | 133 | | |
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134 | 134 | | (e) The Fund consists of: 24 |
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135 | 135 | | |
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136 | 136 | | (1) Money received by the Division of Consumer Protection in the Office of 25 |
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137 | 137 | | the Attorney General from any final settlement or agreement with or judgment against a 26 |
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138 | 138 | | party relating to an investigation or enforcement of the Maryland Consumer Protection Act 27 |
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139 | 139 | | for an unfair, abusive, or deceptive trade practice for rental residential property, excluding 28 |
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140 | 140 | | any restitution and the costs of the action the Attorney General is entitled to recover; 29 |
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141 | 141 | | |
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142 | 142 | | (2) Money appropriated in the State budget to the Fund; 30 |
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143 | 143 | | |
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144 | 144 | | (3) Money distributed to the Fund under § 17–317 of the Commercial Law 31 |
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145 | 145 | | Article; 32 |
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146 | 146 | | 4 HOUSE BILL 103 |
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147 | 147 | | |
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148 | 148 | | |
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149 | 149 | | (4) Interest earnings of the Fund; and 1 |
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150 | 150 | | |
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151 | 151 | | (5) Any other money from any other source accepted for the benefit of the 2 |
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152 | 152 | | Fund. 3 |
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153 | 153 | | |
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154 | 154 | | (f) The Fund may be used only for: 4 |
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155 | 155 | | |
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156 | 156 | | (1) Services provided by a designated organization or activity by a 5 |
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157 | 157 | | community group to implement the Program as provided in this subtitle, including all costs 6 |
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158 | 158 | | associated with required legal representation in any proceeding and any outreach and 7 |
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159 | 159 | | education activities; 8 |
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160 | 160 | | |
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161 | 161 | | (2) If a local jurisdiction enacts a program authorized under this subtitle, 9 |
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162 | 162 | | services provided by the local jurisdiction to implement access to counsel in eviction 10 |
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163 | 163 | | proceedings as provided for in this subtitle, including all costs associated with required 11 |
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164 | 164 | | legal representation in any proceeding and any outreach and education activities; 12 |
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165 | 165 | | |
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166 | 166 | | (3) Administrative expenses of MLSC; and 13 |
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167 | 167 | | |
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168 | 168 | | (4) Expenses related to the study and evaluation of: 14 |
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169 | 169 | | |
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170 | 170 | | (i) Services and activities provided under this subtitle; and 15 |
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171 | 171 | | |
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172 | 172 | | (ii) Funding amounts and sources necessary to fully effectuate 16 |
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173 | 173 | | access to counsel in eviction proceedings. 17 |
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174 | 174 | | |
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175 | 175 | | (g) (1) The State Treasurer shall invest the money of the Fund in the same 18 |
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176 | 176 | | manner as other State money may be invested. 19 |
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177 | 177 | | |
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178 | 178 | | (2) Any interest earnings of the Fund shall be credited to the Fund. 20 |
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179 | 179 | | |
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180 | 180 | | (h) (1) Expenditures from the Fund may be made only in accordance with the 21 |
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181 | 181 | | State budget. 22 |
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182 | 182 | | |
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183 | 183 | | (2) For each [of fiscal years 2024 through 2027] FISCAL YEAR , the 23 |
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184 | 184 | | Governor shall include in the annual budget bill an appropriation of $14,000,000 from the 24 |
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185 | 185 | | Fund to MLSC. 25 |
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186 | 186 | | |
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187 | 187 | | (i) Money expended from the Fund is supplemental to and is not intended to take 26 |
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188 | 188 | | the place of funding that otherwise would be appropriated for civil legal services from any 27 |
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189 | 189 | | other source. 28 |
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190 | 190 | | |
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191 | 191 | | SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 29 |
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192 | 192 | | as follows: 30 |
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193 | 193 | | |
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194 | 194 | | Article – Real Property 31 |
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195 | 195 | | HOUSE BILL 103 5 |
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196 | 196 | | |
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197 | 197 | | |
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198 | 198 | | 8–901. 1 |
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199 | 199 | | |
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200 | 200 | | (a) In this subtitle the following words have the meanings indicated. 2 |
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201 | 201 | | |
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202 | 202 | | (b) “Community group” means a nonprofit entity with the capacity to conduct 3 |
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203 | 203 | | tenant outreach and provide engagement, education, and information. 4 |
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204 | 204 | | |
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205 | 205 | | (c) “Covered individual” means an individual who: 5 |
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206 | 206 | | |
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207 | 207 | | (1) Occupies a residential property under a claim of legal right other than 6 |
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208 | 208 | | owner, including a tenant in a building owned, operated, or managed by a public housing 7 |
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209 | 209 | | authority; and 8 |
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210 | 210 | | |
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211 | 211 | | (2) Is a member of a household with an income that is not greater than 50% 9 |
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212 | 212 | | of the median income, adjusted for household size, in the State as determined by the United 10 |
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213 | 213 | | States Department of Health and Human Services or its successor. 11 |
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214 | 214 | | |
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215 | 215 | | (d) “Designated organization” means a nonprofit entity designated by MLSC with 12 |
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216 | 216 | | the ability to provide legal representation to covered individuals. 13 |
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217 | 217 | | |
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218 | 218 | | (e) “Fund” means the Access to Counsel in Evictions Special Fund. 14 |
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219 | 219 | | |
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220 | 220 | | (f) “Legal representation” includes all representation by an attorney beyond brief 15 |
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221 | 221 | | legal advice and is not limited to the formal entry of appearance in court. 16 |
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222 | 222 | | |
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223 | 223 | | (g) “MLSC” means the Maryland Legal Services Corporation. 17 |
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224 | 224 | | |
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225 | 225 | | (h) “Program” means the Access to Counsel in Evictions Program. 18 |
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226 | 226 | | |
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227 | 227 | | [(i) “Task Force” means the Access to Counsel in Evictions Task Force.] 19 |
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228 | 228 | | |
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229 | 229 | | [8–908. 20 |
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230 | 230 | | |
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231 | 231 | | (a) There is an Access to Counsel in Evictions Task Force. 21 |
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232 | 232 | | |
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233 | 233 | | (b) (1) The Task Force consists of up to 15 members appointed by the Office of 22 |
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234 | 234 | | the Attorney General and shall include: 23 |
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235 | 235 | | |
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236 | 236 | | (i) At least two representatives of the Maryland State Bar 24 |
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237 | 237 | | Association; 25 |
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238 | 238 | | |
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239 | 239 | | (ii) At least two representatives of tenant advocacy groups or 26 |
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240 | 240 | | designated organizations; 27 |
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241 | 241 | | |
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242 | 242 | | (iii) At least two representatives of the Judiciary; 28 |
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243 | 243 | | |
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244 | 244 | | (iv) At least two representatives of community groups; 29 6 HOUSE BILL 103 |
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245 | 245 | | |
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246 | 246 | | |
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247 | 247 | | |
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248 | 248 | | (v) At least two representatives of landlords; 1 |
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249 | 249 | | |
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250 | 250 | | (vi) Representatives of MLSC; and 2 |
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251 | 251 | | |
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252 | 252 | | (vii) Tenants and other interested citizens. 3 |
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253 | 253 | | |
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254 | 254 | | (2) At least three members of the Task Force must be tenants whose 4 |
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255 | 255 | | income does not exceed 50% of the State median income adjusted for household size. 5 |
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256 | 256 | | |
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257 | 257 | | (c) The Attorney General shall designate the chair of the Task Force. 6 |
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258 | 258 | | |
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259 | 259 | | (d) The Office of the Attorney General shall provide staff for the Task Force. 7 |
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260 | 260 | | |
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261 | 261 | | (e) A member of the Task Force: 8 |
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262 | 262 | | |
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263 | 263 | | (1) May not receive compensation as a member of the Task Force; but 9 |
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264 | 264 | | |
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265 | 265 | | (2) Is entitled to reimbursement for expenses under the Standard State 10 |
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266 | 266 | | Travel Regulations, as provided in the State budget. 11 |
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267 | 267 | | |
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268 | 268 | | (f) The Task Force shall: 12 |
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269 | 269 | | |
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270 | 270 | | (1) Evaluate the provision of services under this subtitle, including the 13 |
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271 | 271 | | performance of designated organizations and community groups; 14 |
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272 | 272 | | |
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273 | 273 | | (2) Study potential funding sources; and 15 |
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274 | 274 | | |
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275 | 275 | | (3) Make recommendations to improve the implementation of this subtitle, 16 |
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276 | 276 | | including necessary policy and statutory changes. 17 |
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277 | 277 | | |
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278 | 278 | | (g) On or before January 1, 2022, and each January 1 thereafter, the Task Force 18 |
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279 | 279 | | shall report its findings and recommendations to the Governor and, in accordance with § 19 |
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280 | 280 | | 2–1257 of the State Government Article, the General Assembly. 20 |
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281 | 281 | | |
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282 | 282 | | (h) The Task Force may apply for grants from public and private entities to carry 21 |
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283 | 283 | | out the duties of the Task Force.] 22 |
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284 | 284 | | |
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285 | 285 | | SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 23 |
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286 | 286 | | as follows: 24 |
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287 | 287 | | |
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288 | 288 | | Article – Commercial Law 25 |
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289 | 289 | | |
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290 | 290 | | 17–317. 26 |
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291 | 291 | | |
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292 | 292 | | (a) (5) After making the distributions required under paragraphs (2) through 27 |
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293 | 293 | | (4) of this subsection, the Administrator shall distribute $14,000,000 from the remaining 28 HOUSE BILL 103 7 |
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294 | 294 | | |
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295 | 295 | | |
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296 | 296 | | net funds to the Access to Counsel in Evictions Special Fund under [§ 8–909] § 8–908 of 1 |
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297 | 297 | | the Real Property Article. 2 |
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298 | 298 | | |
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299 | 299 | | SECTION 4. AND BE IT FURTHER ENACTED, That Section(s) 8 –909 through 3 |
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300 | 300 | | 8–911 of Article – Real Property of the Annotated Code of Maryland be renumbered to be 4 |
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301 | 301 | | Section(s) 8–908 through 8–910, respectively. 5 |
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302 | 302 | | |
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303 | 303 | | SECTION 5. AND BE IT FURTHER ENA CTED, That Sections 2, 3, and 4 of this 6 |
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304 | 304 | | Act shall take effect January 31, 2026. 7 |
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305 | 305 | | |
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306 | 306 | | SECTION 6. AND BE IT FURTHER ENACTED, That, except as provided in Section 8 |
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307 | 307 | | 5 of this Act, this Act shall take effect October 1, 2025. 9 |
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308 | 308 | | |
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