EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0535*
HOUSE BILL 535
C2, Q3 5lr2087
CF SB 963
By: Delegates Simmons, A. Johnson, Taylor, and Tomlinson Tomlinson, Alston,
Bagnall, Bhandari, Chisholm, Cullison, Guzzone, Hill, Hutchinson,
S. Johnson, Kaiser, Kerr, Kipke, Lopez, Martinez, M. Morgan, Pena–Melnyk,
Reilly, Rosenberg, Ross, Szeliga, Taveras, White Holland, Woods, and
Woorman
Introduced and read first time: January 22, 2025
Assigned to: Health and Government Operations and Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 6, 2025
CHAPTER ______
AN ACT concerning 1
Abandoned and Neglected Cemeteries Fund – Establishment and Income Tax 2
Checkoff 3
FOR the purpose of establishing the Abandoned and Neglected Cemeteries Fund; 4
establishing a certain income tax checkoff for voluntary contributions to the Fund; 5
requiring the Comptroller to include a checkoff on individual income tax return 6
forms for voluntary contributions to the Fund and to include certain information in 7
each individual income tax return package authorizing the Governor to include in 8
the annual budget bill a certain appropriation to the Fund; and generally relating to 9
the Abandoned and Neglected Cemeteries Fund. 10
BY repealing and reenacting, without amendments, 11
Article – Business Regulation 12
Section 1–101(a), (f), and (h) 13
Annotated Code of Maryland 14
(2024 Replacement Volume) 15
BY adding to 16
Article – Business Regulation 17
Section 5–805 18
Annotated Code of Maryland 19 2 HOUSE BILL 535
(2024 Replacement Volume) 1
BY repealing and reenacting, without amendments, 2
Article – State Finance and Procurement 3
Section 6–226(a)(2)(i) 4
Annotated Code of Maryland 5
(2021 Replacement Volume and 2024 Supplement) 6
BY repealing and reenacting, with amendments, 7
Article – State Finance and Procurement 8
Section 6–226(a)(2)(ii)204. and 205. 9
Annotated Code of Maryland 10
(2021 Replacement Volume and 2024 Supplement) 11
BY adding to 12
Article – State Finance and Procurement 13
Section 6–226(a)(2)(ii)206. 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Chapter 717 of the Acts of the General Assembly of 2024 18
Section 8(85) and (86) 19
BY adding to 20
Chapter 717 of the Acts of the General Assembly of 2024 21
Section 8(87) 22
BY adding to 23
Article – Tax – General 24
Section 2–120 and 10–804(m) 25
Annotated Code of Maryland 26
(2022 Replacement Volume and 2024 Supplement) 27
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 28
That the Laws of Maryland read as follows: 29
Article – Business Regulation 30
1–101. 31
(a) In this article the following words have the meanings indicated. 32
(f) “Department” means the Maryland Department of Labor. 33
(h) “Secretary” means the Secretary of Labor. 34
HOUSE BILL 535 3
5–805. 1
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(2) “ABANDONED CEMETERY ” MEANS A CEMETERY FOR WHICH: 4
(I) 1. THE ORGANIZATION ESTABLISHED TO ENGAG E IN THE 5
OPERATION OF THE CEM ETERY HAS BEEN TERMI NATED, HAS BEEN SUBJECT TO 6
ADMINISTRATIVE DISSO LUTION BY THE STATE, OR HAS OTHERWISE CEA SED TO 7
EXIST; AND 8
2. TITLE HAS NOT BEEN C ONVEYED; 9
(II) THERE IS NO PROPERTY OWNER LISTED IN THE RECORDS OF 10
THE STATE DEPARTMENT OF ASSESSMENTS AND TAXATION; 11
(III) THE PROPERTY HAS BEE N CONDEMNED ; OR 12
(IV) NO PERSON WHO IS LEG ALLY RESPONSIBLE FOR THE 13
PROPERTY CAN BE FOUN D AND LEGAL OWNERSHI P OF THE PROPERTY CA NNOT BE 14
DETERMINED . 15
(3) “FUND” MEANS THE ABANDONED AND NEGLECTED CEMETERIES 16
FUND. 17
(4) “NEGLECTED CEMETERY ” MEANS A CEMETERY FOR WHICH: 18
(I) TWO OR MORE CITATION S HAVE BEEN ISSUED B Y A COUNTY 19
OR MUNICIPAL CORPORA TION AGAINST THE PRO PERTY FOR FAILURE TO MAINTAIN 20
THE PROPERTY ; 21
(II) THE PROPERTY HAS FAL LEN INTO DISREPAIR D UE TO 22
NEGLECT AND INSUFFIC IENT MAINTENANCE ; 23
(III) THE PROPERTY HAS BEE N THE OBJECT OF VAND ALISM, 24
LOITERING, OR OTHER CRIMINAL CO NDUCT; OR 25
(IV) THERE HAS BEEN PHYSI CAL DESTRUCTION OR 26
DETERIORATION OF THE PROPERTY . 27
(B) THERE IS AN ABANDONED AND NEGLECTED CEMETERIES FUND. 28
4 HOUSE BILL 535
(C) THE PURPOSE OF THE FUND IS TO PROVIDE FO R THE CARE , 1
PRESERVATION , MAINTENANCE , AND RESTORATION OF A BANDONED AND 2
NEGLECTED CEMETERIES IN THE STATE. 3
(D) THE SECRETARY SHALL ADMINISTER THE FUND. 4
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 5
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 6
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 7
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 8
(F) THE FUND CONSISTS OF : 9
(1) THE NET PROCEEDS FRO M CONTRIBUTIONS UNDE R THE INCOME 10
TAX CHECKOFF ESTABLI SHED UNDER § 2–120 OF THE TAX – GENERAL ARTICLE; 11
(2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 12
(3) (2) INTEREST EARNINGS ; AND 13
(4) (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 14
FOR THE BENEFIT OF T HE FUND. 15
(G) (1) MONEY IN THE FUND MAY BE USED ONLY FOR THE COSTS OF : 16
(I) CARE, PRESERVATION , MAINTENANCE , AND RESTORATION 17
OF ABANDONED AND NEG LECTED CEMETERIES ; 18
(II) ADMINISTERING THE FUND THROUGH DISTRIBU TION TO AN 19
ADMINISTRATIVE COST ACCOUNT IN THE DEPARTMENT ; AND 20
(III) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 21
PROMOTING DONATIONS TO THE FUND THROUGH DISTRIBU TION TO A PROMOTION 22
COST ACCOUNT IN THE DEPARTMENT . 23
(2) NOT MORE THAN 5% OF THE NET PROCEEDS OF THE FUND MAY 24
BE USED UNDER PARAGR APH (1)(III) OF THIS SUBSECTION . 25
(H) (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
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 28
THE FUND. 29
HOUSE BILL 535 5
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 1
WITH THE STATE BUDGET . 2
(J) MONEY EXPENDED FROM T HE FUND FOR THE PRESERVA TION, CARE, 3
AND MAINTENANCE OF A BANDONED AND NEGLECT ED CEMETERIES IS 4
SUPPLEMENTAL TO AND IS NO T INTENDED TO TAKE T HE PLACE OF FUNDING THAT 5
OTHERWISE WOULD BE A PPROPRIATED FOR THE OFFICE OF CEMETERY 6
OVERSIGHT. 7
(K) THE GOVERNOR MAY INCLUDE IN THE ANNUAL BUDGET BILL AN 8
APPROPRIATION OF $250,000 TO THE FUND. 9
(K) (L) ON OR BEFO RE SEPTEMBER 30 EACH YEAR, THE SECRETARY 10
SHALL SUBMIT A REPOR T TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 11
2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ADMINISTRATIO N OF THE 12
FUND. 13
(L) (M) THE REPORT REQUIRED U NDER SUBSECTION (K) (L) OF THIS 14
SECTION SHALL INCLUDE : 15
(1) THE GROSS AMOUNT OF DONATIONS TO THE FUND; 16
(2) THE COSTS OF ADMINIS TRATION BY THE COMPTROLLER OF THE 17
INCOME TAX CHECKOFF SYSTEM; 18
(3) A DESCRIPTION OF PRO MOTIONAL EFFORTS UND ERTAKEN WITH 19
MONEY FROM THE FUND; AND 20
(4) (3) A DETAILED ACCOUNTING OF THE USE OF THE FUND. 21
Article – State Finance and Procurement 22
6–226. 23
(a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 24
through 2028. 25
2. Notwithstanding any other provision of law, and unless 26
inconsistent with a federal law, grant agreement, or other federal requirement or with the 27
terms of a gift or settlement agreement, net interest on all State money allocated by the 28
State Treasurer under this section to special funds or accounts, and otherwise entitled to 29
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 30
Fund of the State. 31
6 HOUSE BILL 535
(ii) The provisions of subparagraph (i) of this paragraph do not apply 1
to the following funds: 2
204. the Victims of Domestic Violence Program Grant Fund; 3
[and] 4
205. the Proposed Programs Collaborative Grant Fund; AND 5
206. THE ABANDONED AND NEGLECTED CEMETERIES 6
FUND. 7
Chapter 717 of the Acts of 2024 8
SECTION 8. AND BE IT FURTHER ENACTED, That, notwithstanding any other 9
provision of law, and unless inconsistent with a federal law, grant agreement, or other 10
federal requirement, or with the terms of a gift or settlement agreement, for fiscal years 11
2024 through 2028, net interest on all State money allocated by the State Treasurer under 12
§ 6–226 of the State Finance and Procurement Article to special funds or accounts, and 13
otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall 14
accrue to the General Fund of the State, with the exception of the following funds: 15
(85) the Bus Rapid Transit Fund; [and] 16
(86) the Transit–Oriented Development Capital Grant and Revolving Loan 17
Fund; AND 18
(87) THE ABANDONED AND NEGLECTED CEMETERIES FUND. 19
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 20
as follows: 21
Article – Tax – General 22
2–120. 23
(A) (1) THE COMPTROLLER SHALL INC LUDE ON THE INDIVIDU AL 24
INCOME TAX RETURN FO RM A CHECKOFF DESIGN ATED AS THE “ABANDONED AND 25
NEGLECTED CEMETERIES FUND”. 26
(2) THE CHECKOFF SHALL ST ATE THAT: 27
(I) THE INDIVIDUAL, OR EACH SPOUSE IN TH E CASE OF A JOINT 28
RETURN, MAY CONTRIBUTE TO TH E ABANDONED AND NEGLECTED CEMETERIES 29
FUND THE AMOUNT DESIG NATED BY THE INDIVID UAL; AND 30
HOUSE BILL 535 7
(II) 1. THE INDIVIDUAL SHALL DEDUCT THE AMOUNT OF THE 1
CONTRIBUTION FROM AN Y REFUND TO WHICH THE INDIVIDUAL IS ENTITLED; OR 2
2. IF THE INDIVIDUAL IS NOT ENTITLED TO A RE FUND, 3
THE INDIVIDUAL SHALL ADD THE AMOUNT OF TH E CONTRIBUTION TO TH E INCOME 4
TAX TO BE PAID WITH THE RETURN. 5
(3) THE COMPTROLLER SHALL INC LUDE, WITH THE INDIVIDUAL 6
INCOME TAX RETURN PACKAG E, A DESCRIPTION OF THE PURPOSES FOR WHICH T HE 7
ABANDONED AND NEGLECTED CEMETERIES FUND WAS ESTABLISHED AND THE 8
PURPOSES FOR WHICH T HE FUND MAY BE USED . 9
(B) THE COMPTROLLER SHALL : 10
(1) COLLECT THE CHECKOFF CONTRIBUTIONS AND AC COUNT TO THE 11
STATE TREASURER FOR THE MON EY COLLECTED ; 12
(2) FROM THE CONTRIBUTIO NS COLLECTED , DISTRIBUTE THE 13
AMOUNT NECESSARY TO ADMINISTER THE CHECK OFF TO AN ADMINISTRA TIVE COST 14
ACCOUNT; AND 15
(3) AFTER THE DISTRIBUTI ON UNDER ITEM (2) OF THIS SUBSECTION , 16
DISTRIBUTE THE REMAINDER OF THE MONEY COLLECT ED UNDER THIS SUBSEC TION 17
TO THE ABANDONED AND NEGLECTED CEMETERIES FUND ESTABLISHED UNDE R § 18
5–805 OF THE BUSINESS REGULATION ARTICLE. 19
10–804. 20
(M) AN INDIVIDUAL MAY DES IGNATE A CONTRIBUTIO N TO THE ABANDONED 21
AND NEGLECTED CEMETERIES FUND ESTABLISHED UNDE R § 5–805 OF THE 22
BUSINESS REGULATION ARTICLE BY THE CHECKO FF ON THE RETURN . 23
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 24
effect July 1, 2026, and shall be applicable to all taxable years beginning after December 25
31, 2025. 26
SECTION 4. 2. AND BE IT FURTHER ENACTED, That , except as provided in 27
Section 3 of this Act, this Act shall take effect October 1, 2025. 28