EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0911* HOUSE BILL 911 N1 5lr0947 By: Delegates Guyton, Bagnall, Davis, Foley, Guzzone, Healey, D. Jones, Lehman, R. Lewis, Lopez, McCaskill, Queen, Roberts, Ruth, Solomon, Taveras, Terrasa, White Holland, Woods, and Ziegler Introduced and read first time: January 31, 2025 Assigned to: Environment and Transportation A BILL ENTITLED AN ACT concerning 1 Real Property – Landlord and Tenant – Family Child Care Homes 2 FOR the purpose of authorizing a landlord to impose an increased security deposit if a 3 tenant operates or plans to operate a family child care home on the leased premises; 4 prohibiting a landlord of certain residential rental property from prohibiting or 5 unreasonably limiting the operation of a family child care home on the property; 6 providing that landlords of certain residential rental property are immune from civil 7 liability for the acts or omissions of a tenant relating to the operation of a family 8 child care home; requiring a tenant to notify a landlord prior to operating a family 9 child care home on the property; requiring a tenant to provide a landlord with a 10 certificate of insurance naming the landlord as an additional insured on policies 11 under certain circumstances; and generally relating to the operation of family child 12 care homes on residential rental property. 13 BY repealing and reenacting, without amendments, 14 Article – Education 15 Section 9.5–301(a) and (e) 16 Annotated Code of Maryland 17 (2022 Replacement Volume and 2024 Supplement) 18 BY repealing and reenacting, with amendments, 19 Article – Real Property 20 Section 8–203(b) 21 Annotated Code of Maryland 22 (2023 Replacement Volume and 2024 Supplement) 23 BY adding to 24 Article – Real Property 25 Section 8–220 26 2 HOUSE BILL 911 Annotated Code of Maryland 1 (2023 Replacement Volume and 2024 Supplement) 2 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3 That the Laws of Maryland read as follows: 4 Article – Education 5 9.5–301. 6 (a) In this subtitle the following words have the meanings indicated. 7 (e) “Family child care home” means a residence in which family child care is 8 provided for up to eight children. 9 Article – Real Property 10 8–203. 11 (b) (1) Except as provided in paragraph (2) of this subsection, a landlord may 12 not impose a security deposit in excess of the equivalent of 1 month’s rent per dwelling unit, 13 regardless of the number of tenants. 14 (2) A landlord may impose a security deposit in an amount equivalent to 15 up to 2 months’ rent if: 16 (i) 1. The tenant is eligible and has qualified for utility 17 assistance through the Department of Human Services; 18 [(ii)] 2. The lease agreement requires that the tenant make 19 payments for utility services directly to the landlord; and 20 [(iii)] 3. The tenant and landlord agree in writing to the amount of 21 the security deposit; OR 22 (II) THE TENANT OPERATES OR PLANS TO OPERATE A FAMILY 23 CHILD CARE HOME REGISTERED UNDER TITLE 9.5, SUBTITLE 3 OF THE EDUCATION 24 ARTICLE ON THE LEASED PREMISES . 25 (3) If a landlord violates paragraph (1) of this subsection, the tenant may 26 recover up to three times the extra amount charged, plus reasonable attorney’s fees. 27 (4) An action under this section may be brought at any time during the 28 tenancy or within 2 years after its termination. 29 8–220. 30 HOUSE BILL 911 3 (A) IN THIS SECTION , “FAMILY CHILD CARE HOME ” HAS THE MEANING 1 STATED IN § 9.5–301 OF THE EDUCATION ARTICLE. 2 (B) THIS SECTION APPLIES ONLY TO THE LEASE OF A SINGLE–FAMILY OR 3 MULTIFAMILY DWELLING TO A TENANT OR PROSPECTIVE TENAN T FOR USE OF THE 4 LEASED PREMISES AS A FAMILY CHILD CARE HOME . 5 (C) (1) THIS SUBSECTION DOES NOT APPLY TO: 6 (I) THE LEASE OF THE FOLLOWING RESIDENTIA L PROPERTY IF 7 ONE OF THE DWELLING UNITS IS OWNER–OCCUPIED: 8 1. A SINGLE–FAMILY DWELLING ; OR 9 2. A MULTIFAMILY DWELLING WITH FOUR OR FEWER 10 DWELLING UNITS ; OR 11 (II) PROHIBITIONS AGAINST OR RESTRICTIONS ON FAMILY 12 CHILD CARE HOMES IMPOSED BY THE GOVERNING DOCUME NTS OR BYLAWS OF A 13 CONDOMINIUM OR COOPERATIVE HOUSI NG CORPORATION . 14 (2) A LANDLORD OF A SINGLE–FAMILY OR MULTIFAMILY DWELLING 15 MAY NOT PROHIBIT A T ENANT OR PROSPECTIVE TENANT FROM OPERATIN G A 16 FAMILY CHILD CARE HO ME ON THE LEASED PRE MISES BY: 17 (I) REFUSING TO OFFER THE PREMISES FOR LEASE , 18 NEGOTIATE THE LEASE OF THE PREMISES , OR LEASE THE PREMISES ; 19 (II) IMPOSING UNREASONABLE LIMITATIONS OR CONDI TIONS 20 ON THE USE OF THE LE ASED PREMISES AS A F AMILY CHILD CARE HOM E; OR 21 (III) OTHERWISE ACTING IN B AD FAITH TO PREVENT THE USE O F 22 THE LEASED PREMISES AS A FAMILY CHILD CA RE HOME. 23 (D) A LANDLORD IS NOT LIABLE FOR ANY ACT OR OMISS ION OF A TENANT 24 RELATING TO THE OPERATION OF A FAMILY CHILD CARE HOME . 25 (E) A TENANT SHALL NOTIFY A LANDLORD IN WRITIN G AT LEAST 30 DAYS 26 PRIOR TO OPERATING A FAMILY CHILD CARE HOME ON THE LEASED P REMISES. 27 (F) AT THE REQUEST OF THE LANDLORD, A TENANT OPERATING OR 28 PLANNING TO OPERATE A FAMILY CHILD CARE HOME SHALL PROVIDE THE 29 4 HOUSE BILL 911 LANDLORD WITH A CERT IFICATE OF INSURANCE NAMING THE LANDLORD AS AN 1 ADDITIONAL INSURED O N POLICIES RELAT ING TO THE OPERATION OF THE FAMILY 2 CHILD CARE HOME . 3 (G) THIS SECTION DOES NOT LIMIT OR PREEMPT THE LOCAL ZONING 4 AUTHORITY OF A COUNTY OR MUNICIPALI TY. 5 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 6 apply only prospectively and may not be applied or interpreted to have any effect on or 7 application to any lease entered into before the effective date of this Act. 8 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 9 October 1, 2025. 10