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. *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 Ziegler, Allen, and Boyce Introduced and read first time: January 31, 2025 Assigned to: Environment and Transportation Committee Report: Favorable with amendments House action: Adopted Read second time: March 15, 2025 CHAPTER ______ 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 certain registration and a certificate of insurance naming the landlord certain 11 entities as an additional insured insureds on policies under certain circumstances; 12 requiring a tenant to notify a landlord if the tenant ceases operation of a family child 13 care home; authorizing a landlord to require a certain tenant to purchase a certain 14 insurance policy; requiring a tenant to cease the operation of the family child care 15 home under certain circumstances; and generally relating to the operation of family 16 child care homes on residential rental property. 17 BY repealing and reenacting, without amendments, 18 Article – Education 19 Section 9.5–301(a) and (e) 20 Annotated Code of Maryland 21 (2022 Replacement Volume and 2024 Supplement) 22 2 HOUSE BILL 911 BY repealing and reenacting, with amendments, 1 Article – Real Property 2 Section 8–203(b) 3 Annotated Code of Maryland 4 (2023 Replacement Volume and 2024 Supplement) 5 BY adding to 6 Article – Real Property 7 Section 8–220 8 Annotated Code of Maryland 9 (2023 Replacement Volume and 2024 Supplement) 10 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11 That the Laws of Maryland read as follows: 12 Article – Education 13 9.5–301. 14 (a) In this subtitle the following words have the meanings indicated. 15 (e) “Family child care home” means a residence in which family child care is 16 provided for up to eight children. 17 Article – Real Property 18 8–203. 19 (b) (1) Except as provided in paragraph (2) of this subsection, a landlord may 20 not impose a security deposit in excess of the equivalent of 1 month’s rent per dwelling unit, 21 regardless of the number of tenants. 22 (2) A landlord may impose a security deposit in an amount equivalent to 23 up to 2 months’ rent if: 24 (i) 1. The tenant is eligible and has qualified for utility 25 assistance through the Department of Human Services; 26 [(ii)] 2. The lease agreement requires that the tenant make 27 payments for utility services directly to the landlord; and 28 [(iii)] 3. The tenant and landlord agree in writing to the amount of 29 the security deposit; OR 30 HOUSE BILL 911 3 (II) THE TENANT OPERATES O R PLANS TO OPERATE A FAMILY 1 CHILD CARE HOME REGI STERED UNDER TITLE 9.5, SUBTITLE 3 OF THE EDUCATION 2 ARTICLE ON THE LEASED PREMISES. 3 (3) If a landlord violates paragraph (1) of this subsection, the tenant may 4 recover up to three times the extra amount charged, plus reasonable attorney’s fees. 5 (4) An action under this section may be brought at any time during the 6 tenancy or within 2 years after its termination. 7 8–220. 8 (A) IN THIS SECTION , “FAMILY CHILD CARE HO ME” HAS THE MEANING 9 STATED IN § 9.5–301 OF THE EDUCATION ARTICLE. 10 (B) THIS SECTION APPLIES ONLY TO THE LEAS E OF A SINGLE–FAMILY OR 11 MULTIFAMILY DWELLING TO A TENANT OR PROSPECTIVE TENAN T FOR USE OF THE 12 LEASED PREMISES AS A FAMILY CHILD CARE HO ME. 13 (C) (1) THIS SUBSECTION DOES NOT APPLY TO: 14 (I) THE LEASE OF THE FOLLOWING RESIDE NTIAL PROPERTY IF 15 ONE OF THE DW ELLING UNITS IS AN OWNER–OCCUPIED SINGLE–FAMILY DWELLING : 16 1. A SINGLE–FAMILY DWELLING ; OR 17 2. A MULTIFAMILY DWELLING WITH FOUR OR FEWER 18 DWELLING UNITS ; OR 19 (II) PROHIBITIONS AGAINST OR RESTRICTIONS ON F AMILY 20 CHILD CARE HOMES IMP OSED BY THE: 21 1. AGE–RELATED RESTRICTIONS OF A HOMEOWNERS 22 ASSOCIATION; OR 23 2. THE GOVERNING DOCUMENTS OR BYLAWS OF A 24 CONDOMINIUM OR COOPE RATIVE HOUSING CORPO RATION. 25 (2) A LANDLORD OF A SINGLE –FAMILY OR MULTIFAMILY DWELLING 26 MAY NOT PROHIBIT A T ENANT OR PROSPECTIVE TENANT FROM OPERATIN G A 27 FAMILY CHILD CARE HO ME ON THE LEASED PRE MISES BY: 28 (I) REFUSING TO OFFER THE PREMISES FOR LEASE , 29 NEGOTIATE THE LEASE OF THE PREMISES , OR LEASE THE PREMISE S; 30 4 HOUSE BILL 911 (II) IMPOSING UNR EASONABLE LIMITATION S OR CONDITIONS 1 ON THE USE OF THE LE ASED PREMISES AS A F AMILY CHILD CARE HOM E; OR 2 (III) OTHERWISE ACTING IN B AD FAITH TO PREVENT THE USE OF 3 THE LEASED PREMISES AS A FAMILY CHILD CA RE HOME. 4 (D) A LANDLORD IS NOT LIAB LE FOR ANY ACT OR OMISSION OF A TEN ANT 5 RELATING TO THE OPER ATION OF A FAMILY CH ILD CARE HOME . 6 (E) A TENANT SHALL NOTIFY A LANDLORD IN WRITIN G AT LEAST 30 60 DAYS 7 PRIOR TO OPERATING A FAMILY CHILD CARE HO ME ON THE LEASED PRE MISES. 8 (F) (1) AT THE REQUEST OF THE LANDLORD, A TENANT OPERATING O R 9 PLANNING TO OPERATE PRIOR TO COMMENCING T HE OPERATION OF A FAMILY 10 CHILD CARE HOME , A TENANT SHALL PROVIDE THE LANDLORD WITH : 11 (I) THE TENANT ’S REGISTRATION TO OP ERATE A FAMILY 12 CHILD CARE HOME ISSU ED UNDER TITLE 9.5, SUBTITLE 3 OF THE EDUCATION 13 ARTICLE; AND 14 (II) A A CERTIFICATE OF INSUR ANCE NAMING THE LANDLORD 15 FOLLOWING AS AN ADDITIONAL INSURED INSUREDS ON POLICIES RELATING TO THE 16 OPERATION OF THE FAM ILY CHILD CARE HOME : 17 1. THE LANDLORD ; AND 18 2. EACH ENTITY WITH A DIRECT OR IND IRECT 19 OWNERSHIP OR MEMBERS HIP INTEREST IN THE PROPERTY. 20 (2) IF THE TENANT CEASES OPERATION OF THE FAM ILY CHILD CARE 21 HOME, THE TENANT SHALL NOT IFY THE LANDLORD IMM EDIATELY. 22 (3) A LANDLORD MAY REQUIRE A TENANT TO PURCHASE A LIABILITY 23 INSURANCE POLICY WIT H COVERAGE LIMITS OF NOT MORE THAN $1,000,000 IN 24 CONNECTION WITH THE TENANT’S OPERATION OF A FAM ILY CHILD CARE HOME . 25 (4) IF THERE IS A LAPSE I N COVERAGE ON A POLI CY UNDER 26 PARAGRAPH (1)(II) OF THIS SUBSECTION , THE TENANT SHA LL CEASE OPERATION O F 27 THE FAMILY CHILD CAR E HOME FOR THE DURAT ION OF THE LAPSE . 28 (G) THIS SECTION DOES NOT LIMIT OR PREEMPT THE LOCAL ZONING 29 AUTHORITY OF A COUNT Y OR MUNICIPALITY . 30 HOUSE BILL 911 5 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed t o 1 apply only prospectively and may not be applied or interpreted to have any effect on or 2 application to any lease entered into before the effective date of this Act. 3 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 4 October 1, 2025. 5 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.