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.
*sb0586*
SENATE BILL 586
C1 5lr3020
HB 1382/24 – ECM
By: Senator Muse
Introduced and read first time: January 23, 2025
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 26, 2025
CHAPTER ______
AN ACT concerning 1
Corporations and Associations – Methodist Church Trust Requirement – Repeal 2
Repeal and Disaffiliation Requirements 3
FOR the purpose of repealing a requirement that the assets of any Methodist Church be 4
held in trust for the United Methodist Church and be subject to the control of the 5
United Methodist Church; repealing a certain provision of law providing that the 6
absence of a trust clause in any deed or conveyance executed before a certain date 7
does not exclude certain local churches from certain provisions of law or 8
responsibilities related to the United Methodist Church; providing that a local 9
church that disaffiliates from the United Methodist Conference shall retain 10
ownership of its real property, subject to a certain reimbursement requirement; and 11
generally relating to Methodist churches. 12
BY repealing 13
Article – Corporations and Associations 14
Section 5–326 and 5–327 15
Annotated Code of Maryland 16
(2014 Replacement Volume and 2024 Supplement) 17
BY adding to 18
Article – Corporations and Associations 19
Section 5–326 20
Annotated Code of Maryland 21
(2014 Replacement Volume and 2024 Supplement) 22
2 SENATE BILL 586
BY renumbering 1
Article – Corporations and Associations 2
Section 5–328 3
to be Section 5–326 5–327 4
Annotated Code of Maryland 5
(2014 Replacement Volume and 2024 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Corporations and Associations 9
[5–326. 10
All assets owned by any Methodist Church, including any former Methodist 11
Episcopal Church, Methodist Protestant Church, Methodist Episcopal Church, South, the 12
Washington Methodist Conference, or Evangelical United Brethren Church, whether 13
incorporated, unincorporated, or abandoned: 14
(1) Shall be held by the trustees of the church in trust for the United 15
Methodist Church; and 16
(2) Are subject to the discipline, usage, and ministerial appointments of the 17
United Methodist Church, as from time to time authorized and declared by the general 18
conference of that church.] 19
[5–327. 20
The absence of a trust clause in any deed or other conveyance executed before June 21
1, 1953, does not relieve or exclude a local church in any way from its Methodist 22
connectional responsibilities or from the provisions of this part and does not absolve a local 23
congregation or board of trustees of its responsibility to the United Methodist Church, if 24
such an intent of the founders or the later congregations and boards of trustees is indicated 25
by: 26
(1) The conveyance of the assets to the trustees of the local church or any 27
of its predecessors; 28
(2) The use of the name, customs, and polity of the United Methodist 29
Church in such a way as to be known to the community as part of this denomination; or 30
(3) The acceptance of the pastorate of ministers appointed by a bishop of 31
the United Methodist Church or employed by the superintendent of the district in which 32
the local church is located.] 33
5–326. 34
SENATE BILL 586 3
(A) SUBJECT TO SUBSECTION S (B) AND (C) OF THIS SECTION , A LOCAL 1
CHURCH MAY DISAFFILI ATE FROM THE UNITED METHODIST CONFERENCE AND 2
RETAIN OWNERSHIP OF ITS PROPERTY. 3
(B) A DISAFFILIATING LOCAL CHURCH SHALL REIMBUR SE THE UNITED 4
METHODIST CONFERENC E FOR FINANCIAL INVE STMENTS MADE BY THE UNITED 5
METHODIST CONFERENCE FOR THE AC QUISITION, MAINTENANCE , OR 6
IMPROVEMENT OF REAL PROPERTY USED BY THE LOCAL CHURCH IN ACCO RDANCE 7
WITH SUBSECTION (C) OF THIS SECTION. 8
(C) (1) THE UNITED METHODIST CONFERENCE SHAL L PROVIDE A 9
DISAFFILIATING LOCAL CHURCH WITH A FULL A ND TRANSPARENT ACCOU NTING OF 10
ALL FUNDS THE UNITED METHODIST CONFERENCE HAS CONTRI BUTED FOR THE 11
ACQUISITION, MAINTENANCE , AND IMPROVEMENT OF T HE REAL PROPERTY USE D BY 12
THE LOCAL CHURCH FRO M WHICH THE AMOUN T OF THE REIMBURSEME NT 13
REQUIRED UNDER SUBSE CTION (B) SHALL BE DETERMINED . 14
(2) A DISAFFILIATING LOCAL CHURCH MAY NOT BE RE QUIRED TO 15
REIMBURSE THE UNITED METHODIST CONFERENCE FOR ANY AM OUNTS 16
ATTRIBUTABLE TO FINA NCIAL INVESTMENTS FO R THE ACQUISITION , 17
MAINTENANCE, OR RENOVATION OF REA L PROPERTY MADE BY T HE LOCAL CHURCH . 18
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 5 –328 of Article – 19
Corporations and Associations of the Annotated Code of Maryland be renumbered to be 20
Section(s) 5–326 5–327. 21
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2025. 23
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.