.
Those bills not identified with a Chapter number have not yet been signed or
vetoed by the Governor.
This report is prepared on behalf of the Section of Real
Property, Planning and Zoning of the Maryland State Bar Association for use by
members of the Section. Section members may reprint, reproduce and use this
report provided that appropriate attribution to the Section is included. Any
other use of the report without the permission of the Section is prohibited.
This report is a summary and does not constitute legal advice by its author, the
Section or the MSBA.
I. REAL PROPERTY ARTICLE
Chapter 450 (SB 108) – Repeals and reenacts, with
amendments, Section 3-109 of the Real Property Article, Section 9-1011 of the
State Government Article, and Section 8-321 of the Transportation Article.
State Highway Plats – Filing and Recordation
Rather than filing state highway plats with court clerks in
each jurisdiction, state highway plats are now to be filed with the state
archives and electronically recorded. The archives might charge a reasonable fee
to the public not to exceed $3.00 for the cost of reproducing a copy of a plat. Effective
Date: October 1, 2002.
Chapter 401 (HB 997) – Repeals and reenacts, with
amendments, Section 8-110 of the Real Property Article and Section 14-816 of the
Tax Property Article.
Baltimore City – Ground Rents on Abandoned Property – Tax
Sales – Donations
Provides that reversion in a ground rent or a lease for 99
years, renewable forever, held on abandoned property may be donated to Baltimore
City or to an entity designated to Baltimore City. Also provides that if
abandoned property in Baltimore City subject to a ground rent or lease for a
term of 99 years is sold under Section 14-817(c) of the Tax Property Article
with a minimum bid less than the lien amount, it shall be sold by the collector
as the whole fee simple interest in the property. Effective Date: June 1,
2002.
Chapter 492 (HB 79) – Appeals and reenacts, with
amendments, Section 4.5-203 of the Business Regulation Article; repeals and
reenacts, with amendments, Sections 10-302, 10-303, 10-303.1, 10-601, 10-602,
10-604, 10-606 and 10-607 of the Real Property Article.
New Home Builders – Regulation
Bonds from home builders are now to be deposited with the
Consumer Protection Division of the Office of the Attorney General instead of
the Department of Labor, Licensing and Regulation. Requires that a builder who
does not participate in a new home warranty security plan provide written notice
to a purchaser, at the time of the purchase or construction contract, that (i)
builders of new homes in Maryland are required to be registered with the
Consumer Protection Division, (ii) without a new home warranty, the Owner may
only have limited implied warranties, and (iii) discloses any hazardous
materials or states that the builder is not making any representations about
hazardous materials if the builder. A builder who does participate in a home
warranty security plan has to make the disclosure or disclaimer regarding
hazardous materials set forth in clause (iii) above. Effective Date: July 1,
2002.
Chapter 60 (HB 352) – Adds Sections 10-703 and
14-117(f)(12) to the Real Property Article.
Real Property – Sales of Homes in Anne Arundel County –
Disclosure Requirements
Requires the following disclosure in contracts for the sale
of residential real property in Anne Arundel County.
"The buyer full understands that in order to become more
fully informed of the current and future land-use plans, facility plans, public
works, plans, school plans, or other plans affecting the property or area, the
buyer should consult with the appropriate county agency or county internet web
site for information regarding these plans." Effective Date: October 1,
2002.
Chapter 62 (HB 385) – Adds Section 11A–108.1 to
the Real Property Article.
Time Shares - Termination
The association of time share owners may amend its time share
instrument by two-thirds vote to prevent termination of time shares in the
project on the date that is otherwise set forth in the time share instruments.
Authorizing an association to provide that time share owners shall continue to
have exclusive rights to own, use, occupy enjoy, sell, mortgage, etc., and
retain special rights in their time shares even after the termination date set
forth in the time share instrument. Effective Date: October 1, 2002.
II. TAX PROPERTY ARTICLE
Chapter 445 (SB 40) (HB 355) - Repeals and reenacts,
with amendments, Section 9-104 of the Tax Property Article.
Property Tax – Homeowners’ Tax Credits
Creates an exception to the general deadline for filing for a
tax credit for up to 3 years for homeowners who are at least 70 years old as of
the taxable year for which a credit is sought. The former requirements that the
applicant show good cause and receipt of a tax credit in the prior year have
been deleted. Takes effect on July 1, 2002.
Chapter 119 (SB 96) – Repeals and reenacts, with
amendments, Section 6-203 of the Tax Property Article.
Property Tax – Municipal Corporations – Assessments of
Escaped Property
Repeals the authority of municipal corporations to assess
certain property for purposes of property taxation under certain circumstances.
Limits the authority of the municipal corporation to only assess property made
assessable under Title 8 of the Tax Property Article. Effective Date: October
1, 2002.
Chapter 121 (SB 98) – Repeals and reenacts, with
amendments, Section 66A4 of Article 88B – Department of State Police, Section
5-02(a) and 23-501 of the Education Article, and Section 8-101 of the Tax
Property Article.
State Aid – Property Values
Changes the definitions of "real property" and
"personal property" in (i) Article 88B – Department of State Police
and (ii) the Education Article by cross-reference to the definitions set forth
in Section 8-101(b) and 8-101(c) of the Tax Property Article. Changes the asset
valuation of certain real property that constitutes "operating real
property of public utilities" to 100% of its assessed value. Effective
Date: July 1, 2002 applicable to all payments of State and local taxes for
fiscal years beginning after June 30, 2003.
Chapter 311 (SB 438) (HB 337) – Repeals and
reenacts, with amendments, Section 9-312 of the Tax Property Article.
Frederick County – Property Tax Credits – Agricultural
Preservation Land and Farm Buildings.
Grants authority to Frederick County to grant certain tax
credits for agricultural land and farm buildings for up to 100% of county tax if
the property is subject to an easement or other interest that is permanently
conveyed to preserve the agricultural use of the property. Effective Date:
June 1, 2002. Applicable to all taxable years beginning after June 30, 2002.
Chapter 474 (SB 571) – Repeals and reenacts, with
amendments, Sections 8-101(b)(4) and 8-212 through 8-219 of the Tax Property
Article.
Property Tax Assessment – Country Clubs and Golf Courses
Permits special use value tax assessment rules for certain
qualifying golf courses similar to the rules that previously existed for country
clubs. Effective Date June 1, 2002.
Chapter 524 (HB 512) – Repeals and reenacts, with
amendments, Section 12–108(g) of the Tax Property Article.
Recordation Tax – Refinancing Instrument
Permits an agent of the original mortgagor to make the
affidavit required to qualify for the refinancing exemption. Previously, the
affidavit required could only be made by the original mortgagor. The affidavit
of such agent of the original mortgagor must be based on diligent inquiry and
must be true to the best of the agent’s knowledge, information and belief. Effective
Date: July 1, 2002.
Chapter 311 (SB 378) – Repeals and reenacts, with
amendments, Section 14-817(b) of the Tax Property Article.
Baltimore City – Tax Sales – High Bid Premium
Alters the calculation of the "high bid premium"
imposed on the sale of property at certain tax sales in Baltimore City. Effective
Date: date of enactment.
III. PUBLIC LOCAL LAWS
Chapter 10 (SB 189) – Adds Sections A1-101 through
A1-114 to Chapter 94 (the Charter of the Town of Marydale) of the Public Local
Laws of Maryland – Compilation of Municipal Charters.
Town of Marydale (Caroline County) – Urban Renewal
Authority for Slum Clearance.
Grants the Town of Marydale, Caroline County, authority to
carry out certain urban renewal projects. Effective Date: October 1, 2002.
Chapter 11 (SB 190) – Adds Sections A1-101 through
A1-114 to Chapter 74 (the Charter of the Town of Henderson), Public Local Laws
of Maryland – Compilation of Municipal Charters.
Town of Henderson (Caroline County) – Urban Renewal
Authority for Slum Clearance.
Grants the Town of Henderson, Caroline County, authority to
carry out certain urban renewal projects.
Chapter 12 (SB 191) – Adds Sections A1-101 through
A1-114 to Chapter 65 (the Charter of the Town of Goldsboro), Public Local Laws
of Maryland – Compilation of Municipal Charters. Effective Date: October 1,
2002.
Town of Goldsboro (Caroline County) – Urban Renewal
Authority for Slum Clearance.
Grants the Town of Goldsboro, Caroline County, authority to
carry out certain urban renewal projects.
Chapter 13 (SB 193) – Adds Sections A1-101 through
A1-114 to Chapter 68 (the Charter of the Town of Greensboro), Public Local Laws
of Maryland – Compilation of Municipal Charters. Effective Date: October 1,
2002
Town of Greensboro (Caroline County) – Urban Renewal
Authority for Slum Clearance.
Grants the Town of Greensboro, Caroline County, authority to
carry out certain urban renewal projects. Effective Date: October 1, 2002.
IV. COURTS AND JUDICIAL PROCEEDINGS ARTICLE
Chapter 454 (SB 199) (HB 114) – Repeals and
reenacts, with amendments, Section 2-502 of the Courts and Judicial Proceedings
Article.
Clerks of Circuit Courts – Auditors’ Reports and Bonds
– Recording and Indexing
Repeals the requirements for clerks of circuit courts to
record and index (i) auditor’s reports as to the disposition of proceeds of a
sale of property, after notification and (ii) all bonds of every nature given in
any court proceeding. Effective Date: June 1, 2002.
V. NATURAL RESOURCES ARTICLE
Chapter 264 (HB 1131) – Adds Sections 5-9B-01 through
5-9B-06 to the Natural Resources Article under a new subtitle "Subtitle 9B.
Local Land Preservation Programs."
Local Land Preservation Programs
Authorizes local governments to adopt local land preservation
programs for certain purposes (Effective October 1, 2002). Provides for
the creation and study of certain funding mechanisms (Effective on June 1,
2002), and permits each local jurisdiction to (i) establish the value of
easements, (ii) acquire property, (iii) buy and sell transferable development
rights, and (iv) use the funds to finance the program.
Chapter 431 (SB 326) (HB 528) – Repeals and
reenacts, with amendments, Sections 8-1808 and 8-1809(g) of the Natural
Resources Article.
Chesapeake Bay Critical Area Protection Program
Requires that local jurisdictions, in considering an
application for a variance, consider the reasonable use of the entire parcel or
lot for which variance is requested and not consider the existence of
non-conforming uses that may be comparable to the variances requested. Enacted
in response to recent decisions by the Maryland Court of Appeals in the cases of Belvoir Farms Homeowners Association v. North, 355 Md. 259, 734 A.2d 227
(1999); Light v. North, 356 Md. 31, 736 A.2d 1072 (1999); and Mastandrea
v. North, 361 Md. 107, 760 A.2d 677 (2000). Changes the length of time
between review of a jurisdiction’s program from four years to six years.
Applies only prospectively. Effective Date: June 1, 2002.
Chapter 225 (HB 470) – Repeals and reenacts, with
amendments, Section 5–1605(d), 5-1607(e), and 5-1610(c) of the Natural
Resources Article.
Forest Conservation
Alters a certain notice requirement after submission of
forest conservation plan, and requires the State to develop certain provisions
relating to the development of forest conservation program and to deposit
certain funds into the Forest Conservation Fund. Effective Date: October 1,
2002.
VI. AGRICULTURAL ARTICLE
Chapter 258 (SB 391) (HB 999) – Repeals and reenacts,
with amendments, Section 2-510(b) of the Agricultural Article.
Maryland Agricultural Land Preservation Foundation –
Easement Sale Application
Changes the deadline for easement sale applications from July
1 of each year to a date determined by the Maryland Agricultural Land
Preservation Foundation.
Chapter 473 (SB 544) (HB 810) – Adds Section 2-517
to the Agricultural Article .
Task Force to Study the Maryland Agricultural Land
Preservation Foundation.
Creates a task force to study and make recommendations
regarding the Maryland Agricultural Land Preservation Foundation and guidelines
for farm land preservation. Requires a report before June 1, 2004. Effective
Date: June 1, 2002. Terminates May 31, 2004.
VII. BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE
Chapter 226 (SB 417) (HB 485) – Repeals and
reenacts, with amendments, various provisions of Section 16 of the Business
Occupations and Professions Article; Repeals and reenacts, with amendments,
Section 8-403(b)(58) of the State Government Article.
State Commission of Real Estate Appraisers and Home
Inspectors – Sunset Extension and Program Evaluation.
Modifies the composition of the State Commission of Real
Estate Appraisers and Home Inspectors, and requires consideration of demographic
and geographic diversity when making appointments to the Commission. Increases
the renewal fee to $125.00. Extends the Sunset date to July 1, 2013. Effective
Date: July 1, 2002.
Chapter 583 (HB 704) – Repeals and reenacts, with
amendments, Section 17-322(b)(19) of the Business Occupations and Professions
Article and adds Section 17-527.2 and 17-527.3 to the Business Occupations and
Professions Article.
Business Occupations and Professions – Real Estate
Salespersons and Associate Real Estate Brokers – Use of Trade Name
Provides that a licensed real estate salesperson or licensed
associate real estate broker may provide broker services under a trade name that
has been approved by the Commission and requires any advertising meaningfully
and conspicuously include both the name or trade name of the salesperson or
associate broker and the full name of the business with which such person is
affiliated. Effective Date: October 1, 2002.
VIII. BUSINESS REGULATION ARTICLE
Chapter 176 (SB 595) – Repeals and reenacts, with
amendments, Section 8-302.1 of the Business Regulation Article and adds Section
8-308(g) to the Business Regulation Article.
Home Improvement Contractors – Required General
Liability Insurance
Requires licensed home improvement contractors maintain
general liability insurance in the amount of at least $50,000 and requires the
contractor to give written notice to the Home Improvement Commission of the
cancellation of its insurance at least 10 days before the effective date of the
cancellation. Effective Date: October 1, 2002.
Chapter 530 (HB 592) – Repeals and reenacts, with
amendments, Sections 4.5-203, 4.5-304 and 4.5-305 of the Business Regulation
Article.
Homebuilders’ Registration Fee
Establishes an initial registration fee of $600.00 for all
homebuilders under the Homebuilder Registration Unit and establishes different
renewal fees for different size homebuilders for renewal of registration. Effective
Date: January 1, 2003. Sunset 12/31/2005.
IX. TRANSPORTATION ARTICLE
Chapter 490 (HB 16) – Adds Section 21-1004(f) to the
Transportation Article.
Vehicle laws – Signs Designating Parking Spaces for
Individuals With Disabilities – Notice of Fine for Violation.
Any new sign erected after October 1, 2002 designating
parking spaces for disabled persons must state the maximum amount of the fine
for wrongly parking in a space marked for disabled or handicapped persons. Effective
Date: October 1, 2002.
X. INSURANCE ARTICLE
Chapter 369 (HB 441) – Repeals and reenacts, with
amendments, Sections 10–121(j) and 10-125 of the Insurance Article.
Title Insurance Producers and Agencies – Statement of
Financial Condition – Repeal of Filing Requirement
Repeals the requirement that a title insurer have on file by
a certain date a certain statement of financial condition of each title
insurance producer and agency with an appointment with the title insurer. Effective
Date: October 1, 2002.
XI. ARTICLE 83B – DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT
Chapter 221 (HB 446) – Repeals and reenacts, with
amendments, Section 2-501(h) of Article 83B – Department of Housing and
Community Development.
Rental Housing Production Program – Office or Other
Commercial Space
Modifies the definition of "office and other commercial
space" as it is used in the rental housing production program. To be
eligible, a building no longer has to have been constructed for the primary
purpose of being used for office or commercial space. It merely has to be
"last used" as an office or commercial space. Effective Date:
October 1, 2002
Chapter 541 (HB 759) – Repeals and reenacts, with
amendments, Section 5-801 of Article 83B – Department of Housing and Community
Development.
Limits the qualifying expenditures under the Maryland
Heritage Structure Rehabilitation Tax Credit allowed for rehabilitation to the
amount estimated in the original application and makes other modifications with
respect to the Maryland Heritage Structural Rehabilitation Tax Credit, including
a limit on the State tax credit for any rehabilitation to $3,000,000. Also
proposes an aggregate limit on all tax credits under Article 83B, Section 5-801.
The total amount of this year’s credits are to be reported to the Legislature,
and if the total estimated rehabilitation expenditures would result in more than
$50,000,000 in tax credits for any calendar year, then the Department of
Legislative Services is instructed to prepare legislation for introduction in
the next session of the General Assembly to impose a $50,000,000 cap, in the
aggregate. The right to apply and qualify for tax credit shall terminate as of
June 1, 2004, but any applications received on or before May 31, 2004 shall be
grandfathered. Effective Date: June 1, 2002.
Chapter 271 (HB 1188) – Repeals and reenacts, with
amendments, Sections 2-1001 and 2-1005(b) and adds Section 2-1008 to Article 83B
- Department of Housing and Community Development.
Department of Housing and Community Development –
Settlement Expense Loan Program – Homebuyer Education
Requires settlement expense loan program loan recipients to
complete specified homebuyer education or housing counseling. Authorizes the
Department of Housing and Community Development to require local jurisdictions
to provide the Department with specified homebuyer education or housing
counseling information under specified circumstances, and deals with other
matters affecting the settlement expense loan program. Effective Date:
October 1, 2002.
Chapter 274 (HB 1217) – Repeals and reenacts, with
amendments, Sections 2-612 and 2-613(a) of Article 83B – Department of Housing
and Community Development.
Housing and Community Development – Maryland Home Financing
Programs – Mortgage Sales
Allows the Department of Housing and Community Development to
sell loans on terms acceptable to the Department and to transfer money to the
"Homeowners Program Fund." Allows money to be placed in the Homeowners
Program Fund from the sale of mortgages. Effective Date: June 1, 2002.
XII. CORPORATIONS AND ASSOCIATIONS ARTICLE
Chapter 570 (HB 1357) – Repeals and reenacts, with
amendments, Section 4A-701 and 4A-702(f) of the Corporations and Associations
Article.
Limited Liability Companies - Mergers
Authorizes a domestic limited liability company to merge into
one or more foreign limited liability companies. Authorizes one or more foreign
limited liability companies to merge into a domestic limited liability company.
Requiring a domestic limited liability company to approve a merger by the
consent of the members holding at least two-thirds of the interest in profits of
the limited liability company, unless otherwise provided in the operating
agreement.
