Bulletin: MD2024003

Dear Associates:

Effective June 1, 2024

Restrictions on Cannabis Licensee Locations - Senate Bill 537/House Bill 805

The aim of this legislation is to ensure a more balanced geographic distribution of dispensary licenses across the State and within counties. It achieves this by prohibiting local jurisdictions from imposing zoning requirements on licensed dispensaries that are stricter than those for alcohol retailers. Similarly, it restricts zoning regulations for licensed outdoor cannabis growers in agricultural zones to be no more stringent than those existing for hemp farms as of June 30, 2023. Furthermore, the bill adjusts setback regulations slightly and mandates that dispensaries must be no more than half a mile apart. Lastly, it requires that local jurisdictions grant waivers to dispensaries that were operational before April 1, 2024.

Real Property – Taxation of Vacant Property, Certification of Company Representatives, and Short–Term Rentals HB 826

Authorizing the Mayor and City Council of Baltimore City or the governing body of a county to set a special property tax rate for improved residential property cited as vacant and unfit for habitation or other authorized use; establishing a subclass of real property consisting of certain vacant residential property; requiring an entity that owns residential real property in the State to make a certain certification to the State Department of Assessments and Taxation.

Effective July 1, 2024

State Tax Sale Ombudsman - House Bill 54

Mandates the State Tax Sale Ombudsman to engage a vendor to administer an installment payment program. This program allows homeowners to pay taxes in advance, currently due, or in arrears. However, homeowners cannot enroll in the installment payment program for advance tax payment if their dwelling is encumbered by a deed of trust, mortgage, or any other arrangement that involves escrowing tax payments. Nonetheless, county and municipal governments are empowered to establish installment payment plans for taxes in arrears on residential property. Additionally, there are two exemptions from the requirement that all property taxes, assessments, and other charges due on a property must be paid before a transfer. These exemptions apply when an heir, legatee, or grantee enters into or assumes the obligations of a payment plan for the transfer of residential property from the estate of a decedent to an heir or legatee, as well as for a grant of land subject to a property tax payment plan.

Solar Energy and Energy Storage - Development and State Procurement HB 1328

Authorizing a county to enact a local law creating a conservation and restoration fund for a certain purpose; establishing the Utility-Scale Solar Design and Siting Commission in the Power Plant Research Program to provide recommendations related to solar energy development and land conservation and preservation; requiring the owner or operator of a certain solar energy generating station to plant and maintain a certain cover crop on certain land and submit a certain vegetation management plan to a certain entity.

Effective October 1, 2024

Insurance - Producer Licensing Requirements - Education and Experience - SB0336/HB 265

Repealing the requirements for education and experience for licensing of certain insurance producers, including producers for property and casualty insurance, life insurance, health insurance, annuities, and related products. Title Insurance Pre-Licensing education is no longer required.

Cannabis Straw Ownership-Prohibition - House Bill 272

Aiming to prevent individuals from applying for or holding cannabis licenses or registrations under nominal ownership or without the genuine benefits and responsibilities of ownership or control. This measure specifically targets the practice of utilizing straw ownership to meet the requirements for cannabis licenses, including those for social equity licenses. In essence, the bill seeks to ensure that individuals designated as social equity owners of cannabis licenses genuinely possess ownership rights over those licenses.

Recordation Procedures - Senate Bill 423

Mandates that upon request, the county treasurer, tax collector, or director of finance provide a certificate itemizing taxes, assessments, and charges due to the county or municipality against a property. The county or municipality may charge a fee of up to $55 for issuing the certificate. Furthermore, counties must establish procedures to facilitate certificate issuance, while local clerks of circuit court and the Maryland Department of Assessments & Taxation must coordinate procedures to enable electronic satisfaction of prior approval and conditions precedent to recording documents or making electronic payments of fees or taxes. Moreover, under this bill, a bona fide purchaser for value with no prior notice of the charge or assessment before purchasing a property may not be subjected to a charge or assessment provided that a certificate is issued. However, payment of a fee and issuance of a certificate do not prevent a claim by a county or municipality for payment of a charge or assessment against either the property owner at the time of certificate issuance or a person acquiring the property with knowledge of the charge or assessment.

Recordation with False Information - House Bill 1308

Prohibits an individual from recording a deed or other instrument when a person knows that it contains false information. This includes information related to property ownership. A violator is guilty of a misdemeanor and subject to a maximum penalty of $500. The prosecution of this offense must be initiated within three years of the offense and the court may award either party costs and reasonable attorney’s fees in an action to quiet title.

Affordable Housing Land Trusts- Senate Bill 199/House Bill 13

Authority to establish condominium regimes which empower affordable housing land trusts to acquire and manage residential real property for the purpose of promoting affordable housing. The legislation grants these trusts the authority to acquire property interests, facilitate construction, and undertake property improvements. Furthermore, the bills allow for the execution of affordable housing land trust agreements and enable trusts to engage in various activities related to property sales, leasing, management, maintenance, and preservation. By providing legal mechanisms and resources to affordable housing land trusts, the legislation aims to enhance the availability of affordable housing options and promote community development.

Real Estate Brokers – Commercial Transactions – Buyer’s Rights - House Bill 697

Establishing certain requirements and prohibitions for commercial real estate transactions related to a buyer's right to make certain title, settlement, and escrow selections.

Real Property - Recordation of Instrument with False Information - Penalties and Actions to Quiet Title HB 1308

Prohibiting a person from recording a deed or other instrument that the person knows contains false information; establishing a 3-year limitation on when a prosecution for a violation of the Act may be commenced; establishing a fine not to exceed $500 for a violation of the Act; and authorizing a court to award certain costs and attorney's fees in an action to quiet title if the action or a defense to an action is based on the alleged recordation of a deed containing false information.

Residential Property Sales - Contract Disclosures - Superfund Sites HB 486

Requiring the seller of residential real property located within 1 mile of a National Priorities List (NPL) Superfund site to provide the buyer with an addendum to the contract for the sale of the property that contains the identification of the Superfund site, the definition of an NPL Superfund site, web addresses for certain websites, and a notice that the buyer may void the contract of sale within 5 days after signing and dating the contract of sale.

Real Property - Recordation – Procedures SB 423

Requiring a county treasurer, tax collector, or director of finance to provide a certificate enumerating certain taxes, assessments, and charges against a property and to establish certain procedures to facilitate the issuance of a certificate; requiring a collecting agent presented with a certificate to endorse a deed on payment of transfer and recordation taxes and all charges stated in the certificate and establishing that this endorsement is sufficient authority for a transfer on the assessment books.

Residential Property - Affordable Housing Land Trusts - Authority to Establish Condominium Regimes HB 13

Authorizing a condominium regime to be established on certain land owned by an affordable housing land trust.

Maryland Condominium Act - Amendments to the Declaration SB 665

Reducing the percentage of unit owners listed on the current roster of a condominium needed to consent to an amendment of a condominium's declaration if none of the units of the condominium are owned by a developer of the condominium from 80% to 66 2/3%.

Condominiums - Sales Contracts - Asbestos Disclosure HB 143

Establishing the unenforceability of contracts for the sale of condominium units that do not contain a statement by the vendor or unit owner as to whether the vendor or unit owner has actual knowledge of the presence of asbestos in the condominium, including a description of the location of the asbestos, whether abatement has been performed, and the date of any abatement.

County Tier 1 Renewable Sources – Generating Systems, Capacity, and Generation – Prohibition, Studies, and Plans HB 1407

Prohibiting counties from establishing zoning laws or other regulations that restrict or prohibit the construction or operation of Tier 1 renewable source generating systems or facilities; requiring the Public Service Commission to study the electricity demand in each county and determine the amount of capacity of, and energy generation from, Tier 1 renewable sources needed in each county for the State to meet certain renewable energy portfolio standard requirements.

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