House declines amendments to clarify court awards of late fees in residential leases bill

Members discussed House Bill 273, a bill described on the floor as clarifying how late payment penalties for residential leases are calculated and enforced. Debate concentrated on whether courts should be required to award contractually agreed late fees and on the statutory language in Real Property Article —7-401.

A delegate offered an amendment arguing judges should not be allowed to award contract late fees in specified circumstances and read portions of Real Property Article —7-401 into the record, saying that courts currently "may" give judgment for late fees and that the amendment would change judicial discretion to ensure consistency with legislative intent. The sponsor summarized the tenant-landlord timeline: notice, 10-day cure period, filing, and the potential for a judgment weeks later.

The committee chair opposed the amendment, calling the bill a clarifying measure about "unpaid" rent and warning the amendment would inappropriately involve judicial procedures and remove discretion from courts. The chair noted that current court forms already allow judges to consider late fees and that discretion rests with the judiciary.

The sponsor replied that when courts do not award late fees, tenants sometimes refuse to pay late fees going forward, complicating landlord-tenant relations. After floor debate, the clerk recorded a roll-call: "There being 92 votes in the negative, the amendment fails." A subsequent one-word insertion amendment to add the word "tenant" to the bill likewise failed on roll call.

With no additional amendments adopted, the bill was ordered printed for third reading. The transcript records the legal reference to Real Property Article —7-401 and multiple floor explanations of courtroom timing (a 10-day notice and multi-week court process) as context for the proposed changes.