Economic Matters Committee advances most bills, holds landlord-tenant fee-disclosure bill over penalty concerns

The Economic Matters Committee met to consider its second voting list and advanced a majority of measures to the next stage while holding one bill for further work.

The committee moved House Bill 38 — a technical clarification for mortgage loan originators — favorable with amendments after the subcommittee explained the bill aligns practice allowing originators to sever certain relationships and work with other financial institutions. The subcommittee reported the Office of Financial Regulation reviewed the bill and recommended technical cleanup amendments, which the committee adopted and approved by voice and roll call.

The panel held House Bill 80, a landlord–tenant fee-disclosure measure sponsored by Delegate Vogel, after sustained debate about the bill’s damages provision. Committee members said the bill requires landlords to disclose fees up front and the adopted amendments treat trash as a utility rather than a fee. Delegate Adams objected to the damages language, saying it "is not vetted in my opinion" and warning that treble-damages language with a two-year lookback could expose landlords with large multifamily properties to substantial liability for honest mistakes. The chair said the bill would be held for a potential amendment.

The committee moved House Bill 85, which would enable corporate limited-equity housing corporations (CLEHCs), favorable with clarifying amendments. Sponsors said the bill provides a model structure allowing limited-equity co-ops to form under state law and that clarifications make clear it does not override local zoning, wastewater or other land-use rules. Delegate Pippi flagged a fiscal-services note that mentioned a potential $278,000 implementation expense in 2028; staff and the sponsor said the State Department of Assessments and Taxation (SDAT) later clarified it could implement the change with existing resources and appropriations cleared the bill as having no net fiscal impact.

On consumer and administrative bills, the committee moved HB 118 (clarifying the regulatory distinction between money transmitters and payroll processors), HB 135 (allowing tax-increment financing districts to be noncontiguous), HB 344 (provisions on motor-fuel pricing and signage), HB 431 (modernizing plat recordation and permitting digital submissions; proposed fees removed), and HB 485 (revisions to the State Board of Professional Landscape Architects) favorable out of committee with amendments where noted.

The committee also advanced House Bill 487 to require TEDCO (the Maryland Technology Development Corporation) to adopt a process governing investments that no longer meet the "qualified Maryland business" definition. Mindy Lehman of TEDCO told the committee the change would allow TEDCO to unwind investments in a controlled way that preserves company stability and maximizes returns to the state's evergreen investment fund; she said roughly 95% of TEDCO's investment capital comes from state funding. Lehman said the new process would replace immediate mandatory divestment in some cases with board processes and regulatory guidance to avoid fire-sale losses.

The meeting ended with a procedural request to calendar two withdrawn or unfavorably reported bills and the chair adjourning the committee and reminding subcommittee chairs of their meetings.

What’s next: most bills advanced will go to remaining committee or floor consideration in their current posture; HB 80 is held so sponsors can draft an amendment that narrows or clarifies the damages provision.