House Bill 774 fails in Economic Matters Committee after debate over 'good cause' eviction definitions

Annapolis — House Bill 774, a state enabling measure that would let local counties adopt so-called "good cause" rules limiting when a landlord can refuse to renew a lease, failed to carry in the Economic Matters Committee on Monday after lengthy questioning over definitions and enforcement.

The committee’s debate centered on how the bill would work in practice and in court. The bill’s sponsor described it as enabling: counties would choose whether to adopt the state-guided list of grounds for refusing to renew a lease, which includes a "substantial breach" of lease, illegal activity on the premises, habitually late rent and a landlord’s good-faith plan to remove a unit from the rental market for at least one year. The sponsor said the measure does not strip landlords of existing tools to pursue nonpayment or eviction during a lease term.

"First of all, this is enabling legislation," the vice chair said during committee discussion. "After this bill passes, each of the local jurisdictions still has to go through their own deliberations… This is just if they choose to implement it." (Vice Chair)

Several committee members pressed legal and practical questions about key terms. Committee counsel offered a concrete threshold for one listed ground: "more than 10 days late at least 4 times in a 12-month period" would qualify as a habitual late-payment ground for nonrenewal. (Committee counsel)

Delegate Adams, who identified himself as having landlord experience, argued the bill removes the "end" date that characterizes leases and could effectively eliminate nonrenewal as a landlord remedy. "This bill is not ready for even close to being made law," he said, and added that the legislation "removes nonrenewal of leases as a tool available for a landlord when needed." (Delegate Adams)

Supporters and other members pushed back that the bill is a template for local action and that courts would continue to adjudicate disputes. The sponsor highlighted policy aims such as reducing retaliation against tenants who complain and stabilizing children’s school enrollment in high-turnover buildings. "This is a list beginning on page 6... The first one is a substantial breach of lease about which there's a lot of case law, but none of the others are tied to substantial breach," the sponsor said, noting the various grounds can operate independently.

Members also debated the risk of uneven local implementation. A member asked whether counties could adopt differing definitions and whether the state might need to intervene; counsel said local rules that depart from the state-enabled template would likely be unenforceable in court.

After extended discussion and a roll-call, the committee’s motion on HB 774 failed. The committee record in the transcript does not include a numeric tally for the final vote; the chair announced "the motion did not pass" and closed the docket. The committee had earlier taken favorable or unfavorable reports on other bills on the docket; HB 774 was the only bill on the agenda that drew sustained floor-length debate and a failing motion in committee.

The committee adjourned its voting session and asked members to stay tuned for further voting sessions.