Economic Matters Committee reconsiders and advances House Bill 774

The House Economic Matters Committee voted to reconsider its prior action on House Bill 774 and then moved the bill favorable after a brief discussion, the committee chair said.

Delegate Turner asked the committee to "reconsider the vote whereby House Bill 774 refuse passage," prompting a motion that was seconded and approved. With reconsideration granted, a member moved to report the bill favorable.

The committee discussed whether the statute would effectively hold a private party to a contract after the contract’s expiration. "Is there any other example with private contracts where we hold one party to stay in a contract after that contract expires?" asked Delegate Crosby.

Committee counsel and the vice chair pointed to statutory examples that require "good cause" for termination or provide cure periods. "Some specific examples are health insurance under federal law, property and casualty insurance under Maryland Insurance Article 27-601," the vice chair said, and she additionally referenced auto dealer and gasoline station franchise laws as analogous. The discussion also noted Section 8 participation as a distinct program context.

The vice chair clarified the bill’s reach: "It's only if the county adopts it," she said, emphasizing that the legislation is enabling and would take effect only in counties that opt in.

The chair then called the vote on the motion to report House Bill 774 favorable. The chair named members and announced recorded responses; Delegate Crosby was recorded as voting no, Delegate Queen as abstaining, several members were noted as excused, and the chair later announced the motion passed with 11 votes in favor.

The voting session concluded with the chair saying there were no further bills on the docket and that the committee would begin its meeting in a few minutes.