HB 744
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 744 (Delegate Stewart, et al.)
Environment and Transportation Judicial Proceedings
Landlord and Tenant - Residential Leases - Tenant Rights and Protections
(Tenant Protection Act)
This bill makes multiple changes to statute related to tenant rights and protections,
including (1) establishing requirements and procedures for landlords that use a ratio utility
billing system; (2) requiring a statement of cost, as required under current law if a landlord
withholds the return of a security deposit, to include specified documentation if practicable;
and (3) expanding protections for tenants or legal occupants who are victims of specified
crimes to include victims of stalking.
Fiscal Summary
State Effect: The bill does not materially affect State operations or finances.
Local Effect: The bill does not materially affect local government operations or finances.
Small Business Effect: Potential meaningful.
Analysis
Bill Summary:
Ratio Utility Billing System
A “ratio utility billing system” is an allocation of one or more of a landlord’s utility charges,
collected via a master meter, among the tenants by any method that does not measure actual
per tenant usage for the utility. A landlord that uses a ratio utility billing system to bill
tenants for one or more utilities must provide the following information to all prospective
tenants in writing:
a statement that the tenant will be billed by the landlord for allocated utility services
and that identifies all utilities at issue;
a statement that identifies the elements that compose the landlord’s utility charges
to be allocated to the tenants under the ratio utility billing system, by utility;
a description of the method that will be used to allocate the cost of the utility to the
tenant, by utility;
a statement that any disputes relating to the computation of the tenant’s bill are
between the tenant and the landlord;
the average monthly bill for all dwelling units in the residential rental property in
the previous calendar year, by utility;
information regarding billing, including meter reading dates, billing dates, and due
dates, by utility;
a statement that the tenant has the right to receive information from the landlord to
verify the utility bill on written request;
information regarding any additional service charges or administrative fees to be
paid by the tenant for the operation of the ratio utility billing system; and
a citation to the applicable statute.
A lease provision that requires a tenant to pay the utility charges billed to the tenant under
a ratio utility billing system is unenforceable if the landlord fails to provide the above
information as required. On written request by a tenant, a landlord who uses a ratio utility
billing system must provide the tenant with information to document a bill for utilities.
The bill authorizes a county or municipal corporation to enact related local laws consistent
with these provisions; any local law comparable in subject matter supersedes the State
statutory provisions. The above provisions do not apply to residential rental property in a
condominium organized under the Maryland Condominium Act or a cooperative project
organized under the Maryland Cooperative Housing Corporation Act.
The above provisions have prospective application only and do not have any effect on or
application to any lease entered into before the bill’s October 1, 2020 effective date.
Statement of Cost for Withheld Security Deposits
The bill requires a statement of costs incurred by a landlord, as required under specified
current law provisions when a security deposit is withheld, to also – where practicable –
include supporting documentation (such as bills, invoices, and receipts) that identifies the
materials or services provided.
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Tenant Organization Rights
A “tenant organization” is an incorporated or unincorporated organization of three or more
tenants who reside in an apartment facility – formed for the purpose of improving the living
conditions, contractual position, or community experiences of the residents of the
apartment facility – that meets specified requirements.
The bill grants tenant organizations the right of free assembly in a meeting room within the
apartment facility designated for use by tenants for events and community gatherings
during reasonable hours and on reasonable notice to the landlord in order to conduct
meetings. The landlord may impose reasonable terms and conditions on the use of a
meeting room, including requiring an individual who is not a resident to sign a waiver of
liability for injuries sustained while on the property. A tenant organization must designate
members, as specified, who are authorized to schedule use of a meeting room and provide
applicable notice to the landlord. The bill prohibits landlords from charging fees for the
use of a meeting room for the first meeting by the organization each month and allows
reasonable fees for subsequent use within the same month, as specified.
Victims of Domestic Violence, Sexual Assault, or Stalking
The bill expands numerous statutory provisions for victims of domestic violence and
sexual abuse to also include “victims of stalking,” as defined in the Criminal Law Article.
A tenant or legal occupant (who resides on the premises with the knowledge and
permission of the landlord) who is a victim of stalking may terminate the tenant’s future
liability under a residential lease if the tenant provides the landlord with specified notice
of an intent to vacate the leased premises.
The bill also establishes that a tenant who vacates a leased premises due to being a victim
of domestic violence, sexual assault, or stalking is only responsible for rent for the time
following the tenant providing notice of an intent to vacate until the tenant vacates the
leased premises, up to a maximum of 30 days (as opposed to 30 days under current law).
The bill requires a tenant to provide specified notice if the tenant vacates the premises
earlier than 30 days after the date the tenant provided written notice of an intent to vacate.
On receiving such notice, the landlord must inspect the leased premises and, if the tenant
has vacated the leased premises, provide the tenant with a written statement, as specified.
The bill also authorizes a report by a qualified third party to be used as documentation that
a tenant or legal occupant is entitled to specified relief due to the individual’s status as a
victim of domestic violence, sexual abuse, or stalking. A “qualified third party” is a
physician or psychologist authorized to practice under applicable State law or a
social worker or caseworker of any public or private heath or social services agency or
provider. A report from a qualified third party must meet specified criteria.
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The bill prohibits a landlord from disclosing any information provided by a tenant under
the statutory provisions regarding victims of domestic violence, sexual assault, or stalking
to a third party unless the tenant consents in writing to the disclosure or the disclosure is
required by law or a court order.
Current Law:
Utility Billing Systems
Section 7-303 of the Public Utilities Article addresses the “submetering” of apartment and
commercial buildings for electricity or natural gas. “Submetering” is the installation of
equipment to determine the actual use of electricity or gas per residential unit or
commercial rental unit. Based on the authority included in statute, the Public Service
Commission (PSC) authorizes, by regulation, an owner, operator, or manager of an
apartment house (including a condominium), office building, or shopping center with a
master meter to install submeters for determining the actual use of electricity or gas
per unit.
Approval from PSC is also required before an energy allocation system (a method of
determining the approximate energy use consumed within a dwelling unit through the use
of a measuring device) may be used by the owner, operator, or manager of an apartment
house to determine the amount of gas or electricity used by an individual dwelling unit.
PSC may approve an energy allocation system upon a demonstration by the owner that the
system results in a reasonable determination of the cost of the energy use within a dwelling
unit. The owner, operator, or manager may not use the energy allocation system to bill
energy costs to tenants of an individual dwelling unit without PSC approval.
Protections for Victims of Domestic Violence and Sexual Assault
A “victim of domestic violence” is defined as a victim of domestic abuse or a person
eligible for relief under provisions of the Family Law Article governing the issuance of
protective orders. A “victim of sexual assault” means a person who is a victim of a sexual
crime, child sexual abuse, or sexual abuse of a vulnerable adult under the Criminal Law
Article.
A tenant or legal occupant (who resides on the premises with the knowledge and
permission of the landlord) who is a victim of domestic violence or a victim of
sexual assault may terminate the tenant’s future liability under a residential lease within 30
days of providing the landlord with (1) written notice by first-class mail or hand delivery
of an intent to vacate the premises and (2) notice of the individual’s status as a victim of
domestic violence or sexual assault. The notice requirement is satisfied by providing a copy
of a protective or peace order issued for the benefit of the tenant or legal occupant. A
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vacating tenant is responsible for the rent for the 30-day period following the date that the
notice of intent to vacate was provided to the landlord.
A tenant is deemed to have raised a rebuttable presumption that an alleged breach of lease
does not warrant an eviction if the tenant provides the court with a copy of the peace or
protective order. If the tenant does not provide a copy of the peace or protective order, the
court, in its discretion, may enter a judgment in favor of the tenant.
A residential tenant who is a victim of domestic violence or sexual assault may request that
the landlord change locks of the leased premises if the protective order or peace order
issued for the benefit of the tenant or legal occupant requires the respondent to refrain from
entering or to vacate the residence of the tenant or legal occupant. The landlord must
change the locks by the close of the next business day upon receiving a written request to
change the locks. In the event the landlord does not change the locks within that time
period, the tenant may have the locks changed by a certified locksmith and must give a
duplicate key to the landlord by the close of the next business day. If the landlord changes
the locks, he or she may charge a fee that does not exceed the reasonable cost of changing
the locks. The landlord is authorized to withhold the fee from the tenant’s security deposit
or charge the fee as additional rent if the tenant fails to pay the fee, as specified.
Small Business Effect: Landlords that qualify as small businesses may be impacted by a
new class of individuals authorized to terminate a lease and not be responsible for future
liabilities.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): cities of Baltimore and Bowie; Prince George’s County;
Maryland Association of Counties; Maryland Municipal League; Secretary of State;
Judiciary (Administrative Office of the Courts); Maryland Department of Health;
Department of State Police; Department of Legislative Services
HB 744/ Page 5
Fiscal Note History: First Reader - February 17, 2020
rh/jkb Third Reader - March 17, 2020
Revised - Amendment(s) - March 17, 2020
Analysis by: Donavan A. Ham Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 744/ Page 6
Statutes affected: Text - First - Landlord and Tenant - Residential Leases - Tenant Rights and Protections (Tenant Protection Act): 8-212.4 Real Property, 8-203 Real Property, 8-203.1 Real Property, 8-211 Real Property, 8-218 Real Property, 8-402 Real Property
Text - Third - Landlord and Tenant - Residential Leases - Tenant Rights and Protections (Tenant Protection Act): 8-212.4 Real Property, 8-203 Real Property, 8-203.1 Real Property, 8-211 Real Property, 8-218 Real Property, 8-402 Real Property