SB 413
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 413 (Senator Guzzone)
Budget and Taxation Appropriations
Maryland Legal Services Corporation Funding – Abandoned Property
This bill increases, from $2.0 million to $8.0 million, the required distribution from the
State’s Unclaimed Property Fund to the Maryland Legal Services Corporation (MLSC)
Fund. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: General fund revenues decrease by $6.0 million annually beginning in
FY 2022, reflecting the distribution of additional unclaimed property funds to the MLSC
Fund. Special fund revenues to the MLSC Fund increase correspondingly. Expenditures
are not directly affected, as discussed below. This bill increases a mandated distribution
beginning in FY 2022.
($ in millions) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
GF Revenue ($6.0) ($6.0) ($6.0) ($6.0) ($6.0)
SF Revenue $6.0 $6.0 $6.0 $6.0 $6.0
Expenditure 0 0 0 0 0
Net Effect $0.0 $0.0 $0.0 $0.0 $0.0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: The bill does not materially affect local government finances or operations.
Small Business Effect: Minimal.
Analysis
Current Law: The MLSC Fund is used to finance civil legal services to indigent clients.
In addition to funding from the Unclaimed Property Fund, the MLSC Fund receives
funding from surcharges applied to civil filings in circuit court and the District Court.
Attorneys are also required to place small or short-term client trust funds into an Interest
on Lawyer Trust Accounts account, the interest on which is paid into the MLSC Fund.
State Fiscal Effect: Special fund revenues for the MLSC Fund increase by $6.0 million
annually beginning in fiscal 2022, reflecting the increased revenue distribution from
unclaimed property funds. Because net proceeds from unclaimed property are distributed
to the general fund (after administrative costs and required distributions are made),
general fund revenues decrease by $6.0 million annually beginning in fiscal 2022.
While the bill does not require additional spending from the MLSC Fund, the fund is used
to finance civil legal services to indigent clients. Accordingly, the bill results in additional
funding available for that purpose.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 514 (Delegate B. Barnes) - Appropriations.
Information Source(s): Comptroller’s Office; Judiciary (Administrative Office of the
Courts); Department of Budget and Management; Department of Legislative Services
Fiscal Note History: First Reader - January 29, 2021
rh/jkb Third Reader - March 22, 2021
Revised - Other - June 9, 2021
Analysis by: Tyler Allard Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 413/ Page 2


Statutes affected:
Text - First - Maryland Legal Services Corporation Funding – Abandoned Property: 17-317 Commercial Law, 11-916 Commercial Law, 11-402 Human Services
Text - Third - Maryland Legal Services Corporation Funding – Abandoned Property: 17-317 Commercial Law, 11-916 Commercial Law, 11-402 Human Services