SB 544
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
Senate Bill 544 (Senator Eckardt)
Education, Health, and Environmental Affairs
Charter and Code Home Rule Counties - County Property Leases - Notice
Exemptions
This bill authorizes a charter or code home rule county to enter into a specified property
lease agreement without giving notice if the lease (1) is not renewable and (2) has a term
of five years or less.
Fiscal Summary
State Effect: None.
Local Effect: Local government expenditures may decrease beginning in FY 2022;
however, any impact is likely to be minimal in most jurisdictions. Local revenues are not
directly affected.
Small Business Effect: None.
Analysis
Current Law: Before a charter or code home rule county disposes, grants, or leases county
property, the county is required to publish notice of the action once a week for
three consecutive weeks in at least one newspaper of general circulation in the county. The
notice must include the terms and the compensation to be received and give opportunity
for objections. A county may grant an easement for a public utility without giving notice.
Local Fiscal Effect: Local government expenditures for advertising public notices may
decrease beginning in fiscal 2022. In Frederick and Harford counties, the potential cost
savings could total approximately $1,000 per year. In Dorchester County, the potential cost
savings could total $600 per lease, with the county realizing administrative efficiencies that
could generate additional business opportunities for the county government.
Dorchester County outlined two major concerns with the current public notice
requirement: (1) the advertisement cost for many leases exceeds the revenue generated
from the lease, resulting in a net operating loss to the county; and (2) the extended time
period to publicize a lease (three consecutive weeks) creates a disincentive for businesses
that need to secure a location in a timely manner. Dorchester County indicates that there
have been multiple occasions when a business needed to obtain lease space within a certain
timeframe and due to the public notice requirement, the business had to secure another
location which resulted in a revenue loss to the county.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 1194 (Dorchester County Delegation) - Environment and
Transportation.
Information Source(s): Anne Arundel, Baltimore, Charles, Frederick, Harford, Howard,
Montgomery, Prince George’s, Wicomico, and Worcester counties; Department of
Legislative Services
Fiscal Note History: First Reader - February 21, 2021
md/tso
Analysis by: Arnold Adja Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 544/ Page 2


Statutes affected:
Text - First - Charter and Code Home Rule Counties - County Property Leases - Notice Exemptions: 10-301 Local Government, 10-312 Local Government