Session in Review / Executive Summary

The 447th Legislative Session of the Maryland General Assembly ended at midnight on Monday, April 7, when both chambers adjourned Sine Die. Lawmakers worked up until the last second of session to pass priority legislation while crafting a balanced budget to resolve a $3.3 billion structural deficit in FY 2026. The MBA Government Relations Team tracked 251 pieces of legislation this session, demonstrating that many facets of policy considered have a direct or indirect impact on a bank’s ability to efficiently and effectively serve their customers.

While legislation did pass that affects bank operations, the work of the MBA Government Relations Team stopped many harmful pieces of legislation from becoming law. By staying engaged with legislators and key stakeholders, harmful proposals such as the prohibition of an interchange fee on certain parts of an electronic transaction, the application of Electronic Funds Transfer Act provisions on consumer wire transfers, and the implementation of a statute of limitations on so-called “zombie mortgages” were not passed this year. MBA also supported several pieces of legislation to improve the lives of Marylanders by increasing access to financial education, establishing penalties for the theft of mail, and providing transparency in commercial financing transactions. While reviewing the information in this report, please know that the team worked tirelessly to not only protect you and the ability to serve your customers, but worked to help legislators achieve their goals as well. Helping legislators achieve their goals is extremely important as it strengthen relationships with those who have direct influence over legislation that impacts the banking industry.

Legislation passed by both chambers, except the budget bill and constitutional amendments, must be presented to the Governor for his signature by the 20th day after adjournment, which is April 27. The Governor has until May 27, or 30 days after presentment, to either sign or veto bills. If the Governor does not either sign or veto legislation by the 30-day deadline, the legislation will automatically become law. The 2025 Legislative Session is the third of four sessions during each four-year term, meaning that any gubernatorial vetoes may be overridden by the General Assembly next session.

The MBA 2025 Sine Die Report provides a summary of bills impacting the Maryland banking industry that were sent to the Governor for signature, along with some important banking-related bills that failed to pass the General Assembly before adjournment. Please review it carefully along with the effective dates of the bills that passed, as the policy changes will impact banks differently depending on structure and lines of business.

2025 Maryland General Assembly - Notable Leadership Changes and Legislation by the Numbers

As stated above, the 2025 Legislative Session was the third session of a four-year term. President Bill Ferguson (D-Baltimore City) and Speaker Adrienne Jones (D-Baltimore) were re-elected to lead their respective chambers for the sixth time.

While there was only one change in committee leadership between the end of the 2024 Legislative Session and the beginning of the 2025 Legislative Session, it was a noteworthy one for the banking industry. Senator Kathy Klausmeier (D-Baltimore) was appointed to serve as Baltimore County Executive after County Executive Johnny Olszewski (D) resigned to serve in the U.S. House of Representatives. Klausmeier served as the Vice Chair of the Senate Finance Committee, which has jurisdiction over most banking-related legislation in the Senate. Senator Antonio Hayes (D-Baltimore City) was appointed to serve as the new Vice Chair of Senate Finance, with Senator Pam Beidle (D-Anne Arundel) remaining as Chair.

There were a total of 2,605 pieces of legislation introduced during this Legislative Session. 1,047 bills were introduced in the Senate and 1,558 bills were introduced in the House of Delegates. 868 pieces of legislation were passed by both chambers and sent to the Governor for his signature. As of this publication, Governor Moore has signed 236 bills into law. There were 12 Joint Resolutions and 664 Legislative Bond Initiatives (LBIs) introduced as well.

2025 Member Impact and Accomplishments

Member engagement makes a huge difference in advocacy efforts, as there is no better advocate for the Maryland banking industry than a Maryland banker!

On Thursday, January 23, over 65 Maryland bankers descended upon Annapolis for the annual MBA Day in Annapolis. Attendees gathered at the Governor Calvert House, just steps away from the State House, to have breakfast and network with legislators and fellow bankers. Guest speakers gave insight on how key issues affecting the banking industry would be addressed this session. Attendees had the opportunity to watch the House and Senate in action and meet with their legislators to discuss key legislative priorities of the Maryland banking industry.

MBA thanks those legislators who participated in the Legislative Leadership Panel during Day in Annapolis, which included Senator Pam Beidle (Chair, Senate Finance Committee, D-Anne Arundel), Senator Will Smith (Chair, Senate Judicial Proceedings Committee, D-Montgomery), and Delegate Marc Korman (Chair, House Environment and Transportation Committee, D-Montgomery). MBA thanks these legislative leaders for their remarks on how they tackle important issues in their respective committees and how bankers can have effective advocacy meetings with their lawmakers. MBA also thanks Delegate Pam Queen (D-Montgomery), who serves as Chair of the Banking, Consumer Protection, And Commercial Law Subcommittee in the House Economic Matters Committee, for stopping by to say hello and discussing some of her key priorities.

The MBA Government Relations Council (GRC), led by Rosedale Federal Savings & Loan Association President & CEO Kevin Benson, spent countless hours reviewing bills before arriving at the 57 that MBA either supported, opposed, or needed to amend. Additionally, the GRC identified 194 bills that MBA monitored for harmful changes. Members of the GRC provided invaluable guidance and feedback on an array of bills and amendments, helping equip the MBA Government Relations Team for success.

What's Next?

In just a few short weeks, the MBA Final Report will be issued, which will provide additional information on banking-related legislation that Governor Moore has signed into law. The MBA Final Report will be issued shortly after bill signing ceremonies conclude. In addition, MBA will provide additional communications throughout the year as legislation signed by the Governor goes into effect.

MBA remains fully dedicated to serving our members during the legislative interim. The MBA Government Relations Team will continue to work with the Moore Administration, legislative leaders and policymakers, state agencies, and other stakeholders to consistently advocate on behalf of the Maryland banking industry. MBA will continue to keep you informed on legislative updates throughout the year. As always, please contact the MBA Government Relations Team with any questions or concerns.

The Maryland FY 2026 Budget & Related Legislation

PASSED - HB 350 - Budget Bill (Fiscal Year 2026)

PASSED - HB 352 - Budget Reconciliation and Financing Act of 2025

FAILED - HB 1014/SB 859 - Fair Share for Maryland Act of 2025

FAILED - HB 1554 - Sales and Use Tax - Taxable Business Services - Alterations

Key Banking-Related Legislation

FAILED - HB 29/SB 917 - Electronic Payment Transactions - Interchange Fees - Calculation and Use of Data

FAILED - HB 332/SB 659 - Consumer Protection - Electronic Funds Transfers - Regulations (Elder Fraud Prevention Act of 2025)

Financial Empowerment Legislation

FAILED - HB 326/SB 715 - Student Service Hours - Financial Literacy Course

FAILED - HB 801 - Maryland Financial Empowerment Center Network Pilot Program - Establishment

Mortgage Lending & Foreclosure Legislation

FAILED - HB 756 - Petition for Guardianship of the Property of Alleged Disabled Person - Stay of Civil Actions and Proceedings

FAILED - HB 769/SB 682 - Real Property - Residential Foreclosures - Commencement Restrictions

PASSED - HB 796/SB 566 - Real Property - Filing Fee for Residential Mortgage Foreclosure – Increase

PASSED - HB 1018/SB 689 - Financial Institutions - Conventional Home Mortgage Loans - Assumption and Required Disclosures

FAILED - HB 1151 - Residential Real Property Sales – Appraisals

PASSED - HB 1516/SB 1026 - Financial Institutions - Consumer Credit - Application of Licensing Requirements (Maryland Secondary Market Stability Act of 2025)

Estates & Trusts Legislation

PASSED - HB 27/SB 19 - Estates and Trusts - Compensation of Guardians of Property and Trustees

PASSED - HB 88/SB 158 - Estates and Trusts - Maryland Trust Decanting Act - Notification and Document Transmittal

PASSED - HB 146/SB 126 - Estates and Trusts - Resignation of Trustee – Notice

PASSED - HB 261/SB 110 - Estates and Trusts - Priority of Claims on an Estate - Unpaid Child Support

PASSED - HB 315/SB 22 - Task Force to Study Fiduciary Adjudication in Maryland

Consumer Protection Legislation

PASSED - HB 107/SB 49 - Consumer Protection - Automatic Renewals

PASSED - HB 431/SB 413 - Consumer Protection - Consumer Contracts - Limitation Periods

FAILED - HB 591 - Statute of Limitations - Prosecution or Enforcement of Local Consumer Protection Codes

FAILED - HB 604/SB 466 - Criminal Law - Financial Exploitation of Vulnerable and Senior Adults

FAILED - HB 805/SB 410 - Criminal Law - Mail and Package Theft

FAILED - HB 1073 - Criminal Law - Theft - Mail and Packages (Porch Piracy Act of 2025)

FAILED - HB 1557 - Program to Protect Individuals Unemployed or Furloughed Due to Federal Actions - Establishment

Digital Asset & Cryptocurrency Legislation

FAILED - HB 454 - Digital Asset and Blockchain Technology Task Force – Establishment

PASSED - HB 761/SB 665 - Maryland Uniform Disposition of Abandoned Property Act – Revisions

FAILED - HB 1353 - Commercial Law - Uniform Commercial Code - Controllable Electronic Records

FAILED - HB 1389 - Strategic Bitcoin Reserve Act of Maryland

PASSED - SB 305 - Financial Institutions and Activities - Virtual Currency Kiosks - Registration and Regulation

Tax Legislation

PASSED - HB 59/SB 192 - Property Tax - Tax Sales – Revisions

PASSED - HB 390/SB 327 - Affordable Housing Payment In Lieu of Taxes Expansion Act

PASSED - HB 546/SB 605 - Digital Advertising Gross Revenues Tax - Assessments - Appeals and Corrections

PASSED - HB 790 - Property Tax - Payment Plans - Notice to Taxpayers

PASSED - HB 953 - Tax Sales - Homeowner Protection Program - Funding and Alterations

PASSED - HB 1189/SB 550 - Baltimore City - Property Tax - Authority to Impose on Vacant and Abandoned Property Owned by Nonprofit Organizations

Artificial Intelligence Legislation

FAILED - HB 823 - Generative Artificial Intelligence - Training Data Transparency

PASSED - HB 956 - Consumer Protection - Workgroup on Artificial Intelligence Implementation

FAILED - HB 1331- Consumer Protection - Artificial Intelligence

FAILED - SB 936 - Consumer Protection - High-Risk Artificial Intelligence - Developer and Deployer Requirements

Lending Legislation

FAILED - HB 693/SB 754 - Commercial Financing - Small Business Truth in Lending Act

PASSED - HB 1294 - Commercial Law - Credit Regulation - Earned Wage Access and Credit Modernization

Medical Debt Legislation

PASSED - HB 428/SB 349 - Medical Debt - Complaints for Money Judgment and Real Property Liens

PASSED - HB 1020/SB 614 - Consumer Protection - Credit Reporting - Medical Debt (Fair Medical Debt Reporting Act)

Other Legislation of Importance

PASSED - HB 30/SB 228 - Limited Line Credit Insurance - Qualification of Applicants

PASSED - HB 347/SB 150 - Real Property - Recordation and Land Records – Requirements

FAILED - HB 393/SB 31 - Commercial Law - Attachment of Wages - Exemptions (Exempt Income Protection Act)

PASSED - HB 1171/SB 992 - Corporations and Associations - Revisions

PASSED - HB 350 - Budget Bill (Fiscal Year 2026)

MBA Position: Monitor

The FY 2026 Budget Bill contains $67 billion of State spending in FY 2026. The FY 2026 budget includes:

• $15.6 billion in Medicaid funding,
• $594 million in new funding for public education,
• $500 in new transportation revenue,
• Over $120 million in police aid and over $65 million in victim services and community-based services funding, and
• $2.4 billion in cash reserves, including $2.1 billion in the Rainy Day Fund.

HB 350 does not contain any revenue-increasing provisions. Those provisions can be found in HB 352 below.

PASSED - HB 352 - Budget Reconciliation and Financing Act of 2025

MBA Position: Monitor

The Budget and Reconciliation Financing Act, commonly referred to as the BRFA, is the piece of legislation that includes how the General Assembly determined how to pay for the FY 2026 budget. As passed by the General Assembly, HB 352 contains several provisions that are noteworthy for Maryland banks.

A 3% sales tax on data and IT services will be implemented starting July 1, 2025. The NAICS (North American Industrial Classification System) sectors impacted are Sector 518 (Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services), Sector 519 (Web Search Portals, Libraries, Archives, and Other Information Services), Sector 5415 (Computer Systems Design and Related Services), or a system software or application software publishing service described in Sector 5132 (Software Publishers). Affiliated companies will not be subject to the tax, nor will companies that do business with a developer of quantum computing technology. Additional guidance on the implementation of this tax will be coming from the Comptroller's Office, and can be found here once published.

Other noteworthy changes to the tax code in Maryland include:

• increasing the standard deduction 20% for single and joint filers; 
• phasing out itemized deductions for those who make over $200,000; 
• creating a new 2.0% State income tax surcharge on capital gains for filers making more than $350,000; 
• increasing the top marginal individual income tax rate from 5.75% to 6.50% for those earning more than $1.0 million (or $1.2 million for joint filers); and 
• increasing the existing cap on local income tax rates 0.10% (from 3.2% to 3.3%).

FAILED - HB 1014/SB 859 - Fair Share for Maryland Act of 2025

MBA Position: Oppose

This legislation would have significantly reformed the tax code in Maryland to raise significant revenue. Noteworthy provisions in the Fair Share for Maryland Act include the implementation of worldwide combined reporting and the implementation of a 2.5% "Business Transportation Tax" on taxable income greater than $10 million from a C-corporation or PTE. The MBA Government Relations Team opposed this legislation, citing that it would negatively harm Maryland residents and businesses, and that a much more balanced approach was needed to solve the structural deficit. HB 1014 and SB 859 never received a vote in committee.

FAILED - HB 1554 - Sales and Use Tax - Taxable Business Services - Alterations

MBA Position: Oppose

This legislation would have established a 2.5% business-to-business service tax on various services, including accounting and bookkeeping, data and IT services, office support services, consulting and lobbying services, and more. Hundreds of Maryland businesses voiced concerns about the devastation this proposed B2B tax would have on the State. The MBA Government Relations Team raised concerns that the increased costs of doing business for Maryland banks would ultimately lead to increased costs of financial products and services. While HB 1554 did not receive a vote in the House Ways and Means Committee, data and IT services will now be taxed as a part of the Budget and Reconciliation Financing Act (see above).

FAILED - HB 29/SB 917 - Electronic Payment Transactions - Interchange Fees - Calculation and Use of Data

MBA Position: Oppose

This legislation would have prohibited the application of an interchange fee on the sales tax or gratuity portion of an electronic transaction. The merchant could have either submitted tax and gratuity documentation as part of the settlement process for the exclusion or could have submitted the documentation later for credit. If an issuer or payment network did not exclude the interchange fee on tax and gratuity, a civil penalty of $1,000 per transaction would have been assessed. The MBA Government Relations Team led the fight against this harmful legislation, citing how it would not save Marylanders any money while shopping or eating, how funds that are used to invest in protecting customer data would be at risk, and how rewards programs like credit card airline miles would be in jeopardy. HB 29 did not receive a vote in the House Economic Matters Committee, while SB 917 was withdrawn before it was heard.

FAILED - HB 332/SB 659 - Consumer Protection - Electronic Funds Transfers - Regulations (Elder Fraud Prevention Act of 2025)

MBA Position: Oppose

This legislation as introduced would have required the Office of Financial Regulation to develop regulations that applied provisions of the Electronic Funds Transfer Act to consumer wire transfers in Maryland. The legislation also included a “self-destruction” clause, which rendered the bill unenforceable if the courts held that federally-chartered banks were preempted by federal law. The MBA Government Relations Team, along with MBA member banks, lobbied the House Economic Matters Committee heavily, citing how HB 332 would increase the costs of wire transfers and how the legislation would have disproportionately impacted Maryland-chartered banks. Ultimately, the House Economic Matters Committee passed HB 332 with an amendment that eliminated the development of regulations and simply stated that electronic fund transfers made ancillary to bank-to-bank transfers via a wire service were subject to the Electronic Funds Transfer Act. While HB 332 passed the House, it did not come up for a vote in the Senate Finance Committee. SB 659 did not come up for a vote in the Senate Finance Committee as well.

FAILED - HB 326/SB 715 - Student Service Hours - Financial Literacy Course

MBA Position: Support

This legislation would have required county boards of education to develop regulations that allowed the successful completion of a financial literacy course at an institution of higher education to be used to satisfy a certain number of required student service learning hours. Each county board of education would have determined how many student service learning hours were assigned to the completion of the course. MBA supported this legislation as it provided an incentive for young Marylanders to complete a financial literacy course. HB 326 and SB 715 never came up for a vote in committee.

FAILED - HB 801 - Maryland Financial Empowerment Center Network Pilot Program - Establishment

MBA Position: Support

This legislation would have created the Maryland Financial Empowerment Center Network Pilot Program within the Comptroller’s Office. The Pilot Program would have established financial empowerment centers across Maryland to provide free financial counseling on topics such as increasing savings, paying down debt, obtaining access to banking services, and improving credit scores. MBA supported this legislation as it provided a cost-free opportunity for Marylanders to seek financial education opportunities. HB 801 passed the House of Delegates, but did not receive a vote in the Senate Budget and Taxation Committee. 

FAILED - HB 756 - Petition for Guardianship of the Property of Alleged Disabled Person - Stay of Civil Actions and Proceedings

MBA Position: Favorable with Amendments

This legislation would have allowed a party to file a request for the stay of certain civil actions, including foreclosure actions, on the filing of a petition for guardianship of the property of an alleged disabled person. A stay would have been allowed to remain in effect for up to 90 days, and a court would have been authorized to lift the stay if the petition for guardianship was denied or if there was an appointment of a temporary or permanent guardian for the property of the disabled person. The party who filed for a stay would have been required to notify affected parties of the request, the appointment or a temporary or permanent guardian, and the denial, dismissal, or withdrawal of the petition. HB 756 passed the House but never received a vote in the Senate Judicial Proceedings Committee.

FAILED - HB 769/SB 682 - Real Property - Residential Foreclosures - Commencement Restrictions

MBA Position: Monitor as Introduced/Oppose as Amended

This legislation, as introduced, would have required loan-related correspondence during every billing cycle for two years prior to the filing of a foreclosure on materially delinquent mortgages. The House of Delegates passed an amended HB 769 that established a 10-year statute of limitations after the date of default on foreclosure actions in Maryland. HB 769 and SB 682 never came up for a vote in the Senate Judicial Proceedings Committee.

PASSED - HB 796/SB 566 - Real Property - Filing Fee for Residential Mortgage Foreclosure - Increase

Effective Date: October 1, 2025

MBA Position: Oppose

This legislation increases the foreclosure filing fee from $300 to $450. Originally introduced as an increase to $600, the MBA Government Relations Team was able to secure a lower increase. The funds from the filing fee go to the Maryland Housing Counseling Fund located within the Maryland Department of Housing and Community Development. Both HB 796 and SB 566 have been sent to the Governor for his signature. 

PASSED - HB 1018/SB 689 - Financial Institutions - Conventional Home Mortgage Loans - Assumption and Required Disclosures

Effective Date: October 1, 2025

MBA Position: Favorable with Amendments

This legislation requires Maryland-chartered banks and mortgage lenders to include a provision in mortgage loan documents, both prospectively and retroactively, authorizing the assumption of a mortgage in connection with a decree of absolute divorce. The remaining borrower must qualify for the loan for the assumption to be granted. The MBA Government Relations Team lobbied for the retroactivity piece to be removed. Both the House Economic Matters Committee and the Senate Finance Committee adopted language that kept the retroactivity provision in the bill but included language stating that an assumption under these circumstances can only be granted if the decree of absolute divorce was entered into on or after October 1, 2025. Both HB 1018 and SB 689 have been signed into law by the Governor.

FAILED - HB 1151 - Residential Real Property Sales - Appraisals

MBA Position: Favorable with Amendments

This legislation attempted to create a reconsideration of value (ROV) for the seller in a residential real property transaction. As originally introduced, this legislation created no additional burden on lenders. However, as passed by the House, this legislation put various requirements on mortgage lenders. Sellers would have been permitted to provide information on the property directly to an appraiser without lender approval, and lenders would have been required to provide a written copy of an appraisal to anyone who requested it. MBA offered amendments to address some of these concerns, but HB 1151 never received a vote from the Senate Judicial Proceedings Committee.

PASSED - HB 1516/SB 1026 - Financial Institutions - Consumer Credit - Application of Licensing Requirements (Maryland Secondary Market Stability Act of 2025)

Effective Date: Emergency Legislation - Effective Upon Enactment

MBA Position: Support

This legislation reverses the decision of the Estate of Brown v. Ward case, along with the Office of Financial Regulation’s January 10 guidance, and states that passive trusts in the secondary mortgage market are exempt from licensure. This legislation also establishes the Maryland Licensing Workgroup that will study and recommend changes to financial services licensing in the State. The MBA Government Relations Team worked tirelessly to lobby in support of this legislation, as the standing court decision and OFR guidance led several players in the secondary market to stop purchasing mortgages originated in Maryland. Both HB 1516 and SB 1026 have been signed into law by the Governor.

PASSED - HB 27/SB 19 - Estates and Trusts - Compensation of Guardians of Property and Trustees

Effective Date: October 1, 2025

MBA Position: Monitor

This legislation alters the trustee compensation calculation to allow adequate compensation for their work. Current Maryland law only allows trustees to be compensated based on percentages of income collected and the value of principal held in the trust each year. Because this amount can be very low in certain circumstances, this change adds language that allows a trustee to be compensated at a rate that is “reasonable under the circumstances” to ensure fair compensation. Both HB 27 and SB 19 have been signed into law by the Governor.

PASSED - HB 88/SB 158 - Estates and Trusts - Maryland Trust Decanting Act - Notification and Document Transmittal

Effective Date: October 1, 2025

MBA Position: Monitor

This legislation provides clarity on how documents required to be sent under the Maryland Trust Decanting Act must be provided. The Maryland Trust Decanting Act, passed in 2023, did not provide specified methods on how documents, such as a notice of the exercise of the decanting power, must be provided. A fiduciary must provide documents through certain types of mail, unless the person entitled to receive documents says an alternate method of delivery can be used. Both HB 88 and SB 158 have been signed into law by the Governor.

PASSED - HB 146/SB 126 - Estates and Trusts - Resignation of Trustee - Notice

Effective Date: October 1, 2025

MBA Position: Support

This legislation allows a trustee to resign if the trustee gives 30 days notice to qualified beneficiaries, the settlor, all cotrustees, and anyone who has a right to replace or appoint a successor to the resigning trustee. Under current Maryland law, a trustee can only resign with approval of the court. Seeking court approval will still be an option under this change, but the additional resignation option will allow trustee changes to be streamlined. Both HB 146 and SB 126 have been signed into law by the Governor.

PASSED - HB 261/SB 110 - Estates and Trusts - Priority of Claims on an Estate - Unpaid Child Support

Effective Date: October 1, 2025

MBA Position: Monitor

This legislation requires a personal representative of an estate to prioritize the payment of unpaid child support when paying the decedent’s obligations. Current Maryland law contain a priority list of eleven payments that a personal representative must make, and this legislation adds unpaid child support as the sixth priority in that ranking. HB 261 has been signed into law by the Governor.

PASSED - HB 315/SB 22 - Task Force to Study Fiduciary Adjudication in Maryland

Effective Date: July 1, 2025

MBA Position: Monitor

This legislation establishes the Task Force to Study Fiduciary Adjudication in Maryland. The Task Force is responsible for making recommendations to improve efficiency, uniformity, and quality of fiduciary adjudication. The Task Force will look at the entire fiduciary adjudication process, including the selection process of judges hearing fiduciary matters, court jurisdiction with respect to fiduciary matters, and how other states handle the fiduciary adjudication process. The Task Force’s recommendations are due by January 1, 2026. HB 315 has been signed into law by the Governor.

PASSED - HB 107/SB 49 - Consumer Protection - Automatic Renewals

Effective Date: June 1, 2026

MBA Position: Monitor

This legislation creates, among other things, a framework for the offer of automatic renewals in Maryland. A person or entity that offers an automatic renewal must do so in a clear and conspicuous manner that includes the price of the product after the initial term ends and how the subscription will change at the end of the initial term. The person or entity that offers an automatic renewal must provide the option to cancel the renewal in a clear and conspicuous manner. Exempted businesses include companies subject to Maryland Insurance Administration regulations and services regulated by the Maryland Public Service Commission, the Federal Communications Commission, and the Federal Energy Regulatory Commission. Both HB 107 and SB 49 have been signed into law by the Governor.

PASSED - HB 431/SB 413 - Consumer Protection - Consumer Contracts - Limitation Periods

Effective Date: June 1, 2026

MBA Position: Monitor

This legislation prohibits a consumer contract from containing a provision that provides a shorter time to bring an action on the contract than required under Maryland law, which is currently 3 years. This legislation only applies to consumer contracts on or after the effective date. If the contract contains a shorter timeframe, a court may not enforce that provision. HB 431 has been signed into law by the Governor.

FAILED - HB 591 - Statute of Limitations - Prosecution or Enforcement of Local Consumer Protection Codes

MBA Position: Oppose

This legislation would have increased the statute of limitations for the prosecution of local consumer protection codes from 1 year after the offense was committed to 3 years after local authorities either knew or reasonably should have known that that offense was committed. The MBA Government Relations Team raised concerns that this legislation could ultimately create a very lengthy statute of limitations, which in turn increases the costs of doing business. HB 591 passed the House of Delegates but did not come up for a vote in the Senate Judicial Proceedings Committee.

FAILED - HB 604/SB 466 - Criminal Law - Financial Exploitation of Vulnerable and Senior Adults

MBA Position: Favorable with Amendments

This legislation would have created additional penalties for caregivers and family members who knowingly and willingly obtain the property of a senior or vulnerable adult with the intent to deprive the senior or vulnerable adult of their property. A caregiver or family member convicted under this legislation would have been required to restore any stolen property, and could not inherit or benefit from an estate, insurance proceeds, of property of the victim upon their death if the stolen property was not restored. MBA raised concerns that a bank administering an estate could be held liable if funds were not disbursed in accordance with the court order, and those concerns were addressed via amendment. HB 466 passed both chambers but was not reviewed by the House for enrollment before adjournment.

FAILED - HB 805/SB 410 - Criminal Law - Mail and Package Theft

MBA Position: Support

This legislation would have established state-level criminal penalties for the theft of mail. A person who knowingly and willfully opened mail addressed to another could have been subject to a misdemeanor. A person who stole mail from USPS mailbox using an arrow key would have been subject to harsher penalties depending on the items of mail stolen. The MBA Government Relations Team supported this legislation as an additional tool to combat check fraud. Neither HB 805 nor SB 410 received a vote in committee.

FAILED - HB 1073 - Criminal Law - Theft - Mail and Packages (Porch Piracy Act of 2025)

MBA Position: Support

This legislation would have created a state-level criminal penalty for the theft of packages in Maryland. A person who knowing and willfully stole a package delivered to another with the intent to deprive the intended recipient would have been subject to a felony and imprisonment not exceeding 5 years. MBA supported this legislation as an additional tool to combat check fraud. HB 1073 never received a vote in the House Judiciary Committee.

FAILED - HB 1557 - Program to Protect Individuals Unemployed or Furloughed Due to Federal Actions - Establishment

MBA Position: Monitor

This legislation would have established a program within the Department of Labor to provide relief to certain Marylanders affected by actions of the federal government. Entities such as debt collectors, banks, and others would have been required to accept partial payments on certain types of loans, and if partial payments were made, could not impose late fees or penalties. In addition, affected Marylanders who are facing foreclosure would be granted a stay in court proceedings. This legislation was never considered by the House Rules and Executive Nominations Committee.

FAILED - HB 454 - Digital Asset and Blockchain Technology Task Force – Establishment

MBA Position: Favorable with Amendments

This legislation would have established the Digital Asset and Blockchain Technology Task Force, staffed by the Maryland Office of Financial Regulation. The Task Force would have studied blockchain technology and cryptocurrency and provided recommendations on regulation and use in the State. The MBA Government Relations Team requested an amendment to ensure that the banking industry was represented on the Task Force. HB 454 never came up for a vote in the House Economic Matters Committee.

PASSED - HB 761/SB 665 - Maryland Uniform Disposition of Abandoned Property Act - Revisions

Effective Date: October 1, 2025

MBA Position: Monitor

This legislation makes various alterations to the Maryland Uniform Disposition of Abandoned Property Act. Most notably, the legislation makes virtual currency subject to abandoned property laws in Maryland. The various provisions in the law are meant to update and streamline current processes to reconnect Marylanders with unclaimed property. Both HB 761 and SB 665 have been sent to the Governor for his signature.

FAILED - HB 1353 - Commercial Law - Uniform Commercial Code - Controllable Electronic Records

MBA Position: Monitor

This legislation would have added Article 12 of the Uniform Commercial Code to the Maryland Uniform Commercial Code to establish provisions governing the transfer of controllable electronic records, controllable accounts, and controllable payment intangibles. The hearing on HB 1353 was cancelled, so it was never considered by the House Economic Matters Committee.

FAILED - HB 1389 - Strategic Bitcoin Reserve Act of Maryland

MBA Position: Oppose

This legislation would have established the Maryland Bitcoin Reserve Fund to serve as a reserve asset for Maryland through investment in Bitcoin. Funds received from unlawful gambling would have been deposited into this Fund for investment. The MBA Government Relations Team opposed this legislation, citing that investing in a largely unregulated asset creates unnecessary risk for Maryland. HB 1389 never received a vote in the House Judiciary Committee.

PASSED - SB 305 - Financial Institutions and Activities - Virtual Currency Kiosks - Registration and Regulation

Effective Date: July 1, 2025

MBA Position: Monitor

This legislation established registration and operating requirements for virtual currency kiosks to operate in Maryland. These kiosks will be limited in the amount of funds that can be transferred and must provide certain disclosures during transactions. ATM machines are exempt from the definition of virtual currency kiosks. SB 305 has been signed into law by the Governor.

PASSED - HB 59/SB 192 - Property Tax - Tax Sales - Revisions

Effective Date: January 1, 2026

MBA Position: Monitor

This legislation makes various changes to Maryland tax sale laws, including the expansion of many provisions from being applicable just in Baltimore City to be applicable statewide. This expansion is meant to assist all Maryland homeowners with retaining their properties. Properties with $1,000 or less in taxes owed must be withheld from tax sale. Certain tax sale withholding provisions will now include properties that are occupied by a heir of the deceased owner so that heirs can utilize the Homeowners Protection Program. A plaintiff wishing to foreclose on an owner-occupied property must send notice of the filing to the State Tax Sale Ombudsman so that the Ombudsman can connect these homeowners with additional resources. In addition, the rate of redemption in each county has been capped at 10% and each county is now required to establish a registry that designates properties withheld from tax sale. HB 59 has been signed into law by the Governor.

PASSED - HB 390/SB 327 - Affordable Housing Payment In Lieu of Taxes Expansion Act

Effective Date: June 1, 2025

MBA Position: Monitor

This legislation authorizes a rental property owner and the county in which the rental property is located to enter an agreement that allows the owner to pay a negotiated amount instead of the county property tax rate if the owner agrees to maintain at least 25% of the rental housing units on the property as affordable dwelling units. The county may require more than 25% of the rental housing units to be affordable dwelling units. Both HB 390 and SB 327 have been signed into law by the Governor.

PASSED - HB 546/SB 605 - Digital Advertising Gross Revenues Tax - Assessments - Appeals and Corrections

Effective Date: January 1, 2026

MBA Position: Monitor

This legislation allows a person or entity subject to the digital advertising gross revenues tax to appeal the amount of the tax within 30 days after the mailing of the notice of assessment. The Comptroller’s Office will be required to hold an informal hearing and then act on the appeal, including decreasing or abating the assessment and applying additional tax, penalties, and interest if warranted. Both HB 546 and SB 605 have been sent to the Governor for his signature.

PASSED - HB 790 - Property Tax - Payment Plans - Notice to Taxpayers

Effective Date: May 1, 2027

MBA Position: Monitor

This legislation requires the State Tax Sale Ombudsman to contract with a vendor to operate an installment payment program for the payment of property taxes. The Ombudsman is also required to post notice of installment payments programs on their website and in mail sent to a homeowner before a property is first advertised for tax sale. In addition, each county tax collector is required to send a separate insert on installment payment programs with each property tax bill. HB 790 has been signed into law by the Governor.

PASSED - HB 953 - Tax Sales - Homeowner Protection Program - Funding and Alterations

Effective Date: July 1, 2025

MBA Position: Monitor

This legislation requires each county tax collector to include information on the Homeowner Protection Program on their website. The State Tax Sale Ombudsman is required to prioritize maximum participation in the Program. In addition, the State Department of Assessment & Taxation is required to collect and report additional information, and the State and local governments must contribute certain monies to the Program. HB 953 has been sent to the Governor for his signature.

PASSED - HB 1189/SB 550 - Baltimore City - Property Tax - Authority to Impose on Vacant and Abandoned Property Owned by Nonprofit Organizations

Effective Date: June 1, 2025

MBA Position: Monitor

This legislation authorizes Baltimore City to impose the general property tax rate, and a special property tax rate, on properties that would otherwise be exempt from property tax if the property is a vacant lot or improved property cited as vacant and unfit for human habitation or other authorized use on a housing or building violation notice. The purpose of this legislation is to incentivize property owners who are exempt from property tax, such as nonprofits, to utilize owned property. SB 550 has been signed into law by the Governor.

FAILED - HB 823 - Generative Artificial Intelligence - Training Data Transparency

MBA Position: Oppose

This legislation would have required the developer of a generative artificial intelligence system to publish on their website information on the data used to train the generative artificial intelligence system. This information needed to be updated every time a developer substantially modified their system. The MBA Government Relations Team raised concerns that banking regulators already have access to this information, meaning that it is already open to scrutiny. HB 823 never received a vote in the House Economic Matters Committee.

PASSED - HB 956 - Consumer Protection - Workgroup on Artificial Intelligence Implementation

Effective Date: July 1, 2025

MBA Position: Favorable with Amendments

This legislation established the Workgroup on Artificial Intelligence Implementation, which is tasked with studying and providing recommendations on artificial intelligence regulation in Maryland. The Workgroup consists of over 30 individuals with knowledge in artificial intelligence. The MBA Government Relations Team sought to add a representative of the financial services industry, but that amendment was not included. HB 956 has been signed into law by the Governor.

FAILED - HB 1331- Consumer Protection - Artificial Intelligence

MBA Position: Monitor

This legislation would have required developers and deployers of high-risk artificial intelligence to protect customers from certain risks such as algorithmic discrimination. Developers would have been required to make certain disclosures when selling high-risk artificial intelligence systems, and deployers would have been required to complete certain data impact assessments. Any violation of this legislation would have been deemed a violation of the Maryland Consumer Protection Act. HB 1331 never received a vote in the House Economic Matters Committee.

FAILED - SB 936 - Consumer Protection - High-Risk Artificial Intelligence - Developer and Deployer Requirements

MBA Position: Monitor

This legislation would have established several requirements for developers and deployers of high-risk artificial intelligence systems to protect against algorithmic discrimination. Developers and deployers would have been required to create risk management policies and impact assessments. In addition, disclosures would have been made to the public on how developers and deployers manage known risks. SB 936 never received a vote in the Senate Finance Committee. 

FAILED - HB 693/SB 754 - Commercial Financing - Small Business Truth in Lending Act

MBA Position: Support

This legislation would have established a regulatory framework for commercial financing transactions, including such items as disclosures, annual percentage rate calculations, repayment terms, and the extension of special offers. MBA supported this legislation as it provides safeguards for Maryland businesses against financing companies that are not subject to similar oversight as traditional lenders. HB 693 passed out of the House Economic Matters Committee but was never considered by the full House of Delegates. SB 754 passed the Senate but did not receive a vote in the House Economic Matters Committee.

PASSED - HB 1294 - Commercial Law - Credit Regulation - Earned Wage Access and Credit Modernization

Effective Date: October 1, 2025

MBA Position: Monitor

This legislation establishes a licensing and operating framework for earned wage access products in Maryland. Earned wage access providers must be licensed to operate and are exempt from other provisions of State law governing lending, credit, or debt. A provider of an earned wage access product must provide numerous disclosures to users and is prohibited from charging certain fees and obtaining certain information on a consumer. HB 1294 has been sent to the Governor for his signature. 

PASSED - HB 428/SB 349 - Medical Debt - Complaints for Money Judgment and Real Property Liens

Effective Date: October 1, 2025

MBA Position: Monitor

This legislation prohibits the creation of a lien on owner-occupied residential property if the lien was created by the failure to pay medical debt. Medical debt is defined as a debt owed to a person whose primary business is providing medical services, products, or devices. Medical debt does not include credit cards, unless the card is issued for the sole purpose of paying for health care services. Both HB 428 and SB 349 have been sent to the Governor for his signature.

PASSED - HB 1020/SB 614 - Consumer Protection - Credit Reporting - Medical Debt (Fair Medical Debt Reporting Act)

Effective Date: October 1, 2025

MBA Position: Oppose

This legislation prohibits a consumer reporting agency from maintaining a file on or furnishing any consumer report with medical debt information. A person is also prohibited from considering medical debt when determining creditworthiness. MBA opposed this legislation as any information being withheld from a credit report does not present a clear picture of a person’s creditworthiness and may increase the cost of lending. The definition of medical debt matches the definition in HB 428/SB 439. HB 1020 has been signed into law by the Governor.

PASSED - HB 30/SB 228 - Limited Line Credit Insurance - Qualification of Applicants

Effective Date: October 1, 2025

MBA Position: Monitor

This legislation requires an applicant for a limited line credit insurance license to complete an instructional program that is designed to provide a comprehensive and accurate explanation of limited line credit insurance. The insurer that provides the instructional program is required to keep copies of instructional materials and lists of individuals who completed the courses, and must provide these documents to the Maryland Insurance Commissioner upon request. SB 228 has been sent to the Governor for his signature. 

PASSED - HB 347/SB 150 - Real Property - Recordation and Land Records - Requirements

Effective Date: October 1, 2025

MBA Position: Monitor

This legislation alters provisions relating to recordation of land records. Language in the bill alters certain formatting requirements, authorizes the acceptance of electronic records, authorizes court clerks to assess fees for the recordation of subdivision plats, repeals references made to bound books and microfilm, and other stylistic and technical changes. Both HB 347 and SB 150 were signed into law by the Governor.

FAILED - HB 393/SB 31 - Commercial Law - Attachment of Wages - Exemptions (Exempt Income Protection Act)

MBA Position: Oppose

This legislation would have increased the amount of disposable wages exempt from garnishment. The greater of either 75% of disposable wages including social security, disability or unemployment benefits, or 150% of the federal poverty level for a household of the judgment debtor’s size, would have been exempt from garnishment. The MBA Government Relations Team expressed concerns that tying the garnishment exemption to the federal poverty level would greatly restrict a creditor’s ability to collect debt, which in turn would increase the cost of lending. Neither HB 393 nor SB 31 received a vote in committee.

PASSED - HB 1171/SB 992 - Corporations and Associations - Revisions

Effective Date: October 1, 2025

MBA Position: Monitor

This legislation establishes a process for the transfer of assets that serve as collateral for a mortgage, pledge, or security interest without the approval of stockholders, subject to certain exceptions. This legislation also repeals certain provisions of law that specify what should be included in the articles of merger if a limited partnership, LLC, or partnership is a party to the articles. HB 1171 has been signed into law by the Governor.

MBA would like to thank members of the MBA Government Relations Council (GRC), including GRC Chair Kevin Benson, who serves as the President & CEO of Rosedale Federal Savings & Loan Association. The GRC serves as the industry sounding board on legislation and guides the advocacy efforts of the MBA Government Relations Team.

MBA also acknowledges the leadership of MBA Chair Janet Currie, who serves as President of Bank of America Greater Maryland, as well as the tireless work of the MBA Government Relations Team – Tisha Edwards, President and CEO; Evan Richards, Head of Government and Community Relations; and Robert Enten, Jason Weintraub, and Chris Rahl, of Gordon Feinblatt, LLC. Countless hours were spent reviewing bills, drafting amendments, and meeting with legislators to advocate on behalf of the banking industry, which contributed to the successful outcome of the 2025 Legislative Session.