Bill
Bill > SB603
summary
Introduced
02/06/2023
02/06/2023
In Committee
02/06/2023
02/06/2023
Crossed Over
Passed
Dead
04/10/2023
04/10/2023
Introduced Session
2023 Regular Session
Bill Summary
AN ACT concerning Real Property - Residential Leases - Fee in Lieu of Security Deposit FOR the purpose of authorizing a landlord to offer the payment of a fee in lieu of a security deposit in a residential lease subject to certain requirements; requiring a landlord to purchase certain insurance coverage using a fee in lieu of a security deposit and establishing certain procedures if the landlord does not purchase insurance coverage or the insurance coverage is terminated by an insurer; establishing certain procedural requirements for a landlord and an insurer relating to certain insurance claims; authorizing a tenant to dispute certain claims by a landlord and providing that claims by a landlord or an insurer are void under certain circumstances; providing that a tenant is entitled to certain damages and attorney’s fees under certain circumstances; and generally relating to fees in lieu of security deposits for residential leases. BY repealing and reenacting, without amendments, Article - Real Property Section 8-203(a)(1) Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article - Real Property Section 8-203(a)(3) Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) BY adding to Article - Real Property Section 8-203.2 Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) SENATE BILL 603
AI Summary
This bill authorizes landlords to offer tenants the option to pay a fee in lieu of a security deposit for residential leases, subject to certain requirements. Landlords must use the fee to purchase insurance coverage for unpaid rent, fees, and damages beyond normal wear and tear. The bill establishes procedures for landlords and insurers related to claims, and allows tenants to dispute claims. It also provides tenants with the right to recover damages and attorney's fees if a landlord or insurer materially violates the law. The bill applies only prospectively to leases entered into on or after October 1, 2023.
Committee Categories
Justice
Sponsors (2)
Last Action
Senate Judicial Proceedings Hearing (13:00:00 3/7/2023 ) (on 03/07/2023)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0603?ys=2023RS |
| BillText | https://mgaleg.maryland.gov/2023RS/bills/sb/sb0603f.pdf |
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