Task Force to Study Deed Fraud

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb0130*

HOUSE BILL 130
E1, E4 (6lr1066)
ENROLLED BILL
— Judiciary/Judicial Proceedings —
Introduced by Delegate Ruff Delegates Ruff, Moreno, Conaway, Woods, Cardin,
Phillips, Stinnett, Simpson, Taylor, and McComas

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to t he Governor, for his approval this

_______ day of _______________ at ________________________ o’clock, ________M.

______________________________________________
Speaker.

CHAPTER ______

AN ACT concerning 1

Criminal Law – Deed Fraud – Prohibition, Deed Fraud Prevention Grant Fund, 2
and Task Force to Study Deed Fraud 3

FOR the purpose of prohibiting the intentional fraudulent sale, conveyance, or lease or 4
attempted sale, conveyance, or lease of real property by a person who does not own 5
the real property; prohibiting the acquisition, sale, or conveyance or the attempted 6
acquisition, sale, or conveyance of real property by deception, intimidation, threat, 7
or undue influence; establishing the Deed Fraud Prevention Grant Fund; 8
establishing the Task F orce to Study Deed Fraud; and generally relating to deed 9
fraud. 10

BY adding to 11
Article – Courts and Judicial Proceedings 12
Section 5–106(kk) 13
2 HOUSE BILL 130

Annotated Code of Maryland 1
(2020 Replacement Volume and 2025 Supplement) 2

BY repealing and reenacting, with amendments, 3
Article – Criminal Law 4
Section 8–601 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2025 Supplement) 7

BY adding to 8
Article – Criminal Law 9
Section 8–906 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2025 Supplement) 12

BY repealing and reenacting, with amendments, 13
Article – Public Safety 14
Section 2–307 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2025 Supplement) 17

BY adding to 18
Article – Public Safety 19
Section 2 –801 and 2 –802 to be under the new subtitle “Subtitle 8. Deed Fraud 20
Prevention Grant Fund” 21
Annotated Code of Maryland 22
(2022 Replacement Volume and 2025 Supplement) 23

BY repealing and reenacting, without amendments, 24
Article – State Finance and Procurement 25
Section 6–226(a)(2)(i) and (ii) 26
Annotated Code of Maryland 27
(2021 Replacement Volume and 2025 Supplement) 28

BY repealing and reenacting, with amendments, 29
Article – State Finance and Procurement 30
Section 6–226(a)(2)(iii)212. and 213. 31
Annotated Code of Maryland 32
(2021 Replacement Volume and 2025 Supplement) 33

BY adding to 34
Article – State Finance and Procurement 35
Section 6–226(a)(2)(iii)214. 36
Annotated Code of Maryland 37
(2021 Replacement Volume and 2025 Supplement) 38

HOUSE BILL 130 3

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2

Article – Courts and Judicial Proceedings 3

5–106. 4

(KK) A PROSECUTION FOR A VI OLATION OF § 8–906(C) OF THE CRIMINAL 5
LAW ARTICLE SHALL BE INST ITUTED WITHIN 1 YEAR AFTER THE VICTI M OF THE 6
OFFENSE KNEW OR REAS ONABLY SHOULD HAVE K NOWN THAT THE FRAUD 7
OCCURRED. 8

Article – Criminal Law 9

8–601. 10

(a) A person, with intent to defraud another, may not counterfeit, cause to be 11
counterfeited, or willingly aid or assist in counterfeiting any: 12

(1) bond; 13

(2) check; 14

(3) [deed; 15

(4)] draft; 16

[(5)] (4) endorsement or assignment of a bond, draft, check, or promissory 17
note; 18

[(6)] (5) entry in an account book or ledger; 19

[(7)] (6) letter of credit; 20

[(8)] (7) negotiable instrument; 21

[(9)] (8) power of attorney; 22

[(10)] (9) promissory note; 23

[(11)] (10) release or discharge for money or property; 24

[(12)] (11) title to a motor vehicle; 25

[(13)] (12) waiver or release of mechanics’ lien; or 26
4 HOUSE BILL 130

[(14)] (13) will or codicil. 1

(b) A person may not knowingly, willfully, and with fraudulent intent possess a 2
counterfeit of any of the items listed in subsection (a) of this section. 3

(c) (1) A person who violates subsection (a) of this section is guilty of a felony 4
and on conviction is subject to imprisonment not exceeding 10 years or a fine not exceeding 5
$1,000 or both. 6

(2) A person who violates subsection (b) of this section is guilty of a 7
misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine 8
not exceeding $1,000 or both. 9

(d) Notwithstanding a ny other provision of law, the prosecution of an alleged 10
violation of this section or for an alleged violation of a crime based on an act that establishes 11
a violation of this section may be commenced in any county in which: 12

(1) an element of the crime occurred; 13

(2) the [deed or other ] alleged counterfeit instrument is recorded in the 14
county land records, filed with the clerk of the circuit court, or filed with the register of 15
wills; 16

(3) the victim resides; or 17

(4) if the victim is not an individual, the victim conducts business. 18

8–906. 19

(A) A PERSON, WITH INTENT TO DEFRAUD ANOTHER, MAY NOT: 20

(1) CLAIM TO SELL OR CON VEY OR ATTEMPT TO SE LL OR CONVEY 21
REAL PROPERTY THAT THE GRANTOR DOES NOT OWN; 22

(2) CLAIM TO SELL OR CON VEY OR ATTEMPT TO SELL OR CONVEY 23
REAL PROPERTY THAT THE GRANTOR LACKS SUFFICIENT AUTHORITY TO TRANSFER; 24

(3) CLAIM TO LEASE OR AT TEMPT TO LEASE REAL PROPERTY THAT 25
BELONGS TO ANOTHER; 26

(4) OBTAIN OR ATTEMPT TO OBTAIN, OR SELL OR CONVEY , OR 27
ATTEMPT TO SELL OR C ONVEY THE REAL PROPERTY OF ANO THER THROUGH THE 28
EXECUTION OF A DEED BY THE RIGHTFUL OWNER OF THE PROPERTY BY DECEPTION, 29
INTIMIDATION, THREAT, OR UNDUE INFLUENCE; 30
HOUSE BILL 130 5

(5) COUNTERFEIT A DEED OR CAUSE A DEED TO BE COUNTERFEITED; 1
OR 2

(6) RECORD A DEED OR CAU SE A DEED TO BE RECORDED IN 3
FURTHERANCE OF A VIOLATION OF THIS SECTION. 4

(B) A PERSON MAY NOT AID O R ASSIST ANOTHER IN A VIOLATION OF 5
SUBSECTION (A) OF THIS SECTION. 6

(C) A PERSON MAY NOT KNOWINGLY, WILLFULLY, AND WITH FRAUDULENT 7
INTENT POSSESS A COUNTERFEIT DEED. 8

(D) (1) A PERSON WHO VIOLATES SUBSECTION (A) OR (B) OF THIS 9
SECTION IS GUILTY OF A FELONY AND ON CONV ICTION IS SUBJECT TO 10
IMPRISONMENT NOT EXC EEDING 10 YEARS OR A FINE NOT EXCEEDING $7,500 OR 11
BOTH. 12

(2) A PERSON WHO VIOLATES SUBSECTION (C) OF THIS SE CTION IS 13
GUILTY OF A MISDEMEA NOR AND ON CONVICTIO N IS SUBJECT TO IMPR ISONMENT 14
NOT EXCEEDING 3 YEARS OR A FINE NOT EXCEEDING $7,500 OR BOTH. 15

(E) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE PROSECUTION 16
OF AN ALLEGED VIOLATION OF THIS SECTION OR FOR AN ALLEGED VIOLATION OF A 17
CRIME BASED ON AN ACT THAT ESTABLISHES A VIOLATION OF THIS SECTION MAY BE 18
COMMENCED IN ANY COUNTY IN WHICH: 19

(1) AN ELEMENT OF THE CRIME OCCURRED; 20

(2) THE DEED IS RECORDED IN THE COUNTY LAND RECORDS; 21

(3) THE VICTIM RESIDES; OR 22

(4) IF THE VICTIM IS NOT AN INDIVIDUAL , THE VICTIM CONDUCTS 23
BUSINESS. 24

(F) FINES COLLECTED UNDER THIS SECTION SHALL B E PAID INTO THE 25
DEED FRAUD PREVENTION GRANT FUND UNDER § 2–802 OF THE PUBLIC SAFETY 26
ARTICLE. 27

Article – Public Safety 28

2–307. 29
6 HOUSE BILL 130

(a) (1) The Department shall collect, analyze, and disseminate: 1

(i) information about the incidence of crime in the State , 2
INCLUDING DISAGGREGA TED INFORMATION ON I NCIDENTS OF FRAUD WI TH 3
SPECIFIC INFORMATION ON VIOLATIONS OF § 8–906 OF THE CRIMINAL LAW 4
ARTICLE; and 5

(ii) information, including race and sex, on the total number of law 6
enforcement employees, de–identified and disaggregated by: 7

1. position for civilian employees; and 8

2. rank for sworn employees. 9

(2) Each law enforcement agency shall provide the Department with the 10
information described in paragraph (1) of this subsection in the format that the Secretary 11
requires. 12

(b) (1) The Department shall collect and analyze information about incidents 13
apparently directed against an individual or group because of race, color, religious beliefs, 14
sexual orientation, gender, disability, national origin, or homelessness. 15

(2) Each local law enforcement agency and the State Fire Marshal shall 16
provide the Department with the information described in paragraph (1) of this subsection. 17

(3) The Department shall adopt procedures for the collection and analysis 18
of the information described in paragraph (1) of this subsection. 19

(4) The Department shall make quarterly reports to the Commission on 20
Civil Rights about the information described in paragraph (1) of this subsection. 21

SUBTITLE 8. DEED FRAUD PREVENTION GRANT FUND. 22

2–801. 23

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 24
INDICATED. 25

(B) “DEED FRAUD” MEANS A VIOLATION OF § 8–906 OF THE CRIMINAL LAW 26
ARTICLE. 27

(C) “FUND” MEANS THE DEED FRAUD PREVENTION GRANT FUND. 28

2–802. 29
HOUSE BILL 130 7

(A) THERE IS A DEED FRAUD PREVENTION GRANT FUND. 1

(B) THE PURPOSE OF THE FUND IS TO PROVIDE GRANTS TO: 2

(1) AID STATE AND LOCAL LAW E NFORCEMENT AGENCIES IN 3
IDENTIFYING AND PREVENTING DEED FRAUD; 4

(2) SUPPORT LEGAL SERVIC ES FOR VICTIMS OF DE ED FRAUD , IN 5
COORDINATION WITH THE MARYLAND LEGAL SERVICES CORPORATION; AND 6

(3) OFFER EMERGENCY HOUS ING ASSISTANCE TO DI SPLACED 7
VICTIMS OF DEED FRAUD. 8

(C) THE DEPARTMENT SHALL ADMINISTER THE FUND. 9

(D) THE DEPARTMENT, IN COORDINATION WITH THE MARYLAND LEGAL 10
SERVICES CORPORATION, MAY ESTABLISH STANDARDS TO DETERMINE ELIGIBILITY 11
FOR GRANTS UNDER THE FUND. 12

(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 13
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 14

(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 15
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 16

(F) THE FUND CONSISTS OF: 17

(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 18

(2) FINES COLLECTED UNDE R § 8–906 OF THE CRIMINAL LAW 19
ARTICLE; 20

(3) INTEREST EARNINGS; AND 21

(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 22
THE BENEFIT OF THE FUND. 23

(G) THE FUND MAY BE USED ONLY TO: 24

(1) CARRY OUT THE PURPOSES OF THIS SUBTITLE; AND 25

8 HOUSE BILL 130

(2) PAY FOR THE ADMINIST RATIVE EXPENSES OF O PERATING THE 1
FUND. 2

(H) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 3
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 4

(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 5
THE FUND. 6

(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 7
WITH THE STATE BUDGET. 8

(J) MONEY EXPENDED FROM THE FUND IS SUPPLEMENTAL TO AND IS NOT 9
INTENDED TO TAKE THE PLACE OF FUNDIN G THAT OTHERWISE WOU LD BE 10
APPROPRIATED FOR DEED FRAUD PREVENTION. 11

(K) IN FISCAL YEAR 2028, THE GOVERNOR SHALL INCLUDE IN THE ANNUAL 12
BUDGET BILL AN APPROPRIATION OF $200,000 TO THE FUND. 13

Article – State Finance and Procurement 14

6–226. 15

(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 16

(ii) Notwithstanding any other provision of law, and unless 17
inconsistent with a federal law, grant agreement, or other federal requirement or with the 18
terms of a gift or settlement agreement, net interest on all State money allocated by the 19
State Treasurer under this section to special funds or accounts, and otherwise entitled to 20
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 21
Fund of the State. 22

(iii) The provisions of subparagraph (ii) of this paragraph do not 23
apply to the following funds: 24

212. the Department of Social and Economic Mobility Special 25
Fund; [and] 26

213. the Population Health Improvement Fund; AND 27

214. THE DEED FRAUD PREVENTION GRANT FUND. 28

SECTION 2. AND BE IT FURTHER ENACTED, That: 29

(a) There is a Task Force to Study Deed Fraud. 30
HOUSE BILL 130 9

(b) The Task Force consists of the following members: 1

(1) the Attorney General, or the Attorney General’s designee one 2
representative of the Maryland State’s Attorneys’ Association, designated by the President of 3
the Association; 4

(2) one representative of the Judiciary, designated by the Chief Justice of 5
the Supreme Court of Maryland; 6

(3) the Director of the State Department of Assessments and Taxation, or 7
the Director’s designee; 8

(4) the Executive Director of the Maryland Legal Services Corporation, or 9
the Executive Director’s designee; 10

(5) the Secretary of Housing and Community Development, or the 11
Secretary’s designee; and 12

(6) the following members, appointed by the Governor: 13

(i) one representative of the land title insurance industry; and 14

(ii) one individual with experience as a notary public. 15

(c) The Governor shall designate the chair of the Task Force. 16

(d) The Administrative Office of the Courts Office of the Attorney General 17
Department of Legislative Services shall provide staff for the Task Force. 18

(e) A member of the Task Force: 19

(1) may not receive compensation as a member of the Task Force; but 20

(2) is entitled to reimbursement for expenses under the Standard State 21
Travel Regulations, as provided in the State budget. 22

(f) The Task Force shall: 23

(1) study incidents of deed fraud in Maryland, including the number of 24
deed fraud complaints, the number of resolved deed fraud cases, the amount of restitution 25
awarded, and geographic and demographic trends; 26

(2) study how deed fraud is combatted in other states; 27

(3) identify patterns used by perpetrators of deed fraud and patterns in 28
demographics of victims of deed fraud; 29
10 HOUSE BILL 130

(4) develop recommendations for deed fraud detection tools; 1

(5) conduct an analysis on victims of deed fraud that identifies the 2
economic impact on victims; and 3

(6) make recommendations for combatting deed fraud in the State, 4
including strategies for intergovernmental coordination to more effectively detect and 5
prevent deed fraud. 6

(g) On or before July 1, 2028, the Task Force shall report its findings and 7
recommendations to the General Assembly in accordance with § 2 –1257 of the State 8
Government Article. 9

SECTION 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
October 1, 2026. Section 2 of this Act It shall remain effective for a period of 2 years and, 11
at the end of September 30, 2028, Section 2 of this Act, with no further action required by 12
the General Assembly, shall be abrogated and of no further force and effect. 13

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.