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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0433*
HOUSE BILL 433
C2, N1 6lr1909
By: Delegates Qi and Adams
Introduced and read first time: January 22, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Business Regulation – Collection Agencies – Licensure Exemption for Property 2
Managers 3
FOR the purpose of exempting property managers engaged in certain activities from the 4
requirement to hold a license to do business as a collection agency from the State 5
Collection Agency Licensing Board ; and generally relating to property managers, 6
collection agencies, and the State Collection Agency Licensing Board. 7
BY repealing and reenacting, with amendments, 8
Article – Business Regulation 9
Section 7–102 10
Annotated Code of Maryland 11
(2024 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Business Regulation 14
Section 7–301(a) 15
Annotated Code of Maryland 16
(2024 Replacement Volume and 2025 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Business Regulation 20
7–102. 21
(a) (1) In this section the following words have the meanings indicated. 22
(2) “Common ownership” means direct or indirect ownership of more than 23
50% of a person. 24
2 HOUSE BILL 433
(3) “Principal business” means a business activity of a person that 1
comprises more than 50% of the total business activities of the person. 2
(4) “PROPERTY MANAGER” MEANS A PERSON RESPONSIBLE FOR THE 3
MANAGEMENT AND MAINTENANCE OF REAL PROPERTY, INCLUDING: 4
(I) FINDING TENANTS; 5
(II) COLLECTING RENT, UTILITIES, AND FEES; 6
(III) PAYING EXPENSES AND APPLICABLE TAXES; 7
(IV) MAINTAINING UTILITIES AND SYSTEMS; AND 8
(V) TAKING ANY NECESSARY ACTIONS TO MANAGE AN D 9
OPERATE REAL PROPERTY. 10
(b) This title does not apply to: 11
(1) a bank; 12
(2) a federal or State credit union; 13
(3) a mortgage lender; 14
(4) a person acting under an order of a court of competent jurisdiction; 15
(5) a licensed real estate broker, or an individual acting on behalf of the 16
real estate broker, in the collection of rent or allied charges for property; 17
(6) a savings and loan association; 18
(7) a title company as to its escrow business; 19
(8) a trust company; 20
(9) a lawyer who is collecting a debt for a client, unless the lawyer has an 21
employee who: 22
(i) is not a lawyer; and 23
(ii) is engaged primarily to solicit debts for collection or primarily 24
makes contact with a debtor to collect or adjust a debt through a procedure identified with 25
the operation of a collection agency; [or] 26
HOUSE BILL 433 3
(10) a person who is collecting a debt for another person if: 1
(i) both persons are related by common ownership; 2
(ii) the person who is collecting a debt does so only for those persons 3
to whom it is related by common ownership; 4
(iii) the principal business of the person who is collecting a debt is not 5
the collection of debts; and 6
(iv) before collecting a debt, the person files with the Board: 7
1. the correct name of the person; 8
2. an address and telephone number of a contact person; and 9
3. the name of the person’s resident agent; OR 10
(11) A PROPERTY MANAGER COLLECTING PAYMENT FOR RENT, 11
UTILITIES, OR FEES FROM A RESIDENTIAL TENANT ON BEHALF OF A PROPE RTY 12
OWNER IF: 13
(I) PAYMENT IS COLLECTED ONLY DURING THE TERM OF THE 14
LEASE OR A HOLDOVER PERIOD; AND 15
(II) THE COLLECTION OF DEBTS, INCLUDING FOR RENT, 16
UTILITIES, AND FEES IS NOT THE PRIMARY PURPOSE OF THE PROPERTY MANAGER 17
WITH RESPECT TO THE PROPERTY. 18
7–301. 19
(a) Except as otherwise provided in this title, a person must have a license 20
whenever the person does business as a collection agency in the State. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2026. 23