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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 la w by
amendment.
*sb0172*
SENATE BILL 172
C1 6lr1155
SB 586/25 – JPR (PRE–FILED)
By: Senator Muse
Requested: October 10, 2025
Introduced and read first time: January 14, 2026
Assigned to: Judicial Proceedings
Committee Report: Favorable
Senate action: Adopted
Read second time: February 25, 2026
CHAPTER ______
AN ACT concerning 1
Corporations and Associations – Methodist Churches – Trust Requirement 2
Repeal and Disaffiliation 3
FOR the purpose of repealing a requirement that the assets of any Methodist Church be 4
held in trust for the United Methodist Church and be subject to the control of the 5
United Methodist Church; repealing a certain provision of law providi ng that the 6
absence of a trust clause in any deed or conveyance executed before a certain date 7
does not exclude certain local churches from certain provisions of law or 8
responsibilities related to the United Methodist Church; providing that a local 9
church that disaffiliates from the United Methodist Conference shall retain 10
ownership of its real property, subject to a certain reimbursement requirement; and 11
generally relating to Methodist churches. 12
BY repealing 13
Article – Corporations and Associations 14
Section 5–326 and 5–327 15
Annotated Code of Maryland 16
(2025 Replacement Volume) 17
BY adding to 18
Article – Corporations and Associations 19
Section 5–326 20
Annotated Code of Maryland 21
(2025 Replacement Volume) 22
2 SENATE BILL 172
BY renumbering 1
Article – Corporations and Associations 2
Section 5–328 3
to be Section 5–327 4
Annotated Code of Maryland 5
(2025 Replacement Volume) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Corporations and Associations 9
[5–326. 10
All assets owned by any Methodist Church, including any former Methodist 11
Episcopal Church, Methodist Protestant Church, Methodist Episcopal Church, South, the 12
Washington Methodist Conference, or Evangelical United Brethren Church, whether 13
incorporated, unincorporated, or abandoned: 14
(1) Shall be held by the trustees of the church in trust for the United 15
Methodist Church; and 16
(2) Are subject to the discipline, usage, and ministerial appointments of the 17
United Methodist Church, as from time to time autho rized and declared by the general 18
conference of that church.] 19
5–326. 20
(A) SUBJECT TO SUBSECTION S (B) AND (C) OF THIS SECTION , A LOCAL 21
CHURCH MAY DISAFFILI ATE FROM THE UNITED METHODIST CONFERENCE AND 22
RETAIN OWNERSHIP OF ITS PROPERTY. 23
(B) A DISAFFILIATING LOCAL CHURCH SHALL REIMBUR SE THE UNITED 24
METHODIST CONFERENCE FOR FINANC IAL INVESTMENTS MADE BY THE UNITED 25
METHODIST CONFERENCE FOR THE AC QUISITION, MAINTENANCE, OR 26
IMPROVEMENT OF REAL PROPERTY USED BY THE LOCAL CHURCH IN ACCORDANCE 27
WITH SUBSECTION (C) OF THIS SECTION. 28
(C) (1) THE UNITED METHODIST CONFERENCE SHALL PROV IDE A 29
DISAFFILIATING LOCAL CHURCH WITH A FULL AND TRANSPARENT ACCOUNTING OF 30
ALL FUNDS THE UNITED METHODIST CONFERENCE HAS CONTRI BUTED FOR THE 31
ACQUISITION, MAINTENANCE, AND IMPROVEMENT OF THE REAL PROPERTY USED BY 32
THE LOCAL CHURCH FRO M WHICH THE AMOUNT O F THE REIMBURSEMENT 33
REQUIRED UNDER SUBSECTION (B) SHALL BE DETERMINED. 34
SENATE BILL 172 3
(2) A DISAFFILIATING LOCAL CHURCH MAY NOT BE RE QUIRED TO 1
REIMBURSE THE UNITED METHODIST CONFERENCE FOR ANY AMOUNTS 2
ATTRIBUTABLE TO FINA NCIAL INVESTMENTS FO R THE ACQUISITION , 3
MAINTENANCE, OR RENOVATION OF REAL PROPERTY MADE BY THE LOCAL CHURCH. 4
[5–327. 5
The absence of a trust clause in any deed or other conveyance executed before June 6
1, 1953, does not re lieve or exclude a local church in any way from its Methodist 7
connectional responsibilities or from the provisions of this part and does not absolve a local 8
congregation or board of trustees of its responsibility to the United Methodist Church, if 9
such an intent of the founders or the later congregations and boards of trustees is indicated 10
by: 11
(1) The conveyance of the assets to the trustees of the local church or any 12
of its predecessors; 13
(2) The use of the name, customs, and polity of the United Meth odist 14
Church in such a way as to be known to the community as part of this denomination; or 15
(3) The acceptance of the pastorate of ministers appointed by a bishop of 16
the United Methodist Church or employed by the superintendent of the district in which 17
the local church is located.] 18
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 5 –328 of Article – 19
Corporations and Associations of the Annotated Code of Maryland be renumbered to be 20
Section(s) 5–327. 21
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2026. 23
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.