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*sb0589*
SENATE BILL 589
C2, N1 6lr3492
CF HB 433
By: Senator Kramer
Introduced and read first time: February 5, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 1, 2026
CHAPTER ______
AN ACT concerning 1
Business Regulation – Collection Agencies – Licensure Exemption for Property 2
Managers 3
Business Regulation – Collection Agencies and Property Managers 4
FOR the purpose of exempting property managers engaged in certain activities from the 5
requirement to hold a license to do business as a collection agency from the State 6
Collection Agency Licensing Board; and generally relating to prope rty managers, 7
collection agencies, and the State Collection Agency Licensing Board prohibiting 8
enforcement of certain provisions of law regulating collection agencies against 9
property managers pending the resolution of a certain judicial case; and generally 10
relating to property managers and debt collection. 11
BY repealing and reenacting, with amendments, 12
Article – Business Regulation 13
Section 7–102 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – Business Regulation 18
Section 7–301(a) 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21
2 SENATE BILL 589
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
(a) In this section, “property manager” means a person responsible for the 3
management and maintenance of real property, including: 4
(1) finding tenants; 5
(2) collecting rent, utilities, and fees; 6
(3) paying expenses and applicable taxes; 7
(4) maintaining utilities and systems; and 8
(5) taking any necessary actions to manage and operate real property. 9
(b) Title 7 of the Business Regulation Article may not be enforced against a 10
property manager until the resolution of case number C –15–CV–25–000340, Christine 11
Smith v. Bozzuto Management Company, including any appellate action. 12
Article – Business Regulation 13
7–102. 14
(a) (1) In this section the following words have the meanings indicated. 15
(2) “Common ownership” means direct or indirect ownership of more than 16
50% of a person. 17
(3) “Principal business” means a business activity of a person that 18
comprises more than 50% of the total business activities of the person. 19
(4) “PROPERTY MANAGER” MEANS A PERSON RESPONSIBLE FOR THE 20
MANAGEMENT AND MAINTENANCE OF REAL PROPERTY, INCLUDING: 21
(I) FINDING TENANTS; 22
(II) COLLECTING RENT, UTILITIES, AND FEES; 23
(III) PAYING EXPENSES AND APPLICABLE TAXES; 24
(IV) MAINTAINING UTILITIES AND SYSTEMS; AND 25
(V) TAKING ANY NECESSARY ACTIONS TO MANAGE AND 26
OPERATE REAL PROPERTY. 27
SENATE BILL 589 3
(b) This title does not apply to: 1
(1) a bank; 2
(2) a federal or State credit union; 3
(3) a mortgage lender; 4
(4) a person acting under an order of a court of competent jurisdiction; 5
(5) a licensed real estate broker, or an individual acting on behalf of the 6
real estate broker, in the collection of rent or allied charges for property; 7
(6) a savings and loan association; 8
(7) a title company as to its escrow business; 9
(8) a trust company; 10
(9) a lawyer who is collecting a debt for a client, unless the lawyer has an 11
employee who: 12
(i) is not a lawyer; and 13
(ii) is engaged primarily to solicit debts for collection or primarily 14
makes contact with a debtor to collect or adjust a debt through a procedure identified with 15
the operation of a collection agency; [or] 16
(10) a person who is collecting a debt for another person if: 17
(i) both persons are related by common ownership; 18
(ii) the person who is collecting a debt does so only for those persons 19
to whom it is related by common ownership; 20
(iii) the principal business of the person who is collecting a debt is not 21
the collection of debts; and 22
(iv) before collecting a debt, the person files with the Board: 23
1. the correct name of the person; 24
2. an address and telephone number of a contact person; and 25
3. the name of the person’s resident agent; OR 26
4 SENATE BILL 589
(11) A PROPERTY MANAGER C OLLECTING PAYMENT FO R RENT , 1
UTILITIES, OR FEES FROM A RESID ENTIAL TENANT ON BEH ALF OF A PROPERTY 2
OWNER IF: 3
(I) PAYMENT IS COLLECTED ONLY DURING THE TERM OF THE 4
LEASE OR A HOLDOVER PERIOD; AND 5
(II) THE COLLECTION OF DE BTS, INCLUDING FOR RENT , 6
UTILITIES, AND FEES IS NOT THE PRIMARY PURPOSE OF THE PROPERTY MANAGER 7
WITH RESPECT TO THE PROPERTY. 8
7–301. 9
(a) Except as otherwise provided in this title, a person must have a license 10
whenever the person does business as a collection agency in the State. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2026. 13
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.