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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0871*
SENATE BILL 871
D3 6lr3488
HB 1099/25 – JUD
By: Senator Smith
Introduced and read first time: February 6, 2026
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Civil Actions – Punitive Damage Awards – Surcharge 2
FOR the purpose of providing that punitive damages may be awarded in a civil action only 3
if the plaintiff proves by clear and convincing evidence that the defendant acted with 4
gross negligence; requiring the State Court Administrator to assess a certain 5
surcharge on a defendant against whom a judgment for punitive damages is entered; 6
prohibiting a jury from being informed of the surcharge on punitive damages that a 7
defendant is required to pay; requiring the surcharge to be assessed at a certain time; 8
requiring the Administrator to deposit money collected from the surcharge into the 9
Blueprint for Maryland’s Future Fund; and generally relating to punitive damage 10
awards. 11
BY adding to 12
Article – Courts and Judicial Proceedings 13
Section 11–113 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – Education 18
Section 5–206(a) and (b) 19
Annotated Code of Maryland 20
(2025 Replacement Volume and 2025 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Education 23
Section 5–206(f) 24
Annotated Code of Maryland 25
(2025 Replacement Volume and 2025 Supplement) 26
SECTION 1. BE IT ENACTED BY T HE GENERAL ASSEMBLY OF MARYLAND, 27
2 SENATE BILL 871
That the Laws of Maryland read as follows: 1
Article – Courts and Judicial Proceedings 2
11–113. 3
(A) IN THIS SECTION , “GROSS NEGLIGENCE” MEANS DISREGARD FOR THE 4
RIGHTS OR SAFETY OF OTHERS, INCLUDING THE PUBLIC AT LARGE, THAT: 5
(1) THE ACTOR KNOWS OR SHOULD KNOW IS LIKELY TO CAUSE HARM; 6
AND 7
(2) IS CHARACTERIZED BY: 8
(I) A FAILURE TO EXERCISE EVEN SLIGHT CARE; 9
(II) WILLFUL, WANTON, OR OUTRAGEOUS MISCONDUCT; 10
(III) A PATTERN OF REPEATED MISCONDUCT; 11
(IV) MALICIOUS, OPPRESSIVE, OR FRAUDULENT INTENT; 12
(V) ACTS OR OMISSIONS THAT CREATE A HIGH DEGREE OF RISK 13
OR HARM TO OTHERS; OR 14
(VI) CONDUCT THAT DEMONSTRATES INDIFFERENCE TO LEGAL 15
OBLIGATIONS OR THE CONSEQUENCES OF MISCONDUCT. 16
(B) PUNITIVE DAMAGES MA Y BE AWARDED IN A CI VIL ACTION ALLEGING 17
NEGLIGENCE ONLY IF T HE PLAINTIFF PROVES BY CLEAR AND CONVINC ING 18
EVIDENCE THAT THE DEFENDANT ACTED WITH GROSS NEGLIGENCE. 19
(C) THE STATE COURT ADMINISTRATOR SHALL ASSESS A SURCHARGE ON 20
PUNITIVE DAMAGES IN AN AMOUNT E QUAL TO 50% OF AN AWARD OF PUNIT IVE 21
DAMAGES, WHICH SHALL BE: 22
(1) PAID BY THE DEFENDANT AGAINST WHOM THE JUD GMENT FOR 23
PUNITIVE DAMAGES IS ENTERED; AND 24
(2) DEPOSITED INTO THE BLUEPRINT FOR MARYLAND’S FUTURE 25
FUND UNDER § 5–206 OF THE EDUCATION ARTICLE. 26
(D) (1) THE SURCHARGE ON PUNITIVE DAMAGES UNDER SUBSECTION (C) 27
OF THIS SECTION: 28
SENATE BILL 871 3
(I) IS AN ADDITIONAL PAYM ENT THAT A DEFENDANT SHALL 1
MAKE TO THE STATE THAT MAY NOT IN ANY WAY IMPACT THE T OTAL AMOUNT OF 2
PUNITIVE DAMAGES A DEFENDANT IS ORDERED TO PAY A PLAINTIFF; AND 3
(II) MAY NOT BE CONSTRUED TO PENALIZE A PLAINT IFF WHO 4
HAS BEEN AWARDED PUNITIVE DAMAGES. 5
(2) A JURY MAY NOT BE INFORMED OF THE SURCHARGE ON PUNITIVE 6
DAMAGES THAT A DEFENDANT IS REQUIRED TO PAY UNDER SUBSECTION (C) OF THIS 7
SECTION. 8
(3) THE TOTAL AMOUNT OF T HE SURCHARGE ON A PU NITIVE 9
DAMAGES AWARD THAT A DEFENDANT IS REQUIRED TO PAY SHALL BE ASSESSED AT 10
THE CONCLUSION OF ALL PROCEEDINGS RELATING TO THE CIVIL ACTION. 11
Article – Education 12
5–206. 13
(a) In this section, “Fund” means the Blueprint for Maryland’s Future Fund. 14
(b) There is the Blueprint for Maryland’s Future Fund. 15
(f) The Fund consists of: 16
(1) Revenue distributed to the Fund under § 11–113 OF THE COURTS 17
ARTICLE, Title 9, Subtitles 1D and 1E of the State Government Ar ticle, and §§ 2–4A–02, 18
2–605.1, and 2–1303 of the Tax – General Article; 19
(2) Money appropriated in the State budget for the Fund; 20
(3) Interest earned by the Academic Excellence Fund established under § 21
6–1105 of this article; and 22
(4) Any other money from any other source accepted for the benefit of the 23
Fund. 24
SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 25
Assembly that this Act be applied and interpreted to abrogate the holding establishing the 26
punitive damages criteria in Owens–Illinois, Inc. v. Zenobia, 325 Md. 420 (1992). 27
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall be construed to 28
apply only prospectively and may not be applied or interpreted to have any effect on or 29
application to any action for punitive damages filed before the effective date of this Act. 30
4 SENATE BILL 871
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2026. 2