ANNAPOLIS, Md. -- With today being the first day of the Maryland General Assembly’s 2024 Legislative Session, we are welcoming the return of our SMAR Session Snapshot newsletters!

Over the next 90 days, SMAR’s Government Affairs Committee and the Maryland Realtors® Legislative Committee will be working diligently to protect and improve your lives as business owners and citizens of Southern Maryland. It is known as the most dangerous 90 days in Maryland for a reason, and this year there are already some anticipated challenges.

We hope you take a little bit of time to read our periodic updates and stay informed!

Anticipated Legislative Issues

The 2023 Legislative Session was a rather slow one, as anticipated. Everyone was busy getting situated with a new administration, making friends, trying to keep campaign promises, etc. However, after a year like that, the time has come to buckle up for some new holes in the road ahead.

Soon after that session ended, news broke that the State of Maryland is facing an escalating budget deficit over the next five years. Current projections show a deficit of hundreds of millions of dollars as soon as 2025, with a $2.7 BILLION dollar deficit currently expected by 2029.

Righting the ship and balancing a budget is what many are considering to be the overarching issue of this session. Many good proposals are expected to be lost if they have any cost implications. Several lawmakers are floating potential tax increases to help fix the budget issue, before it gets too out of hand. Nobody is really sure where the fix is going to come from at this time.

In addition to the budgetary issues, Governor Wes Moore's administration is expected to propose several bills that impact housing and real estate statewide. This could include anything from changes that address housing supply, to zoning changes, to landlord/tenant issues. Realtors® were one of several groups of stakeholders who were brought in to discuss these proposals with the administration, and we are looking forward to weighing in on the bills as they are released.

Several other major legislative issues we are expecting to take up a great deal of bandwidth this session include transportation, juvenile crime, and infrastructure.

Realtor® Priorities For 2024

Realtors® have a longstanding reputation for successfully achieving legislative goals to improve your lives and businesses. Nearly all of our priority legislation from last year was passed into law this past October.

We have several items that we will be working with Maryland Realtors® to pass this year that we want to keep you apprised of:

• Addressing Housing Supply - With housing legislation expected from the Administration in 2024, we will support meaningful proposals to address our housing shortage, particularly those that quantify housing needs at the local level and require accountability for producing those units.
• Buyer Broker Compensation – As Realtors®, we support greater transparency for consumers on real estate commissions and fee structures. This bill will clarify existing requirements to clearly state the amount of compensation owed to the buyer’s broker, who is responsible for paying it, and what actions entitle the broker to that compensation.
• Condo and HOA Act Reforms - Members continue to report excessive fees charged by Associations to obtain resale information, while the differing timelines and disclosure requirements between the acts cause confusion in sales transactions. We will seek legislation to conform resale disclosures and timelines across Common Ownership Community types, and to prohibit any fees which are not outlined in statute.
• Oversight of Branch Offices - Realtors® support legislation to resolve an inconsistency within the brokerage act. Currently, real estate brokers may oversee one office, but office managers do not face similar limits. Having to hire an office manager to expand to a second location can be a financial deterrent to a broker growing his or her business. This bill will allow brokers the same oversight of branch offices provided to office managers.
• Anonymous Advertising Complaints - Maryland law requires that all complaints against real estate licensees be made under oath, preventing the Maryland Real Estate Commission (MREC) from considering anonymous complaints. Several states currently investigate complaints submitted without the name of the person bringing the complaint. This bill would allow submission of anonymous complaints for advertising violations. Because advertising violations are readily apparent, we believe this change will not raise due process concerns.
• Financial Literacy – Maryland currently requires all local school districts to teach the state’s financial literacy curriculum but grants flexibility to local districts in how that curriculum is presented. At least eight districts teach a full course on financial literacy, while the rest incorporate it into other classes, like civics or mathematics. Realtors® will continue to support efforts to require increased financial literacy education requirements in public schools and revisions to enhance the state’s required curriculum.

These, of course, are only Realtor® priorities, while the industry will likely face several legislative challenges over the 90 days.

If you have issues you believe are impeding your business that need to be addressed through the legislative process, or if you have ideas for real estate-related legislation, feel free to share those ideas with us. Although this year is off and running, getting changes in motion all starts with an idea. 

If you have any questions about what is going on during the legislative session, or other government issues, feel free to reach out to me at [email protected]. 

We are looking forward to another successful year!