Land Use - Zoning - Limitations (Starter and Silver Homes Act of 2026)
HB0239 amends Maryland’s charitable organization registration law to give the Secretary of State more flexibility in handling late fees and inactive registrations. Under the bill, the Secretary may suspend or waive late fees assessed to charitable organizations under regulations or through a settlement agreement, rather than requiring strict collection in every case. The bill also clarifies that late fees are not to be treated as delinquent accounts or debts for referral to the Central Collection Unit.
The bill further adds a new process for canceling a charitable organization’s registration if it fails for three years to file required annual reports, a statement of intent and final report when ending solicitation, or other required updates. It also creates a path for reinstatement after cancellation if the organization cures outstanding filing and fee obligations, is in good standing with the State Department of Assessments and Taxation when applicable, and maintains federal tax-exempt status when applicable. The effective date is July 1, 2025.
The bill changes Title 6 of the Business Regulation Article by amending § 6-407 and adding new § 6-418, while leaving § 6-417 intact. It gives the Secretary of State express authority to suspend or waive late fees through regulation or settlement, prevents those fees from being routed to the Central Collection Unit, and authorizes cancellation and reinstatement of charitable registrations under specified conditions. Charitable organizations, especially those that miss annual filing deadlines or cease soliciting, are the primary entities affected, along with the Secretary of State’s charitable registration and enforcement functions.
The available record suggests the bill was treated as an administrative cleanup and enforcement measure rather than a controversial policy change. Its provisions favor flexibility for the Secretary of State in dealing with late fees and dormant charities, while also strengthening the office’s ability to clear out long-unfiled registrations. No committee transcript or vote record is provided here, so there is no evidence of recorded opposition or support beyond the bill’s enactment.
The main policy tension in the bill is between easing compliance burdens and preserving enforcement leverage. Charitable organizations may benefit from the Secretary’s ability to suspend or waive late fees and avoid Central Collection Unit referral, while regulators and enforcement officials gain a clearer mechanism to cancel registrations that remain inactive or noncompliant for years. Any concern would likely center on whether the waiver authority is broad enough to reduce penalties too much, or whether the cancellation process is strict enough to keep the charitable registry current and reliable.