Corporations and Associations - Methodist Church Trust Requirement Repeal and Disaffiliation Requirements
Summary
SB 586 repeals Maryland statutory provisions that required the assets of Methodist churches to be held in trust for the United Methodist Church and subject to its control. It also removes a related rule that treated the absence of an express trust clause in older deeds as not affecting a local church’s obligations to the denomination. In place of those repealed provisions, the bill creates a new rule allowing a local church to disaffiliate from the United Methodist Conference while retaining ownership of its real property.
Under the new disaffiliation framework, a departing local church must reimburse the United Methodist Conference for financial investments the Conference made toward acquiring, maintaining, or improving the church’s real property. The bill requires the Conference to provide a full and transparent accounting of those funds so the reimbursement amount can be determined, and it bars reimbursement for amounts attributable to investments made by the local church itself. The act takes effect October 1, 2025.
Impact
The bill substantially changes Title 5 of the Corporations and Associations Article by repealing Sections 5-326 and 5-327 and replacing them with a new Section 5-326, with a conforming renumbering of the remaining section. As a result, Maryland law would no longer impose a statutory trust requirement on Methodist church property in favor of the United Methodist Church, and local Methodist churches would have clearer statutory authority to leave the denomination while keeping their real property, subject to reimbursement obligations tied to denominational investments.
Sentiment
The bill appears to have broad legislative support, passing the Senate on third reading by a 42-1 vote. The favorable committee report and strong floor vote suggest general agreement with the bill’s approach to resolving property and disaffiliation issues for Methodist congregations. No committee transcript was provided, so the available record shows support but not detailed debate.
Contention
The main point of contention is the ownership and control of church property when a local Methodist congregation disaffiliates from the United Methodist Conference. Supporters of the bill appear to favor local church autonomy and a clearer path for congregations to retain property, while the remaining statutory reimbursement requirement protects the Conference’s financial contributions. The bill also addresses fairness concerns by requiring a transparent accounting from the Conference and limiting reimbursement to denominational investments rather than amounts funded by the local church.