Committee advances bill pausing enforcement against property managers pending appeal in Smith v. Bozzetto

The Senate Finance Committee advanced SB 589 on March 13, a bill that delays enforcement of certain collection‑agency licensing requirements against property managers pending the resolution of a pending appeal in Smith v. Bozzetto.

Sponsor commentary (S3) reviewed the background: a circuit court issued a detailed opinion finding that property managers are not debt collectors under the Maryland Collection Agency Licensing Act (MCALA), and the attorney general's office has appealed. The sponsor said the bill is a compromise that stops short of legislating whether property managers are debt collectors; instead it delays enforcement against property managers until the appellate process concludes, which the sponsor characterized as a legislative equivalent of a judicial stay intended to bring stability to the industry.

Committee members asked whether courts could have issued a stay and whether the legislature had precedent for this approach; the presenter (S12) and sponsor said the legislation mirrors the circuit court's approach and is intended to avoid regulatory disruption while litigation proceeds. A committee member (S10) expressed support for the bill, citing heavy regulation of property managers and a desire to avoid extending licensing burdens to them. The committee voted to report SB 589 favorably with amendments; roll call in the transcript recorded the vote as unanimous.

Why it matters: The bill intervenes in an active area of litigation and temporarily limits agency enforcement to prevent immediate regulatory changes that parties say have created confusion for landlords, tenants and property managers. The sponsor emphasized that the measure respects the court's on‑point decision while the appeal proceeds.

What happens next: SB 589 will be reported favorably from the committee and proceed to further Senate consideration.