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Read. Follow. Verify.Maryland Senate Bill 871 Imposes 50% Surcharge on Punitive Damages for Education Fund
Last action · February 12, 2026: Hearing 3/11 at 1:00 p.m.Sponsor: Will Smith
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What This Bill Would Do
Maryland Senate Bill 871 requires defendants who have entered against them in civil negligence actions to pay a 50% surcharge to the State for deposit into the Blueprint for Maryland’s Future Fund, taking effect October 1, 2026.
Defendants held liable for will face an additional payment equal to half of that penalty, altering total liabilities while leaving plaintiff compensation unaffected.
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Defendants in civil negligence actions
Defendants against whom punitive damages are entered must pay an additional 50% surcharge to the State.
Plaintiffs awarded punitive damages
Plaintiffs receive their full punitive damage awards without reduction, and juries are not informed of the surcharge.
State Court Administrator
The Administrator is required to assess the surcharge and deposit collections into the Blueprint for Maryland's Future Fund.
Key Facts
- Punitive damages in a civil action alleging negligence may be awarded only if the plaintiff proves by clear and convincing evidence that the defendant acted with gross negligence.
- The State Court Administrator must assess a surcharge on punitive damages equal to 50% of the punitive damages award.
- The 50% surcharge is an additional payment made by the defendant to the State that does not impact the total amount ordered to be paid to the plaintiff.
- Surcharge revenue collected is deposited directly into the Blueprint for Maryland's Future Fund.
Show all 9 facts
- Juries are prohibited from being informed of the surcharge that the defendant is required to pay.
- The total amount of the surcharge is assessed at the conclusion of all proceedings relating to the civil action.
- The Act applies and is interpreted to abrogate the holding establishing punitive damages criteria in Owens-Illinois, Inc. v. Zenobia, 325 Md. 420 (1992).
- The Act applies only prospectively to actions for punitive damages filed on or after the effective date.
- The Act takes effect on October 1, 2026.
Frequently Asked Questions
What standard of proof is required to win punitive damages under this bill?
Does the 50% surcharge reduce the money awarded to the plaintiff?
Who collects the surcharge, and where does the money go?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently filed. The next step in the legislative lifecycle is Committee.
Procedural history
2 actions- Feb 12, 2026SenateHearing 3/11 at 1:00 p.m.
- Feb 6, 2026SenateIntroducedFirst Reading Judicial Proceedings
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Abrogation of Owens-Illinois v. Zenobia
Section 2 explicitly states legislative intent to abrogate the holding establishing punitive damages criteria in Owens-Illinois, Inc. v. Zenobia.
Connected Entities
Sources
mgaleg.maryland.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy60Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
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