EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0269*
SENATE BILL 269
G1, Q7 3lr1684
CF HB 192
By: Senators Rosapepe, Feldman, Lewis Young, Brooks, Folden, and James
Introduced and read first time: January 26, 2023
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Cryptocurrency – Campaign Finance Prohibitions – Disclosures by Financial 2
Institutions 3
FOR the purpose of prohibiting a campaign finance entity from depositing funds in a 4
cryptocurrency account; prohibiting certain persons subject to campaign finance 5
regulation from making or accepting contributions or donations using 6
cryptocurrency; prohibiting a campaign finance entity or a person acting on behalf 7
of a campaign finance entity from making an expenditure using cryptocurrency; 8
authorizing the State Administrator of Elections to investigate certain potential 9
violations of this Act and issue a subpoena in furtherance of an investigation; 10
altering the definition of financial institution for purposes of certain provisions of 11
law authorizing the Comptroller to request certain information and assistance to 12
include a virtual currency money transmitter; and generally relating to 13
cryptocurrency. 14
BY repealing and reenacting, without amendments, 15
Article – Election Law 16
Section 1–101(a) 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2022 Supplement) 19
BY adding to 20
Article – Election Law 21
Section 1–101(p–1), 13–238, 13–250, 13–604.1(b)(11), (12), and (13), and 13–604.3 22
Annotated Code of Maryland 23
(2022 Replacement Volume and 2022 Supplement) 24
BY repealing and reenacting, with amendments, 25
Article – Election Law 26
Section 13–220(a) and (d), 13–234, and 13–604.1(b)(9) and (10) 27
Annotated Code of Maryland 28 2 SENATE BILL 269
(2022 Replacement Volume and 2022 Supplement) 1
BY repealing and reenacting, without amendments, 2
Article – Tax – General 3
Section 13–804(a)(1) and (b) 4
Annotated Code of Maryland 5
(2022 Replacement Volume) 6
BY repealing and reenacting, with amendments, 7
Article – Tax – General 8
Section 13–804(a)(2) and (4) 9
Annotated Code of Maryland 10
(2022 Replacement Volume) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Election Law 14
1–101. 15
(a) In this article the following words have the meanings indicated unless a 16
different meaning is clearly intended from the context. 17
(P–1) “CRYPTOCURRENCY ” MEANS DIGITAL OR VIR TUAL CURRENCY THAT 18
RELIES ON CRYPTOGRAP HY TO EFFECT TRANSFE RS AND A DECENTRALIZ ED 19
NETWORK TO RECORD TRANSACTIO NS. 20
13–220. 21
(a) (1) Each campaign finance entity shall designate one or more campaign 22
accounts. 23
(2) Each designated campaign account shall: 24
(i) be in a financial institution; and 25
(ii) be registered in a manner that identifies it as the account of a 26
campaign finance entity. 27
(3) A campaign finance entity shall deposit all funds received in a 28
designated campaign account. 29
(4) A CAMPAIGN FINANCE ENT ITY MAY NOT DEPOSIT ANY FUNDS 30
RECEIVED IN A CRYPTO CURRENCY ACCOUNT . 31
SENATE BILL 269 3
(d) (1) Subject to paragraph (3) of this subsection, a campaign finance entity 1
may make a disbursement only by: 2
(i) check; or 3
(ii) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , an 4
electronic method that the State Board authorizes by regulation. 5
(2) An electronic method of making a disbursement that the State Board 6
authorizes under this subsection shall ensure that: 7
(i) the identity of the person making the disbursement may be 8
verified; 9
(ii) the transaction is secure; and 10
(iii) there is an adequate record of the transaction. 11
(3) A campaign finance entity may make a disbursement to compensate a 12
responsible officer of the campaign finance entity only by check. 13
(4) THE STATE BOARD MAY NOT AUTHORI ZE A CAMPAIGN FINANC E 14
ENTITY TO MAKE A DIS BURSEMENT USING CRYPT OCURRENCY . 15
13–234. 16
(a) A contribution of money may be made only by: 17
(1) check; 18
(2) credit card; 19
(3) cash, if the contribution does not exceed $100 in an election cycle; or 20
(4) SUBJECT TO SUBSECTIO N (C) OF THIS SECTION , an electronic 21
method that the State Board authorizes by regulation. 22
(b) An electronic method of making a contribution that the State Board 23
authorizes under this section shall ensure that: 24
(1) the identity of the person making the contribution may be verified; 25
(2) the transaction is secure; and 26
(3) there is an adequate record of the transaction. 27
4 SENATE BILL 269
(C) THE STATE BOARD MAY NOT AUTHORI ZE A CONTRIBUTION TO BE MADE 1
USING CRYPTOCURRENCY . 2
13–238. 3
(A) (1) A PERSON MAY NOT MAKE A CONTRIBUTION USING 4
CRYPTOCURRENCY . 5
(2) A PERSON MAY NOT MAKE A DONATION USING CRY PTOCURRENCY 6
TO A PERSON REQUIRED TO REGISTER UNDER § 13–306 OR § 13–307 OF THIS TITLE. 7
(B) (1) A CAMPAIGN FINANCE ENT ITY MAY NOT ACCEPT A CONTRIBUTION 8
MADE USING CRYPTOCUR RENCY. 9
(2) A PERSON REQUIRED TO REG ISTER UNDER § 13–306 OR § 13–307 10
OF THIS TITLE MAY NO T ACCEPT A DONATION MADE USING CRYPTOCUR RENCY. 11
13–250. 12
A CAMPAIGN FINANCE ENT ITY, OR A PERSON ACTING O N ITS BEHALF, MAY NOT 13
MAKE AN EXPENDITURE USING CRYPTOCURRENCY . 14
13–604.1. 15
(b) The State Board may impose a civil penalty in accordance with this section for 16
the following violations: 17
(9) failure to include a disclosure on online campaign material as required 18
in § 13–401.1(b) of this title; [and] 19
(10) soliciting a recurring contribution or donation without the affirmative 20
consent of the contributor or donor as required in § 13–244 of this title; 21
(11) DEPOSITING FUNDS IN A CRYPTOCURRENCY ACC OUNT IN 22
VIOLATION OF § 13–220(A)(4) OF THIS TITLE; 23
(12) MAKING A CONTRIBUTIO N OR DONATION USING 24
CRYPTOCURRENCY OR AC CEPTING A CONTRIBUTI ON OR DONATION MADE USING 25
CRYPTOCURRENCY IN VI OLATION OF § 13–238 OF THIS TITLE; AND 26
(13) MAKING AN EXPENDITUR E USING CRYPTOCURREN CY IN 27
VIOLATION OF § 13–250 OF THIS TITLE. 28
13–604.3. 29 SENATE BILL 269 5
(A) THE STATE ADMINISTRATOR OR THE STATE ADMINISTRATOR ’S 1
DESIGNEE MAY INVESTI GATE A POTENTIAL VIO LATION OF § 13–220(A)(4), § 13–238, 2
OR § 13–250 OF THIS TITLE. 3
(B) THE STATE ADMINISTRATOR OR THE STATE ADMINISTRATOR ’S 4
DESIGNEE SHALL : 5
(1) NOTIFY A PERSON TH AT IS SUBJECT TO AN INVESTIGATION UNDER 6
THIS SECTION OF THE CIRCUMSTANCES THAT G AVE RISE TO THE INVESTIGATION ; 7
AND 8
(2) PROVIDE THE PERSON A MPLE OPPORTUNITY TO BE HEARD AT A 9
PUBLIC MEETING OF TH E STATE BOARD. 10
(C) (1) IN FURTHERANCE OF AN INVESTIGATION UNDER THIS SECTION , 11
THE STATE ADMINISTRATOR OR THE STATE ADMINISTRATOR ’S DESIGNEE MAY 12
ISSUE A SUBPOENA FOR THE ATTENDANCE OF A WITNESS TO TESTIFY O R THE 13
PRODUCTION OF RECORD S. 14
(2) A SUBPOENA ISSUED UNDE R THIS SUBSECTION SH ALL BE SERVED 15
IN ACCORDANCE WITH THE MARYLAND RULES. 16
(3) IN ORDER FOR A SUBPOE NA TO BE ISSUED UNDE R THIS 17
SUBSECTION, THE STATE ADMINISTRATOR SHALL M AKE A FINDING THAT T HE 18
SUBPOENA IS NECESSAR Y TO AND IN FURTHERA NCE OF AN INVESTIGATION BEING 19
CONDUCTED UNDER THIS SECTION. 20
(4) ANY FILING SUBMITTED TO A COURT WITH RESPECT TO A 21
SUBPOENA UNDER THIS SUBSECTION SHALL BE SEALED ON FILING . 22
(5) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER 23
THIS SUBSECTION , ON PETITION OF THE STATE ADMINISTRATOR , A CIRCUIT COURT 24
OF COMPETENT J URISDICTION MAY COMP EL COMPLIANCE WITH T HE SUBPOENA . 25
(D) AT THE CONCLUSION OF THE INVESTIGATION AN D FOLLOWING THE 26
HEARING UNDER SUBSEC TION (B)(2) OF THIS SECTION , THE STATE BOARD SHALL 27
ISSUE A PUBLIC REPOR T OF ITS FINDINGS AN D MAY: 28
(1) IMPOSE A CIVIL PENALTY IN THE AMOUN T AND MANNER 29
SPECIFIED IN § 13–604.1 OF THIS SUBTITLE; OR 30
6 SENATE BILL 269
(2) REFER THE MATTER FOR FURTHER INVESTIGATIO N BY THE STATE 1
PROSECUTOR IF THE STATE BOARD HAS REASONABLE CAUSE TO BELIEVE THA T A 2
PERSON HAS WILLFULLY AND KNOWINGLY VIOLAT ED § 13–220(A)(4), 3
§ 13–238, OR § 13–250 OF THIS TITLE. 4
Article – Tax – General 5
13–804. 6
(a) (1) In this section the following words have the meanings indicated. 7
(2) (i) “Account” means: 8
1. any funds from a demand deposit account, checking 9
account, negotiable order of withdrawal account, savings account, time deposit account, 10
money market mutual fund account, or certificate of deposit account; 11
2. any funds paid towards the purchase of shares or other 12
interest in a financial institution, as defined in paragraph (4)(ii) and (iii) of this subsection; 13
and 14
3. any funds or property held by a financial institution, as 15
defined in paragraph (4)(iv) OR (V) of this subsection. 16
(ii) “Account” does not include: 17
1. an account or portion of an account to which an obligor 18
does not have access due to the pledge of the funds as security for a loan or other obligation; 19
2. funds or property deposited to an account after the time 20
that the financial institution initially attaches the account; 21
3. an account or portion of an account to which the financial 22
institution has a present right to exercise a right of setoff; 23
4. an account or portion of an account that has an account 24
holder of interest named as an owner on the account; or 25
5. an account or portion of an account to which the obligor 26
does not have an unconditional right of access. 27
(4) “Financial institution” means: 28
(i) a depository institution, as defined in the Federal Deposit 29
Insurance Act under 12 U.S.C. § 1813(c); 30
SENATE BILL 269 7
(ii) a federal credit union or State credit union, as defined in the 1
Federal Credit Union Act under 12 U.S.C. § 1752; 2
(iii) a State credit union regulated under Title 6 of the Financial 3
Institutions Article; [or] 4
(iv) A VIRTUAL CURRENCY M ONEY TRANSMITTER THAT IS 5
REGULATED UNDER TITLE 12 OF THE FINANCIAL INSTITUTIONS ARTICLE; OR 6
(V) a benefit association, insurance company, safe deposit company, 7
money market mutual fund, or similar entity doing business in the State that holds 8
property or maintains accounts reflecting property belonging to others. 9
(b) The Comptroller may request from a financial institution information and 10
assistance to enable the Comptroller to enforce the tax laws of the State. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
1, 2023. 13