EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 1, 2023
CHAPTER ______
AN ACT concerning 1
Cryptocurrency Currency – Campaign Finance Prohibitions – Disclosures by 2
Financial 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 monetary contributions or monetary donations 6
using cryptocurrency any currency other than United States currency; prohibiting a 7
campaign finance entity or a person acting on behalf of a campaign finance entity 8
from making an a monetary expenditure using cryptocurrency any currency other 9
than United States currency; authorizing the State Administrator of Elections to 10
investigate certain potential violations of this Act and issue a subpoena in 11
furtherance of an investigation; altering the definition of financial institution for 12
purposes of certain provisions of law authorizing the Comptroller to request certain 13
information and assistance to include a virtual currency money transmitter; and 14
generally relating to cryptocurrency currency. 15
BY repealing and reenacting, without amendments, 16
Article – Election Law 17
Section 1–101(a) 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2022 Supplement) 20
BY adding to 21
Article – Election Law 22 2 SENATE BILL 269
Section 1–101(p–1), 13–238, 13–250, 13–604.1(b)(11), and (12), and (13), and 1
13–604.3 2
Annotated Code of Maryland 3
(2022 Replacement Volume and 2022 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Election Law 6
Section 13–220(a) and (d), 13–234, and 13–604.1(b)(9) and (10) 7
Annotated Code of Maryland 8
(2022 Replacement Volume and 2022 Supplement) 9
BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 13–804(a)(1) and (b) 12
Annotated Code of Maryland 13
(2022 Replacement Volume) 14
BY repealing and reenacting, with amendments, 15
Article – Tax – General 16
Section 13–804(a)(2) and (4) 17
Annotated Code of Maryland 18
(2022 Replacement Volume) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Election Law 22
1–101. 23
(a) In this article the following words have the meanings indicated unless a 24
different meaning is clearly intended from the context. 25
(P–1) “CRYPTOCURRENCY ” MEANS DIGITAL OR VIR TUAL CURRENCY THAT 26
RELIES ON CRYPTOGRAP HY TO EFFECT TRANSFE RS AND A DECENTRALIZ ED 27
NETWORK TO RECORD TR ANSACTIONS. 28
13–220. 29
(a) (1) Each campaign finance entity shall designate one or more campaign 30
accounts. 31
(2) Each designated campaign account shall: 32
(i) be in a financial institution; and 33
SENATE BILL 269 3
(ii) be registered in a manner that identifies it as the account of a 1
campaign finance entity. 2
(3) A campaign finance entity shall deposit all funds received in a 3
designated campaign account. 4
(4) A CAMPAIGN FINANCE ENT ITY MAY NOT DEPOSIT ANY FUNDS 5
RECEIVED IN A CRYPTO CURRENCY ACCOUNT . 6
(d) (1) Subject to paragraph (3) of this subsection, a campaign finance entity 7
may make a disbursement only by: 8
(i) check; or 9
(ii) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , an 10
electronic method that the State Board authorizes by regulation. 11
(2) An electronic method of making a disbursement that the State Board 12
authorizes under this subsection shall ensure that: 13
(i) the identity of the person making the disbursement may be 14
verified; 15
(ii) the transaction is secure; and 16
(iii) there is an adequate record of the transaction. 17
(3) A campaign finance entity may make a disbursement to compensate a 18
responsible officer of the campaign finance entity only by check. 19
(4) THE STATE BOARD MAY NOT AUTHORI ZE A CAMPAIGN FINANC E 20
ENTITY TO MAKE A DISBURSEMENT USING CRYPTOCURRENCY . 21
13–234. 22
(a) A contribution of money may be made only by: 23
(1) check; 24
(2) credit card; 25
(3) cash, if the contribution does not exceed $100 in an election cycle; or 26
(4) SUBJECT TO SUBSECTIO N (C) OF THIS SECTION , an electronic 27
method that the State Board authorizes by regulation. 28
4 SENATE BILL 269
(b) An electronic method of making a contribution that the State Board 1
authorizes under this section shall ensure that: 2
(1) the identity of the person making the contribution may be verified; 3
(2) the transaction is secure; and 4
(3) there is an adequate record of the transaction. 5
(C) THE STATE BOARD MAY NOT AUTHORI ZE A CONTRIBUTION TO BE MADE 6
USING CRYPTOCURRENCY . 7
13–238. 8
(A) (1) A PERSON MAY NOT MAKE A MONETARY CONTRIBUTION USING 9
CRYPTOCURRENCY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY . 10
(2) A PERSON MAY NOT MAKE A MONETARY DONATION USING 11
CRYPTOCURRENCY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY TO A 12
PERSON REQUIRED TO REGISTER UNDER § 13–306 OR § 13–307 OF THIS TITLE. 13
(B) (1) A CAMPAIGN FINANCE ENT ITY MAY NOT ACCEPT A MONETARY 14
CONTRIBUTION MADE US ING CRYPTOCURRENCY ANY CURRENCY OTHER T HAN 15
UNITED STATES CURRENCY . 16
(2) A PERSON REQUIRED TO R EGISTER UNDER § 13–306 OR § 13–307 17
OF THIS TITLE MAY NO T ACCEPT A MONETARY DONATION MADE USING 18
CRYPTOCURRENCY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY . 19
13–250. 20
A CAMPAIGN FINANCE ENT ITY, OR A PERSON ACTING O N ITS BEHALF, MAY NOT 21
MAKE AN A MONETARY EXPENDITURE USING CRYPTOCURRENCY ANY CURRENCY 22
OTHER THAN UNITED STATES CURRENCY . 23
13–604.1. 24
(b) The State Board may impose a civil penalty in accordance with this section for 25
the following violations: 26
(9) failure to include a disclosure on online campaign material as required 27
in § 13–401.1(b) of this title; [and] 28
(10) soliciting a recurring contribution or donation without the affirmative 29
consent of the contributor or donor as required in § 13–244 of this title; 30 SENATE BILL 269 5
(11) DEPOSITING FUNDS IN A CRYPTOCURRENCY ACC OUNT IN 1
VIOLATION OF § 13–220(A)(4) OF THIS TITLE; 2
(12) MAKING A MONETARY CONTRIBUTION OR MONETARY DONATION 3
USING CRYPTOCURRENCY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY 4
OR ACCEPTING A MONETARY CONTRIBUTION OR MONETARY DONATION MADE USING 5
CRYPTOCURREN CY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY IN 6
VIOLATION OF § 13–238 OF THIS TITLE; AND 7
(13) (12) MAKING AN A MONETARY EXPENDITURE USING 8
CRYPTOCURRENCY ANY CURRENCY OTHER THAN UNITED STATES CURRENCY IN 9
VIOLATION OF § 13–250 OF THIS TITLE. 10
13–604.3. 11
(A) THE STATE ADMINISTRATOR OR THE STATE ADMINISTRATOR ’S 12
DESIGNEE MAY INVESTI GATE A POTENTIAL VIO LATION OF § 13–220(A)(4), § 13–238, 13
OR § 13–250 OF THIS TITLE. 14
(B) THE STATE ADMINISTRATOR OR THE STATE ADMINISTRATOR ’S 15
DESIGNEE SHALL : 16
(1) NOTIFY A PERSON THAT IS SUBJECT TO AN INV ESTIGATION UNDER 17
THIS SECTION OF THE CIRCUMSTANCES THAT G AVE RISE TO THE INVE STIGATION; 18
AND 19
(2) PROVIDE THE PERSON A MPLE OPPORTUNITY TO BE HEARD AT A 20
PUBLIC MEETING OF TH E STATE BOARD. 21
(C) (1) IN FURTHERANCE OF AN INVESTIGATION UND ER THIS SECTION , 22
THE STATE ADMINISTRATOR OR THE STATE ADMINISTRATOR ’S DESIGNEE MAY 23
ISSUE A SUBPOENA FOR THE ATTENDANCE OF A WITNESS TO TESTIFY O R THE 24
PRODUCTION OF RECORD S. 25
(2) A SUBPOENA ISSUED UNDE R THIS SUBSECTION SH ALL BE SERVED 26
IN ACCORDANCE WITH T HE MARYLAND RULES. 27
(3) IN ORDER FOR A SUBPOE NA TO BE ISSUED UNDE R THIS 28
SUBSECTION, THE STATE ADMINISTRATOR SHALL M AKE A FINDING THAT T HE 29
SUBPOENA IS NECESSAR Y TO AND IN FURTHERA NCE OF AN INVESTIGAT ION BEING 30
CONDUCTED UNDER THIS SECTION. 31
6 SENATE BILL 269
(4) ANY FILING SUBMITTED TO A COURT WITH RESP ECT TO A 1
SUBPOENA UNDER THIS SUBSECTION SHALL BE SEALED ON FILING . 2
(5) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER 3
THIS SUBSECTION , ON PETITION OF THE STATE ADMINISTRATOR , A CIRCUIT COURT 4
OF COMPETENT JURISDI CTION MAY COMPEL COM PLIANCE WITH THE SUB POENA. 5
(D) AT THE CONCLUSION OF THE INVESTIGATION AN D FOLLOWING THE 6
HEARING UNDER SUBSEC TION (B)(2) OF THIS SECTION , THE STATE BOARD SHALL 7
ISSUE A PUBLIC REPOR T OF ITS FINDINGS AN D MAY: 8
(1) IMPOSE A CIVIL PENAL TY IN THE AMOUNT AND MANNER 9
SPECIFIED IN § 13–604.1 OF THIS SUBTITLE; OR 10
(2) REFER THE MATTER FOR FURTHER INVESTIGATIO N BY THE STATE 11
PROSECUTOR IF THE STATE BOARD HAS REASONABLE CAUSE TO BELIEVE THA T A 12
PERSON HAS WILLFULLY AND KNOWIN GLY VIOLATED § 13–220(A)(4), § 13–238, OR § 13
13–250 OF THIS TITLE. 14
Article – Tax – General 15
13–804. 16
(a) (1) In this section the following words have the meanings indicated. 17
(2) (i) “Account” means: 18
1. any funds from a demand deposit account, checking 19
account, negotiable order of withdrawal account, savings account, time deposit account, 20
money market mutual fund account, or certificate of deposit account; 21
2. any funds paid towards the purchase of shares or other 22
interest in a financial institution, as defined in paragraph (4)(ii) and (iii) of this subsection; 23
and 24
3. any funds or property held by a financial institution, as 25
defined in paragraph (4)(iv) OR (V) of this subsection. 26
(ii) “Account” does not include: 27
1. an account or portion of an account to which an obligor 28
does not have access due to the pledge of the funds as security for a loan or other obligation; 29
2. funds or property deposited to an account after the time 30
that the financial institution initially attaches the account; 31
SENATE BILL 269 7
3. an account or portion of an account to which the financial 1
institution has a present right to exercise a right of setoff; 2
4. an account or portion of an account that has an account 3
holder of interest named as an owner on the account; or 4
5. an account or portion of an account to which the obligor 5
does not have an unconditional right of access. 6
(4) “Financial institution” means: 7
(i) a depository institution, as defined in the Federal Deposit 8
Insurance Act under 12 U.S.C. § 1813(c); 9
(ii) a federal credit union or State credit union, as defined in the 10
Federal Credit Union Act under 12 U.S.C. § 1752; 11
(iii) a State credit union regulated under Title 6 of the Financial 12
Institutions Article; [or] 13
(iv) A VIRTUAL CURRENCY MONEY TRANS MITTER THAT IS 14
REGULATED UNDER TITLE 12 OF THE FINANCIAL INSTITUTIONS ARTICLE; OR 15
(V) a benefit association, insurance company, safe deposit company, 16
money market mutual fund, or similar entity doing business in the State that holds 17
property or maintains accounts reflecting property belonging to others. 18
(b) The Comptroller may request from a financial institution information and 19
assistance to enable the Comptroller to enforce the tax laws of the State. 20
SECTION 2. AND BE IT FURTHE R ENACTED, That this Act shall take effect July 21
1, 2023. 22
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.