WES MOORE, Governor Ch. 167
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Chapter 167
(Senate Bill 269)
AN ACT concerning
Cryptocurrency Currency – Campaign Finance Prohibitions – Disclosures by
Financial Institutions
FOR the purpose of prohibiting a campaign finance entity from depositing funds in a
cryptocurrency account; prohibiting certain persons subject to campaign finance
regulation from making or accepting monetary contributions or monetary donations
using cryptocurrency any currency other than United States currency; prohibiting a
campaign finance entity or a person acting on behalf of a campaign finance entity
from making an a monetary expenditure using cryptocurrency any currency other
than United States currency; authorizing the State Administrator of Elections to
investigate certain potential violations of this Act and issue a subpoena in
furtherance of an investigation; altering the definition of financial institution for
purposes of certain provisions of law authorizing the Comptroller to request certain
information and assistance to include a virtual currency money transmitter; and
generally relating to cryptocurrency currency.
BY repealing and reenacting, without amendments,
Article – Election Law
Section 1–101(a)
Annotated Code of Maryland
(2022 Replacement Volume and 2022 Supplement)
BY adding to
Article – Election Law
Section 1–101(p–1), 13–238, 13–250, 13–604.1(b)(11), and (12), and (13), and
13–604.3
Annotated Code of Maryland
(2022 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Election Law
Section 13–220(a) and (d), 13–234, and 13–604.1(b)(9) and (10)
Annotated Code of Maryland
(2022 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, without amendments,
Article – Tax – General
Section 13–804(a)(1) and (b)
Annotated Code of Maryland
(2022 Replacement Volume)
Ch. 167 2023 LAWS OF MARYLAND
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BY repealing and reenacting, with amendments,
Article – Tax – General
Section 13–804(a)(2) and (4)
Annotated Code of Maryland
(2022 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Election Law
1–101.
(a) In this article the following words have the meanings indicated unless a
different meaning is clearly intended from the context.
(P–1) “CRYPTOCURRENCY ” MEANS DIGITAL OR VIR TUAL CURRENCY THAT
RELIES ON CRYPTOGRAP HY TO EFFECT TRANSFE RS AND A DECENTRALIZ ED
NETWORK TO RECORD TR ANSACTIONS.
13–220.
(a) (1) Each campaign finance entity shall designate one or more campaign
accounts.
(2) Each designated campaign account shall:
(i) be in a financial institution; and
(ii) be registered in a manner that identifies it as the account of a
campaign finance entity.
(3) A campaign finance entity shall deposit all funds received in a
designated campaign account.
(4) A CAMPAIGN FINANCE ENT ITY MAY NOT DEPOSIT ANY FUNDS
RECEIVED IN A CRYPTO CURRENCY ACCOUNT .
(d) (1) Subject to paragraph (3) of this subsection, a campaign finance entity
may make a disbursement only by:
(i) check; or
(ii) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , an
electronic method that the State Board authorizes by regulation.
WES MOORE, Governor Ch. 167
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(2) An electronic method of making a disbursement that the State Board
authorizes under this subsection shall ensure that:
(i) the identity of the person making the disbursement may be
verified;
(ii) the transaction is secure; and
(iii) there is an adequate record of the transaction.
(3) A campaign finance entity may make a disbursement to compensate a
responsible officer of the campaign finance entity only by check.
(4) THE STATE BOARD MAY NOT AUTHORI ZE A CAMPAIGN FINANC E
ENTITY TO MAKE A DIS BURSEMENT USING CRYP TOCURRENCY .
13–234.
(a) A contribution of money may be made only by:
(1) check;
(2) credit card;
(3) cash, if the contribution does not exceed $100 in an election cycle; or
(4) SUBJECT TO SUBSECTIO N (C) OF THIS SECTION , an electronic
method that the State Board authorizes by regulation.
(b) An electronic method of making a contribution that the State Board
authorizes under this section shall ensure that:
(1) the identity of the person making the contribution may be verified;
(2) the transaction is secure; and
(3) there is an adequate record of the transaction.
(C) THE STATE BOARD MAY NOT AUTHORI ZE A CONTRIBUTION TO BE MADE
USING CRYPTOCURRENCY .
13–238.
(A) (1) A PERSON MAY NOT MAKE A MONETARY CONTRIBUTION USING
CRYPTOCURRENCY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY .
Ch. 167 2023 LAWS OF MARYLAND
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(2) A PERSON MAY NOT MAKE A MONETARY DONATION USING
CRYPTOCURRENCY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY TO A
PERSON REQUIRED TO R EGISTER UNDER § 13–306 OR § 13–307 OF THIS TITLE.
(B) (1) A CAMPAIGN FINANCE ENT ITY MAY NOT ACCEPT A MONETARY
CONTRIBU TION MADE USING CRYPTOCURRENCY ANY CURRENCY OTHER T HAN
UNITED STATES CURRENCY .
(2) A PERSON REQUIRED TO R EGISTER UNDER § 13–306 OR § 13–307
OF THIS TITLE MAY NO T ACCEPT A MONETARY DONATION MADE USING
CRYPTOCURRENCY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY.
13–250.
A CAMPAIGN FINANCE ENT ITY, OR A PERSON ACTING O N ITS BEHALF, MAY NOT
MAKE AN A MONETARY EXPENDITURE USING CRYPTOCURRENCY ANY CURRENCY
OTHER THAN UNITED STATES CURRENCY .
13–604.1.
(b) The State Board may impose a civil penalty in accordance with this section for
the following violations:
(9) failure to include a disclosure on online campaign material as required
in § 13–401.1(b) of this title; [and]
(10) soliciting a recurring contribution or donation without the affirmative
consent of the contributor or donor as required in § 13–244 of this title;
(11) DEPOSITING FUNDS IN A CRYPTOCURRENCY ACC OUNT IN
VIOLATION OF § 13–220(A)(4) OF THIS TITLE;
(12) MAKING A MONETARY CONTRIBUTION OR MONETARY DONATION
USING CRYPTOCURRENCY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY
OR ACCEPTING A MONETARY CONTRIBUTION OR MONETARY DONATION MADE USING
CRYPTOCURRENCY ANY CURRENCY OTHER T HAN UNITED STATES CURRENCY IN
VIOLATION OF § 13–238 OF THIS TITLE; AND
(13) (12) MAKING AN A MONETARY EXPENDITURE USING
CRYPTOCURRENCY ANY CURRENCY OTHER THAN UNITED STATES CURRENCY IN
VIOLATION OF § 13–250 OF THIS TITLE.
13–604.3.
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(A) THE STATE ADMINISTRATOR OR THE STATE ADMINISTRATOR ’S
DESIGNEE MAY INVESTI GATE A POTENTIAL VIO LATION OF § 13–220(A)(4), § 13–238,
OR § 13–250 OF THIS TITLE.
(B) THE STATE ADMINISTRATOR OR THE STATE ADMINISTRATOR ’S
DESIGNEE SHALL :
(1) NOTIFY A PERSON THAT IS SUBJECT TO AN INV ESTIGATION UNDER
THIS SECTION OF THE CIRCUMSTANCES THAT G AVE RISE TO THE INVE STIGATION;
AND
(2) PROVIDE THE PERSON A MPLE OPPORTUNITY TO BE HEARD AT A
PUBLIC MEETING OF TH E STATE BOARD.
(C) (1) IN FURTHERANCE OF AN INVESTIGATION UNDER THIS SECTION,
THE STATE ADMINISTRATOR OR THE STATE ADMINISTRATOR ’S DESIGNEE MAY
ISSUE A SUBPOENA FO R THE ATTENDANCE OF A WITNESS TO TESTIFY OR THE
PRODUCTION OF RECORD S.
(2) A SUBPOENA ISSUED UNDE R THIS SUBSECTION SH ALL BE SERVED
IN ACCORDANCE WITH T HE MARYLAND RULES.
(3) IN ORDER FOR A SUBPOE NA TO BE ISSUED UNDE R THIS
SUBSECTION, THE STATE ADMINISTRATOR SHALL M AKE A FINDING THAT T HE
SUBPOENA IS NECESSAR Y TO AND IN FURTHERA NCE OF AN INVESTIGAT ION BEING
CONDUCTED UNDER THIS SECTION.
(4) ANY FILING SUBMITTED TO A COURT WITH RESP ECT TO A
SUBPOENA UNDER THIS SUBSECTION SHALL BE SEALED ON FILIN G.
(5) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED UNDER
THIS SUBSECTION , ON PETITION OF THE STATE ADMINISTRATOR , A CIRCUIT COURT
OF COMPETENT JURISDI CTION MAY COMPEL COM PLIANCE WITH THE SUB POENA.
(D) AT THE CONCLUSION OF THE INVESTIGATION AN D FOLLOWING THE
HEARING UNDER SUBSEC TION (B)(2) OF THIS SECTION , THE STATE BOARD SHALL
ISSUE A PUBLIC REPOR T OF ITS FINDINGS AN D MAY:
(1) IMPOSE A CIVIL PENAL TY IN THE AMOUNT AND MANNER
SPECIFIED IN § 13–604.1 OF THIS SUBTITLE; OR
(2) REFER THE MATTER FOR FURTHER INVESTIG ATION BY THE STATE
PROSECUTOR IF THE STATE BOARD HAS REASONABLE CAUSE TO BELIEVE THA T A Ch. 167 2023 LAWS OF MARYLAND
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PERSON HAS WILLFULLY AND KNOWINGLY VIOLAT ED § 13–220(A)(4), § 13–238, OR §
13–250 OF THIS TITLE.
Article – Tax – General
13–804.
(a) (1) In this section the following words have the meanings indicated.
(2) (i) “Account” means:
1. any funds from a demand deposit account, checking
account, negotiable order of withdrawal account, savings account, time deposit account,
money market mutual fund account, or certificate of deposit account;
2. any funds paid towards the purchase of shares or other
interest in a financial institution, as defined in paragraph (4)(ii) and (iii) of this subsection;
and
3. any funds or property held by a financial institution, as
defined in paragraph (4)(iv) OR (V) of this subsection.
(ii) “Account” does not include:
1. an account or portion of an account to which an obligor
does not have access due to the pledge of the funds as security for a loan or other obligation;
2. funds or property deposited to an account after the time
that the financial institution initially attaches the account;
3. an account or portion of an account to which the financial
institution has a present right to exercise a right of setoff;
4. an account or portion of an account that has an account
holder of interest named as an owner on the account; or
5. an account or portion of an account to which the obligor
does not have an unconditional right of access.
(4) “Financial institution” means:
(i) a depository institution, as defined in the Federal Deposit
Insurance Act under 12 U.S.C. § 1813(c);
(ii) a federal credit union or State credit union, as defined in the
Federal Credit Union Act under 12 U.S.C. § 1752; WES MOORE, Governor Ch. 167
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(iii) a State credit union regulated under Title 6 of the Financial
Institutions Article; [or]
(iv) A VIRTUAL CURRENCY M ONEY TRANSMITTER THA T IS
REGULATED UNDER TITLE 12 OF THE FINANCIAL INSTITUTIONS ARTICLE; OR
(V) a benefit association, insurance company, safe deposit company,
money market mutual fund, or similar entity doing business in the State that holds
property or maintains accounts reflecting property belonging to others.
(b) The Comptroller may request from a financial institution information and
assistance to enable the Comptroller to enforce the tax laws of the State.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2023.
Approved by the Governor, April 24, 2023.