EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0291*
SENATE BILL 291
G1, P2 4lr0355
(PRE–FILED) CF HB 112
By: Chair, Education, Energy, and the Environment Committee (By Request –
Departmental – Secretary of State)
Requested: September 19, 2023
Introduced and read first time: January 10, 2024
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Persons Doing Public Business – Disclosure Requirements 2
FOR the purpose of requiring a person to file a registration statement with the State Board 3
of Elections within a certain time period after the award of a contract that causes 4
the person to be doing public business; requiring persons doing public business to 5
update information on beneficial ownership included in the registration statement 6
in accordance with regulations adopted by the State Board; altering the time at 7
which a person doing public business is required to file a certain initial statement of 8
political contributions with the State Board; requiring a governmental entity that 9
has awarded a contract that causes a person to be doing public business to, under 10
certain circumstances, require the person to make a certain certification to the Board 11
of Public Works; repealing requirements that certain businesses with State contracts 12
file a certain list with the Secretary of State; and generally relating to disclosures by 13
persons doing public business. 14
BY repealing and reenacting, without amendments, 15
Article – Election Law 16
Section 14–101(a), (h), and (i) and 14–104(a) 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2023 Supplement) 19
BY adding to 20
Article – Election Law 21
Section 14–101(b–1) and 14–103.1 22
Annotated Code of Maryland 23
(2022 Replacement Volume and 2023 Supplement) 24
BY repealing and reenacting, with amendments, 25
Article – Election Law 26 2 SENATE BILL 291
Section 14–104(b)(1), 14–107, and 14–110(a) 1
Annotated Code of Maryland 2
(2022 Replacement Volume and 2023 Supplement) 3
BY repealing 4
Article – State Finance and Procurement 5
Section 13–221 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2023 Supplement) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Election Law 11
14–101. 12
(a) In this title the following words have the meanings indicated. 13
(B–1) “BENEFICIAL OWNERSHIP” MEANS: 14
(1) ANY OWNERSHIP INTERE ST OF 5% OR MORE IN A BUSINES S; 15
(2) ANY OWNERSHIP INTERE ST OF 5% OR MORE IN ONE OR MORE 16
ENTITIES IN A CHAIN OF PARENT AND SUBSID IARY ENTITIES, ANY ONE OF WHICH 17
PARTICIPATES IN AT L EAST 5% OF THE CAPITAL OR PR OFITS OF A BUSINESS ; OR 18
(3) POSSESSION OF AN INT EREST THAT EXISTS UN DER A CONTRACT , 19
A RELATIONSHIP , AN UNDERSTANDING , OR ANY OTHER ARRANGEMENT AN D 20
ENTITLES A PERSON TO BENEFITS SUBSTANTIAL LY EQUIVALENT TO AN OWNERSHIP 21
INTEREST OF 5% OR MORE OF A BUSINES S. 22
(h) (1) “Doing public business” means making or having a single contract with 23
a single governmental entity involving cumulative consideration of at least $200,000. 24
(2) “Doing public business” does not include receiving a salary from a 25
governmental entity. 26
(i) “Governmental entity” means: 27
(1) the State, a county, a municipal corporation, or other political 28
subdivision of the State; and 29
(2) a unit of the State, a county, a municipal corporation, or other political 30
subdivision of the State. 31
SENATE BILL 291 3
14–103.1. 1
(A) A PERSON SHALL FILE A REGISTRATION STATEMENT WITH THE STATE 2
BOARD WITHIN 15 BUSINESS DAYS AFTER THE AWARD OF A CONTR ACT THAT CAUSES 3
THE PERSON TO BE DOI NG PUBLIC BUSINESS . 4
(B) THE REGISTRATION STAT EMENT SHALL INCLUDE : 5
(1) THE PERSON’S NAME AND ADDRESS; 6
(2) ANY RESIDENT AGENT OF THE BUSINESS LOCATED IN THE STATE; 7
(3) IF KNOWN, EACH PERSON WHO HAS BENEFICIAL OWNERSHIP OF 8
THE BUSINESS ENTITY; AND 9
(4) ANY OTHER INFORMATIO N REQUIRED BY THE STATE BOARD. 10
(C) A PERSON DOING PUBLIC BUSINESS SHALL UPDATE THE INFORMATION 11
ON BENEFICIAL OWNERS HIP INCLUDED IN THE REGISTRATION STATEMENT UNDER 12
SUBSECTION (B) OF THIS SECTION IN ACCORDANCE WITH R EGULATIONS ADOPTED 13
BY THE STATE BOARD. 14
14–104. 15
(a) A person doing public business shall file a statement with the State Board as 16
provided in this section. 17
(b) (1) [When a contract is awarded that causes a person to be doing public 18
business, an initial statement shall be filed at that time,] WITHIN 15 BUSINESS DAYS 19
AFTER FILING THE REG ISTRATION STATEMENT REQUIRED UNDER § 14–103.1 OF 20
THIS TITLE, A PERSON DOING PUBLI C BUSINESS SHALL FIL E AN INITIAL STATEME NT 21
covering the preceding 24 months. 22
14–107. 23
(a) (1) A governmental entity that has awarded a person a contract that causes 24
the person to be doing public business shall: 25
(i) require the person to certify that the person has filed the 26
statement required under § 14–104(b)(1) of this title; 27
(II) IF THE CONTRACT IS S UBJECT TO APPROVAL B Y THE BOARD 28
OF PUBLIC WORKS, REQUIRE THE PERSON T O CERTIFY TO THE BOARD OF PUBLIC 29
WORKS THAT THE PERSON HAS FILED THE STATEM ENT REQUIRED UNDER § 30
14–104(B)(1) OF THIS TITLE; and 31 4 SENATE BILL 291
[(ii)] (III) provide the State Board with the person’s name, address, 1
and any other contact information required by the State Board. 2
(2) (i) A governmental entity may comply with paragraph [(1)(ii)] 3
(1)(III) of this subsection by sending to the State Board a quarterly report on a form 4
provided by the State Board. 5
(ii) A quarterly report sent under subparagraph (i) of this paragraph 6
shall: 7
1. include the required information for any person that was 8
awarded a contract that caused the person to be doing public business with the 9
governmental entity during the preceding calendar quarter; and 10
2. be submitted to the State Board no later than 10 business 11
days after the close of each calendar quarter. 12
(b) (1) If a person files a statement under § 14–103.1 OR § 14–104 of this title 13
that does not include all the information required, the State Board shall notify the person 14
in writing of the particular deficiencies. 15
(2) Within 30 days after service of the notice under paragraph (1) of this 16
subsection, the person shall file an amended statement that includes all the information 17
required. 18
(c) (1) As provided in this subsection, the State Board may impose fees for late 19
filing of: 20
(i) a statement required under § 14–103.1 OR § 14–104 of this title; 21
or 22
(ii) an amended statement required under subsection (b) of this 23
section. 24
(2) The State Board may impose late filing fees in the same amounts and 25
in the same manner as provided under §§ 13–331, 13–335, and 13–337 of this article for 26
late filing of campaign finance reports. 27
(3) Late filing fees imposed under this subsection shall be distributed to 28
the Fair Campaign Financing Fund established under § 15–103 of this article. 29
14–110. 30
(a) The State Board may impose a civil penalty in accordance with this section for 31
the following violations: 32
SENATE BILL 291 5
(1) FAILURE TO REPORT CURRENT INFORMATION ON BENEFICIAL 1
OWNERSHIP AS REQUIRED UNDER § 14–103.1 OF THIS TITLE; 2
[(1)] (2) failure to report all applicable contributions made as required 3
under § 14–104 of this title; and 4
[(2)] (3) failure to maintain detailed and accurate records and reports as 5
required in § 14–105 of this title. 6
Article – State Finance and Procurement 7
[13–221. 8
(a) The provisions of this section are broadly applicable and apply to all contracts, 9
leases, or other agreements entered into by the State. 10
(b) (1) In this section, “beneficial ownership” means: 11
(i) any ownership interest of 5% or more in a business; 12
(ii) any ownership interest of 5% or more in 1 or more entities in a 13
chain of parent and subsidiary entities, any 1 of which participates in at least 5% of the 14
capital or profits of a business; or 15
(iii) possession of an interest that exists under an agreement, 16
contract, relationship, understanding, or other arrangement and entitles a person to 17
benefits substantially equivalent to an ownership interest of 5% or more of a business. 18
(2) In this section, unless there are special circumstances, an individual is 19
deemed to hold an ownership interest that is held by the individual’s spouse, the 20
individual’s child, or other relative of the individual who lives in the individual’s home. 21
(c) (1) If, during a calendar year, a business enters into contracts, leases, or 22
other agreements, with the State or its units or both, under which the business is to receive 23
from the State or its units or both a total of $200,000 or more, the business shall file with 24
the Secretary of State a list that contains the name and address of: 25
(i) any resident agent of the business; 26
(ii) each officer of the business; and 27
(iii) if known, each person who has beneficial ownership of the 28
business. 29
(2) The list shall be filed within 30 days of the date when the total value of 30
the contracts, leases, or other agreements entered into during the calendar year reaches 31
$200,000. 32 6 SENATE BILL 291
(3) If a person who has beneficial ownership is unknown to the business, it 1
is sufficient for the business to disclose the legal ownership or the identity of the nominee 2
who holds title for the unknown person. 3
(d) A business or an officer of a business who violates any provision of this section 4
is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000.] 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6
1, 2024. 7