MD
Maryland Senate Bill SB291

Maryland 2024 Regular Session

Maryland Senate Bill SB291 Compare Versions

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1- WES MOORE, Governor Ch. 23
21
3-– 1 –
4-Chapter 23
5-(Senate Bill 291)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *sb0291*
89
9-Persons Doing Public Business – Disclosure Requirements
10+SENATE BILL 291
11+G1, P2 4lr0355
12+ (PRE–FILED) CF HB 112
13+By: Chair, Education, Energy, and the Environment Committee (By Request –
14+Departmental – Secretary of State)
15+Requested: September 19, 2023
16+Introduced and read first time: January 10, 2024
17+Assigned to: Education, Energy, and the Environment
18+Committee Report: Favorable
19+Senate action: Adopted
20+Read second time: February 8, 2024
1021
11-FOR the purpose of requiring a person to file a registration statement with the State Board
12-of Elections within a certain time period after the award of a contract that causes
13-the person to be doing public business; requiring persons doing public business to
14-update information on beneficial ownership included in the registration statement
15-in accordance with regulations adopted by the State Board; altering the time at
16-which a person doing public business is required to file a certain initial statement of
17-political contributions with the State Board; requiring a governmental entity that
18-has awarded a contract that causes a person to be doing public business to, under
19-certain circumstances, require the person to make a certain certification to the Board
20-of Public Works; repealing requirements that certain businesses with State contracts
21-file a certain list with the Secretary of State; and generally relating to disclosures by
22-persons doing public business.
22+CHAPTER ______
2323
24-BY repealing and reenacting, without amendments,
25- Article – Election Law
26- Section 14–101(a), (h), and (i) and 14–104(a)
27- Annotated Code of Maryland
28- (2022 Replacement Volume and 2023 Supplement)
24+AN ACT concerning 1
2925
30-BY adding to
31- Article – Election Law
32- Section 14–101(b–1) and 14–103.1
33- Annotated Code of Maryland
34- (2022 Replacement Volume and 2023 Supplement)
26+Persons Doing Public Business – Disclosure Requirements 2
3527
36-BY repealing and reenacting, with amendments,
37- Article – Election Law
38-Section 14–104(b)(1), 14–107, and 14–110(a)
39- Annotated Code of Maryland
40- (2022 Replacement Volume and 2023 Supplement)
28+FOR the purpose of requiring a person to file a registration statement with the State Board 3
29+of Elections within a certain time period after the award of a contract that causes 4
30+the person to be doing public business; requiring persons doing public business to 5
31+update information on beneficial ownership included in the registration statement 6
32+in accordance with regulations adopted by the State Board; altering the time at 7
33+which a person doing public business is required to file a certain initial statement of 8
34+political contributions with the State Board; requiring a governmental entity that 9
35+has awarded a contract that causes a person to be doing public business to, under 10
36+certain circumstances, require the person to make a certain certification to the Board 11
37+of Public Works; repealing requirements that certain businesses with State contracts 12
38+file a certain list with the Secretary of State; and generally relating to disclosures by 13
39+persons doing public business. 14
4140
42-BY repealing
43- Article – State Finance and Procurement
44- Section 13–221
45- Annotated Code of Maryland
46- (2021 Replacement Volume and 2023 Supplement)
41+BY repealing and reenacting, without amendments, 15
42+ Article – Election Law 16
43+ Section 14–101(a), (h), and (i) and 14–104(a) 17
44+ Annotated Code of Maryland 18
45+ (2022 Replacement Volume and 2023 Supplement) 19
4746
48- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
49-That the Laws of Maryland read as follows: Ch. 23 2024 LAWS OF MARYLAND
47+BY adding to 20
48+ Article – Election Law 21 2 SENATE BILL 291
5049
51-– 2 –
5250
53-Article – Election Law
51+ Section 14–101(b–1) and 14–103.1 1
52+ Annotated Code of Maryland 2
53+ (2022 Replacement Volume and 2023 Supplement) 3
5454
55-14–101.
55+BY repealing and reenacting, with amendments, 4
56+ Article – Election Law 5
57+Section 14–104(b)(1), 14–107, and 14–110(a) 6
58+ Annotated Code of Maryland 7
59+ (2022 Replacement Volume and 2023 Supplement) 8
5660
57- (a) In this title the following words have the meanings indicated.
61+BY repealing 9
62+ Article – State Finance and Procurement 10
63+ Section 13–221 11
64+ Annotated Code of Maryland 12
65+ (2021 Replacement Volume and 2023 Supplement) 13
5866
59- (B–1) “BENEFICIAL OWNERSHIP” MEANS:
67+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
68+That the Laws of Maryland read as follows: 15
6069
61- (1) ANY OWNERSHIP INTERE ST OF 5% OR MORE IN A BUSINES S;
70+Article – Election Law 16
6271
63- (2) ANY OWNERSHIP INTERE ST OF 5% OR MORE IN ONE OR MORE
64-ENTITIES IN A CHAIN OF PARENT AND SUBSID IARY ENTITIES, ANY ONE OF WHICH
65-PARTICIPATES IN AT L EAST 5% OF THE CAPITAL OR PR OFITS OF A BUSINESS ; OR
72+14–101. 17
6673
67- (3) POSSESSION OF AN INT EREST THAT EXISTS UN DER A CONTRACT ,
68-A RELATIONSHIP , AN UNDERSTANDING , OR ANY OTHER ARRANGEMENT AN D
69-ENTITLES A PERSON TO BENEFITS SUBSTANTIAL LY EQUIVALENT TO AN OWN ERSHIP
70-INTEREST OF 5% OR MORE OF A BUSINES S.
74+ (a) In this title the following words have the meanings indicated. 18
7175
72- (h) (1) “Doing public business” means making or having a single contract with
73-a single governmental entity involving cumulative consideration of at least $200,000.
76+ (B–1) “BENEFICIAL OWNERSHIP” MEANS: 19
7477
75- (2) “Doing public business” does not include receiving a salary from a
76-governmental entity.
78+ (1) ANY OWNERSHIP INTERE ST OF 5% OR MORE IN A BUSINES S; 20
7779
78- (i) “Governmental entity” means:
80+ (2) ANY OWNERSHIP INTERE ST OF 5% OR MORE IN ONE OR MORE 21
81+ENTITIES IN A CHAIN OF PARENT AND SUBSID IARY ENTITIES, ANY ONE OF WHICH 22
82+PARTICIPATES IN AT L EAST 5% OF THE CAPITAL OR PR OFITS OF A BUSINESS ; OR 23
7983
80- (1) the State, a county, a municipal corporation, or other political
81-subdivision of the State; and
84+ (3) POSSESSION OF AN INT EREST THAT EXISTS UN DER A CONTRACT , 24
85+A RELATIONSHIP , AN UNDERSTANDING , OR ANY OTHER ARRANGEMENT AN D 25
86+ENTITLES A PERSON TO BENEFITS SUBSTANTIAL LY EQUIVALENT TO AN OWNERSHIP 26
87+INTEREST OF 5% OR MORE OF A BUSINES S. 27
8288
83- (2) a unit of the State, a county, a municipal corporation, or other political
84-subdivision of the State.
89+ (h) (1) “Doing public business” means making or having a single contract with 28
90+a single governmental entity involving cumulative consideration of at least $200,000. 29
8591
86-14–103.1.
92+ (2) “Doing public business” does not include receiving a salary from a 30
93+governmental entity. 31
8794
88- (A) A PERSON SHALL FILE A REGISTRATION STATEMENT WITH THE STATE
89-BOARD WITHIN 15 BUSINESS DAYS AFTER THE AWARD OF A CONTR ACT THAT CAUSES
90-THE PERSON TO BE DOI NG PUBLIC BUSINESS .
95+ (i) “Governmental entity” means: 32
96+ SENATE BILL 291 3
9197
92- (B) THE REGISTRATION STAT EMENT SHALL INCLUDE :
9398
94- (1) THE PERSON’S NAME AND ADDRESS;
99+ (1) the State, a county, a municipal corporation, or other political 1
100+subdivision of the State; and 2
95101
96- (2) ANY RESIDENT AGENT OF THE BUSINESS LOCATED IN THE STATE; WES MOORE, Governor Ch. 23
102+ (2) a unit of the State, a county, a municipal corporation, or other political 3
103+subdivision of the State. 4
97104
98-– 3 –
105+14–103.1. 5
99106
100- (3) IF KNOWN, EACH PERSON WHO HAS BENEFICIAL OWNERSHIP OF
101-THE BUSINESS ENTITY; AND
107+ (A) A PERSON SHALL FILE A REGISTRATION STATEMENT WITH THE STATE 6
108+BOARD WITHIN 15 BUSINESS DAYS AFTER THE AWARD OF A CONTR ACT THAT CAUSES 7
109+THE PERSON TO BE DOI NG PUBLIC BUSINESS . 8
102110
103- (4) ANY OTHER INFORMATION REQUIRED BY THE STATE BOARD.
111+ (B) THE REGISTRATION STAT EMENT SHALL INCLUDE : 9
104112
105- (C) A PERSON DOING PUBLIC BUSINESS SHALL UPDATE THE INFORMATION
106-ON BENEFICIAL OWNERS HIP INCLUDED IN THE REGISTRATION STATEMENT UNDER
107-SUBSECTION (B) OF THIS SECTION IN ACCORDANCE WITH R EGULATIONS ADOPTED
108-BY THE STATE BOARD.
113+ (1) THE PERSON’S NAME AND ADDRESS; 10
109114
110-14–104.
115+ (2) ANY RESIDENT AGENT OF THE BUSINESS LOCATED IN THE STATE; 11
111116
112- (a) A person doing public business shall file a statement with the State Board as
113-provided in this section.
117+ (3) IF KNOWN, EACH PERSON WHO HAS BENEFICIAL OWNERSHIP OF 12
118+THE BUSINESS ENTITY; AND 13
114119
115- (b) (1) [When a contract is awarded that causes a person to be doing public
116-business, an initial statement shall be filed at that time,] WITHIN 15 BUSINESS DAYS
117-AFTER FILING THE REG ISTRATION STATEMENT REQUIRED UNDER § 14–103.1 OF
118-THIS TITLE, A PERSON DOING PUBLI C BUSINESS SHALL FIL E AN INITIAL STATEME NT
119-covering the preceding 24 months.
120+ (4) ANY OTHER INFORMATIO N REQUIRED BY THE STATE BOARD. 14
120121
121-14–107.
122+ (C) A PERSON DOING PUBLIC BUSINESS SHALL UPDATE THE INFORMATION 15
123+ON BENEFICIAL OWNERS HIP INCLUDED IN THE REGISTRATION STATEMENT UNDER 16
124+SUBSECTION (B) OF THIS SECTION IN ACCORDANCE WITH R EGULATIONS ADOPTED 17
125+BY THE STATE BOARD. 18
122126
123- (a) (1) A governmental entity that has awarded a person a contract that causes
124-the person to be doing public business shall:
127+14–104. 19
125128
126- (i) require the person to certify that the person has filed the
127-statement required under § 14–104(b)(1) of this title;
129+ (a) A person doing public business shall file a statement with the State Board as 20
130+provided in this section. 21
128131
129- (II) IF THE CONTRACT IS S UBJECT TO APPROVAL B Y THE BOARD
130-OF PUBLIC WORKS, REQUIRE THE PERSON T O CERTIFY TO THE BOARD OF PUBLIC
131-WORKS THAT THE PERSON HAS FILED THE STATEM ENT REQUIRED UNDER §
132-14–104(B)(1) OF THIS TITLE; and
132+ (b) (1) [When a contract is awarded that causes a person to be doing public 22
133+business, an initial statement shall be filed at that time,] WITHIN 15 BUSINESS DAYS 23
134+AFTER FILING THE REG ISTRATION STA TEMENT REQUIRED UNDE R § 14–103.1 OF 24
135+THIS TITLE, A PERSON DOING PUBLI C BUSINESS SHALL FIL E AN INITIAL STATEME NT 25
136+covering the preceding 24 months. 26
133137
134- [(ii)] (III) provide the State Board with the person’s name, address,
135-and any other contact information required by the State Board.
138+14–107. 27
136139
137- (2) (i) A governmental entity may comply with paragraph [(1)(ii)]
138-(1)(III) of this subsection by sending to the State Board a quarterly report on a form
139-provided by the State Board.
140+ (a) (1) A governmental entity that has awarded a person a contract that causes 28
141+the person to be doing public business shall: 29
142+ 4 SENATE BILL 291
140143
141- (ii) A quarterly report sent under subparagraph (i) of this paragraph
142-shall:
143- Ch. 23 2024 LAWS OF MARYLAND
144144
145-– 4 –
146- 1. include the required information for any person that was
147-awarded a contract that caused the person to be doing public business with the
148-governmental entity during the preceding calendar quarter; and
145+ (i) require the person to certify that the person has filed the 1
146+statement required under § 14–104(b)(1) of this title; 2
149147
150- 2. be submitted to the State Board no later than 10 business
151-days after the close of each calendar quarter.
148+ (II) IF THE CONTRACT IS S UBJECT TO APPROVAL B Y THE BOARD 3
149+OF PUBLIC WORKS, REQUIRE THE PERSON T O CERTIFY TO THE BOARD OF PUBLIC 4
150+WORKS THAT THE PERSON HAS FILED THE STATEM ENT REQUIRED UNDER § 5
151+14–104(B)(1) OF THIS TITLE; and 6
152152
153- (b) (1) If a person files a statement under § 14–103.1 OR § 14–104 of this title
154-that does not include all the information required, the State Board shall notify the person
155-in writing of the particular deficiencies.
153+ [(ii)] (III) provide the State Board with the person’s name, address, 7
154+and any other contact information required by the State Board. 8
156155
157- (2) Within 30 days after service of the notice under paragraph (1) of this
158-subsection, the person shall file an amended statement that includes all the information
159-required.
156+ (2) (i) A governmental entity may comply with paragraph [(1)(ii)] 9
157+(1)(III) of this subsection by sending to the State Board a quarterly report on a form 10
158+provided by the State Board. 11
160159
161- (c) (1) As provided in this subsection, the State Board may impose fees for late
162-filing of:
160+ (ii) A quarterly report sent under subparagraph (i) of this paragraph 12
161+shall: 13
163162
164- (i) a statement required under § 14–103.1 OR § 14–104 of this title;
165-or
163+ 1. include the required information for any person that was 14
164+awarded a contract that caused the person to be doing public business with the 15
165+governmental entity during the preceding calendar quarter; and 16
166166
167- (ii) an amended statement required under subsection (b) of this
168-section.
167+ 2. be submitted to the State Board no later than 10 business 17
168+days after the close of each calendar quarter. 18
169169
170- (2) The State Board may impose late filing fees in the same amounts and
171-in the same manner as provided under §§ 13–331, 13–335, and 13–337 of this article for
172-late filing of campaign finance reports.
170+ (b) (1) If a person files a statement under § 14–103.1 OR § 14–104 of this title 19
171+that does not include all the information required, the State Board shall notify the person 20
172+in writing of the particular deficiencies. 21
173173
174- (3) Late filing fees imposed under this subsection shall be distributed to
175-the Fair Campaign Financing Fund established under § 15–103 of this article.
174+ (2) Within 30 days after service of the notice under paragraph (1) of this 22
175+subsection, the person shall file an amended statement that includes all the information 23
176+required. 24
176177
177-14–110.
178+ (c) (1) As provided in this subsection, the State Board may impose fees for late 25
179+filing of: 26
178180
179- (a) The State Board may impose a civil penalty in accordance with this section for
180-the following violations:
181+ (i) a statement required under § 14–103.1 OR § 14–104 of this title; 27
182+or 28
181183
182- (1) FAILURE TO REPORT CURRENT INFORMATION ON BENEFICIAL
183-OWNERSHIP AS REQUIRED UNDER § 14–103.1 OF THIS TITLE;
184+ (ii) an amended statement required under subsection (b) of this 29
185+section. 30
184186
185- [(1)] (2) failure to report all applicable contributions made as required
186-under § 14–104 of this title; and
187+ (2) The State Board may impose late filing fees in the same amounts and 31
188+in the same manner as provided under §§ 13–331, 13–335, and 13–337 of this article for 32
189+late filing of campaign finance reports. 33
190+ SENATE BILL 291 5
187191
188- [(2)] (3) failure to maintain detailed and accurate records and reports as
189-required in § 14–105 of this title.
190192
191-Article – State Finance and Procurement WES MOORE, Governor Ch. 23
193+ (3) Late filing fees imposed under this subsection shall be distributed to 1
194+the Fair Campaign Financing Fund established under § 15–103 of this article. 2
192195
193-– 5 –
196+14–110. 3
194197
195-[13–221.
198+ (a) The State Board may impose a civil penalty in accordance with this section for 4
199+the following violations: 5
196200
197- (a) The provisions of this section are broadly applicable and apply to all contracts,
198-leases, or other agreements entered into by the State.
201+ (1) FAILURE TO REPORT CURRENT INFORMATION ON BENEFICIAL 6
202+OWNERSHIP AS REQUIRED UNDER § 14–103.1 OF THIS TITLE; 7
199203
200- (b) (1) In this section, “beneficial ownership” means:
204+ [(1)] (2) failure to report all applicable contributions made as required 8
205+under § 14–104 of this title; and 9
201206
202- (i) any ownership interest of 5% or more in a business;
207+ [(2)] (3) failure to maintain detailed and accurate records and reports as 10
208+required in § 14–105 of this title. 11
203209
204- (ii) any ownership interest of 5% or more in 1 or more entities in a
205-chain of parent and subsidiary entities, any 1 of which participates in at least 5% of the
206-capital or profits of a business; or
210+Article – State Finance and Procurement 12
207211
208- (iii) possession of an interest that exists under an agreement,
209-contract, relationship, understanding, or other arrangement and entitles a person to
210-benefits substantially equivalent to an ownership interest of 5% or more of a business.
212+[13–221. 13
211213
212- (2) In this section, unless there are special circumstances, an individual is
213-deemed to hold an ownership interest that is held by the individual’s spouse, the
214-individual’s child, or other relative of the individual who lives in the individual’s home.
214+ (a) The provisions of this section are broadly applicable and apply to all contracts, 14
215+leases, or other agreements entered into by the State. 15
215216
216- (c) (1) If, during a calendar year, a business enters into contracts, leases, or
217-other agreements, with the State or its units or both, under which the business is to receive
218-from the State or its units or both a total of $200,000 or more, the business shall file with
219-the Secretary of State a list that contains the name and address of:
217+ (b) (1) In this section, “beneficial ownership” means: 16
220218
221- (i) any resident agent of the business;
219+ (i) any ownership interest of 5% or more in a business; 17
222220
223- (ii) each officer of the business; and
221+ (ii) any ownership interest of 5% or more in 1 or more entities in a 18
222+chain of parent and subsidiary entities, any 1 of which participates in at least 5% of the 19
223+capital or profits of a business; or 20
224224
225- (iii) if known, each person who has beneficial ownership of the
226-business.
225+ (iii) possession of an interest that exists under an agreement, 21
226+contract, relationship, understanding, or other arrangement and entitles a person to 22
227+benefits substantially equivalent to an ownership interest of 5% or more of a business. 23
227228
228- (2) The list shall be filed within 30 days of the date when the total value of
229-the contracts, leases, or other agreements entered into during the calendar year reaches
230-$200,000.
229+ (2) In this section, unless there are special circumstances, an individual is 24
230+deemed to hold an ownership interest that is held by the individual’s spouse, the 25
231+individual’s child, or other relative of the individual who lives in the individual’s home. 26
231232
232- (3) If a person who has beneficial ownership is unknown to the business, it
233-is sufficient for the business to disclose the legal ownership or the identity of the nominee
234-who holds title for the unknown person.
233+ (c) (1) If, during a calendar year, a business enters into contracts, leases, or 27
234+other agreements, with the State or its units or both, under which the business is to receive 28
235+from the State or its units or both a total of $200,000 or more, the business shall file with 29
236+the Secretary of State a list that contains the name and address of: 30
235237
236- (d) A business or an officer of a business who violates any provision of this section
237-is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000.]
238- Ch. 23 2024 LAWS OF MARYLAND
238+ (i) any resident agent of the business; 31
239+ 6 SENATE BILL 291
239240
240-– 6 –
241- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
242-1, 2024.
243241
244-Approved by the Governor, April 9, 2024.
242+ (ii) each officer of the business; and 1
243+
244+ (iii) if known, each person who has beneficial ownership of the 2
245+business. 3
246+
247+ (2) The list shall be filed within 30 days of the date when the total value of 4
248+the contracts, leases, or other agreements entered into during the calendar year reaches 5
249+$200,000. 6
250+
251+ (3) If a person who has beneficial ownership is unknown to the business, it 7
252+is sufficient for the business to disclose the legal ownership or the identity of the nominee 8
253+who holds title for the unknown person. 9
254+
255+ (d) A business or an officer of a business who violates any provision of this section 10
256+is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000.] 11
257+
258+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
259+1, 2024. 13
260+
261+
262+
263+Approved:
264+________________________________________________________________________________
265+ Governor.
266+________________________________________________________________________________
267+ President of the Senate.
268+________________________________________________________________________________
269+ Speaker of the House of Delegates.