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