EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0679*
SENATE BILL 679
Q7 4lr2991
CF HB 454
By: The President (By Request – Office of the Comptroller)
Introduced and read first time: January 29, 2024
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Disclosure of Tax Information – Tax Compliance Activity and Binding Data Use 2
Agreements 3
FOR the purpose of authorizing, subject to certain limitations, the disclosure of certain tax 4
information to certain persons and governmental entities for the purpose of assisting 5
the Comptroller in certain tax compliance activity; requiring the Comptroller, when 6
disclosing tax information in accordance with certain provisions of law, to require 7
the party to whom the information is to be disclosed to enter into a certain data use 8
agreement; prohibiting an officer, employee, former officer, or former employee of a 9
certain person from disclosing the tax information except under certain 10
circumstances; and generally relating to the disclosure of tax information by the 11
Maryland Comptroller. 12
BY repealing and reenacting, with amendments, 13
Article – Tax – General 14
Section 13–203(c) and 13–1018 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2023 Supplement) 17
BY adding to 18
Article – Tax – General 19
Section 13–203(f) and 13–208 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2023 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Tax – General 25
13–203. 26 2 SENATE BILL 679
(c) [Tax] SUBJECT TO SUBSECTION (F) OF THIS SECTION , TAX information 1
may be disclosed to: 2
(1) an employee or officer of the State who, by reason of that employment 3
or office, has the right to the tax information; 4
(2) another tax collector; 5
(3) the Maryland Tax Court; 6
(4) a legal representative of the State, to review the tax information about 7
a taxpayer: 8
(i) who applies for review under this title; 9
(ii) who appeals from a determination under this title; or 10
(iii) against whom an action to recover tax or a penalty is pending or 11
will be initiated under this title; 12
(5) any license issuing authority of the State required by State law to verify 13
through the Comptroller that an applicant has paid a ll undisputed taxes and 14
unemployment insurance contributions payable to the Comptroller or the Secretary of 15
Labor or that the applicant has provided for payment in a manner satisfactory to the unit 16
responsible for collection; 17
(6) a local official as defined in § 13–925 of this title to the extent necessary 18
to administer Subtitle 9, Part V of this title; 19
(7) a federal official as defined in § 13–930 of this title to the extent 20
necessary to administer Subtitle 9, Part VI of this title; 21
(8) the Maryland Department of Health in accordance with the federal 22
Children’s Health Insurance Program Reauthorization Act of 2009; 23
(9) the State Board of Individual Tax Preparers; 24
(10) the Alcohol and Tobacco Commission; 25
(11) the Maryland 9–1–1 Board; 26
(12) a person or governmental entity authorized by the Comptroller in 27
writing to receive tax information for the purpose of identifying, preventing, or responding 28
to fraud, provided that the tax information is: 29
SENATE BILL 679 3
(i) anonymized to the extent possible consis tent with the 1
information’s intended use; and 2
(ii) in addition to any other protections and safeguards under law, 3
subject to any protections and safeguards set forth by the Comptroller in the written 4
authorization; 5
(13) the Maryland Higher Education Commission; 6
(14) a hospital, the Health Services Cost Review Commission, the 7
Department of Human Services, the Maryland Department of Health, and the State 8
Department of Education, to the extent necessary to administer § 19–214.4 of the Health – 9
General Article; [and] 10
(15) subject to subsection (e) of this section, the Maryland Small Business 11
Retirement Savings Board and its authorized contractors for the purpose of administering 12
the Maryland Small Business Retirement Savings Program and Trust as authorized under 13
Title 12 of the Labor and Employment Article; AND 14
(16) A PERSON OR GOVERNME NTAL ENTITY FOR THE PURPOSE OF 15
ASSISTING THE COMPTROLLER IN TAX CO MPLIANCE ACTIVITY . 16
(F) WHEN DISCLOSING CONFI DENTIAL TAX INFORMAT ION UNDER 17
SUBSECTION (C) OF THIS SECTION, THE COMPTROLLER SHALL REQ UIRE THE PARTY 18
TO WHOM THE INFORMAT ION IS TO BE DISCLOS ED TO ENTER INTO A B INDING, 19
WRITTEN DATA USE AGR EEMENT, THE TERMS OF WHICH S HALL BE PRESCRIBED B Y 20
THE COMPTROLLER ACCORDING TO THE COMPTROLLER ’S DATA SECURITY 21
POLICIES AND BE CONSISTENT WITH STATE AND FEDERAL REQ UIREMENTS. 22
13–208. 23
AN OFFICER, EMPLOYEE, FORMER OFFICER , OR FORMER EMPLOYEE O F A 24
PERSON TO WHICH TAX INFORMATION HAS BEEN DISCLOSED UNDER § 25
13–203(C)(16) OF THIS SUBTITLE MAY NOT DISCLOSE , IN ANY MANNER , ANY TAX 26
INFORMATION OBTAINED IN ACCORDANCE WITH T HE DATA USE AGREEMEN T, 27
UNLESS THE DISCLOSUR E IS: 28
(1) AUTHORIZED EXPRESSLY BY A LAW OF THIS STATE OR THE 29
FEDERAL GOVERNMENT ; 30
(2) AUTHORIZED BY THE DA TA USE AGREEMENT ; OR 31
(3) REQUIRED BY A COURT ORDER. 32
13–1018. 33 4 SENATE BILL 679
An officer, employee, former officer, or former employee of the State [or of], a political 1
subdivision of the State, OR A PERSON TO WHICH TAX INFORMATION HAS BEEN 2
DISCLOSED IN ACCORDA NCE WITH § 13–203 OF THIS TITLE who makes a disclosure in 3
violation of Subtitle 2 of this title is guilty of a misdemeanor and, on conviction, is subject 4
to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both. 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6
1, 2024. 7