Maryland 2024 Regular Session

Maryland Senate Bill SB954 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0954
6	6
7	7	SENATE BILL 954
8	8	C1 4lr2196
9	9
10	10	By: Senator Sydnor
11	11	Introduced and read first time: February 2, 2024
12	12	Assigned to: Judicial Proceedings
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Corporations and Associations – Transparency – Beneficial Ownership 2
19	19
20	20	FOR the purpose of requiring certain business entities to file with the State Department of 3
21	21	Assessments and Taxation a report including certain information regarding 4
22	22	beneficial owners of the entities; prohibiting the inspection of reports filed under this 5
23	23	Act; and generally relating to beneficial owners. 6
24	24
25	25	BY adding to 7
26	26	Article – Corporations and Associations 8
27	27	Section 1–210 9
28	28	Annotated Code of Maryland 10
29	29	(2014 Replacement Volume and 2023 Supplement) 11
30	30
31	31	BY adding to 12
32	32	Article – General Provisions 13
33	33	Section 4–327.1 14
34	34	Annotated Code of Maryland 15
35	35	(2019 Replacement Volume and 2023 Supplement) 16
36	36
37	37	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
38	38	That the Laws of Maryland read as follows: 18
39	39
40	40	Article – Corporations and Associations 19
41	41
42	42	1–210. 20
43	43
44	44	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 21
45	45	INDICATED. 22
46	46
47	47	(2) “ACCEPTABLE IDENTIFICA TION DOCUMENT ” MEANS: 23 2 SENATE BILL 954
48	48
49	49
50	50
51	51	(I) A VALID UNITED STATES PASSPORT; 1
52	52
53	53	(II) A VALID IDENTIFICATION DOCUMENT ISSUED BY A STATE, 2
54	54	LOCAL GOVERNMENT , OR INDIAN TRIBE; 3
55	55
56	56	(III) A VALID DRIVER’S LICENSE ISSUED BY A STATE; OR 4
57	57
58	58	(IV) IF AN INDIVIDUAL DOES NOT HAVE A DOCUMENT LISTED IN 5
59	59	ITEM (I), (II), OR (III) OF THIS PARAGRAPH , A VALID PASSPORT ISSUED BY A FOREIGN 6
60	60	GOVERNMENT . 7
61	61
62	62	(3) “APPLICANT” MEANS AN INDIVIDUAL WHO FILES WITH THE 8
63	63	DEPARTMENT ANY DOCUME NT CAUSING A REPORTING ENTITY TO BE FORMED . 9
64	64
65	65	(4) (I) “BENEFICIAL OWNER ” MEANS A N INDIVIDUAL WHO, 10
66	66	THROUGH ANY CONTRACT , ARRANGEMENT , UNDERSTANDING , RELATIONSHIP , OR 11
67	67	OTHER MEANS : 12
68	68
69	69	1. EXERCISES SUBSTANTIAL CONTROL OVER A 13
70	70	REPORTING ENTITY ; OR 14
71	71
72	72	2. OWNS OR CONTROLS AT L EAST 25% OF THE 15
73	73	OWNERSHIP INTEREST O F A REPORTING ENTITY . 16
74	74
75	75	(II) “BENEFICIAL OWNER” DOES NOT INCLUDE : 17
76	76
77	77	1. AN INDIVIDUAL ACTING AS A NOMINEE , AN 18
78	78	INTERMEDIARY , A CUSTODIAN, OR AN AGENT ON BEHALF OF A BENEFICIAL OWNER ; 19
79	79
80	80	2. AN INDIVIDUAL ACTING SOLELY AS AN EMPLOYEE OF 20
81	81	A REPORTING ENTITY AND WHOSE CONTROL OVER O R ECONOMIC BENEFITS FROM 21
82	82	THE REPORTING ENTITY ARE DERIVED SOLELY FROM THE EMPLOYMENT STATU S OF 22
83	83	THE INDIVIDUAL ; 23
84	84
85	85	3. AN INDIVIDUAL WHOSE O NLY INTEREST IN A 24
86	86	REPORTING ENTITY IS THROUGH A RIGHT OF I NHERITANCE ; OR 25
87	87
88	88	4. A CREDITOR OF A REPORT ING ENTITY. 26
89	89
90	90	(5) (I) “REPORTING ENTITY ” MEANS AN ENTITY CREATED BY THE 27
91	91	FILING OF ANY DOCUME NT WITH THE DEPARTMENT . 28
92	92	SENATE BILL 954 3
93	93
94	94
95	95	(II) “REPORTING ENTITY ” DOES NOT INCLUDE A B ANKING 1
96	96	INSTITUTION, AS DEFINED IN § 1–101 OF THE FINANCIAL INSTITUTIONS ARTICLE. 2
97	97
98	98	(B) (1) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , EACH 3
99	99	REPORTING ENTITY SHA LL FILE WITH THE DEPARTMENT A REPORT C ONTAINING, 4
100	100	FOR EACH APPLICANT A ND OWNER OF THE REPO RTING ENTITY: 5
101	101
102	102	(I) THE FULL LEGAL NAME; 6
103	103
104	104	(II) A CURRENT RESIDENTIAL OR BUSINESS ADDRESS ; AND 7
105	105
106	106	(III) AN ACCEPTABLE IDENTIFICATION DOCUM ENT. 8
107	107
108	108	(2) A REPORTING ENTITY SHA LL FILE THE REPORT REQUIRED BY 9
109	109	THIS SUBSECTION WITH IN 30 DAYS AFTER THE FILING OF DOCUME NTS WITH THE 10
110	110	DEPARTMENT THAT CAUSED THE REPORTING ENTITY TO BE FORMED. 11
111	111
112	112	(3) IF THE INFORMATION RE QUIRED UNDER PARAGRAPH (1) OF THIS 12
113	113	SUBSECTION CHANGES, THE REPORTING ENTITY SHALL FILE AN AMENDE D REPORT 13
114	114	WITH THE DEPARTMENT WITHIN 30 DAYS AFTER THE CHANGE . 14
115	115
116	116	(4) IF A BENEFICIAL OWNER OF A REPORTING ENTITY IS A MINOR, 15
117	117	THE REPORTING ENTITY : 16
118	118
119	119	(I) MAY NOT INCLUDE IN TH E REPORT INFORMATION 17
120	120	REGARDING THE MINOR ; BUT 18
121	121
122	122	(II) SHALL INCLUDE THE INFORMATION REQUIRED UNDER 19
123	123	SUBSECTION (B)(1) OF THIS SECTION FOR A PARENT OR GUARDIAN OF THE MINOR. 20
124	124
125	125	(C) (1) A PERSON MAY NOT KNOWI NGLY FAIL TO SUBMIT A REPORT 21
126	126	REQUIRED BY THIS SEC TION. 22
127	127
128	128	(2) A PERSON MAY NOT CAUSE TO BE FILED A REPORT UNDER THIS 23
129	129	SECTION THAT THE PERSON KNOWS CONTAIN S FALSE INFORMATION . 24
130	130
131	131	(3) THE DEPARTMENT MAY IMPOSE A CIVIL PENALTY FOR A 25
132	132	VIOLATION OF THIS SU BSECTION OF $500 FOR EACH DAY THE VIO LATION 26
133	133	CONTINUES. 27
134	134
135	135	(D) THE DEPARTMENT SHALL ADOPT REGULATIONS TO CARRY OUT THIS 28
136	136	SECTION. 29
137	137	4 SENATE BILL 954
138	138
139	139
140	140	Article – General Provisions 1
141	141
142	142	4–327.1. 2
143	143
144	144	(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , A 3
145	145	CUSTODIAN SHALL DENY INSPECTION OF A REPO RT FILED WITH THE STATE 4
146	146	DEPARTMENT OF ASSESSMENTS AND TAXATION UNDER § 1–210 OF THE 5
147	147	CORPORATIONS AND ASSOCIATIONS ARTICLE. 6
148	148
149	149	(B) A CUSTODIAN SHALL ALLO W INSPECTION BY A UNIT OF STATE 7
150	150	GOVERNMENT IN THE PE RFORMANCE OF THE UNIT’S OFFICIAL DUTIES. 8
151	151
152	152	SECTION 2. AND BE IT FURTHER ENACTED, That a reporting entity formed 9
153	153	before the effective date of this Act shall file the report required by § 1–210 of the 10
154	154	Corporations and Associations Article, as enacted by Section 1 of this Act, on or before 11
155	155	October 1, 2025. 12
156	156
157	157	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
158	158	October 1, 2024. 14