| 1 | 1 | | |
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| 2 | 2 | | |
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| 3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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| 4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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| 5 | 5 | | *hb1389* |
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| 6 | 6 | | |
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| 7 | 7 | | HOUSE BILL 1389 |
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| 8 | 8 | | E2, B1 5lr3424 |
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| 9 | 9 | | |
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| 10 | 10 | | By: Delegate Young |
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| 11 | 11 | | Introduced and read first time: February 7, 2025 |
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| 12 | 12 | | Assigned to: Judiciary and Appropriations |
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| 13 | 13 | | |
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| 14 | 14 | | A BILL ENTITLED |
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| 15 | 15 | | |
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| 16 | 16 | | AN ACT concerning 1 |
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| 17 | 17 | | |
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| 18 | 18 | | Strategic Bitcoin Reserve Act of Maryland 2 |
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| 19 | 19 | | |
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| 20 | 20 | | FOR the purpose of establishing the Maryland Bitcoin Reserve Fund to serve as a reserve 3 |
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| 21 | 21 | | asset for the State through the investment of Bitcoin; authorizing the State 4 |
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| 22 | 22 | | Treasurer to invest the funds obtained by the State through the enforcement of 5 |
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| 23 | 23 | | certain gambling violations in Bitcoin; and generally relating to the investment of 6 |
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| 24 | 24 | | State funds in Bitcoin. 7 |
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| 25 | 25 | | |
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| 26 | 26 | | BY repealing and reenacting, without amendments, 8 |
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| 27 | 27 | | Article – Criminal Procedure 9 |
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| 28 | 28 | | Section 13–101 and 13–102 10 |
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| 29 | 29 | | Annotated Code of Maryland 11 |
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| 30 | 30 | | (2018 Replacement Volume and 2024 Supplement) 12 |
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| 31 | 31 | | |
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| 32 | 32 | | BY repealing and reenacting, with amendments, 13 |
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| 33 | 33 | | Article – Criminal Procedure 14 |
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| 34 | 34 | | Section 13–104 15 |
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| 35 | 35 | | Annotated Code of Maryland 16 |
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| 36 | 36 | | (2018 Replacement Volume and 2024 Supplement) 17 |
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| 37 | 37 | | |
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| 38 | 38 | | BY repealing and reenacting, without amendments, 18 |
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| 39 | 39 | | Article – State Finance and Procurement 19 |
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| 40 | 40 | | Section 6–226(a)(2)(i) 20 |
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| 41 | 41 | | Annotated Code of Maryland 21 |
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| 42 | 42 | | (2021 Replacement Volume and 2024 Supplement) 22 |
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| 43 | 43 | | |
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| 44 | 44 | | BY repealing and reenacting, with amendments, 23 |
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| 45 | 45 | | Article – State Finance and Procurement 24 |
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| 46 | 46 | | Section 6–226(a)(2)(ii)204. and 205. 25 |
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| 47 | 47 | | Annotated Code of Maryland 26 |
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| 48 | 48 | | (2021 Replacement Volume and 2024 Supplement) 27 2 HOUSE BILL 1389 |
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| 49 | 49 | | |
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| 50 | 50 | | |
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| 51 | 51 | | |
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| 52 | 52 | | BY adding to 1 |
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| 53 | 53 | | Article – State Finance and Procurement 2 |
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| 54 | 54 | | Section 6–226(a)(2)(ii)206. and 7–332 3 |
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| 55 | 55 | | Annotated Code of Maryland 4 |
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| 56 | 56 | | (2021 Replacement Volume and 2024 Supplement) 5 |
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| 57 | 57 | | |
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| 58 | 58 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6 |
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| 59 | 59 | | That the Laws of Maryland read as follows: 7 |
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| 60 | 60 | | |
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| 61 | 61 | | Article – Criminal Procedure 8 |
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| 62 | 62 | | |
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| 63 | 63 | | 13–101. 9 |
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| 64 | 64 | | |
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| 65 | 65 | | (a) In this subtitle the following words have the meanings indicated. 10 |
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| 66 | 66 | | |
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| 67 | 67 | | (b) “Final disposition” includes an acquittal, dismissal, nolle prosequi, finding of 11 |
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| 68 | 68 | | guilty, probation before judgment, plea of guilty or of nolo contendere, marking the charge 12 |
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| 69 | 69 | | “stet” on the docket, and an order of an appellate court ending a criminal case. 13 |
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| 70 | 70 | | |
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| 71 | 71 | | (c) “Financial authority” means: 14 |
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| 72 | 72 | | |
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| 73 | 73 | | (1) if the seizing authority is the State, the State Treasurer; 15 |
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| 74 | 74 | | |
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| 75 | 75 | | (2) if the seizing authority is a unit of a county, the treasurer or director of 16 |
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| 76 | 76 | | finance of that county; or 17 |
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| 77 | 77 | | |
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| 78 | 78 | | (3) if the seizing authority is a unit of a municipal corporation, the 18 |
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| 79 | 79 | | treasurer or director of finance of that municipal corporation. 19 |
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| 80 | 80 | | |
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| 81 | 81 | | 13–102. 20 |
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| 82 | 82 | | |
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| 83 | 83 | | (a) Money is prima facie contraband if a law enforcement officer in the State 21 |
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| 84 | 84 | | seizes the money in connection with an arrest for: 22 |
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| 85 | 85 | | |
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| 86 | 86 | | (1) unlawfully playing or operating a bookmaking scheme; 23 |
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| 87 | 87 | | |
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| 88 | 88 | | (2) unlawfully betting on a horse race, athletic event, lottery, or game; or 24 |
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| 89 | 89 | | |
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| 90 | 90 | | (3) using an unlawful gaming table or gaming device. 25 |
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| 91 | 91 | | |
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| 92 | 92 | | (b) (1) For purposes of this subsection, the Police Department of Baltimore 26 |
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| 93 | 93 | | City is not a State authority. 27 |
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| 94 | 94 | | |
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| 95 | 95 | | (2) All rights in, title to, and interest in money seized under subsection (a) 28 |
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| 96 | 96 | | of this section shall immediately vest in and to: 29 |
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| 97 | 97 | | HOUSE BILL 1389 3 |
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| 98 | 98 | | |
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| 99 | 99 | | |
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| 100 | 100 | | (i) the county or the municipal corporation, if the money is seized by 1 |
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| 101 | 101 | | the police of the local government, including a sheriff’s department that is the local law 2 |
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| 102 | 102 | | enforcement unit; or 3 |
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| 103 | 103 | | |
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| 104 | 104 | | (ii) the State, if the money is seized by a State authority. 4 |
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| 105 | 105 | | |
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| 106 | 106 | | 13–104. 5 |
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| 107 | 107 | | |
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| 108 | 108 | | (A) [Pending] SUBJECT TO SUBSECTION (B) OF THIS SECTION , PENDING A 6 |
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| 109 | 109 | | final disposition, the financial authority shall account for and deposit seized money in an 7 |
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| 110 | 110 | | interest–bearing bank account or invest the seized money in accordance with Title 17 of the 8 |
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| 111 | 111 | | Local Government Article. 9 |
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| 112 | 112 | | |
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| 113 | 113 | | (B) IF THE SEIZING AUTHOR ITY IS THE STATE, THE STATE TREASURER 10 |
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| 114 | 114 | | SHALL: 11 |
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| 115 | 115 | | |
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| 116 | 116 | | (1) DEPOSIT SEIZED MONEY INTO THE MARYLAND BITCOIN RESERVE 12 |
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| 117 | 117 | | FUND ESTABLISHED UNDE R § 7–331 OF THE STATE FINANCE AND PROCUREMENT 13 |
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| 118 | 118 | | ARTICLE; AND 14 |
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| 119 | 119 | | |
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| 120 | 120 | | (2) RETAIN IN THE MARYLAND BITCOIN RESERVE FUND ANY SEIZED 15 |
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| 121 | 121 | | MONEY THAT IS FOR FEITED TO THE STATE IN ACCORDANCE W ITH THIS SUBTITLE. 16 |
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| 122 | 122 | | |
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| 123 | 123 | | Article – State Finance and Procurement 17 |
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| 124 | 124 | | |
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| 125 | 125 | | 6–226. 18 |
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| 126 | 126 | | |
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| 127 | 127 | | (a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 19 |
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| 128 | 128 | | through 2028. 20 |
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| 129 | 129 | | |
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| 130 | 130 | | 2. Notwithstanding any other provision of law, and unless 21 |
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| 131 | 131 | | inconsistent with a federal law, grant agreement, or other federal requirement or with the 22 |
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| 132 | 132 | | terms of a gift or settlement agreement, net interest on all State money allocated by the 23 |
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| 133 | 133 | | State Treasurer under this section to special funds or accounts, and otherwise entitled to 24 |
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| 134 | 134 | | receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 25 |
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| 135 | 135 | | Fund of the State. 26 |
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| 136 | 136 | | |
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| 137 | 137 | | (ii) The provisions of subparagraph (i) of this paragraph do not apply 27 |
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| 138 | 138 | | to the following funds: 28 |
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| 139 | 139 | | |
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| 140 | 140 | | 204. the Victims of Domestic Violence Program Grant Fund; 29 |
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| 141 | 141 | | [and] 30 |
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| 142 | 142 | | |
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| 143 | 143 | | 205. the Proposed Programs Collaborative Grant Fund; AND 31 |
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| 144 | 144 | | |
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| 145 | 145 | | 206. THE MARYLAND BITCOIN RESERVE FUND. 32 4 HOUSE BILL 1389 |
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| 146 | 146 | | |
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| 147 | 147 | | |
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| 148 | 148 | | |
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| 149 | 149 | | 7–332. 1 |
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| 150 | 150 | | |
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| 151 | 151 | | (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2 |
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| 152 | 152 | | INDICATED. 3 |
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| 153 | 153 | | |
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| 154 | 154 | | (2) “BITCOIN” MEANS A DE CENTRALIZED DIGITAL ASSET THAT 4 |
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| 155 | 155 | | UTILIZES A BLOCKCHAI N LEDGER AND IS SECU RED BY CRYPTOGRAPHIC 5 |
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| 156 | 156 | | TECHNOLOGY . 6 |
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| 157 | 157 | | |
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| 158 | 158 | | (3) “FUND” MEANS THE MARYLAND BITCOIN RESERVE FUND 7 |
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| 159 | 159 | | ESTABLISHED UNDER TH IS SECTION. 8 |
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| 160 | 160 | | |
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| 161 | 161 | | (B) (1) THERE IS A MARYLAND BITCOIN RESERVE FUND. 9 |
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| 162 | 162 | | |
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| 163 | 163 | | (2) THE PURPOSE OF THE FUND IS TO: 10 |
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| 164 | 164 | | |
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| 165 | 165 | | (I) RETAIN MONEY SEIZED AND FORFEITED TO THE STATE 11 |
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| 166 | 166 | | UNDER § 13–104 OF THE CRIMINAL PROCEDURE ARTICLE; AND 12 |
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| 167 | 167 | | |
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| 168 | 168 | | (II) SERVE AS A RESERVE A SSET FOR THE STATE THROUGH 13 |
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| 169 | 169 | | INVESTMENT IN BITCOIN. 14 |
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| 170 | 170 | | |
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| 171 | 171 | | (3) THE STATE TREASURER SHALL ADMIN ISTER THE FUND. 15 |
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| 172 | 172 | | |
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| 173 | 173 | | (4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 16 |
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| 174 | 174 | | SUBJECT TO § 7–302 OF THIS SUBTITLE. 17 |
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| 175 | 175 | | |
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| 176 | 176 | | (II) SUBJECT TO SUBSECTION (G) OF THIS SECTION, THE STATE 18 |
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| 177 | 177 | | TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE COMPTROLLER SHALL 19 |
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| 178 | 178 | | ACCOUNT FOR THE FUND. 20 |
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| 179 | 179 | | |
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| 180 | 180 | | (C) THE FUND CONSISTS OF : 21 |
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| 181 | 181 | | |
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| 182 | 182 | | (1) REVENUE DISTRIBUTED TO THE FUND UNDER § 13–104 OF THE 22 |
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| 183 | 183 | | CRIMINAL PROCEDURE ARTICLE; 23 |
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| 184 | 184 | | |
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| 185 | 185 | | (2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 24 |
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| 186 | 186 | | |
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| 187 | 187 | | (3) INTEREST EARNINGS ; AND 25 |
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| 188 | 188 | | |
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| 189 | 189 | | (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED FOR 26 |
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| 190 | 190 | | THE BENEFIT OF THE FUND. 27 HOUSE BILL 1389 5 |
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| 191 | 191 | | |
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| 192 | 192 | | |
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| 193 | 193 | | |
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| 194 | 194 | | (D) THE FUND MAY BE USED ONLY TO INVEST IN BITCOIN. 1 |
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| 195 | 195 | | |
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| 196 | 196 | | (E) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 2 |
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| 197 | 197 | | IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 3 |
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| 198 | 198 | | |
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| 199 | 199 | | (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 4 |
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| 200 | 200 | | THE FUND. 5 |
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| 201 | 201 | | |
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| 202 | 202 | | (F) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 6 |
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| 203 | 203 | | WITH THE STATE BUDGET . 7 |
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| 204 | 204 | | |
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| 205 | 205 | | (G) BITCOIN ACQUIRED AS A N INVESTMENT UNDER T HIS SECTION SHALL BE 8 |
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| 206 | 206 | | HELD BY: 9 |
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| 207 | 207 | | |
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| 208 | 208 | | (1) THE STATE TREASURER THROUGH A S ECURE PLATFORM THAT IS 10 |
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| 209 | 209 | | SPECIFICALLY CREATED TO STORE, MANAGE, AND SAFEGUARD DIGITA L ASSETS FOR 11 |
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| 210 | 210 | | INSTITUTIONS; OR 12 |
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| 211 | 211 | | |
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| 212 | 212 | | (2) A QUALIFIED CUSTODIA N AS DETERMINED BY T HE STATE 13 |
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| 213 | 213 | | TREASURER. 14 |
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| 214 | 214 | | |
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| 215 | 215 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15 |
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| 216 | 216 | | October 1, 2025. 16 |
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| 217 | 217 | | |
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