EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1389*
HOUSE BILL 1389
E2, B1 5lr3424
By: Delegate Young
Introduced and read first time: February 7, 2025
Assigned to: Judiciary and Appropriations
A BILL ENTITLED
AN ACT concerning 1
Strategic Bitcoin Reserve Act of Maryland 2
FOR the purpose of establishing the Maryland Bitcoin Reserve Fund to serve as a reserve 3
asset for the State through the investment of Bitcoin; authorizing the State 4
Treasurer to invest the funds obtained by the State through the enforcement of 5
certain gambling violations in Bitcoin; and generally relating to the investment of 6
State funds in Bitcoin. 7
BY repealing and reenacting, without amendments, 8
Article – Criminal Procedure 9
Section 13–101 and 13–102 10
Annotated Code of Maryland 11
(2018 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Criminal Procedure 14
Section 13–104 15
Annotated Code of Maryland 16
(2018 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – State Finance and Procurement 19
Section 6–226(a)(2)(i) 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2024 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – State Finance and Procurement 24
Section 6–226(a)(2)(ii)204. and 205. 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2024 Supplement) 27 2 HOUSE BILL 1389
BY adding to 1
Article – State Finance and Procurement 2
Section 6–226(a)(2)(ii)206. and 7–332 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2024 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Criminal Procedure 8
13–101. 9
(a) In this subtitle the following words have the meanings indicated. 10
(b) “Final disposition” includes an acquittal, dismissal, nolle prosequi, finding of 11
guilty, probation before judgment, plea of guilty or of nolo contendere, marking the charge 12
“stet” on the docket, and an order of an appellate court ending a criminal case. 13
(c) “Financial authority” means: 14
(1) if the seizing authority is the State, the State Treasurer; 15
(2) if the seizing authority is a unit of a county, the treasurer or director of 16
finance of that county; or 17
(3) if the seizing authority is a unit of a municipal corporation, the 18
treasurer or director of finance of that municipal corporation. 19
13–102. 20
(a) Money is prima facie contraband if a law enforcement officer in the State 21
seizes the money in connection with an arrest for: 22
(1) unlawfully playing or operating a bookmaking scheme; 23
(2) unlawfully betting on a horse race, athletic event, lottery, or game; or 24
(3) using an unlawful gaming table or gaming device. 25
(b) (1) For purposes of this subsection, the Police Department of Baltimore 26
City is not a State authority. 27
(2) All rights in, title to, and interest in money seized under subsection (a) 28
of this section shall immediately vest in and to: 29
HOUSE BILL 1389 3
(i) the county or the municipal corporation, if the money is seized by 1
the police of the local government, including a sheriff’s department that is the local law 2
enforcement unit; or 3
(ii) the State, if the money is seized by a State authority. 4
13–104. 5
(A) [Pending] SUBJECT TO SUBSECTION (B) OF THIS SECTION , PENDING A 6
final disposition, the financial authority shall account for and deposit seized money in an 7
interest–bearing bank account or invest the seized money in accordance with Title 17 of the 8
Local Government Article. 9
(B) IF THE SEIZING AUTHOR ITY IS THE STATE, THE STATE TREASURER 10
SHALL: 11
(1) DEPOSIT SEIZED MONEY INTO THE MARYLAND BITCOIN RESERVE 12
FUND ESTABLISHED UNDE R § 7–331 OF THE STATE FINANCE AND PROCUREMENT 13
ARTICLE; AND 14
(2) RETAIN IN THE MARYLAND BITCOIN RESERVE FUND ANY SEIZED 15
MONEY THAT IS FOR FEITED TO THE STATE IN ACCORDANCE W ITH THIS SUBTITLE. 16
Article – State Finance and Procurement 17
6–226. 18
(a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 19
through 2028. 20
2. Notwithstanding any other provision of law, and unless 21
inconsistent with a federal law, grant agreement, or other federal requirement or with the 22
terms of a gift or settlement agreement, net interest on all State money allocated by the 23
State Treasurer under this section to special funds or accounts, and otherwise entitled to 24
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 25
Fund of the State. 26
(ii) The provisions of subparagraph (i) of this paragraph do not apply 27
to the following funds: 28
204. the Victims of Domestic Violence Program Grant Fund; 29
[and] 30
205. the Proposed Programs Collaborative Grant Fund; AND 31
206. THE MARYLAND BITCOIN RESERVE FUND. 32 4 HOUSE BILL 1389
7–332. 1
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(2) “BITCOIN” MEANS A DE CENTRALIZED DIGITAL ASSET THAT 4
UTILIZES A BLOCKCHAI N LEDGER AND IS SECU RED BY CRYPTOGRAPHIC 5
TECHNOLOGY . 6
(3) “FUND” MEANS THE MARYLAND BITCOIN RESERVE FUND 7
ESTABLISHED UNDER TH IS SECTION. 8
(B) (1) THERE IS A MARYLAND BITCOIN RESERVE FUND. 9
(2) THE PURPOSE OF THE FUND IS TO: 10
(I) RETAIN MONEY SEIZED AND FORFEITED TO THE STATE 11
UNDER § 13–104 OF THE CRIMINAL PROCEDURE ARTICLE; AND 12
(II) SERVE AS A RESERVE A SSET FOR THE STATE THROUGH 13
INVESTMENT IN BITCOIN. 14
(3) THE STATE TREASURER SHALL ADMIN ISTER THE FUND. 15
(4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 16
SUBJECT TO § 7–302 OF THIS SUBTITLE. 17
(II) SUBJECT TO SUBSECTION (G) OF THIS SECTION, THE STATE 18
TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE COMPTROLLER SHALL 19
ACCOUNT FOR THE FUND. 20
(C) THE FUND CONSISTS OF : 21
(1) REVENUE DISTRIBUTED TO THE FUND UNDER § 13–104 OF THE 22
CRIMINAL PROCEDURE ARTICLE; 23
(2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 24
(3) INTEREST EARNINGS ; AND 25
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED FOR 26
THE BENEFIT OF THE FUND. 27 HOUSE BILL 1389 5
(D) THE FUND MAY BE USED ONLY TO INVEST IN BITCOIN. 1
(E) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 2
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 3
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 4
THE FUND. 5
(F) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 6
WITH THE STATE BUDGET . 7
(G) BITCOIN ACQUIRED AS A N INVESTMENT UNDER T HIS SECTION SHALL BE 8
HELD BY: 9
(1) THE STATE TREASURER THROUGH A S ECURE PLATFORM THAT IS 10
SPECIFICALLY CREATED TO STORE, MANAGE, AND SAFEGUARD DIGITA L ASSETS FOR 11
INSTITUTIONS; OR 12
(2) A QUALIFIED CUSTODIA N AS DETERMINED BY T HE STATE 13
TREASURER. 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2025. 16