EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0904*
SENATE BILL 904
Q7, C2 5lr2194
CF 5lr2196
By: Senators Hester, Ferguson, Love, Gile, Jackson, and Rosapepe
Introduced and read first time: January 28, 2025
Assigned to: Budget and Taxation and Finance
A BILL ENTITLED
AN ACT concerning 1
Data Brokers – Registry and Gross Income Tax 2
(Building Information Guardrails Data Act of 2025) 3
FOR the purpose of establishing the Privacy Protection and Enforcement Unit within the 4
Division of Consumer Protection in the Office of the Attorney General; establishing 5
a data broker registry; requiring certain data brokers to register each year with the 6
Comptroller; imposing a tax on the gross income of certain data brokers; and 7
generally relating to data brokers. 8
BY renumbering 9
Article – Tax – General 10
Section 2–4A–01 and 2–4A–02 and the subtitle “Subtitle 4A. Digital Advertising 11
Gross Revenues Tax Revenue Distribution” 12
to be Section 2–4B–01 and 2–4B–02, respectively, and the subtitle “Subtitle 4B. 13
Digital Advertising Gross Revenues Tax Revenue Distribution” 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – Commercial Law 18
Section 13–101(a) and (e) 19
Annotated Code of Maryland 20
(2013 Replacement Volume and 2024 Supplement) 21
BY adding to 22
Article – Commercial Law 23
Section 13–204.1 24
Annotated Code of Maryland 25
(2013 Replacement Volume and 2024 Supplement) 26
BY repealing and reenacting, without amendments, 27 2 SENATE BILL 904
Article – Education 1
Section 7–447.1(p)(2) 2
Annotated Code of Maryland 3
(2022 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Education 6
Section 7–447.1(p)(6) 7
Annotated Code of Maryland 8
(2022 Replacement Volume and 2024 Supplement) 9
BY adding to 10
Article – Education 11
Section 24–204(e) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – State Finance and Procurement 16
Section 3.5–309(a) 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2024 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – State Finance and Procurement 21
Section 3.5–309(e) 22
Annotated Code of Maryland 23
(2021 Replacement Volume and 2024 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Tax – General 26
Section 1–101(a) and 13–508(b) 27
Annotated Code of Maryland 28
(2022 Replacement Volume and 2024 Supplement) 29
BY adding to 30
Article – Tax – General 31
Section 1–101(f–1); 2–4A–01 and 2–4A–02 to be under the new subtitle “Subtitle 4A. 32
Data Broker Gross Income Tax Revenue Distribution”; 7.3–101 through 33
7.3–501 to be under the new title “Title 7.3. Data Broker Registry and Gross 34
Income Tax”; and 13–402(a)(7) and 13–1001(h) 35
Annotated Code of Maryland 36
(2022 Replacement Volume and 2024 Supplement) 37
BY repealing and reenacting, with amendments, 38
Article – Tax – General 39 SENATE BILL 904 3
Section 2–102(a), 13–201(4), 13–402(a)(5) and (6), 13–508(a) and (c), 13–509, 1
13–1002(b) and (c), and 13–1101(b) and (c) 2
Annotated Code of Maryland 3
(2022 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Commercial Law 6
Section 13–204.1(c)(1) 7
Annotated Code of Maryland 8
(2013 Replacement Volume and 2024 Supplement) 9
(As enacted by Section 2 of this Act) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That Section(s) 2–4A–01 and 2–4A–02 and the subtitle “Subtitle 4A. Digital Advertising 12
Gross Revenues Tax Revenue Distribution” of Article – Tax – General of the Annotated 13
Code of Maryland be renumbered to be Section(s) 2–4B–01 and 2–4B–02, respectively, and 14
the subtitle “Subtitle 4B. Digital Advertising Gross Revenues Tax Revenue Distribution”. 15
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 16
as follows: 17
Article – Commercial Law 18
13–101. 19
(a) In this title the following words have the meanings indicated. 20
(e) “Division” means the Division of Consumer Protection of the Office of the 21
Attorney General. 22
13–204.1. 23
(A) THERE IS A PRIVACY PROTECTION AND ENFORCEMENT UNIT IN THE 24
DIVISION. 25
(B) THE PURPOSE OF THE UNIT IS TO PROTECT TH E PRIVACY AND ONLINE 26
SECURITY OF INDIVIDUALS ’ PERSONAL INFORMATION AND THE INDIVIDUALS ’ 27
DIGITAL RIGHTS AND T O PROTECT THE PUBLIC FROM UNFAIR , ABUSIVE, OR 28
DECEPTIVE PRACTICES INVOLVING ARTIFICIAL INTELLIGENCE , CYBERSECURITY , 29
AND OTHER ONLINE OR DIGITAL PRIVACY ISSU ES. 30
(C) THE UNIT SHALL: 31
(1) ENFORCE: 32
4 SENATE BILL 904
(I) THE MARYLAND AGE–APPROPRIATE DESIGN CODE ACT; 1
AND 2
(II) ANY STATE OR FEDERAL LAWS INVOLVING TECHNOLOGY , 3
ONLINE SERVICES AND PRODUCTS, CYBERSECURITY , ARTIFICIAL INTELLIGE NCE, 4
AND DIGITAL PRIVACY ; 5
(2) EMPOWER AND EDUCATE STATE CONSUMERS WITH 6
INFORMATION ON THE IR RIGHTS AND STRATE GIES FOR PROTECTING THE 7
CONSUMER ’S PRIVACY, ONLINE SAFETY , AND SECURITY AGAINST RISKS ASSOCIATED 8
WITH ARTIFICIAL INTE LLIGENCE, CYBERSECURITY BREACH ES, AND OTHER DIGITAL 9
THREATS; AND 10
(3) ASSIST, ADVISE, AND COOPERATE WITH L OCAL, STATE, AND 11
FEDERAL AGENCIES AND OFFICIALS TO PROTECT AND PROMOTE THE INTE RESTS OF 12
CONSUMERS IN THE STATE REGARDING PRIVA CY–RELATED ISSUES , 13
CYBERSECURITY RISKS , ARTIFICIAL INTELLIGE NCE, AND UNLAWFUL ONLINE 14
CONDUCT OR PRACTICES . 15
(D) (1) THE REVENUES FROM T HE DATA BROKER GROSS INCOME TAX 16
SHALL BE DISTRIBUTED TO A SPECIAL FUND TO BE USED ONLY FOR THE PURPOSES 17
OF THE UNIT. 18
(2) THE FUND IS A CONTINU ING, NONLAPSING SPECIAL F UND THAT IS 19
NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 20
Article – Education 21
7–447.1. 22
(p) (2) There is a Coordinated Community Supports Partnership Fund. 23
(6) The Fund consists of: 24
(i) Money appropriated in the State budget to the Fund; 25
(ii) REVENUE DISTRIBUTED T O THE FUND UNDER § 2–4A–02 OF 26
THE TAX – GENERAL ARTICLE; 27
(III) Interest earnings; and 28
[(iii)] (IV) Any other money from any other source accepted for the 29
benefit of the Fund. 30
SENATE BILL 904 5
24–204. 1
(E) (1) THE REVENUES FROM THE DATA BROKER GROSS IN COME TAX 2
SHALL BE DISTRIBUTED TO A SPECIAL FUND , TO BE USED ONLY BY MARYLAND 3
PUBLIC TELEVISION TO PROVIDE DIGITAL LITERACY SUP PORT TO STUDENTS IN 4
KINDERGARTEN THROUGH 12TH GRADE. 5
(2) THE FUND IS A CONTINU ING, NONLAPSING SPECIAL F UND THAT IS 6
NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7
Article – State Finance and Procurement 8
3.5–309. 9
(a) There is an Information Technology Investment Fund. 10
(e) Except as provided in subsection (f) of this section, the Fund consists of: 11
(1) money appropriated in the State budget to the Fund; 12
(2) as approved by the Secretary, money received from: 13
(i) the sale, lease, or exchange of communication sites, 14
communication facilities, or communication frequencies for information technology 15
purposes; or 16
(ii) an information technology agreement involving resource 17
sharing; 18
(3) that portion of money earned from pay phone commissions to the extent 19
that the commission rates exceed those in effect in December 1993; 20
(4) money received and accepted as contributions, grants, or gifts as 21
authorized under subsection (c) of this section; 22
(5) general funds appropriated for major information technology 23
development projects of any unit of State government other than a public institution of 24
higher education that: 25
(i) are unencumbered and unexpended at the end of a fiscal year; 26
(ii) have been abandoned; or 27
(iii) have been withheld by the General Assembly or the Secretary; 28
6 SENATE BILL 904
(6) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–4A–02 OF THE 1
TAX – GENERAL ARTICLE; 2
(7) any investment earnings; and 3
[(7)] (8) any other money from any source accepted for the benefit of the 4
Fund. 5
Article – Tax – General 6
1–101. 7
(a) In this article the following words have the meanings indicated. 8
(F–1) “DATA BROKER GROSS INCOME TAX” MEANS THE TAX IMPOSE D UNDER 9
TITLE 7.3 OF THIS ARTICLE. 10
2–102. 11
(a) In addition to the duties set forth elsewhere in this article and in other articles 12
of the Code, the Comptroller shall administer the laws that relate to: 13
(1) the admissions and amusement tax; 14
(2) the boxing and wrestling tax; 15
(3) THE DATA BROKER GROS S INCOME TAX; 16
(4) the digital advertising gross revenues tax; 17
[(4)] (5) the income tax; 18
[(5)] (6) the Maryland estate tax; 19
[(6)] (7) the Maryland generation–skipping transfer tax; 20
[(7)] (8) the motor carrier tax; 21
[(8)] (9) the motor fuel tax; 22
[(9)] (10) the sales and use tax; and 23
[(10)] (11) the savings and loan association franchise tax. 24
SUBTITLE 4A. DATA BROKER GROSS INCOME TAX REVENUE DISTRIBUTION. 25 SENATE BILL 904 7
2–4A–01. 1
FROM THE DATA BROKER GROSS IN COME TAX REVENUE , THE COMPTROLLER 2
SHALL DISTRIBUTE THE AMOUNT NECESSARY TO ADMINISTER THE DATA BROKER 3
GROSS INCOME TAX LAWS TO AN ADMINISTR ATIVE COST ACCOUNT . 4
2–4A–02. 5
(A) AFTER MAKING THE DIST RIBUTION UNDER § 2–4A–01 OF THIS 6
SUBTITLE, OF THE REMAINING DAT A BROKER GROSS INCOM E TAX REVENUE THE 7
COMPTROLLER SHALL DIS TRIBUTE: 8
(1) THE GREATER OF 0.75% OR $2,500,000 TO THE SPECIAL FUND 9
ESTABLISHED UNDER § 13–204.1 OF THE COMMERCIAL LAW ARTICLE FOR THE USE 10
OF THE PRIVACY PROTECTION AND ENFORCEMENT UNIT IN THE DIVISION OF 11
CONSUMER PROTECTION OF THE OFFICE OF THE ATTORNEY GENERAL; 12
(2) THE GREATER OF 0.75% OR $2,500,000 TO THE INFORMATION 13
TECHNOLOGY INVESTMENT FUND ESTABLISHED UNDE R § 3.5–309 OF THE STATE 14
FINANCE AND PROCUREMENT ARTICLE FOR EXPEDITED PROJECTS RELATED TO 15
ARTIFICIAL INTELLIGE NCE; 16
(3) THE GREATER OF 0.75% OR $2,500,000 TO THE SPECIAL FUND 17
ESTABLISHED UNDER § 24–204 OF THE EDUCATION ARTICLE FOR THE USE O F 18
MARYLAND PUBLIC TELEVISION TO PROVIDE DIGITAL LITERACY SUPPORT TO 19
STUDENTS IN KINDERGA RTEN THROUGH 12TH GRADE; AND 20
(4) THE GREATER OF 35% OR $120,000,000 TO THE COORDINATED 21
COMMUNITY SUPPORTS PARTNERSHIP FUND ESTABLISHED UNDE R § 7–447.1 OF 22
THE EDUCATION ARTICLE. 23
(B) AFTER MAKING THE DIST RIBUTIONS REQUIRED UNDER § 2–4A–01 OF 24
THIS SUBTITLE AND SU BSECTION (A) OF THIS SECTION, THE COMPTROLLER SHALL 25
DISTRIBUTE THE REMAI NING DATA BROKER GRO SS INCOME TAX REVENU E TO THE 26
BLUEPRINT FOR MARYLAND’S FUTURE FUND ESTABLISHED UNDE R § 5–206 OF THE 27
EDUCATION ARTICLE. 28
TITLE 7.3. DATA BROKER REGISTRY AND GROSS INCOME TAX. 29
SUBTITLE 1. DEFINITIONS. 30
7.3–101. 31 8 SENATE BILL 904
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 1
INDICATED. 2
(B) “APPORTIONABLE INCOME ” MEANS GROSS INCOME O F A DATA BROKER 3
GENERATED FROM ENGAG ING IN DATA BROKERING , INCLUDING INCOME REC EIVED 4
FROM DATA BROKERING PERFORMED OUTSIDE TH E STATE IF THE INCOME W OULD 5
BE TAXABLE UNDER THI S TITLE IF RECEIVED FROM DATA BROKERING IN THE 6
STATE. 7
(C) (1) “BIOMETRIC INFORMATION ” MEANS A RECORD OF ON E OR MORE 8
MEASURABLE BIOLOGICA L OR BEHAVIORAL CHAR ACTERISTICS THAT CAN BE USED 9
ALONE OR IN COMBINAT ION WITH EACH OTHER OR WITH OTHER INFORM ATION FOR 10
AUTOMATED RECOGNITIO N OF A KNOWN OR UNKN OWN INDIVIDUAL . 11
(2) “BIOMETRIC INFORMATION ” INCLUDES: 12
(I) FINGERPRINTS ; 13
(II) RETINA AND IRIS PATT ERNS; 14
(III) VOICEPRINTS; 15
(IV) DNA SEQUENCE; 16
(V) FACIAL CHARACTERISTI CS; 17
(VI) GAIT; 18
(VII) HANDWRITING ; 19
(VIII) KEYSTROKE DYNAMICS ; AND 20
(IX) MOUSE MOVEMENTS . 21
(3) “BIOMETRIC INFORMATION ” DOES NOT INCLUDE: 22
(I) WRITING SAMPLES ; 23
(II) WRITTEN SIGNATURES ; 24
(III) HUMAN BIOLOGICAL SAM PLES USED FOR VALID SCIENTIFIC 25
TESTING OR SCREENING ; 26 SENATE BILL 904 9
(IV) DEMOGRAPHIC DATA ; 1
(V) TATTOO DESCRIPTIONS ; 2
(VI) PHYSICAL DESCRIPTION S, SUCH AS HEIGHT , WEIGHT, HAIR 3
COLOR, OR EYE COLOR; OR 4
(VII) DONATED ORGANS , TISSUES, OR PARTS, OR BLOOD OR 5
SERUM STORED ON BEHA LF OF RECIPIENTS OR POTENTIAL RECIPIENTS OF LIVING 6
OR CADAVERIC TRANSPL ANTS AND OBTAINED OR STORED BY A FEDERALL Y 7
DESIGNATED ORGAN PRO CUREMENT AGENCY . 8
(D) “BROKERED PERSONAL DAT A” MEANS ANY OF THE FOL LOWING 9
COMPUTERIZED DATA EL EMENTS ABOUT A RESID ENT INDIVIDUAL, IF CATEGORIZED 10
OR ORGANIZED FOR SAL E OR LICENSING TO AN OTHER ENTITY: 11
(1) THE RESIDENT INDIVID UAL’S NAME OR THE NAME O F A MEMBER 12
OF THE RESIDENT INDIVIDUAL ’S IMMEDIATE FAMILY O R HOUSEHOLD ; 13
(2) THE RESIDENT INDIVID UAL’S ADDRESS OR AN ADDR ESS FOR A 14
MEMBER OF THE RESIDE NT INDIVIDUAL’S IMMEDIATE FAMILY O R HOUSEHOLD ; 15
(3) THE RESIDENT INDIVID UAL’S DATE OF BIRTH OR PLACE OF BIRTH ; 16
(4) THE MAIDEN NAME OF THE R ESIDENT INDIVIDUAL ’S MOTHER; 17
(5) BIOMETRIC INFORMATIO N ABOUT THE RESIDENT INDIVIDUAL; 18
(6) PERSONAL DATA ABOUT THE RESIDENT INDIVID UAL; 19
(7) THE RESIDENT INDIVID UAL’S SOCIAL SECURITY NUMBER OR TH E 20
NUMBER OF ANY OTHER GOVERNMENT –ISSUED IDENTIFICATION FOR THE 21
RESIDENT INDIVIDUAL ; OR 22
(8) OTHER INFORMATION TH AT, ALONE OR IN COMBINAT ION WITH 23
OTHER INFORMATION TH AT IS SOLD OR LICENS ED, CAN REASONABLY BE 24
ASSOCIATED WITH THE RESIDENT INDIVIDUAL . 25
(E) (1) “BUSINESS ENTITY” MEANS: 26
(I) A RESIDENT INDIVIDUA L WHO REGULARLY ENGA GES IN 27
COMMERCIAL ACTIVITY FOR THE PURPOSE OF G ENERATING INCOME ; 28 10 SENATE BILL 904
(II) A CORPORATION OR NON PROFIT CORPORATION , LIMITED 1
LIABILITY COMPANY , PARTNERSHIP OR LIMIT ED LIABILITY PARTNER SHIP, 2
BUSINESS TRUST , JOINT VEN TURE, OR ANY OTHER FORM OF BUSINE SS 3
ORGANIZATION THE CON STITUENT PARTS OF WH ICH SHARE A COMMON E CONOMIC 4
INTEREST; OR 5
(III) AN INDIVIDUAL THAT C ONTROLS, IS CONTROLLED BY , OR IS 6
UNDER COMMON CONTROL WITH A PERSON DESCRI BED IN ITEM (I) OR (II) OF THIS 7
PARAGRAPH. 8
(2) “BUSINESS ENTITY” DOES NOT INCLUDE THE STATE OR A UNIT OF 9
THE STATE, A LOCAL GOVERNMENT , OR A BUSINESS ENTITY OR OTHER PERSON 10
DURING A PERIOD IN W HICH THE BUSINESS EN TITY OR PERSON IS AC TING SOLELY 11
ON BEHALF OF AND AT THE DIRECTION OF THE STATE, A UNIT OF THE STATE, OR A 12
LOCAL GOVERNMENT . 13
(F) (1) “DATA BROKER” MEANS ANY BUSINESS E NTITY THAT ENGAGES I N 14
DATA BROKERING . 15
(2) “DATA BROKER” DOES NOT INCLUDE : 16
(I) A CONSUMER REPORTING AGENCY, AS DEFINED IN 15 17
U.S.C. § 1681A, A PERSON THAT FURNISHES INFORMATIO N TO A CONSUMER 18
REPORTING AGENCY , AS PROVIDED IN 15 U.S.C. § 1681S–2, OR A USER OF A 19
CONSUMER REPORT , AS DEFINED IN 15 U.S.C. § 1681A, TO THE EXTENT THAT T HE 20
CONSUMER REPORTING A GENCY, THE PERSON THAT FURN ISHES INFORMATION TO 21
A CONSUMER REPORTING AGENCY , OR THE USER OF A CON SUMER REPORT ENGAGES 22
IN ACTIVITIES THAT A RE SUBJECT TO REGULA TION UNDER THE FEDER AL FAIR 23
CREDIT REPORTING ACT, 15 U.S.C. § 1681; AND 24
(II) A FINANCIAL INSTITUT ION, AN AFFILIATE , OR A 25
NONAFFILIATED THIRD PARTY, AS THOSE TERMS ARE D EFINED IN 15 U.S.C. § 6809, 26
TO THE EXTENT THAT T HE FINANCIAL INSTITU TION, AFFILIATE, OR NONAFFILIATED 27
THIRD PARTY IS SUBJE CT TO REGULATION UND ER TITLE V OF THE 28
GRAMM–LEACH–BLILEY ACT, 15 U.S.C. §§ 6801 THROUGH 6809 AND REGULATIONS 29
ADOPTED UNDER TITLE V OF THE GRAMM–LEACH–BLILEY ACT. 30
(G) “DATA BROKERING ” MEANS THE ACT OF COL LECTING, AGGREGATING , 31
ANALYZING, BUYING, SELLING, AND SHARING BROKERED PERSONAL DATA . 32
(H) “DE–IDENTIFIED DATA ” MEANS DATA THAT CANN OT REASONABLY BE 33
USED TO INFER INFORM ATION ABOUT OR OTHER WISE BE LINKED TO AN IDENTIFIED 34 SENATE BILL 904 11
OR IDENTIFIABLE INDI VIDUAL OR A DEVICE L INKED TO THAT INDIVIDUAL, 1
PROVIDED THAT THE PE RSON IN CONTROL OF T HE DATA: 2
(1) TAKES REASONABLE MEASURES TO ENSURE THAT THE D ATA 3
CANNOT BE ASSOCIATED WITH A NATURAL PERSO N; 4
(2) PUBLICLY COMMITS TO MAINTAIN AND USE THE DATA ONLY IN A 5
DE–IDENTIFIED FASHION A ND NOT ATTEMPT TO RE –IDENTIFY THE DATA ; AND 6
(3) CONTRACTUALLY OBLIGA TES ANY RECIPIENTS OF THE 7
INFORMATION TO COMPL Y WITH ALL PROVISION S OF THIS SUBSECTION . 8
(I) “GROSS INCOME ” MEANS THE VALUE PROC EEDING OR ACCRUING B Y 9
REASON OF COLLECTING, AGGREGATING , ANALYZING, BUYING, SELLING, AND 10
SHARING BROKERED PER SONAL DATA WITHOUT ANY DED UCTION ON ACCOUNT OF 11
THE COST OF TANGIBLE PROPERTY SOLD , THE COST OF MATERIAL S USED, LABOR 12
COSTS, INTEREST, DISCOUNT, DELIVERY COSTS , TAXES, OR ANY OTHER EXPENSE 13
PAID OR ACCRUED AND WITHOUT ANY DEDUCTIO N ON ACCOUNT OF LOSS ES. 14
(J) (1) “PERSONAL DATA ” MEANS ANY INFORMATIO N THAT IS LINKED OR 15
REASONABLY LINKED TO AN IDENTIFIED OR IDE NTIFIABLE NATURAL PE RSON. 16
(2) “PERSONAL DATA ” DOES NOT INCLUDE DE–IDENTIFIED DATA OR 17
PUBLICLY AVAILABLE I NFORMATION . 18
(K) “RESIDENT INDIVIDUAL ” MEANS A PERSON WHO R ESIDES IN THE 19
STATE. 20
SUBTITLE 2. DATA BROKER REGISTRY. 21
7.3–201. 22
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , A DATA 23
BROKER SHALL REGISTE R WITH THE COMPTROLLER AS PROVID ED IN § 7.3–202 OF 24
THIS SUBTITLE. 25
(B) A DATA BROKER IS NOT R EQUIRED TO REGISTER WITH THE 26
COMPTROLLER IF THE BROKERED PERS ONAL DATA INVOLVES A NY OF THE 27
FOLLOWING: 28
(1) PROVIDING PUBLICLY A VAILABLE INFORMATION THAT IS 29
RELATED TO A RESIDEN T INDIVIDUAL’S BUSINESS OR PROFES SION; 30
12 SENATE BILL 904
(2) PROVIDING PUBLICLY AVAILABLE I NFORMATION AS PART O F A 1
SERVICE THAT PROVIDE S ALERTS FOR HEALTH OR SAFETY PURPOSES ; 2
(3) PROVIDING DIRECTORY ASSISTANCE OR DIRECT ORY 3
INFORMATION SERVICES AS OR ON BEHALF OF A TELECOMMUNICATIONS C ARRIER; 4
OR 5
(4) SELLING THE ASSETS O F A BUSINESS ENTITY OR A PART OF A 6
BUSINESS ENTITY A SI NGLE TIME OR ONLY OC CASIONALLY AS PART O F A TRANSFER 7
OF CONTROL OVER THE ASSETS THAT IS NOT P ART OF THE ORDINARY CONDUCT OF 8
THE BUSINESS ENTITY OR A PART OF THE BUS INESS ENTITY. 9
7.3–202. 10
(A) (1) ON OR BEFORE JANUARY 31 EACH YEAR, FOLLOWING A YEAR IN 11
WHICH A BUSINESS ENT ITY MEETS THE DEFINI TION OF A DATA BROKE R, A DATA 12
BROKER SHALL : 13
(I) SUBMIT ON A FORM AND IN A FORMAT THE COMPTROLLER 14
SPECIFIES: 15
1. THE NAME OF THE DATA BROKER; 16
2. THE STREET ADDRESS AND TELE PHONE NUMBER OF 17
THE DATA BROKER ; AND 18
3. THE DATA BROKER ’S PRIMARY WEBSITE AN D E–MAIL 19
ADDRESS; 20
(II) PAY A FEE IN AN AMOU NT THAT THE COMPTROLLER 21
DETERMINES ; AND 22
(III) INCLUDE WITH THE REG ISTRATION FORM A DEC LARATION 23
IN WHICH THE DATA BROKER : 24
1. STATES WHETHER A RES IDENT INDIVIDUAL ’S 25
PRECISE GEOLOCATION INFORMATION IS A PAR T OF THE DATA BROKER ’S DATA 26
BROKERING ACTIVITY ; 27
2. STATES WHETHER RESID ENT INDIVIDUALS ’ 28
CONSUMER HEALTH DATA IS A PART OF THE DATA BROKER ’S DATA BROKERING 29
ACTIVITY; 30
SENATE BILL 904 13
3. STATES WHETHER RESID ENT INDIVIDUALS MAY OPT 1
OUT OF ALL OR A PORT ION OF THE DATA BROK ER’S USE OF THEIR BROKE RED 2
PERSONAL DATA ; 3
4. A. IDENTIFIES WHICH OF THE DATA BROKER ’S 4
ACTIVITIES A RESIDEN T INDIVIDUAL MAY OPT OUT OF; AND 5
B. IDENTIFIES WHICH POR TION OF THE RESIDENT 6
INDIVIDUAL’S BROKERED PERSONAL DATA THE RESIDENT IN DIVIDUAL MAY OPT 7
OUT FROM PROVIDING OR PERMITT ING THE DATA BROKER TO USE; 8
5. DESCRIBES THE METHOD BY WHICH A RESIDENT 9
INDIVIDUAL MAY EXERC ISE THE CHOICES DESC RIBED IN ITEMS 3 AND 4 OF THIS 10
ITEM; AND 11
6. STATES WHETHER A RES IDENT INDIVIDUAL MAY 12
AUTHORIZE AN INDIVID UAL TO EXERCISE THE OPTIONS DESCRIBED IN ITEMS 3 AND 13
4 OF THIS ITEM ON THE RESIDENT INDI VIDUAL’S BEHALF AND IF SO , THE 14
APPROPRIATE PROCESS FOR THE AUTHORIZATIO N. 15
(2) (I) THE COMPTROLLER SHALL EST ABLISH THE FEE REQUI RED 16
UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION I N AN AMOUNT THAT IS SUFFICIENT 17
TO PAY THE COSTS OF ADMINISTERING THE REGI STRATION PROGRAM EST ABLISHED 18
UNDER THIS SUBTITLE . 19
(II) THE FEES COLLECTED UN DER THIS SUBSECTION SHALL BE 20
DEPOSITED IN THE GENERAL FUND. 21
(B) (1) IF A DATA BROKER COMP LIES WITH THE REQUIR EMENTS OF THIS 22
SECTION, THE COMPTROLLER SHALL APPROVE THE REGISTRA TION. 23
(2) A REGISTRATION UNDER T HIS SECTION IS VALID UNTIL 24
DECEMBER 31 OF THE YEAR IN WHICH THE COMPTROLLER APPROVES THE 25
REGISTRATION . 26
7.3–203. 27
(A) THE COMPTROLLER SHALL MAK E THE INFORMATION TH AT BUSINESS 28
ENTITIES SUBMIT FOR REGISTRATION UNDER THIS SUBTITLE PUBLICLY AV AILABLE 29
ON THE COMPTROLLER ’S WEBSITE. 30
(B) ON OR BEFORE DECEMBER 31, 2026, AND EACH DECEMBER 31 31
THEREAFTER , THE COMPTROLLER SHALL REP ORT TO THE GOVERNOR AND , IN 32 14 SENATE BILL 904
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE 1
GENERAL ASSEMBLY ON THE FOLLO WING: 2
(1) HOW MANY BUSINESS EN TITIES REGISTERED WI TH THE 3
COMPTROLLER AS DATA B ROKERS IN THAT YEAR ; 4
(2) THE FEE THE COMPTROLLER CHARGED F OR REGISTRATION PER 5
DATA BROKER AND THE TOTAL REVENUE COLLEC TED; 6
(3) HOW MANY BUSINESS EN TITIES WERE FINED FO R 7
NONCOMPLIANCE WITH T HIS SUBTITLE; AND 8
(4) ANY OTHER INFORMATIO N THE COMPTROLLER DETERMINE S IS 9
RELEVANT. 10
SUBTITLE 3. DATA BROKER GROSS INCOME TAX. 11
7.3–301. 12
A TAX IS IMPOSED ON TH E ANNUAL GROSS INCOME OF A DATA BROKER . 13
7.3–302. 14
THE DATA BROKERING TA X RATE IS 6% OF THE GROSS INCOME OF A DATA 15
BROKER APPORTIONED UNDER § 7.3–303 OF THIS SUBTITLE. 16
7.3–303. 17
(A) THE APPORTIONABLE INC OME OF A DATA BROKER IS APPORTIONED TO 18
THE STATE BY MULTIPLYING ITS APPORTIONABLE IN COME BY THE RECEIPTS 19
FACTOR DETERMINED UN DER SUBSECTION (B) OF THIS SUBSECTION . 20
(B) (1) THE NUMERATOR OF THE RECEIPTS FACTOR IS T HE TOTAL GROSS 21
INCOME OF THE DATA B ROKER ATTRIBUTABLE T O THE STATE DURING THE TAX ABLE 22
YEAR FROM ENGAGING IN DAT A BROKERING DURING THE TAXABLE Y EAR. 23
(2) THE DENOMINATOR OF TH E RECEIPTS FACTOR IS THE T OTAL 24
GROSS INCOME OF THE DATA BROKER FROM ENG AGING IN DATA BROKER ING 25
EVERYWHERE IN THE WO RLD DURING THE TAXAB LE YEAR. 26
(C) (1) (I) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 27
SUBSECTION AND SUBJECT TO SUBPA RAGRAPH (II) OF THIS PARAGRAPH , FOR 28
PURPOSES OF COMPUTIN G THE RECEIPTS FACTO R UNDER SUBSECTION (B) OF THIS 29 SENATE BILL 904 15
SECTION, GROSS INCOME OF A DA TA BROKER GENERATING SALES OR EXCHANGE 1
FOR CONSIDERATION OF PERSONAL DATA IS ATT RIBUTABLE TO THE STATE IN THE 2
RATIO, EXPRESSED AS A PERCENTAGE , THAT THE NUMBER OF MARYLAND 3
ADDRESSES IN THE PER SONAL DATA BEARS TO ALL ADDRESSES IN THE PERSONAL 4
DATA. 5
(II) ONLY PERSONAL DATA US ED TO GENERATE THE G ROSS 6
INCOME OF THE BUSINE SS TO BE ATTRIBUTED UNDER THIS SUBSECTIO N IS 7
APPLICABLE IN CALCUL ATING THE RATIO DESC RIBED UNDER SUBPARAG RAPH (I) 8
OF THIS PARAGRAPH . 9
(2) IF THE DATA BROKER IS UNABLE TO ATTRIBUTE GROSS I NCOME 10
UNDER PARAGRAPH (1) OF THIS SUBSECTION , GROSS INCOME OF THE DATA BROKER 11
GENERATED FROM MAKIN G SALES, OR EXCHANGING FOR CO NSIDERATION, OF 12
PERSONAL DATA IS ATTRIBUTED TO THE STATE: 13
(I) IN THE RATIO , EXPRESSED AS A PERCE NTAGE, OF THE 14
POPULATION OF TH E STATE TO ALL THE STATES OF THE UNITED STATES IN THE 15
DATA BROKERS ’ MARKET; OR 16
(II) BY ANY OTHER REASONA BLE METHODS OF ATTRI BUTION 17
ALLOWED BY THE COMPTROLLER . 18
(D) (1) (I) A DATA BROKER MAY CALC ULATE THE RECEIPTS F ACTOR 19
FOR THE CURRENT TAX ABLE YEAR BASED ON THE MO ST RECENT CALENDAR Y EAR 20
FOR WHICH INFORMATIO N IS AVAILABLE FOR T HE FULL CALENDAR YEA R. 21
(II) IF A DATA BROKER DOES NOT CALCULATE THE RE CEIPTS 22
FACTOR FOR THE CURRENT TAX ABLE YEAR BASED ON PREVIO US CALENDAR YEAR 23
INFORMATION , THE DATA BROKER SHAL L USE THE CURRENT YE AR INFORMATION 24
TO CALCULATE THE REC EIPTS FACTOR FOR THE CURRENT TAX ABLE YEAR. 25
(2) A DATA BROKER SHALL CO RRECT THE REPORTING FOR THE 26
CURRENT TAX ABLE YEAR WHEN COMP LETE INFORMATION IS AVAILABLE TO 27
CALCULATE THE RECEIP TS FACTOR FOR THAT Y EAR, BUT NOT LATER THAN 28
OCTOBER 31 OF THE FOLLOWING TAX ABLE YEAR. 29
SUBTITLE 4. RETURNS. 30
7.3–401. 31
16 SENATE BILL 904
(A) EACH DATA BROKER THAT , IN A CALENDAR YEAR , HAS GROSS INCOME 1
DERIVED FROM DATA BROKERING SHALL COMP LETE, UNDER OATH , AND FILE WITH 2
THE COMPTROLLER A RETURN ON OR BEFORE APRIL 15 THE NEXT YEAR . 3
(B) A PERSON REQUIRED TO F ILE A RETURN UNDER T HIS SECTION SHALL 4
FILE WITH THE RETURN AN ATTACHMENT THAT STATES ANY INFO RMATION THAT 5
THE COMPTROLLER REQUIRES . 6
7.3–402. 7
A PERSON REQUIRED TO F ILE A RETURN UNDER § 7.3–401 OF THIS SUBTITLE 8
SHALL MAINTAIN RECOR DS OF DATA BROKERING AND THE BASIS FOR TH E 9
CALCULATION OF THE D ATA BROKERING GROSS INCOME TAX OWED . 10
SUBTITLE 5. TAX PAYMENT. 11
7.3–501. 12
EACH PERSON REQUIRED TO FILE A RETURN UND ER § 7.3–401 OF THIS TITLE 13
SHALL PAY THE DATA B ROKER GROSS INCOME T AX WITH THE RETURN T HAT COVERS 14
THE PERIOD FOR WHICH THE TAX IS DUE. 15
13–201. 16
In this subtitle, “tax information” means: 17
(4) any information contained in: 18
(i) an admissions and amusement tax return; 19
(ii) an alcoholic beverage tax return; 20
(iii) a bay restoration fee return; 21
(iv) a boxing and wrestling tax return; 22
(v) A DATA BROKER GROSS INCOME TAX RETURN ; 23
(VI) a digital advertising gross revenues tax return; 24
[(vi)] (VII) an E–9–1–1 fee return; 25
[(vii)] (VIII) a financial institution franchise tax return; 26
[(viii)] (IX) an inheritance tax return; 27 SENATE BILL 904 17
[(ix)] (X) a Maryland estate tax return; 1
[(x)] (XI) a motor carrier tax return; 2
[(xi)] (XII) a motor fuel tax return; 3
[(xii)] (XIII) an other tobacco products tax return; 4
[(xiii)] (XIV) a public service company franchise tax return; 5
[(xiv)] (XV) a sales and use tax return; 6
[(xv)] (XVI) a savings and loan association franchise tax return; 7
[(xvi)] (XVII) a tire recycling fee return; 8
[(xvii)] (XVIII) a tobacco tax return; or 9
[(xviii)] (XIX) a transportation services assessment return. 10
13–402. 11
(a) If a notice and demand for a return is made under § 13–303 of this title and 12
the person or governmental unit fails to file the return, the tax collector shall: 13
(5) for public service company franchise tax: 14
(i) estimate gross receipts from the best information in the 15
possession of the tax collector; and 16
(ii) assess the tax due on the estimated gross receipts; [and] 17
(6) for digital advertising gross revenues tax: 18
(i) estimate gross revenues from the best information in possession 19
of the tax collector; and 20
(ii) assess the tax due on the estimated assessable base; AND 21
(7) FOR DATA BROKER GROS S INCOME TAX: 22
(I) ESTIMATE THE GROSS I NCOME FROM THE BEST 23
INFORMATION IN POSSE SSION OF THE TAX COL LECTOR; AND 24
18 SENATE BILL 904
(II) ASSESS THE TAX DUE O N THE ESTIMATED ASSE SSABLE 1
BASE. 2
13–508. 3
(a) Within 30 days after the date on which a notice of assessment of the 4
admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, DATA 5
BROKER GROSS INCOME TAX, income tax, motor carrier tax, motor fuel tax, public service 6
company franchise tax, financial institution franchise tax, sales and use tax, or tobacco tax 7
is mailed, a person or governmental unit against which the assessment is made may submit 8
to the tax collector: 9
(1) an application for revision of the assessment; or 10
(2) except for the public service company franchise tax, if the assessment 11
is paid, a claim for refund. 12
(b) If a person or governmental unit fails to submit an application for revision or 13
claim for refund within the time allowed in subsection (a) of this section, the assessment 14
becomes final. 15
(c) The Comptroller or an employee of the Comptroller’s office expressly 16
designated by the Comptroller promptly: 17
(1) (i) shall hold an informal hearing on a person’s or governmental 18
unit’s admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 19
DATA BROKER GROSS IN COME TAX, income tax, motor carrier tax, motor fuel tax, sales 20
and use tax, or tobacco tax application for revision or claim for refund under subsection (a) 21
of this section; and 22
(ii) after the hearing: 23
1. shall act on the application for revision; and 24
2. may assess any additional tax, penalty, and interest due; 25
and 26
(2) shall mail to the person or governmental unit a notice of final 27
determination. 28
13–509. 29
(a) Notwithstanding a person’s failure to file a timely application for revision or 30
claim for refund of an assessment of the admissions and amusement tax, alcoholic beverage 31
tax, boxing and wrestling tax, DATA BROKER GROSS IN COME TAX, income tax, motor 32
carrier tax, motor fuel tax, sales and use tax, or tobacco tax under § 13–508(a) of this 33 SENATE BILL 904 19
subtitle, the Comptroller or the Comptroller’s designee may issue an order decreasing or 1
abating an assessment to correct an erroneous assessment. 2
(b) If action is taken under subsection (a) of this section, the order shall state 3
clearly the reasons for decreasing or abating the assessment. 4
(c) Any order issued by the Comptroller under subsection (a) of this section shall 5
be final and not subject to appeal. 6
(d) The Comptroller’s refusal to enter an order under subsection (a) of this section 7
shall be final and not subject to appeal. 8
13–1001. 9
(H) A PERSON WHO IS REQUIR ED TO FILE A DATA BR OKER GROSS INCOME 10
TAX RETURN AND WHO W ILLFULLY FAILS TO FI LE THE RETURN AS REQ UIRED UNDER 11
TITLE 7.3 OF THIS ARTICLE IS G UILTY OF A MISDEMEAN OR AND ON CONVICTION IS 12
SUBJECT TO A FINE NO T EXCEEDING $5,000 OR IMPRISONMENT NOT EXCEEDING 5 13
YEARS OR BOTH . 14
13–1002. 15
(b) A person, including an officer of a corporation, who willfully files A FALSE 16
DATA BROKER GROSS IN COME TAX RETURN , a false digital advertising gross revenues 17
tax return, a false financial institution franchise tax return, a false public service company 18
franchise tax return, or a false income tax return with the intent to evade the payment of 19
tax due under this article is guilty of perjury and, on conviction, is subject to the penalty 20
for perjury. 21
(c) Subsections (a) and (b) of this section apply to the alcoholic beverage, DATA 22
BROKER GROSS INCOME , digital advertising gross revenues, financial institution 23
franchise, public service company franchise, and income taxes. 24
13–1101. 25
(b) An assessment of digital advertising gross revenues tax, financial institution 26
franchise tax, public service company franchise tax, income tax, or estate tax may be made 27
at any time if: 28
(1) a false return is filed with the intent to evade the tax; 29
(2) a willful attempt is made to evade the tax; 30
(3) a return is not filed as required under Title 7, TITLE 7.3, Title 7.5, Title 31
8, or Title 10 of this article; 32
20 SENATE BILL 904
(4) an amended estate tax return is not filed as required under Title 7 of 1
this article; 2
(5) an incomplete return is filed; or 3
(6) a report of federal adjustment is not filed within the period required 4
under § 13–409 of this title. 5
(c) If a report of federal adjustment is filed within the time required under § 6
13–409 of this title, the tax collector shall assess the DATA BROKER GROSS IN COME TAX, 7
digital advertising gross revenues tax, financial institution franchise tax, public service 8
company franchise tax, income tax, or estate tax within 1 year after the date on which the 9
tax collector receives the report. 10
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
as follows: 12
Article – Commercial Law 13
13–204.1. 14
(c) The Unit shall: 15
(1) Enforce: 16
(i) The Maryland Age–Appropriate Design Code Act; 17
(II) THE ONLINE DATA PRIVACY ACT; and 18
[(ii)] (III) Any State or federal laws involving technology, online 19
services and products, cybersecurity, artificial intelligence, and digital privacy; 20
SECTION 4. AND BE IT FURTHER ENACTED, That the data broker gross income 21
tax enacted under Section 2 of this Act shall be applicable to all taxable years beginning on 22
or after December 31, 2026. 23
SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall take 24
effect October 1, 2025, the effective date of Chapters 454 and 455 of the Acts of the General 25
Assembly of 2024. If the effective date of Chapters 454 and 455 is amended, Section 3 of 26
this Act shall take effect on the taking effect of Chapters 454 and 455. 27
SECTION 6. AND BE IT FURTHER ENACTED, That , except as provided in Section 28
5 of this Act, this Act shall take effect July 1, 2025. 29