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HB 1089

Criminal Offenses - As enacted, requires the department of mental health and substance abuse services to establish a mental health evaluation process for a community mental health center or qualified mental health professional to evaluate a defendant convicted of domestic assault, child abuse, aggravated child abuse, cruelty to animals, aggravated cruelty to animals; requires a court in which a person is convicted of any such offense to order the offender to undergo a mental health evaluation prior to the sentencing hearing. - Amends TCA Title 33; Title 39 and Title 40.

114th Regular Session (2025-2026) Introduced by Cameron Sexton

Imposes a 6% gross income tax on data brokering to fund a new Privacy Protection and Enforcement Unit (OAG) and related programs, via a public data-broker registry.

Pub. Ch. 511
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Bill Summary · HB 1089

Summary — HB 1089

Data Brokers — Registry and Gross Income Tax (Building Information Guardrails Data Act of 2025)

Purpose / Intent

HB 1089 creates a regulatory and revenue framework for commercial “data brokers.” It (1) establishes a Privacy Protection and Enforcement Unit in the Office of the Attorney General (OAG) to police digital privacy/AI/cyber issues, (2) requires certain data brokers to register with the Comptroller annually and make registry data public, and (3) imposes a 6% gross‑income tax on data brokering activity, with revenues allocated to several dedicated programs (including funding for the new OAG unit, IT/AI projects, K–12 digital literacy, community supports, and the state education fund).

Key provisions

  • Privacy Protection and Enforcement Unit (OAG)

    • New unit in the Division of Consumer Protection to enforce the Maryland Age‑Appropriate Design Code Act, the Online Data Privacy Act, and other state/federal laws related to technology, AI, cybersecurity, and digital privacy.
    • Duties: enforcement, consumer education, technical assistance and interagency cooperation.
    • A dedicated special fund (nonlapsing) will receive a set share of data broker tax revenues to support the unit.

  • Data broker registry (Comptroller)

    • Entities that qualify as data brokers must register annually with the Comptroller; registrations are publicly posted on the Comptroller’s website.
    • Required registration information includes broker name, address, and types of brokered data.
    • Exemptions: brokers when data is publicly available about a person’s business/profession; certain health/safety alert services; directory assistance for telecom carriers; occasional asset-sales; and entities regulated under FCRA or GLBA to the extent covered by those acts.
    • Comptroller establishes a registration fee sufficient to cover administration (fee deposited to general fund).
    • Annual reporting by Dec. 31 on registrations, fees, compliance, and enforcement actions.

  • Data Broker Gross Income Tax

    • A 6% tax on annual gross income derived from data brokering, apportioned to Maryland under an apportionment formula.
    • “Gross income” for the tax is defined as the value derived from collecting, aggregating, analyzing, buying, selling, or sharing brokered personal data, without deductions for costs or losses.
    • Tax returns (under oath) required by April 15 following the taxable year; filers must retain calculation records.

  • Revenue distribution (after Comptroller admin costs)

    • The greater of 0.75% or $2.5 million to the OAG special fund (Privacy Unit).
    • The greater of 0.75% or $2.5 million to the Information Technology Investment Fund for AI projects.
    • The greater of 0.75% or $2.5 million to a Maryland Public Television fund for K–12 digital literacy.
    • The greater of 35% or $120 million to the Coordinated Community Supports Partnership Fund.
    • Any remaining revenue to the Blueprint for Maryland’s Future Fund.

Enforcement & penalties

  • Willful failure to file the tax is a misdemeanor: up to $5,000 fine and/or up to 5 years imprisonment.
  • Comptroller may assess and collect tax; registration noncompliance may be subject to fines (reporting/enforcement provisions assigned to Comptroller).

Who is affected

  • Primary: businesses whose primary activity is data brokering as defined by the bill (collecting/aggregating/analyzing/buying/selling/sharing brokered personal data).
  • Secondary: state agencies (Comptroller, OAG), Maryland Public Television, community and education programs that receive revenue.

Fiscal impact and timing

  • Effective provisions generally take effect July 1, 2025; the data broker gross income tax applies to taxable years beginning after Dec. 31, 2026 (per fiscal analysis).
  • Estimated state revenue: under one set of assumptions, roughly $90 million in the first full year of tax collection and over $100 million by year four.
  • Estimated state costs: Comptroller administration increases (~$1.6M in FY2027, lower in later years) and OAG unit start‑up/operating costs (roughly $1.3M initial, rising in later years), per the fiscal note.

Notes

  • The bill includes detailed statutory edits (tax code renumbering and cross‑references) and excludes entities already covered by federal statutes (FCRA, GLBA) in defined contexts.
  • The measure also ties data tax revenues explicitly to consumer protection, digital literacy, AI investment, community supports, and education funding.

Compiled from official sources — confirm details with the bill’s official record.

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