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Bill

HB 1089

extending the authorization of the department of environmental services for the evaluation and mitigation of new community water system contamination risks.

2026 Regular Session Introduced by Tanya Donnelly

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.

Signed by Governor Ayotte 06/19/2026; Chapter 155; eff.08/18/2026
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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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