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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0129*
HOUSE BILL 129
B1, B5 6lr1447
(PRE–FILED)
By: Delegates M. Morgan, Arikan, Chisholm, Fisher, Grammer, Nawrocki, and
Szeliga
Requested: October 29, 2025
Introduced and read first time: January 14, 2026
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Public Funding – Nonprofit Entities – Reporting 2
FOR the purpose of requiring a nonprofit entity that receives at least a certain amount of 3
its funding each year from certain sources to report certain information to the 4
Comptroller; and generally relating to reporting by nonprofit entities. 5
BY adding to 6
Article – State Finance and Procurement 7
Section 7–407 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – State Finance and Procurement 13
7–407. 14
(A) IN THIS SECTION , “NONPROFIT ENTITY ” MEANS A CORPORATION 15
INCORPORATED IN THE STATE, OR OTHERWISE QUALIFIED TO DO BUSINESS IN THE 16
STATE, THAT HAS BEEN DETERMINED BY THE INTERNAL REVENUE SERVICE TO BE 17
EXEMPT FROM TAXATION UNDER § 501(C) OF THE INTERNAL REVENUE CODE. 18
(B) (1) A NONPROFIT ENTITY SHA LL REPORT THE INFORMATION 19
REQUIRED UNDER PARAG RAPH (2) OF THIS SUBSECTION TO THE COMPTROLLER 20
FOR ANY CALENDAR YEAR THAT THE NONPROFIT ENTITY RECEIVES AT LEAST 50% 21
OF ITS FUNDING FROM: 22
2 HOUSE BILL 129
(I) A GRANT FROM THE STATE, A COUNTY, OR A MUNICIPALITY; 1
(II) THE STATE CAPITAL BUDGET; 2
(III) LOCAL IMPACT GRANTS PROVIDED UNDER § 9–1A–27 OF 3
THE STATE GOVERNMENT ARTICLE; OR 4
(IV) A CHARGE FOR THE USE OF A PROJECT THAT RE CEIVED 5
FUNDING FROM A SOURC E LISTED UNDER ITEMS (I) THROUGH (III) OF THIS 6
PARAGRAPH. 7
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 8
SUBSECTION SHALL INCLUDE: 9
(I) THE AMOUNT OF FUNDIN G THE NONPROFIT ENTI TY 10
RECEIVED; 11
(II) A DESCRIPTION OF THE USE OF THE FUNDING; AND 12
(III) ANY OTHER INFORMATION THE COMPTROLLER REQUIRES. 13
(C) ON OR BEFORE JANUARY 31 EACH YEAR, THE COMPTROLLER SHALL 14
SUMMARIZE THE INFORM ATION REPORTED UNDER SUBSECTION (B) OF THIS 15
SECTION FOR THE PREVIOUS CAL ENDAR YEAR AND REPORT TO THE GENERAL 16
ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, 17
ON THE INFORMATION THE COMPTROLLER RECEIVED. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 19
1, 2026. 20