Study to Evaluate Blockchain-Based Real Property Lease and Title Recordation and Verification

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*sb0168*

SENATE BILL 168
N1 (6lr1629)
ENROLLED BILL
— Budget and Taxation/Economic Matters —
Introduced by Senator Watson

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _______________ at _________________ _______ o’clock, ________M.

______________________________________________
President.

CHAPTER ______

AN ACT concerning 1

State Department of Assessments and Taxation – Study to Evaluate 2
Blockchain–Based Real Property Lease and Title Pilot Program – Establishment 3
Recordation and Verification 4

FOR the purpose of establishing the Blockchain–Based Real Property Title Pilot Program 5
in requiring the State Department of Assessments and Taxation , in coordination 6
with certain entities, to explore evaluate the use of blockchain technology for 7
securely recording and verifying real property ownership and leases and to assess its 8
potential for use by law enforcement and courts in resolving certain real property 9
disputes; and generally relating to the Blockchain–Based Real Property Title Pilot 10
Program study to evaluate blockchain–based real property lease and title recordation 11
and verification. 12

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That: 14
2 SENATE BILL 168

(a) (1) In this section the following words have the meanings indicated. 1

(2) “Blockchain” means a distributed ledger technology that provides a 2
secure, immutable, and transparent method of recording and storing data. 3

(3) “Digital title” means a cryptographically secured token or smart 4
contract that represents ownership of real property in the State. 5

(4) “Pilot jurisdictions” means not more than three counties in the State 6
selected by the State Department of Assessments and Taxation to implement the Pilot 7
Program. 8

(5) “Pilot Program” means the Blockchain–Based Real Property Title Pilot 9
Program. 10

(6) (3) “Squatting” means the unauthorized occupation of real property by an 11
individual who does not have legal title, a lease, or the right of possession. 12

(b) (1) There is a Blockchain–Based Real Property Title Pilot Program in the 13
The State Department of Assessments and Taxation , in coordination with the Maryland 14
Judiciary, the Maryland State Police, local law enforcement agencies, the Office of the 15
Attorney General, Maryland Legal Aid, the Public Justice Center, the Maryland Blockchain 16
Association, and third–party technology vendors, shall conduct a study to evaluate the use 17
of blockchain–based real property lease and title recordation and verification. 18

(2) (c) The purpose of the Pilot Program is to study shall: 19

(i) (1) explore evaluate the use of blockchain technology for securely 20
recording and verifying real property ownership and leases; and 21

(ii) (2) assess the potential for the use of blockchain technology to assist 22
law enforcement and courts in resolving real property disputes involving squatting. 23

(c) (1) The State Department of Assessments and Taxation shall administer 24
the Pilot Program. 25

(2) The Pilot Program shall begin on or before January 1, 2027. 26

(d) The State Department of Assessments and Taxation shall coordinate with the 27
Maryland Judiciary, the Maryland State Police, local law enforcement agencies, and the 28
Office of the Attorney General to: 29

(1) create a blockchain registry to record and verify digital titles; 30

(2) authorize property owners in pilot jurisdictions to opt in to having their 31
property titles mirrored on the blockchain as digital titles; 32
SENATE BILL 168 3

(3) provide a secure application programming interface for law 1
enforcement and courts to validate the status of digital titles in real time; 2

(4) test smart contract capabilities for title transfers and escrow functions; 3
and 4

(5) educate consumers, law enforcement, and courts on how to use the 5
blockchain registry. 6

(e) (1) Subject to paragraphs (2) a nd (3) of this subsection, the State 7
Department of Assessments and Taxation may contract with third –party technology 8
vendors to create the blockchain registry required under subsection (d) of this section. 9

(2) If the State Department of Assessments and Taxation contracts with a 10
technology vendor under paragraph (1) of this subsection, the Department shall use a 11
competitive procurement process in accordance with Division II of the State Finance and 12
Procurement Article. 13

(3) A technology vendor under this subsection shall: 14

(i) comply with cybersecurity standards; and 15

(ii) ensure data privacy and interoperability with existing State 16
systems. 17

(f) (d) On or before December 31, 2028 2026, the State Department of Assessments 18
and Taxation, in coordination with the Maryland Judiciary, the Maryland State Police, 19
local law enforcement agencies, and the Office of the Attorney General, Maryland Legal 20
Aid, the Public Justice Center, the Maryland Blockchain Association, and third –party 21
technology vendors, shall report the results of the Pilot Program and recommendations for 22
statewide adoption study to the Governor and, in accordance with § 2 –1257 of the State 23
Government Article, the General Assembly. 24

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October June 1, 2026. It shall remain effective for a period of 2 years and 9 months and, at 26
the end of June 30, 2029, this Act, with no further action required by the General Assembly, 27
shall be abrogated and of no further force and effect. 28