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*sb0766*
SENATE BILL 766
Q7 6lr2978
CF HB 1197
By: Senator Zucker
Introduced and read first time: February 6, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 4, 2026
CHAPTER ______
AN ACT concerning 1
Taxes – Whistleblower Reward Program – Expansion Alterations 2
FOR the purpose of altering and expanding the type of tax enforcement actions for which a 3
certain whistleblower may, under certain circumstances, receive a monetary award 4
for providing certain original information to the Comptroller under the 5
Whistleblower Reward Program; authorizing the Attorney General and State 6
agencies to bring a tax enforcement action under the Program; requiring the 7
Comptroller to provide to the Attorney General or a State agency certain original 8
information under certain circumstances; requiring the Attorney General and State 9
agencies to provide to the Comptroller information pertaining to a final assessment 10
that results from a whistleblower’s original information under certain 11
circumstances; applying the Act retroactively, subject to certain limitations; and 12
generally relating to the collection and enforcement of taxes in the State. 13
BY repealing and reenacting, with amendments, 14
Article – Tax – General 15
Section 1–401 through 1–403, 1–405(a), and 1–406 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2025 Supplement) 18
BY adding to 19
Article – Tax – General 20
Section 1–401.1 21
Annotated Code of Maryland 22
(2022 Replacement Volume and 2025 Supplement) 23
2 SENATE BILL 766
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Tax – General 3
1–401. 4
(a) In this subtitle the following words have the meanings indicated. 5
(b) “Covered enforcement action” means an enforcement action , INCLUDING A 6
JUDICIAL OR ADMINISTRATIVE ACTION, brought by the Comptroller, THE ATTORNEY 7
GENERAL, OR A STATE AGENCY under this OR ANY OTHER article that concerns: 8
(1) (i) the [State and county income ] tax liability of an individual 9
taxpayer or a couple that is married and files jointly whose federal adjusted gros s income 10
is at least $250,000; or 11
(ii) the [State and county] tax liability of a business, including those 12
persons who are jointly and severally liable for the [State] tax liability of a business under 13
this OR ANY OTHER article, the annual gross receipts or sales of which are at least 14
$2,000,000; and 15
(2) taxes in dispute exceeding $250,000. 16
(c) “Original information” means information that: 17
(1) is derived from the independent knowledge or analysis of a 18
whistleblower; 19
(2) is not known , AS APPLICABLE, to the Comptroller , THE ATTORNEY 20
GENERAL, OR A STATE AGENCY from any other source, unless the whistleblower is the 21
original source of the information; 22
(3) is not exclusively derived from an allegation made in a judicial or 23
administrative hearing, in a governmental report, hearing, audit, or investigation or from 24
the news media, unless the whistleblower is a source of the information; and 25
(4) is provided to the Comptroller in a sworn affidavit for the first time on 26
or after October 1, 2021. 27
[(d) “Related action” means any judicial or administrative action brought by a 28
State or local agency or entity based on the original information provided by a 29
whistleblower to the Comptroller under this subtitle.] 30
SENATE BILL 766 3
[(e)] (D) (1) “Whistleblower” means an individual or entity who provides, or 1
two or more individuals or entities acting jointly who provide, in accordance with this 2
subtitle, information to the Comptroller in a sworn affidavit relating to a violation of [State 3
tax] law THAT IMPOSES A TAX UNDER THIS OR ANY OTHER ARTICLE, including a rule 4
or regulation, that has occurred, is ongoing, or is about to occur. 5
(2) “Whistleblower” includes an individual who provides information to a 6
law enforcement agency before providing the information to the Comptroller. 7
1–401.1. 8
THIS SUBTITLE APPLIES ONLY TO A COVERED EN FORCEMENT ACTION FOR 9
WHICH THE COMPTROLLER, THE ATTORNEY GENERAL, OR A STATE AGENCY IS 10
AUTHORIZED TO BRING IN THE ENFORCEMENT OF A TAX THAT IS: 11
(1) IMPOSED UNDER THIS OR ANY OTHER ARTICLE; AND 12
(2) COLLECTED BY OR PAID TO THE STATE. 13
1–402. 14
(a) Subject to the limitations of this subtitle and except as provided in subsection 15
[(b)] (C) of this section, a whistleblower who voluntarily provides original information to 16
the Comptroller in a sworn affidavit that, because of the original information, results in a 17
final assessment in a covered enforcement action [, or a successful outcome against a 18
taxpayer in a related action,] shall be entitled to receive a monetary award of at least 15% 19
but not exceeding 30% of the taxes, penalties, and interest collected through the 20
enforcement action [or related action]. 21
(B) (1) IF A WHISTLEBLOWER PROVIDES ORIGINAL INFORMATION TO THE 22
COMPTROLLER INVOLVING A TAX FOR WHICH THE ATTORNEY GENERAL OR A STATE 23
AGENCY IS AUTHORIZED TO BRING A COVERED E NFORCEMENT ACTION , THE 24
COMPTROLLER SHALL PRO VIDE THE ORIGINAL IN FORMATION TO THE ATTORNEY 25
GENERAL OR THE STATE AGENCY, AS APPLICABLE. 26
(2) IF, BECAUSE OF A WHISTLEBLOWE R’S ORIGINAL INFORMATI ON, 27
THE ATTORNEY GENERAL OR A STATE AGENCY BRINGS A COVERED ENFORCEMENT 28
ACTION THAT RESULTS IN A FINAL ASSESSMENT, THE ATTORNEY GENERAL OR THE 29
STATE AGENCY SHALL PR OMPTLY PROVIDE TO THE COMPTROLLER INFORMATION 30
PERTAINING TO THE FINAL ASSESSMENT FOR PURPO SES OF MAKING A 31
DETERMINATION UNDER THIS SUBTITLE CONCERNING AN AWARD. 32
[(b)] (C) A whistleblower who provides information to the Comptroller in a 33
sworn affidavit that is related to original information previously r eported to the 34
Comptroller by another whistleblower who is eligible for an award under subsection (a) of 35
4 SENATE BILL 766
this section may not be entitled to an award unless the information provided by the 1
whistleblower materially adds to the information previously reported to the Comptroller. 2
[(c)] (D) If two or more whistleblowers are eligible for an award under subsection 3
(a) of this section arising out of the same covered enforcement action [or related action]: 4
(1) the total award may not exceed 30% of the taxes, penalties, and interest 5
collected through the enforcement action [or related action]; and 6
(2) the Comptroller shall determine the allocation of the award among the 7
eligible whistleblowers. 8
1–403. 9
(a) (1) The determination of ELIGIBILITY FOR AND the amount of an award 10
made in accordance with § 1–402 of this subtitle shall be: 11
(I) EXCEPT AS PROVIDED U NDER ITEM (II) OF THIS 12
PARAGRAPH, solely in the discretion of the Comptroller; OR 13
(II) WITH RESPECT TO ELIGIBILITY OF A WHISTLEBLOWER FOR 14
AN AWARD UNDER THIS SUBTITLE FOR PROVIDI NG ORIGINAL INFORMAT ION 15
REGARDING TAX LIABILITY UNDER ANOTHER ARTICLE, SOLELY IN THE DISCRETION 16
OF THE ATTORNEY GENERAL OR STATE AGENCY AUTHORIZED TO BRING A COVERED 17
ENFORCEMENT ACTION BASED ON THAT ORIGINAL INFORMATION. 18
(2) In determining the amount of the award, the Comptroller shall 19
consider: 20
(i) the significance of the information provided by the whistleblower 21
to the success of the covered enforcement action [or related action]; 22
(ii) the degree of assistance provided by the whistleblower and any 23
legal representative of the whistleblower in the covered enforcement action [or related 24
action]; 25
(iii) the amount of the unpaid taxes owed the State that may be 26
recovered under the covered enforcement action [or related action]; 27
(iv) the interest of the State in deterring violations of this AND ANY 28
OTHER article and promoting the reporting by whistleblowers of information relating to 29
those violations; and 30
(v) any additional relevant factors that the Comptroller may 31
establish by regulation. 32
SENATE BILL 766 5
(b) An award may not be provided to a whistleblower if the Comptroller 1
determines that the whistleblower: 2
(1) is, or was at the time that the whistleblower acquired the original 3
information provided to the Comptroller, a member, an officer, or an employee of a federal, 4
state, or local law enforcement agency responsible for the enforcement of tax –related 5
matters; 6
(2) was convicted of a criminal violation related to the covered enforcement 7
action [or related action ] for which the whistleblower otherwise could receive an award 8
under this section; 9
(3) could have been convicted of a criminal violation or held personally 10
liable for the tax liability related to the cove red enforcement action [or related action] for 11
which the whistleblower otherwise could receive an award under this section had the 12
whistleblower provided the original information before the expiration of any applicable 13
statute of limitations for prosecution or assessment of the whistleblower; or 14
(4) when submitting information under this subtitle, knowingly and 15
willfully made false, fictitious, or fraudulent statements to the Comptroller or used any 16
false writing or document knowing the writing or document contained a false, fictitious, or 17
fraudulent statement or entry. 18
(c) (1) A determination of the Comptroller , ATTORNEY GENERAL, OR 19
STATE AGENCY under this section may be challenged in accordance with Title 10, Subtitle 20
2 of the State Government Article if the challenge is brought within 45 days of the date of 21
the determination. 22
(2) In bringing a challenge in accordance with paragraph (1) of this 23
subsection, the whistleblower may not challenge: 24
(i) the decision to conduct or the method of conducti ng an 25
investigation arising from the original information provided by the whistleblower; 26
(ii) the amount of any unpaid taxes, penalties, or interest due to the 27
State arising from the original information provided by the whistleblower; 28
(iii) the res ult of a covered enforcement action [or related action ] 29
arising from the original information provided by the whistleblower; or 30
(iv) any settlement between the State and a person having a tax 31
liability that arises from the original information provided by the whistleblower. 32
(3) A HEARING UNDER THIS S UBSECTION SHALL BE C ONDUCTED BY 33
THE OFFICE OF ADMINISTRATIVE HEARINGS. 34
6 SENATE BILL 766
1–405. 1
(a) A current or prospective employer, contractor, or agent may not discharge, 2
demote, suspend, threaten, or harass, direct ly or indirectly, or in any other manner 3
discriminate or retaliate against an individual in the terms and conditions of employment 4
because of a lawful act done by that individual: 5
(1) in providing information to the Comptroller or a law enforcement 6
agency concerning a possible violation of [State tax] law THAT IMPOSES A TAX U NDER 7
THIS OR ANY OTHER AR TICLE, including a rule or regulation, that has occurred, is 8
ongoing, or is about to occur; 9
(2) in initiating, testifying in, or assisting in an investigation or [judicial or 10
administrative] COVERED ENFORCEMENT action [of the Comptroller or law enforcement 11
agency or a related action]; 12
(3) in reporting a violation of this [title] OR ANY OTHER ARTIC LE to 13
another governmental entity or to a director, supervisor, or compliance officer of the 14
employer, contractor, or agent; or 15
(4) in refusing or declining any agreement that would provide for 16
arbitration of claims arising under this OR ANY OTHER article. 17
1–406. 18
Nothing in this subtitle may be construed to: 19
(1) preempt, limit, or restrict the authority or discretion of the Comptroller 20
to investigate or enforce a violation of this OR ANY OTHER article; 21
(2) limit any power otherwise granted in th is article or other laws to the 22
Comptroller, Attorney General, State agencies, or local governments to investigate or 23
enforce possible violations of this OR ANY OTHER article; 24
(3) authorize a private right of action involving a violation of this OR ANY 25
OTHER article, except as specifically authorized in this OR ANOTHER article; 26
(4) prevent or prohibit a person from voluntarily disclosing any 27
information concerning a violation of this OR ANY OTHER article to any law enforcement 28
agency or self–regulatory organization; or 29
(5) preempt, limit, restrict, or otherwise affect the rights and rewards 30
provided to qui tam plaintiffs under the Maryland False Claims Act. 31
SECTION 2. AND BE IT FURTHER ENACTED, That: 32
SENATE BILL 766 7
(a) This Act shall be construed to apply retroactively and shall be applied to and 1
interpreted to affect the provision of original information by a whistleblower in a sworn 2
affidavit to the Comptroller on or after October 1, 2021. 3
(b) (1) This subsection applies to a whistleblower who voluntarily provided 4
original information to the Comptroller in a sworn affidavit before the effective date of this 5
Act that pertains to a tax that is imposed under an article of the Annotated Code of 6
Maryland other than the Tax – General Article. 7
(2) If the original information provided by the whistleblower results in a 8
successful outcome against a taxpayer in a covered enforcement action, as defined under § 9
1–401 of the Tax – General Article, as enacted by Section 1 of this Act, the whistleblower 10
may be enti tled to receive a monetary award in accordance with § 1 –402 of the Tax – 11
General Article, notwithstanding the thresholds under § 1 –401(b) of the Tax – General 12
Article. 13
(3) If the whistleblower was determined to be ineligible for a monetary 14
award under Title 1, Subtitle 4 of the Tax – General Article before the effective date of this 15
Act, the whistleblower may appeal the determination in accordance with § 1 –403(c) of the 16
Tax – General Article, as enacted by Section 1 of this Act, if the appeal is brought within 17
45 days after the effective date of this Act. 18
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2026. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.