HARRY HUGHES, Governor                                     2829

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 41, §
89A(a)(2) and (3).

The Commission to Revise the Annotated Code points out
to the General Assembly that subsection (a) of this
section is derived from the extremely unclear language
of former Art. 41, § 89A(a)(2). The revised language
represents the Commission's interpretation of the
former language. However, because the Commission had
difficulty in reaching that interpretation, the
General Assembly may wish to pay particular attention
to subsection (a) of this section to ensure that the
legislative intent behind that subsection is given
effect.

The General Assembly may also wish to consider whether
5% ownership of an entity that owns 5% of the
contracting business is actually intended to
constitute beneficial ownership under subsection
(a)(1) of this section, since 5% of 5% represents only
one-quarter of 1%. The 5% of 5% provision clearly
appeared in former Art. 41, § 89A(a)(2)(i), but the
Commission believes that its inclusion in the former
law may have been an error.

21-202. REQUIRED DISCLOSURE.

(A)  IN GENERAL.

(1)  IF, DURING A CALENDAR YEAR, A BUSINESS ENTERS
INTO CONTRACTS, LEASES, OR OTHER AGREEMENTS WITH THE STATE OR ITS
UNITS OR BOTH, UNDER WHICH THE BUSINESS IS TO RECEIVE FROM THE
STATE OR ITS UNITS OR BOTH A TOTAL OF $100,000 OR MORE, THE
BUSINESS SHALL FILE WITH THE SECRETARY OF STATE A LIST THAT
CONTAINS THE NAME AND ADDRESS OF:

(I)  ANY RESIDENT AGENT OF THE BUSINESS;

(II)  EACH OFFICER OF THE BUSINESS; AND

(III)  EACH PERSON WHO HAS BENEFICIAL OWNERSHIP
OF THE BUSINESS.

(2)  THE LIST SHALL BE FILED WITHIN 30 DAYS OF THE
DATE WHEN THE TOTAL VALUE OF THE CONTRACTS, LEASES, OR OTHER
AGREEMENTS ENTERED INTO DURING THE CALENDAR YEAR REACHES
$100,000.

(B)  DISCLOSURE WHEN OWNER UNKNOWN.

IF A PERSON WHO HAS BENEFICIAL OWNERSHIP IS UNKNOWN TO THE
BUSINESS, IT IS SUFFICIENT FOR THE BUSINESS TO DISCLOSE THE LEGAL
OWNERSHIP OR THE IDENTITY OF THE NOMINEE WHO HOLDS TITLE FOR THE
UNKNOWN PERSON.