Taxes - Whistleblower Reward Program - Alterations
SB766 expands Maryland’s Tax–General whistleblower reward program so that it applies not only to certain tax enforcement actions brought by the Comptroller, but also to covered tax enforcement actions brought by the Attorney General or a State agency. The bill broadens the kinds of taxes and disputes that can qualify, including taxes imposed under other articles of the Annotated Code of Maryland so long as the tax is collected by or paid to the State, and it preserves monetary awards for whistleblowers who provide original information leading to a final assessment. It also keeps the award range at 15% to 30% of taxes, penalties, and interest collected, while clarifying how multiple whistleblowers share awards and how later information must materially add to earlier reports to qualify.
The bill also creates a new coordination framework among the Comptroller, the Attorney General, and State agencies. If a whistleblower’s information concerns a tax matter that another State entity may enforce, the Comptroller must forward the information to that entity, and that entity must send back final-assessment information so the Comptroller can determine any whistleblower award. SB766 also updates anti-retaliation protections for individuals who report tax violations, assist in investigations, or refuse arbitration agreements covering claims under the subtitle, and it makes clear that the subtitle does not limit existing enforcement powers or create a general private right of action.
In terms of state law impact, SB766 amends multiple sections of the Tax–General Article and adds a new section defining when the whistleblower program applies. It extends eligibility and enforcement authority beyond the Comptroller to other State actors, adjusts award-determination procedures, and allows challenges to award decisions involving the Attorney General or State agencies through the administrative hearing process. The bill also applies retroactively to whistleblower submissions made on or after October 1, 2021, and includes special transitional rules for earlier whistleblowers whose information concerned taxes outside the Tax–General Article.
The overall sentiment reflected in the bill’s progress is strongly favorable. The Senate Budget and Taxation Committee reported the bill favorably with amendments, and the Senate adopted it. The recorded floor vote was unanimous, with 38 yeas and 0 nays on third reading, suggesting broad support for strengthening tax enforcement incentives and interagency coordination.
No major opposition is reflected in the available record, but the bill’s structure suggests the main policy issues are administrative rather than ideological: how far to expand whistleblower rewards, which agencies may trigger awards, and how to manage overlapping enforcement authority. The retroactive application and the extension of award eligibility to matters outside the Tax–General Article could also be points of concern for implementation, but no specific objections appear in the provided transcripts or vote history.
SB766 amends Maryland’s Tax–General Article to expand the Whistleblower Reward Program to cover certain tax enforcement actions brought by the Comptroller, Attorney General, or State agencies, including taxes imposed under other articles of the Code if they are collected by or paid to the State. It changes award administration, interagency information-sharing, retaliation protections, and appeal procedures, while preserving the existing 15% to 30% award range and applying the changes retroactively to qualifying whistleblower submissions dating back to October 1, 2021.
The bill appears to have enjoyed broad, bipartisan or at least noncontroversial support. It received a favorable committee report with amendments, was adopted by the Senate, and passed third reading unanimously 38-0. The available record shows no organized opposition or divided vote, indicating general agreement with expanding whistleblower incentives and enforcement tools.
The main potential points of contention are the expansion of the program beyond the Comptroller to the Attorney General and State agencies, the retroactive application to whistleblower submissions since 2021, and the extension of awards to tax matters arising under other articles of the Code. These changes raise administrative and fairness questions about which agency controls eligibility, how awards are coordinated, and how prior whistleblower claims are treated, but no specific opposing arguments are included in the provided materials.