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Comptroller seeks narrower authority to issue criminal citations for unlicensed traders
Summary
Comptroller Brooke Lierman asked the Economic Matters Committee to approve House Bill 577, a bill that would limit the people the Comptroller's Field Enforcement Bureau can criminally cite for operating without required trader or other specified business licenses.
Comptroller Brooke Lierman asked the Economic Matters Committee to give House Bill 577 a favorable report, saying the bill narrows the list of people her office may criminally cite for operating businesses without required licenses.
"I'm asking you to give my agency less authority," Lierman told the committee, arguing that under current law Comptroller field agents may issue criminal citations to "any person working at that store," including employees with no authority over licensing. She said that can lead to criminal citations against temporary employees who did not control licensing decisions and that the office seeks to restrict citation authority to parties who "actually have some authority over the business license."
Lierman and her panel described the field enforcement bureau's current practice of multiple visits and education before citation, and said the office issues roughly 100 criminal citations per month (about 1,200 per year). She described the penalty for a criminal citation as "up to $300 or up to 30 days in jail," as noted in testimony.
Lobbying groups raised concerns and asked for clarifying amendments. Grayson Wiggins of the Maryland Chamber of Commerce highlighted potential unintended effects for nonresident licenses and noted concerns with a provision that would require a business to designate a responsible in-state individual. Kaylee Locklear of the Maryland Retailers Alliance said the bill, as drafted, applies to a broader set of licenses than just traders' licenses and urged using the registered agent or resident agent process rather than adding a new requirement for a separate designated person.
Committee members repeatedly asked who would be criminally liable under the bill's language when resident agents are entities rather than individuals, and whether the bill would impose additional annual paperwork. Lierman said her office is willing to work with stakeholders and to craft sponsor amendments to limit the bill to businesses with a brick-and-mortar presence and to clarify who may be designated.
No committee vote was recorded during the hearing; Lierman urged a favorable report and said the office would provide sponsor amendments.
