Washington – The Computer & Communications Industry Association is testifying Tuesday and submitting comments to the Maryland General Assembly on HB 1089, Data Brokers – Registry and Gross Income Tax (Building Information Guardrails Data Act of 2025), warning that HB 1089’s definition of a “data broker” is overly broad, encompassing any business that collects personal data. The proposed regulations would apply to nearly every Maryland business with a website – regardless of whether its products and services are physical or digital.
HB 1089 also would impose a 6 percent tax on the gross income of a data broker. The proposed bill requires data brokers to register with the state and provide an annual report to the comptroller. The bill also establishes a Privacy Protection and Enforcement Unit within the Division of Consumer Protection in the Office of the Attorney General, aiming to safeguard individuals’ privacy and digital rights.
The following statement can be attributed to Megan Stokes, State Policy Director for CCIA:
“While we support efforts to protect consumer privacy, HB 1089 casts too wide a net, effectively labeling nearly every Maryland business with a website as a ‘data broker.’ This bill would not only impose burdensome regulations on businesses simply for collecting basic customer information like names and addresses but could also discourage out-of-state businesses from serving Maryland residents due to potential conflicts with federal law. We urge lawmakers to reconsider the bill’s broad scope and potential legal conflicts to avoid unintended harm to Maryland’s economy and its small businesses.”