SB 320
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 320 (Chair, Judicial Proceedings Committee)(By Request -
Departmental - Assessments and Taxation)
Judicial Proceedings Economic Matters
Foreign Corporations - Resident Agents - State Department of Assessments and
Taxation
This departmental bill authorizes a foreign corporation to certify that the State Department
of Assessments and Taxation (SDAT) is the corporation’s resident agent when registering
or qualifying with the department. The bill authorizes SDAT to act as a resident agent for
a foreign corporation that does business in the State without a resident agent or with a
resident agent who cannot be found or served with the exercise of reasonable diligence.
Fiscal Summary
State Effect: The bill does not materially affect State operations or finances.
Local Effect: None.
Small Business Effect: SDAT has determined that this bill has minimal or no impact on
small business (attached). The Department of Legislative Services concurs with this
assessment.
Analysis
Current Law: Currently, SDAT can be designated as a resident agent for all foreign
business entities except for foreign corporations. Foreign corporations currently have to
hire agents to receive documentation on their behalf. SDAT advises that the bill will allow
foreign corporations to designate SDAT as its resident agent for the purpose of conducting
business in the State and therefore create parity among different types of foreign business
entities.
 Additional Information
Prior Introductions: HB 891 of 2020 received a favorable report from the House
Economic Matters Committee and passed the House. The bill was referred to the
Senate Rules Committee, but no further action was taken.
Designated Cross File: None.
Information Source(s): State Department of Assessments and Taxation; Department of
Legislative Services
Fiscal Note History: First Reader - January 12, 2021
rh/hlb Third Reader - February 2, 2021
Analysis by: Michael Sanelli Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 320/ Page 2
 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Foreign Corporations - Resident Agents - State Department of
Assessments and Taxation
BILL NUMBER: SB 320
PREPARED BY: Jason Davidson, 410-767-5754, Jason.davidson2@maryland.gov
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
_X__ WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
The proposed legislation will not have an economic impact.
SB 320/ Page 3


Statutes affected:
Text - First - Foreign Corporations - Resident Agents - State Department of Assessments and Taxation: 7-202 Corporations and Associations, 7-203 Corporations and Associations, 7-205 Corporations and Associations
Text - Third - Foreign Corporations - Resident Agents - State Department of Assessments and Taxation: 7-202 Corporations and Associations, 7-203 Corporations and Associations, 7-205 Corporations and Associations