The Maryland General Assembly's Finance Committee convened on February 6, 2025, to discuss significant legislative measures aimed at enhancing oversight of High Impact Economic Development Activities (HIDAs) and regulating virtual currency kiosks.

The primary focus of the meeting was a proposed bill addressing concerns raised by a recent audit of the University of Maryland Global Campus (UMGC) regarding its use of HIDAs. These entities were established over a decade ago to allow universities to engage in economic development initiatives while bypassing certain state procurement laws. However, the audit revealed troubling findings, including the outsourcing of university departments and a lack of transparency regarding the value these HIDAs provide to the state. The audit committee expressed concerns about governance, job security for state employees, and the potential misuse of taxpayer funds.

In response, the proposed legislation aims to tighten oversight of HIDAs by requiring the University System of Maryland's Board of Regents to report on expenditures and the net benefits of these entities. The bill also seeks to eliminate exemptions from state procurement laws, ensuring that future contracts related to HIDAs undergo competitive bidding processes. This move is intended to protect taxpayer interests and ensure that HIDAs operate transparently and effectively.

Additionally, the committee discussed Senate Bill 305, which seeks to regulate virtual currency kiosks, often mistaken for traditional ATMs. Testimonies highlighted the risks associated with these kiosks, including scams that have resulted in significant financial losses for consumers. The bill proposes registration and oversight measures to protect consumers from fraud, particularly targeting vulnerable populations such as seniors.

Supporters of the bill, including representatives from the financial regulation office and consumer advocacy groups, emphasized the need for clear regulations to prevent scams and ensure consumer safety. They noted that similar regulations have been successfully implemented in other states, leading to a decrease in fraud incidents.

The committee's discussions underscored the importance of accountability and transparency in both HIDAs and virtual currency operations, with the aim of safeguarding taxpayer money and consumer interests. As the legislative process continues, further amendments and refinements to these bills are expected to address the concerns raised during the hearing.