About Statutes

This page accesses the Code of Maryland (Statutes) and the Maryland Municipal Charters and Resolutions as compiled and maintained by the Department of Legislative Services.

The Code is arranged by and organized into “Articles” (e.g. Transportation Article), which are further subdivided into “titles”, “subtitles”, “sections”, “subsections”, “paragraphs”, subparagraphs”, etc.

Note that the “official” compilation of the laws (Chapters) enacted at each session of the General Assembly is published by the State as the “Laws of Maryland”, commonly referred to as the “Session Laws”. The Session Laws for each session are compiled chronologically by chapter number and serve as the source law from which the statutes accessed here are derived.

While the “Laws of Maryland” (Session Laws) constitute the official laws of the State, this Code and the annotated versions noted below are accepted as “evidence” of the law in all State courts and by all public offices and officials (See § 10-201 of the Courts & Judicial Proceedings Article). However, in the event of a conflict between the Code and the Session Laws, the Session Laws prevail.

Note: Annotated versions of the Code, published by LexisNexis and West, are available in book and online formats. These Annotated Codes include references to case law, related citations, and explanatory notations.

The Municipal Charters are updated each year by incorporating all charter resolutions received by the Department through May 31 of that year. Individual Municipal Resolutions are published to the General Assembly website as they are received by the Department.



Statute Text

ati345330.tmp
Article - Criminal Law
§8–404.  
(a)    (1)   In this section the following words have the meanings indicated.
(2)   “Compensation” includes payment based on a sale or distribution made to a person who:
(i)   is a participant in a plan or operation; or
(ii)   on making a payment, is entitled to become a participant.
(3)   “Consideration” does not include:
(i)   payment for purchase of goods or services furnished at cost for use in making sales to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme;
(ii)   time or effort spent in pursuit of sales or recruiting activities; or
(iii)   the right to receive a discount or rebate based on the purchase or acquisition of goods or services by a bona fide cooperative buying group or association.
(4)   “Promote” means to induce one or more persons to become a participant.
(5)   “Pyramid promotional scheme” means a plan or operation by which a participant gives consideration for the opportunity to receive compensation to be derived primarily from any person’s introduction of others into participation in the plan or operation rather than from the sale of goods, services, or other intangible property by the participant or others introduced into the plan or operation.
(b)   A person may not establish, operate, advertise, or promote a pyramid promotional scheme.
(c)   It is not a defense to a prosecution under this section that:
(1)   the plan or operation limits the number of persons who may participate or limits the eligibility of participants; or
(2)   on payment of anything of value by a participant, the participant obtains any other property in addition to the right to receive compensation.
(d)   A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding $10,000 or both.