Maryland 2022 2022 Regular Session

Maryland House Bill HB721 Introduced / Bill

Filed 02/04/2022

                     
 
EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. 
        [Brackets] indicate matter deleted from existing law. 
          *hb0721*  
  
HOUSE BILL 721 
G1   	2lr1869 
HB 576/21 – W&M     
By: Delegate Hornberger 
Introduced and read first time: February 3, 2022 
Assigned to: Ways and Means 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
Election Law – Political Clubs 2 
 
FOR the purpose of requiring a political club to be established as a political committee and 3 
to file a statement of organization and, subject to a certain exception, campaign 4 
finance reports; applying to political clubs the prohibition on paying a person other 5 
than a campaign finance entity to defray the costs of a campaign finance entity; 6 
providing that a political club in existence before a certain date is not required to file 7 
any campaign finance reports under this Act for any period before a certain date and 8 
shall file a campaign finance report covering a certain period; and generally relating 9 
to political clubs. 10 
 
BY repealing and reenacting, without amendments, 11 
 Article – Election Law 12 
Section 1–101(a), (h), and (gg) 13 
 Annotated Code of Maryland 14 
 (2017 Replacement Volume and 2021 Supplement) 15 
 
BY adding to 16 
 Article – Election Law 17 
Section 1–101(ff–1) 18 
 Annotated Code of Maryland 19 
 (2017 Replacement Volume and 2021 Supplement) 20 
 
BY repealing and reenacting, with amendments, 21 
 Article – Election Law 22 
Section 1–101(ss), 13–207, 13–208, 13–304(a)(1), 13–305, and 13–602(a)(4) 23 
 Annotated Code of Maryland 24 
 (2017 Replacement Volume and 2021 Supplement) 25 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26 
That the Laws of Maryland read as follows: 27  2 	HOUSE BILL 721  
 
 
 
Article – Election Law 1 
 
1–101. 2 
 
 (a) In this article the following words have the meanings indicated unless a 3 
different meaning is clearly intended from the context. 4 
 
 (h) “Campaign finance entity” means a political committee established under 5 
Title 13 of this article. 6 
 
 (FF–1) “POLITICAL CLUB ” MEANS A COMBINATION OF TWO OR MORE 7 
INDIVIDUALS WHO PAY DUES OR MAKE CONTRIB UTIONS TO AN ENTITY FOR THE 8 
PURPOSE OF PARTICIPA TING IN A POLITICAL MATTER. 9 
 
 (gg) “Political committee” means a combination of two or more individuals that has 10 
as its major purpose promoting the success or defeat of a candidate, political party, 11 
question, or prospective question submitted to a vote at any election. 12 
 
 (ss) “Transfer” means a monetary contribution that is made by one campaign 13 
finance entity to another campaign finance entity, [other than] INCLUDING one made by 14 
or to a political club. 15 
 
13–207. 16 
 
 (a) This section applies to a political committee [other than], INCLUDING a 17 
political club. 18 
 
 (b) A political committee may not receive or disburse money or any other thing of 19 
value unless the political committee is established in accordance with the requirements of 20 
this section. 21 
 
 (c) To establish a political committee: 22 
 
 (1) a chairman and a treasurer shall be appointed on a form that the State 23 
Board prescribes and that is signed by the chairman and treasurer and includes: 24 
 
 (i) the residence addresses of the chairman and the treasurer; 25 
 
 (ii) if the chairman and treasurer affirmatively consent to receiving 26 
notice under this title only by electronic mail, the electronic mail address of the chairman 27 
and the treasurer; and 28 
 
 (iii) the information required by § 13–208 of this subtitle; and 29 
 
 (2) the form shall be filed with the State Board. 30 
   	HOUSE BILL 721 	3 
 
 
 (3) The chairman or treasurer of a political committee shall notify the State 1 
Board of a change in the residence address of the chairman or treasurer no later than 21 2 
days before the day on which the political committee’s next campaign finance report is due 3 
under § 13–309 of this title. 4 
 
 (4) The chairman or treasurer of a political committee shall notify the State 5 
Board of a change in the electronic mail address of the chairman or treasurer by the date 6 
specified in paragraph (3) of this subsection if the chairman and treasurer of the political 7 
committee have affirmatively consented to receiving notice under this title only by 8 
electronic mail. 9 
 
 (d) (1) A chairman or treasurer of a political committee may resign by 10 
completing a resignation form that the State Board prescribes and filing the form with the 11 
State Board. 12 
 
 (2) If a vacancy occurs in the office of chairman or the office of treasurer, 13 
the political committee promptly shall appoint a new chairman or treasurer in accordance 14 
with this section. 15 
 
 (3) A political committee may not receive or disburse money or any other 16 
thing of value if there is a vacancy in the office of chairman or the office of treasurer. 17 
 
13–208. 18 
 
 (a) This section applies to a political committee [other than], INCLUDING a 19 
political club. 20 
 
 (b) A political committee shall provide, with the filing required by § 13–207(c) of 21 
this subtitle, a statement of organization that includes its name and a statement of purpose. 22 
 
 (c) The statement of purpose shall specify: 23 
 
 (1) each candidate or ballot question, if any, that the political committee 24 
was formed to promote or defeat; 25 
 
 (2) the identity of each special interest, including any business or 26 
occupation, that the organizers of or contributors to the political committee have in 27 
common; and 28 
 
 (3) whether the political committee will participate in presidential, 29 
gubernatorial, Baltimore City, or multiple elections. 30 
 
 (d) (1) A political committee may not use a name that is intended or operates 31 
to deceive people as to the political committee’s true nature or character. 32 
 
 (2) A political committee established by and for a single candidate shall 33 
disclose within the political committee’s name the name of the candidate. 34  4 	HOUSE BILL 721  
 
 
 
 (3) A political committee sponsored by or affiliated with another entity or 1 
group shall identify within the political committee’s name the other entity or group. 2 
 
 (e) A change in the information reported under this section shall be disclosed in 3 
the campaign finance report next filed by the political committee. 4 
 
13–304. 5 
 
 (a) (1) From the date of its organization until its termination under the 6 
provisions of this title, a campaign finance entity, [except] INCLUDING a political club, 7 
shall file a campaign finance report at the State Board at the times and for the periods 8 
required by §§ 13–309, 13–312, and 13–316 of this subtitle. 9 
 
13–305. 10 
 
 (a) Instead of filing a report required under § 13–309 of this subtitle, a treasurer 11 
may file an affidavit stating that the campaign finance entity, INCLUDING A P OLITICAL 12 
CLUB, has not raised or spent a cumulative amount of $1,000 or more, exclusive of the filing 13 
fee, and regardless of the balance of the campaign account, since: 14 
 
 (1) establishing the campaign finance entity; or 15 
 
 (2) filing the campaign finance entity’s last campaign finance report. 16 
 
 (b) The affidavit shall be filed on or before the date a campaign finance report is 17 
due to be filed under § 13–309 of this subtitle. 18 
 
13–602. 19 
 
 (a) (4) (i) A person, to defray the costs of a campaign finance entity, may 20 
not directly or indirectly pay, give, or promise money or any other valuable thing to any 21 
person other than a campaign finance entity. 22 
 
 (ii) Subparagraph (i) of this paragraph does not apply to: 23 
 
 1. [dues regularly paid for membership in a political club if 24 
all of the money that is spent by that political club in connection with any campaign finance 25 
activity is paid through a treasurer as provided in this title; 26 
 
 2.] an individual volunteering the individual’s time or 27 
personal vehicle in accordance with § 13–232 of this title; 28 
 
 [3.] 2. an employer’s accumulation of employee contributions in 29 
accordance with § 13–242 of this title; or 30 
   	HOUSE BILL 721 	5 
 
 
 [4.] 3. advertising costs or other expenses incident to the 1 
expression of personal views in accordance with § 13–102 of this title. 2 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That, notwithstanding §  3 
13–304(a)(1), as enacted by Section 1 of this Act, and § 13–312(a)(1) of the Election Law 4 
Article, a political club in existence before June 1, 2022: 5 
 
 (1) is not required to file any campaign finance reports under this Act for 6 
any period before June 1, 2022; and 7 
 
 (2) shall file a campaign finance report covering the period beginning on 8 
June 1, 2022, through the day specified in § 13–312(a)(3) of the Election Law Article.  9 
 
 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 10 
1, 2022. 11