LAWRENCE J. HOGAN, JR., Governor Ch. 625 – 1 – Chapter 625 (Senate Bill 101) AN ACT concerning Election Law – Contested Elections FOR the purpose of altering certain definitions to allow a campaign finance entity to pay expenses associated with contesting an election; prohibiting a recount under certain circumstances; altering the circumstances under which a petitioner for a recount is not liable for the costs of the recount; providing that a person who accepts certain public campaign financing may accept a donation or make a disbursement related to a contested election only if the person establishes a contested election committee and makes certain disclosures; providing that a certain system of public campaign financing established by the governing body of a county may include public financing of a contested election committee; and generally relating to contested elections. BY repealing and reenacting, without amendments, Article – Election Law Section 1–101(a) Annotated Code of Maryland (2017 Replacement Volume and 2021 Supplement) BY repealing and reenacting, with amendments, Article – Election Law Section 1–101(o) and (aa), 12–101(a), 12–103(a), 12–107, 13–233, and 13–505 Annotated Code of Maryland (2017 Replacement Volume and 2021 Supplement) BY adding to Article – Election Law Section 12–301 through 12–313 to be under the new subtitle “Subtitle 3. Contested Election Committee” Annotated Code of Maryland (2017 Replacement Volume and 2021 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Election Law 1–101. (a) In this article the following words have the meanings indicated unless a different meaning is clearly intended from the context. Ch. 625 2022 LAWS OF MARYLAND – 2 – (o) (1) “Contribution” means the gift or transfer, or promise of gift or transfer, of money or other thing of value to a campaign finance entity to: (I) promote or assist in the promotion of the success or defeat of a candidate, political party, question, or prospective question; AND (II) ASSIST IN THE PAYMEN T OF EXPENSES ASSOCI ATED WITH CONTESTING AN ELECTI ON UNDER TITLE 12 OF THIS ARTICLE . (2) “Contribution” includes: (i) proceeds from the sale of tickets to a campaign fund–raising event; and (ii) a coordinated expenditure as defined in § 13–249 of this article. (3) “Contribution” does not include the costs associated with the establishment, administration, or solicitation of voluntary contributions to a political action committee established by a corporation, limited liability company, general partnership, limited partnership, membership organization, trade association, cooperative, or corporation without capital stock as long as the political action committee only solicits contributions from employees of the organization that established the political action committee, or members of the organization that established the political action committee, and the employees or members are participating in a payroll deduction program established by the employer of the employee or member. (aa) “Expenditure” means a gift, transfer, disbursement, or promise of money or a thing of value by or on behalf of a campaign finance entity to: (1) promote or assist in the promotion of the success or defeat of a candidate, political party, question, or prospective question at an election; [or] (2) PAY EXPENSES ASSOCIA TED WITH CONTESTING AN ELECTION UNDER TITLE 12 OF THIS ARTICLE; OR [(2)] (3) pay for the publication expense of a legislative newsletter under Title 13, Subtitle 4 of this article. 12–101. (a) (1) [A] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, A candidate for public or party office who has been defeated based on the certified results of any election conducted under this article may petition for a recount of the votes cast for the office sought. LAWRENCE J. HOGAN, JR., Governor Ch. 625 – 3 – (2) A CANDIDATE MAY NOT PE TITION FOR A RECOUNT IF THE MARGIN OF DIFFERENCE BETWEE N THE NUMBER OF VOTE S RECEIVED BY AN APP ARENT WINNER AND THE L OSING CANDIDATE WITH THE HIGHEST NUMBER O F VOTES FOR THE OFFICE IS GREATE R THAN 5% OF THE TOTAL VOTES C AST FOR THOSE CANDIDATES . 12–103. (a) (1) [A] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, A petition for a recount based on the certified results of a question on the ballot in an election conducted under this article may be filed by a registered voter eligible to vote for that question. (2) A REGISTERED VOTER MAY NOT FILE A PETITION FOR A RECOUNT IF THE MARGIN OF DIF FERENCE BETWEEN THE NUMBER OF VOTES CAST FOR AND THE NUMBER OF VOTES CAST AGAINST THE QUE STION IS GREATER THA N 5%. 12–107. (a) In this section, “petitioner” includes a counterpetitioner. (b) (1) Except as provided in paragraph (2) of this subsection, each petitioner shall pay the cost of a recount requested under this subtitle and the petitioner’s bond is liable for the cost. (2) The petitioner is not liable for the costs of the recount if: (i) the outcome of the election is changed; (ii) the petitioner has gained a number of votes, for the petitioner’s candidacy or for or against the question that is the subject of the petition, equal to 2% or more of the total votes cast for the office or on the question, in all precincts being recounted; or (iii) 1. the margin of difference in the number of votes received by an apparent winner and the losing candidate with the highest number of votes for an office is [0.1%] 0.25% or less of the total votes cast for those candidates; or 2. in the case of a question, the margin of difference between the number of votes cast for and the number cast against the question is [0.1%] 0.25% or less. (c) If the petitioner is not liable for the costs of the recount as provided in subsection (b) of this section, a county shall pay the costs of the recount in that county. Ch. 625 2022 LAWS OF MARYLAND – 4 – SUBTITLE 3. CONTESTED ELECTION COMMITTEE. 12–301. (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (B) (1) “CONTESTED ELECTION ” MEANS AN ELECTION SU BJECT TO: (I) A RECOUNT UNDER SUBTITLE 1 OF THIS TITLE; OR (II) A JUDICIAL CHALLENGE UNDER SUBTITLE 2 OF THIS TITLE. (2) “CONTESTED ELECTION ” INCLUDES AN ELECTION THAT MAY BE SUBJECT TO A RECOUNT UNDER SUBTITLE 1 OF THIS TITLE, BUT FOR WHICH A RECOUNT DOES NOT OCC UR BECAUSE NEITHER C ANDIDATE FILES A FOR MAL RECOUNT PETITION OR INITIATES A JUDICIAL ACTION. (C) “CONTESTED ELECTION CO MMITTEE” MEANS AN ENTITY FORM ED FOR THE EXCLUSIVE PURP OSE OF RECEIVING DON ATIONS AND MAKING DI SBURSEMENTS RELATING TO A CONTES TED ELECTION . 12–302. (A) THIS SUBTITLE APPLIES ONLY TO A PERSON THA T ACCEPTS PUBLIC CAMPAIGN FINANCING U NDER: (1) TITLE 15 OF THIS ARTICLE; OR (2) § 13–505 OF THIS ARTICLE. (B) A PERSON MAY ACCEPT A DONATION OR MAKE A D ISBURSEMENT RELATING TO A CONTES TED ELECTION ONLY IF THE PERSON: (1) ESTABLISHES A CONTES TED ELECTION COMMITT EE; AND (2) DISCLOSES THE DONATI ONS AND DISBURSEMENT S IN ACCORDANCE WITH THIS SUBTITLE. 12–303. A PERSON MAY ESTABLISH A CONTESTED ELECTION COMMITTEE AT ANY TIM E BY FILING A STATEMEN T OF ORGANIZATION WI TH THE STATE BOARD THAT INCLUDES: LAWRENCE J. HOGAN, JR., Governor Ch. 625 – 5 – (1) THE APPOINTMENT OF A TREASURER ; AND (2) ANY OTHER INFORMATIO N THAT THE STATE BOARD REQUIRES . 12–304. (A) A CONTESTED ELECTION C OMMITTEE SHALL : (1) DEPOSIT ALL DONATION S RECEIVED IN A DESI GNATED BANK ACCOUNT; AND (2) MAKE ALL DISBURSEMEN TS FROM THE DESIGNAT ED BANK ACCOUNT. (B) DISBURSEMENTS OF A CO NTESTED ELECTION COM MITTEE SHALL : (1) PASS THROUGH THE HAN DS OF THE TREASURER ; AND (2) BE IN ACCORDANCE WIT H THE PURPOSE OF THE ENTITY. 12–305. (A) (1) A PERSON THAT ACCEPTS PUBLIC CAMPAIGN FINA NCING UNDER TITLE 15 OF THIS ARTICLE MAY NOT SOLICIT OR ACCEP T A DONATION ON BEHA LF OF A CONTESTED ELECTION C OMMITTEE IN EXCESS O F THE CONTRIBUTION L IMITS ESTABLISHED UNDER TITLE 15 OF THIS ARTICLE. (2) A PERSON THAT ACCEPTS PUBLIC CAMPAIGN FINA NCING UNDER § 13–505 OF THIS ARTICLE MAY NOT SOLICIT OR ACCEP T A DONATION ON BEHA LF OF A CONTESTED ELECTION C OMMITTEE IN EXCESS O F THE CONTRIBUTION L IMITS ESTABLISHED IN LAW B Y THE GOVERNING BODY OF THE COUNTY IN ACC ORDANCE WITH § 13–505 OF THIS ARTICLE. (B) (1) A CONTESTED ELECTION C OMMITTEE MAY NOT ACC EPT A LOAN OTHER THAN A LOAN FR OM: (I) A FINANCIAL INSTITUT ION OR OTHER ENTITY IN THE BUSINESS OF MAKING L OANS; OR (II) THE PERSONAL FUNDS O F A CANDIDATE OR THE CANDIDATE’S SPOUSE IF THE CONT ESTED ELECTION COMMI TTEE WAS ESTABLISHED TO FINANCE A RECOUNT OF AN ELECTION IN WH ICH THE CANDIDATE WAS ON THE BALLOT. Ch. 625 2022 LAWS OF MARYLAND – 6 – (2) A LOAN UNDER THIS SUBS ECTION MAY BE OF ANY AMOUNT. 12–306. (A) THE TREASURER OF A CO NTESTED ELECTION COM MITTEE SHALL MAINTAIN DETAILED AN D ACCURATE RECORDS O F ALL: (1) DONATIONS RECEIVED B Y THE CONTESTED ELEC TION COMMITTEE; (2) DISBURSEMENTS MADE B Y THE CONTESTED ELEC TION COMMITTEE ; AND (3) OUTSTANDING OBLIGATI ONS OF THE CONTESTED ELECTION COMMITTEE . (B) A CONTESTED ELECTION C OMMITTEE SHALL RETAI N THE RECORDS REQUIRED TO BE MAINT AINED UNDER SUBSECTI ON (A) OF THIS SECTION FOR A PERIOD OF 2 YEARS AFTER FILING A FINAL REPORT . 12–307. (A) THE TREASURER OF A CO NTESTED ELECTION COM MITTEE SHALL FILE REPORTS WITH THE STATE BOARD AS REQUIRED IN THIS SUBTITLE: (1) USING AN ELECTRONIC FORMAT; (2) WITH THE ELECTRONIC SIGNATURE OF THE TREASURER FIL ING THE REPORT ; (3) UNDER OATH ; AND (4) SUBJECT TO THE PENAL TIES FOR PERJURY . (B) THE STATE BOARD SHALL MAKE THE REPORTS SUBMITTED UN DER THIS SUBTITLE PUBLICLY AV AILABLE ON THE INTERNET. 12–308. (A) A REPORT FILED BY THE TRE ASURER OF A CONTESTE D ELECTION COMMITTEE UNDER THIS SUBTITLE SHALL INCLU DE THE INFORMATION R EQUIRED BY THE STATE BOARD WITH RESPECT TO ALL DONATIONS , DISBURSEMENTS , AND LAWRENCE J. HOGAN, JR., Governor Ch. 625 – 7 – OUTSTANDING OBLIGATI ONS OF THE CONTESTED ELECTION COMMITTEE D URING THE REPORTING PERIOD . (B) (1) IF THE PERSON WHO EST ABLISHED THE CONTEST ED ELECTION COMMITTEE HAS FILED A PETITION FOR A REC OUNT UNDER SUBTITLE 1 OF THIS TITLE OR HAS FILED A COMPLAINT IN THE CIR CUIT COURT UNDER SUBTITLE 2 OF THIS TITLE, THE TREASURER OF THE CONTESTED ELECTI ON COMMITTEE SHALL FILE THE CONTESTED E LECTION COMMITTEE ’S FIRST REPORT ON OR BEFORE THE FIRST DAY AFTER THE EARLIER OF: (I) THE DAY THE PERSON W HO ESTABLISHED THE C ONTESTED ELECTION COMMITTEE F ILED THE PETITION FO R A RECOUNT; OR (II) THE DAY THE PERSON W HO ESTABLISHED THE C ONTESTED ELECTION COMMITTEE F ILED THE COMPLAINT I N THE CIRCUIT COURT . (2) IF THE PERSON WHO EST ABLISHED THE CONTEST ED ELECTION COMMITTEE HAS NOT FI LED A PETITION FOR A RECOUNT UNDER SUBTITLE 1 OF THIS TITLE OR FILED A COMPL AINT IN THE CIRCUIT COURT UNDER SUBTITLE 2 OF THIS TITLE, THE TREASURER OF THE CONTESTED ELECTION C OMMITTEE SHALL FILE THE CONTESTED E LECTION COMMITTEE ’S FIRST REPORT ON OR BEFORE THE DAY THAT IS 7 DAYS AFTER THE DAY T HAT THE CONTESTED ELECTION COMMITTEE OF THE OPPOSING CAND IDATE OR OPPOSING PA RTY FILED ITS FIRST REPORT UNDER PARAGRAPH (1) OF THIS SUBSECTION . (C) THE TREASURER OF A CO NTESTED ELECTION COM MITTEE SHALL FILE SUBSEQUENT REPORTS O N OR BEFORE: (1) THE MONDAY THAT IS 30 DAYS AFTER THE DUE DA TE OF THE FIRST REPORT FILED B Y THE CONTESTED ELEC TION COMMITTEE UNDER SUBSECTION (B) OF THIS SECTION; (2) THE MONDAY THAT IS 60 DAYS AFTER THE DUE D ATE OF THE FIRST REPORT FILED B Y THE CONTESTED ELEC TION COMMITTEE UNDER SUBSECTION (B) OF THIS SECTION; AND (3) THE THIRD WEDNESDAY IN JANUARY OF EACH YEAR THAT THE CONTESTED ELECTION C OMMITTEE REMAINS IN EXISTENCE. (D) THE STATE BOARD SHALL , BY REGULATION , ESTABLISH THE REPORTING PERIODS FO R EACH OF THE REPORT S REQUIRED UNDER THI S SUBTITLE. Ch. 625 2022 LAWS OF MARYLAND – 8 – (E) IF THE TREASURER OF A CONTESTED ELECTION C OMMITTEE FAILS TO PROVIDE ALL THE INFO RMATION REQUIRED ON A REPORT UNDER THIS SUBTITLE: (1) THE STATE BOARD SHALL NOTIFY TH E TREASURER IN WRITI NG OF THE PARTICULAR DE FICIENCIES; AND (2) THE TREASURER SHALL FILE AN AMENDED REPO RT THAT INCLUDES ALL THE INF ORMATION REQUIRED WI THIN 30 DAYS AFTER SERVICE O F THE NOTICE. 12–309. (A) (1) THE STATE BOARD SHALL ASSESS LA TE FILING FEES FOR FAILURE TO PROPERLY FILE A REPORT UNDER THIS SUBTITLE. (2) THE STATE BOARD SHALL ASSESS TH E FEES IN THE FOLLOW ING AMOUNTS FOR EACH DAY OR PART OF A DAY THA T A REPORT UNDER THI S SUBTITLE IS OVERDUE: (I) $20 FOR EACH OF THE FIRS T 7 DAYS; (II) $35 FOR EACH OF THE FOLL OWING 7 DAYS; AND (III) $50 FOR EACH DAY THEREAF TER. (3) THE MAXIMUM FEE PAYAB LE FOR A REPORT IS $1,000. (B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A LATE FILING FEE UNDER T HIS SECTION SHALL BE PAID BY THE CONTESTE D ELECTION COMMITTEE . (II) IF THE CONTESTED ELEC TION COMMITTEE HAS INSUFFICIENT FUNDS W ITH WHICH TO PAY THE FULL AMOUNT OF THE L ATE FILING FEE IN A TIMELY MANN ER, AFTER THE ACCOUNT OF THE CONTESTED ELECTION COMMITTEE IS EXHAUST ED THE BALANCE OF TH E LATE FILING FEE IS THE LIABILITY OF THE TRE ASURER. (2) LATE FILING FEES SHAL L BE DISTRIBUTED TO THE FAIR CAMPAIGN FINANCING FUND ESTABLISHED UNDE R § 15–103 OF THIS ARTICLE. (3) (I) THE STATE BOARD SHALL ACCEPT AN OVERDUE REPORT THAT IS SUBMITTED WI THOUT PAYMENT OF THE LATE FILING FEE, BUT THE REPORT IS NOT CONSIDERED FI LED UNTIL THE FEE HA S BEEN PAID. LAWRENCE J. HOGAN, JR., Governor Ch. 625 – 9 – (II) AFTER AN OVERDUE REPO RT IS RECEIVED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , NO FURTHER LATE FILING FEE SHALL BE INCURRED. (4) THE TREASURER OF A CO NTESTED ELECTION COM MITTEE THAT FAILS TO PROPERLY FI LE A REPORT MAY SEEK RELIEF FROM A LATE F ILING FEE IMPOSED UNDER THIS S ECTION FOR JUST CAUS E AS PROVIDED IN § 13–337 OF THIS ARTICLE. 12–310. (A) (1) IF THE STATE BOARD DETERMINES THAT THERE HAS BEEN FOR MORE THAN 30 DAYS A FAILURE TO FILE A REPORT OR PAY A LATE FILING FEE UNDER THIS SUBTITLE , THE STATE BOARD SHALL ISSUE THE NOTICE REQUIRED UNDER PARAGRAPH (2) OF THIS SUBSECTION T O THE TREASURER OF T HE CONTESTED ELECTION C OMMITTEE IN VIOLATIO N. (2) THE NOTICE SHALL DEMA ND THAT, WITHIN 30 DAYS AFTER SERVICE OF THE NOTIC E, EITHER: (I) THE FAILURE TO FILE BE RECTIFIED AND ANY LATE FILING FEE DUE BE PAID ; OR (II) THE TREASURER SHOW C AUSE WHY THE STATE BOARD SHOULD NOT ASK THE A PPROPRIATE PROSECUTI NG AUTHORITY TO PROS ECUTE THE TREASURER FOR A VIOLATION OF THIS SU BTITLE. (3) IN ITS DISCRETION , THE APPROPRIATE PROS ECUTING AUTHORITY MAY REFER THE MATTER FOR ACTIO N TO THE CENTRAL COLLECTION UNIT WITHIN THE DEPARTMENT OF BUDGET AND MANAGEMENT . (B) A TREASURER WHO FAILS , WITHOUT CAUSE , TO FILE THE REPORT A ND PAY THE LATE FILING FEE WITHIN 30 DAYS AFTER SERVICE O F THE NOTICE REQUIRED UNDER SUBSE CTION (A)(2) OF THIS SECTION IS G UILTY OF A MISDEMEANOR AND ON C ONVICTION IS SUBJECT TO THE PENALTIES PRE SCRIBED IN § 13–603 OF THIS ARTICLE. 12–311. (A) A CANDIDATE WHOSE CONT ESTED ELECTION COMMI TTEE HAS FAILED TO FILE A REPORT OR PAY A LATE FILING FE E THAT IS DUE UNDER THIS SUBTITLE ON OR BEFORE THE DEA DLINE FOR DECLINING THE NOMINATION SPECI FIED UNDER § 5–801(B) OF THIS ARTICLE MAY NOT BE ISSUED A CERTIFICATE OF NOM INATION UNDER § 5–705 OF THIS ARTICLE. Ch. 625 2022 LAWS OF MARYLAND – 10 – (B) A CANDIDATE WHOSE CONT ESTED ELECTION COMMI TTEE HAS FAILED TO FILE A REPORT OR PAY A LATE FILING FE E THAT IS DUE UNDER THIS SUBTITLE MAY NOT, UNTIL THE REPORT IS FILED OR THE LATE FILING FEE IS PAID: (1) BE DEEMED TO BE ELEC TED TO A PUBLIC OR P ARTY OFFICE IN THE STATE; (2) TAKE THE OATH OR OTH ERWISE ASSUME THE DU TIES OF THE OFFICE; OR (3) RECEIVE A SALARY OR COMPENSATION FOR THE OFFICE. (C) AN OFFICIAL OF THE STATE OR ANY OF ITS P OLITICAL SUBDIVISION S MAY NOT ISSUE A COMM ISSION OR ADMINISTER AN OATH OF OFFICE TO AN INDIVIDUAL UNTIL THA T OFFICIAL RECEIVES CERTIFICATION FROM T HE STATE BOARD THAT ALL REPORT S DUE UNDER THIS SUB TITLE FROM OR ON BEH ALF OF THAT INDIVIDUAL HAVE BEEN FILED . 12–312. (A) THE STATE BOARD MAY IMPOSE A CI VIL PENALTY ON A CON TESTED ELECTION COMMITTEE I N ACCORDANCE WITH TH IS SECTION FOR THE F OLLOWING VIOLATIONS: (1) MAKING A DISBURSEMEN T FOR A PURPOSE NOT RELATED TO A CONTESTED ELECTION ; (2) FAILURE TO DISPOSE O F SURPLUS FUNDS IN A CCORDANCE WITH § 12–313 OF THIS SUBTITLE ; (3) FAILURE TO MAINTAIN THE RECORDS REQUIRED UNDER § 12–306 OF THIS SUBTITLE ; OR (4) FAILURE TO REPORT AL L DONATIONS , DISBURSEMENTS , AND OUTSTANDING OBLIGATI ONS AS REQUIRED UNDER § 12–308 OF THIS SUBTITLE . (B) A CIVIL PENALTY IMPOSE D UNDER THIS SECTION SHALL BE ASSESSED IN THE AMOUNT AND IN THE MANNER SPECIFIED IN § 13–604.1 OF THIS ARTICLE. (C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A CIVIL PENALTY IMPOSED UNDER T HIS SECTION SHALL BE PAID BY THE CONTESTE D ELECTION COMMITTEE . LAWRENCE J. HOGAN, JR., Governor Ch. 625 – 11 – (2) IF THE CONTESTED ELEC TION COMMITTEE HAS I NSUFFICIENT FUNDS WITH WHICH TO PAY THE FULL AMOUNT OF THE CIVIL PENALTY IN A TIMELY MANNER, AFTER THE ACCOUNT OF THE CONTEST ED ELECTION COMMITTE E IS EXHAUSTED, THE BALANCE OF THE C IVIL PENALTY IS THE LIABILITY OF THE TREASURER . 12–313. (A) (1) ANY PART OF A PUBLIC CONTRIBUTION MADE TO A CONTESTED ELECTION COMMITTEE T HAT IS NOT SPENT SHA LL BE REPAID TO THE APPROPRIATE GOVERNMENT ENTITY . (2) IN COMPUTING WHETHER PART OF A PUBLIC CON TRIBUTION IS NOT SPENT, ALL PRIVATE CONTRIBU TIONS TO THE PERSON SHALL BE TREATED AS SPENT BEFORE THE EXP ENDITURE OF ANY PUBL IC CONTRIBUTION . (B) AFTER REPAYING REMAIN ING PUBLIC CONTRIBUT IONS UNDER SUBSECTION (A) OF THIS SECTION AND BEFORE FILING A FINAL REPOR T, A CONTESTED ELECTION C OMMITTEE SHALL PAY A LL OUTSTANDING OBLIG ATIONS AND DISPOSE OF ALL I TS REMAINING ASSETS BY RETURNING THE REM AINING BALANCE IN THE ACCOUNT OF THE CONTESTED ELE CTION COMMITTEE TO T HE DONORS ON A PRO RATA BASIS. 13–233. This Part V of this subtitle does not affect the right of an individual to[: (1)] volunteer the individual’s time or, for transportation incident to an election, personal vehicle[; or (2) pay reasonable legal expenses associated with maintaining or contesting the results of an election]. 13–505. (a) IN THIS SECTION , “CONTESTED ELECTION C OMMITTEE” MEANS A CONTESTED ELECTION C OMMITTEE ESTABLISHED UNDER TITLE 12, SUBTITLE 3 OF THIS ARTICLE. (B) (1) Subject to the provisions of this section, the governing body of a county may establish, by law, a system of public campaign financing for elective offices in the executive or legislative branches of county government. Ch. 625 2022 LAWS OF MARYLAND – 12 – (2) A SYSTEM OF PUBLIC FIN ANCING ESTABLISHED U NDER PARAGRAPH (1) OF THIS SUBSECTION M AY INCLUDE PUBLIC FI NANCING OF A CONTESTED ELECTION C OMMITTEE. [(2)] (3) When establishing a system of public campaign financing for elective offices in the executive or legislative branches of county government, the governing body of a county shall: (i) specify the criteria that [is] ARE to be used to determine whether an individual is eligible for public campaign financing; and (ii) provide the funding and staff necessary for the operation, administration, and auditing of the system of public campaign financing. [(b)] (C) A system of public campaign financing enacted under subsection [(a)] (B) of this section: (1) shall provide for participation of candidates in public campaign financing on a strictly voluntary basis; (2) may not regulate candidates who choose not to participate in public campaign financing; (3) shall prohibit the use of public campaign financing for any campaign except a campaign for county elective office; (4) shall require a candidate who accepts public campaign financing to: (i) establish a campaign finance entity solely for the campaign for county elective office; and (ii) use funds from that campaign finance entity only for the campaign for county elective office; (5) shall prohibit a candidate who accepts public campaign financing from transferring funds: (i) to the campaign finance entity established to finance the campaign for county elective office from any other campaign finance entity established for the candidate; and (ii) from the campaign finance entity established to finance the campaign for county elective office to any other campaign finance entity; LAWRENCE J. HOGAN, JR., Governor Ch. 625 – 13 – (6) shall provide for a public election fund for county elective offices that is administered by the chief financial officer of the county; and (7) shall be subject to regulation and oversight by the State Board to ensure conformity with State law and policy to the extent practicable. [(c)] (D) A system of public campaign financing enacted under subsection [(a)] (B) of this section may: (1) provide for more stringent regulation of campaign finance activity by candidates who choose to accept public campaign financing, including contributions, expenditures, reporting, and campaign material, than is provided for by State law; [and] (2) provide for administrative penalties for violations, in accordance with § 10–202 of the Local Government Article; AND (3) ALLOW A PUBLICLY FINANCED CA NDIDATE TO TRANSFER ANY AMOUNT OF FUNDS FROM THE CANDIDATE ’S CAMPAIGN FINANCE E NTITY TO THE CANDIDATE’S CONTESTED ELECTION COMMITTEE . SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1, 2022. Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.