EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0358*
SENATE BILL 358
G1 2lr1261
SB 416/21 – EHE & B&T
By: Senators Pinsky, Lam, Kagan, Smith, Waldstreicher, Elfreth, and Guzzone
Introduced and read first time: January 21, 2022
Assigned to: Education, Health, and Environmental Affairs and Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Public Financing Act – State Senate and House of Delegates 2
FOR the purpose of altering the candidates authorized to receive public contributions from 3
the Fair Campaign Financing Fund to include candidates for State Senator and 4
member of the House of Delegates; and generally relating to the Public Financing 5
Act. 6
BY repealing and reenacting, with amendments, 7
Article – Election Law 8
Section 13–235, 15–102(d) and (i), 15–103, 15–104, 15–106 through 15–109, 15–111, 9
and 15–113(b) 10
Annotated Code of Maryland 11
(2017 Replacement Volume and 2021 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Election Law 14
Section 15–102(a) and 15–113(a) 15
Annotated Code of Maryland 16
(2017 Replacement Volume and 2021 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Election Law 20
13–235. 21
(a) This section applies to the following officials: 22
(1) the Governor; 23
2 SENATE BILL 358
(2) the Lieutenant Governor; 1
(3) the Attorney General; 2
(4) the Comptroller; and 3
(5) a member of the General Assembly. 4
(b) Except as provided in subsection (c), (d), or (e) of this section, during a regular 5
session of the General Assembly an official described in subsection (a) of this section, or a 6
person acting on behalf of the official, may not, as to a candidate for federal, State, or local 7
office, or a campaign finance entity of the candidate or any other campaign finance entity 8
organized under this title and operated in coordination with a candidate: 9
(1) receive a contribution; 10
(2) conduct a fund–raising event; 11
(3) solicit a contribution; or 12
(4) deposit or use any contribution of money that was not deposited prior 13
to the session. 14
(c) An official described in subsection (a) of this section, or a person acting on 15
behalf of the official, is not subject to this section when engaged in activities solely related 16
to the official’s election to an elective federal or local office for which the official is a filed 17
candidate. 18
(d) Under the Public Financing Act, a gubernatorial ticket OR A CANDIDATE FOR 19
STATE SENATOR OR MEMBER OF THE HOUSE OF DELEGATES, during the year of the 20
election only, may accept eligible private contributions and any disbursement of funds by 21
the State Board that is based on the eligible private contributions. 22
(e) An official described in subsection (a) of this section, or a person acting on 23
behalf of the official, may deposit a contribution during the legislative session if the 24
contribution was made electronically before the start of the session. 25
(f) (1) As to a violation of this section, the campaign finance entity of the 26
official in violation is liable for a civil penalty as provided in § 13–604.1 of this title. 27
(2) A civil penalty imposed under this subsection shall be distributed to the 28
Fair Campaign Financing Fund established under § 15–103 of this article. 29
15–102. 30
(a) In this title the following words have the meanings indicated. 31
SENATE BILL 358 3
(d) “Eligible [gubernatorial ticket”] CANDIDATE” means a gubernatorial ticket, 1
A CANDIDATE FOR STATE SENATOR, OR A CANDIDATE FOR MEMBER OF THE HOUSE 2
OF DELEGATES that qualifies to receive a public contribution. 3
(i) “Public contribution” means money distributed from the Fund to [a 4
gubernatorial ticket] AN ELIGIBLE CANDIDAT E under this title. 5
15–103. 6
(a) There is a Fair Campaign Financing Fund. 7
(b) The Comptroller shall administer the Fund in accordance with this section. 8
(c) In accordance with this title, the Comptroller shall: 9
(1) credit to the Fund: 10
(i) all money collected or appropriate under this title; 11
(ii) voluntary contributions to the Fund made electronically through 12
the State Board’s website; 13
(iii) fees, fines, and penalties assessed under this article or the 14
General Provisions Article that are expressly allocated to the Fund by law; 15
(iv) an anonymous contribution paid to the Fund under § 13–239 of 16
this article; 17
(v) an illegal contribution paid to the Fund under § 13–239.1 of this 18
article; 19
(vi) surplus campaign funds paid to the Fund under § 13–247 of this 20
article; and 21
(vii) contributions to the Fund made through the checkoff on the 22
individual income tax return established under § 2–113.1 of the Tax – General Article; 23
(2) subject to the usual investing procedures for State funds, invest the 24
money in the Fund; and 25
(3) make distributions from the Fund promptly on authorization by the 26
State Board. 27
(d) The Comptroller shall distribute public contributions: 28
(1) only on authorization of the State Board; and 29 4 SENATE BILL 358
(2) as to each eligible [gubernatorial ticket] CANDIDATE, to the campaign 1
account of a single campaign finance entity established under Title 13, Subtitle 2 of this 2
article to receive public contributions. 3
(e) The Comptroller shall submit a statement of the Fund’s balance to the State 4
Board each month. 5
(f) (1) On or before June 30 of the third year immediately preceding a year of 6
a gubernatorial election, the State Board shall determine whether the balance of the Fund 7
is sufficient to provide for a full contribution for: 8
(i) in a primary election[,]: 9
1. two gubernatorial tickets; 10
2. 47 CANDIDATES FOR STATE SENATOR; AND 11
3. 141 CANDIDATES FOR MEMBE R OF THE HOUSE OF 12
DELEGATES; and 13
(ii) in a general election[,]: 14
1. one gubernatorial ticket; 15
2. 47 CANDIDATES FOR STATE SENATOR; AND 16
3. 141 CANDIDATES FOR MEMBE R OF THE HOUSE OF 17
DELEGATES. 18
(2) If the balance of the Fund is determined to be insufficient to provide the 19
public contributions described under paragraph (1) of this subsection: 20
(i) on or before August 1 of the third year immediately preceding a 21
year of a gubernatorial election, the State Board shall send a notice to the Governor of the 22
amount of money needed to provide the public contributions described under paragraph (1) 23
of this subsection; and 24
(ii) the Governor shall include in the annual budget bill for the 25
appropriate fiscal year an appropriation in an amount equal to the amount submitted to 26
the Governor under item (i) of this paragraph. 27
(3) For fiscal year 2023, the Governor shall include in the annual budget 28
bill an appropriation of at least $4,000,000 to the Fund. 29
(g) To pay costs directly related to the administration of this title, the State Board 30 SENATE BILL 358 5
may expend in each fiscal year an amount of money in the Fund that does not exceed the 1
lesser of: 2
(1) 3% of the Fund’s balance, as calculated on the last day of the 3
immediately preceding fiscal year; or 4
(2) $100,000. 5
15–104. 6
(a) Before receiving a private contribution, a gubernatorial ticket OR 7
CANDIDATE FOR STATE SENATOR OR MEMBER OF THE HOUSE OF DELEGATES shall: 8
(1) on or before the deadline to file a certificate of candidacy under § 9
13–303 of this article, file with the State Board a notice of intent to participate as a publicly 10
financed candidate for both the primary and general elections; and 11
(2) establish a campaign finance entity for complying with the 12
requirements of this title. 13
(b) (1) A campaign finance entity established under subsection (a)(2) of this 14
section may accept only: 15
(i) a private contribution; 16
(ii) an eligible private contribution; 17
(iii) a public contribution; and 18
(iv) subject to paragraph (2) of this subsection, a contribution or loan 19
from [a member of a gubernatorial ticket] THE ELIGIBLE CANDIDA TE or the spouse of [a 20
member of the gubernatorial ticket] THE ELIGIBLE CANDIDATE . 21
(2) [A member of a gubernatorial ticket or the spouse of a member of a 22
gubernatorial ticket] AN ELIGIBLE CANDIDATE OR THE SPOUSE OF AN ELIGIBLE 23
CANDIDATE may not make a contribution of or lend a combined total of more than $50,000 24
to the campaign of the [gubernatorial ticket] ELIGIBLE CANDIDATE . 25
(c) To qualify as an eligible [gubernatorial ticket,] CANDIDATE: 26
(1) a gubernatorial ticket shall collect within the qualifying period at least: 27
[(1)] (I) 1,500 eligible private contributions; and 28
[(2)] (II) an aggregate total of $120,000; 29
6 SENATE BILL 358
(2) A CANDIDATE FOR STATE SENATOR SHALL COLLECT WITHIN THE 1
QUALIFYING PERIOD AT LEAST: 2
(I) 250 ELIGIBLE PRIVATE CON TRIBUTIONS; AND 3
(II) AN AGGREGATE TOTAL O F $15,000; OR 4
(3) A CANDIDATE FOR MEMBER OF THE HOUSE OF DELEGATES SHALL 5
COLLECT WITHIN THE Q UALIFYING PERIOD AT LEAST: 6
(I) 150 ELIGIBLE PRIVATE CON TRIBUTIONS; AND 7
(II) AN AGGREGATE TOTAL O F $7,500. 8
15–106. 9
(a) After filing a notice of intent to qualify for a public contribution under this 10
title, a gubernatorial ticket or a person acting on behalf of the gubernatorial ticket OR A 11
CANDIDATE FOR STATE SENATOR OR MEMBER OF THE HOUSE OF DELEGATES OR A 12
PERSON ACTING O N BEHALF OF THE CAND IDATE FOR STATE SENATOR OR MEMBER 13
OF THE HOUSE OF DELEGATES may not, for the benefit of any political committee or any 14
person required to register with the State Board under § 13–306 or § 13–307 of this article 15
or for a participating organization organized under § 13–309.2 of this article: 16
(1) solicit contributions, including the authorized use of the names or 17
images of the gubernatorial ticket OR CANDIDATE FOR STATE SENATOR OR MEMBER 18
OF THE HOUSE OF DELEGATES in the solicitation; or 19
(2) operate in coordination with any entity for fundraising activities. 20
(b) After filing a notice of intent to qualify for a public contribution under this 21
title, the members of a gubernatorial ticket OR A CANDIDATE FOR STATE SENATOR OR 22
MEMBER OF THE HOUSE OF DELEGATES may not be a member of a slate that does not 23
receive a public contribution. 24
(c) Until a final campaign finance report is filed with the State Board and any 25
remaining funds of the public contribution distributed to [a gubernatorial ticket] AN 26
ELIGIBLE CANDIDATE are repaid to the Comptroller for redeposit in the Fund in 27
accordance with § 15–109 of this title, any authorized candidate campaign committee 28
organized under Title 13 of this article on behalf of the [members of a gubernatorial ticket] 29
ELIGIBLE CANDIDATE may not engage in campaign finance activity. 30
15–107. 31
(a) (1) In accordance with subsection (c) of this section and regulations 32 SENATE BILL 358 7
adopted by the State Board, the State Board shall authorize distribution of money in the 1
Fund on a continuing basis on certification that the qualifications under § 15–104 of this 2
title have been met. 3
(2) Distributions shall begin not earlier than January 1 of the year of the 4
election. 5
(b) If the State Board determines that there is not, or may not be, sufficient money 6
in the Fund to provide a full public contribution to all eligible [gubernatorial tickets] 7
CANDIDATES , the State Board shall allocate the available money so that each eligible 8
[gubernatorial ticket] CANDIDATE in that election receives a proportionate share of the 9
full public contribution to which the [gubernatorial ticket] ELIGIBLE CANDIDATE 10
otherwise would be entitled. 11
(c) (1) The State Board shall authorize distribution of the money that is 12
designated for distribution as provided in this subsection. 13
(2) The State Board shall distribute a public contribution from the Fund to 14
each [gubernatorial ticket] ELIGIBLE CANDIDATE during the distribution period [in] AS 15
FOLLOWS: 16
(I) FOR EACH GUBERNATORI AL TICKET, matching dollars equal 17
to: 18
[(i)] 1. $8 for each dollar of an eligible private contribution 19
received for the first $50 of each eligible private contribution; 20
[(ii)] 2. $6 for each dollar of an eligible private contribution 21
received for the second $50 of each eligible private contribution; 22
[(iii)] 3. $2 for each dollar of an eligible private contribution 23
received for the third $50 of each eligible private contribution; and 24
[(iv)] 4. $0 for each dollar of an eligible private contribution 25
received for the remaining $100 of each eligible private contribution; 26
(II) FOR EACH ELIGIBLE CA NDIDATE FOR STATE SENATOR, 27
MATCHING DOLLARS EQU AL TO: 28
1. $6 FOR EACH DOLLAR OF A N ELIGIBLE PRIVATE 29
CONTRIBUTION RECEIVE D FOR THE FIRST $50 OF EACH ELIGIBLE PRIVATE 30
CONTRIBUTION ; 31
2. $2 FOR EACH DOLLAR OF A N ELIGIBLE PRIVATE 32
CONTRIBUTION RECEIVE D FOR THE NEXT $100 OF EACH ELIGIBLE PRI VATE 33 8 SENATE BILL 358
CONTRIBUTION ; AND 1
3. $0 FOR EACH DOLLAR OF A N ELIGIBLE PRIVATE 2
CONTRIBUTION RECEIVE D FOR THE REMAINING $100 OF EACH ELIGIBLE PRIVATE 3
CONTRIBUTION ; OR 4
(III) FOR EACH ELIGIBLE CA NDIDATE FOR MEMBER O F THE 5
HOUSE OF DELEGATES, MATCHING DOLLARS EQU AL TO: 6
1. $6 FOR EACH DOLLAR OF A N ELIGIBLE PRIVATE 7
CONTRIBUTION RECEIVE D FOR THE FIRST $50 OF EACH ELIGIBLE PRI VATE 8
CONTRIBUTION ; 9
2. $2 FOR EACH DOLLAR OF A N ELIGIBLE PRIVATE 10
CONTRIBUTION RECEIVE D FOR THE NEXT $100 OF EACH ELIGIBLE PRI VATE 11
CONTRIBUTION ; AND 12
3. $0 FOR EACH DOLLAR OF A N ELIGIBLE PRIVATE 13
CONTRIBUTION RECEIVE D FOR THE REMAINING $100 OF EACH ELIGIBL E PRIVATE 14
CONTRIBUTION . 15
(3) The total public contribution payable to [a gubernatorial ticket] AN 16
ELIGIBLE CANDIDATE for either a primary or general election may not exceed: 17
(I) $3,000,000 FOR A GUBERNATORIAL TICKET; 18
(II) $150,000 FOR A CANDIDATE FOR STATE SENATOR; AND 19
(III) $90,000 FOR A CANDIDATE FOR MEMBER OF THE HOUSE OF 20
DELEGATES. 21
(4) The State Board may not distribute matching dollars from the Fund to 22
[a gubernatorial ticket] AN ELIGIBLE CANDIDAT E for: 23
(i) a contribution or loans from the [gubernatorial ticket] ELIGIBLE 24
CANDIDATE or the spouse of [a member of the gubernatorial ticket] THE ELIGIBLE 25
CANDIDATE; or 26
(ii) an in–kind contribution of property, goods, or services. 27
(5) [A gubernatorial ticket] AN ELIGIBLE CANDIDATE that is unopposed 28
in a primary election shall receive one–third of the public contribution amount the 29
[gubernatorial ticket] ELIGIBLE CANDIDATE would otherwise be entitled to receive. 30
SENATE BILL 358 9
15–108. 1
(a) [A gubernatorial ticket] AN ELIGIBLE CANDIDATE may withdraw from 2
participation as a publicly funded candidate at any time before a public contribution is 3
received by the [gubernatorial ticket’s] ELIGIBLE CANDIDATE ’S campaign finance entity. 4
(b) If a public contribution has been received by an eligible [gubernatorial 5
ticket’s] CANDIDATE’S campaign finance entity, the eligible candidate may withdraw from 6
participating if the [gubernatorial ticket] ELIGIBLE CANDIDATE : 7
(1) files a statement of withdrawal on a form prescribed by the State Board; 8
and 9
(2) repays to the Fund the full amount of any public contribution received, 10
with interest established in regulation by the State Board. 11
15–109. 12
(a) A public contribution may be spent only: 13
(1) in accordance with § 13–218 of this article; 14
(2) to further the [gubernatorial ticket’s] ELIGIBLE CANDIDATE ’S 15
nomination or election; 16
(3) for expenses incurred not later than 45 days after the election for which 17
the public contribution was made; 18
(4) for purposes that do not violate State law; and 19
(5) for an expenditure that is accompanied by a receipt. 20
(b) An eligible [gubernatorial ticket] CANDIDATE may not make: 21
(1) a transfer; or 22
(2) an expenditure relating to fundraising activity by any other political 23
committee organized under this article. 24
(c) (1) Any part of a public contribution that is not spent shall be repaid to the 25
Comptroller for redeposit in the Fund not later than 90 days after the election for which 26
the public contribution was made. 27
(2) In computing whether part of a public contribution is not spent, all 28
private contributions to the [gubernatorial ticket] ELIGIBLE CANDIDATE shall be treated 29
as spent before the expenditure of any of the public contribution. 30 10 SENATE BILL 358
(d) The [members of a gubernatorial ticket] ELIGIBLE CANDIDATE and the 1
responsible officers of the campaign finance entity that received a public contribution are 2
jointly and severally personally liable civilly and criminally for repaying to the Comptroller 3
any part of a public contribution that is not spent or that was spent in violation of 4
subsection (a) of this section. 5
15–111. 6
(a) (1) Subject to § 15–103 of this title, the State Board shall administer this 7
title. 8
(2) The State Board may request the assistance of the Comptroller to 9
administer this title. 10
(b) (1) The State Board shall adopt comprehensive regulations to implement 11
this title. 12
(2) The regulations shall include provisions relating to: 13
(i) the deadline for [a gubernatorial ticket] AN ELIGIBLE 14
CANDIDATE to submit a request for a public contribution; 15
(ii) the dates when the State Board will authorize, and the 16
Comptroller will make, distributions of public contributions to [gubernatorial tickets] 17
ELIGIBLE CANDIDATES in accordance with this title; 18
(iii) a proportionate distribution when there is not, or may not be, 19
sufficient money in the Fund; 20
(iv) thresholds for in–kind contributions that are not considered 21
contributions or expenditures for the purposes of this title; 22
(v) distributions to a write–in gubernatorial ticket; and 23
(vi) the purposes for which a public contribution may not be used. 24
15–113. 25
(a) In this section, “person” includes a political committee. 26
(b) (1) This subsection applies only to violations committed, as applicable, by: 27
(i) the eligible [gubernatorial ticket] CANDIDATE; 28
(ii) the eligible [gubernatorial ticket’s] CANDIDATE’S campaign 29 SENATE BILL 358 11
finance entity; 1
(iii) the chairman of the eligible [gubernatorial ticket’s] 2
CANDIDATE’S campaign finance entity; 3
(iv) the treasurer of the eligible [gubernatorial ticket’s] 4
CANDIDATE’S campaign finance entity; or 5
(v) a person acting on behalf of a person listed in item (i), (ii), (iii), or 6
(iv) of this paragraph. 7
(2) The State Board may impose a civil penalty in accordance with this 8
section for the following violations: 9
(i) making a disbursement in a manner not authorized under § 10
13–218(b)(2), (c), and (d) of this article; 11
(ii) failure to maintain a campaign bank account as required under 12
§ 13–220(a) of this article; 13
(iii) making a disbursement by a method not authorized under § 14
13–220(d) of this article; 15
(iv) failure to maintain detailed and accurate account books and 16
records as required under § 13–221 of this article; 17
(v) fund–raising during the General Assembly session in a manner 18
not authorized in § 13–235 of this article; 19
(vi) failure to report all contributions received and expenditures 20
made as required in § 13–304(b) of this article; 21
(vii) failure to include an authority line on campaign material as 22
required in § 13–401 of this article; or 23
(viii) failure to retain a copy of campaign material as required in § 24
13–403 of this article. 25
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26
January 1, 2023. 27