Maryland 2023 Regular Session

Maryland Senate Bill SB111 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *sb0111*
96
107 SENATE BILL 111
118 G1 3lr0656
12- (PRE–FILED) CF HB 441
9+ (PRE–FILED)
1310 By: Senator Kagan
1411 Requested: November 1, 2022
1512 Introduced and read first time: January 11, 2023
1613 Assigned to: Education, Energy, and the Environment
17-Committee Report: Favorable with amendments
18-Senate action: Adopted
19-Read second time: March 6, 2023
2014
21-CHAPTER ______
15+A BILL ENTITLED
2216
2317 AN ACT concerning 1
2418
2519 Election Law – Campaign Finance – Draft Committees and Exploratory 2
2620 Committees 3
2721
2822 FOR the purpose of applying certain campaign finance requirements for a political 4
2923 committee to draft committees and exploratory committees; establishing 5
3024 requirements and prohibitions for draft committees and exploratory committees 6
3125 relating to the establishment of the committees, receipt of funds, and permissible 7
32-disbursements; requiring an authorized candidate campaign committee that results 8
33-from the draft committee or exploratory committee to make any equipment 9
34-purchases from the draft committee or exploratory committee at the fair market 10
35-value of the equipment; requiring a draft committee or an exploratory committee to 11
36-dispense of remaining funds in a certain manner in a certain time frame; 12
37-establishing that a draft committee or an exploratory committee is not subject to any 13
38-contribution limit; and generally relating to draft committees and exploratory 14
39-committees. 15
26+disbursements; and generally relating to draft committees and exploratory 8
27+committees. 9
4028
41-BY repealing and reenacting, without amendments, 16
42- Article – Election Law 17
43-Section 1–101(a), (l), and (gg) 18
44- Annotated Code of Maryland 19
45- (2022 Replacement Volume and 2022 Supplement) 20
29+BY repealing and reenacting, without amendments, 10
30+ Article – Election Law 11
31+Section 1–101(a), (l), and (gg) 12
32+ Annotated Code of Maryland 13
33+ (2022 Replacement Volume and 2022 Supplement) 14
4634
47-BY repealing and reenacting, with amendments, 21
48- Article – Election Law 22 2 SENATE BILL 111
35+BY adding to 15
36+ Article – Election Law 16
37+Section 13–107 17
38+ Annotated Code of Maryland 18
39+ (2022 Replacement Volume and 2022 Supplement) 19
40+
41+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
42+That the Laws of Maryland read as follows: 21
43+
44+Article – Election Law 22
45+
46+1–101. 23
47+ 2 SENATE BILL 111
4948
5049
51- Section 1–101(k) 1
52- Annotated Code of Maryland 2
53- (2022 Replacement Volume and 2022 Supplement) 3
50+ (a) In this article the following words have the meanings indicated unless a 1
51+different meaning is clearly intended from the context. 2
5452
55-BY adding to 4
56- Article – Election Law 5
57-Section 13–107 6
58- Annotated Code of Maryland 7
59- (2022 Replacement Volume and 2022 Supplement) 8
53+ (l) (1) “Candidate” means an individual who files a certificate of candidacy for 3
54+a public or party office. 4
6055
61- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
62-That the Laws of Maryland read as follows: 10
56+ (2) “Candidate” includes: 5
6357
64-Article – Election Law 11
58+ (i) an incumbent judge of the Court of Appeals or Court of Special 6
59+Appeals at an election for continuance in office; and 7
6560
66-1–101. 12
61+ (ii) an individual, prior to that individual filing a certificate of 8
62+candidacy, if a campaign finance entity has been established on behalf of that individual. 9
6763
68- (a) In this article the following words have the meanings indicated unless a 13
69-different meaning is clearly intended from the context. 14
64+ (gg) “Political committee” means a combination of two or more individuals that has 10
65+as its major purpose promoting the success or defeat of a candidate, political party, 11
66+question, or prospective question submitted to a vote at any election. 12
7067
71- (k) (1) “Campaign material” means any material that: 15
68+13–107. 13
7269
73- (i) contains text, graphics, or other images; 16
70+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
71+INDICATED. 15
7472
75- (ii) relates to a candidate, a [prospective] POTENTIAL candidate, or 17
76-the approval or rejection of a question or prospective question; and 18
73+ (2) “DRAFT COMMITTEE” MEANS AN ENTITY THAT IS ORGANIZED TO 16
74+ENCOURAGE A POTENTIA L CANDIDATE TO RUN F OR OFFICE BUT IS NOT AUTHORIZED 17
75+BY THE POTENTIAL CANDIDATE . 18
7776
78- (iii) is published, distributed, or disseminated. 19
77+ (3) (I) “EXPLORATORY COMMITTEE” MEANS AN ENTITY 19
78+ESTABLISHED BY A POTENTIAL CANDIDATE FOR A PUBL IC OFFICE TO DETERMI NE 20
79+THE POTENTIAL CANDID ATE’S VIABILITY FOR THAT PUBLIC OFFICE. 21
7980
80- (2) “Campaign material” includes: 20
81+ (II) “EXPLORATORY COMMITTEE” DOES NOT INCLUDE A 22
82+POLITICAL COMMITTEE . 23
8183
82- (i) a qualifying paid digital communication; 21
84+ (B) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECT ION, ALL PROVISIONS 24
85+OF THIS TITLE THAT A PPLY TO A POLITICAL COMMITTE E ALSO APPLY TO A DRAFT 25
86+COMMITTEE OR AN EXPL ORATORY COMMITTEE . 26
8387
84- (ii) any other material transmitted by or appearing on the Internet 22
85-or other electronic medium; 23
88+ (C) A PERSON MAY ESTABLISH A DRAF T COMMITTEE FOR A PU BLIC OFFICE 27
89+FOR AN INDIVIDUAL ON LY IF: 28
8690
87- (iii) an oral commercial campaign advertisement; and 24
88-
89- (iv) an automated or prerecorded oral communication. 25
90-
91- (l) (1) “Candidate” means an individual who files a certificate of candidacy for 26
92-a public or party office. 27
93-
94- (2) “Candidate” includes: 28
95-
96- (i) an incumbent judge of the Court of Appeals or Court of Special 29
97-Appeals at an election for continuance in office; and 30 SENATE BILL 111 3
91+ (1) THE DRAFT COMMITTEE IS NOT ESTABLISHED IN COORD INATION 29
92+OR COOPERATION WITH THE INDIVIDUAL IT IN TENDS TO ENCOURAGE T O SEEK 30
93+PUBLIC OFFICE; AND 31
94+ SENATE BILL 111 3
9895
9996
97+ (2) THE INDIVIDUAL THE D RAFT COMMITTEE INTEND S TO 1
98+ENCOURAGE TO SEEK PUBLIC OFFICE IS NOT A CANDIDATE . 2
10099
101- (ii) an individual, prior to that individual filing a certificate of 1
102-candidacy, if a campaign finance entity has been established on behalf of that individual. 2
100+ (D) AN INDIVIDUAL WHO IS A CANDIDATE MAY NOT ESTABLISH A DRAFT 3
101+COMMITTEE OR AN EXPL ORATORY COMMITTEE FO R A PUBLIC OFFICE. 4
103102
104- (gg) “Political committee” means a combination of two or more individuals that has 3
105-as its major purpose promoting the success or defeat of a candidate, political party, 4
106-question, or prospective question submitted to a vote at any election. 5
103+ (E) SUBJECT TO SUBSECTION (F) OF THIS SECTION , A DRAFT COMMITTEE 5
104+OR AN EXPLORATORY COMMITTE E FOR AN INDIVIDUAL MAY RECEIVE FUNDS AN D 6
105+MAKE DISBURSEMENTS T O DETERMINE THE INDI VIDUAL’S VIABILITY FOR A PUBLIC 7
106+OFFICE. 8
107107
108-13–107. 6
108+ (F) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE MAY MAKE A 9
109+DISBURSEMENT ONLY FOR THE FOLLOWING ACTIVI TIES: 10
109110
110- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 7
111-INDICATED. 8
111+ (1) CONDUCTING SURVEYS OR POLLS REGARDING VIAB ILITY OF THE 11
112+POTENTIAL CANDIDATE FOR A PUBLIC OFFICE; 12
112113
113- (2) (I) “DONATION” MEANS THE GIFT OR TR ANSFER, OR PROMISE 9
114-OF GIFT OR TRANSFER , OF MONEY OR OTHER TH ING OF VALUE TO A PE RSON THAT 10
115-MAKES DISBURSEMENTS FOR A DRAFT COMMITTE E OR AN EXPLORATORY 11
116-COMMITTEE . 12
114+ (2) DIRECT MAILINGS AND O THER COMMUNICATIONS TO POTENTIAL 13
115+VOTERS; 14
117116
118- (II) “DONATION” DOES NOT INCLUDE ANY AMOUNT OF MONEY 13
119-OR ANY OTHER THIN G OF VALUE: 14
117+ (3) EMPLOYING STAFF ; AND 15
120118
121- 1. RECEIVED BY A PERSON IN THE ORDINARY COUR SE OF 15
122-ANY TRADE OR BUSINES S CONDUCTED BY THE P ERSON, WHETHER FOR PROFIT O R 16
123-NOT FOR PROFIT , OR IN THE FORM OF IN VESTMENTS IN THE PER SON’S BUSINESS; 17
124-OR 18
119+ (4) ESTABLISHING A WEBSIT E. 16
125120
126- 2. A. THAT THE DONOR AND T HE PERSON RECEIVING 19
127-THE MONEY OR THING O F VALUE EXPRESSLY AG REE IN WRITING MAY N OT BE USED 20
128-FOR A DRAFT COMMITTE E OR AN EXPLORATORY COMMITTEE; AND 21
121+ (G) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE MAY NOT PAY 17
122+ANY EXPENSE IN ADVAN CE FOR GOODS OR SERV ICES TO BE USED BY T HE POLITICAL 18
123+COMMITTEE OF THE POTENTIAL CANDIDATE ONCE THE POTENTIAL C ANDIDATE 19
124+REGISTERS AN AUTHORI ZED CANDIDATE CAMPAI GN COMMITTEE. 20
129125
130- B. IN THE CASE OF A MON ETARY DONATION , IS 22
131-DEPOSITED IN A SEPAR ATE BANK ACCOUNT THA T IS NEVER USED FOR A DRAFT 23
132-COMMITTEE OR AN EXPLORATO RY COMMITTEE . 24
133-
134- (2) (3) “DRAFT COMMITTEE ” MEANS AN ENTITY THAT IS 25
135-ORGANIZED TO ENCOURA GE A POTENTIAL CANDI DATE TO RUN FOR OFFI CE BUT IS 26
136-NOT AUTHORIZED BY TH E POTENTIAL CANDIDAT E. 27
137-
138- (3) (4) (I) “EXPLORATORY COMMITTEE ” MEANS AN ENTITY 28
139-ESTABLISHED BY A POT ENTIAL CANDIDATE FOR A PUBLIC OFFICE TO D ETERMINE 29
140-THE POTENTIAL CANDID ATE’S VIABILITY FOR THAT PUBLIC OFFICE. 30
141-
142- (II) “EXPLORATORY COMMITTEE ” DOES NOT INCLUDE A 31
143-POLITICAL COMMITTEE . 32
144- 4 SENATE BILL 111
145-
146-
147- (B) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECTION §§ 13–220.1 AND 1
148-13–220.2 OF THIS TITLE AND SUBTITLE 2, PART V OF THIS TITLE, ALL PROVISIONS 2
149-OF THIS TITLE THAT A PPLY TO A POLITICAL COMMITTEE ALSO APPLY TO A DRAFT 3
150-COMMITTEE OR AN EXPL ORATORY COMMITTEE . 4
151-
152- (C) A PERSON MAY ESTABLISH A DRAFT COMMITTEE FO R A PUBLIC OFFICE 5
153-FOR AN INDIVIDUAL ON LY IF: 6
154-
155- (1) THE DRAFT COMMITTEE IS NOT ESTABLISHED I N COORDINATION 7
156-OR COOPERATION WITH THE INDIVIDUAL IT IN TENDS TO ENCOURAGE T O SEEK 8
157-PUBLIC OFFICE; AND 9
158-
159- (2) THE INDIVIDUAL THE D RAFT COMMITTEE INTEN DS TO 10
160-ENCOURAGE TO SEE K PUBLIC OFFICE IS N OT A CANDIDATE FOR THAT PUBLIC 11
161-OFFICE. 12
162-
163- (D) AN INDIVIDUAL WHO IS A CANDIDATE MAY NOT ESTABLISH A DRAFT 13
164-COMMITTEE OR AN EXPL ORATORY COMMITTEE FO R A PUBLIC OFFICE . 14
165-
166- (E) SUBJECT TO SUBSECTION (F) OF THIS SECTION , A DRAFT COMMITTEE 15
167-OR AN EXPLORATORY COMMITTE E FOR AN INDIVIDUAL MAY RECEIVE FUNDS AN D 16
168-MAKE DISBURSEMENTS T O DETERMINE THE INDI VIDUAL’S VIABILITY FOR A PU BLIC 17
169-OFFICE. 18
170-
171- (F) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE MAY MAKE A 19
172-DISBURSEMENT ONLY FO R THE FOLLOWING ACTI VITIES: 20
173-
174- (1) CONDUCTING SURVEYS O R POLLS REGARDING VI ABILITY OF THE 21
175-POTENTIAL CANDIDATE FOR A PUBLIC OFFICE ; 22
176-
177- (2) DIRECT MAILINGS AND OTHER COMMUNICATIONS TO POTENTIAL 23
178-VOTERS; 24
179-
180- (3) EMPLOYING STAFF ; AND 25
181-
182- (4) ESTABLISHING A WEBSI TE; 26
183-
184- (5) A QUALIFYING PAID DIGITAL COMMUNICATIO N; 27
185-
186- (6) RENTING OR LEASING O FFICE SPACE; AND 28
187-
188- (7) PURCHASING ELECTRONI C EQUIPMENT , INCLUDING COMPUTERS 29
189-AND TELEPHONES . 30
190- SENATE BILL 111 5
191-
192-
193- (G) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE MAY NOT PAY 1
194-ANY EXPENSE IN ADVAN CE FOR GOODS OR SERV ICES TO BE USED BY THE POLITI CAL 2
195-COMMITTEE OF THE POT ENTIAL CANDIDATE ONC E THE POTENTIAL CAND IDATE 3
196-REGISTERS AN AUTHORI ZED CANDIDATE CAMPAI GN COMMITTEE . 4
197-
198- (H) IF AN AUTHORIZED CAND IDATE CAMPAIGN COMMI TTEE RESULTS FROM 5
199-THE DRAFT COMMITTEE OR EXPLORATORY COMMI TTEE, ANY PURCHASES MADE BY 6
200-THE AUTHORIZED CANDI DATE CAMPAIGN COMMIT TEE OF EQUIPMENT FRO M THE 7
201-DRAFT COMMITTEE OR E XPLORATORY COMMITTEE SHALL BE MADE AT THE FAIR 8
202-MARKET VALUE OF THE EQUIPMENT. 9
203-
204- (I) (1) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE SHALL 10
205-RETURN ANY REMAINING FUNDS RECEIVED UNDER SUBSE CTION (E) OF THIS 11
206-SECTION IN ACCORDANC E WITH PARAGRAPH (2) OF THIS SUBSECTION W ITHIN 120 12
207-DAYS AFTER: 13
208-
209- (I) A POTENTIAL CANDIDAT E OR AN INDIVIDUAL A DRAFT 14
210-COMMITTEE ENCOURAGED TO SEEK PUBLIC OFFIC E: 15
211-
212- 1. TIMELY FILING A CERTIFICATE OF CANDIDACY FOR A 16
213-PUBLIC OFFICE UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE; OR 17
214-
215- 2. PUBLICLY ANNOUNCING THAT THE INDIVIDUAL HAS 18
216-DECLINED TO FILE A C ERTIFICATE OF CANDID ACY FOR PUBLIC OFFIC E; OR 19
217-
218- (II) THE DEADLINE FOR FIL ING A CERTIFICATE OF CANDIDACY 20
219-UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE HAS PASSED. 21
220-
221- (2) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE SHALL 22
222-RETURN FUNDS UNDER P ARAGRAPH (1) OF THIS SUBSECTION : 23
223-
224- (I) PRO RATA TO THE CONT RIBUTORS; OR 24
225-
226- (II) PAY THE REMAINING FUNDS TO: 25
227-
228- 1. IF THE POTENTIAL CAN DIDATE OR INDIVIDUAL THE 26
229-DRAFT COMMITTEE ENCO URAGED TO SEEK PUBLI C OFFICE IS A MEMBER OF A 27
230-POLITICAL PARTY : 28
231-
232- A. THE STATE CENTRAL COMMITT EE OF THE POLITICAL 29
233-PARTY; OR 30
234-
235- B. A LOCAL CENTRAL COMM ITTEE OF THE POLITI CAL 31
236-PARTY; 32 6 SENATE BILL 111
237-
238-
239-
240- 2. IF THE POTENTIAL CAN DIDATE OR INDIVIDUAL THE 1
241-DRAFT COMMITTEE ENCO URAGED TO SEEK PUBLI C OFFICE ESTABLISHES AN 2
242-AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE , SUBJECT TO § 13–226 OF THIS 3
243-TITLE, THE AUTHORIZED CANDI DATE CAMPAIGN COMMIT TEE; 4
244-
245- 3. A NONPROFIT ORGANIZA TION EXEMPT FROM 5
246-TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; OR 6
247-
248- 4. THE FAIR CAMPAIGN FINANCING FUND 7
249-ESTABLISHED UNDER § 15–103 OF THIS ARTICLE. 8
250-
251- (J) A DONATION TO A DRAFT COMMITTEE OR AN EXPL ORATORY COMMITTEE 9
252-IS NOT SUBJECT TO ANY LIMIT S. 10
253-
254- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
255-October 1, 2023. 12
256-
257-
258-
259-
260-Approved:
261-________________________________________________________________________________
262- Governor.
263-________________________________________________________________________________
264- President of the Senate.
265-________________________________________________________________________________
266- Speaker of the House of Delegates.
126+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
127+October 1, 2023. 22