EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0111*
SENATE BILL 111
G1 3lr0656
(PRE–FILED) CF HB 441
By: Senator Kagan
Requested: November 1, 2022
Introduced and read first time: January 11, 2023
Assigned to: Education, Energy, and the Environment
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 6, 2023
CHAPTER ______
AN ACT concerning 1
Election Law – Campaign Finance – Draft Committees and Exploratory 2
Committees 3
FOR the purpose of applying certain campaign finance requirements for a political 4
committee to draft committees and exploratory committees; establishing 5
requirements and prohibitions for draft committees and exploratory committees 6
relating to the establishment of the committees, receipt of funds, and permissible 7
disbursements; requiring an authorized candidate campaign committee that results 8
from the draft committee or exploratory committee to make any equipment 9
purchases from the draft committee or exploratory committee at the fair market 10
value of the equipment; requiring a draft committee or an exploratory committee to 11
dispense of remaining funds in a certain manner in a certain time frame; 12
establishing that a draft committee or an exploratory committee is not subject to any 13
contribution limit; and generally relating to draft committees and exploratory 14
committees. 15
BY repealing and reenacting, without amendments, 16
Article – Election Law 17
Section 1–101(a), (l), and (gg) 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2022 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – Election Law 22 2 SENATE BILL 111
Section 1–101(k) 1
Annotated Code of Maryland 2
(2022 Replacement Volume and 2022 Supplement) 3
BY adding to 4
Article – Election Law 5
Section 13–107 6
Annotated Code of Maryland 7
(2022 Replacement Volume and 2022 Supplement) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Election Law 11
1–101. 12
(a) In this article the following words have the meanings indicated unless a 13
different meaning is clearly intended from the context. 14
(k) (1) “Campaign material” means any material that: 15
(i) contains text, graphics, or other images; 16
(ii) relates to a candidate, a [prospective] POTENTIAL candidate, or 17
the approval or rejection of a question or prospective question; and 18
(iii) is published, distributed, or disseminated. 19
(2) “Campaign material” includes: 20
(i) a qualifying paid digital communication; 21
(ii) any other material transmitted by or appearing on the Internet 22
or other electronic medium; 23
(iii) an oral commercial campaign advertisement; and 24
(iv) an automated or prerecorded oral communication. 25
(l) (1) “Candidate” means an individual who files a certificate of candidacy for 26
a public or party office. 27
(2) “Candidate” includes: 28
(i) an incumbent judge of the Court of Appeals or Court of Special 29
Appeals at an election for continuance in office; and 30 SENATE BILL 111 3
(ii) an individual, prior to that individual filing a certificate of 1
candidacy, if a campaign finance entity has been established on behalf of that individual. 2
(gg) “Political committee” means a combination of two or more individuals that has 3
as its major purpose promoting the success or defeat of a candidate, political party, 4
question, or prospective question submitted to a vote at any election. 5
13–107. 6
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(2) (I) “DONATION” MEANS THE GIFT OR TR ANSFER, OR PROMISE 9
OF GIFT OR TRANSFER , OF MONEY OR OTHER TH ING OF VALUE TO A PE RSON THAT 10
MAKES DISBURSEMENTS FOR A DRAFT COMMITTE E OR AN EXPLORATORY 11
COMMITTEE . 12
(II) “DONATION” DOES NOT INCLUDE ANY AMOUNT OF MONEY 13
OR ANY OTHER THIN G OF VALUE: 14
1. RECEIVED BY A PERSON IN THE ORDINARY COUR SE OF 15
ANY TRADE OR BUSINES S CONDUCTED BY THE P ERSON, WHETHER FOR PROFIT O R 16
NOT FOR PROFIT , OR IN THE FORM OF IN VESTMENTS IN THE PER SON’S BUSINESS; 17
OR 18
2. A. THAT THE DONOR AND T HE PERSON RECEIVING 19
THE MONEY OR THING O F VALUE EXPRESSLY AG REE IN WRITING MAY N OT BE USED 20
FOR A DRAFT COMMITTE E OR AN EXPLORATORY COMMITTEE; AND 21
B. IN THE CASE OF A MON ETARY DONATION , IS 22
DEPOSITED IN A SEPAR ATE BANK ACCOUNT THA T IS NEVER USED FOR A DRAFT 23
COMMITTEE OR AN EXPLORATO RY COMMITTEE . 24
(2) (3) “DRAFT COMMITTEE ” MEANS AN ENTITY THAT IS 25
ORGANIZED TO ENCOURA GE A POTENTIAL CANDI DATE TO RUN FOR OFFI CE BUT IS 26
NOT AUTHORIZED BY TH E POTENTIAL CANDIDAT E. 27
(3) (4) (I) “EXPLORATORY COMMITTEE ” MEANS AN ENTITY 28
ESTABLISHED BY A POT ENTIAL CANDIDATE FOR A PUBLIC OFFICE TO D ETERMINE 29
THE POTENTIAL CANDID ATE’S VIABILITY FOR THAT PUBLIC OFFICE. 30
(II) “EXPLORATORY COMMITTEE ” DOES NOT INCLUDE A 31
POLITICAL COMMITTEE . 32
4 SENATE BILL 111
(B) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECTION §§ 13–220.1 AND 1
13–220.2 OF THIS TITLE AND SUBTITLE 2, PART V OF THIS TITLE, ALL PROVISIONS 2
OF THIS TITLE THAT A PPLY TO A POLITICAL COMMITTEE ALSO APPLY TO A DRAFT 3
COMMITTEE OR AN EXPL ORATORY COMMITTEE . 4
(C) A PERSON MAY ESTABLISH A DRAFT COMMITTEE FO R A PUBLIC OFFICE 5
FOR AN INDIVIDUAL ON LY IF: 6
(1) THE DRAFT COMMITTEE IS NOT ESTABLISHED I N COORDINATION 7
OR COOPERATION WITH THE INDIVIDUAL IT IN TENDS TO ENCOURAGE T O SEEK 8
PUBLIC OFFICE; AND 9
(2) THE INDIVIDUAL THE D RAFT COMMITTEE INTEN DS TO 10
ENCOURAGE TO SEE K PUBLIC OFFICE IS N OT A CANDIDATE FOR THAT PUBLIC 11
OFFICE. 12
(D) AN INDIVIDUAL WHO IS A CANDIDATE MAY NOT ESTABLISH A DRAFT 13
COMMITTEE OR AN EXPL ORATORY COMMITTEE FO R A PUBLIC OFFICE . 14
(E) SUBJECT TO SUBSECTION (F) OF THIS SECTION , A DRAFT COMMITTEE 15
OR AN EXPLORATORY COMMITTE E FOR AN INDIVIDUAL MAY RECEIVE FUNDS AN D 16
MAKE DISBURSEMENTS T O DETERMINE THE INDI VIDUAL’S VIABILITY FOR A PU BLIC 17
OFFICE. 18
(F) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE MAY MAKE A 19
DISBURSEMENT ONLY FO R THE FOLLOWING ACTI VITIES: 20
(1) CONDUCTING SURVEYS O R POLLS REGARDING VI ABILITY OF THE 21
POTENTIAL CANDIDATE FOR A PUBLIC OFFICE ; 22
(2) DIRECT MAILINGS AND OTHER COMMUNICATIONS TO POTENTIAL 23
VOTERS; 24
(3) EMPLOYING STAFF ; AND 25
(4) ESTABLISHING A WEBSI TE; 26
(5) A QUALIFYING PAID DIGITAL COMMUNICATIO N; 27
(6) RENTING OR LEASING O FFICE SPACE; AND 28
(7) PURCHASING ELECTRONI C EQUIPMENT , INCLUDING COMPUTERS 29
AND TELEPHONES . 30
SENATE BILL 111 5
(G) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE MAY NOT PAY 1
ANY EXPENSE IN ADVAN CE FOR GOODS OR SERV ICES TO BE USED BY THE POLITI CAL 2
COMMITTEE OF THE POT ENTIAL CANDIDATE ONC E THE POTENTIAL CAND IDATE 3
REGISTERS AN AUTHORI ZED CANDIDATE CAMPAI GN COMMITTEE . 4
(H) IF AN AUTHORIZED CAND IDATE CAMPAIGN COMMI TTEE RESULTS FROM 5
THE DRAFT COMMITTEE OR EXPLORATORY COMMI TTEE, ANY PURCHASES MADE BY 6
THE AUTHORIZED CANDI DATE CAMPAIGN COMMIT TEE OF EQUIPMENT FRO M THE 7
DRAFT COMMITTEE OR E XPLORATORY COMMITTEE SHALL BE MADE AT THE FAIR 8
MARKET VALUE OF THE EQUIPMENT. 9
(I) (1) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE SHALL 10
RETURN ANY REMAINING FUNDS RECEIVED UNDER SUBSE CTION (E) OF THIS 11
SECTION IN ACCORDANC E WITH PARAGRAPH (2) OF THIS SUBSECTION W ITHIN 120 12
DAYS AFTER: 13
(I) A POTENTIAL CANDIDAT E OR AN INDIVIDUAL A DRAFT 14
COMMITTEE ENCOURAGED TO SEEK PUBLIC OFFIC E: 15
1. TIMELY FILING A CERTIFICATE OF CANDIDACY FOR A 16
PUBLIC OFFICE UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE; OR 17
2. PUBLICLY ANNOUNCING THAT THE INDIVIDUAL HAS 18
DECLINED TO FILE A C ERTIFICATE OF CANDID ACY FOR PUBLIC OFFIC E; OR 19
(II) THE DEADLINE FOR FIL ING A CERTIFICATE OF CANDIDACY 20
UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE HAS PASSED. 21
(2) A DRAFT COMMITTEE OR A N EXPLORATORY COMMIT TEE SHALL 22
RETURN FUNDS UNDER P ARAGRAPH (1) OF THIS SUBSECTION : 23
(I) PRO RATA TO THE CONT RIBUTORS; OR 24
(II) PAY THE REMAINING FUNDS TO: 25
1. IF THE POTENTIAL CAN DIDATE OR INDIVIDUAL THE 26
DRAFT COMMITTEE ENCO URAGED TO SEEK PUBLI C OFFICE IS A MEMBER OF A 27
POLITICAL PARTY : 28
A. THE STATE CENTRAL COMMITT EE OF THE POLITICAL 29
PARTY; OR 30
B. A LOCAL CENTRAL COMM ITTEE OF THE POLITI CAL 31
PARTY; 32 6 SENATE BILL 111
2. IF THE POTENTIAL CAN DIDATE OR INDIVIDUAL THE 1
DRAFT COMMITTEE ENCO URAGED TO SEEK PUBLI C OFFICE ESTABLISHES AN 2
AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE , SUBJECT TO § 13–226 OF THIS 3
TITLE, THE AUTHORIZED CANDI DATE CAMPAIGN COMMIT TEE; 4
3. A NONPROFIT ORGANIZA TION EXEMPT FROM 5
TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; OR 6
4. THE FAIR CAMPAIGN FINANCING FUND 7
ESTABLISHED UNDER § 15–103 OF THIS ARTICLE. 8
(J) A DONATION TO A DRAFT COMMITTEE OR AN EXPL ORATORY COMMITTEE 9
IS NOT SUBJECT TO ANY LIMIT S. 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2023. 12
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.