EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0906* HOUSE BILL 906 G1 5lr2261 CF SB 633 By: Delegate Palakovich Carr Introduced and read first time: January 31, 2025 Assigned to: Ways and Means A BILL ENTITLED AN ACT concerning 1 Campaign Finance – Political Organizations – Disclosures on Solicitations 2 (Stop Scam PACs Act) 3 FOR the purpose of requiring certain political organizations to include certain disclaimers 4 and statements on certain solicitations; authorizing the State Administrator of 5 Elections to investigate a potential violation of this Act; and generally relating to 6 disclosure requirements for political organizations. 7 BY repealing and reenacting, without amendments, 8 Article – Election Law 9 Section 1–101(a) and (ff) 10 Annotated Code of Maryland 11 (2022 Replacement Volume and 2024 Supplement) 12 BY adding to 13 Article – Election Law 14 Section 13–223 15 Annotated Code of Maryland 16 (2022 Replacement Volume and 2024 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 1–101. 21 (a) In this article the following words have the meanings indicated unless a 22 different meaning is clearly intended from the context. 23 (ff) “Political action committee” means a political committee that is not: 24 2 HOUSE BILL 906 (1) a political party; 1 (2) a central committee; 2 (3) a slate; 3 (4) a legislative party caucus committee; 4 (5) an authorized candidate campaign committee; or 5 (6) a ballot issue committee. 6 13–223. 7 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 8 INDICATED. 9 (2) “DISBURSEMENT ” MEANS: 10 (I) AN INDEPENDENT EXPEN DITURE FOR CAMPAIGN MATERIAL 11 THAT IS A PUBLIC COM MUNICATION, AS DEFINED IN § 13–306 OF THIS TITLE; 12 (II) A DISBURSEMENT FOR E LECTIONEERING 13 COMMUNICATIONS , AS DEFINED IN § 13–307 OF THIS TITLE; OR 14 (III) A POLITICAL DISBURSE MENT, AS DEFINED IN § 13–309.2 OF 15 THIS TITLE. 16 (3) “DONATION” HAS THE MEANING STAT ED IN § 13–306, § 13–307, 17 OR § 13–309.2 OF THIS TITLE. 18 (4) “SOLICITATION” MEANS A REQUEST FOR CONTRIBUTIONS OR 19 DONATIONS TO A PERSO N DISSEMINATED THROU GH ANY MEDIUM . 20 (B) THIS SECTION APPLIES ONLY TO: 21 (1) A PERSON REQUIRED TO FILE REPORTS UNDER § 13–306, § 22 13–307, OR § 13–309.2 OF THIS TITLE; AND 23 (2) A POLITICAL ACTION C OMMITTEE THAT : 24 (I) IS NOT AFFILIATED WI TH A CORPORATION OR LABOR 25 ORGANIZATION ; AND 26 HOUSE BILL 906 3 (II) EXCLUSIVELY MAKES IN DEPENDENT EXPENDITUR ES OR 1 DISBURSEMENTS FOR EL ECTIONEERING COMMUNI CATIONS. 2 (C) IF A PERSON SUBJECT T O THIS SECTION SOLIC ITS FOR A CANDIDATE OR 3 A POLITICAL PARTY AN D USES A CANDIDATE’S NAME, IMAGE, OR LIKENESS IN THE 4 SOLICITATION, THE PERSON SHALL CLEARLY AND CONSPICU OUSLY INCLUDE ON 5 THE SOLICITATION THE FOLLOWING DISCLAIMER OR A SUBSTANTIALLY S IMILAR 6 DISCLAIMER: “THE (NAME, IMAGE, OR LIKENESS) OF (NAME OF CANDIDATE OR 7 POLITICAL PARTY) ON THIS SOLICITATION IS INCLUDED WITHOUT THE KNOWLEDGE 8 OR PERMISSION OF (NAME OF CANDIDATE OR POLITICAL PARTY ), AND DOES NOT 9 IMPLY AUTHORIZATION OR APP ROVAL BY (NAME OF CANDIDATE OR POLITICAL 10 PARTY).”. 11 (D) IF A PERSON SUBJECT TO TH IS SECTION SOLICITS FOR WHAT AP PEARS 12 TO BE A CHARITABLE P URPOSE, THE PERSON SHALL INCLUDE ON EAC H 13 SOLICITATION DISSEMI NATED BY THE PERSON A CLEAR AND CONSPICU OUS 14 STATEMENT THAT CONTR IBUTIONS OR DONATION S TO THE PERSON : 15 (1) ARE NOT NECESSARILY USED FOR CHARITABLE PURPOSES; AND 16 (2) ARE NOT TAX–DEDUCTIBLE. 17 (E) (1) THE STATE ADMINISTRATOR , OR THE STATE ADMINISTRATOR ’S 18 DESIGNEE, MAY INVESTIGATE A PO TENTIAL VIOLATION OF THIS SECTION. 19 (2) THE STATE ADMINISTRATOR , OR THE STATE ADMINISTRATOR ’S 20 DESIGNEE, SHALL: 21 (I) NOTIFY A PERSON WHO IS SUBJECT TO AN INV ESTIGATION 22 UNDER THIS SUBSECTIO N OF THE CIRCUMSTANC ES THAT GAVE RISE TO THE 23 INVESTIGATION ; AND 24 (II) PROVIDE THE PERSON A MPLE OPPORTUNITY TO BE HEARD 25 AT A PUBLIC MEETING OF THE STATE BOARD. 26 (3) (I) IN FURTHERANCE OF AN INVE STIGATION UNDER THIS 27 SUBSECTION, THE STATE ADMINISTRATOR , OR THE STATE ADMINISTRATOR ’S 28 DESIGNEE, MAY ISSUE A SUBPOENA FOR THE ATTENDANCE O F A WITNESS TO 29 TESTIFY OR THE PRODU CTION OF RECORDS . 30 (II) A SUBPOENA ISSUED UNDE R THIS PARAGRA PH SHALL BE 31 SERVED IN ACCORDANCE WITH THE MARYLAND RULES. 32 4 HOUSE BILL 906 (III) FOR A SUBPOENA TO BE ISSUED UNDER THIS PA RAGRAPH, 1 THE STATE ADMINISTRATOR SHALL M AKE A FINDING THAT T HE SUBPOENA IS 2 NECESSARY TO AND IN FURTHERANCE OF AN IN VESTIGATION BEING CO NDUCTED 3 UNDER THIS SUBSECTIO N. 4 (IV) A FILING SUBMITTED TO A COURT WITH RESPECT TO A 5 SUBPOENA UNDER THIS PARAGRAPH SHALL BE S EALED ON FILING . 6 (V) IF A PERSON FAILS TO COMPLY WITH A SUBPOE NA ISSUED 7 UNDER THIS PARAGRAPH , ON PETITION OF THE STATE ADMINISTRATOR , A CIRCUIT 8 COURT OF COMPETENT J URISDICTION MAY COMP EL COMPLIANCE WITH T HE 9 SUBPOENA. 10 (4) AT THE CONCLUSION OF THE INVESTIGATION AN D FOLLOWING 11 THE HEARING UNDER PA RAGRAPH (2)(II) OF THIS SUBSECTION , THE STATE BOARD 12 SHALL ISSUE A PUBLIC REPORT OF ITS FIND INGS AND MAY: 13 (I) PROHIBIT A PERSON WH O VIOLATED THIS SECT ION FROM 14 SOLICITING CONTRIBUT IONS OR DONATIONS FO R A PERIOD OF TIME D ETERMINED 15 BY THE STATE BOARD; OR 16 (II) IMPOSE A CIVIL PENAL TY ON A PERSON WHO V IOLATED THIS 17 SECTION AS PROVIDED IN SUBSECTION (F) OF THIS SECTION. 18 (F) (1) A PERSON WHO VIOLATES THIS SECTION IS NOT SUBJECT TO: 19 (I) A CRIMINAL PENALTY U NDER § 13–603 OF THIS TITLE; 20 (II) A CIVIL PENALTY UNDE R § 13–604 OF THIS TITLE; OR 21 (III) INVESTIGATION BY THE STATE PROSECUTOR . 22 (2) THE STATE BOARD MAY IMPOSE A CI VIL PENALTY FOR A 23 VIOLATION OF THIS SE CTION. 24 (3) A CIVIL PENALTY: 25 (I) SHALL BE ASSESSED IN THE MANNER SPECIFIED IN § 26 13–604.1 OF THIS TITLE; AND 27 (II) MAY NOT EXCEED $10,000. 28 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 29 1, 2025. 30 HOUSE BILL 906 5