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. *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 Committee Report: Favorable with amendments House action: Adopted Read second time: March 6, 2025 CHAPTER ______ 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 disclosures on certain solicitations; authorizing the State 5 Administrator of Elections to investigate a potential violation of this Act; and 6 generally relating to 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 2 HOUSE BILL 906 1–101. 1 (a) In this article the following words have the meanings indicated unless a 2 different meaning is clearly intended from the context. 3 (ff) “Political action committee” means a political committee that is not: 4 (1) a political party; 5 (2) a central committee; 6 (3) a slate; 7 (4) a legislative party caucus committee; 8 (5) an authorized candidate campaign committee; or 9 (6) a ballot issue committee. 10 13–223. 11 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 12 INDICATED. 13 (2) “DISBURSEMENT ” MEANS: 14 (I) AN INDEPENDENT EXPEN DITURE FOR CAMPAIGN MATERIAL 15 THAT IS A PUBLIC COM MUNICATION, AS DEFINED IN § 13–306 OF THIS TITLE; 16 (II) A DISBURSEMENT FOR E LECTIONEERING 17 COMMUNICATIONS , AS DEFINED IN § 13–307 OF THIS TITLE; OR 18 (III) A POLITICAL DISBURSE MENT, AS DEFINED IN § 13–309.2 OF 19 THIS TITLE. 20 (3) “DONATION” HAS THE MEANING STAT ED IN § 13–306, § 13–307, 21 OR § 13–309.2 OF THIS TITLE. 22 (4) “SOLICITATION” MEANS A REQUEST FOR CONTRIBUTIONS OR 23 DONATIONS TO A PERSO N DISSEMINATED THROU GH ANY MEDIUM . 24 (B) THIS SECTION APPLIES ONLY TO: 25 (1) A PERSON REQUIRED TO FILE REPORTS UNDER § 13–306, § 26 13–307, OR § 13–309.2 OF THIS TITLE; AND 27 HOUSE BILL 906 3 (2) A POLITICAL ACTION COMM ITTEE THAT: 1 (I) IS NOT AFFILIATED WI TH A CORPORATION OR LABOR 2 ORGANIZATION ; AND 3 (II) EXCLUSIVELY MAKES IN DEPENDENT EXPENDITUR ES OR 4 DISBURSEMENTS FOR EL ECTIONEERING COMMUNI CATIONS. 5 (C) IF A PERSON SUBJECT T O THIS SECTION SOLI CITS FOR THE BENEFIT OF 6 A CANDIDATE OR A POL ITICAL PARTY AND USE S A CANDIDATE’S NAME, IMAGE, OR 7 LIKENESS IN THE SOLI CITATION, THE PERSON SHALL CLE ARLY AND 8 CONSPICUOUSLY INCLUD E ON THE SOLICITATIO N THE FOLLOWING DISC LAIMER OR 9 A SUBSTANTIALLY SIMI LAR DISCLAIMER: “THE (NAME, IMAGE, OR LIKENESS) OF 10 (NAME OF CANDIDATE OR POLITICAL PARTY ) ON THIS SOLICITATION IS INCLUDED 11 WITHOUT THE KNOWLEDG E OR PERMISSION OF (NAME OF CANDIDATE OR POLITICAL 12 PARTY), AND DOES NOT IMPLY A UTHORIZATION OR APPR OVAL BY (NAME OF 13 CANDIDATE OR POLITICAL PARTY ).”. 14 (D) IF A PERSON SUBJECT T O THIS SECTION SOLIC ITS FOR WHAT APPEARS 15 TO BE A CHARITABLE AN ELECTORAL OR POLI TICAL PURPOSE, THE PERSON SHALL 16 INCLUDE DISCLOSE IN A CLEAR AND CONSPICUOUS MANN ER ON EACH 17 SOLICITATION DISSEMI NATED BY THE PERSON A CLEAR AND CONSPICU OUS 18 STATEMENT THAT CONTR IBUTIONS OR DONATION S TO THE PERSON : 19 (1) ARE NOT NECESSARILY USED FOR CHARITABLE PURPOSES THE 20 FIVE RECIPIENTS TO W HICH THE PERSON MADE THE LARGEST EXPENDIT URES OR 21 DISBURSEMENTS DURING THE IMMEDIATELY PRECEDING CALENDAR Q UARTER; 22 AND 23 (2) ARE NOT TAX –DEDUCTIBLE THE TOTAL AMOUNT OF 24 EXPENDITURES OR DISB URSEMENTS MADE TO EA CH RECIPIENT. 25 (E) (1) THE STATE ADMINISTRATOR , OR THE STATE ADMINISTRATOR ’S 26 DESIGNEE, MAY INVESTIGATE A PO TENTIAL VIOLATION OF THIS SECTION. 27 (2) THE STATE ADMINISTRATOR , OR THE STATE ADMINISTRATOR ’S 28 DESIGNEE, SHALL: 29 (I) NOTIFY A PERSON WHO IS SUBJECT TO AN INV ESTIGATION 30 UNDER THIS SUBSECTIO N OF THE CIRCUMSTANC ES THAT GAVE RISE TO THE 31 INVESTIGATION ; AND 32 (II) PROVIDE THE PE RSON AMPLE OPPORTUNI TY TO BE HEARD 33 AT A PUBLIC MEETING OF THE STATE BOARD. 34 4 HOUSE BILL 906 (3) (I) IN FURTHERANCE OF AN INVESTIGATION UNDER THIS 1 SUBSECTION, THE STATE ADMINISTRATOR , OR THE STATE ADMINISTRATOR ’S 2 DESIGNEE, MAY ISSUE A SUBPOENA FOR THE ATTENDANCE O F A WITNESS TO 3 TESTIFY OR THE PRODU CTION OF RECORDS . 4 (II) A SUBPOENA ISSUED UNDE R THIS PARAGRAPH SHA LL BE 5 SERVED IN ACCORDANCE WITH THE MARYLAND RULES. 6 (III) FOR A SUBPOENA TO BE ISSUED UNDER THIS PA RAGRAPH, 7 THE STATE ADMINISTRATOR SHALL M AKE A FINDING TH AT THE SUBPOENA IS 8 NECESSARY TO AND IN FURTHERANCE OF AN IN VESTIGATION BEING CO NDUCTED 9 UNDER THIS SUBSECTIO N. 10 (IV) A FILING SUBMITTED TO A COURT WITH RESPECT TO A 11 SUBPOENA UNDER THIS PARAGRAPH SHALL BE S EALED ON FILING . 12 (V) IF A PERSON FAILS TO COMPLY WITH A SUBPOENA ISSUED 13 UNDER THIS PARAGRAPH , ON PETITION OF THE STATE ADMINISTRATOR , A CIRCUIT 14 COURT OF COMPETENT J URISDICTION MAY COMP EL COMPLIANCE WITH T HE 15 SUBPOENA. 16 (4) AT THE CONCLUSION OF THE INVESTIGATION AN D FOLLOWING 17 THE HEARING UNDER PARAGRAPH (2)(II) OF THIS SUBSECTION , THE STATE BOARD 18 SHALL ISSUE A PUBLIC REPORT OF ITS FINDIN GS AND MAY: 19 (I) PROHIBIT A PERSON WH O VIOLATED THIS SECT ION FROM 20 SOLICITING CONTRIBUT IONS OR DONATIONS FO R A PERIOD OF TIME D ETERMINED 21 BY THE STATE BOARD; OR 22 (II) IMPOSE A CIVIL PENAL TY ON A PERSON WHO V IOLATED THIS 23 SECTION AS PROVIDED IN SUBSECTION (F) OF THIS SECTION. 24 (F) (1) A PERSON WHO VIOLATES THIS SECTION IS NOT SUBJECT TO: 25 (I) A CRIMINAL PENALTY U NDER § 13–603 OF THIS TITLE; 26 (II) A CIVIL PENALTY UNDE R § 13–604 OF THIS TITLE; OR 27 (III) INVESTIGATION BY THE STATE PROSECUTOR . 28 (2) THE STATE BOARD MAY IMPOSE A CI VIL PENALTY FOR A 29 VIOLATION OF THIS SE CTION. 30 HOUSE BILL 906 5 (3) A CIVIL PENALTY: 1 (I) SHALL BE ASSESSED IN THE MANNER SPECIFIED IN § 2 13–604.1 OF THIS TITLE; AND 3 (II) MAY NOT EXCEED $10,000. 4 (G) THE STATE BOARD MAY ADOPT REGUL ATIONS TO CARRY OUT THIS 5 SECTION. 6 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7 1, 2025. 8 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.