EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0027*
SENATE BILL 27
G1 5lr0785
(PRE–FILED) CF HB 111
By: Senator Kagan
Requested: September 9, 2024
Introduced and read first time: January 8, 2025
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Election Law – Campaign Finance – Exploratory Committees 2
FOR the purpose of applying certain campaign finance requirements for a political 3
committee to exploratory committees; establishing requirements and prohibitions for 4
exploratory committees relating to the establishment of the committees, receipt of 5
funds, and permissible disbursements; requiring an authorized candidate campaign 6
committee that results from the exploratory committee to make any equipment 7
purchases from the exploratory committee at the fair market value of the equipment; 8
requiring an exploratory committee to dispense of remaining funds in a certain 9
manner in a certain time frame; establishing that an exploratory committee is not 10
subject to any contribution limit; and generally relating to exploratory committees. 11
BY repealing and reenacting, without amendments, 12
Article – Election Law 13
Section 1–101(a), (l), and (gg) 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Election Law 18
Section 1–101(k) 19
Annotated Code of Maryland 20
(2022 Replacement Volume and 2024 Supplement) 21
BY adding to 22
Article – Election Law 23
Section 13–107 24
Annotated Code of Maryland 25
(2022 Replacement Volume and 2024 Supplement) 26
2 SENATE BILL 27
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Election Law 3
1–101. 4
(a) In this article the following words have the meanings indicated unless a 5
different meaning is clearly intended from the context. 6
(k) (1) “Campaign material” means any material that: 7
(i) contains text, graphics, or other images; 8
(ii) relates to a candidate, a [prospective] POTENTIAL candidate, or 9
the approval or rejection of a question or prospective question; and 10
(iii) is published, distributed, or disseminated. 11
(2) “Campaign material” includes: 12
(i) a qualifying paid digital communication; 13
(ii) any other material transmitted by or appearing on the Internet 14
or other electronic medium; 15
(iii) an oral commercial campaign advertisement; and 16
(iv) an automated or prerecorded oral communication. 17
(l) (1) “Candidate” means an individual who files a certificate of candidacy for 18
a public or party office. 19
(2) “Candidate” includes: 20
(i) an incumbent justice of the Supreme Court of Maryland or 21
Appellate Court of Maryland at an election for continuance in office; and 22
(ii) an individual, prior to that individual filing a certificate of 23
candidacy, if a campaign finance entity has been established on behalf of that individual. 24
(gg) “Political committee” means a combination of two or more individuals that has 25
as its major purpose promoting the success or defeat of a candidate, political party, 26
question, or prospective question submitted to a vote at any election. 27
13–107. 28
SENATE BILL 27 3
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(2) (I) “DONATION” MEANS THE GIFT OR TR ANSFER, OR PROMISE 3
OF GIFT OR TRANSFER , OF MONEY OR ANY OTHE R THING OF VALUE TO A PERSON 4
THAT MAKES DISBURSEM ENTS FOR AN EXPLORAT ORY COMMITTEE . 5
(II) “DONATION” DOES NOT INCLUDE ANY AMOUNT OF MONEY 6
OR ANY OTHER THING O F VALUE: 7
1. RECEIVED BY A PERSON IN THE ORDINARY COURSE OF 8
ANY TRADE OR BUSINES S CONDUCTED BY THE P ERSON, WHETHER FOR PROFIT O R 9
NOT FOR PROFIT , OR IN THE FORM OF IN VESTMENTS IN THE PER SON’S BUSINESS; 10
OR 11
2. A. THAT THE DONOR AND T HE PERSON RECEIVING 12
THE MONEY OR THING O F VALUE EXPRESSLY AG REE IN WRITING MAY NOT BE USED 13
FOR AN EXPLORATORY C OMMITTEE; AND 14
B. IN THE CASE OF A MON ETARY DONATION , IS 15
DEPOSITED IN A SEPAR ATE BANK ACCOUNT THA T IS NEVER USED FOR AN 16
EXPLORATORY COMMITTE E. 17
(3) “EXPLORATORY COMMITTEE ” MEANS AN ENTITY ESTA BLISHED 18
BY A POTENTIAL CANDIDATE FOR A PUBLIC OFFICE TO D ETERMINE THE POTENTI AL 19
CANDIDATE’S VIABILITY FOR THAT PUBLIC OFFICE. 20
(B) EXCEPT AS OTHERWISE P ROVIDED IN §§ 13–220.1 AND 13–220.2 OF THIS 21
TITLE AND SUBTITLE 2, PART V OF THIS TITLE, ALL PROVISIONS OF TH IS TITLE 22
THAT APPLY TO A POLITIC AL COMMITTEE ALSO AP PLY TO AN EXPLORATOR Y 23
COMMITTEE . 24
(C) AN INDIVIDUAL WHO IS A CANDIDATE MAY ESTA BLISH AN EXPLORATORY 25
COMMITTEE FOR ANOTHE R PUBLIC OFFICE. 26
(D) SUBJECT TO SUBSECTION (E) OF THIS SECTION , AN EXPLORATORY 27
COMMITTEE FOR AN INDIVIDUAL MAY RE CEIVE FUNDS AND MAKE DISBURSEMENTS 28
TO DETERMINE THE IND IVIDUAL’S VIABILITY FOR A PU BLIC OFFICE. 29
(E) AN EXPLORATORY COMMITTE E MAY MAKE A DISBURS EMENT ONLY FOR 30
THE FOLLOWING : 31
(1) CONDUCTING SURVEYS O R POLLS REGARDING VI ABILITY OF THE 32
POTENTIAL CANDIDATE FOR A PUBLIC OFFICE ; 33 4 SENATE BILL 27
(2) DIRECT MAILINGS AND OTHER COMMUNICATIONS TO POTENTIAL 1
VOTERS; 2
(3) EMPLOYING STAFF ; 3
(4) ESTABLISHING A WEBSI TE; 4
(5) QUALIFYING PAID DIGI TAL COMMUNICATIONS ; 5
(6) RENTING OR LEASING O FFICE SPACE; AND 6
(7) PURCHASING ELECTRONI C EQUIPMENT , INCLUDING COMPUTERS 7
AND TELEPHONES . 8
(F) AN EXPLORATORY COMMITTE E MAY NOT PAY ANY EX PENSE IN ADVANCE 9
FOR GOODS OR SERVICE S TO BE USED BY THE POLITICAL COMMITTEE OF THE 10
POTENTIAL CANDIDATE ONCE THE POTENTIAL C ANDIDATE REGISTERS A N 11
AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE . 12
(G) IF AN AUTHORIZED CAND IDATE CAMPAIGN COMMIT TEE RESULTS FROM 13
THE EXPLORATORY COMM ITTEE, ANY PURCHASES MADE B Y THE AUTHORIZED 14
CANDIDATE CAMPAIGN C OMMITTEE OF EQUIPMEN T FROM THE EXPLORATO RY 15
COMMITTEE SHALL BE M ADE AT THE FAIR MARK ET VALUE OF THE EQUI PMENT. 16
(H) (1) AN EXPLORATORY COMMITTEE SHALL RETU RN ANY REMAINING 17
FUNDS RECEIVED UNDER SUBSECTION (E) OF THIS SECTION IN A CCORDANCE WITH 18
PARAGRAPH (2) OF THIS SUBSECTION W ITHIN 120 DAYS AFTER: 19
(I) A POTENTIAL CANDIDAT E: 20
1. TIMELY FILES A CERTI FICATE OF CANDIDACY FOR A 21
PUBLIC OFFICE UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE; OR 22
2. PUBLICLY ANNOUNCES T HAT THE POTENTIAL 23
CANDIDATE HAS DECLINED TO FILE A CERTIFICATE OF CAN DIDACY FOR PUBLIC 24
OFFICE; OR 25
(II) THE DEADLINE FOR FIL ING A CERTIFICATE OF CANDIDACY 26
UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE HAS PASSED. 27
(2) AN EXPLORATORY COMMITTE E SHALL RETURN FUNDS UNDER 28
PARAGRAPH (1) OF THIS SUBSECTION : 29
SENATE BILL 27 5
(I) PRO RATA TO THE CONT RIBUTORS; OR 1
(II) BY PAYING THE REMAINING FUNDS TO: 2
1. IF THE POTENTIAL CAN DIDATE IS A MEMBER OF A 3
POLITICAL PARTY : 4
A. THE STATE CENTRAL COMMITT EE OF THE POLITICAL 5
PARTY; OR 6
B. A LOCAL CENTRAL COMM ITTEE OF THE POLITIC AL 7
PARTY; 8
2. IF THE POTENTIAL CAN DIDATE ESTABLISHES A N 9
AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE , SUBJECT TO § 13–226 OF THIS 10
TITLE, THE AUTHORIZED CANDI DATE CAMPAIGN COMMIT TEE; 11
3. A NONPROFIT ORGANIZA TION EXEMPT FROM 12
TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; OR 13
4. THE FAIR CAMPAIGN FINANCING FUND 14
ESTABLISHED UNDER § 15–103 OF THIS ARTICLE. 15
(I) A DONATION TO AN EXPLO RATORY COMMITTEE IS NOT SUBJECT TO ANY 16
LIMITS. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 18
1, 2025. 19