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.
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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
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 11, 2025
CHAPTER ______
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
2 SENATE BILL 27
BY adding to 1
Article – Election Law 2
Section 13–107 3
Annotated Code of Maryland 4
(2022 Replacement Volume and 2024 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Election Law 8
1–101. 9
(a) In this article the following words have the meanings indicated unless a 10
different meaning is clearly intended from the context. 11
(k) (1) “Campaign material” means any material that: 12
(i) contains text, graphics, or other images; 13
(ii) relates to a candidate, a [prospective] POTENTIAL candidate, or 14
the approval or rejection of a question or prospective question; and 15
(iii) is published, distributed, or disseminated. 16
(2) “Campaign material” includes: 17
(i) a qualifying paid digital communication; 18
(ii) any other material transmitted by or appearing on the Internet 19
or other electronic medium; 20
(iii) an oral commercial campaign advertisement; and 21
(iv) an automated or prerecorded oral communication. 22
(l) (1) “Candidate” means an individual who files a certificate of candidacy for 23
a public or party office. 24
(2) “Candidate” includes: 25
(i) an incumbent justice of the Supreme Court of Maryland or 26
Appellate Court of Maryland at an election for continuance in office; and 27
(ii) an individual, prior to that individual filing a certificate of 28
candidacy, if a campaign finance entity has been established on behalf of that individual. 29
SENATE BILL 27 3
(gg) “Political committee” means a combination of two or more individuals that has 1
as its major purpose promoting the success or defeat of a candidate, political party, 2
question, or prospective question submitted to a vote at any election. 3
13–107. 4
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 5
INDICATED. 6
(2) (I) “DONATION” MEANS THE GIFT OR TR ANSFER, OR PROMISE 7
OF GIFT OR TRANSFER , OF MONEY OR ANY OTHE R THING OF VALUE TO A PERSON 8
THAT MAKES DISBURSEM ENTS FOR AN EXPLORAT ORY COMMITTEE . 9
(II) “DONATION” DOES NOT INCLUDE ANY AMOU NT OF MONEY 10
OR ANY OTHER THING O F VALUE: 11
1. RECEIVED BY A PERSON IN THE ORDINARY COUR SE OF 12
ANY TRADE OR BUSINES S CONDUCTED BY THE P ERSON, WHETHER FOR PROFIT O R 13
NOT FOR PROFIT , OR IN THE FORM OF IN VESTMENTS IN THE PER SON’S BUSINESS; 14
OR 15
2. A. THAT THE DONOR AND T HE PERSON RECEIVING 16
THE MONEY OR THING O F VALUE EXPRESSLY AG REE IN WRITING MAY N OT BE USED 17
FOR AN EXPLORATORY C OMMITTEE; AND 18
B. IN THE CASE OF A MON ETARY DONATION , IS 19
DEPOSITED IN A SEPAR ATE BANK ACCOUNT THA T IS NEVE R USED FOR AN 20
EXPLORATORY COMMITTE E. 21
(3) “EXPLORATORY COMMITTEE ” MEANS AN ENTITY ESTA BLISHED 22
BY A POTENTIAL CANDI DATE FOR A PUBLIC OF FICE TO DETERMINE TH E POTENTIAL 23
CANDIDATE’S VIABILITY FOR THAT PUBLIC OFFICE. 24
(B) EXCEPT AS OTHERWISE P ROVIDED IN §§ 13–220.1 AND 13–220.2 OF THIS 25
TITLE AND SUBTITLE 2, PART V OF THIS TITLE, ALL PROVISIONS OF TH IS TITLE 26
THAT APPLY TO A POLI TICAL COMMITTEE ALSO APPLY TO AN EXPLORAT ORY 27
COMMITTEE . 28
(C) AN INDIVIDUAL WHO IS A CANDIDATE MAY ESTA BLISH AN EXPLORATORY 29
COMMITTEE FOR ANOTHER PUBLIC O FFICE. 30
(D) SUBJECT TO SUBSECTION (E) (D) OF THIS SECTION , AN EXPLORATORY 31
COMMITTEE FOR AN IND IVIDUAL MAY RECEIVE FUNDS AND MAKE DISBU RSEMENTS 32
TO DETERMINE THE IND IVIDUAL’S VIABILITY FOR A PU BLIC OFFICE. 33 4 SENATE BILL 27
(E) (D) AN EXPLORATORY COMMITTEE MAY MAKE A DISBURSEMENT : 1
(1) ONLY FOR PURPOSES RE LATED TO DETERMINING THE POTENTIAL 2
CANDIDATE’S VIABILITY FOR A PU BLIC OFFICE; AND 3
(2) ONLY FOR THE FOLLOWI NG: 4
(1) (I) CONDUCTING SURVEYS O R POLLS REGARDING VI ABILITY OF 5
THE POTENTIAL CANDI DATE FOR A PUBLIC OF FICE; 6
(2) (II) DIRECT MAILINGS AND OTHER COMMUNICATIONS TO 7
POTENTIAL VOTERS ; 8
(3) (III) EMPLOYING STAFF ; 9
(4) (IV) ESTABLISHING A WEBSI TE; 10
(5) (V) QUALIFYING PAID DIGI TAL COMMUNICATIONS ; 11
(6) (VI) RENTING OR LEASING O FFICE SPACE; AND 12
(7) (VII) PURCHASING ELECTRONI C EQUIPMENT , INCLUDING 13
COMPUTERS AND TELEPH ONES. 14
(F) (E) AN EXPLORATORY COMMIT TEE MAY NOT PAY ANY EXPENSE IN 15
ADVANCE FOR GOODS OR SERVICES TO BE USED BY THE POLITICAL COM MITTEE OF 16
THE POTENTIAL CANDID ATE ONCE T HE POTENTIAL CANDIDA TE REGISTERS AN 17
AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE . 18
(G) (F) IF AN AUTHORIZED CAND IDATE CAMPAIGN COMMI TTEE RESULTS 19
FROM THE EXPLORATORY COMMITTEE, ANY PURCHASES MADE B Y THE AUTHORIZED 20
CANDIDATE CAMPAIGN C OMMITTEE OF EQUIPMEN T FROM THE EXPLORATORY 21
COMMITTEE SHALL BE M ADE AT THE FAIR MARK ET VALUE OF THE EQUI PMENT. 22
(H) (G) (1) AN EXPLORATORY COMMIT TEE SHALL RETURN ANY 23
REMAINING FUNDS RECE IVED UNDER SUBSECTIO N (E) (D) OF THIS SECTION IN 24
ACCORDANCE WITH PARA GRAPH (2) OF THIS SUBSECTIO N WITHIN 120 DAYS AFTER: 25
(I) A POTENTIAL CANDIDAT E: 26
1. TIMELY FILES A CERTI FICATE OF CANDIDACY FOR A 27
PUBLIC OFFICE UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE; OR 28
SENATE BILL 27 5
2. PUBLICLY ANNOUNCES T HAT THE POTENTIAL 1
CANDIDATE HAS DECLIN ED TO FILE A CERTIFI CATE OF CANDIDACY FO R PUBLIC 2
OFFICE; OR 3
(II) THE DEADLINE FOR FIL ING A CERTIFICATE OF CANDIDACY 4
UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE HAS PASSED. 5
(2) AN EXPLORATORY COMMIT TEE SHALL RETURN FUN DS UNDER 6
PARAGRAPH (1) OF THIS SUBSECTION : 7
(I) PRO RATA TO THE CONTRIBU TORS; OR 8
(II) BY PAYING THE REMAIN ING FUNDS TO: 9
1. IF THE POTENTIAL CAN DIDATE IS A MEMBER O F A 10
POLITICAL PARTY : 11
A. THE STATE CENTRAL COMMITT EE OF THE POLITICAL 12
PARTY; OR 13
B. A LOCAL CENTRAL COMM ITTEE OF THE POLITIC AL 14
PARTY; 15
2. IF THE POTENTIAL CAN DIDATE ESTABLISHES A N 16
AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE , SUBJECT TO § 13–226 OF THIS 17
TITLE, THE AUTHORIZED CANDI DATE CAMPAIGN COMMIT TEE; 18
3. A NONPROFIT ORGANIZA TION EXEMPT FROM 19
TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; OR 20
4. THE FAIR CAMPAIGN FINANCING FUND 21
ESTABLISHED UNDER § 15–103 OF THIS ARTICLE. 22
(I) (H) A DONATION TO AN EXPLO RATORY COMMITTEE IS NOT SUBJECT 23
TO ANY LIMITS. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 25
1, 2025. 26