Maryland 2025 Regular Session

Maryland Senate Bill SB366 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0366
6	6
7	7	SENATE BILL 366
8	8	G1 5lr1600
9	9
10	10	By: Senator Ellis
11	11	Introduced and read first time: January 17, 2025
12	12	Assigned to: Education, Energy, and the Environment
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Campaign Finance – Civil Penalties – Process 2
19	19
20	20	FOR the purpose of requiring the State Board of Elections to issue a certain notice to 3
21	21	persons the State Board believes are committing or have committed certain 4
22	22	campaign finance violations; requiring the State Board to adopt comprehensive 5
23	23	regulations establishing an appeal process for persons issued the notice; altering the 6
24	24	circumstances under which the State Board is authorized to issue a citation to 7
25	25	persons the State Board believes are committing or have committed certain 8
26	26	campaign finance violations; and generally relating to civil penalties for campaign 9
27	27	finance violations. 10
28	28
29	29	BY repealing and reenacting, with amendments, 11
30	30	Article – Election Law 12
31	31	Section 13–604.1 13
32	32	Annotated Code of Maryland 14
33	33	(2022 Replacement Volume and 2024 Supplement) 15
34	34
35	35	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
36	36	That the Laws of Maryland read as follows: 17
37	37
38	38	Article – Election Law 18
39	39
40	40	13–604.1. 19
41	41
42	42	(a) In this section, “person” includes a political committee. 20
43	43
44	44	(b) The State Board may impose a civil penalty in accordance with this section for 21
45	45	the following violations: 22
46	46
47	47	(1) making a disbursement in a manner not authorized in § 13–218(b)(2), 23
48	48	(c), and (d) of this title; 24 2 SENATE BILL 366
49	49
50	50
51	51
52	52	(2) failure to maintain a campaign bank account as required in § 13–220(a) 1
53	53	of this title; 2
54	54
55	55	(3) making a disbursement by a method not authorized in § 13–220(d) of 3
56	56	this title; 4
57	57
58	58	(4) failure to maintain detailed and accurate account books and records as 5
59	59	required in § 13–221 of this title; 6
60	60
61	61	(5) fund–raising during the General Assembly session in a manner not 7
62	62	authorized in § 13–235 of this title; 8
63	63
64	64	(6) failure to report all contributions received and expenditures made as 9
65	65	required in § 13–304(b) of this title; 10
66	66
67	67	(7) failure to include an authority line on campaign material as required in 11
68	68	§ 13–401 of this title; 12
69	69
70	70	(8) failure to retain a copy of campaign material as required in § 13–403 of 13
71	71	this title; 14
72	72
73	73	(9) failure to include a disclosure on online campaign material as required 15
74	74	in § 13–401.1(b) of this title; 16
75	75
76	76	(10) soliciting a recurring contribution or donation without the affirmative 17
77	77	consent of the contributor or donor as required in § 13–244 of this title; 18
78	78
79	79	(11) making a monetary contribution or monetary donation using an y 19
80	80	currency other than United States currency or accepting a monetary contribution or 20
81	81	monetary donation made using any currency other than United States currency in violation 21
82	82	of § 13–238 of this title; and 22
83	83
84	84	(12) making a monetary expenditure using any currency other than United 23
85	85	States currency in violation of § 13–250 of this title. 24
86	86
87	87	(c) A civil penalty imposed under this section for a violation specified in 25
88	88	subsection (b) of this section is in addition to any other sanction provided by law. 26
89	89
90	90	(d) (1) Except as otherwise provided in this title or as provided in paragraph 27
91	91	(2) of this subsection, the amount of a civil penalty imposed under this section may not 28
92	92	exceed $1,000 for each violation. 29
93	93
94	94	(2) As to a violation of § 13–235 of this title, the campaign finance entity 30
95	95	that receives a contribution as a result of a violation shall: 31
96	96
97	97	(i) refund the contribution to the contributor; and 32 SENATE BILL 366 3
98	98
99	99
100	100
101	101	(ii) pay a civil penalty that equals $1,000 plus the amount of the 1
102	102	contribution, unless the State Board at its discretion assesses a lesser penalty for good 2
103	103	cause. 3
104	104
105	105	[(e) The civil penalty is payable to the State Board by the person charged in a 4
106	106	citation within 20 calendar days after service of the citation.] 5
107	107
108	108	(E) (1) IF THE STATE BOARD BELIEVES A PERS ON IS COMMITTING OR 6
109	109	HAS COMMITTED A VIOL ATION SPECIFIED IN S UBSECTION (B) OF THIS SECTION, THE 7
110	110	STATE BOARD SHALL ISSUE A “NOTICE OF PENDING CIVIL PENALTY” TO THE 8
111	111	PERSON THAT INCLUDES: 9
112	112
113	113	(I) THE NATURE, TIME, AND PLACE OF THE ALLEGED 10
114	114	VIOLATION; 11
115	115
116	116	(II) THE MANNER IN WHICH THE VIOLATION IS ALLEGED TO 12
117	117	HAVE OCCURRED; 13
118	118
119	119	(III) THE AMOUNT OF THE PENALTY; 14
120	120
121	121	(IV) NOTICE THAT THE PERS ON MAY ADMIT THE VIOLATION BY 15
122	122	PAYING THE PENALTY AND THE MANNER IN WH ICH THE PENALTY MAY BE PAID; 16
123	123
124	124	(V) INFORMATION REGARDIN G THE APPEAL PROCESS 17
125	125	ESTABLISHED BY REGULATION UNDER PARAGRAPH (2) OF THIS SUBSECTION ; AND 18
126	126
127	127	(VI) NOTICE OF THE RIGHT OF THE PERSON ALLEGE D TO HAVE 19
128	128	COMMITTED THE VIOLAT ION TO REQUEST A HEARING BEFORE THE STATE BOARD. 20
129	129
130	130	(2) THE STATE BOARD SHALL ADOPT COM PREHENSIVE 21
131	131	REGULATIONS ESTABLIS HING AN APPEAL PROCE SS FOR PERSONS ISSUE D A 22
132	132	“NOTICE OF PENDING CIVIL PENALTY” UNDER PARAGRAPH (1) OF THIS 23
133	133	SUBSECTION THAT INCLUDES: 24
134	134
135	135	(I) CLEARLY DEFINED GROU NDS FOR APPEAL ; 25
136	136
137	137	(II) CONTACT INFORMATION FOR ASSISTANCE OR INQUIRIES 26
138	138	REGARDING THE APPEAL PROCESS; 27
139	139
140	140	(III) STEP–BY–STEP PROCEDURES FOR INITIATING AN APPEAL ; 28
141	141
142	142	(IV) TIMELINES FOR EACH S TAGE OF THE APPEAL P ROCESS; 29
143	143	4 SENATE BILL 366
144	144
145	145
146	146	(V) CRITERIA FOR THE EVA LUATION AND ADJUDICATION OF 1
147	147	APPEALS; 2
148	148
149	149	(VI) A RIGHT FOR A PERSON ALLEGED TO HAVE COMMITTED A 3
150	150	VIOLATION TO REQUEST A HEARING BEFORE THE STATE BOARD; AND 4
151	151
152	152	(VII) GUIDELINES FOR THE R ESOLUTION OF APPEALS AND THE 5
153	153	COMMUNICATION OF DEC ISIONS REGARDING APP EALS. 6
154	154
155	155	(3) THE STATE BOARD SHALL: 7
156	156
157	157	(I) PUBLISH THE APPEAL P ROCESS ESTABLISHED BY 8
158	158	REGULATION UNDER PARAGRAPH (2) OF THIS SUBSECTION , INCLUDING ALL 9
159	159	RELEVANT FORMS AND I NSTRUCTIONS , ON ITS WEBSITE ON A WEBPAGE THAT IS 10
160	160	COMPLIANT WITH THE F EDERAL AMERICANS WITH DISABILITIES ACT; AND 11
161	161
162	162	(II) PROVIDE P RINTED COPIES OF THE APPEAL PROCESS ON 12
163	163	REQUEST. 13
164	164
165	165	(4) THE STATE BOARD SHALL DEVELOP A COMMUNICATION PLAN T O 14
166	166	INFORM AUTHORIZED CA NDIDATE CAMPAIGN COM MITTEES AND OTHER PE RSONS 15
167	167	OF THE APPEAL PROCES S ESTABLISHED BY REGULATION UNDER PARAGRAPH (2) OF 16
168	168	THIS SUBSECTION THAT INCLUDES: 17
169	169
170	170	(I) TRAINING ON THE APPE AL PROCESS FOR RELEV ANT STAFF 18
171	171	MEMBERS OF THE STATE BOARD TO ENSURE THAT THE STAFF MEMBERS PR OVIDE 19
172	172	ACCURATE INFORMATION ABOUT THE APPEAL PRO CESS TO PERSONS ALLE GED TO 20
173	173	HAVE COMMITTED VIOLA TIONS; 21
174	174
175	175	(II) EDUCATIONAL MATERIAL S ON THE APPEAL PROCESS ; AND 22
176	176
177	177	(III) OUTREACH TO AUTHORIZ ED CANDIDATE CAMPAIG N 23
178	178	COMMITTEES AND OTHER PERSONS CONCERNING : 24
179	179
180	180	1. COMPLIANCE WITH CAMP AIGN FINANCE LAWS ; 25
181	181
182	182	2. BEST PRACTICES TO AV OID CAMPAIGN FINANCE 26
183	183	VIOLATIONS AND PENAL TIES; AND 27
184	184
185	185	3. THE APPEAL PROCESS . 28
186	186
187	187	(f) (1) Subject to paragraphs (2) and (3) of this subsection, a civil penalty 29
188	188	imposed under this section shall be paid by the campaign finance entity. 30
189	189	SENATE BILL 366 5
190	190
191	191
192	192	(2) If the campaign finance entity has insufficient funds with which to pay 1
193	193	the full amount of the civil penalty in a timely manner, after the campaign account of the 2
194	194	finance entity is exhausted the balance of the civil penalty is the joint and several liability 3
195	195	of the responsible officers. 4
196	196
197	197	(3) If a violation is committed by a person not acting on behalf of, or at the 5
198	198	request or suggestion of, a candidate or a campaign finance entity, the civil penalty shall 6
199	199	be paid by the person who committed the violation. 7
200	200
201	201	(g) The State Board may issue a citation to [any] A person the State Board 8
202	202	believes is committing or has committed a violation specified in subsection (b) of this section 9
203	203	IF: 10
204	204
205	205	(1) THE PERSON ALLEGED T O HAVE COMMITTED THE VIOLATION HAS 11
206	206	EXHAUSTED THE APPEAL PROCESS ESTABLISHED IN REGULATION UNDER 12
207	207	SUBSECTION (E)(2) OF THIS SECTION; AND 13
208	208
209	209	(2) THE STATE BOARD HAS CONDUCTED A HEARING ON THE 14
210	210	PERSON’S APPEAL AND MADE A FINAL DECISIO N THAT THE PERSON CO MMITTED THE 15
211	211	VIOLATION. 16
212	212
213	213	(h) (1) The citation shall be served on the defendant in accordance with the 17
214	214	Maryland Rules. 18
215	215
216	216	(2) THE CIVIL PENALTY IS PAYABLE TO THE STATE BOARD BY THE 19
217	217	PERSON CHARGED IN A CITATION WITHIN 20 CALENDAR DAYS AFTER SERVICE OF 20
218	218	THE CITATION. 21
219	219
220	220	(i) The citation shall contain: 22
221	221
222	222	(1) the certification by the State Board attesting to the truth of the matter 23
223	223	set forth in the citation; 24
224	224
225	225	(2) the name and address of the person charged; 25
226	226
227	227	(3) the nature, time, and place of the violation; 26
228	228
229	229	(4) the manner in which the violation occurred; 27
230	230
231	231	(5) the amount of the penalty assessed; 28
232	232
233	233	(6) the manner, time, and location to pay the penalty; 29
234	234
235	235	(7) a statement that the person receiving the citation has a right to trial in 30
236	236	the District Court; and 31
237	237	6 SENATE BILL 366
238	238
239	239
240	240	(8) the effect of failing to pay the assessed fine or of failing to demand a 1
241	241	trial within the prescribed time. 2
242	242
243	243	(j) (1) A person charged in a citation may elect to stand trial for the violation 3
244	244	by notifying the State Board in writing of the person’s intent to stand trial. 4
245	245
246	246	(2) The written notice shall be given at least 5 days before the date of 5
247	247	payment as set forth in the citation. 6
248	248
249	249	(k) (1) On receipt of the written notice of intent to stand trial, the State Board 7
250	250	shall forward to the State Prosecutor a copy of the citation and the written notice. 8
251	251
252	252	(2) The State Prosecutor shall forward to the District Court having venue 9
253	253	a copy of the citation and the written notice. 10
254	254
255	255	(3) On receipt of the citation and the written notice: 11
256	256
257	257	(i) the State Prosecutor shall assume responsibility for prosecuting 12
258	258	the violation; and 13
259	259
260	260	(ii) the District Court shall schedule the case for trial, notify the 14
261	261	defendant of the trial date, and summon the defendant to appear. 15
262	262
263	263	(l) (1) If a person charged in a citation fails to pay the penalty by the date of 16
264	264	payment set forth in the citation and fails to deliver to the State Board the written notice 17
265	265	of intent to stand trial, the person is liable for the assessed penalty. 18
266	266
267	267	(2) The State Prosecutor, on behalf of the State Board, may double the 19
268	268	penalty to an amount not to exceed $2,000 and request adjudication of the case through the 20
269	269	District Court by filing a demand for judgment on affidavit. 21
270	270
271	271	(m) The defendant’s failure to respond to the summons of the District Court shall 22
272	272	result in the entry of judgment against the defendant in favor of the State Board in the 23
273	273	amount set forth in the citation if a proper demand for judgment on affidavit has been 24
274	274	made. 25
275	275
276	276	(n) If a person is found by the District Court to have committed a violation: 26
277	277
278	278	(1) (i) the District Court shall order the person to pay the penalty set 27
279	279	forth in the citation and may double the amount of the penalty to an amount not to exceed 28
280	280	$2,000; 29
281	281
282	282	(ii) the penalty imposed shall constitute a judgment in favor of the 30
283	283	State Board; and 31
284	284
285	285	(iii) if the penalty remains unpaid for 30 days following the date of 32
286	286	its entry, the judgment shall be enforceable in the same manner and to the same extent as 33 SENATE BILL 366 7
287	287
288	288
289	289	other civil judgments for money unless the court has suspended or deferred payment of the 1
290	290	penalty as provided in item (2) of this subsection; 2
291	291
292	292	(2) the District Court may suspend or defer the payment of any penalty 3
293	293	under conditions that the court sets; 4
294	294
295	295	(3) the defendant shall be liable for the costs of the proceedings in the 5
296	296	District Court; and 6
297	297
298	298	(4) the District Court may order the person to abate the violation. 7
299	299
300	300	(o) If a defendant fails to pay any penalty or cost imposed by the District Court 8
301	301	without good cause, the District Court may punish the failure as contempt of court. 9
302	302
303	303	(p) Adjudication of a violation under this section: 10
304	304
305	305	(1) is not a criminal conviction; and 11
306	306
307	307	(2) does not impose any of the civil disabilities that arise from a criminal 12
308	308	conviction. 13
309	309
310	310	(q) In a District Court proceeding relating to a violation under this section: 14
311	311
312	312	(1) the State Prosecutor has the burden to prove that the defendant has 15
313	313	committed the violation by clear and convincing evidence; 16
314	314
315	315	(2) the District Court shall apply the evidentiary standards as provided by 17
316	316	law or rule for the trial of civil causes; 18
317	317
318	318	(3) the District Court shall ensure that the defendant has received a copy 19
319	319	of the charges against the defendant and that the defendant understands those charges; 20
320	320
321	321	(4) the defendant may cross–examine all witnesses who appear against the 21
322	322	defendant, produce evidence or witnesses in the defendant’s own behalf, or testify in the 22
323	323	defendant’s own behalf; 23
324	324
325	325	(5) the defendant shall be entitled to be represented by counsel of the 24
326	326	defendant’s own selection and at the defendant’s own expense; 25
327	327
328	328	(6) the defendant may enter a plea of guilty or not guilty of the violation as 26
329	329	charged; and 27
330	330
331	331	(7) the verdict of the District Court shall be guilty of a violation or not 28
332	332	guilty of a violation, or the District Court may, before rendering judgment, place the 29
333	333	defendant on probation. 30
334	334	8 SENATE BILL 366
335	335
336	336
337	337	(r) The State Board shall consider the following in determining the amount of a 1
338	338	penalty under this section: 2
339	339
340	340	(1) the severity of the violation for which the penalty is to be assessed; 3
341	341
342	342	(2) the good faith of the violator; and 4
343	343
344	344	(3) any history of prior violations. 5
345	345
346	346	(s) Penalties collected under this section shall be distributed to the Fair 6
347	347	Campaign Financing Fund established under § 15–103 of this article. 7
348	348
349	349	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
350	350	January 1, 2026. 9