EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0366*
SENATE BILL 366
G1 5lr1600
By: Senator Ellis
Introduced and read first time: January 17, 2025
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Campaign Finance – Civil Penalties – Process 2
FOR the purpose of requiring the State Board of Elections to issue a certain notice to 3
persons the State Board believes are committing or have committed certain 4
campaign finance violations; requiring the State Board to adopt comprehensive 5
regulations establishing an appeal process for persons issued the notice; altering the 6
circumstances under which the State Board is authorized to issue a citation to 7
persons the State Board believes are committing or have committed certain 8
campaign finance violations; and generally relating to civil penalties for campaign 9
finance violations. 10
BY repealing and reenacting, with amendments, 11
Article – Election Law 12
Section 13–604.1 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2024 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Election Law 18
13–604.1. 19
(a) In this section, “person” includes a political committee. 20
(b) The State Board may impose a civil penalty in accordance with this section for 21
the following violations: 22
(1) making a disbursement in a manner not authorized in § 13–218(b)(2), 23
(c), and (d) of this title; 24 2 SENATE BILL 366
(2) failure to maintain a campaign bank account as required in § 13–220(a) 1
of this title; 2
(3) making a disbursement by a method not authorized in § 13–220(d) of 3
this title; 4
(4) failure to maintain detailed and accurate account books and records as 5
required in § 13–221 of this title; 6
(5) fund–raising during the General Assembly session in a manner not 7
authorized in § 13–235 of this title; 8
(6) failure to report all contributions received and expenditures made as 9
required in § 13–304(b) of this title; 10
(7) failure to include an authority line on campaign material as required in 11
§ 13–401 of this title; 12
(8) failure to retain a copy of campaign material as required in § 13–403 of 13
this title; 14
(9) failure to include a disclosure on online campaign material as required 15
in § 13–401.1(b) of this title; 16
(10) soliciting a recurring contribution or donation without the affirmative 17
consent of the contributor or donor as required in § 13–244 of this title; 18
(11) making a monetary contribution or monetary donation using an y 19
currency other than United States currency or accepting a monetary contribution or 20
monetary donation made using any currency other than United States currency in violation 21
of § 13–238 of this title; and 22
(12) making a monetary expenditure using any currency other than United 23
States currency in violation of § 13–250 of this title. 24
(c) A civil penalty imposed under this section for a violation specified in 25
subsection (b) of this section is in addition to any other sanction provided by law. 26
(d) (1) Except as otherwise provided in this title or as provided in paragraph 27
(2) of this subsection, the amount of a civil penalty imposed under this section may not 28
exceed $1,000 for each violation. 29
(2) As to a violation of § 13–235 of this title, the campaign finance entity 30
that receives a contribution as a result of a violation shall: 31
(i) refund the contribution to the contributor; and 32 SENATE BILL 366 3
(ii) pay a civil penalty that equals $1,000 plus the amount of the 1
contribution, unless the State Board at its discretion assesses a lesser penalty for good 2
cause. 3
[(e) The civil penalty is payable to the State Board by the person charged in a 4
citation within 20 calendar days after service of the citation.] 5
(E) (1) IF THE STATE BOARD BELIEVES A PERS ON IS COMMITTING OR 6
HAS COMMITTED A VIOL ATION SPECIFIED IN S UBSECTION (B) OF THIS SECTION, THE 7
STATE BOARD SHALL ISSUE A “NOTICE OF PENDING CIVIL PENALTY” TO THE 8
PERSON THAT INCLUDES: 9
(I) THE NATURE, TIME, AND PLACE OF THE ALLEGED 10
VIOLATION; 11
(II) THE MANNER IN WHICH THE VIOLATION IS ALLEGED TO 12
HAVE OCCURRED; 13
(III) THE AMOUNT OF THE PENALTY; 14
(IV) NOTICE THAT THE PERS ON MAY ADMIT THE VIOLATION BY 15
PAYING THE PENALTY AND THE MANNER IN WH ICH THE PENALTY MAY BE PAID; 16
(V) INFORMATION REGARDIN G THE APPEAL PROCESS 17
ESTABLISHED BY REGULATION UNDER PARAGRAPH (2) OF THIS SUBSECTION ; AND 18
(VI) NOTICE OF THE RIGHT OF THE PERSON ALLEGE D TO HAVE 19
COMMITTED THE VIOLAT ION TO REQUEST A HEARING BEFORE THE STATE BOARD. 20
(2) THE STATE BOARD SHALL ADOPT COM PREHENSIVE 21
REGULATIONS ESTABLIS HING AN APPEAL PROCE SS FOR PERSONS ISSUE D A 22
“NOTICE OF PENDING CIVIL PENALTY” UNDER PARAGRAPH (1) OF THIS 23
SUBSECTION THAT INCLUDES: 24
(I) CLEARLY DEFINED GROU NDS FOR APPEAL ; 25
(II) CONTACT INFORMATION FOR ASSISTANCE OR INQUIRIES 26
REGARDING THE APPEAL PROCESS; 27
(III) STEP–BY–STEP PROCEDURES FOR INITIATING AN APPEAL ; 28
(IV) TIMELINES FOR EACH S TAGE OF THE APPEAL P ROCESS; 29
4 SENATE BILL 366
(V) CRITERIA FOR THE EVA LUATION AND ADJUDICATION OF 1
APPEALS; 2
(VI) A RIGHT FOR A PERSON ALLEGED TO HAVE COMMITTED A 3
VIOLATION TO REQUEST A HEARING BEFORE THE STATE BOARD; AND 4
(VII) GUIDELINES FOR THE R ESOLUTION OF APPEALS AND THE 5
COMMUNICATION OF DEC ISIONS REGARDING APP EALS. 6
(3) THE STATE BOARD SHALL: 7
(I) PUBLISH THE APPEAL P ROCESS ESTABLISHED BY 8
REGULATION UNDER PARAGRAPH (2) OF THIS SUBSECTION , INCLUDING ALL 9
RELEVANT FORMS AND I NSTRUCTIONS , ON ITS WEBSITE ON A WEBPAGE THAT IS 10
COMPLIANT WITH THE F EDERAL AMERICANS WITH DISABILITIES ACT; AND 11
(II) PROVIDE P RINTED COPIES OF THE APPEAL PROCESS ON 12
REQUEST. 13
(4) THE STATE BOARD SHALL DEVELOP A COMMUNICATION PLAN T O 14
INFORM AUTHORIZED CA NDIDATE CAMPAIGN COM MITTEES AND OTHER PE RSONS 15
OF THE APPEAL PROCES S ESTABLISHED BY REGULATION UNDER PARAGRAPH (2) OF 16
THIS SUBSECTION THAT INCLUDES: 17
(I) TRAINING ON THE APPE AL PROCESS FOR RELEV ANT STAFF 18
MEMBERS OF THE STATE BOARD TO ENSURE THAT THE STAFF MEMBERS PR OVIDE 19
ACCURATE INFORMATION ABOUT THE APPEAL PRO CESS TO PERSONS ALLE GED TO 20
HAVE COMMITTED VIOLA TIONS; 21
(II) EDUCATIONAL MATERIAL S ON THE APPEAL PROCESS ; AND 22
(III) OUTREACH TO AUTHORIZ ED CANDIDATE CAMPAIG N 23
COMMITTEES AND OTHER PERSONS CONCERNING : 24
1. COMPLIANCE WITH CAMP AIGN FINANCE LAWS ; 25
2. BEST PRACTICES TO AV OID CAMPAIGN FINANCE 26
VIOLATIONS AND PENAL TIES; AND 27
3. THE APPEAL PROCESS . 28
(f) (1) Subject to paragraphs (2) and (3) of this subsection, a civil penalty 29
imposed under this section shall be paid by the campaign finance entity. 30
SENATE BILL 366 5
(2) If the campaign finance entity has insufficient funds with which to pay 1
the full amount of the civil penalty in a timely manner, after the campaign account of the 2
finance entity is exhausted the balance of the civil penalty is the joint and several liability 3
of the responsible officers. 4
(3) If a violation is committed by a person not acting on behalf of, or at the 5
request or suggestion of, a candidate or a campaign finance entity, the civil penalty shall 6
be paid by the person who committed the violation. 7
(g) The State Board may issue a citation to [any] A person the State Board 8
believes is committing or has committed a violation specified in subsection (b) of this section 9
IF: 10
(1) THE PERSON ALLEGED T O HAVE COMMITTED THE VIOLATION HAS 11
EXHAUSTED THE APPEAL PROCESS ESTABLISHED IN REGULATION UNDER 12
SUBSECTION (E)(2) OF THIS SECTION; AND 13
(2) THE STATE BOARD HAS CONDUCTED A HEARING ON THE 14
PERSON’S APPEAL AND MADE A FINAL DECISIO N THAT THE PERSON CO MMITTED THE 15
VIOLATION. 16
(h) (1) The citation shall be served on the defendant in accordance with the 17
Maryland Rules. 18
(2) THE CIVIL PENALTY IS PAYABLE TO THE STATE BOARD BY THE 19
PERSON CHARGED IN A CITATION WITHIN 20 CALENDAR DAYS AFTER SERVICE OF 20
THE CITATION. 21
(i) The citation shall contain: 22
(1) the certification by the State Board attesting to the truth of the matter 23
set forth in the citation; 24
(2) the name and address of the person charged; 25
(3) the nature, time, and place of the violation; 26
(4) the manner in which the violation occurred; 27
(5) the amount of the penalty assessed; 28
(6) the manner, time, and location to pay the penalty; 29
(7) a statement that the person receiving the citation has a right to trial in 30
the District Court; and 31
6 SENATE BILL 366
(8) the effect of failing to pay the assessed fine or of failing to demand a 1
trial within the prescribed time. 2
(j) (1) A person charged in a citation may elect to stand trial for the violation 3
by notifying the State Board in writing of the person’s intent to stand trial. 4
(2) The written notice shall be given at least 5 days before the date of 5
payment as set forth in the citation. 6
(k) (1) On receipt of the written notice of intent to stand trial, the State Board 7
shall forward to the State Prosecutor a copy of the citation and the written notice. 8
(2) The State Prosecutor shall forward to the District Court having venue 9
a copy of the citation and the written notice. 10
(3) On receipt of the citation and the written notice: 11
(i) the State Prosecutor shall assume responsibility for prosecuting 12
the violation; and 13
(ii) the District Court shall schedule the case for trial, notify the 14
defendant of the trial date, and summon the defendant to appear. 15
(l) (1) If a person charged in a citation fails to pay the penalty by the date of 16
payment set forth in the citation and fails to deliver to the State Board the written notice 17
of intent to stand trial, the person is liable for the assessed penalty. 18
(2) The State Prosecutor, on behalf of the State Board, may double the 19
penalty to an amount not to exceed $2,000 and request adjudication of the case through the 20
District Court by filing a demand for judgment on affidavit. 21
(m) The defendant’s failure to respond to the summons of the District Court shall 22
result in the entry of judgment against the defendant in favor of the State Board in the 23
amount set forth in the citation if a proper demand for judgment on affidavit has been 24
made. 25
(n) If a person is found by the District Court to have committed a violation: 26
(1) (i) the District Court shall order the person to pay the penalty set 27
forth in the citation and may double the amount of the penalty to an amount not to exceed 28
$2,000; 29
(ii) the penalty imposed shall constitute a judgment in favor of the 30
State Board; and 31
(iii) if the penalty remains unpaid for 30 days following the date of 32
its entry, the judgment shall be enforceable in the same manner and to the same extent as 33 SENATE BILL 366 7
other civil judgments for money unless the court has suspended or deferred payment of the 1
penalty as provided in item (2) of this subsection; 2
(2) the District Court may suspend or defer the payment of any penalty 3
under conditions that the court sets; 4
(3) the defendant shall be liable for the costs of the proceedings in the 5
District Court; and 6
(4) the District Court may order the person to abate the violation. 7
(o) If a defendant fails to pay any penalty or cost imposed by the District Court 8
without good cause, the District Court may punish the failure as contempt of court. 9
(p) Adjudication of a violation under this section: 10
(1) is not a criminal conviction; and 11
(2) does not impose any of the civil disabilities that arise from a criminal 12
conviction. 13
(q) In a District Court proceeding relating to a violation under this section: 14
(1) the State Prosecutor has the burden to prove that the defendant has 15
committed the violation by clear and convincing evidence; 16
(2) the District Court shall apply the evidentiary standards as provided by 17
law or rule for the trial of civil causes; 18
(3) the District Court shall ensure that the defendant has received a copy 19
of the charges against the defendant and that the defendant understands those charges; 20
(4) the defendant may cross–examine all witnesses who appear against the 21
defendant, produce evidence or witnesses in the defendant’s own behalf, or testify in the 22
defendant’s own behalf; 23
(5) the defendant shall be entitled to be represented by counsel of the 24
defendant’s own selection and at the defendant’s own expense; 25
(6) the defendant may enter a plea of guilty or not guilty of the violation as 26
charged; and 27
(7) the verdict of the District Court shall be guilty of a violation or not 28
guilty of a violation, or the District Court may, before rendering judgment, place the 29
defendant on probation. 30
8 SENATE BILL 366
(r) The State Board shall consider the following in determining the amount of a 1
penalty under this section: 2
(1) the severity of the violation for which the penalty is to be assessed; 3
(2) the good faith of the violator; and 4
(3) any history of prior violations. 5
(s) Penalties collected under this section shall be distributed to the Fair 6
Campaign Financing Fund established under § 15–103 of this article. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
January 1, 2026. 9