Election Law - Campaign Finance - Exploratory Committees

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0157*

HOUSE BILL 157
G1 EMERGENCY BILL 6lr0713
HB 111/25 – W&M (PRE–FILED) CF SB 65
By: Delegates Palakovich Carr and D. Jones
Requested: August 20, 2025
Introduced and read first time: January 14, 2026
Assigned to: Government, Labor, and Elections

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 return remaining funds in a certain manner 9
in a certain time frame; establishing that an exploratory committee is not subject to 10
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 2025 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 2025 Supplement) 21

BY adding to 22
Article – Election Law 23
Section 13–107 24
Annotated Code of Maryland 25
(2022 Replacement Volume and 2025 Supplement) 26

2 HOUSE BILL 157

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

HOUSE BILL 157 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 DISBURSEMENTS FOR AN EXPLORATORY COMMITTEE. 5

(II) “DONATION” DOES NOT INCLUDE ANY AMOUNT OF MONEY 6
OR ANY OTHER THING OF 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 OR 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 THE PERSON RECEIVING 12
THE MONEY OR THING OF VALUE EXPRESSLY AGREE IN WRITING MAY NOT BE USED 13
FOR AN EXPLORATORY COMMITTEE; 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 COMMITTEE. 17

(3) “EXPLORATORY COMMITTEE ” MEANS AN ENTITY ESTA BLISHED 18
BY A POTENTIAL CANDIDATE FOR A PUBLIC OFFICE TO DETERMINE THE POTENTIAL 19
CANDIDATE’S VIABILITY FOR THAT PUBLIC OFFICE. 20

(B) EXCEPT AS OTHERWISE PROVIDED IN §§ 13–220.1 AND 13–220.2 OF THIS 21
TITLE AND SUBTITLE 2, PART V OF THIS T ITLE, ALL PROVISIONS OF TH IS TITLE 22
THAT APPLY TO A POLI TICAL COMMITTEE ALSO APPLY TO AN EXPLORAT ORY 23
COMMITTEE. 24

(C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , AN EXPLORATORY 25
COMMITTEE FOR AN INDIVIDUAL MAY RECEIVE FUNDS AND MAKE DISBURSEMENTS 26
TO DETERMINE THE INDIVIDUAL’S VIABILITY FOR A PUBLIC OFFICE. 27

(D) AN EXPLORATORY COMMITTEE MAY MAKE A DISBURSEMENT: 28

(1) ONLY FOR PURPOSES RELATED TO DETERMINING THE POTENTIAL 29
CANDIDATE’S VIABILITY FOR A PUBLIC OFFICE; AND 30

(2) ONLY FOR THE FOLLOWING: 31

4 HOUSE BILL 157

(I) CONDUCTING SURVEYS OR POLLS REGARDING VIABILITY OF 1
THE POTENTIAL CANDIDATE FOR A PUBLIC OFFICE; 2

(II) DIRECT MAILINGS AND OTHER COMMUNICATIONS TO 3
POTENTIAL VOTERS; 4

(III) EMPLOYING STAFF; 5

(IV) ESTABLISHING A WEBSITE; 6

(V) QUALIFYING PAID DIGITAL COMMUNICATIONS; 7

(VI) RENTING OR LEASING OFFICE SPACE; 8

(VII) PURCHASING ELECTRONI C EQUIPMENT , INCLUDING 9
COMPUTERS AND TELEPHONES; AND 10

(VIII) SECURITY. 11

(E) AN EXPLORATORY COMMITTEE MAY NOT PAY ANY EXPENSE IN ADVANCE 12
FOR GOODS OR SERVICE S TO BE USED BY THE POLIT ICAL COMMITTEE OF TH E 13
POTENTIAL CANDIDATE ONCE THE POTENTIAL C ANDIDATE REGISTERS A N 14
AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE. 15

(F) IF AN AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE RESULTS FROM 16
THE EXPLORATORY COMM ITTEE, ANY PURCHASES MADE BY THE AUTHORIZED 17
CANDIDATE CAMPAIGN C OMMITTEE OF EQUIPMEN T FROM THE EXPLORATO RY 18
COMMITTEE SHALL BE MADE AT THE FAIR MARKET VALUE OF THE EQUIPMENT. 19

(G) (1) AN EXPLORATORY COMMIT TEE SHALL RETURN ANY REMAINING 20
FUNDS RECEIVED UNDER SUBSECTION (D) OF THIS SECTION IN ACCORDANCE WITH 21
PARAGRAPH (2) OF THIS SUBSECTION WITHIN 120 DAYS AFTER: 22

(I) A POTENTIAL CANDIDATE: 23

1. TIMELY FILES A CERTI FICATE OF CANDIDACY FOR A 24
PUBLIC OFFICE UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE; OR 25

2. PUBLICLY ANNOUNCES THAT THE POTENTIAL 26
CANDIDATE HAS DECLIN ED TO FILE A CERTIFI CATE OF CANDIDACY FO R PUBLIC 27
OFFICE; OR 28

(II) THE DEADLINE FOR FIL ING A CERTIFICATE OF CANDIDACY 29
UNDER TITLE 5, SUBTITLE 3 OF THIS ARTICLE HAS PASSED. 30
HOUSE BILL 157 5

(2) AN EXPLORATORY COMMIT TEE SHALL RETUR N FUNDS UNDER 1
PARAGRAPH (1) OF THIS SUBSECTION: 2

(I) PRO RATA TO THE CONTRIBUTORS; OR 3

(II) BY PAYING THE REMAINING FUNDS TO: 4

1. IF THE POTENTIAL CAN DIDATE IS A MEMBER O F A 5
POLITICAL PARTY: 6

A. THE STATE CENTRAL COMMITTEE OF THE POLITICAL 7
PARTY; OR 8

B. A LOCAL CENTRAL COMM ITTEE OF THE POLITIC AL 9
PARTY; 10

2. IF THE POTENTIAL CAN DIDATE ESTABLISHES A N 11
AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE, SUBJECT TO § 13–226 OF THIS 12
TITLE, THE AUTHORIZED CANDIDATE CAMPAIGN COMMITTEE; 13

3. A NONPROFIT ORGANIZATI ON EXEMPT FROM 14
TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; OR 15

4. THE FAIR CAMPAIGN FINANCING FUND 16
ESTABLISHED UNDER § 15–103 OF THIS ARTICLE. 17

(H) A DONATION TO AN EXPLORATORY COMMITTEE IS NOT SUBJECT TO ANY 18
LIMITS. 19

SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency 20
measure, is necessary for the immediate preservation of the public health or safety, has 21
been passed by a yea and nay vote supported by three –fifths of all the members elected to 22
each of the two Houses of the General Assembly, and shall take effect from the date it is 23
enacted. 24