Election Law - Campaign Finance Entities - Oversight and Control of Campaign Funds

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0267*

HOUSE BILL 267
G1 6lr0080
(PRE–FILED) CF SB 153
By: Chair, Government, Labor, and Elections Committee (By Request –
Departmental – State Board of Elections)
Requested: September 22, 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 Entities – Oversight and Control of Campaign 2
Funds 3

FOR the purpose of altering the manner in which a campaign manager may be appointed; 4
providing that the treasurer is the financial steward of a campaign finance entity; 5
altering requirements for assets received by or on behalf of a campaign finance entity 6
and disbursements made by or on behalf of a campaign finance entity; repealing the 7
authority of the chair of a campaign finance entity to approve a disbursement on 8
behalf of the campaign finance entity under certain circumstances; authorizing the 9
treasurer of a campaign finance entity to designate authorized agents to make 10
disbursements on behalf of the campaign finance entity; prohibiting a candidate from 11
having access to, or making a disbursement from, campaign funds in the designated 12
campaign account; and generally relating to campaign finance entities and oversight 13
and control of campaign funds. 14

BY repealing and reenacting, without amendments, 15
Article – Election Law 16
Section 1–101(a), 13–248, and 13–604.1(f) 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2025 Supplement) 19

BY repealing and reenacting, with amendments, 20
Article – Election Law 21
Section 1–101(j) and (mm), 2–301(b)(1)(iii), 13–207(c) and (d), 13–212, 13–215(a) and 22
(c), 13–218, 13–220(e), 13–246, 13–304(b), and 13–604.1(b)(1) and (d) 23
Annotated Code of Maryland 24
(2022 Replacement Volume and 2025 Supplement) 25

2 HOUSE BILL 267

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 artic le the following words have the meanings indicated unless a 5
different meaning is clearly intended from the context. 6

(j) “Campaign manager” means a person designated by a candidate [,] or [the 7
candidate’s representative,] CHAIR OF A CAMPAIGN FINANCE ENTITY to exercise general 8
overall responsibility for the conduct of the candidate’s political campaign. 9

(mm) “Responsible officers” means the [chairman] CHAIR and treasurer of a 10
political committee. 11

2–301. 12

(b) (1) An individual subject to this section may not, while holding the position: 13

(iii) except as provided in paragraph (2) of this subsection, as to any 14
candidate or any matter that is subject to an election under this article: 15

1. be a campaign manager; 16

2. be a treasurer [or subtreasurer] for a campaign finance 17
entity; or 18

3. take any other active part in political management or a 19
political campaign. 20

13–207. 21

(c) To establish a political committee: 22

(1) a [chairman] CHAIR and a treasurer shall be appointed on a form that 23
the State Board prescribes and that is signed by the [chairman] CHAIR and treasurer and 24
includes: 25

(i) the residence addresses of the [chairman] CHAIR and the 26
treasurer; 27

(ii) if the [chairman] CHAIR and treasurer affirmatively consent to 28
receiving notice under this title only by electronic mail, the electronic mail address of the 29
[chairman] CHAIR and the treasurer; and 30
HOUSE BILL 267 3

(iii) the information required by § 13–208 of this subtitle; and 1

(2) the form shall be filed with the State Board. 2

(3) The [chairman] CHAIR or treasurer of a political committee shall notify 3
the State Board of a change in the residence address of the [chairman] CHAIR or treasurer 4
no later than 21 days before the day on which the political committee’s next campaign 5
finance report is due under § 13–309 of this title. 6

(4) The [chairman] CHAIR or treasurer of a political committee shall notify 7
the State Board of a change in the electronic mail address of the [chairman] CHAIR or 8
treasurer by the date specified in paragraph (3) of this subsection if the [chairman] CHAIR 9
and treasurer of the political committee have affirmatively consented to receiving notice 10
under this title only by electronic mail. 11

(d) (1) A [chairman] CHAIR or treasurer of a political committee may resign 12
by completing a resignation form that the State Board prescribes and filing the form with 13
the State Board. 14

(2) If a vacancy occurs in the office of [chairman] CHAIR or the office of 15
treasurer, the politica l committee promptly shall appoint a new [chairman] CHAIR or 16
treasurer in accordance with this section. 17

(3) A political committee may not receive or disburse money or any other 18
thing of value if there is a vacancy in the office of [chairman] CHAIR or th e office of 19
treasurer. 20

13–212. 21

[An individual] A CANDIDATE OR CHAIR OF A CAMPAIGN FINANCE ENTITY may 22
appoint a campaign manager by: 23

(1) completing a form that the State Board prescribes and that includes the 24
name and address of that campaign manager; and 25

(2) filing the form with the [board where the individual is required to file 26
a certificate of candidacy] STATE BOARD. 27

13–215. 28

(a) Each [chairman] CHAIR, treasurer, and campaign manager shall be a 29
registered voter of the State. 30

4 HOUSE BILL 267

(c) Subject to subsection (b) of this section, the [chairman] CHAIR, treasurer, or 1
campaign manager of a campaign finance entity may serve as the [chairman] CHAIR, 2
treasurer, or campaign manager of another campaign finance entity. 3

13–218. 4

(a) THE TREASURER IS THE FINANCIAL STEWARD OF THE CAMPAIGN 5
FINANCE ENTITY. 6

(B) All assets received by or on behalf of a campaign finance entity shall be: 7

(1) delivered to the [treasurer] CAMPAIGN FINANCE ENTITY; [and] 8

(2) maintained by the treasurer for the purposes of the campaign finance 9
entity; 10

(3) ACCOUNTED FOR IN ACC ORDANCE WITH § 13–221 OF THIS 11
SUBTITLE; AND 12

(4) CONSIDERED OWNED BY THE CAMPAIGN FINANCE ENTITY. 13

[(b)] (C) (1) Assets of a campaign finance entity may be disbursed only: 14

(i) if [they have passed through the hands of the treasurer ] 15
ACCOUNTED FOR IN ACCORDANCE WITH § 13–221 OF THIS SUBTITLE; and 16

(ii) in accordance with the purposes of the entity AND THIS TITLE. 17

(2) Subject to § 13–220(b)(2) and (c) of this subtitle and except as provided 18
in subsection [(d)] (E) of this section, the treasurer shall approve all disbursements for the 19
campaign finance entity. 20

[(c)] (D) (1) The treasurer of a State or county central committee of a political 21
party may not approve any disbursement of the central committee’s assets, or incur any 22
liability on its behalf, without authority and direction from the [chairman] CHAIR of the 23
central committee. 24

(2) THE TREASURER OF A PO LITICAL ACTION COMMITTEE OF A 25
POLITICAL PARTY MAY NOT APPROVE ANY DISB URSEMENT OF THE POLI TICAL 26
ACTION COMMITTEE’S ASSETS, OR INCUR ANY LIABILITY ON ITS BEHALF , WITHOUT 27
AUTHORITY AND DIRECT ION FROM THE CHAIR O F THE POLITICAL ACTI ON 28
COMMITTEE. 29

HOUSE BILL 267 5

[(d)] (E) [(1) If the treasurer of a campaign finance entity is temporarily 1
unable to perform the duties of the office, the chairman of the campaign finance entity may 2
approve a disbursement on behalf of the campaign finance entity in the same manner as 3
the treasurer. 4

(2) If the chairman approves a disbursement under this subsection, within 5
7 days after approving the disbursement, the chairman shall submit a report to the 6
treasurer for the account book of the campaign finance entity, including: 7

(i) a statement of the expenditure approved under the authority of 8
the chairman; 9

(ii) the name and address of the person to whom the expenditure was 10
made; 11

(iii) the purpose for which the expenditure was made; and 12

(iv) a copy of the receipt for the expenditure that was made.] 13

(1) THE TREASURER MAY DES IGNATE AUTHORIZED AG ENTS OF THE 14
CAMPAIGN FINANCE ENT ITY TO MAKE DISBURSE MENTS ON BEHALF OF A ND IN 15
ACCORDANCE WITH THE PURPOSE OF THE CAMPAIGN FINANCE ENTITY. 16

(2) THE DESIGNATION OF AN AUTHORIZED AGENT MUST BE MADE IN 17
WRITING BEFORE THE FIRST DISBURSEMENT IS MADE BY THE AUTHORIZED AGENT. 18

(3) ANY ACTION TAKEN BY THE DESIGNATED AUTHORIZED AGENT ON 19
BEHALF OF THE CAMPAI GN FINANCE ENTITY IS THE RESPONSIBILITY O F THE 20
TREASURER. 21

(4) A DESIGNATED AUTHORIZED AGENT: 22

(I) HAS A FIDUCIARY DUTY TO THE CAMPAIGN FINANCE ENTITY 23
FOR THE AGENT ’S CONDUCT IN MAKING DISBURSEMENTS ON BEH ALF OF THE 24
CAMPAIGN FINANCE ENTITY; AND 25

(II) SHALL CONFIRM THE AG ENT’S UNDERSTANDING OF T HE 26
FIDUCIARY DUTY BY SI GNING THE WRITTEN DE SIGNATION T HAT INCLUDES A 27
STATEMENT OF THE DUTY. 28

(5) A DESIGNATED AUTHORIZED AGENT MAY ASSIST THE TREASURER 29
IN THE PREPARATION OF ANY REQUIRED FILINGS WITH THE STATE BOARD. 30

6 HOUSE BILL 267

[(3)] (6) A [chairman who is a ] candidate may not [approve] HAVE 1
ACCESS TO , OR MAKE a disbursement for a campaign finance entity FROM, FUNDS 2
DEPOSITED IN THE DES IGNATED CAMPAIGN ACC OUNT ESTABLISHED UND ER § 3
13–220 OF THIS SUBTITLE. 4

13–220. 5

(e) Within 30 days after filing a campaign finance report at the State Board, the 6
treasurer of an authorized candidate campaign committee shall provide both the candidate 7
and the [chairman] CHAIR with a copy of the most recent campaign account bank 8
statement. 9

13–246. 10

A person who claims that money is due from a campaign finance entity shall present 11
a claim for payment to the treasurer [or subtreasurer] not later than 30 days after the 12
election for which the liability was incurred. 13

13–248. 14

If a responsible officer of a campaign finance entity has a compensation agreement 15
with the campaign finance entity, before making a disbursement for the compensation, the 16
campaign finance entity shall submit to the State Board: 17

(1) a copy of the compensation agreement; and 18

(2) if the campaign finance entity is an authorized candidate campaign 19
committee, the written consent of the candidate. 20

13–304. 21

(b) A campaign finance report filed by a campaign finance entity under subsection 22
(a) of this section shall include: 23

(1) the information required by the State Board with respect to all 24
contributions received and all expenditures made by or on behalf of the campaign finance 25
entity during the designated reporting period; [and] 26

(2) the information regarding the occup ations and employers of 27
contributors required to be recorded by the treasurer of a campaign finance entity under § 28
13–221 of this title; AND 29

(3) THE WRITTEN DESIGNATIONS NAMING THE AUTHORIZED AGENTS 30
WHO MAY ACT ON THE TREASURER’S BEHALF, IF ANY. 31

13–604.1. 32
HOUSE BILL 267 7

(b) The State Board may impose a civil penalty in accordance with this section for 1
the following violations: 2

(1) making a disbursement in a manner not [authorized in § 13–218(b)(2), 3
(c), and (d)] IN ACCORDANCE WITH § 13–218(C)(2), (D), AND (E)(6) of this title; 4

(d) (1) Except as otherwise provided in this title or as provided in paragraph 5
(2) of this subsection, the amount of a civil penalty imposed under this section may not 6
exceed $1,000 for each violation. 7

(2) As to a violation of § 1 3–235 of this title, the campaign finance entity 8
that receives a contribution as a result of a violation shall: 9

(i) refund the contribution to the contributor; and 10

(ii) pay a civil penalty that equals $1,000 plus the amount of the 11
contribution, unl ess the State Board at its discretion assesses a lesser penalty for good 12
cause. 13

(3) AS TO A VIOLATION OF § 13–218(E)(2) OR § 13–248 OF THIS TITLE, 14
THE CAMPAIGN FINANCE ENTITY OR OTHER PERS ON THAT COMMITTED TH E 15
VIOLATION SHALL PAY A CIVIL PENALTY THAT EQUALS $1,000 PLUS THE AMOUNT 16
OF THE DISBURSEMENT MADE WITHOUT THE REQUIRED APPROVAL. 17

(f) (1) Subject to paragraphs (2) and (3) of this subsection, a civil penalty 18
imposed under this section shall be paid by the campaign finance entity. 19

(2) If the campaign finance entity has insufficient funds with which to pay 20
the full amount of the civil penalty in a timely manner, after the campaign account of the 21
finance entity is exhausted the balance of the civil penalty is the joint and several liability 22
of the responsible officers. 23

(3) If a violation is committed by a person not acting on behalf of, or at the 24
request or suggestion of, a candidate or a campaign finance entity, the civil penalty shall 25
be paid by the person who committed the violation. 26

SECTION 2 . AND BE IT FURTHER ENACTED, That this Act shall take effect 27
January 1, 2027. 28