Public Ethics Law - Participation Restrictions and Requirements for Local Governments and School Boards

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1074*

HOUSE BILL 1074
G2, L2, L3 6lr3539

By: Delegates Hornberger and Vogel
Introduced and read first time: February 10, 2026
Assigned to: Government, Labor, and Elections

A BILL ENTITLED

AN ACT concerning 1

Public Ethics Law – Participation Restrictions and Requirements for Local 2
Governments and School Boards 3

FOR the purpose of altering the definition of “qualifying relative” to include a son–in–law 4
and a daughter–in–law for provisions of law governing prohibitions against 5
government officials or employees participating in matters involving a qualifying 6
relative; requiring that the conflict of interest provisions or regulations adopted by a 7
county, municipal corporation, or school board be equivalent to or exceed certain 8
provisions of State law and authorize removal of a certain official for certain 9
violations; requiring that conflict of interest provisions adopted by a county, 10
municipal corporation, or school board include certain provisions relating to judicial 11
relief for violations of the conflict of interest provisions; requiring the ethics 12
provisions adopted by a county, municipal corporation, or school board to include a 13
requirement that the relevant ethics commission make a certain recommendation 14
public; requiring that certain lobbying provisions or regulations adopted by a county, 15
municipal corporation, or school board be equivalent to or exceed certain provisions 16
of State law; and generally relating to public ethics laws. 17

BY repealing and reenacting, without amendments, 18
Article – General Provisions 19
Section 5–101(a), 5–501, 5–807(a), and 5–902 20
Annotated Code of Maryland 21
(2019 Replacement Volume and 2025 Supplement) 22

BY repealing and reenacting, with amendments, 23
Article – General Provisions 24
Section 5–101(gg), 5–808, 5–810, 5–811.1, 5–817, and 5–819 25
Annotated Code of Maryland 26
(2019 Replacement Volume and 2025 Supplement) 27

BY repealing and reenacting, with amendments, 28
2 HOUSE BILL 1074

Article – Local Government 1
Section 12–107 2
Annotated Code of Maryland 3
(2013 Volume and 2025 Supplement) 4

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6

Article – General Provisions 7

5–101. 8

(a) In this title the following words have the meanings indicated unless: 9

(1) the context clearly requires a different meaning; or 10

(2) a different definition is adopted for a particular provision. 11

(gg) “Qualifying relative” means a spouse, parent, child, brother, [or] sister, 12
SON–IN–LAW, OR DAUGHTER–IN–LAW. 13

5–501. 14

(a) Except as otherwise provided in subsection (c) of this section, an official or 15
employee may not participate in a matter if: 16

(1) the official or employee or a qualifying relative of the official or 17
employee has an interest in the matter and the official or employee knows of the interest; 18
or 19

(2) any of the following is a party to the matter: 20

(i) a business entity in which the off icial or employee has a direct 21
financial interest of which the official or employee reasonably may be expected to know; 22

(ii) a business entity, including a limited liability company or a 23
limited liability partnership, of which any of the following is an officer, a director, a trustee, 24
a partner, or an employee: 25

1. the official or employee; or 26

2. if known to the official or employee, a qualifying relative 27
of the official or employee; 28

(iii) a business entity with which any of the following has applied for 29
a position, is negotiating employment, or has arranged prospective employment: 30

HOUSE BILL 1074 3

1. the official or employee; or 1

2. if known to the official or employee, a qualifying relative 2
of the official or employee; 3

(iv) if the contract reasonably could be expected to result in a conflict 4
between the private interest and the official State duties of the official or employee, a 5
business entity that is a party to a contract with: 6

1. the official or employee; or 7

2. if known to the official or employee, a qualifying relative 8
of the official or employee; 9

(v) a business entity, either engaged in a transaction with the State 10
or subject to regulation by the official’s or employee’s governmental unit, in which a direct 11
financial interest is owned by another business entity if the official or employee: 12

1. has a direct financial interest in the other business entity; 13
and 14

2. reasonably may be expected to know of both financial 15
interests; or 16

(vi) a business entity that: 17

1. the official or employee knows is a creditor or an obligee of 18
the official or employee, or of a qualifying relative of the official or employee, with respect 19
to a thing of economic value; and 20

2. as a creditor or an obligee, is in a position to affect directly 21
and substantially the interest of the official, employee, or qualifying relative. 22

(a–1) (1) This subsection does not apply to an individual who is a public official 23
only as a member of a board and who receives annual compensation that is less than 25% 24
of the lowest annual compensation at State grade level 16. 25

(2) A former regulated lobbyist who is or becomes subject to regulation 26
under this title as a public official or employee may not participate in a case, contract, or 27
other specific matter as a public official or employee for 1 year after the termination of the 28
registration of the former regulated lobbyist if the former regulated lobbyist previously 29
assisted or represented another party for compensation in the matter. 30

(b) (1) The prohi bitions of subsection (a) of this section do not apply if 31
participation is allowed: 32

4 HOUSE BILL 1074

(i) as to officials and employees subject to the authority of the Ethics 1
Commission, by regulation of the Ethics Commission; 2

(ii) by the opinion of an advisory body; or 3

(iii) by another provision of this subtitle. 4

(2) This section does not prohibit participation by an official or employee 5
that is limited to the exercise of an administrative or ministerial duty that does not affect 6
the decision or disposition with respect to the matter. 7

(c) (1) An official or employee who otherwise would be disqualified from 8
participation under subsection (a) of this section shall disclose the nature and 9
circumstances of the conflict, and may participate or act, if: 10

(i) the disqualification would leave a body with less than a quorum 11
capable of acting; 12

(ii) the disqualified official or employee is required by law to act; or 13

(iii) the disqualified official or employee is the only individual 14
authorized to act. 15

(2) If the Governor, Lieutenant Governor, Attorney General, Treasurer, or 16
Comptroller is required to make a disclosure under paragraph (1) of this subsection, the 17
Governor, Lieutenant Governor, Attorney General, Treasurer, or Comptroller, as 18
appropriate, sh all send a copy of the disclosure to the presiding officers of the General 19
Assembly and to the Ethics Commission. 20

(d) (1) This subsection applies only to: 21

(i) the Governor; 22

(ii) the Lieutenant Governor; 23

(iii) the Attorney General; 24

(iv) the Treasurer; 25

(v) the Comptroller; and 26

(vi) a secretary of a principal department in the Executive Branch. 27

(2) (i) An official who takes executive action that the official knows or 28
reasonably should know would have a material financial impact on the official or a person 29
whose interests are attributable to the official under § 5 –608 of this title shall provide the 30
HOUSE BILL 1074 5

Ethics Commission and the Joint Ethics Committee a description of the executive action 1
and the circumstances of the potential impact. 2

(ii) An official is not required to make a disclosure under this 3
paragraph if the impact is common to all members of: 4

1. the general public or a large class of the general public; or 5

2. a profession or occupation of which the official is a 6
member. 7

5–807. 8

(a) Subject to § 5 –209 of this title, each county and each municipal corporation 9
shall enact provisions to govern the public ethics of local officials relating to: 10

(1) conflicts of interest; 11

(2) financial disclosure; and 12

(3) lobbying. 13

5–808. 14

(a) [Except as provided in subsection (b) of this section, the ] THE conflict of 15
interest provisions enacted by a county or municipal corporation under § 5 –807 of this 16
subtitle: 17

(1) shall be [similar to the provisions] EQUIVALENT TO OR EXCEED THE 18
REQUIREMENTS of Subtitle 5 of this title; but 19

(2) in accordance with regulations adopted by the Ethics Commission and 20
consistent with the intent of this title, may be modified to the extent necessary to make the 21
provisions relevant to the prevention of conflicts of interest in that jurisdiction. 22

[(b) The conflict of interest provisions for elected local officials enacted by a county 23
or municipal corporation under § 5–807 of this subtitle: 24

(1) shall be equivalent to or exceed the requirements of Subtitle 5 of this 25
title; but 26

(2) in accordance with regulations adopted by the Ethics Commission and 27
consistent with the intent of this title, may be modified to the extent necessary to make the 28
provisions relevant to the prevention of conflicts of interest in that jurisdiction.] 29

6 HOUSE BILL 1074

(B) THE CONFLICT OF INTER EST PROVISIONS ENACT ED BY A COUNTY OR 1
MUNICIPAL CORPORATION SHALL INCLUDE A PR OVISION THAT IS EQUI VALENT TO 2
OR EXCEEDS THE REQUIREMENTS OF § 5–902 OF THIS TITLE. 3

5–810. 4

The lobbying provisions enacted by a county or municipal corporation under § 5–807 5
of this subtitle: 6

(1) shall be [substantially similar to the provisions ] EQUIVALENT TO OR 7
EXCEED THE REQUIREMENTS of Subtitle 7 of this title; but 8

(2) (i) shall be modified to the extent necessary to make the provisions 9
relevant to that jurisdiction; and 10

(ii) may be further modified to the extent considered necessary and 11
appropriate by and for that jurisdiction. 12

5–811.1. 13

[(a) This section applies only in Calvert County. 14

(b)] The [county’s] conflict of interest provisions required under § 5 –807(a)(1) of 15
this subtitle shall: 16

(1) include a law or regulation that is equivalent to or exceeds the 17
requirements of § 5–902 of this title[.]; 18

(2) AUTHORIZE THE GOVERNING BODY OF A COUNTY OR MUNICIPAL 19
CORPORATION TO REMOVE A MEMBER OF THE GOVERNING BODY FROM OFFICE FOR 20
A VIOLATION OF THE CONFLICT OF INTEREST PROVISIONS; AND 21

[(c) The county’s ethics provisions shall include a law or regulation that requires 22
the Calvert County Ethics Commission to] 23

(3) REQUIRE THAT THE COUNTY’S OR MUNICIPAL CORPO RATION’S 24
ETHICS COMMISSION make public any recommendation it makes to expel a 25
[Commissioner] MEMBER OF THE GOVERNING BODY OF THE COUNTY OR MUNICIPAL 26
CORPORATION. 27

5–817. 28

(a) In accordance with this section, a school board: 29

HOUSE BILL 1074 7

(1) may adopt conflict of in terest regulations applicable to officials and 1
employees of the school system; and 2

(2) shall adopt conflict of interest regulations applicable to members of the 3
school board. 4

(b) (1) The conflict of interest regulations adopted by a school board under 5
subsection [(a)(1)] (A) of this section: 6

(i) shall be [similar to the provisions of ] EQUIVALENT TO OR 7
EXCEED THE REQUIREMENTS OF Subtitle 5 of this title; but 8

(ii) in accordance with regulations adopted by the Ethics 9
Commission and consistent with the intent of this title, may be modified to the extent 10
necessary to make the regulations relevant to the prevention of conflicts of interest in that 11
school system. 12

(2) [The] IN ADDITION TO THE RE QUIREMENTS UNDER PAR AGRAPH 13
(1) OF THIS SUBSECTION, THE conflict of interest regulations adopted by a school board 14
under subsection (a)(2) of this section SHALL: 15

(i) [shall be equivalent to or exceed the requirements of Subtitle 5 16
of this title; but 17

(ii) in accordance with regulations adopted by the Ethics 18
Commission and consistent with the intent of this title, may be modified to the extent 19
necessary to make the regulations relevant to the prevention of conflicts of interest in that 20
school system] INCLUDE A REGULATION THAT IS EQUIVALENT T O OR EXCEEDS THE 21
REQUIREMENTS OF § 5–902 OF THIS TITLE; 22

(II) AUTHORIZE THE SCHOOL BOARD TO REMOVE A MEMBER OF 23
THE SCHOOL BOARD FRO M OFFICE FOR A VIOLA TION OF THE CONFLICT OF 24
INTEREST REGULATIONS; AND 25

(III) REQUIRE THAT THE SCHOOL BOARD’S ETHICS COMMISSION 26
MAKE PUBLIC ANY RECO MMENDATION TO REMOVE A MEMBER OF THE SCHO OL 27
BOARD. 28

(c) Unless a school board adopts and maintains conflict of interest regulations 29
under subsection (a)(1) of this section, the provisions enacted by the county under § 5 –808 30
of this subtitle shall apply to officials and employees of that school system. 31

5–819. 32

8 HOUSE BILL 1074

(a) In accordance with this section, a school board [may] SHALL adopt regulations 1
relating to lobbying of members of the school board and of officials and employees of the 2
school system. 3

(b) The lobbying regulations adopted by a school board under subsection (a) of 4
this section: 5

(1) shall be [substantially similar to ] EQUIVALENT TO OR EXC EED the 6
provisions of Subtitle 7 of this title; but 7

(2) [(i) may be modified to the e xtent necessary to make the provisions 8
relevant to that school system; and 9

(ii) may be further modified to the extent considered necessary and 10
appropriate by and for that school system ] IN ACCORDANCE WITH R EGULATIONS 11
ADOPTED BY THE ETHICS COMMISSION AND CONSISTENT WITH THE INTENT OF THIS 12
TITLE, MAY BE MODIFIED TO THE EXTENT NECESSARY TO MAKE THE REGULATIONS 13
RELEVANT TO THAT SCHOOL SYSTEM. 14

[(c) Unless a school board adopts and maintains lobbying regulations under this 15
subtitle, the provisions enacted by the county under § 5–810 of this subtitle shall apply to 16
that school system.] 17

5–902. 18

(a) The court may compel compliance with the Ethics Commission’s order by: 19

(1) issuing an order to cease and desist from the violation; or 20

(2) granting other injunctive relief. 21

(b) (1) The court may also: 22

(i) impose a fine: 23

1. not exceeding $5,000 for a violation of this title; 24

2. with each day that the violation occurs being a separate 25
offense; and 26

3. which shall be paid to the State Treasurer and deposited 27
in the General Fund; or 28

(ii) except as provided in paragraph (2) of this subsection, void an 29
official act of an official or employee if: 30

HOUSE BILL 1074 9

1. the official or employee had a conflict of interest that is 1
prohibited by this title; 2

2. the act arose from or concerned the subject matter of the 3
conflict; 4

3. the proceeding was brought within 90 days after the act 5
occurred; and 6

4. the court determines that the conflict had an impact on the 7
act. 8

(2) The court may not void an official act that: 9

(i) appropriates public funds; 10

(ii) imposes a tax; or 11

(iii) provides for the issuance of a bond, a note, or any other evidence 12
of public obligation. 13

(c) After hearing the case, the court may grant all or part of the relief sought. 14

Article – Local Government 15

12–107. 16

(a) [This section applies to all counties except Baltimore City. 17

(b)] The provisions of §§ 9 –105 and 9 –106 of this article apply to an act, an 18
ordinance, or a resolution adopted by a commission county under this section. 19

[(c)] (B) The governing body of a county may enact a law or regulation: 20

(1) designed to prevent conflicts between the private interests and public 21
duties of county officers or employees, including the governing body; and 22

(2) to govern the conduct and actions of county officers and employees, 23
including the governing body, in performing their public duties. 24

[(d)] (C) (1) Except as provided in paragraph (2) of this subsection, the 25
governing body of a county may enact a law or regulation to provide for a penalty, including 26
a fine, a forfeiture, an imprisonment, or a removal from office for violation of any law or 27
regulation enacted under subsection [(c)] (B) of this section. 28

10 HOUSE BILL 1074

(2) The governing body of [Calvert County] A COUNTY shall enact a law or 1
regulation that authorizes the governing body to remove a county elected official from office 2
for violations of any law or regulation enacted under subsection [(c)] (B) of this section or 3
§ 5–807(a)(1) of the General Provisions Article relating to conflicts of interest. 4

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2026. 6