In this subtitle the following words have the meanings indicated. “Contested election” means an election subject to: a recount under Subtitle 1 of this title; or a judicial challenge under Subtitle 2 of this title. “Contested election” includes an election that may be subject to a recount under Subtitle 1 of this title, but for which a recount does not occur because neither candidate files a formal recount petition or initiates a judicial action. “Contested election committee” means an entity formed for the exclusive purpose of receiving donations and making disbursements relating to a contested election.

This subtitle applies only to a person that accepts public campaign financing under: Title 15 of this article; or § 13–505 of this article. A person may accept a donation or make a disbursement relating to a contested election only if the person: establishes a contested election committee; and discloses the donations and disbursements in accordance with this subtitle.

A person may establish a contested election committee at any time by filing a statement of organization with the State Board that includes: the appointment of a treasurer; and any other information that the State Board requires.

A contested election committee shall: deposit all donations received in a designated bank account; and make all disbursements from the designated bank account. Disbursements of a contested election committee shall: pass through the hands of the treasurer; and be in accordance with the purpose of the entity.

A person that accepts public campaign financing under Title 15 of this article may not solicit or accept a donation on behalf of a contested election committee in excess of the contribution limits established under Title 15 of this article. A person that accepts public campaign financing under § 13–505 of this article may not solicit or accept a donation on behalf of a contested election committee in excess of the contribution limits established in law by the governing body of the county in accordance with § 13–505 of this article. A contested election committee may not accept a loan other than a loan from: a financial institution or other entity in the business of making loans; or the personal funds of a candidate or the candidate’s spouse if the contested election committee was established to finance a recount of an election in which the candidate was on the ballot. A loan under this subsection may be of any amount.

The treasurer of a contested election committee shall maintain detailed and accurate records of all: donations received by the contested election committee; disbursements made by the contested election committee; and outstanding obligations of the contested election committee. A contested election committee shall retain the records required to be maintained under subsection (a) of this section for a period of 2 years after filing a final report.

The treasurer of a contested election committee shall file reports with the State Board as required in this subtitle: using an electronic format; with the electronic signature of the treasurer filing the report; under oath; and subject to the penalties for perjury. The State Board shall make the reports submitted under this subtitle publicly available on the Internet.

A report filed by the treasurer of a contested election committee under this subtitle shall include the information required by the State Board with respect to all donations, disbursements, and outstanding obligations of the contested election committee during the reporting period. If the person who established the contested election committee has filed a petition for a recount under Subtitle 1 of this title or has filed a complaint in the circuit court under Subtitle 2 of this title, the treasurer of the contested election committee shall file the contested election committee’s first report on or before the first day after the earlier of: the day the person who established the contested election committee filed the petition for a recount; or the day the person who established the contested election committee filed the complaint in the circuit court. If the person who established the contested election committee has not filed a petition for a recount under Subtitle 1 of this title or filed a complaint in the circuit court under Subtitle 2 of this title, the treasurer of the contested election committee shall file the contested election committee’s first report on or before the day that is 7 days after the day that the contested election committee of the opposing candidate or opposing party filed its first report under paragraph (1) of this subsection. The treasurer of a contested election committee shall file subsequent reports on or before: the Monday that is 30 days after the due date of the first report filed by the contested election committee under subsection (b) of this section; the Monday that is 60 days after the due date of the first report filed by the contested election committee under subsection (b) of this section; and the third Wednesday in January of each year that the contested election committee remains in existence. The State Board shall, by regulation, establish the reporting periods for each of the reports required under this subtitle. If the treasurer of a contested election committee fails to provide all the information required on a report under this subtitle: the State Board shall notify the treasurer in writing of the particular deficiencies; and the treasurer shall file an amended report that includes all the information required within 30 days after service of the notice.

The State Board shall assess late filing fees for failure to properly file a report under this subtitle. The State Board shall assess the fees in the following amounts for each day or part of a day that a report under this subtitle is overdue: $20 for each of the first 7 days; $35 for each of the following 7 days; and $50 for each day thereafter. The maximum fee payable for a report is $1,000. Subject to subparagraph (ii) of this paragraph, a late filing fee under this section shall be paid by the contested election committee. If the contested election committee has insufficient funds with which to pay the full amount of the late filing fee in a timely manner, after the account of the contested election committee is exhausted the balance of the late filing fee is the liability of the treasurer. Late filing fees shall be distributed to the Fair Campaign Financing Fund established under § 15–103 of this article. The State Board shall accept an overdue report that is submitted without payment of the late filing fee, but the report is not considered filed until the fee has been paid. After an overdue report is received under subparagraph (i) of this paragraph, no further late filing fee shall be incurred. The treasurer of a contested election committee that fails to properly file a report may seek relief from a late filing fee imposed under this section for just cause as provided in § 13–337 of this article.

If the State Board determines that there has been for more than 30 days a failure to file a report or pay a late filing fee under this subtitle, the State Board shall issue the notice required under paragraph (2) of this subsection to the treasurer of the contested election committee in violation. The notice shall demand that, within 30 days after service of the notice, either: the failure to file be rectified and any late filing fee due be paid; or the treasurer show cause why the State Board should not ask the appropriate prosecuting authority to prosecute the treasurer for a violation of this subtitle. In its discretion, the appropriate prosecuting authority may refer the matter for action to the Central Collection Unit within the Department of Budget and Management. A treasurer who fails, without cause, to file the report and pay the late filing fee within 30 days after service of the notice required under subsection (a)(2) of this section is guilty of a misdemeanor and on conviction is subject to the penalties prescribed in § 13–603 of this article.

A candidate whose contested election committee has failed to file a report or pay a late filing fee that is due under this subtitle on or before the deadline for declining the nomination specified under § 5–801(b) of this article may not be issued a certificate of nomination under § 5–705 of this article. A candidate whose contested election committee has failed to file a report or pay a late filing fee that is due under this subtitle may not, until the report is filed or the late filing fee is paid: be deemed to be elected to a public or party office in the State; take the oath or otherwise assume the duties of the office; or receive a salary or compensation for the office. An official of the State or any of its political subdivisions may not issue a commission or administer an oath of office to an individual until that official receives certification from the State Board that all reports due under this subtitle from or on behalf of that individual have been filed.

The State Board may impose a civil penalty on a contested election committee in accordance with this section for the following violations: making a disbursement for a purpose not related to a contested election; failure to dispose of surplus funds in accordance with § 12–313 of this subtitle; failure to maintain the records required under § 12–306 of this subtitle; or failure to report all donations, disbursements, and outstanding obligations as required under § 12–308 of this subtitle. A civil penalty imposed under this section shall be assessed in the amount and in the manner specified in § 13–604.1 of this article. Subject to paragraph (2) of this subsection, a civil penalty imposed under this section shall be paid by the contested election committee. If the contested election committee has insufficient funds with which to pay the full amount of the civil penalty in a timely manner, after the account of the contested election committee is exhausted, the balance of the civil penalty is the liability of the treasurer.

Any part of a public contribution made to a contested election committee that is not spent shall be repaid to the appropriate government entity. In computing whether part of a public contribution is not spent, all private contributions to the person shall be treated as spent before the expenditure of any public contribution. After repaying remaining public contributions under subsection (a) of this section and before filing a final report, a contested election committee shall pay all outstanding obligations and dispose of all its remaining assets by returning the remaining balance in the account of the contested election committee to the donors on a pro rata basis.