In this title the following words have the meanings indicated. “Applicable contribution” means a contribution or donation by a person or attributed to a person to or for the benefit of a candidate for an office of a governmental entity with which the person is doing public business. “Beneficial ownership” means: any ownership interest of 5% or more in a business; any ownership interest of 5% or more in one or more entities in a chain of parent and subsidiary entities, any one of which participates in at least 5% of the capital or profits of a business; or possession of an interest that exists under a contract, a relationship, an understanding, or any other arrangement and entitles a person to benefits substantially equivalent to an ownership interest of 5% or more of a business. “Business entity” includes a firm, corporation, trust, unincorporated association, or other organization, whether or not conducted for profit. “Candidate” includes an incumbent office holder. “Contract” means an agreement in any form entered into by a governmental entity for a procurement as defined in § 11–101(n)(1) of the State Finance and Procurement Article. “Contract” does not include: a collective bargaining agreement with an employee organization; an agreement with a contractual employee, as defined in § 1–101(d) of the State Personnel and Pensions Article; a Medicaid, Judicare, or similar reimbursement contract for which law sets: user or recipient eligibility; and price payable by the State; or a Medicaid contract with a managed care organization, as defined in § 15–101(e) of the Health – General Article as to which regulations adopted by the Department establish: recipient eligibility; minimum qualifications for managed care organizations; and criteria for enrolling recipients in managed care organizations. Subject to paragraph (2) of this subsection, “contribution” has the meaning stated in § 1–101 of this article. “Contribution” does not include: a bona fide gift by a spouse or relative within the third degree of consanguinity; or an honorary membership in a social, service, or fraternal organization presented as a courtesy by the organization. “Director” means a member of the board of directors of a business entity. “Doing public business” means making or having a single contract with a single governmental entity involving cumulative consideration of at least $200,000. “Doing public business” does not include receiving a salary from a governmental entity. “Governmental entity” means: the State, a county, a municipal corporation, or other political subdivision of the State; and a unit of the State, a county, a municipal corporation, or other political subdivision of the State. “Make a contribution” includes to cause a contribution to be made. “Officer” means an individual who serves as a business entity’s chief executive officer, president, vice president, secretary, treasurer, chief financial officer, managing partner, managing member, or principal, or in any other formal or informal role in which the individual exercises substantial independent responsibility for managing the affairs of a business entity. “Subsidiary” means a business entity that is 30% or more owned or controlled by another business entity. “Subsidiary” does not include a business entity that does not have a contract doing public business and is directly or indirectly owned or controlled by another business entity: the securities of which are traded on a national exchange; for which no individual owns or controls more than 10% of the business entity; and that is defined under 12 U.S.C. § 1841(a).

For purposes of this title, words and phrases defined under § 1-101 of this article shall be deemed, as the case may be, to include or apply to an individual who seeks or holds elective office in a municipal corporation and a campaign fundraising entity for that individual.

A contribution to a campaign finance entity of a candidate shall be deemed to be a contribution to the candidate for the purposes of this title.

A person shall file a registration statement with the State Board within 15 business days after the award of a contract that causes the person to be doing public business. The registration statement shall include: the person’s name and address; any resident agent of the business located in the State; if known, each person who has beneficial ownership of the business entity; and any other information required by the State Board. A person doing public business shall update the information on beneficial ownership included in the registration statement under subsection (b) of this section in accordance with regulations adopted by the State Board.

A person doing public business shall file a statement with the State Board as provided in this section. Within 15 business days after filing the registration statement required under § 14–103.1 of this title, a person doing public business shall file an initial statement covering the preceding 24 months. A person who files an initial statement under paragraph (1) of this subsection, a person who was doing public business on December 31, 2014, or a person who has obtained approval from the State Board under subsection (c)(2) of this section, shall file a semi–annual statement in accordance with this paragraph for each reporting period specified in subparagraph (ii) of this paragraph if performance remains uncompleted on the contract that caused the person to be doing public business. The statements required by subparagraph (i) of this paragraph shall cover 6–month reporting periods ending on April 30 or October 31. A statement required by subparagraph (i) of this paragraph shall be filed on or before the last day of the month immediately following the day on which the reporting period ends. The statement required by this section shall be made under oath and, except as provided in paragraph (2) or (3) of this subsection, shall contain: the name of each candidate, if any, to whom one or more applicable contributions in a cumulative amount of $500 or more were made during the reporting period; the office sought by each candidate named in item (i) of this paragraph; the amount of aggregate contributions made to each candidate named in item (i) of this paragraph; the name of each unit of a governmental entity with which the person did public business during the reporting period; the nature and amount of public business done with each unit of a governmental entity; and if the public business was done or the contribution was made by another person but is attributed to the person filing the statement, the name of the person who did the public business or made the contribution and the relationship of that person to the person filing the statement. The information required by paragraph (1)(iv) and (v) of this subsection may be omitted on the written approval of the State Board if the State Board finds that: requiring the information would be unduly burdensome; the public interest would not be impaired substantially by the omission of this information; and the person filing the statement stipulates that the person has done public business during the reporting period. A person who has obtained approval from the State Board under this paragraph: is not required to file an initial statement under subsection (b)(1) of this section; shall file the statements required under subsection (b)(2) of this section if performance remains uncompleted on any contract that causes the person to be doing public business; and shall include in each statement the information required under paragraph (1)(i), (ii), (iii), and (vi) of this subsection for all contributions by the person or attributed to the person in a cumulative amount of $500 or more to or for the benefit of a candidate for an office of any governmental entity. If a person doing public business did not make applicable contributions in a cumulative amount of $500 or more to a candidate during the reporting period, the statement filed by the person under this section is required to contain only the following: the name of each unit of a governmental entity with which the person did public business during the reporting period, unless the person has obtained approval from the State Board under paragraph (2) of this subsection to omit this information; and a stipulation that the person did not make applicable contributions in a cumulative amount of $500 or more to a candidate during the reporting period. The State Board shall retain each statement filed under this title as a public record for at least 2 years after its receipt and shall make the statement publicly available on the Internet. A person shall file a statement required under this section in an electronic format required by the State Board.

Except as provided in subsection (f) of this section, an applicable contribution made by an officer, director, or partner of a business entity doing public business shall be attributed to the business entity. Except as provided in subsection (f) of this section, each officer, director, or partner of a business entity doing public business who makes an applicable contribution shall report the applicable contribution to the chief executive officer of the business entity. An applicable contribution by an officer, director, partner, employee, agent, or other person made at the suggestion or direction of a business entity doing public business shall be attributed to the business entity. Each officer, director, partner, employee, agent, or other person who, at the suggestion or direction of a business entity doing public business, makes an applicable contribution shall report the applicable contribution to the chief executive officer of the business entity. Business done with a governmental entity by a subsidiary of a business entity shall be attributed to the business entity. Applicable contributions made by or attributed to a subsidiary shall be attributed to the business entity. In this subsection: “officer” means an individual who serves as an organization’s president or chairman, vice–president or vice–chairman, secretary, treasurer, or executive director, or any individual exercising duties comparable to those typically exercised by an individual holding one of those titles in a nonprofit organization; and “officer” does not include an individual holding a title but not exercising substantial independent responsibility on behalf of the organization similar to the responsibility typically exercised by an individual holding one of the titles under item (i) of this paragraph. Subject to paragraph (3) of this subsection, an applicable contribution made by an individual who serves as a trustee or member of the board of directors or as an officer of a nonprofit organization doing public business is not attributable to the organization, and the individual is not required to report the applicable contribution to the chief executive officer of the organization. This subsection does not apply if: the applicable contribution is made on the recommendation of the nonprofit organization; or the individual described in paragraph (2) of this subsection is paid by the nonprofit organization. A person doing public business shall maintain detailed and accurate records of: contracts made by the person or attributed to the person that cause the person to be doing public business; and applicable contributions made by the person or attributed to the person. Records required to be kept under this subsection shall be preserved until the earlier of: 10 years after the creation of the record; or 4 years after performance is completed on the contract that caused the person to be doing public business.

If a contract involves consideration to be paid over multiple reporting periods, the total ascertainable consideration to be paid under the contract shall be attributable to the date when the contract is made.

A governmental entity that has awarded a person a contract that causes the person to be doing public business shall: require the person to certify that the person has filed the statement required under § 14–104(b)(1) of this title; if the contract is subject to approval by the Board of Public Works, require the person to certify to the Board of Public Works that the person has filed the statement required under § 14–104(b)(1) of this title; and provide the State Board with the person’s name, address, and any other contact information required by the State Board. A governmental entity may comply with paragraph (1)(iii) of this subsection by sending to the State Board a quarterly report on a form provided by the State Board. A quarterly report sent under subparagraph (i) of this paragraph shall: include the required information for any person that was awarded a contract that caused the person to be doing public business with the governmental entity during the preceding calendar quarter; and be submitted to the State Board no later than 10 business days after the close of each calendar quarter. If a person files a statement under § 14–103.1 or § 14–104 of this title that does not include all the information required, the State Board shall notify the person in writing of the particular deficiencies. Within 30 days after service of the notice under paragraph (1) of this subsection, the person shall file an amended statement that includes all the information required. As provided in this subsection, the State Board may impose fees for late filing of: a statement required under § 14–103.1 or § 14–104 of this title; or an amended statement required under subsection (b) of this section. The State Board may impose late filing fees in the same amounts and in the same manner as provided under §§ 13–331, 13–335, and 13–337 of this article for late filing of campaign finance reports. Late filing fees imposed under this subsection shall be distributed to the Fair Campaign Financing Fund established under § 15–103 of this article.

A person who violates a provision of this title without knowing that the act is illegal shall pay a civil penalty in accordance with subsections (b) through (g) of this section. A penalty imposed under this section may not exceed $5,000. An infraction described in paragraph (1) of this subsection is a civil offense. If the State Prosecutor determines that a person unintentionally, and without criminal intent, has violated a provision of this title, the State Prosecutor shall issue to the person a civil citation that contains: the name and address of the person cited; the nature, time, and place of the violation; the manner in which the violation occurred; the maximum penalty for the violation; the manner and time in which to pay the penalty; where to pay the penalty; and a statement that the person receiving the citation has a right to a trial in the District Court. The State Prosecutor shall file the citation in the District Court. The citation shall be served in accordance with the Maryland Rules. On receipt of the return of service, the District Court shall schedule the case for trial and notify the person named in the citation of the trial date. The trial in the District Court shall be conducted in the same manner as set forth for municipal infractions under §§ 6–108, 6–109, and 6–111 through 6–115 of the Local Government Article. The District Court shall distribute all late fees collected to the Fair Campaign Financing Fund established under § 15–103 of this article. An adjudication of a violation under this subsection: is not a criminal conviction; and does not carry with it any of the civil disabilities that arise from a criminal conviction. A person who is adjudicated in violation as set forth in a citation issued under subsection (b) of this section is liable for the cost of the District Court proceedings. If a person who has been served with a citation fails to appear for trial, the District Court, at the request of the State Prosecutor, may dismiss the citation or enter a civil judgment against the person: in favor of the State Board; in accordance with the Maryland Rules; and in an amount not exceeding the maximum fine set forth in subsection (a) of this section and any late fees owed to the State Board. A civil penalty imposed under this section shall be distributed to the Fair Campaign Financing Fund established under § 15–103 of this article.

A person who knowingly and willfully violates this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $25,000 or imprisonment not exceeding 1 year or both. An officer or a partner of a business entity who knowingly authorizes or participates in a violation of this title by the business entity is subject to the penalty provided in subsection (a) of this section. A person may not willfully make a false, fraudulent, or misleading statement or entry in any filing that is under oath and is required by this title. A person may not make an electronic submission of a statement required under § 14–104 of this title or any other document required by this title on behalf of another person without that person’s express consent. A person who violates this subsection is guilty of perjury and on conviction is subject to the penalty provided under the Criminal Law Article.

The State Board may impose a civil penalty in accordance with this section for the following violations: failure to report current information on beneficial ownership as required under § 14–103.1 of this title; failure to report all applicable contributions made as required under § 14–104 of this title; and failure to maintain detailed and accurate records and reports as required in § 14–105 of this title. A civil penalty imposed under this section for a violation specified in subsection (a) of this section is in addition to any other sanction provided by law. Except as otherwise provided in this title, the amount of a civil penalty imposed under this section may not exceed the maximum amount provided under § 13–331 of this article for late filing of campaign finance reports. A civil penalty is payable to the State Board by the person charged in a citation within 20 calendar days after service of the citation. The State Board may issue a citation to any person the State Board believes is committing or has committed a violation specified in subsection (a) of this section. The citation shall be served on the defendant in accordance with the Maryland Rules. The citation shall contain: the certification by the State Board attesting to the truth of the matter set forth in the citation; the name and address of the person charged; the nature, time, and place of the violation; the manner in which the violation occurred; the amount of the penalty assessed; the manner, time, and location to pay the penalty; a statement that the person receiving the citation has a right to trial in the District Court; and the effect of failing to pay the assessed fine or of failing to demand a trial within the prescribed time. A person charged in a citation may elect to stand trial for the violation by notifying the State Board in writing of the person’s intent to stand trial. The written notice shall be given at least 5 days before the date of payment as set forth in the citation. On receipt of the written notice of intent to stand trial, the State Board shall forward to the State Prosecutor a copy of the citation and the written notice. The State Prosecutor shall forward to the District Court having venue a copy of the citation and the written notice. On receipt of the citation and the written notice: the State Prosecutor shall assume responsibility for prosecuting the violation; and the District Court shall schedule the case for trial, notify the defendant of the trial date, and summon the defendant to appear. If a person charged in a citation fails to pay the penalty by the date of payment set forth in the citation and fails to deliver to the State Board the written notice of intent to stand trial, the person is liable for the assessed penalty. The State Prosecutor, on behalf of the State Board, may double the penalty to an amount not to exceed $2,000 and request adjudication of the case through the District Court by filing a demand for judgment on affidavit. The defendant’s failure to respond to the summons of the District Court shall result in the entry of judgment against the defendant in favor of the State Board in the amount set forth in the citation if a proper demand for judgment on affidavit has been made. If a person is found by the District Court to have committed a violation: the District Court shall order the person to pay the penalty set forth in the citation and may double the amount of the penalty to an amount not to exceed $2,000; the penalty imposed shall constitute a judgment in favor of the State Board; and if the penalty remains unpaid for 30 days following the date of its entry, the judgment shall be enforceable in the same manner and to the same extent as other civil judgments for money unless the court has suspended or deferred payment of the penalty as provided in item (2) of this subsection; the District Court may suspend or defer the payment of any penalty under conditions that the court sets; the defendant shall be liable for the costs of the proceedings in the District Court; and the District Court may order the person to abate the violation. If a defendant fails to pay any penalty or cost imposed by the District Court without good cause, the District Court may punish the failure as contempt of court. Adjudication of a violation under this section: is not a criminal conviction; and does not impose any of the civil disabilities that arise from a criminal conviction. In a District Court proceeding relating to a violation under this section: the State Prosecutor has the burden to prove that the defendant has committed the violation by clear and convincing evidence; the District Court shall apply the evidentiary standards as provided by law or rule for the trial of civil causes; the District Court shall ensure that the defendant has received a copy of the charges against the defendant and that the defendant understands those charges; the defendant may cross–examine all witnesses who appear against the defendant, produce evidence or witnesses in the defendant’s own behalf, or testify in the defendant’s own behalf; the defendant shall be entitled to be represented by counsel of the defendant’s own selection and at the defendant’s own expense; the defendant may enter a plea of guilty or not guilty of the violation as charged; and the verdict of the District Court shall be guilty of a violation or not guilty of a violation, or the District Court may, before rendering judgment, place the defendant on probation. The State Board shall consider the following in determining the amount of a penalty under this section: the severity of the violation for which the penalty is to be assessed; the good faith of the violator; and any history of prior violations. Penalties collected under this section shall be distributed to the Fair Campaign Financing Fund established under § 15–103 of this article.

This title shall be liberally construed to require full disclosure.

The State Board may adopt regulations to implement this title.