The General Assembly recognizes that our system of representative government depends in part on guaranteeing that election campaigns are funded by and for the people and on eliminating the corrupting and undemocratic effects of large private contributions. Accordingly, the General Assembly finds and declares that an equitable means of public campaign financing is necessary in these times in order for representative democracy to continue to function effectively.

In this title the following words have the meanings indicated. “Comptroller” means the Comptroller of the State. “Contribution card” means a document signed, including by electronic signature, by a donor attesting that the contribution made to a campaign is made with the personal funds of the donor. “Eligible gubernatorial ticket” means a gubernatorial ticket that qualifies to receive a public contribution. “Eligible private contribution” means a monetary private contribution from an individual who is a resident of the State that does not exceed $250 in the aggregate for the election cycle and is accompanied by a contribution card. “Fund” means the “Fair Campaign Financing Fund”. “Gubernatorial ticket” means a Governor–Lieutenant Governor unit. “Private contribution” means a contribution or series of contributions from an individual that does not exceed $250 in the aggregate for the election cycle in which the contribution is made. “Public contribution” means money distributed from the Fund to a gubernatorial ticket under this title.

There is a Fair Campaign Financing Fund. The Comptroller shall administer the Fund in accordance with this section. In accordance with this title, the Comptroller shall: credit to the Fund: all money collected or appropriated under this title; voluntary contributions to the Fund made electronically through the State Board’s website; fees, fines, and penalties assessed under this article or the General Provisions Article that are expressly allocated to the Fund by law; an anonymous contribution paid to the Fund under § 13–239 of this article; an illegal contribution paid to the Fund under § 13–239.1 of this article; surplus campaign funds paid to the Fund under § 13–247 of this article; and contributions to the Fund made through the checkoff on the individual income tax return established under § 2–113.1 of the Tax – General Article; subject to the usual investing procedures for State funds, invest the money in the Fund; and make distributions from the Fund promptly on authorization by the State Board. The Comptroller shall distribute public contributions: only on authorization of the State Board; and as to each eligible gubernatorial ticket, to the campaign account of a single campaign finance entity established under Title 13, Subtitle 2 of this article to receive public contributions. The Comptroller shall submit a statement of the Fund’s balance to the State Board each month. On or before June 30 of the third year immediately preceding a year of a gubernatorial election, the State Board shall determine whether the balance of the Fund is sufficient to provide for a full contribution for: in a primary election, two gubernatorial tickets; and in a general election, one gubernatorial ticket. If the balance of the Fund is determined to be insufficient to provide the public contributions described under paragraph (1) of this subsection: on or before August 1 of the third year immediately preceding a year of a gubernatorial election, the State Board shall send a notice to the Governor of the amount of money needed to provide the public contributions described under paragraph (1) of this subsection; and the Governor shall include in the annual budget bill for the appropriate fiscal year an appropriation in an amount equal to the amount submitted to the Governor under item (i) of this paragraph. For fiscal year 2023, the Governor shall include in the annual budget bill an appropriation of at least $4,000,000 to the Fund. To pay costs directly related to the administration of this title, the State Board may expend in each fiscal year an amount of money in the Fund that does not exceed the lesser of: 3% of the Fund’s balance, as calculated on the last day of the immediately preceding fiscal year; or $100,000.

Before receiving a private contribution, a gubernatorial ticket shall: on or before the deadline to file a certificate of candidacy under § 13–303 of this article, file with the State Board a notice of intent to participate as a publicly financed candidate for both the primary and general elections; and establish a campaign finance entity for complying with the requirements of this title. A campaign finance entity established under subsection (a)(2) of this section may accept only: a private contribution; an eligible private contribution; a public contribution; and subject to paragraph (2) of this subsection, a contribution or loan from a member of a gubernatorial ticket or the spouse of a member of the gubernatorial ticket. A member of a gubernatorial ticket or the spouse of a member of a gubernatorial ticket may not make a contribution of or lend a combined total of more than $50,000 to the campaign of the gubernatorial ticket. To qualify as an eligible gubernatorial ticket, a gubernatorial ticket shall collect within the qualifying period at least: 1,500 eligible private contributions; and an aggregate total of $120,000.

For principal political party candidates, the qualifying period is from the first day of the election cycle for a gubernatorial election until the first Monday in May, inclusive, of the election year. For all other participating candidates, the qualifying period to qualify for only the general election is from the first day of the election cycle for a gubernatorial election until the first Monday in August, inclusive, of the election year.

After filing a notice of intent to qualify for a public contribution under this title, a gubernatorial ticket or a person acting on behalf of the gubernatorial ticket may not, for the benefit of any political committee or any person required to register with the State Board under § 13–306 or § 13–307 of this article or for a participating organization organized under § 13–309.2 of this article: solicit contributions, including the authorized use of the names or images of the gubernatorial ticket in the solicitation; or operate in coordination with any entity for fundraising activities. After filing a notice of intent to qualify for a public contribution under this title, the members of a gubernatorial ticket may not be a member of a slate that does not receive a public contribution. Until a final campaign finance report is filed with the State Board and any remaining funds of the public contribution distributed to a gubernatorial ticket are repaid to the Comptroller for redeposit in the Fund in accordance with § 15–109 of this title, any authorized candidate campaign committee organized under Title 13 of this article on behalf of the members of a gubernatorial ticket may not engage in campaign finance activity.

In accordance with subsection (c) of this section and regulations adopted by the State Board, the State Board shall authorize distribution of money in the Fund on a continuing basis on certification that the qualifications under § 15–104 of this title have been met. Distributions shall begin not earlier than July 1 of the year before the election. If the State Board determines that there is not, or may not be, sufficient money in the Fund to provide a full public contribution to all eligible gubernatorial tickets, the State Board shall allocate the available money so that each eligible gubernatorial ticket in that election receives a proportionate share of the full public contribution to which the gubernatorial ticket otherwise would be entitled. The State Board shall authorize distribution of the money that is designated for distribution as provided in this subsection. The State Board shall distribute a public contribution from the Fund to each gubernatorial ticket during the distribution period in matching dollars equal to: $8 for each dollar of an eligible private contribution received for the first $50 of each eligible private contribution; $6 for each dollar of an eligible private contribution received for the second $50 of each eligible private contribution; $2 for each dollar of an eligible private contribution received for the third $50 of each eligible private contribution; and $0 for each dollar of an eligible private contribution received for the remaining $100 of each eligible private contribution. The total public contribution payable to a gubernatorial ticket for either a primary or general election may not exceed $3,000,000. The State Board may not distribute matching dollars from the Fund to a gubernatorial ticket for: a contribution or loans from the gubernatorial ticket or the spouse of a member of the gubernatorial ticket; or an in–kind contribution of property, goods, or services. A gubernatorial ticket that is unopposed in a primary election shall receive one–third of the public contribution amount the gubernatorial ticket would otherwise be entitled to receive.

A gubernatorial ticket may withdraw from participation as a publicly funded candidate at any time before a public contribution is received by the gubernatorial ticket’s campaign finance entity. If a public contribution has been received by an eligible gubernatorial ticket’s campaign finance entity, the eligible candidate may withdraw from participating if the gubernatorial ticket: files a statement of withdrawal on a form prescribed by the State Board; and repays to the Fund the full amount of any public contribution received, with interest established in regulation by the State Board.

A public contribution may be spent only: in accordance with § 13–218 of this article; to further the gubernatorial ticket’s nomination or election; for expenses incurred not later than 45 days after the election for which the public contribution was made; for purposes that do not violate State law; and for an expenditure that is accompanied by a receipt. An eligible gubernatorial ticket may not make: a transfer; or an expenditure relating to fundraising activity by any other political committee organized under this article. Any part of a public contribution that is not spent shall be repaid to the Comptroller for redeposit in the Fund not later than 90 days after the election for which the public contribution was made. In computing whether part of a public contribution is not spent, all private contributions to the gubernatorial ticket shall be treated as spent before the expenditure of any of the public contribution. The members of a gubernatorial ticket and the responsible officers of the campaign finance entity that received a public contribution are jointly and severally personally liable civilly and criminally for repaying to the Comptroller any part of a public contribution that is not spent or that was spent in violation of subsection (a) of this section.

Except as provided in subsection (b) of this section, any balance in the Fund after a gubernatorial election shall remain in the Fund for the purposes of this title. If general funds are appropriated to the Fund under § 15–103(f)(2) of this title, the State Board shall authorize repayment to the General Fund of the State of the amount that exceeds the amount necessary to provide for a full contribution for eligible candidates described under § 15–103(f)(1) of this title.

Subject to § 15–103 of this title, the State Board shall administer this title. The State Board may request the assistance of the Comptroller to administer this title. The State Board shall adopt comprehensive regulations to implement this title. The regulations shall include provisions relating to: the deadline for a gubernatorial ticket to submit a request for a public contribution; the dates when the State Board will authorize, and the Comptroller will make, distributions of public contributions to gubernatorial tickets in accordance with this title; a proportionate distribution when there is not, or may not be, sufficient money in the Fund; thresholds for in–kind contributions that are not considered contributions or expenditures for the purposes of this title; distributions to a write–in gubernatorial ticket; and the purposes for which a public contribution may not be used.

A person who violates this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both for each violation.

In this section, “person” includes a political committee. This subsection applies only to violations committed, as applicable, by: the eligible gubernatorial ticket; the eligible gubernatorial ticket’s campaign finance entity; the chairman of the eligible gubernatorial ticket’s campaign finance entity; the treasurer of the eligible gubernatorial ticket’s campaign finance entity; or a person acting on behalf of a person listed in item (i), (ii), (iii), or (iv) of this paragraph. The State Board may impose a civil penalty in accordance with this section for the following violations: making a disbursement in a manner not authorized under § 13–218(b)(2), (c), and (d) of this article; failure to maintain a campaign bank account as required under § 13–220(a) of this article; making a disbursement by a method not authorized under § 13–220(d) of this article; failure to maintain detailed and accurate account books and records as required under § 13–221 of this article; fund–raising during the General Assembly session in a manner not authorized in § 13–235 of this article; failure to report all contributions received and expenditures made as required in § 13–304(b) of this article; failure to include an authority line on campaign material as required in § 13–401 of this article; or failure to retain a copy of campaign material as required in § 13–403 of this article. A civil penalty imposed under this section for a violation specified in subsection (b) of this section is in addition to any other sanction provided by law. Except as otherwise provided in this title or as provided in paragraph (2) of this subsection, the amount of a civil penalty imposed under this section may not exceed $1,000 for each violation. As to a violation of § 13–235 of this article, the campaign finance entity that receives a contribution as a result of a violation shall: refund the contribution to the contributor; and pay a civil penalty that equals $1,000 plus the amount of the contribution, unless the State Board at its discretion assesses a lesser penalty for good cause. The civil penalty is payable to the State Board by the person charged in a citation within 20 calendar days after service of the citation. Subject to paragraphs (2) and (3) of this subsection, a civil penalty imposed under this section shall be paid by the campaign finance entity. If the campaign finance entity has insufficient funds with which to pay the full amount of the civil penalty in a timely manner, after the campaign account of the finance entity is exhausted the balance of the civil penalty is the joint and several liability of the responsible officers. If a violation is committed by a person not acting on behalf of, or at the request or suggestion of, a candidate or a campaign finance entity, the civil penalty shall be paid by the person who committed the violation. The State Board may issue a citation to any person the State Board believes is committing or has committed a violation specified in subsection (b) 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 title.

This title is the Public Financing Act.