This chapter applies to political action committees registered with the State Board under Election Law Article, §§13-207 and 13-208, Annotated Code of Maryland. At the time of filing a Statement of Organization at the State Board, a political action committee shall: Select a name of the political action committee that identifies its purpose and does not deceive or intentionally confuse the voter; Appoint responsible officers; File a statement of purpose identifying: The special interests promoted by or associated with the political action committee or its responsible officers, or the business or occupation that the contributors have in common; If applicable, the name of each candidate or ballot issue the political action committee was primarily formed to promote or defeat; and If applicable, the sponsor or affiliated entity identified or associated with the political action committee; State whether or not the political action committee will exclusively make: Independent expenditures; Disbursements for electioneering communications; or Both; and State the elections the political action committee will participate in on a recurring basis until the political action committee files a final campaign finance report. In General. Except as provided in §B of this regulation, a person may make a contribution to a political action committee subject to the contribution limits set forth in Election Law Article, §13-226, Annotated Code of Maryland. Exception. A person may make an unlimited contribution to a political action committee that is registered to make exclusively independent expenditures, disbursements for electioneering communications, or both. Reports. A political action committee shall file campaign finance reports required under Election Law Article, §13-309, Annotated Code of Maryland. Disclosure Reports. In addition to the reports required under §A of this regulation, a political action committee registered to make exclusively independent expenditures or disbursements for electioneering communications, or both, shall file disclosure reports required under Election Law Article, §13-309.1, Annotated Code of Maryland. In General. Except as provided in §B of this regulation, for any political action committee subject to the requirements of Election Law Article, §13-309.1, Annotated Code of Maryland, a disclosure report shall be filed within 48 hours after the day on which the committee’s spending on campaign material equals $10,000 or more in the aggregate in expenditures or disbursements, outstanding obligations, orders, agreements, or any combination thereof. Exception. A disclosure report is not required when the expenditures are to pay an outstanding obligation that has previously been disclosed on either a campaign finance report or a disclosure report. Expenditures Made. For expenditures made, the disclosure report filed by a political action committee registered to make exclusively independent expenditures or electioneering communications shall include: The date the expenditure was made; The transaction method, including any information on the transaction the State Administrator may require; The name and address of the payee; If the expenditure was to reimburse a campaign worker, the name and address of the campaign worker and the name and address of the ultimate recipient of the expenditure; The amount of the expenditure; A description of the goods or services for which the expenditure was made, including whether the expenditure was for a paid campaign advertisement; If an independent expenditure: The identity of the candidate or ballot issue to which the campaign material relates; and Whether the independent expenditure supports or opposes the candidate or ballot issue; If an electioneering communication: The identity of the candidate or ballot issue to which the campaign material relates; and Whether the electioneering communication advocates support of or opposition to a candidate or ballot issue; and If the expenditure was made to a person to engage in online advocacy on behalf of the political action committee, the name and Internet address of any social media identifier, online website, web log, blog, or microblog used by that person. Outstanding Obligations. For outstanding obligations, the disclosure report filed by a political action committee registered exclusively for independent expenditures or electioneering communications shall include: The name and address of the person to whom an outstanding obligation is owed; The date the outstanding obligation was incurred; The current balance of the outstanding obligation as of the end of the disclosure reporting period; For an outstanding obligation other than a loan: A brief description of the goods or services received by the committee; and Whether the outstanding obligation was for campaign material and, if so, the identity of the candidate or ballot issue to which the campaign material relates; and If the outstanding obligation is a loan, all of the information required by Election Law Article, §13-230, Annotated Code of Maryland. Contributions Received. For contributions received, the disclosure report filed by a political action committee registered to make exclusively independent expenditures or electioneering communications shall include: The date that the contribution was received by the campaign finance entity; The monetary amount or fair market value of the item or service rendered of the contribution; The name of the person making the contribution; If the person is not an individual, the permanent residential address of the individual contributor or registered business address of the person; Whether the contribution transaction was cash, check, credit card, or payroll deduction; Whether the contribution is from: An individual; A business entity, union, or other legal entity; A federal committee; A political club; A Maryland political action committee; A participating organization; A person making independent expenditures or electioneering communications; or A nonfederal out-of-State political committee; and If the contribution is an in-kind contribution, a description of the in-kind contribution. Applicability. The disclosure requirement on whether the campaign material supports or opposes a candidate or ballot issue shall be determined by the candidate or ballot issue that is prominently featured on the campaign material. Filing Method. A disclosure report shall be filed electronically by means of the browser-based software provided by the State Administrator. Additional Filing Requirements. Disclosure reports shall include an attestation by the responsible officers, under penalties of perjury and in a format approved by the State Administrator, that the contents of the electronic filing are a complete and accurate statement of the expenditures made by the political action committee. The State Board will not accept a disclosure report unless it is filed with an electronic signature of the responsible officers. Prior to the receipt or disbursement of compliance funds, a political action committee shall establish a compliance account by: Opening a checking account at a financial institution that does business in the State, which checking account shall be: Designated as the compliance account; and Segregated from the campaign accounts of the political action committee as required under Election Law Article, §13-220, Annotated Code of Maryland; and Registering the compliance account with the State Board in a manner that identifies it as the compliance account of the political action committee. Account Books. The political action committee shall: Maintain account books and records for the compliance account in accordance with the requirements of Election Law Article, §13-221, Annotated Code of Maryland; Segregate the account books and records for the compliance account from the account books and records required for campaign accounts; Allow the responsible officers access to the account books and records of the compliance account; and Report all donations received, disbursements made, and outstanding obligations incurred by the compliance account on the political committee’s regularly scheduled campaign finance report in accordance with Election Law Article, §13-309, Annotated Code of Maryland. Other Permissible Accounts or Investments. In addition to the checking account required under Regulation .08 of this chapter, a political action committee may establish additional bank accounts or temporarily invest compliance funds. Compliance funds may be invested only in: Deposit accounts at a financial institution that are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA); Certificates of deposit with a stated rate of interest and a term of 3 years or less; Obligations of the U.S. Government or its agencies with maturities of 3 years or less; and Cash management accounts, money market accounts, or money market mutual funds that are offered and available to the general public. Disclosure. The political action committee shall report all donations received, disbursements made, and any liabilities or outstanding obligations incurred regarding the compliance accounts on the regularly scheduled campaign finance report or disclosure report for that political action committee. Donations Received. For donations deposited into a compliance account, the campaign finance or disclosure report shall include: The date that the donation was received; The amount of money or fair market value of the donation; The name of: The individual who made the donation; The business entity or other legal entity that made the donation; or The non-federal, out-of-State political committee that made the donation; The address of the donor, provided that: If the donor is an individual: The address where the individual resides or receives residential mail; or An alternate address approved by the State Board if the State Board has granted the individual’s request for confidentiality under COMAR 33.04.02; or If the donor is a business entity or other legal entity, the address where that business entity or other legal entity is registered, does business or receives official mail; The method of the transaction and any other information on the transaction method required by the State Administrator; The aggregate amount of donations received to date from the donor for the election cycle in which the campaign finance report is filed; and A designation on the campaign finance or disclosure report that the donation was to the compliance account. Disbursement Made. For disbursements made using compliance funds, the campaign finance or disclosure report shall include: The date the disbursement was made; The method of the disbursement transaction, including any information on the transaction method required by the State Administrator; The name and address of the payee and the ultimate recipient of the compliance account funds, if other than the payee; The amount of the disbursement; A description of the purpose of the disbursement; and A comment on the campaign finance or disclosure report explaining that the disbursement was made from the compliance account and was used for a permissible compliance purpose. Outstanding Obligations. For outstanding obligations of the compliance account, the campaign finance or disclosure report shall include: The name and address of the person to whom an outstanding obligation is owed; The date the outstanding obligation was incurred; The current balance of the outstanding obligation as of the end of the campaign finance reporting period; For an outstanding obligation other than a loan, a brief description of the item relating to the outstanding obligation; If the outstanding obligation is a loan, all the information required by Election Law Article, §13-230(c), Annotated Code of Maryland; and A designation on the campaign finance or disclosure report that the outstanding obligation was for compliance purposes. Use of the Funds. Compliance funds shall be used exclusively for compliance and other non-campaign related activities set forth in §B of this regulation. Permissible Activities. Compliance funds may be used only for the following activities: To pay for the cost of setting up or modifying the payroll program to permit the business entity to offer its employees the option of making voluntary contributions by payroll deduction; The costs associated with filing campaign finance or disclosure reports; The costs of informing employees of their rights regarding participation or non-participation in a payroll deduction program; The costs associated with records retention for the political action committee; and The costs of legal services or other professional services in relation to the compliance of the political action committee with the requirements of Election Law Article, Title 13, Annotated Code of Maryland. No Commingling of Funds. A political action committee may not commingle the funds of a campaign account and a compliance account. Prohibited Activities. The political action committee may not expend compliance funds: On election-related or campaign-related activities or any activities not expressly permitted in Regulation .11B of this chapter; or For the purpose of soliciting contributions for the political action committee. Acquisition. If a political action committee acquires, merges with, or takes control of another political action committee and is the surviving entity in the transaction, the prior transfers made by the non-surviving entity will not be retroactively attributed to the surviving entity. Newly Formed Entity. If a political action committee merges with another political action committee to form a new political action committee, the prior transfers made by each of the non-surviving political action committees will be attributed to the newly formed political action committee. If, as a result of such attribution, the prior transfers to a particular political committee exceed the applicable contribution limit under Election Law Article, Title 13, Annotated Code of Maryland, and this subtitle, the political committee shall not be required to return any amounts attributed to the newly formed political action committee that exceed the applicable contribution limit, but the newly formed political action committee may not make a further transfer to that political committee. Election Law Article, §§2-102(b)(4), 13-220.2, and 13-309.1, Annotated Code of Maryland Effective date: November 24, 2014 (41:23 Md. R. 1376) Regulation .06 amended effective February 29, 2016 (43:4 Md. R. 336) Regulation .08 adopted effective February 12, 2018 (45:3 Md. R. 159) Regulation .09 adopted effective February 12, 2018 (45:3 Md. R. 159) Regulation .10 adopted effective February 12, 2018 (45:3 Md. R. 159) Regulation .11 adopted effective February 12, 2018 (45:3 Md. R. 159) Regulation .12 adopted effective February 12, 2018 (45:3 Md. R. 159) Regulation .13 adopted effective May 6, 2019 (46:9 Md. R. 445)