SB 310
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 310 (Chair, Education, Health, and Environmental Affairs
Committee)(By Request - Departmental - State Board of
Elections)
Education, Health, and Environmental Affairs Ways and Means
Election Law – Campaign Finance Entities – Termination
This departmental bill modifies certain campaign finance entity termination requirements
and expands the scope of a provision providing that the termination of a campaign finance
entity does not limit specified enforcement or recovery actions.
Fiscal Summary
State Effect: The bill does not directly affect State finances.
Local Effect: The bill does not directly affect local government finances.
Small Business Effect: The State Board of Elections (SBE) has determined that this bill
has minimal or no impact on small business (attached). The Department of Legislative
Services concurs with this assessment.
Analysis
Bill Summary: The bill eliminates the date of payment of the final debt or other obligation
of a campaign finance entity as a criteria in determining the beginning of the eight-year
period within which a campaign finance entity of an individual must terminate and file a
final campaign finance report. Instead, the bill simply requires a campaign finance entity
of an individual to terminate and file a final campaign finance report within eight years
after the later of (1) the end of the individual’s most recent term of office and (2) the date
of the election in which the individual last was a filed candidate. In addition, under the bill,
those requirements are no longer applicable only to campaign finance entities that have
funds remaining after the payment of all outstanding debts and other obligations.
The bill also requires the State Administrator of Elections to, not later than six months
before a campaign finance entity is required to terminate, notify the responsible officers of
the campaign finance entity and the candidate affiliated with the campaign finance entity
of the date by which the campaign finance entity must (1) pay all outstanding obligations;
(2) dispose of all its remaining assets in accordance with applicable State law; and
(3) terminate and file a final campaign finance report.
The bill also alters the scope of an existing provision that establishes that the termination
of a campaign finance entity does not limit the right of (1) SBE, or the State Prosecutor or
the State’s Attorney, to pursue an enforcement action against the former responsible
officers of, or any candidate formerly affiliated with, the campaign finance entity or (2) a
creditor to bring an action against the former responsible officers of, or any candidate
affiliated with, the campaign finance entity. The existing provision applies to termination
of a campaign finance entity by SBE under specified circumstances, but under the bill the
provision applies to any termination of a campaign finance entity under State campaign
finance law.
Current Law: State campaign finance law establishes termination requirements for the
campaign finance entity of an individual if (1) the individual is not a filed candidate or the
incumbent in any office filled by an election under State election law and (2) the campaign
finance entity has funds remaining after the payment of all outstanding debts and other
obligations. Under the requirements, a campaign finance entity must terminate and file a
final campaign finance report within eight years after the latest of (1) the end of the
individual’s most recent term of office; (2) the date of the election in which the individual
last was a filed candidate; and (3) the payment of the final debt or obligation of the entity
that was incurred in connection with that candidacy.
SBE is authorized to terminate a campaign finance entity if it determines that good cause
exists and that (1) the campaign finance entity could be terminated except for the existence
of one or more outstanding obligations, each of which is more than five years old; (2) no
responsible officer currently is appointed and serving; or (3) other extenuating
circumstances exist to justify terminating the campaign finance entity. The termination of
a campaign finance entity under that authority does not limit the right of (1) SBE, or the
State Prosecutor or the State’s Attorney, to pursue an enforcement action against the former
responsible officers of, or any candidate formerly affiliated with, the campaign finance
entity or (2) a creditor to bring an action against the former responsible officers of, or any
candidate affiliated with, the campaign finance entity.
Background: SBE indicates that having the date of payment of the final debt or other
obligation of a campaign finance entity as a criteria in determining the beginning of the
eight-year period within which a campaign finance entity of an individual must terminate
SB 310/ Page 2
and file a final campaign finance report creates too much uncertainty for enforcement
actions due to the difficulty of identifying and/or verifying that date.
Additional Information
Prior Introductions: HB 199 of 2020 passed the House and received a hearing in the
Senate Education, Health, and Environmental Affairs Committee, but no further action was
taken.
Designated Cross File: None.
Information Source(s): State Board of Elections; Office of the State Prosecutor;
Department of Legislative Services
Fiscal Note History: First Reader - January 12, 2021
rh/hlb Third Reader - February 2, 2021
Analysis by: Scott D. Kennedy Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 310/ Page 3
 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Election Law -- Campaign Finance Entities -- Termination
BILL NUMBER: SB 310
PREPARED BY: Maryland State Board of Elections
Jared DeMarinis- Director of Candidacy and Campaign Finance
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
_x_ WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
SB 310/ Page 4


Statutes affected:
Text - First - Election Law – Campaign Finance Entities – Termination: 13-310 Election Law, 13-247 Election Law, 13-313 Election Law
Text - Third - Election Law – Campaign Finance Entities – Termination: 13-310 Election Law, 13-247 Election Law, 13-313 Election Law