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5.1 Political Action Committees (PACs)

1. Generally

A PAC is a political committee that seeks to advance its political interests or purposes through the promotion of candidates, political parties, or questions.

§ 1-101(ff) of the Election Law Article

Any political committee whose purpose is to support a single candidate or ballot issue cannot be a PAC.

2. How to Form a PAC

In order to form a PAC, a Statement of Organization must be filed with the State Board. The PAC must identify its purpose on the Statement of Organization.

In addition, the law requires that the name of the PAC include the name of any entity that sponsors or affiliates with the PAC. For example, if a company, Environment Group, Inc., sponsors a PAC, then the name of the company, the Environment Group, Inc., must be used in the name of the PAC (Environment Group PAC). PACs that are not affiliated with or sponsored by a group or entity have more flexibility when choosing a name, but must choose a name that does not deceive people as to the true nature or character of the PAC.

- §13-208(c) and(d)(3) of the Election Law Article

3. Financial Activity

PACs may transfer funds to other political committees up to the transfer limit of $6,000. (See Section 8.3 of the Summary Guide.)

4. When does a PAC need to be formed?

A state PAC is required when two or more persons contribute or spend money to support or oppose candidates, political party, or ballot questions for a State election. For most organizations—including unions and corporations—the advantages of a PAC include the ability to receive contributions from members or employees and to direct campaign expenditures on their behalf.

Without a PAC, an organization may make “independent expenditures” in support of or opposition to a candidate, political party, or ballot question, but the organization is limited in its ability to make direct contributions to political committees (i.e. the organization is subject to the $4,000 and $10,000 limits on contributions). Additionally, the contribution must come directly from the organization’s general operation funds. However, by establishing a PAC, the organization can take advantage of the higher contribution limit applicable to transfers ($6,000 to any candidate or political committee), which is not subject to the aggregate contribution limit. Additionally, the PAC can raise money to support its campaign expenditures.

5.2 Ballot Issue Committees

1. Generally

A ballot issue committee is a political committee formed to promote the success or defeat of one or more questions to be submitted to a vote at an election.

-§1-101(f) of the Election Law Article

2. How to form a ballot issue committee

In order to form a ballot issue committee, a Statement of Organization must be filed with the State Board. (See Section 3.1 of the Summary Guide.) The ballot issue committee must identify the ballot issue and whether the committee is being formed to support or oppose the issue.

3. When a ballot issue committee needs to be formed

Once the petition process to place a question on the ballot is completed, a ballot issue committee must be formed before money is collected or spent to promote the success or defeat of the ballot issue.

A political committee does not need to be formed to support or oppose the petition process. (See section 5.3 of the Summary Guide)

-§ 7-104(c) of the Election Law Article

4. Where to File

A ballot issue committee must file with the State Board.

5. Campaign Finance Activity

The primary function of a ballot issue committee is to promote the success or defeat of one or more questions appearing on the ballot.

A ballot issue committee can receive unlimited contributions from an individual, business entity, or any other organization. In addition, there is no restriction on the amount that a political committee may transfer to a ballot issue committee.

-§§13-226(a) and 13-227(b) of the Election Law Article

6. Reporting Responsibilities:

A ballot issue committee must file campaign finance reports like any other political committee. However, its first report is not due until the fourth Friday preceding the general election.

Note: If the ballot issue committee is established a year or more before the election, it is required to file an Annual Report each year until the year of the election. The committee will remain open and liable for filing reports until it files a final report with the State Board.

-§ 13-309 of the Election Law Article

5.3 Ballot Petition Effort

1. Generally

Prior to forming a ballot issue committee, a petition effort is needed to put a question on the ballot. The petition effort needs a sponsor who coordinates the collection of signatures for a petition and who, if the petition is filed, is named on the information page.

A petition organization does not have to register with the State Board nor does it need to file campaign finance reports. However, the petition sponsor must file a Petition Fund Report detailing all contributions and expenditures related to the petition effort. A new Petition Fund Report must be submitted each time petition signatures are filed with the appropriate election official whether or not financial transactions have occurred.

Please consult the Petition Manual on the State Board website or contact the appropriate local board for more information including the number of signatures required and deadlines to file the petition.

5.4 Party Central Committees

1. Generally

A central committee is the governing body of the political party and may be composed of members of the central committee of the counties.

-§4-201 of the Election Law Article

Central committees must be established for the State party organization and may be formed for each county. For example, the Republican and Democratic Parties each have a State central committee and 24 county central committees, all of which have Statements of Organization on file with the State Board. The central committee must constantly maintain a chairman and treasurer with the State Board.

2. Necessary Forms

The political party must file the Statement of Organization creating the central committee with the State Board at the time the new party petition process is successfully completed and the constitution and by-laws are approved.

3. Reporting and Disclosure Responsibilities

A central committee must report like any other type of political committee.

In addition to campaign finance reporting, each State and local central committee is required to file and maintain a current version of its constitution and by-laws with the State Board.

-§4-204(d) of the Election Law Article

4. Campaign Finance Activity

• Contributions to a Central Committee
  
  Campaign contributions to a central committee are subject to the $4,000/$10,000 contribution limits discussed in Chapter 7 of this Summary Guide. However, contributions to a central committee for strictly administrative purposes (such as maintaining the party’s normal headquarters and staff) do not count against the contributor’s contribution limit, but must be identified as such on the campaign finance reports filed by the central committee. Additionally the contributor must earmark the contribution for administrative purposes. The central committee is required to segregate the administrative funds from its other funds.


• Contributions and Transfers by a Central Committee
  
  Central committees may make coordinated campaign contributions* to party candidates during an election cycle in the following amounts:
  
  
  • For a State central committee, not more than $1 for every two registered voters in the State (regardless of party affiliation) as of first day of the election cycle.
  • For a local central committee, not more than $1 for every two registered voters in the county (regardless of party affiliation) as of first day of the election cycle.

  - §13-226(c) of the Election Law Article

  In addition to these coordinated campaign contributions, a central committee may also transfer funds (up to $6,000 each) to other political committees. (See Section 8.3 of the Summary Guide.)

*A coordinated campaign contribution is an expenditure made by the party central committee for the purpose of supporting one or more candidates and done with direct approval, knowledge, and cooperation of the candidate(s). For example, a coordinated campaign contribution could be a television ad campaign that is paid for by the party but that was coordinated with the candidates benefiting from the campaign.

5. Control over Campaign Funds

Unlike other political committees, a treasurer of a central committee may not make any disbursements or incur any liability on its behalf, without authority and direction from the chairman. However, the chairman may not make any disbursements; only the treasurer has that responsibility.

- §13-218(c) of the Election Law Article

5.5 Forming a Political Party

1. Generally

A partisan organization is a combination of two or more individuals joining together to form a new political party. Any group of registered voters may form a new political party by filing with the State Board a petition stating:

• The intent to organize a State political party;
• The name of the partisan organization;
• The name and signature of the State Chairman of the partisan organization;
• The names and address of 25 registered voters, including the State Chairman, who shall be designated as constituting the initial governing body of the partisan organization; and
• Signatures of 10,000 registered voters.

The petition to form a new political party may be filed at any time except after the first Monday in August until voter registration opens after the general election. Additionally, in a presidential election year, a petition cannot be filed during the period when voter registration is closed prior to and after the primary election.

-§4-102 of the Election Law Article

2. Retention of Political Party status

A new political party retains its status as a political party until December 31 in the year of the second statewide general election after the party first qualified. Thereafter, a political party may retain its status in either one of two ways:

• If the party nominated candidate for the highest office on the ballot in a statewide general election receives 1% of vote for that office, then the political party retains its status through end of the year of the following general election; or
• If the party achieves 1% of the registered voters of the State as of December 31, then it retains its status through the end of the next year.

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