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Chapter 6 - Out-of-State Political Committee

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6.1. Out- of- State Political Committee

1. Generally

  • An out-of-state political committee is a political committee that is lawfully registered with another state’s election authority. 
  • A PAC or other committee that is registered with the Federal Election Commission is not considered an out-of-state political committee.
  • There are no registration requirements for out-of-state political committees.

2. Transfer Limitations

An out-of-state political committee may transfer up to $6,000 to a Maryland campaign finance entity (See Section 8.3 of the Summary Guide.).  However, if affiliated with a Maryland political committee, the contributions of the out-of-state and in-state political committees are attributed to one another.

- §13-227(d)(2) of the Election Law Article

Example

Sunshine Corporation is interested in supporting a Maryland gubernatorial candidate.  Sunshine Corporation has a Maryland PAC and a West Virginia PAC.  Since the PACs are affiliated, they can only transfer a combined total of $6,000 to the gubernatorial candidate.

 

Reporting Requirements

An out-of-state political committee must report all campaign related expenditures made within the State for an election.

- §13-301 of the Election Law Article

  1. Transfer Reporting

    If the expenditure made is a transfer to a Maryland political committee, then the out-of-state political committee is required to submit a written statement to the State Board including:

    • The name and address of the out-of-state political committee;
    • The name of the treasurer or person responsible for the transfer by the out-of-state political committee;
    • The name of Maryland political committee receiving the transfer of funds;
    • The name of the treasurer of the Maryland political committee;
    • The date of the transfer; and
    • The amount of the transfer.

  2. Independent Expenditures Reporting

    If  the out-of-state political committee makes an independent expenditure in Maryland to support or oppose a candidate, political party or ballot issue, the out-of-state political committee must file a detail expenditure report that would include of the information on Schedule 2 at the designated reporting periods regarding all disbursements made in connection with the independent expenditure to the State Board.

    - §13-301 of the Election Law Article

    The expenditure report must include the name and address of the out-of-state political committee and must be signed by the treasurer or person responsible for the disbursements by the out-of-state political committee.

6.2 Federal Committees

A federal committee is any political committee registered with the Federal Election Commission (FEC).  Like other entities or associations, a federal committee is considered a person under the law and allowed to make contributions, not transfers, to Maryland political committees. A federal committee is not required to file any additional reports or statements with the State Board.

Campaign finance information for federal committees is available to the public on the FEC website (www.fec.gov). The State Board provides a public computer at its office in Annapolis for the purpose of allowing citizens access to federal campaign finance data via the Internet.

6.3 Other Political Organizations

Other political committees not registered with either a state or with the FEC, i.e. 527 organizations or political clubs, may make contributions to a Maryland political committee.  Additionally, they are not required to file any campaign finance reports or statements with the State Board.

However, if the political organization engages in campaign finance activity or express advocacy regarding a candidate for a State election, then the organization may be required to form as Maryland PAC.

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