16-14

Sec. 1. Section 16-17 is amended as follows:

16-17. Council vacancy - election required.

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(1) The special election must be conducted in a manner consistent with provisions of state law that govern special elections to fill vacancies in the office of representative in Congress. The deadlines and time periods required under those provisions of state law apply to a special Council election unless the Council, acting under subsection (d) or subsection (e), expressly modifies them.

(2) Except as provided in paragraph (1), the general provisions of state and County law that govern quadrennial elections for Councilmembers apply to the special election conducted under this Section.

(d) (1) Within 30 days after a Council vacancy occurs, the Council must adopt a resolution that:

(A) sets the dates of the special primary election and the special general election;

(B) sets the timeline for certification of a candidate for public campaign financing for the special primary election and the special general election; and

[(B)] (C) takes any other action authorized by this Section or state law.

If a Councilmember submits a resignation with a later effective date, the vacancy occurs when the Council receives the resignation.

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Sec. 2. Article IV of Chapter 16 is added as follows:

Article IV. Public Campaign Financing.

16-18. Definitions.

In this Article, the following terms have the meanings indicated:

Applicant candidate means a person who is running for a covered office and who is seeking to be a certified candidate in a primary or general election.

Board means the Maryland State Board of Elections.

Campaign finance entity means a political committee established under Title 13 of the State Election Law, as amended.

Certified candidate means a candidate running for a covered office who is certified as eligible for public campaign financing from the Fund.

Committee to Recommend Funding for the Public Election Fund means the Committee established in Section 16-27.

Consumer Price Index means the Consumer Price Index for All Urban Consumers: All items in Washington-Baltimore, DC-MD-VA-WV (CMSA), as published by the United States Department of Labor, Bureau of Labor Statistics, or a successor index.

Contested election means an election in which there are more candidates for an office than the number who can be elected to that office. Contested election includes a special election held to fill a vacancy in a covered office under Section 16-17.

Contribution means the gift or transfer, or promise of gift or transfer, of money or other thing of value to a campaign finance entity to promote or assist in the promotion of the success or defeat of a candidate, political party, or question. Contribution includes proceeds from the sale of tickets to a campaign fund–raising event, as defined in Section 101 of the Election Law Article of the Maryland Code, as amended.

County Board means the Montgomery County Board of Elections.

Covered office means the office of County Executive or County Councilmember.

Director means the Director of the Department of Finance or the Director’s designee.

Distribution period means the period of time beginning 365 days before the primary election for the office the candidate seeks and ending 15 days after the date of the general election. The distribution period for a special election under Section 16-17 must be set by Council resolution.

Election cycle means the primary and general election for the same term of a covered office.

Eligible contribution means an aggregate donation in a 4-year election cycle of $150 or less from an individual, including an individual who does not reside in the County.

Fund means the Public Election Fund.

Noncertified candidate means a person who is running for a covered office who either:

(1) chooses not to apply to be a certified candidate; or

(2) applies to be a certified candidate but fails to qualify.

Non-participating candidate means a person who is running for a covered office who is either a noncertified candidate or a certified candidate who declines to accept a public contribution.

Participating candidate means a certified candidate who has received a public contribution from the Fund for a primary or general election.

Public contribution means money disbursed from the Fund to a certified candidate.

Publicly funded campaign account means a campaign finance account established by a candidate for the exclusive purpose of receiving [[qualifying]] eligible contributions and spending funds in accordance with this Article.

Qualifying contribution means [[a donation]] an eligible contribution of at least $5.00 but no more than $150.00 in support of an applicant candidate that is:

(1) made by [[a registered voter of the County]] [[an individual]] a County resident;

(2) made after the beginning of the designated qualifying period, but no later than [[15 days before]] the respective election; and

(3) [[obtained through efforts made with the knowledge and approval of the applicant candidate; and

(4)]] acknowledged by a receipt that identifies the contributor’s name and residential address and signed by the contributor directly or by a digital signature using a method approved by the Board.

Qualifying period means the period of time beginning [[365 days before the primary]] on January 1 following the last election for the office the candidate seeks and ending 45 days before the date of the primary election. The qualifying period for a special election under Section 16-17 must be set by Council resolution.

Slate means a political committee of two or more candidates who join together to conduct and pay for joint campaign activities.

16-19. Public Election Fund established.

(a) The Director must create a Public Election Fund. This Fund is continuing and non-lapsing.

(b) The Fund consists of:

(1) all funds appropriated to it by the County Council;

(2) any unspent money remaining in a certified candidate’s publicly funded campaign account after the candidate is no longer a candidate for a covered office;

(3) any public contribution plus interest returned to the Fund by a participating candidate who withdraws from participation;

(4) all interest earned on money in the Fund; and

(5) voluntary donations made directly to the Fund.

16-20. Collecting Qualifying Contributions.

(a) Before raising any contribution governed by this Article, an applicant candidate must:

(1) file notice of intent with the Board on or before April 15 of the year of the election on a form prescribed by the Board; and

(2) establish a publicly funded campaign account for the candidate for the purpose of receiving eligible contributions and spending funds in accordance with this Article.

(b) Other than a contribution from an applicant candidate or the candidate’s spouse, an applicant candidate must not accept [[a qualifying]] an eligible contribution from an individual greater than $150. An applicant candidate must not accept a loan from anyone other than the candidate or the candidate’s spouse. An applicant candidate or the candidate’s spouse must not contribute or lend a combined total of more than $6000 each to the candidate’s publicly funded campaign account.

(c) [[Annual]] Consumer Price Index adjustment. The Chief Administrative Officer must adjust the contribution limit established in Subsection (b), effective July 1, [[2016]] 2018, and July 1 of each subsequent fourth year, by the annual average increase, if any, in the Consumer Price Index for the previous 4 calendar [[year]] years. The Chief Administrative Officer must calculate the adjustment to the nearest multiple of [[5 cents]] 10 dollars, and must publish the amount of this adjustment not later than March 1 of each fourth year.

16-21. Requirements for Certification.

(a) To qualify as a certified candidate:

(1) a candidate for Executive must collect from County residents at least:

(A) 500 qualifying contributions; and

(B) an aggregate total of $40,000;

(2) a candidate for At-Large Councilmember must collect from County residents at least:

(A) 250 qualifying contributions; and

(B) an aggregate total of $20,000; and

(3) a candidate for District Councilmember must collect from County residents at least:

(A) 125 qualifying contributions; and

(B) an aggregate total of $10,000.

(b) An applicant candidate must deposit all [[qualifying]] eligible contributions received into the candidate’s publicly funded campaign account. An applicant candidate must deliver to the Board a copy of a receipt for each qualifying contribution.

(d) The Executive, after consulting with the Board, must adopt regulations under Method 1 that specify:

(1) how and when receipts for qualifying contributions from contributors must be submitted to the Board;

(2) the documents that must be filed with the Board for certification;

(3) the allowable uses of money in a publicly funded campaign account; and

(4) other policies necessary to implement this Article.

16-22. Board Determination.

(a) The Board must certify an applicant candidate if the Board finds that the candidate has received the required number of qualifying contributions and the required aggregate total dollars for the office no later than 10 business days after receiving:

(1) a declaration from the candidate agreeing to follow the regulations governing the use of a public contribution; [[and]]

(2) a campaign finance report that includes:

(A) a list of each qualifying contribution received;

(B) a list of each expenditure made by the candidate during the qualifying period; and

(3) a certificate of candidacy for a covered office.

(b) The decision by the Board whether to certify a candidate is final.

(d) If the Board certifies a candidate, the Board must authorize the Director to disburse a public contribution to the candidate’s publicly funded campaign account.

16-23. Distribution of Public Contribution.

(a) The Director must distribute a public contribution from the Fund to each certified candidate in a contested election only during the distribution period as follows:

(1) for a certified candidate for County Executive, the matching dollars must equal:

(A) $6 for each dollar of a qualifying contribution received for the first $50 of each qualifying contribution;

(B) $4 for each dollar of a qualifying contribution received for the second $50 of each qualifying contribution; and

(C) $2 for each dollar of a qualifying contribution received for the [[third $50]] remainder of each qualifying contribution.

(2) for a certified candidate for County Council, the matching dollars must equal:

(A) $4 for each dollar of a qualifying contribution received for the first $50 of each qualifying contribution

(B) $3 for each dollar of a qualifying contribution received for the second $50 of each qualifying contribution; and

(C) $2 for each dollar of a qualifying contribution received for the [[third $50]] remainder of each qualifying contribution.

(3) The total public contribution payable to a certified candidate for either a primary or a general election must not exceed:

(A) $750,000 for a candidate for County Executive;

(B) $250,000 for a candidate for At Large Councilmember; and

(b) The Director must not distribute matching dollars from the Fund to a certified candidate for:

(1) a contribution from the candidate or the candidate’s spouse; or

(2) an in-kind contribution of property, goods, or services.

(c) A certified candidate may continue to collect qualifying contributions and receive a matching public contribution up to [[15 days before]] a primary or a general election. A qualifying contribution must not exceed $150 from any individual in the aggregate during [[an]] a 4-year election cycle.

(d) On or before July 1 of the year preceding the primary election, the Director must determine if the amount in the Fund is sufficient to meet the maximum public contributions reasonably expected to be required during the next election cycle. If the Director determines that the total amount available for distribution in the Fund is insufficient to meet the allocations required by this Section, the Director must reduce each public contribution to a certified candidate by the same percentage of the total public contribution.

(e) Within 3 business days after the County Board certifies the results of the primary election, the Board must authorize the Director to continue to disburse the appropriate public contribution for the general election to each certified candidate who is certified to be on the ballot for the general election.

(f) Within [[15]] 30 days after the County Board certifies the results of the primary election, a participating candidate who is not certified to be on the ballot for the general election must return any unspent money in the candidate’s publicly funded campaign account to the Fund. Within [[15]] 30 days after the County Board certifies the results of the general election, a participating candidate must return any unspent money in the candidate’s publicly funded campaign account to the Fund.

(g) A certified candidate nominated by petition may receive a public contribution for the general election if:

(1) the candidate’s nomination is certified by the County Board; and

(2) the candidate did not participate in a primary election.

(h) A participating candidate must submit a receipt for each qualifying contribution to the Board to receive a public contribution. The Director must deposit the appropriate public contribution into a participating candidate’s publicly funded campaign account within 3 business days after the Board authorizes the public contribution.

(i) [[Annual]] Consumer Price Index adjustment. The Chief Administrative Officer must adjust the public contribution limits established in Subsection (a)(3) and the [[qualifying]] eligible contribution limit established in Subsection (c), effective July 1, [[2016]] 2018, and July 1 of each subsequent fourth year, by the annual average increase, if any, in the Consumer Price Index for the previous 4 calendar [[year]] years. The Chief Administrative Officer must calculate the adjustment to the nearest multiple of [[5 cents]] 10 dollars, and must publish the amount of this adjustment not later than March 1 of each fourth year.

16-24. Use of Public Contribution.

(a) A participating candidate may only use the [[qualifying]] eligible contributions and the matching public contribution for a primary or general election for expenses incurred for the election. A participating candidate must not pay in advance for goods and services to be used after certification with non-qualifying contributions received before applying for certification unless the expenditure is permitted by Executive regulation adopted under Section 16-21.

(b) A complaint alleging an impermissible receipt or use of funds by a participating candidate must be filed with the Board.

(c) A participating candidate must provide the Board with reasonable access to the financial records of the candidate’s publicly funded campaign account, upon request.

(d) Within [[15]] 30 days after the County Board certifies the results of the general election, a participating candidate must return to the Fund any unspent money in the candidate’s publicly funded campaign account.

16-25. Withdrawal.

(a) A certified candidate may withdraw an application for a public contribution any time before the public contribution is received by the candidate’s publicly funded campaign account.

(b) A participating candidate may withdraw from participation if the candidate:

(1) files a statement of withdrawal with the Board on a form prescribed by the Board; and

(2) repays to the Fund the full amount of the public contribution received, together with the applicable interest established by regulation.

16-26. Applicant and Participating Candidate Restrictions .

An applicant candidate or a participating candidate must not:

(a) accept a private contribution from any group or organization, including a political action committee, a corporation, a labor organization, or a State or local central committee of a political party;

(b) accept [[a]] private [[contribution]] contributions from an individual in an aggregate greater than $150 during a 4-year election cycle, or the maximum amount of [[a qualifying]] an eligible contribution, as adjusted by Section 16-23(i);

(c) must not pay for any campaign expense after filing a notice of intent with the Board to seek public funding with any campaign finance account other than the candidate’s publicly funded campaign account;

(d) be a member of a slate in any election in which the candidate receives a public contribution [[unless all members of the slate are participating candidates]]; [[or]]

[[(d)]] (e) accept a loan from anyone other than the candidate or the candidate’s spouse; or

[[(e)]] (f) transfer funds:

(1) to the candidate’s publicly funded campaign account from any other campaign finance entity established for the candidate; and

(2) from the candidate’s publicly funded campaign account to any other campaign finance entity.

16-27. Committee to Recommend Funding for the Public Election Fund

(a) The Committee to Recommend Funding for the Public Election Fund consists of 5 members appointed by the County Council for a four-year term beginning on May 1 of the first year of the Council’s term of office. A vacancy occurring before the end of a term must be filled by appointment for the remainder of the term. The Council must ask the County Executive to recommend within 30 days one or more qualified applicants before making any appointment.

(b) Each member must be a resident of the County while serving on the Committee. No more than 3 members must be of the same political party. The Council must designate the chair and vice-chair.

(d) The Committee must issue a report to the Council on or before March 1 of each year estimating the funds necessary to implement the public campaign finance system and recommending an appropriation to the Public Election Fund for the following fiscal year.

(e) The Council Administrator must provide staff support for the Committee.

16-28. Penalties.

Any violation of this [[Section]] Article is a Class A civil violation. Each day a violation exists is a separate offense.

Sec. 2. Initial Regulations. The County Executive must submit the initial regulations required by Subsection 16-21(d) to the Council for approval not later than 180 days after this Act becomes law.

Sec. 3. Effective Date. This Bill takes effect on January [[1]] 15, 2015.

Approved: