Campaign Finance - Political Organizations - Disclosures on Solicitations (Stop Scam PACs Act)
Summary
SB 633, the Stop Scam PACs Act, adds new disclosure rules for certain political organizations and political action committees that raise money through solicitations. The bill requires covered entities to include clear and conspicuous disclaimers when they use a candidate’s name, image, or likeness in a solicitation without the candidate’s knowledge or permission, making clear that the use does not imply authorization or approval. It also requires a separate disclosure when a solicitation appears to be for a charitable, electoral, or political purpose, stating that contributions may not be used for charitable purposes and are not tax-deductible.
The bill applies to persons already required to file campaign finance reports under Maryland election law, as well as certain independent-expenditure-only PACs that are not affiliated with corporations or labor organizations. It authorizes the State Administrator of Elections, or a designee, to investigate potential violations, issue subpoenas, and refer matters to the State Board for a public report and possible sanctions. The State Board may impose civil penalties of up to $10,000 or temporarily prohibit future solicitations, and the bill expressly excludes criminal penalties and State Prosecutor involvement for violations of this section.
Impact
SB 633 amends Maryland’s Election Law by creating a new disclosure and enforcement framework for solicitations by certain political organizations and PACs. It adds Section 13-223 to require specific disclaimer language in fundraising communications and gives the State Board of Elections authority to investigate, subpoena records or witnesses, and impose civil penalties or solicitation bans. The law is intended to curb misleading political fundraising practices and strengthen transparency in campaign-related solicitations.
Sentiment
The bill appears to have been broadly supported and passed both chambers overwhelmingly, with a 43-0 Senate vote and a 128-8 House vote. The strong margins suggest general agreement that the measure addresses deceptive or confusing political fundraising practices and improves disclosure to donors and the public. No committee transcript was provided, but the voting history indicates the bill was not especially controversial overall.
Contention
The main policy tension in SB 633 is between consumer/donor protection and the regulation of political speech and fundraising. Supporters likely viewed the bill as necessary to stop misleading “scam PAC” solicitations and to ensure donors understand when a communication is not authorized by a candidate or party and when donations are not tax-deductible. Potential concerns would center on whether the required disclaimers and investigative authority could burden political organizations, but the available record shows little organized opposition, as reflected in the near-unanimous votes.