Bill Positions

Bill Number: SB 543

Bill Title: Election Law - Independent Expenditures - Reporting and Disclosure Requirements

Bill Sponsor(s): Sens. Harrington , et al.

Subject: Miscellaneous

Committee: EHE

Bill Summary: This bill would have required a business entity or non-profit organization that made independent expenditures for campaign material to file expense reports with the State Board of Elections at the same times as campaign finance entities. The reports would have been signed by the CEO of the business entity or the Executive Director of the non-profit.

History: About one-half of the states, including Maryland, do not restrict independent expenditures by corporations, unions or other persons. "Independent expenditures" means campaign spending that is not coordinated with a candidate or political party. In January 2010 the Supreme Court held in the case of Citizens United that corporations are "persons" and are entitled to the same First Amendment rights as any other person. Therefore, while government may regulate corporate speech through disclaimer and disclosure requirements, it may not suppress that speech through limits on independent expenditures. The ruling had no impact on Maryland election law or the limits on direct campaign contributions. In 2010 SB 543 died without a vote in the EHE Committee.

Chamber Position: Support W/Amend

Position Summary: The Maryland Chamber supported disclosure of independent expenditures for campaign materials by all persons that make such expenditures. Reporting of independent expenditures will allow the electorate to judge whether persons are spending disproportionate amounts of funds in an attempt to influence election results. Unfortunately, this bill was narrowly drawn to only require reporting by business entities, while allowing unions and individuals to continue making unlimited amounts of unreported independent expenditures. Fairness and the public interest require the full disclosure of independent expenditures by all persons.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.