‘Why is the Maryland insurance Commissioner breaking Maryland Finance Law? Attached is a solicitation mailed by Commissioner Redmer. ‘Attached is the various citations from Maryland law governing fundraising during the session. How can he get away with this?redms Ce: bredmer@comeast.net Sent: 2017-04-02 Subject: Hogan fundraiser | would like to take this opportunity to invite you to play a leadership role with an upcoming fundraiser for Governor Hogan. We are currently accepting folks to serve on our Host Committee. Members of the Host Committee, will be expected to generate $1,000 in revenue. The revenue could be generated through ticket sales, sponsorships, or a contribution, or any combination of the three. The details of the event are: When: Sunday, July 9, 2017, from 4-5pm Location: Conrad's Ruth Villa, Bowley's Quarters Menu: Typical bull roast menu, with beer, soda and a cash bar. Contributions: $50 per person $250 per couple for VIP (includes open bar and time with the Govemor) ‘Sponsorship Opportunities Gold Sponsor: $6,000 8 VIP tickets 60 General Tickets Silver Sponsor: $3,000 4 VIP Tickets 45 General tickets Bronze Sponsor: $1,000 2 VIP tickets 10 General tickets Ifyou have any questions about the event, or would like to discuss your participation, please contact me or my son Buddy (443-506-4779). Thanks alElection Law Provisions The Election Code (the Election Law Article of the Annotated Code) is under the jurisdiction of the State Board of Elections. ‘The following summary is provided for the ‘convenience of legislators, but requests for an authoritative interpretation of the Election Code should be directed to the Board of Elections (410-269-2840). Legislators should direct questions related to campaign fundraising activities involving regulated lobbyists to the State Ethics ‘Commission. Contribution Limits An individual, association, unincorporated association, or corporation may contribute no ‘more than $6,000 (either in money or other “things of value”) to a legislator’s committee during ‘the four-year election cycle that runs from January 1, 2015, until December 31, 2018. A political committee, including a political action committee, may transfer up to $6,000 to another political committee during the four-year cycle. A slate may transfer up to $24,000 to the authorized candidate campaign committee of any single member of the slate during an election cycle. A candidate member of a slate may make unlimited transfers into that slate committee, There is no limit, however, on transfer between any of the following. . State and local party central committees of the same political party; and * acandidate’s authorized campaign committees (including the candidate's treasurer). No Fundraising or Contributions During the Session (Election Law Article, § 13-235) During the 90-day regular session of the General Assembly, a legislator may not: * receive a contribution for himself or herself; for any other candidate for federal, State, or local office; for a candidate campaign committee; or for any political committee that is ‘organized under the Title 13 under the Election Law Artical and operated in coordination with a candidate; * conduct any fundraising event in order to receive a contribution described above; * solicit or sell a ticket to any fundraising event to raise contributions described above; or 2930 2017 Ethies Guide © deposit any contribution that was received before the convening of the regular session, However, a legislator may deposit a contribution that was made electronically before the start of the legislative session. If an incumbent legislator has filed as a candidate for an elective federal or local government office, including election to a national political party presidential nominating convention, the legislator may raise funds for that campaign, fan incumbent legislator is an eligible candidate who has applied for and accepts a public contribution from the Fair Campaign Financing Fund under the Public Financing Act, the legistator may accept an eligible private contribution (contributions from individuals of $250 or less) and any disbursement of funds that are based on the eligible private contributions. Note that the law also prohibits fundraising activities in support of another candidate, even fora primary election that will take place during the legislative session. Legislators may contribute their own funds to such a candidate and may freely provide political endorsements, but they are prohibited from being involved in the fundraising activities described above. General expressions of support for a candidate are permitted during the session, so long as they do not include solicitations for a fundraising event. A legislator who receives a prohibited contribution during the session must return the check to the contributor. A check received before the session started, but not deposited, may be held until the end of the session and then deposited. ‘The Board of Elections may issue a civil citation and impose a fine for a violation of the prohibition against fundraising during session. Fundraising During a Special Session ‘The Ethics Committee has ruled, in Ethics Opinion #11, that the same standards relating to campaign fundraising and contributions will apply during a special session of the General Assembly. However, any fandraising event that was organized, through the commitment of funds of sending of solicitations, prior to the calling of a special session may proceed as planned Campaign Fundraising Involving a Regulated Lobbyist (§ 5-715) ‘An individual regulated lobbyist, or a person acting on behalf of the regulated lobbyist, may not for the benefit of a legislator: * solicit or transmit a political contribution from any person, including a political committee; * serve on a fundraising committee or a political committee;MARYLAND. STATE BOARD OF ELECTIONS P.O. BOX 6486, ANNAPOLIS, MD 21401-0486 PHONE (410) 269-2840 Bobbie S. Mack, Chaleman ‘Linda H. Lamone David 3, MeManus, Jr, Vice Chairman ‘administrator Rachel T. MeGuekian Patrick H, Murray Charles €. Thomann Nikki Charlson Deouty Adminstrator MARYLAND STATE BOARD OF ELECTIONS Issue Date: December 19, 2013 FUNDRAISING DURING THE SESSION, Election Law Article Title 13 — Campaign Finance Subtitle 2— Campaign Finance Organization and Activity Part VI Contributions ~ Prohibitions Section 13-235 ‘The Maryland State Board of Elections issues this guidance for publication and inclusion in the Summary Guide to clarify activities by covered officials and political committees during legislative session fundraising prohibition. Intent of the Law ‘The purpose of Section 13-235 of the Election Law Article is to curtail corruption or the appearance of corruption by eliminating financial quid pro quo contributions in return for a vote on legislation during the regular session of the General Assembly. See Joint Committee on Legislative Ethies Advisory Opinion #60 (March 13, 1989), General Provisions! The law generally prohibits the following activities by the Governor, Lieutenant Governor, Attorney General, Comptroller, and members of the General Assembly . ig a contribution; * Conducting a fundraising event; ‘Soliciting or selling a ticket to a fundraising event; or '* Depositing or using any contribution of money that was not deposited prior to the legislative session, * There are two exceptions to the general rule. Fist, filed candidates for elective lacal government or federal office, including election to a national political party presidential nominating convention are nat prohibited from fund raising activity. Second, gubernatorial candidates who have applied for and accepted a public contribution from the Fair Campaign Financing Fund may solicit and accept eligible private contributions and deposit any disbursements from the Fund during the legislative session. See, Election Law Article, Section 13-235(c) and (d). FAX (410) 974- 2019 ‘oll Free Phone Number (800) 222-8683 151 West Street Sulte 200 MD Relay Service (800) 735-2258 http://w. elections. maryland.gov Annapolis, Maryland 21401‘The prohibition extends to persons acting on behalf of these covered officials, such as: © The responsible officers of the authorized candidate campaign committee of the covered officials; © Any other authorized individuals or agents of the covered officials, including the campaign manager, paid staff, and paid vendors. A political committee of the covered officials; and ‘Any other political committees organized under Title 13 of the Election Law Aaticle that operate in coordination with the covered official. Application of the Law a, Authorized Candidate Committee of a Covered Official - The authorized candidate committees of a covered official is prohibited from fundraising during session, b. Slate that includes a Covered Official - By definition, a slate is a political committee that is formed by two or more candidates to conduct and pay for JOINT campaign activities to promote the candidacies of all of its members. Therefore, a slate that includes a covered official is prohibited from fundraising during session, ©. Legislative Party Caucus Committee - A legislative party caucus committee is prohibited from fundraising during session since it is established for the purpose of electing candidates that include members of the General Assembly, who are covered officials. d. Central Committees ~ A state or local central committee is not prohibited from fundraising during session. While a central committee often works closely and coordinates some of its expenditures with candidates during an election, generally the central committees operates independently from candidates and authorized candidate campaign committees, Although the statute does not prohibit state or local central committees from engaging in campaign finance activities during the legislative session, it does prohibit a covered official, and the official’s authorized committees and agents from receiving contributions from or coordinating fundraising ot expenditures with a state or local central committee daring the legislative session, ©. Authorized Candidate Committee of a Non-Covered Individual — Generally, an authorized candidate committec of a non-covered individual may raise campaign funds duting the legislative session. ‘This is true even if the candidate is a member of a slate or is affiliated with a legislative party caucus committee that includes a covered official. The authorized candidate campaign committee is formed and organized with sole purpose to support the non-covered individual and must make disbursements accordingly. Political committee that operates in cooperation and coordination with a commitiee of a Covered Official ~Any political committee that operates in cooperation or coordination with a covered official’s campaign committee during the legislative session is prohibited from fundraising during the legislative session, Examples of cooperation and coordination include acting at the request = 1211972013 2or suggestion of the covered official, political committee of the covered official, or an agent of the covered official; receiving campaign material, campaign strategies, campaign information that is not publicly disclosed or publicly available from the covered officials or persons on behalf of the covered official 8. Contributions by a Covered Official during Session are Permissible - An official covered by the law may contribute his or her own campaign funds to any candidate who is not prohibited from receiving contributions during the legislative session. Governor and Lieutenant Governor Section 13-235 applies to covered officials that are candidates for Governor and Lieutenant Governor in the same manner as described above. Accordingly, if one member of the gubernatorial ticket is a covered official, that official's authorized candidate committee may not fundraise during session. Further, if ticket has established a slate, the slate would also be prohibited from fundraising during session, And, the prohibition on fundraising would not apply to the non-covered candidate’s committee, unless that committee is operated in cooperation and coordination with the covered official. There are certain unique aspects of candidacy for Governor and Lieutenant Governor that suggest that their candidate committees will be operated in cooperation and coordination. For example, they are the only candidates who are jointly placed on the ballot and run as a unit and a vote cast for the Govemor is a vote cast for the Lieutenant Governor and vice versa. However, Maryland campaign finance law clearly considers them separate candidates. Each must pay a filing fee to run for office and each must establish his or her ‘own candidate committee as a prerequisite to filing a certificate of candidacy. In addition, contributors may make a contribution to both the candidates without violating the contribution limits for campaign finance entities formed to support a candidate, See Election Law Article, Section 13-226(d), If the candidate not covered by Section 13-235 does not cooperate or coordinate the covered official during the restricted period, then the candidate not covered by the law may raise funds to deposit in his or her authorized candidate campaign committee. Fundraising is candidate-specific and not for a particular office. The purpose of the authorized candidate committee is to promote that individual’s candidacy. Only the candidate not covered by the law and the responsible officers of the authorized candidate campaign committee has complete control over its campaign funds and how thoy are to be disbursed. ‘The gubematorial ticket does not have access fo nor has a legal right to those funds. Furthermore, the candidate not covered by the law may, in the future, seek another office and should not be precluded from fundraising due to an affiliation in the current election cycle, ‘The burden for independence rests with the candidate not covered by the law. 12/19/2013 3Recurring Contributioy In 2013, the prohibition regarding depositing funds into the account of a political committee of a covered official during the legislative session was amended by House Bill 1499, Chapter 419. An electronic contribution initiated prior to the start of the legislative session may now be deposited after the session begins. However, this minor exception to the deposit prohibition does not authorize the receipt or deposit of contributions of a recurring nature initiated during the legislative session. Electronic contributions initiated during the legislative session to a covered official, regardless of whether it was recurring, or not, are not permitted. Examples of Improper Activity During the Legislative Session The following are examples of improper activity during the legislative session that may be subject fo a sanction by the State Board of Blections: 1. An official covered by the law, the authorized candidate committee of that official or any person acting on behalf of that official fiundraises, solicits or receives a contribution. 2. A slate committee that includes an official covered by the law fundraises, solicits or receives a contribution. 3. A political committee fundraises, solicits or receives contributions or makes expenditures during the legislative session and operates in coordination with or on behalf of the covered oficial, or the authorized committees or agents of the covered official. 4. A covered official, persons acting on behalf of the official or a political committee of the official, suggests, requests, initiates, creates, produces, distributes, or pays for a fundraising event, 5. A covered official, persons acting on behalf of the official or a political committee of the official are materially involved in decisions regarding the content, time, intended audience, means or mode of a fundraising event during legislative session, 6. A political committee conducting any fund raising activity shares the same responsible officers with the campaign finance entities of the covered official. 7. A covered official or persons acting on behalf of the official designs eny scheme or device with potential contributors to evade the prohibition through the use of a political committee. Penalty ‘The authorized candidate campaign committee of the official covered by Section 13-235 is liable for any civil penalty for a violation of the law. ‘The civil penalty is equal to the sum of $1,000 plus the amount of the illegal contribution. In addition, the political committee that receives the contribution in question must refund the contribution to the contributor. 121972013 4