Maryland’s campaign finance system is often cited as relatively structured and disclosure-driven compared with many other states. The framework is established under Title 13 of the Election Law Article and administered by the Maryland State Board of Elections. Once a candidate officially declares, contribution limits, reporting schedules, and donor disclosures are clearly defined and routinely enforced.
However, a growing debate in Annapolis centers on what happens before that declaration—specifically, during the exploratory or “testing the waters” phase of a potential candidacy.
The Baseline Rules: What Applies After Candidacy
Once an individual becomes an official candidate, Maryland law requires:
- Contribution limits of $6,000 per donor, per recipient, per four-year election cycle.
- Regular disclosure reports filed through the MD CRIS system, detailing donors, expenditures, and committee activity.
- Disclosure of independent expenditures above statutory thresholds.
- Restrictions on transfers and coordination between committees.
These rules apply to candidate committees, PACs, party committees, and slates, creating a standardized compliance structure across the state’s elections.
Where the System Changes: Exploratory Activity
Maryland law does not expressly define or regulate exploratory committees in statute. Instead, their existence has been permitted largely through administrative guidance and advisory interpretations rather than direct legislative authorization.
As a result, during the exploratory phase:
- Committees may raise and spend funds without registering as political committees.
- Donor identities may remain undisclosed.
- Contribution limits applicable to declared candidates do not yet apply.
- Reporting to election authorities is not required.
Once an individual formally declares candidacy, the exploratory activity must stop, and only a limited amount—currently $6,000—may be transferred to the authorized candidate committee.
Why the Issue Resurfaced
The issue gained renewed attention in 2025 following coverage by the Baltimore Sun, which described the lack of regulation as a “glaring hole” in Maryland election law. The reporting was prompted in part by public statements from Sen. Steve Hershey, who acknowledged that the exploratory phase allows fundraising without the disclosure requirements that apply once a campaign is official.
Election administrators and advocacy groups noted that the distinction between “exploring” and “running” can be difficult to define in practice, particularly when exploratory activity resembles early campaigning.
Legislative Response: HB 157 / SB 65
In response, lawmakers introduced House Bill 157 during the 2026 regular session, cross-filed in the Senate as SB 65 and sponsored by Sen. Cheryl Kagan.
The legislation would:
- Define exploratory committees in statute.
- Require registration with the State Board of Elections.
- Apply existing contribution limits and disclosure rules.
- Limit expenditures to defined exploratory purposes such as polling, research, and communications.
- Require fair-market-value transfers of any assets to a subsequent candidate committee.
The bill is designated as an emergency measure and is scheduled for committee hearings in early February. A similar proposal passed the Senate unanimously in 2025 but did not advance in the House.
How Maryland Compares Nationally
Maryland’s situation is not unique. Federal law permits limited exploratory activity, and many states lack explicit statutory frameworks governing pre-candidacy fundraising. Other states have adopted varying approaches, including early disclosure thresholds or spending caps, while some allow broad latitude prior to declaration.
The issue reflects a broader national tension between campaign transparency and First Amendment constraints established by U.S. Supreme Court precedent.
Why It Matters
From an election-administration perspective, the debate over exploratory committees is less about partisan advantage and more about consistency. Maryland enforces detailed disclosure rules once candidates declare—but the current structure allows substantial financial activity to occur outside that system.
HB 157 would not create new contribution limits or ban exploratory activity. Instead, it would align pre-candidacy fundraising with the same transparency standards voters already expect during official campaigns.
As the bill moves through committee, it presents lawmakers with a narrow but consequential choice: whether Maryland’s campaign finance rules should apply evenly throughout the entire candidate-selection process, or only after the moment a campaign becomes official.
Election Desk 
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