Bill > HB1378

This bill, the Maryland Corporate Power Reset Act, prohibits certain entities formed or authorized in Maryland, referred to as "artificial persons" (which includes corporations, limited liability companies, and partnerships, among others), from engaging in "election activity" (spending money to support or oppose candidates, political parties, or political committees) or "ballot issue activity" (spending money to support or oppose questions submitted to voters). The bill clarifies that these entities do not possess the inherent "artificial person powers" to engage in such political activities, as these powers are granted by the state and can be limited. The State Department of Assessments and Taxation will be responsible for creating regulations to determine violations, establish procedures for forfeiting and reinstating an entity's charter privileges (benefits granted by the state like limited liability or perpetual existence), require "disgorgement" (paying back money spent on prohibited activities), ensure due process for affected entities, and coordinate with the Attorney General's office. This legislation aims to revoke any previously implied authority for these entities to participate in election and ballot issue activities, reinforcing that such participation was never intended by state law.