We wish to remind you that companies with one or more Maryland state or local government contracts worth at least $200,000 are required to file semiannual pay-to-play reports with the Maryland State Board of Elections by each November 30 and May 31, even if they have not received new contracts that year and even if they have no reportable contributions.
These semiannual reports are due if the entity, or its subsidiary (i.e., 30 percent or more of the equity of the subsidiary is owned or controlled by the business entity), has a single contract with the state, a county, a municipal corporation or other political subdivision of the state that equals or exceeds $200,000.1 The disclosure must also include the name of each candidate, if any, to whom one or more applicable contributions in a cumulative amount of $500 or more were made during the reporting period by covered donors. For this $500 contribution reporting threshold, covered donors include not only the entity and its subsidiary but also company PACs, officers, directors and partners of the business entity and its subsidiary. Furthermore, political contributions made by employees, agents or other persons at the suggestion or direction of a business entity or subsidiary must also be reported.
If a company has contributions to report, it will also need to disclose specific details regarding covered government contracts, including the amount and nature of the business done with the state and its political subdivisions, the agency that awarded each contract, the company awarded the contract (including a contracting company in which the filer owns a 30 percent interest), and the award, start and end dates of the contract.
If a company does not have any contributions to report, it need only list the name of the agency that has awarded the covered contract.
The report due November 30, 2015, covers the period of August 1, 2015, through October 31, 2015. Going forward, the May 31 reports will cover November 1 through April 30, and the November 30 reports will cover May 1 through October 31.
In addition, to the extent a company is awarded a new contract with a value of $200,000 or more, it is required to file a report disclosing applicable contributions and reportable contracts for the last 24 months within one business day.
1 Lobbyist employers have a filing obligation as well.
This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.