HB 1074

HOUSE BILL 1074
      G2, L2, L3  6lr3539
     By: Delegates Hornberger and Vogel
     Introduced and read first time: February 10, 2026
     Assigned to: Government, Labor, and Elections
  A BILL ENTITLED
1 AN ACT concerning
2    Public Ethics Law – Participation Restrictions and Requirements for Local
3Governments and School Boards
4 FOR the purpose of altering the definition of “qualifying relative” to include a son–in–law
5      and a daughter–in–law for provisions of law governing prohibitions against
6      government officials or employees participating in matters involving a qualifying
7      relative; requiring that the conflict of interest provisions or regulations adopted by a
8      county, municipal corporation, or school board be equivalent to or exceed certain
9      provisions of State law and authorize removal of a certain official for certain
10      violations; requiring that conflict of interest provisions adopted by a county,
11      municipal corporation, or school board include certain provisions relating to judicial
12      relief for violations of the conflict of interest provisions; requiring the ethics
13      provisions adopted by a county, municipal corporation, or school board to include a
14      requirement that the relevant ethics commission make a certain recommendation
15      public; requiring that certain lobbying provisions or regulations adopted by a county,
16      municipal corporation, or school board be equivalent to or exceed certain provisions
17      of State law; and generally relating to public ethics laws.
18 BY repealing and reenacting, without amendments,
19Article – General Provisions
20Section 5–101(a), 5–501, 5–807(a), and 5–902
21Annotated Code of Maryland
22(2019 Replacement Volume and 2025 Supplement)
23 BY repealing and reenacting, with amendments,
24Article – General Provisions
25Section 5–101(gg), 5–808, 5–810, 5–811.1, 5–817, and 5–819
26Annotated Code of Maryland
27(2019 Replacement Volume and 2025 Supplement)
28 BY repealing and reenacting, with amendments,
     EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
  [Brackets] indicate matter deleted from existing law.
  *hb1074*
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1Article – Local Government
2Section 12–107
3Annotated Code of Maryland
4(2013 Volume and 2025 Supplement)
5SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
6 That the Laws of Maryland read as follows:
7Article – General Provisions
8 5–101.
9(a)    In this title the following words have the meanings indicated unless:
10(1)    the context clearly requires a different meaning; or
11(2)    a different definition is adopted for a particular provision.
12“Qualifying relative” means a spouse, parent, child, brother, [or] sister,
  (gg)
13 SON–IN–LAW, OR DAUGHTER–IN–LAW.
14 5–501.
15      (a)   Except as otherwise provided in subsection (c) of this section, an official or
16 employee may not participate in a matter if:
17(1)    the official or employee or a qualifying relative of the official or
18 employee has an interest in the matter and the official or employee knows of the interest;
19 or
20(2)    any of the following is a party to the matter:
21(i)   a business entity in which the official or employee has a direct
22 financial interest of which the official or employee reasonably may be expected to know;
23(ii)  a business entity, including a limited liability company or a
24 limited liability partnership, of which any of the following is an officer, a director, a trustee,
25 a partner, or an employee:
261.     the official or employee; or
272.     if known to the official or employee, a qualifying relative
28 of the official or employee;
29(iii) a business entity with which any of the following has applied for
30 a position, is negotiating employment, or has arranged prospective employment:
  HOUSE BILL 1074  3
11.    the official or employee; or
22.    if known to the official or employee, a qualifying relative
3 of the official or employee;
4(iv) if the contract reasonably could be expected to result in a conflict
5 between the private interest and the official State duties of the official or employee, a
6 business entity that is a party to a contract with:
71.    the official or employee; or
82.    if known to the official or employee, a qualifying relative
9 of the official or employee;
10(v)   a business entity, either engaged in a transaction with the State
11 or subject to regulation by the official’s or employee’s governmental unit, in which a direct
12 financial interest is owned by another business entity if the official or employee:
131.    has a direct financial interest in the other business entity;
14 and
152.    reasonably may be expected to know of both financial
16 interests; or
17(vi)   a business entity that:
181.      the official or employee knows is a creditor or an obligee of
19 the official or employee, or of a qualifying relative of the official or employee, with respect
20 to a thing of economic value; and
212.     as a creditor or an obligee, is in a position to affect directly
22 and substantially the interest of the official, employee, or qualifying relative.
23(a–1) (1)   This subsection does not apply to an individual who is a public official
24 only as a member of a board and who receives annual compensation that is less than 25%
25 of the lowest annual compensation at State grade level 16.
26(2)   A former regulated lobbyist who is or becomes subject to regulation
27 under this title as a public official or employee may not participate in a case, contract, or
28 other specific matter as a public official or employee for 1 year after the termination of the
29 registration of the former regulated lobbyist if the former regulated lobbyist previously
30 assisted or represented another party for compensation in the matter.
31(b)   (1)     The prohibitions of subsection (a) of this section do not apply if
32 participation is allowed:
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1(i)   as to officials and employees subject to the authority of the Ethics
2 Commission, by regulation of the Ethics Commission;
3(ii)    by the opinion of an advisory body; or
4(iii)   by another provision of this subtitle.
5(2)    This section does not prohibit participation by an official or employee
6 that is limited to the exercise of an administrative or ministerial duty that does not affect
7 the decision or disposition with respect to the matter.
8(c)   (1)   An official or employee who otherwise would be disqualified from
9 participation under subsection (a) of this section shall disclose the nature and
10 circumstances of the conflict, and may participate or act, if:
11(i)     the disqualification would leave a body with less than a quorum
12 capable of acting;
13(ii)    the disqualified official or employee is required by law to act; or
14(iii)   the disqualified official or employee is the only individual
15 authorized to act.
16(2)   If the Governor, Lieutenant Governor, Attorney General, Treasurer, or
17 Comptroller is required to make a disclosure under paragraph (1) of this subsection, the
18 Governor, Lieutenant Governor, Attorney General, Treasurer, or Comptroller, as
19 appropriate, shall send a copy of the disclosure to the presiding officers of the General
20 Assembly and to the Ethics Commission.
21(d)    (1)     This subsection applies only to:
22(i)     the Governor;
23(ii)    the Lieutenant Governor;
24(iii)   the Attorney General;
25(iv)    the Treasurer;
26(v)     the Comptroller; and
27(vi)    a secretary of a principal department in the Executive Branch.
28(2)    (i)    An official who takes executive action that the official knows or
29 reasonably should know would have a material financial impact on the official or a person
30 whose interests are attributable to the official under § 5–608 of this title shall provide the
  HOUSE BILL 1074  5
1 Ethics Commission and the Joint Ethics Committee a description of the executive action
2 and the circumstances of the potential impact.
3(ii)   An official is not required to make a disclosure under this
4 paragraph if the impact is common to all members of:
51.     the general public or a large class of the general public; or
62.     a profession or occupation of which the official is a
7 member.
8 5–807.
9(a)   Subject to § 5–209 of this title, each county and each municipal corporation
10 shall enact provisions to govern the public ethics of local officials relating to:
11(1)   conflicts of interest;
12(2)   financial disclosure; and
13(3)   lobbying.
14 5–808.
15(a)   [Except as provided in subsection (b) of this section, the] THE conflict of
16 interest provisions enacted by a county or municipal corporation under § 5–807 of this
17 subtitle:
18shall be [similar to the provisions] EQUIVALENT TO OR EXCEED THE
  (1)
19 REQUIREMENTS of Subtitle 5 of this title; but
20(2)    in accordance with regulations adopted by the Ethics Commission and
21 consistent with the intent of this title, may be modified to the extent necessary to make the
22 provisions relevant to the prevention of conflicts of interest in that jurisdiction.
23[(b)  The conflict of interest provisions for elected local officials enacted by a county
24 or municipal corporation under § 5–807 of this subtitle:
25(1)   shall be equivalent to or exceed the requirements of Subtitle 5 of this
26 title; but
27(2)    in accordance with regulations adopted by the Ethics Commission and
28 consistent with the intent of this title, may be modified to the extent necessary to make the
29 provisions relevant to the prevention of conflicts of interest in that jurisdiction.]
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1(B)    THE CONFLICT OF INTEREST PROVISIONS ENACTED BY A COUNTY OR
2 MUNICIPAL CORPORATION SHALL INCLUDE A PROVISION THAT IS EQUIVALENT TO
3 OR EXCEEDS THE REQUIREMENTS OF § 5–902 OF THIS TITLE.
4 5–810.
5The lobbying provisions enacted by a county or municipal corporation under § 5–807
6 of this subtitle:
7shall be [substantially similar to the provisions] EQUIVALENT TO OR
  (1)
8 EXCEED THE REQUIREMENTS of Subtitle 7 of this title; but
9(2)   (i)     shall be modified to the extent necessary to make the provisions
10 relevant to that jurisdiction; and
11(ii)   may be further modified to the extent considered necessary and
12 appropriate by and for that jurisdiction.
13 5–811.1.
14[(a)   This section applies only in Calvert County.
15(b)] The [county’s] conflict of interest provisions required under § 5–807(a)(1) of
16 this subtitle shall:
17(1)   include a law or regulation that is equivalent to or exceeds the
18 requirements of § 5–902 of this title[.];
19(2)AUTHORIZE THE GOVERNING BODY OF A COUNTY OR MUNICIPAL
20 CORPORATION TO REMOVE A MEMBER OF THE GOVERNING BODY FROM OFFICE FOR
21 A VIOLATION OF THE CONFLICT OF INTEREST PROVISIONS; AND
22[(c)   The county’s ethics provisions shall include a law or regulation that requires
23 the Calvert County Ethics Commission to]
24(3) REQUIRE THAT THE COUNTY’S OR MUNICIPAL CORPORATION’S
25 ETHICS COMMISSION make public any recommendation it makes to expel a
26 [Commissioner] MEMBER OF THE GOVERNING BODY OF THE COUNTY OR MUNICIPAL
27 CORPORATION.
28 5–817.
29(a)    In accordance with this section, a school board:
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1(1)    may adopt conflict of interest regulations applicable to officials and
2 employees of the school system; and
3(2)     shall adopt conflict of interest regulations applicable to members of the
4 school board.
5(b)    (1)     The conflict of interest regulations adopted by a school board under
6 subsection [(a)(1)] (A) of this section:
7shall be [similar to the provisions of] EQUIVALENT TO OR
  (i)
8 EXCEED THE REQUIREMENTS OF Subtitle 5 of this title; but
9(ii)  in accordance with regulations adopted by the Ethics
10 Commission and consistent with the intent of this title, may be modified to the extent
11 necessary to make the regulations relevant to the prevention of conflicts of interest in that
12 school system.
13[The] IN ADDITION TO THE REQUIREMENTS UNDER PARAGRAPH
  (2)
14 (1) OF THIS SUBSECTION, THE conflict of interest regulations adopted by a school board
15 under subsection (a)(2) of this section SHALL:
16(i)    [shall be equivalent to or exceed the requirements of Subtitle 5
17 of this title; but
18(ii)  in accordance with regulations adopted by the Ethics
19 Commission and consistent with the intent of this title, may be modified to the extent
20 necessary to make the regulations relevant to the prevention of conflicts of interest in that
21 school system] INCLUDE A REGULATION THAT IS EQUIVALENT TO OR EXCEEDS THE
22 REQUIREMENTS OF § 5–902 OF THIS TITLE;
23(II)
  AUTHORIZE THE SCHOOL BOARD TO REMOVE A MEMBER OF
24 THE SCHOOL BOARD FROM OFFICE FOR A VIOLATION OF THE CONFLICT OF
25 INTEREST REGULATIONS; AND
26(III) REQUIRE THAT THE SCHOOL BOARD’S ETHICS COMMISSION
27 MAKE PUBLIC ANY RECOMMENDATION TO REMOVE A MEMBER OF THE SCHOOL
28 BOARD.
29(c)    Unless a school board adopts and maintains conflict of interest regulations
30 under subsection (a)(1) of this section, the provisions enacted by the county under § 5–808
31 of this subtitle shall apply to officials and employees of that school system.
32 5–819.
8HOUSE BILL 1074
1(a)    In accordance with this section, a school board [may] SHALL adopt regulations
2 relating to lobbying of members of the school board and of officials and employees of the
3 school system.
4(b)    The lobbying regulations adopted by a school board under subsection (a) of
5 this section:
6(1)   shall be [substantially similar to] EQUIVALENT TO OR EXCEED the
7 provisions of Subtitle 7 of this title; but
8(2)   [(i) may be modified to the extent necessary to make the provisions
9 relevant to that school system; and
10(ii)  may be further modified to the extent considered necessary and
11 appropriate by and for that school system] IN ACCORDANCE WITH REGULATIONS
12 ADOPTED BY THE ETHICS COMMISSION AND CONSISTENT WITH THE INTENT OF THIS
13 TITLE, MAY BE MODIFIED TO THE EXTENT NECESSARY TO MAKE THE REGULATIONS
14 RELEVANT TO THAT SCHOOL SYSTEM.
15[(c) Unless a school board adopts and maintains lobbying regulations under this
16 subtitle, the provisions enacted by the county under § 5–810 of this subtitle shall apply to
17 that school system.]
18 5–902.
19(a)      The court may compel compliance with the Ethics Commission’s order by:
20(1)   issuing an order to cease and desist from the violation; or
21(2)   granting other injunctive relief.
22(b)      (1)   The court may also:
23(i)   impose a fine:
241.     not exceeding $5,000 for a violation of this title;
252.     with each day that the violation occurs being a separate
26 offense; and
273.     which shall be paid to the State Treasurer and deposited
28 in the General Fund; or
29(ii)   except as provided in paragraph (2) of this subsection, void an
30 official act of an official or employee if:
  HOUSE BILL 1074  9
11.     the official or employee had a conflict of interest that is
2 prohibited by this title;
32.     the act arose from or concerned the subject matter of the
4 conflict;
53.     the proceeding was brought within 90 days after the act
6 occurred; and
74.     the court determines that the conflict had an impact on the
8 act.
9(2)     The court may not void an official act that:
10(i)    appropriates public funds;
11(ii)   imposes a tax; or
12(iii)   provides for the issuance of a bond, a note, or any other evidence
13 of public obligation.
14(c)    After hearing the case, the court may grant all or part of the relief sought.
15Article – Local Government
16 12–107.
17(a)    [This section applies to all counties except Baltimore City.
18(b)] The provisions of §§ 9–105 and 9–106 of this article apply to an act, an
19 ordinance, or a resolution adopted by a commission county under this section.
20[(c)] (B)      The governing body of a county may enact a law or regulation:
21(1)     designed to prevent conflicts between the private interests and public
22 duties of county officers or employees, including the governing body; and
23(2)   to govern the conduct and actions of county officers and employees,
24 including the governing body, in performing their public duties.
25[(d)] (C)     (1)   Except as provided in paragraph (2) of this subsection, the
26 governing body of a county may enact a law or regulation to provide for a penalty, including
27 a fine, a forfeiture, an imprisonment, or a removal from office for violation of any law or
28 regulation enacted under subsection [(c)] (B) of this section.
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1(2)    The governing body of [Calvert County] A COUNTY shall enact a law or
2 regulation that authorizes the governing body to remove a county elected official from office
3 for violations of any law or regulation enacted under subsection [(c)] (B) of this section or
4 § 5–807(a)(1) of the General Provisions Article relating to conflicts of interest.
5SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
6 October 1, 2026.