County Council for Montgomery County v. Montgomery Ass'n, Inc.

• Decision Date: 24 February 1975
• Docket Number: No. 139,139
• Citation: 333 A.2d 596,274 Md. 52
• Parties: COUNTY COUNCIL FOR MONTGOMERY COUNTY, Maryland v. MONTGOMERY ASSOCIATION, INC., et al.
• Court: Maryland Court of Appeals

Page 52

274 Md. 52

333 A.2d 596

COUNTY COUNCIL FOR MONTGOMERY COUNTY, Maryland v. MONTGOMERY ASSOCIATION, INC., et al.

No. 139.

Court of Appeals of Maryland.

Feb. 24, 1975.

Argued before MURPHY, C. J., and SINGLEY, SMITH, DIGGES, LEVINE, ELDRIDGE and O'DONNELL, JJ.

ELDRIDGE, Judge.

In July 1974, Montgomery County enacted three ordinances designed to regulate the campaign finance practices of candidates for County Executive and the County Council in that county. The ordinances provided for the reporting of campaign contributions, a ban on corporate contributions, a limit on contributions from individuals and from candidates to their own campaigns, and a limit on campaign spending. The respondents, on August 15, 1974, filed a bill of complaint in the Circuit Court for Montgomery County requesting a declaratory judgment that the three ordinances were invalid and seeking an injunction prohibiting prosecutions under the ordinances. They alleged that the county had not been delegated authority by the General Assembly to enact the ordinances, that the field of regulation of election practices had been completely occupied by the General Assembly in enacting the State Election Code, that the ordinances conflicted with specific provisions of the State Election Code, and that enactment of the ordinances violated the Federal Constitution. On August 29, 1974, the circuit court (McAuliffe, J.) issued a decree declaring the challenged ordinances invalid. The petitioner then took an appeal to the Court of Special Appeals. Because of the importance of the issues involved in the case and the necessity of a decision before the general election in November 1974, we issued a writ of certiorari prior to a decision by the Court of Special Appeals. On September 25, 1974, by a per curiam order, we affirmed the order of the Circuit Court for Montgomery County. We now set forth the reasons for our affirmance. ¹

The first of the three ordinances under consideration, County Council Bill No. 19-74, was enacted on July 9, 1974, and became effective when signed by the county executive on July 22, 1974. The bill purported to 'supplement Article 33 of the Annotated Code of Maryland, 1973 Supplement . . ..' Specifically, the bill prohibited the knowing solicitation or acceptance of contributions from a corporation organized for profit. It also required county executive and county council candidates to report the names and addresses of persons who contributed more than $25 to their campaigns. The reports were to be filed on or before August 15 and October 15 in the election year at the same place and with the same formality required by Maryland Code (1957, 1971 Repl. Vol., 1974 Cum.Supp.), Art. 33, § 26-11. Council Bill 19-74 also defined a 'political committee' in terms similar to those of Art. 33, § 1-1(a)(14) of the Maryland Code. Finally, Bill 19-74 provided that violation of its provisions would be a misdemeanor, subjecting the violator to the possibility of a 6 month prison term and a $1,000 fine.

County Council Bill No. 16-74 was enacted on July 16, 1974, and became effective when signed by the county executive on July 25, 1974. Section 2 of Bill 16-74 contained all of its substantive provisions. Specifically, § 2 limited campaign spending for county executive candidates to $.25 per registered county voter in the primary and to the same amount in the general election. Candidates for county council were limited to an expenditure of $.05 per voter in each election. Political committees not 'in sole support' of a particular candidate for county executive or county council were limited to an expenditure of $.075 per voter in each election.

Section 2 of Bill 16-74 also limited the amount of contributions to a county executive candidate from any one person to $200 in each election. County council candidates were limited to $100 from any one person in each election. A slate which included a county executive or county council candidate could not accept from any one person a contribution of more than $200. Political committees, supporting a county executive or county council candidate, which were not covered by other categories, were limited to $200 contributions from any one person. Duly constituted state central committees organizd in conformance with Art. 33 of the Maryland Code were exempted from this provision.

Bill 16-74 also limited personal contributions by a candidate to his or her own campaign to $5,000 for county executive and $2,500 for county council candidates. Finally, Bill 16-74 provided that violation of its provisions constituted a misdemeanor, punishable by a fine of $1,000 or 6 months in jail, by suspension or removal from office, or by any combination of these.

Bill No. 37-74 was enacted on July 16, 1974, and signed on July 30, 1974. It amended the part of the Montgomery County Code which had been enacted one week before as Bill 19-74. Bill 37-74 provided that during the final two weeks preceding an election, a report of any expenditures or obligation for an expenditure in excess of $1,000 by a candidate or political committee supporting his candidacy must be filed within 24 hours of its occurrence at the same place required by Art. 33, § 26-11, of the Maryland Code.

In an oral opinion, Judge McAuliffe held that the County Council had not been delegated the authority under the Express Powers Act to enact the election ordinances here involved. ² In addition, the circuit court, as an alternative holding, found that the State Election Code, Art. 33 of the Maryland Code, preempted the area of campaign finance regulation and thus precluded county legislation in this field. The circuit court also took note of the possible conflict between the local ordinances and state law with respect to corporate contributions and contributions by candidates.

We agree with the circuit court that the General Assembly, by enacting the comprehensive State Election Code, has completely occupied the field of regulation of campaign finances and thus made clear its intent to exclude local legislation on the subject. ³ We therefore find it unnecessary to decide whether the County Council otherwise had the authority to enact the election ordinances, whether there was an actual conflict between the ordinances and the State Election Code, or whether the ordinances violate the Fourteenth Amendment to the United States Constitution.

Petitioner urges that the ordinances here involved are valid because a charter county, if authorized by Art. 25A, has concurrent power to enact local legislation dealing with matters covered by state legislation as long as there is no actual conflict with the state law and the General Assembly does not expressly state its intention to preempt the area. Since Art. 33 contains no provision which in express terms denies to local governments the power to enact ordinances dealing with election finances, petitioner argues that the Montgomery County Council had authority to enact the ordinances because there was no actual conflict with an act of the State Legislature.

The concurrent power theory allows local legislation in certain fields where the State Legislature has acted if the local governments otherwise have authority to enact legislation on the subject. The concurrent powers theory was first applied by this Court in Rossberg v. State, 111 Md. 394, 74 A. 581 (1909). The appellant in Rossberg challenged the validity of a Baltimore City ordinance under which he had been convicted for selling cocaine. The city ordinance provided heavier penalties than an earlier state statute, as well as including an offense of possession of cocaine not created by the state statute. The appellant in Rossberg argued that enactment of the local ordinance which provided for punishment of an offense which was punishable under state law was invalid because it conflicted with the state law. The Court rejected this argument. It held that the city had been given 'concurrent power' with the State to punish the use of cocaine. The principle that ordinances which conflict with state statutes are invalid was limited to those ordinances which 'assume directly or indirectly to permit acts or occupations which the state statutes prohibit, or to prohibit acts permitted by statute or Constitution . . ..' (111 Md. at 416, 74 A. at 584.)

The extent of the application of the concurrent powers theory was thoroughly examined in City of Baltimore v. Sitnick & Firey, 254 Md. 303, 255 A.2d 376 (1969). Although the petitioner relies heavily on Sitnick, an examination of that case demonstrates that it does not support petitioner's contention with respect to the election ordinances here involved. In Sitnick, a tavern owner and a hotel owner sought a declaration that a Baltimore City minimum wage ordinance was invalid. They argued that the ordinance conflicted with the State Minimum Wage Act, Code (1964 Repl. Vol., 1968 Supp.), Art. 100, §§ 81-93, and that the State Legislature, by enacting the state statute, ahd occupied the field of minimum wage regulation and thereby preempted local legislation on the subject. The state law exempted taverns from coverage, while the city ordinance included them. The city law also set a higher minimum wage-$1.40 to the State's $1.30-at the time of the argument in this Court.

The Court, in a comprehensive opinion by Judge Finan, set forth the limitations on the concurrent power of local governments to supplement state legislation. The Court recognized in Sitnick three grounds on which otherwise valid local legislation may be invalidated because of state legislation concerning the same matter. First, ordinances which conflict with public general laws are invalid. Sitnick, supra, 254 Md. at 310-311, 255 A.2d 376; Art. XI-A, § 3, of the Constitution of Maryland. Such conflict includes situations where ordinances "assume directly or indirectly to permit acts or occupations which the State statutes prohibit, or to prohibit...