2015 -- H 5124

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LC000562

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO ELECTIONS -- RHODE ISLAND CAMPAIGN CONTRIBUTIONS AND

EXPENDITURES REPORTING

     

     Introduced By: Representatives Melo, Amore, Serpa, Lombardi, and Costantino

     Date Introduced: January 15, 2015

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 17-25-2, 17-25-5, 17-25-7, 17-25-11, 17-25-19 and 17-25-20 of

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the General Laws in Chapter 17-25 entitled "Rhode Island Campaign Contributions and

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Expenditures Reporting" are hereby amended to read as follows:

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     17-25-2. Declaration of policy. -- (a) It is declared to be in the public interest and to be

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the policy of the state to require the reporting of certain contributions received and expenditures

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made to aid or promote the nomination, election, or defeat of all candidates for public office.

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     (b) Any candidate for state or local office who has outstanding campaign finance reports

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or fines due the board of elections shall be ineligible to qualify for election to any state or local

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public office until all such reports are filed and/or all fines are paid.

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     17-25-5. Duties and powers of the board of elections. -- (a) The board of elections is

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authorized to perform any duties that are necessary to implement the provisions of this chapter.

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Without limiting the generality of this provision, the board is authorized and empowered to:

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      (1) Develop forms for the making of the required reports to be filed with the board of

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elections, which form shall contain a notice setting forth the times and dates when reports are

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required to be filed;

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      (2) Prepare and publish a manual for all candidates, political party committees, political

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action committees and ballot questions advocates prescribing the requirements of the law,

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including uniform methods of bookkeeping and reporting and requirements as to the length of

 

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time that any person required to keep any records pursuant to the provisions of this chapter shall

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retain these records, or any class or category of records, or any other documents;

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      (3) Adopt rules and regulations to carry out the purposes of this chapter;

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      (4) (i) Prepare and make available for public inspection, through the office of the board

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of elections, summaries of all reports grouped according to candidates and political parties;

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      (ii) Make all campaign finance reports available electronically on the board of election's

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website no later than two (2) business days after the reports are received by the board of

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elections;

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      (iii) Take any steps that may be necessary or appropriate to make all campaign finance

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reports available in an electronic searchable format on the board of election's website no later

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than one business day after the reports are received by the board of elections commencing with

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the first quarterly reporting period in 2010.

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      (5) Prepare and publish, prior to May 1 or as soon as practicable thereafter of each year,

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an annual report to the general assembly;

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      (6) Ascertain whether candidates or political party committees, political action

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committees or ballot questions advocates, have failed to file reports or have filed defective

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reports; and may for good cause shown extend the dates upon which reports are required to be

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filed;

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      (7) (i) Conduct confidential investigations and/or closed hearings in accordance with this

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title relative to alleged violations of this chapter either on its own initiative or upon receipt of a

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verified written complaint, which complaint shall, under pain and penalty of perjury, be based

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upon actual knowledge and not merely on information and belief. Upon completion of its

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investigation and/or hearings, if the board has reason to believe that a violation of this chapter has

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occurred or that a complainant has willfully sworn or affirmed falsely, the chairperson of the

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board of elections is authorized to and shall may issue to the person found to be in violation of

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this chapter a summons pursuant to § 12-7-11 to appear before the division of the district court

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where the person resides and shall be prosecuted by the attorney general. Any action taken by the

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board as a result of a written verified complaint shall, whenever possible, be completed no later

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than five (5) business days after its receipt, and if no violation is found to exist, all records and

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papers shall be kept confidential unless further legal proceedings are instituted.

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      (ii) The confidentiality of an audit, investigation, hearing, and/or findings may be waived

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in writing only by the person or persons complained of or audited. However, once an audit is

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complete and presented to the board, the audit will be a matter of public record.

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      (8) Conduct compliance reviews and audits of campaign accounts as necessary, and in a

 

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manner consistent with the provisions of this chapter.

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      (b) The board of elections shall take any steps that may be necessary or appropriate to

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furnish timely and adequate information, in appropriate printed summaries and in any other form

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that it may see fit, to every candidate or prospective candidate for public office who becomes or is

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likely to become subject to the provisions of this chapter, and to every treasurer duly designated

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under the provisions of this chapter, informing them of their actual or prospective obligations and

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responsibilities under this chapter.

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      (c) (1) The board of elections is authorized, upon written request, to render written

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advisory opinions as to whether a given set of facts and circumstances set forth in the request

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would constitute a violation of any of the provisions of this chapter, or whether a given set of

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facts and circumstances set forth in the request would render any person subject to any of the

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reporting requirements of this chapter; provided, that the requirement for a written opinion may

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be voluntarily waived by the candidate or committee.

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      (2) Unless an extension of time is consented to by any person who submits a written

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request for an advisory opinion, the board of elections shall, whenever possible, render its written

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advisory opinion within five (5) business days of receipt of the request.

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      (d) (1) For each quarterly report required to be filed, the board shall send a postcard by

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regular mail to each person and entity required to file a report, which will notify the person or

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entity that a report required to be filed is due within fourteen (14) days.

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      (2) The failure to receive this notice shall not absolve the person or entity of the

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reporting requirements contained in this chapter.

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     17-25-7. Contents of reports to be filed by treasurers of candidates and committees.

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-- (a) Each campaign treasurer of a candidate, each state and municipal committee of a political

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party, and each political action committee shall keep accurate records and make a full report,

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upon a form prescribed by the board of elections, of all contributions received and expenditures

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made by it in excess of a total of one hundred dollars ($100) from any one source within a

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calendar year, in furtherance of the nomination, election, or defeat of any candidate or the

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approval or rejection of any question submitted to the voters, or at any financial town meeting,

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financial town referendum, or other election at which amendments to a city or town charter are

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proposed, during the period from the date of the last report, or in the case of the initial report,

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beginning on the date of the appointment of the campaign treasurer for state and municipal

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committees and political action committees and on the date a person becomes a "candidate" as

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defined in § 17-25-3(2) for individual candidates. The report shall contain the name, address and

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place of employment of each person or source from whom the contributions and expenditures in

 

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excess of one hundred dollars ($100) were received or made and the amount contributed or

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expended by each person or source. The report shall be filed with the board of elections on the

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dates designated in § 17-25-11. The campaign treasurer of the candidate, or committee reporting,

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shall certify to the correctness of each report. This subsection shall apply to any entity advocating

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the approval or rejection of any question presented to voters at any financial town meeting, which

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shall file reports of contributions or expenditures every seven (7) days if the total of the money so

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expended exceeds one hundred dollars ($100) in a calendar year notwithstanding any other

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provisions contained in this title.

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      (b) Each state and municipal committee of a political party shall also file with the board

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of elections, not later than March 1 of each year, an annual report setting forth in the aggregate all

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contributions received and all expenditures made during the previous calendar year, whether or

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not these expenditures were made, incurred, or authorized in furtherance of the election or defeat

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of any candidate. The treasurer of the committee or organization reporting shall certify to the

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correctness of each report.

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      (c) Any report filed pursuant to the provisions of this section shall include contributions

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received from any "testimonial affair", as defined in § 17-25-3, held since the date of the most

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recent report filed.

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     17-25-11. Dates for filing of reports by treasurers of candidates or of committees. --

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(a) During the period between the appointment of the campaign treasurer for state and municipal

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committees and political action committees, or in the case of an individual, the date on which the

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individual becomes a "declared or undeclared candidate", as defined in § 17-25-3(2), except when

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the ninety (90) day reporting period ends less than forty (40) days prior to an election, in which

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case the ninety (90) day report shall be included as part of the report required to be filed on the

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twenty-eighth (28th) day next preceding the day of the primary, general, or special election

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pursuant to subdivision (2) of this subsection, and the election, with respect to which

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contributions are received or expenditures made by him or her in behalf of or in opposition to a

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candidate, the campaign treasurer of a candidate, a political party committee, or a political action

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committee shall file a report containing an account of contributions received and expenditures

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made on behalf of or in opposition to a candidate:

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      (1) At ninety (90) day intervals commencing on the date on which the individual first

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becomes a candidate, as defined in § 17-25-3(2);

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      (2) In a contested election, on the twenty-eighth (28th) and seventh (7th) days next

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preceding the day of the primary, general, or special election; provided, that in the case of a

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primary election for a special election, where the twenty-eighth (28th) day next preceding the day

 

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of the primary election occurs prior to the first day for filing declarations of candidacy pursuant to

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§ 17-14-1, the reports shall be due on the fourteenth (14th) and seventh (7th) days next preceding

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the day of the primary election for the special election; and

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      (3) A final report on the twenty-eighth (28th) day following the election. The report All

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the reports shall contain:

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      (i) The name and address and place of employment of each person from whom

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contributions in excess of a total of one hundred dollars ($100) within a calendar year were

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received;

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      (ii) The amount contributed by each person;

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      (iii) The name and address of each person to whom expenditures in excess of one

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hundred dollars ($100) were made; and

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      (iv) The amount and purpose of each expenditure.

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      (b) Concurrent with the report filed on the twenty-eighth (28th) day following an

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election, or at any time thereafter, the campaign treasurer of a candidate, or political party

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committee or political action committee, may certify to the board of elections that the campaign

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fund of the candidate, political party committee, or political action committee having been

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instituted for the purposes of the past election, has completed its business and been dissolved or,

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in the event that the committee will continue its activities beyond the election, that its business

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regarding the past election has been completed; and the certification shall be accompanied by a

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final accounting of the campaign fund, or of the transactions relating to the election, including the

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final disposition of any balance remaining in the fund at the time of dissolution or the

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arrangements which have been made for the discharge of any obligations remaining unpaid at the

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time of dissolution.

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      (c) Once the campaign treasurer certifies that the campaign fund has completed its

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business and been dissolved, no contribution which is intended to defray expenditures incurred on

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behalf of or in opposition to a candidate during the campaign can be accepted. Until the time that

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the campaign treasurer certifies that the campaign fund has completed its business and been

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dissolved, the treasurer shall file reports containing an account of contributions received and

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expenditures made, even if such contributions or expenditures shall be zero, at ninety (90) day

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intervals commencing with the next quarterly report following the election; however, the time to

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file under this subsection shall be no later than the last day of the month following the ninety (90)

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day period, except when the last day of the month filing deadline following the ninety (90) day

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reporting period occurs less than twenty-eight (28) days before an election, in which case the

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report shall be filed pursuant to the provisions of subdivisions (a)(1) and (2) of this section.

 

LC000562 - Page 5 of 11

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Provided, however, if the last day of the month falls on a weekend or a holiday, the report shall be

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due on the following business day.

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      (d) (1) There shall be no obligation to file the reports of expenditures required by this

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section on behalf of or in opposition to a candidate if the total amount to be expended in behalf of

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the candidacy by the candidate, by any political party committee, by any political action

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committee, or by any person shall not in the aggregate exceed one thousand dollars ($1,000).

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      (2) However, even though the aggregate amount expended on behalf of the candidacy

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does not exceed one thousand dollars ($1,000), reports must be made listing the source and

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amounts of all contributions in excess of a total of one hundred dollars ($100) from any one

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source within a calendar year. Even though the aggregate amount expended on behalf of the

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candidacy does not exceed one thousand dollars ($1,000) and no contribution from any one

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source within a calendar year exceeds one hundred dollars ($100), the report shall state the

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aggregate amount of all contributions received. In addition, the report shall state the amount of

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aggregate contributions that were from individuals, the amount from political action committees,

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and the amount from political party committees.

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      (e) On or before the first date for filing contribution and expenditure reports, the

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campaign treasurer may file a sworn statement that the treasurer will accept no contributions nor

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make aggregate expenditures in excess of the minimum amounts for which a report is required by

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this chapter. Thereafter, the campaign treasurer shall be excused from filing all the reports for that

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campaign, other than the final report due on the twenty-eighth (28th) day following the election.

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      (f) A campaign treasurer must file a report containing an account of contributions

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received and expenditures made at the ninety (90) day intervals provided for in subsection (c) of

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this section for any ninety (90) day period in which the campaign received contributions in excess

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of a total of one hundred dollars ($100) within a calendar year from any one source and/or made

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expenditures in excess of one thousand dollars ($1,000) within a calendar year; however, the time

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to file under this subsection shall be no later than the last day of the month following the ninety

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(90) day period, except when the last day of the month filing deadline following the ninety (90)

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day reporting period occurs less than twenty-eight (28) days before an election, in which case the

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report shall be filed pursuant to the provisions of subdivisions (a)(1) and (2) of this section.

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Provided, however, if the last day of the month falls on a weekend or a holiday, the report shall be

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due on the following business day.

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      (g)(e) (1) The board of elections may, for good cause shown and upon the receipt of a

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written or electronic request, grant a seven (7) day extension for filing a report; provided, that the

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request must be received no later than the date upon which the report is due to be filed.

 

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      (2) Any person or entity required to file reports with the board of elections pursuant to

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this section and who has not filed the report by the required date, unless granted an extension

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pursuant to subdivision (1) of this subsection, shall be fined twenty-five dollars ($25.00).

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Notwithstanding any of the provisions of this section, the board of elections shall have the

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authority to waive late filing fees for good cause shown.

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      (3) The board of elections shall send a notice of non-compliance, by certified mail, to

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any person or entity who fails to file the reports required by this section. A person or entity who is

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sent a notice of non-compliance and fails to file the required report within seven (7) days of the

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receipt of the notice shall be fined two dollars ($2.00) per day from the day of receipt of the

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notice of non-compliance until the day the report has been received by the state board.

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Notwithstanding any of the provisions of this section, the board of elections shall have the

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authority to waive late filing fees for good cause shown.

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     17-25-19. Public financing of election campaigns -- Outlined. -- (a) To effectuate the

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purpose stated in § 17-25-18, public funds shall be made available under the terms and conditions

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of this section and §§ 17-25-20 -- 17-25-27 to qualifying candidates for general office who agree

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to abide by a limitation on the total amount of campaign contributions received and expenditures

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made for election purposes.

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      (b) Candidates for general office shall be eligible to receive two dollars ($2.00) of public

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funds for each qualified dollar ($1.00) of private funds contributed which do not exceed an

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aggregate of five hundred dollars ($500) from a single source within an election cycle and one

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dollar ($1.00) of public funds for each qualified dollar ($1.00) of private funds contributed which

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exceed an aggregate of five hundred dollars ($500) from a single source within an election cycle

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but do not exceed the limitations on aggregate contributions which are eligible to be matched set

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in subdivision 17-25-20(3), subject to the provisions of subdivision 17-25-20(2). The total

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amount of public funds provided to a candidate shall not exceed seven hundred fifty thousand

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dollars ($750,000) in matching funds for a total of one million five hundred thousand dollars

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($1,500,000) for candidates for governor; and one hundred eighty-seven thousand five hundred

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dollars ($187,500) in matching funds for a total of three hundred seventy-five thousand dollars

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($375,000) for candidates for other general offices.

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      (c) In order to be eligible for matching public funds, each candidate may at the time he

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or she becomes a candidate, as defined in subdivision 17-25-3(2), but no later than twenty-one

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(21) days from the last 4:00 pm on the last day for filing declarations of candidacy for general

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office, must sign a statement under oath pledging to comply with the limitations on campaign

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contributions and expenditures and with all of the terms and conditions set forth in this chapter.

 

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Any candidate who fails to file the statement with his or her declaration for office within the time

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set forth shall be ineligible to receive public funds.

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     17-25-20. Eligibility criteria for matching public funds. -- In order to receive matching

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public funds under § 17-25-19, a qualifying candidate must comply with the following

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requirements:

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      (1) The candidate must sign a statement under oath, as provided for in § 17-25-19,

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pledging to comply with the limitations on contributions and expenditures for election purposes

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and with all the terms and conditions set forth in this chapter. Upon the filing of the statement, a

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candidate for general office shall be bound to abide by the limitations on contributions and

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expenditures set forth in this chapter and may not withdraw from his or her obligation to abide by

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these restrictions. Any candidate who does not qualify to receive matching public funds, but

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nonetheless signs a statement under oath, shall be allowed to withdraw from that pledge without

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penalty.

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      (2) (i) Subject to the provisions of paragraph (ii) of this subdivision, no participating

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candidate shall either receive or expend for election purposes more than a total of public and

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private funds in the sum of one million five hundred thousand dollars ($1,500,000) in an election

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cycle. No participating candidate for general office other than governor shall receive or expend

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for election purposes more than a total of public and private funds in the sum of three hundred

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seventy-five thousand dollars ($375,000) in an election cycle.

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      (ii) The limitations on contributions received from private sources, matching funds

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available from the state, and total permitted expenditures shall apply in the 1994 general election

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and, subject to appropriations by the general assembly, shall increase by a percentage to be

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determined by the board of elections in January of each year in which a general election involving

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general offices is held, beginning in 1998. In no case shall the increase exceed the total increase

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in the consumer price index since the month in which the previous general election involving

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general was held.

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      (3) (i) Only the first two thousand dollars ($2,000) of the aggregate private monetary

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contributions from a single private source within an election cycle shall be eligible for matching

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public funds for candidates for governor; provided, that the entire amount contributed shall be

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considered toward the dollar limits provided in subdivision (2) of this section.

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      (ii) Only the first one thousand dollars ($1,000) of the aggregate private monetary

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contributions from a single private source within an election cycle shall be eligible for matching

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public funds for candidates for lieutenant governor, secretary of state, attorney general, and

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general treasurer; provided, that the entire amount contributed shall be considered toward the

 

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dollar limits provided for in subdivision (2) of this section.

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      (iii) Any private funds lawfully contributed during the current election cycle shall be

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eligible for matching public funds subject to the terms and conditions of this section, and private

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funds donated during a preceding election cycle shall not be eligible for matching public funds.

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      (4) The direct costs incurred in connection with raising campaign funds on behalf of a

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candidate shall not be deemed to be expenditures for the purposes of the limitations on

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expenditures set forth in subdivision (2) of this section. Direct costs shall include costs of printing

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and mailing invitations to fundraising events, solicitations for contributions, costs of hosting

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fundraising events, and travel to those events, but shall not include any portion of the salary or

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wages of campaign employees, nor the cost of any radio, television, computer/Internet/electronic

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device, or printed advertisement. The cost of a fundraising event must be less than the amount of

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money realized from the gross proceeds generated by the fundraising event in order to qualify for

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this exclusion.

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      (5) If a candidate who has accepted public funds makes expenditures in excess of the

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permitted amounts, the candidate shall be liable for a civil assessment payable to the state in an

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amount equal to three (3) times the amount of excess funds expended. In addition, the candidate

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shall be ineligible for further participation in the public financing program during the same

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election cycle.

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      (6) In order to receive payments under this section, any candidate for general office shall

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first meet the following additional minimum requirements:

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      (i) Raise an amount in qualified private contributions equal to twenty percent (20%) of

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the total amount eligible to be matched for election as to the office sought;

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      (ii) Receive private contributions from a minimum of two hundred fifty (250) individuals

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contributing at least twenty-five dollars ($25.00) each for candidates for governor and receive

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private contributions from a minimum of one hundred (100) individuals contributing at least

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twenty- five dollars ($25.00) each, for candidates for lieutenant governor, secretary of state,

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attorney general and general treasurer; and

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      (iii) Comply with any and all applicable nomination provisions in this title and qualify

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for the general election ballot pursuant to the process set forth in this title.

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      (7) No public funds received by any candidate pursuant to §§ 17-25-19 -- 17-25-27 of

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this chapter and no private funds used to qualify for the public funds shall be expended by the

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candidate for any purpose except to pay reasonable and necessary expenses directly related to the

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candidate's campaign.

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      (8) No public funds shall be expended by the candidate, except for one or more of the

 

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following uses directly related to the campaign of the candidate:

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      (i) Purchase of time on radio or television stations; provided, however, the content of all

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television time shall include captioning for the deaf and hard of hearing and the content of all

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radio time must be available in a written or text format at the time of request;

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      (ii) Purchase of rental space on outdoor signs or billboards;

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      (iii) Purchase of advertising space on the computer/Internet/electronic device devices

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and in newspapers and regularly published magazines and periodicals;

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      (iv) Payment of the cost of producing the material aired or displayed on radio, television,

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outdoor signs or billboards, and computer/Internet/electronic device devices and in newspapers,

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regularly published magazines, and periodicals;

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      (v) Payment of the cost of printing and mailing campaign literature and brochures;

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      (vi) Purchase of signs, bumper stickers, campaign buttons, and other campaign

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paraphernalia;

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      (vii) Payment of the cost of legal and accounting expenses incurred in complying with

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the public financing law and regulations as required by this chapter;

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      (viii) Payment of the cost of telephone deposits, installation charges, and monthly

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billings in excess of deposits;

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      (ix) Payment of the costs of public opinion polls and surveys; and

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      (x) Payment of rent, utilities and associated expenses connected with the operation of an

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election headquarters or satellite election offices.

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      (9) Contributions received and expended by any candidate for the purpose of defraying

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any expense or satisfying any loan obligations incurred prior to January 1, 1991, by the candidate

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in furtherance of his or her candidacy in a previous election cycle, as defined in subdivision 17-

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25-3(5), shall not be counted toward any contribution or expenditure limitation in §§ 17-25-18 --

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17-25-27.

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      (10) No candidate who has elected to receive public funds shall contribute to or loan to

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his or her own campaign a sum in excess of five percent (5%) of the total amount that a candidate

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is permitted to expend in a campaign for the office pursuant to §§ 17-25-19 and 17-25-21.

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     SECTION 2. This act shall take effect upon passage.

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LC000562

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ELECTIONS -- RHODE ISLAND CAMPAIGN CONTRIBUTIONS AND

EXPENDITURES REPORTING

***

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     This act would provide that any candidate for state or local office who has outstanding

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campaign finance reports or fines due the board of elections would be ineligible to qualify for

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election to any state or local public office until all such reports are filed and/or all fines are paid.

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This act would also clarify filing requirements and increase compliance with Rhode Island

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campaign contributions and expenditures reporting.

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     This act would take effect upon passage.

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