2019 -- H 5750

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LC001695

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO CRIMINAL OFFENSES -- THEFT, EMBEZZLEMENT, FALSE

PRETENSES, AND MISAPPROPRIATION

     Introduced By: Representatives Morin, Ucci, Ackerman, Amore, and Serodio

     Date Introduced: February 27, 2019

     Referred To: House Judiciary

     (Governor)

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 11-41 of the General Laws entitled "Theft, Embezzlement, False

Pretenses, and Misappropriation" is hereby amended by adding thereto the following section:

     11-41-31.1. Forfeiture of campaign contributions.

     (a) For the purpose of this section:

     (1) “Candidate,” “contributions,” “person,” “public office,” and “state” have the same

meanings ascribed to them, respectively, in § 17-25-3.

     (2) “Convicted of any specified crime” means being convicted of any specified crime in

this state or being convicted of a crime under the laws in any other state or the United States of

America that, if committed in this state, would be a specified crime, and for which the person has

not received a pardon from the governor of this state, the governor or other officer authorized to

grant pardons in another state, or the president of the United States of America.

     (3) “Pleads guilty or nolo contendere” does not include any plea of nolo contendere

which does not constitute a conviction by virtue of §§ 12-10-12 or 12-18-3.

     (4) “Specified crime” means any felony involving accepting or giving, or offering to

give, any bribe relating to a public office, the embezzlement of campaign contributions or public

money, extortion or theft of campaign contributions or public money, or conspiracy to commit

any of the above.

     (b) Notwithstanding any law to the contrary, if any candidate or former candidate is

convicted of, or pleads guilty or nolo contendere to, any specified crime, the judge, as part of any

sentence imposed, may order the forfeiture of any or all campaign contributions of the candidate

or former candidate to pay campaign debts and expenses already incurred, return donations to

contributors, donate to the general fund of this state, or a combination of the above.

     (c) In determining whether campaign funds shall be forfeited, the court shall consider and

make a finding on the following factors:

     (1) The severity of the specified crime of which the candidate or former candidate has

been convicted or to which the candidate or former candidate has pleaded guilty or nolo

contendere;

     (2) The amount of monetary loss suffered by any person as a result of the subject

specified crime; and

     (3) Any other factors that, in the judgment of the court, justice may require.

     SECTION 2. Section 17-14-1 of the General Laws in Chapter 17-14 entitled "Nomination

of Party and Independent Candidates" is hereby amended to read as follows:

     17-14-1. Declarations of candidacy.

     During the last consecutive Monday, Tuesday, and Wednesday in June in the even years

and during the thirty-ninth (39th) and fortieth (40th) days preceding a primary election for a

special election, or for an election regularly scheduled for a time other than the biennial general

statewide election, each voter desiring to be a candidate at the upcoming primary or an

independent candidate on final nomination papers shall, on a form that shall be provided by the

secretary of state, file a declaration of his or her candidacy not later than four (4:00) p.m. of the

last day for the filing with the secretary of state for congressional and statewide general offices,

or with the local board of the place of the candidate's voting residence for general assembly, or

state committee or senatorial and representative district committee or with the appropriate local

board for local officers. The declaration shall be signed by the candidate as his or her name

appears on the voting list. The signature shall be accepted as valid if it can be reasonably

identified to be the name and signature of the voter it purports to be. A variation of the voter's

signature by the insertion or omission of identifying titles or by the substitution of initials for the

first or middle names of both shall not in itself be grounds for invalidation of the signature. The

declaration shall also include the following information:

     (1) The candidate's name as it appears on the voting list, subject to the same provisions as

relate to the voter's signature on the declaration;

     (2) The address as it appears on the voting list, provided that an address which is

substantially the same as the address on the voting list shall be valid;

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     (3) The party declaration if seeking to run in a party primary;

     (4) The office sought;

     (5) The place and date of birth;

     (6) The length of residence in the state and in the town or city where he or she resides;

     (7) A certification that he or she is neither serving a sentence, including probation or

parole, for which he or she was imprisoned upon final conviction of a felony imposed on any date

nor serving any sentence, whether incarcerated or suspended, on probation or parole, upon final

conviction of a felony committed after November 5, 1986;

     (8) A certification that he or she has not been lawfully adjudicated to be non compos

mentis, of unsound mind;

     (9) If a person is a candidate for state or local office, a certification that, as of the date of

declaration, they have no reports due on or after July 1, 2019, to the state board of elections

pursuant to chapter 25 of title 17 that are more than thirty (30) days overdue;

     (10) If a person is a candidate for state or local office, a certification that, as of the date of

declaration, they have no unpaid fines, fees, or penalties assessed on or after July 1, 2019, by the

state board of elections pursuant to its authority granted under chapter 7 of title 17 or chapter 25

of title 17 that are overdue by more than thirty (30) days, provided that any fines, fees, or

penalties that are subject to payment plans as agreed with the state board of elections, or being

appealed pending determination by the state board of elections or a court of competent

jurisdiction, or for which the time to appeal to the state board of elections or a court of competent

jurisdiction has not expired shall not be considered overdue for purposes of this provision;

     (9)(11) In the case of candidates for party nomination, a certification that he or she has

not been a member of a political party other than the declared party within ninety (90) days of the

filing date; and

     (10)(12) If a person is a candidate for a state or local office, a certification that the person

has not within the preceding three (3) years served any sentence, incarcerated or suspended, on

probation or parole, for a crime committed after November 5, 1986, upon a plea of nolo

contendere or guilty or upon a conviction of a felony or for a misdemeanor for which a sentence

of imprisonment for six (6) months or more, whether suspended or to be served as imposed.

     SECTION 3. Chapter 17-14 of the General Laws entitled "Nomination of Party and

Independent Candidates" is hereby amended by adding thereto the following section:

     17-14-18. Campaign reporting.

     A person shall be disqualified as a candidate for elective office if the person has, as of the

date of filing of a declaration of candidacy pursuant to chapter 14 of title 17, or as of the date on

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which an irregular, or “write-in” ballot for such person is cast pursuant to § 17-19-31, whichever

is applicable, any reports due on or after July 1, 2019, to the state board of elections pursuant to

chapter 25 of title 17 that are more than thirty (30) days overdue.

     17-14-19. Payments.

     A person shall be disqualified as a candidate for elective office if the person has, as of the

date of filing a declaration of candidacy pursuant to chapter 14 of title 17, or as of the date on

which an irregular, or “write-in,” ballot for such person is cast pursuant to § 17-19-31, whichever

is applicable, any unpaid fines, fees, or penalties assessed on or after July 1, 2019, by the state

board of elections pursuant to its authority granted under chapter 7 of title 17 or chapter 25 of title

17 that are overdue by more than thirty (30) days; provided, that any fines, fees, or penalties that

are subject to payment plans as agreed with the state board of elections, or being appealed

pending determination by the state board of elections or a court of competent jurisdiction, or for

which the time to appeal to the state board of elections or a court of competent jurisdiction has

not expired shall not be considered overdue for purposes of this provision.

     SECTION 4. Sections 17-25-11, 17-25-13, 17-25-16 and 17-25-27 of the General Laws

in Chapter 17-25 entitled "Rhode Island Campaign Contributions and Expenditures Reporting"

are hereby amended to read as follows:

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

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

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

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

except when the ninety-day (90) reporting period ends less than forty (40) days prior to an

election in which case the ninety-day (90) report shall be included as part of the report required to

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

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

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

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

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

made, on behalf of, or in opposition to, a candidate:

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

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

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

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

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

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

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

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

contain:

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

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

received;

     (ii) The amount contributed by each person;

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

hundred dollars ($100) were made; and

     (iv) The amount and purpose of each expenditure.

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

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

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

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

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

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

regarding the past election has been completed. The certification shall be accompanied by a final

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

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

that have been made for the discharge of any obligations remaining unpaid at the time of

dissolution.

     (c)(1) Once the campaign treasurer certifies that the campaign fund has completed its

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

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

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

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

expenditures made at ninety-day (90) intervals commencing with the next quarterly report

following the election; however, the time to file under this subsection shall be no later than the

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

filing deadline following the ninety-day (90) reporting period occurs less than twenty-eight (28)

days before an election, in which case the report shall be filed pursuant to the provisions of

subdivisions (a)(1) and (2) of this section. Provided, however, if the last day of the month falls on

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a weekend or a holiday, the report shall be due on the following business day.

     (2) In addition to the reports required pursuant to this section, a candidate or office holder

shall also file with the board of elections a paper copy of the account statement from the office

holder's campaign account, which account statement shall be the next account statement issued by

their financial institution after the filing of the fourth quarterly campaign expense report. A

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

dissolved shall also file with the board of elections a paper copy of the account statement from

the candidate’s or office holder’s campaign account, which account statement shall be the account

statement issued by the candidate’s or office holder’s financial institution following the date of

dissolution. In each instance, the The account statement shall be submitted to the board within

thirty (30) days of its receipt by the candidate, officeholder, treasurer, or deputy treasurer. The

account statement shall not be deemed a public record pursuant to the provisions of chapter 2 of

title 38. The board of elections, its agents, and employees shall not publish, deliver, copy, or

disclose, to any person or entity any account statement or information contained therein for any

candidate, former candidate, officeholder, party, or political action committee. Provided, as to

state and municipal political parties, the requirements of this subsection (c)(2) shall apply to the

annual report required pursuant to § 17-25-7.

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

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

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

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

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

does not exceed one thousand dollars ($1,000) within a calendar year, reports must be made

listing the source and amounts of all contributions in excess of a total of one hundred dollars

($100) from any one source. within a calendar year. Even though Furthermore, if the aggregate

amount expended on behalf of the candidacy does not exceed one thousand dollars ($1,000) and

no within a calendar year, contribution from any one source within a calendar year exceeds not

exceeding one hundred dollars ($100), the report shall state the may be reported as an aggregate

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

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

and the amount from political party committees.

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

campaign treasurer may file a sworn statement that the treasurer will accept no contributions, in

excess of one hundred dollars ($100) within a calendar year from any one source other than the

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candidate or in excess of one thousand dollars ($1,000) from the candidate for his or her own

campaign with a calendar year nor make aggregate expenditures in excess of the minimum

amounts for which a report is required by this chapter one thousand dollars ($1,000) within a

calendar year. Thereafter, the campaign treasurer shall be excused from filing all the reports for

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

election.

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

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

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

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

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

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

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

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

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

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

due on the following business day.

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

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

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

     (2) Any person or entity candidate or campaign treasurer of the political action committee

or political party committee required to file reports with the board of elections pursuant to this

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

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

hundred dollars ($100) for each non-compliance in the case of a candidate and for each non-

compliance arising during their tenure in the case of a campaign treasurer of a political action

committee or political party committee, respectively. Notwithstanding any of the provisions of

this section, the board of elections shall have the authority to waive late filing fees for good cause

shown.

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

person or entity who or that fails to file the reports required by this section to the candidate or the

campaign treasurer, as applicable, within fourteen (14) days following the date on which any

report is required to be filed pursuant to this section. A person or entity who or that is sent a

notice of non-compliance and If the candidate or campaign treasurer, as applicable fails to file the

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required report within seven (7) days of the receipt of the notice, the or she shall be fined two

dollars ($2.00) ten dollars ($10.00) a day from the day of receipt of the notice of non-compliance

until the day the report has been received by the state board up to one thousand dollars ($1,000)

in fines per report. Notwithstanding any of the provisions of this section, the board of elections

shall have the authority to waive late filing fees for good cause shown.

     17-25-13. Penalties.

     (a) Any person who willfully and knowingly violates the provisions of this chapter shall,

upon conviction, be guilty of a misdemeanor and shall be fined not more than one hundred dollars

($100) five hundred dollars ($500) per violation.

     (b) The state board may fine any person or entity who violates the provisions of this

chapter in an amount not more than one hundred dollars ($100) five hundred dollars ($500) per

violation.

     (c) Fines, fees and penalties imposed by the state board for violations of this chapter shall

be paid for by the candidate, officeholder or entity against whose campaign the fines, fees or

penalties have been levied. Fines, fees and penalties levied by the state board pursuant to this

chapter shall not be paid for from contributions or funds available in a campaign account.

     (d) There is hereby created within the general fund a restricted receipt account to be

known as the “board of elections fines and penalties account.” All fines, penalties, and judgments

collected by the board of elections shall be deposited into this account and funds shall be used to

support the board’s auditing, compliance, and enforcement activities.

     17-25-16. Enjoining of illegal acts -- Forfeiture of contributions.

     (a) In addition to any and all other rights and remedies that may exist at law, including,

but not limited to, § 11-41-31.1, whenever Whenever the board of elections has reason to believe

that a candidate, political party committee, or political action committee, or the campaign

treasurer or deputy campaign treasurer of the candidate or committee, has accepted a contribution

or made an expenditure in violation of the provisions of this chapter, or willfully and knowingly

has made a false statement in any of the reports required under this chapter or failed to file any

report, or has otherwise violated this chapter, the board may, in addition to all other actions

authorized by law, request the attorney general to bring an action in the name of the state of

Rhode Island in the superior court against the person and/or committee to enjoin them from

continuing the violation, or doing any acts in furtherance of the violation, and for any other relief

that the court deems appropriate. In addition, the court may order the forfeiture of any or all

contributions accepted in violation of and/or not reported as required by this chapter. All

contributions so forfeited shall become the property of the state.

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     (b) The court shall also impose a civil penalty not exceeding three (3) times the amount

of:

     (1) Contributions made or accepted in violation of this chapter;

     (2) Expenditures made in violation of this chapter; and/or

     (3) Contributions or expenditures not reported as required by this chapter.

     (c) All funds collected pursuant to this section shall be deposited in the fund established

for the public financing of the electoral system pursuant to this chapter.

     17-25-27. Post-audit of accounts -- Publication.

     (a) The board may conduct a post-audit of all accounts and transactions for any election

cycle and may conduct any other special audits and post-audits that it may deem necessary. The

board shall publish a summary of the reports filed by candidates for general office pursuant to the

public financing provision of this chapter on or before April 1 of the year following any year in

which elections are held for statewide elective office.

     (b) No later than January 1, 2020, the board shall select a statistically random sample of

at least twelve and one-half percent (12.5%) of candidates for general office who raised or

expended more than ten thousand dollars ($10,000) in either year of the 2020 election cycle, at

least twelve and one-half percent (12.5%) of other candidates who raised or expended more than

ten thousand dollars ($10,000) in either year of the 2020 election cycle, and at least twelve and

one-half percent (12.5%) of political action committees which raised or expended more than ten

thousand dollars ($10,000) in either year in the 2020 election cycle. The board shall conduct a

post-audit of each selected candidate and political action committee by December 31, 2022. In

conducting such a post-audit, the board shall review at least two (2) years of records for each

candidate and political action committee that has been active for at least two (2) years.

     (c) Beginning in January 2022 and in the January of each odd numbered year thereafter,

the board shall select a statistically random sample of at least twenty-five percent (25%) of

candidates for general office who raised or expended more than ten thousand dollars ($10,000) in

either year of the previous election cycle, at least twenty-five percent (25%) of other candidates

who raised or expended more than ten thousand dollars ($10,000) in either year of the previous

election cycle, and at least twenty-five percent (25%) of political action committees which raised

or expended more than ten thousand dollars ($10,000) in either year of the previous election

cycle. The board shall conduct a post-audit of each selected candidate and political action

committee by the end of the following even numbered year. In conducting such a post-audit, the

board shall review at least two (2) years of records for each candidate and political action

committee that has been active for at least two (2) years.

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     SECTION 5. Section 17-25.2-5 of the General Laws in Chapter 17-25.2 entitled "Ballot

Question Advocacy and Reporting" is hereby amended to read as follows:

     17-25.2-5. Reporting by ballot question advocates.

     (a) Every ballot-question advocate shall file periodic reports signed by an individual

responsible for its contents on a form prescribed by the board of elections setting forth the name

and address of the ballot-question advocate, including any other name under which the ballot-

question advocate conducts ballot-question advocacy, the name and address of the person filing

the report; and

     (1) The name, address and, if applicable, the place of employment of each person making

a contribution or contributions that in the aggregate exceed one thousand-eight hundred dollars

($1,800) per election cycle to a ballot-question advocate for purposes of ballot question advocacy

and the amount contributed by each person or source; provided, however, this information shall

be reported only if:

     (i) The contributions received by a ballot-question advocate are solicited in any way,

including by written, electronic, or verbal means, by the ballot-question advocate specifically for

ballot-question advocacy; or

     (ii) The contributions were specifically designated by the contributor for ballot-question

advocacy; or

     (iii) The ballot question advocate knew or had reason to know that the contributor

intended or expected that the majority of the contributions be used for ballot question advocacy;

and

     (2) The name and address of every person or entity receiving an expenditure for ballot-

question advocacy, which in the aggregate exceeds one hundred dollars ($100), the amount of

each expenditure for ballot-question advocacy, and the total amount of expenditures for ballot-

question advocacy made by the ballot-question advocate as of the last report date; and

     (3) A statement of the position of the ballot-question advocate in support of or opposition

to the ballot-question; and

     (4) The names and addresses of all identified members or endorsing organizations,

corporations, and/or associations that authorize the ballot-question advocate to represent to the

public that they support the positions of the ballot-question advocate; and

     (5) The name and address of at least one of the officers of the ballot question advocate, if

any, or one individual that is responsible for the ballot question advocate's compliance with the

provisions of this chapter.

     (b) The first report must be filed by a ballot-question advocate for the period beginning

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when the ballot-question advocate expends a cumulative total that exceeds one thousand dollars

($1,000) for ballot-question advocacy and ending the last day of the first full month following

such date, to be filed with the board of elections due no later than seven (7) days after the end of

the month. A ballot-question advocate must thereafter file calendar month reports with the board

of elections due no later than seven (7) days after the end of the month; provided, that in lieu of

filing for the last full calendar month preceding the ballot question election, a report must be filed

due no later than seven (7) days before the election.

     (c) A ballot-question advocate must file a final report of contributions received and

expenditures made for ballot-question advocacy no later than thirty (30) days after the election for

the ballot question is held subject to the provisions of § 17-25.2-6. All reports filed with the board

of elections must be received no later than 4:00 p.m. on the due date.

     (d)(1) The board of elections may, for good cause shown and upon receipt of a written or

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

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

and further if the election for the ballot question is to be held less than seven (7) days from the

report due date and time, the report must be filed prior to the election date.

     (2) Any ballot-question advocate required to file reports with the board of elections

pursuant to this section and who has not filed the report by the required date and time, unless

granted an extension by the board, shall be fined twenty-five dollars ($25.00) one hundred dollars

($100).

     (3) The board of elections shall send a notice of noncompliance, by certified mail, to the

ballot-question advocate who fails to file the reports required by this section. A ballot-question

advocate that has been sent a notice of noncompliance and fails to file the required report within

seven (7) days of the receipt of the notice shall be fined two dollars ($2.00) ten dollars ($10.00)

per day from the date of the receipt of the notice of noncompliance until the day the report is

received by the board of elections, provided that no fine for any one report shall exceed one

thousand dollars ($1,000). Notwithstanding any of the provisions of this section, the board of

election shall have the authority to waive late filing fees for good cause shown.

     SECTION 6. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CRIMINAL OFFENSES -- THEFT, EMBEZZLEMENT, FALSE

PRETENSES, AND MISAPPROPRIATION

***

     This act would amend certain campaign contribution and expenditure reporting

requirements and would provide for forfeiture of campaign contributions upon a conviction or

plea of nolo contendere to specified felony crimes relating to public office.

     This act would take effect upon passage.

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