Chapter
174
2006 -- S 2797 SUBSTITUTE A AS AMENDED
Enacted 06/27/06
A N A
C T
RELATING TO ELECTIONS
- CAMPAIGN EXPENDITURES
Introduced By: Senator
Michael J. McCaffrey
Date Introduced: February
14, 2006
It is enacted
by the General Assembly as follows:
SECTION
1. Sections 17-25-3, 17-25-5, 17-25-7.2, 17-25-8.1, 17-25-10, 17-25-10.1, 17-
25-11,
17-25-12 and 17-25-15 of the General Laws in Chapter 17-25 entitled "Rhode
Island
Campaign
Contributions and Expenditures Reporting" are hereby amended to read as
follows:
17-25-3.
Definitions. -- As used in this chapter, unless a different meaning
clearly
appears
from the context:
(1)
"Business entity" means any corporation, whether for profit or not for
profit, domestic
corporation
or foreign corporation, as defined in section 7-1.2-106, financial institution,
cooperative,
association, receivership, trust, holding company, firm, joint stock company,
public
utility,
sole proprietorship, partnership, limited partnership, or any other entity
recognized by the
laws of
the United States and/or the state of Rhode Island for the purpose of doing
business. The
term
"business entity" shall not include a political action committee
organized pursuant to this
chapter
or a political party committee or an authorized campaign committee of a
candidate or
office
holder.
(2) "Candidate" means any individual who undertakes any action,
whether preliminary or
final, which
is necessary under the law to qualify for nomination for election or election
to public
office,
and/or any individual who receives a contribution or makes an expenditure, or
gives his or
her
consent for any other person to receive a contribution or make an expenditure,
with a view to
bringing
about his or her nomination or election to any public office, whether or not
the specific
public
office for which he or she will seek nomination or election is known at the
time the
contribution
is received or the expenditure is made and whether or not he or she has
announced
his or
her candidacy or filed a declaration of candidacy at that time.
(3) "Contributions" and "expenditures" include all
transfers of money, paid personal
services,
or other thing of value to or by any candidate, committee of a political party,
or political
action
committee or ballot question advocate. A loan shall be considered a
contribution of money
until it
is repaid.
(4) "Election" means any primary, general, or special election or
town meeting for any
public
office of the state, municipality, or district or for the determination of any
question
submitted
to the voters of the state, municipality, or district.
(5) "Election cycle" means the twenty-four (24) month period
commencing on January 1
of odd
number years and ending on December 31 of even number years; provided, with
respect to
the
public financing of election campaigns of general officers under sections
17-25-19, 17-25-20,
and
17-25-25, "election cycle" means the forty-eight (48) month period
commencing on January
1 of odd
numbered years and ending December 31 of even numbered years.
(6)
"In-Kind Contributions" means the monetary value of other things of
value or paid
personal
services donated to, or benefiting, any person required to file reports with
the board of
elections.
(6)(7) "Other thing of value" means any item of
tangible real or personal property of a
fair
market value in excess of one hundred dollars ($100).
(7)(8) "Paid personal services" means personal services
of every kind and nature, the
cost or
consideration for which is paid or provided by someone other than the committee
or
candidate
for whom the services are rendered, but shall not include personal services provided
without
compensation by persons volunteering their time.
(8)(9) "Person" means an individual, partnership,
committee, association, corporation,
and any
other organization.
(9)(10) "Political action committee" means any group of
two (2) or more persons that
accepts
any contributions to be used for advocating the election or defeat of any
candidate or
candidates
or to be used for advocating the approval or rejection of any question or
questions
submitted
to the voters. Only political action
committees that have accepted contributions from
fifteen
(15) or more persons in amounts of ten dollars ($10.00) or more within an
election cycle
shall be
permitted to make contributions, and those committees must make contributions
to at
least
five (5) candidates for state or local office within an election cycle.
(10)(11) "Public office" means any state, municipal,
school, or district office or other
position
that is filled by popular election, except political party offices. "Political
party offices"
means
any state, city, town, ward, or representative or senatorial district committee
office of a
political
party or delegate to a political party convention, or any similar office.
(11)(12) "State" means state of Rhode Island.
(12)(13) "Testimonial affair" means an affair of any
kind or nature including, but not
limited
to, cocktail parties, breakfasts, luncheons, dinners, dances, picnics, or
similar affairs
expressly
and directly intended to raise campaign funds in behalf of a candidate to be
used for
nomination
or election to a public office in this state, or expressly and directly
intended to raise
funds in
behalf of any state or municipal committee of a political party, or expressly
and directly
intended
to raise funds in behalf of any political action committee.
17-25-5.
Duties and powers of the board of elections. -- (a) The board of
elections is
authorized
to perform any duties that are necessary to implement the provisions of this
chapter.
Without
limiting the generality of this provision, the board is authorized and
empowered to:
(1) Develop forms for the making of the required reports to be filed with the
board of
elections,
which form shall contain a notice setting forth the times and dates when
reports are
required
to be filed;
(2) Prepare and publish a manual for all candidates, political party
committees, and
political
action committees and ballot questions advocates prescribing the
requirements of the
law, including
uniform methods of bookkeeping and reporting and requirements as to the length
of time
that any person required to keep any records pursuant to the provisions of this
chapter
shall
retain these records, or any class or category of records, or any other
documents;
(3) Adopt rules and regulations to carry out the purposes of this chapter;
(4) Prepare and make available for public inspection, through the office of the
board of
elections,
summaries of all reports grouped according to candidates and political parties;
(5) Prepare and publish, prior to May 1 or as soon as practicable thereafter of
each year,
an
annual report to the general assembly;
(6) Ascertain whether candidates or political party committees, or
political action
committees
or ballot questions advocates, have failed to file reports or have filed
defective
reports;
and may for good cause shown extend the dates upon which reports are required
to be
filed;
(7) (i) Conduct confidential investigations and/or closed hearings in
accordance with this
title
relative to alleged violations of this chapter either on its own initiative or
upon receipt of a
verified
written complaint, which complaint shall, under pain and penalty of perjury, be
based
upon
actual knowledge and not merely on information and belief. Upon completion of
its
investigation
and/or hearings, if the board has reason to believe that a violation of this
chapter has
occurred
or that a complainant has willfully sworn or affirmed falsely, the chairperson
of the
board of
elections is authorized to and shall issue to the person found to be in
violation of this
chapter
a summons pursuant to section 12-7-11 to appear before the division of the
district court
where
the person resides and shall be prosecuted by the attorney general. Any action
taken by the
board as
a result of a written verified complaint shall, whenever possible, be completed
no later
than
five (5) business days after its receipt, and if no violation is found to
exist, all records and
papers
shall be kept confidential unless further legal proceedings are instituted.
(ii) The confidentiality of an audit, investigation, hearing, and/or findings
may be waived
in
writing only by the person or persons complained of or audited. However, once
an audit is
complete
and presented to the board, the audit will be a matter of public record.
(8) Conduct compliance reviews and audits of campaign accounts as necessary,
and in a
manner
consistent with the provisions of this chapter.
(b) The board of elections shall take any steps that may be necessary or
appropriate to
furnish
timely and adequate information, in appropriate printed summaries and in any
other form
that it may
see fit, to every candidate or prospective candidate for public office who
becomes or is
likely
to become subject to the provisions of this chapter, and to every treasurer
duly designated
under
the provisions of this chapter, informing them of their actual or prospective
obligations and
responsibilities
under this chapter.
(c) (1) The board of elections is authorized, upon written request, to render
written
advisory
opinions as to whether a given set of facts and circumstances set forth in the
request
would
constitute a violation of any of the provisions of this chapter, or whether a
given set of
facts
and circumstances set forth in the request would render any person subject to
any of the
reporting
requirements of this chapter; provided, that the requirement for a written
opinion may
be
voluntarily waived by the candidate or committee.
(2) Unless an extension of time is consented to by any person who submits a
written
request
for an advisory opinion, the board of elections shall, whenever possible,
render its written
advisory
opinion within five (5) business days of receipt of the request.
(d) (1) For each quarterly report required to be filed, the board shall send a
postcard by
regular
mail to each person and entity required to file a report, which will notify the
person or
entity
that a report required to be filed is due within fourteen (14) days.
(2) The failure to receive this notice shall not absolve the person or entity
of the
reporting
requirements contained in this chapter.
17-25-7.2.
Personal use of campaign funds prohibited. -- (a) The personal use by
any
elected
public office holder or by any candidate for public office, as defined in
section 17-25-3, of
campaign
funds contributed after April 29, 1992, is prohibited. For the purposes of this
section,
"personal
use" is defined as any use other than expenditures related to gaining or
holding public
office
and for which the candidate for public office or elected public official would
be required to
treat
the amount of the expenditure as gross income under section 61 of the Internal
Revenue
Code of
1986, 26 U.S.C. section 61, or any subsequent corresponding Internal Revenue
Code of
the
United States, as from time to time amended.
(b) Expenditures that are specifically prohibited under this chapter include:
(1) Any residential or household items, supplies or expenditures, including
mortgage,
rent or
utility payments for any part of any personal residence of a candidate or officeholder
or a
member
of the candidate's or officeholder's family;
(2) Mortgage, rent, or utility payments for any part of any non-residential
property that is
owned by
a candidate or officeholder or a member of a candidate's or officeholder's family
and
used for
campaign purposes, to the extent the payments exceed the fair market value of
the
property
usage;
(3) Funeral, cremation, or burial expenses, including any expenses related to
deaths
within a
candidate's or officeholder's family;
(4) Clothing, other than items of de minimis value that are used in the
campaign;
(5) Tuition payments;
(6) Dues, fees, or gratuities at a country club, health club, recreational
facility or other
nonpolitical
organization, unless they are part of a specific fundraising event that takes
place on
the
organization's premises;
(7) Salary payments to a member of a candidate's family, unless the family
member is
providing
bona fide services to the campaign. If a family member provides bona fide
services to a
campaign,
any salary payments in excess of the fair market value of the services provided
is
personal
use;
(8) Admission to a sporting event, concert, theater, or other form of
entertainment, unless
part of
a specific campaign or officeholder activity;
(9) Payment of any fines, fees, or penalties assessed pursuant to this chapter.
(c) Any expense that results from campaign or officeholder activity is
permitted use of
campaign
funds. Such expenditures may include:
(1) The defrayal of ordinary and necessary expenses of a candidate or
officeholder;
(2) Office expenses and equipment, provided the expenditures and the use of the
equipment
can be directly attributable to the campaign or the officeholder's duties and
responsibilities;
(3) Donations to charitable organizations, provided the candidate or
officeholder does
not
personally benefit from the donation or receive compensation from the recipient
organization;
(4) Travel expenses for an officeholder, provided that the travel is undertaken
as an
ordinary
and necessary expense of seeking, holding, or maintaining public office, or
seeking,
holding,
or maintaining a position within the legislature or other publicly elected
body. If a
candidate
or officeholder uses campaign funds to pay expenses associated with travel that
involves
both personal activities and campaign or officeholder activities, the
incremental
expenses
that result from the personal activities are personal use, unless the person(s)
benefiting
from
this use reimburse(s) the campaign account within thirty (30) days for the
amount of the
incremental
expenses;
(5) Gifts of nominal value and donations of a nominal amount made on a special
occasion
such as a holiday, graduation, marriage, retirement or death, unless made to a
member
of the
candidate's or officeholder's family;
(6) Meal expenses which are incurred as part of a campaign activity or as apart
of a
function
that is related to the candidate's or officeholder's responsibilities,
including meals
between
and among candidates and/or officeholders that are incurred as an ordinary and
necessary
expense of seeking, holding, or maintaining public office, or seeking holding,
or
maintaining
a position within the legislature or other publicly elected body;
(7) Food and beverages which are purchased as part of a campaign or
officeholder
activity.
(d) Any campaign funds not used to pay for the expenses of gaining or holding public
office
may:
(1) Be maintained in a campaign account(s);
(2) Be donated to a candidate for public office, to a political organization,
or to a
political
action committee, subject to the limitation on contributions in section
17-25-10.1;
(3) Be transferred in whole or in part into a newly established political
action committee
or
ballot question advocate;
(4) Be donated to a tax exempt charitable organization as that term is used in
section
501(c)(3)
of the Internal Revenue Code of 1986, 26 U.S.C. section 501, or any subsequent
corresponding
internal revenue code of the United States as from time to time amended;
(5) Be donated to the state of Rhode Island; or
(6) Be returned to the donor.
17-25-8.1.
Appointment of treasurer by political action committee -- Filings. --
(a)
Each
political action committee shall appoint one campaign treasurer before
receiving any
contribution
or expending any money for the purpose of advocating the election or defeat of
any
candidate
or the approval or rejection of any question.
(b) A campaign treasurer of a political action committee may appoint deputy
campaign
treasurers
as may be required. The committees shall file the names and addresses of the
deputy
campaign
treasurers with the board of elections.
(c) Any political action committee may remove at any time its campaign
treasurer. In the
case of
the death, resignation, or removal of its campaign treasurer, any committee
shall appoint a
successor
as soon as practicable and shall file his or her name and address with the
board of
elections
within ten (10) days.
17-25-10.
Lawful methods of contributing to support of candidates -- Reporting --
Disposition
of anonymous contributions. --
(a) No contribution shall be made or received, and
no
expenditures shall be directly made or incurred, to support or defeat a
candidate or to advocate
the
approval or rejection of any question in any election except through:
(1) The duly appointed campaign treasurer, or deputy campaign treasurers, of
the
candidates;
(2) The duly appointed campaign treasurer or deputy campaign treasurers of a
political
party
committee;
(3) The duly appointed campaign treasurer or deputy campaign treasurer of a
political
action
committee.
(b) It shall be lawful for any person, not otherwise prohibited by law and not
acting in
concert
with any other person or group, to expend personally from that person's own
funds a sum
which is
not to be repaid to him or her for any purpose not prohibited by law to support
or defeat
a
candidate or to advocate the approval or rejection of any question;
provided, that any person
making
the expenditure shall be required to report all of his or her expenditures and expenses,
if
the
total of the money so expended exceeds one hundred dollars ($100) within a
calendar year, to
the
board of elections within seven (7) days of making the expenditure and to the
campaign
treasurer
of the candidate or political party committee on whose behalf the expenditure
or
contribution
was made, or to his or her deputy, within seven (7) days of making the
expenditure,
who
shall cause the expenditures and expenses to be included in his or her reports
to the board of
elections.
Whether a person is "acting in concert with any other person or
group" for the purposes
of this
subsection shall be determined by application of the standards set forth in
section 17-25-
23.
(c) Any anonymous contribution received by a campaign treasurer or deputy
campaign
treasurer
shall not be used or expended, but shall be returned to the donor, if the
donor's identity
can be
ascertained; if not, the contribution shall bescheat to the state.
17-25-10.1.
Political contributions -- Limitations. -- (a) (1) No person, other
than the
candidate
to his or her own campaign, nor any political action committee shall make a
contribution
or contributions to any candidate, as defined by section 17-25-3, or political
action
committee
or political party committee which in the aggregate exceed one thousand dollars
($1,000)
within a calendar year, nor shall any person make contributions to more than
one state or
local
candidate, to more than one political action committee, or to more than one
political party
committee,
or to a combination of state and local candidates and political action
committees and
political
party committees which in the aggregate exceed ten thousand dollars ($10,000)
within a
calendar
year, nor shall any political action committee make such contributions which in
the
aggregate
exceed twenty-five thousand dollars ($25,000) within a calendar year, nor shall
any
candidate
or any political action committee or any political party committee accept a
contribution
or
contributions which in the aggregate exceed one thousand dollars ($1,000)
within a calendar
year
from any one person or political action committee.
(2) Notwithstanding the provisions of subdivision (1) of this subsection, a
person or
political
action committee or political party committee may contribute an amount which in
the
aggregate
does not exceed ten thousand dollars ($10,000) within a calendar year to a
political
party
committee, which funds can be utilized for organizational and party building
activities, but
shall
not be used for contributions to candidates state and local for public office.
(b) Contributions to a named candidate made to any political committee
authorized by
that
candidate to accept contributions on the candidate's behalf shall be considered
to be
contributions
made to the candidate. Contributions to a candidate by a political committee
for
another
person shall be considered to be contributions by that person.
(c) Expenditures made by any person in cooperation, consultation or concert
with, or at
the
request or suggestion of, a candidate, the candidate's authorized political
committees, or their
agents
shall be considered to be a contribution to the candidate.
(d) The financing by any person of the dissemination, distribution, or
republication, in
whole or
in part, of any broadcast or any written, graphic, or other form of campaign
materials
prepared
by the candidate, the candidate's campaign committees, or their authorized
agents shall
be
considered to be a contribution to a candidate.
(e) Nothing in this section shall be construed to restrict political party
committees
organized
pursuant to this title from making contributions to the candidates of that
political party;
provided,
that these contributions, other than allowable "in-kind"
contributions, shall not exceed,
in the
aggregate, twenty-five thousand dollars ($25,000) to any one candidate within a
calendar
year,
nor shall any candidate accept a contribution or contributions, other than
allowable "in-
kind"
contributions, which in the aggregate exceed twenty-five thousand dollars
($25,000) within
a
calendar year from all committees of his or her political party. There shall be
no restriction on
the
amount of "in-kind" contributions that a political party committee
may make to a candidate of
its
political party; provided, that for the purposes of this subsection only, the
cost of any
preparation
and airing of television and/or radio advertisements and the cost of any print
advertisements
shall not be considered an allowable "in-kind" contribution and shall
be subject to
the
aggregate limitation of twenty-five thousand dollars ($25,000).
(f) (1) A contribution from an individual's dependent children, as defined in
section 36-
14-2,
shall be deemed a contribution from the individual for the purpose of
determining whether
aggregate
contributions exceed either the one hundred dollar ($100) threshold for
reporting
purposes
or the one thousand dollar ($1,000) maximum for contributions to a single
candidate or
political
action committee or the ten thousand dollar ($10,000) maximum for contributing
to all
candidates
and political action committees within a calendar year.
(2) No dependent child shall contribute an amount which, when added to contributions
already
made by that child's parent or legal guardian and by other dependent children
of that
parent
or legal guardian, exceed the one thousand dollar ($1,000) maximum for
contributions to a
single
candidate or political action committee or exceed the ten thousand dollar
($10,000)
maximum
for contributions to all state or local candidates and political action
committees within
a
calendar year.
(g) Nothing in this section shall be construed to restrict the amount of money
that a
candidate
can borrow in his or her own name, and subsequently contribute or loan to his
or her
own
campaign.
(h) (1) It shall be unlawful for any corporation, whether profit or non-profit,
domestic
corporation
or foreign corporation, as defined in section 7-1.2-106, or other business
entity to
make any
campaign contribution or expenditure, as defined in section 17-25-3, to or for
any
candidate,
political action committee, or political party committee, or for any candidate,
political
action
committee, or political party committee to accept any campaign contribution or
expenditure
from a corporation or other business entity. Any contribution made in the
personal
name of
any employee of a corporation or other business entity, for which the employee
received
or will
receive reimbursement from the corporation or other business entity, shall be
considered
as a
contribution by the corporation or other business entity, in violation of this
section.
(2) Any voluntary payroll deduction and/or contribution made by employees of a
corporation
or other business entity shall not be deemed a contribution of a corporation or
other
business
entity, notwithstanding that the contributions were sent to the recipient by
the
corporation
or other business entity.
(i) All contributions of funds shall be by check, money order, or credit card
and may be
made
over the Internet, but in each case the source of the funds must be identified;
provided, that
candidates
may accept contributions in cash which do not exceed twenty-five dollars
($25.00) in
the
aggregate from an individual within a calendar year. The cash contribution must
be delivered
directly
by the donor to the candidate, his or her campaign treasurer, or deputy
treasurer. The
treasurer
or deputy treasurer shall maintain a record of the name and address of all
persons
making
these cash contributions.
(j) Except as provided in subsection (h) of this section, no entity other than
an individual,
a
political action committee which is duly registered and qualified pursuant to
the terms of this
chapter,
political party committee authorized by this title, or an authorized committee
of an
elected
official or candidate established pursuant to this chapter shall make any
contribution to or
any
expenditure on behalf of or in opposition to any candidate, ballot question,
political action
committee,
or political party.
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 section
17-25-3(2), except
when the
ninety (90) day reporting period ends less than forty (40) days prior to an
election, in
which
case the ninety (90) day 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
or question, 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 or question:
(1) At ninety (90) day intervals commencing on the date on which the individual
first
becomes
a candidate, as defined in section 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
of the
primary election occurs prior to the first day for filing declarations of
candidacy pursuant to
section
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; and 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
which have been made for the discharge of any obligations remaining unpaid at
the
time of
dissolution.
(c) Once the campaign treasurer certifies that the campaign fund has completed
its
business
and been dissolved, no contribution which is intended to defray expenditures
incurred on
behalf
of or in opposition to a candidate or to advocate the approval or rejection
of any question
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 (90) day
intervals
commencing with the next quarterly report following the election; however, the
time to
file
under this subsection shall be no later than thirty (30) days following the
ninety (90) day
period,
except when the thirty (30) days filing deadline following the ninety (90) day
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.
(d) (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 or question if the total
amount to be expended
in
behalf of the candidacy or question 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), 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 the aggregate amount expended on behalf of
the
candidacy
does not exceed one thousand dollars ($1,000) and no contribution from any one
source
within a calendar year exceeds one hundred dollars ($100), the report shall
state the
aggregate
amount of all 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 nor
make
aggregate expenditures in excess of the minimum amounts for which a report is
required by
this
chapter. 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 (90) day intervals provided for in
subsection (c) of
this
section for any ninety (90) day 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 thirty (30) days following the
ninety (90) day
period,
except when the thirty (30) days filing deadline following the ninety (90) day
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.
(g) (1) The board of elections may, for good cause shown and upon the receipt
of a
written
or electronic request, grant a seven (7) day 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 required to file reports with the board of elections
pursuant to
this
section and who 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).
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 fails to file the reports required by this section. A
person or entity who is
sent a
notice of non-compliance and fails to file the required report within seven (7)
days of the
receipt
of the notice shall be fined two dollars ($2.00) per day from the day of
receipt of the
notice
of non-compliance until the day the report has been received by the state
board.
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.
17-25-12.
Prohibited contributions. -- No contributions shall be made, and no
expenditure
shall be made or incurred, whether anonymously, in a fictitious name, or by one
person
or group in the name of another, to support or defeat a candidate in a primary,
general, or
special
election or to advocate the approval or rejection of any question. No
treasurer or candidate
shall
solicit or knowingly accept any contribution contrary to the provisions of this
section.
17-25-15.
Political action committee -- Notice of formation. -- (a) No political
action
committee
shall accept any contributions or make any expenditures prior to filing notice
of its
organization
with the board of elections. The notice shall contain:
(1) The name or names of any candidates whose election or defeat the committee
intends
to
advocate and/or the question or questions whose approval or rejection the
committee intends to
advocate;
(2) The names and addresses of all officers of the committee;
(3) The mailing address or addresses of the committee;
(4) The goals and purposes of the political action committee; and
(5) A statement indicating whether the membership and/or contributor base of
the
political
action committee is derived primarily from the employees of one corporation or
business
entity
or from one business or professional group or association or labor union and,
if so, the
identity
of that employer or group or association or union.
(b) No committee shall advocate the election or defeat of any candidate or
question other
than
that set forth in its notice of organization or amendment to the notice. A
political action
committee
may amend its notice of organization at any time. The board of elections shall
prescribe
forms in compliance with this section.
(c) In addition to all other reporting requirements, each political action
committee shall
include
in each report required to be filed by this chapter:
(1) The source and amount of all funds received by the committee in excess of
one
hundred
dollars ($100) in the aggregate from a single source in a calendar year;
provided, that
funds
received through a regular payroll check-off plan in which the aggregate
contribution from
each
individual does not exceed one hundred dollars ($100) per calendar year shall
report the
name and
address of each entity transferring the funds to the committee, the aggregate
amount
received
from the payroll check-off, and the total number of contributors; and provided
also, that
funds
received by the political action committee of a labor organization from the
members of the
labor
organization in amounts not exceeding twenty-five dollars ($25.00) per calendar
year from
a single
source shall be reported by the aggregate amount received and the total number
of
members
of the labor organization contributing;
(2) The name and address of each person to whom expenditures were made, and the
amount
and purpose of each expenditure; and
(3) The name and address of each elected official and candidate for elected
office to
whom a
contribution was made, and the amount of the contribution.
(d) The board of elections may reject the use by a political action committee
of a name
which is
misleading and/or does not accurately identify the membership or contributor
base of the
committee.
(e) If a political action committee derives more than fifty percent (50%) of
its funds from
the employees,
officers, directors, investors, and/or stockholders of a corporation or other
business
entity, the name of the political action committee must incorporate the name of
that
corporation
or business entity. If a political action committee derives more than fifty
percent
(50%) of
its funds from persons affiliated with one industry, profession, trade
organization, or
association
or labor union, the name of the political action committee must identify that
industry,
profession,
trade organization or association, or labor union.
(f) Notwithstanding any provision to the contrary, a political action
committee organized
exclusively
for the purpose of promoting or opposing a ballot question may bexpend in
excess of
twenty-five
thousand dollars ($25,000) to promote or oppose that referendum, and shall not
be
subject
to the requirement of making contributions to at least five (5) candidates; and
the political
action
committee shall terminate all activity within thirty (30) days following that
election.
SECTION
2. Title 17 of the General Laws entitled "Elections" is hereby
amended by
adding
thereto the following chapter:
CHAPTER 25.2
BALLOT QUESTION ADVOCACY AND REPORTING
17-25.2-1.
Short title. -- This chapter shall be known and may be cited as the
"Rhode
Island
Ballot Question Advocacy and Reporting Act".
17-25.2-2.
Declaration of policy -- It is declared to be in the public interest
and to be the
policy
of the state to foster greater participation in ballot question advocacy in a
transparent and
open
manner and to provide the public with sufficient information regarding the
source of
contributions
received and expenditures made for ballot question advocacy.
17-25.2-3.
Definitions. -- As used in this chapter, unless a different meaning
clearly
appears
from the context:
(1)
"Ballot question" means any question, charter change, constitutional
amendment,
referendum
or voter initiated petition placed on any state, district, city, town or
municipal ballot
for a
general or special election.
(2)
"Ballot question advocacy" means advocating the passage or defeat of
a ballot
question.
(3)
"Ballot question advocate" means any person making an expenditure
with a
cumulative
total that exceeds one thousand dollars ($1,000) in a calendar year for
ballot-question
advocacy
on a particular ballot question.
(4)
"Contributions" means donations to a ballot-question advocate in the
form of money,
gifts,
loans, paid personal services, or in-kind contributions as defined herein.
(5)
"In-Kind Contributions" means the monetary value of other things of
value or paid
personal
services donated to any person required to file reports with the board of
elections, except
for
newsletters and other communications paid for and transmitted by an
organization to its own
members
and not to the general public;
(6)
"Paid personal services" means personal services of every kind and
nature, the cost or
consideration
for which is paid or provided by someone other than the ballot-question
advocate
for
whom the services are rendered, but shall not include personal services
provided without
compensation
by persons volunteering their time.
(7)
"Expenditures" means the payment for any goods and services for the
purpose of
ballot-question
advocacy as set forth in this paragraph:
(i)
any media advertising services or products, including, but not limited to,
newspapers,
radio
stations or television stations;
(ii)
general advertising in letters, brochures, flyers, handbills, lawn signs,
posters, bumper
stickers,
buttons or other materials except for newsletters and other communications paid
for and
transmitted
by an organization to its own members and not to the general public; or
(iii)
paid personal services donated to any ballot-question advocate including
advertising
agency
services or other professional services including accounting services,
printing, secretarial
services,
public opinion polls, research and professional campaign consultation or
management,
media
production or computer services. A written contract, agreement or promise to
make an
expenditure,
is an expenditure as of the date such contract expenditure or obligation is
made.
(8)
"Person" means any individual, partnership, committee, association,
corporation, city,
town,
or other governmental unit and any other organization.
(9)
"Election cycle" means the twenty-four (24) month period commencing
on January 1
of
odd number years and ending on December 31 of even number years.
17-25.2-4.
No limitations on contributions or expenditures. -- Nothing
contained in
this
chapter shall be construed to limit the amount of monies contributed to or
expended by a
ballot-question
advocate for the purpose of ballot-question advocacy.
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 member 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 act.
(b)
The first report must be filed by a ballot-question advocate for the period
beginning
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 section 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).
(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) 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.
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.
17-25.2-6.
Monies not expended on ballot measure. -- (a) At the time of the
filing of
the
final report required by subsection 17-25.2-5(c), any contributions received
for ballot question
advocacy
and remaining with a ballot question advocate that exceed one thousand dollars
($1,000)
and have not been expended shall be disbursed in one or more of the following
four (4)
manners:
(1)
Transferal in whole or in part into another ballot question advocate account
which has
a
purpose related to or consistent with that of the donating ballot question
advocate;
(2)
Donations to or retention by a nonprofit organization recognized under section
501(c)
of
the Internal Revenue Code of 1986, 26 U.S.C. section 501, or any subsequent
corresponding
internal
revenue code of the United States as from time to time amended;
(3)
Donations to the state of Rhode Island; or
(4)
Refund to the donor.
(b)
The ballot question advocate must annually report to the board of elections by
June 30
of
the calendar year any such remaining contributions and shall report
distributions of any such
remaining
contributions within thirty (30) days of such distributions.
17-25.2-7.
Disclosure of true origin of contributions required. -- (a) No
person shall
make a
contribution to a ballot-question advocate for the purpose of ballot-question
advocacy in
any
name except its own or in any manner for the purpose of disguising the true
origin of the
contribution.
(b)
No person shall form or use a corporation or other legal entity to advocate for
the
approval
or defeat of a ballot question with the intent to:
(1)
disguise the true origin of the funds; or
(2)
evade the reporting requirements of this act.
17-25.2-8.
Duties and powers of the board of elections. -- The board of
elections is
authorized
to perform any duties that are necessary to implement the provisions of this
chapter.
Without
limiting the generality of this provision, the board of elections is authorized
and
empowered
to undertake all actions set forth in section 17-25-5.
17-25.2-9.
Penalties for violation. -- (a) Whenever the board of elections has
reason to
believe
that a ballot-question advocate willfully and knowingly made a false statement
in any
report
required under this chapter or failed to file any report, or has otherwise
violated this
chapter,
the board of elections 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 signing any such report and/or organization to enjoin them from
continuing the
violation,
or doing any acts in furtherance of the violation, and for any other relief the
court
deems
appropriate. In addition, the court may order the forfeiture of any and all
contributions not
reported
in violation of this chapter.
(b)
The court may also impose a civil penalty for any violation of this act up to
but not
exceeding
three (3) times the amount of:
(1)
Contributions and/or expenditures made or accepted in violation of this
chapter;
and/or
(2)
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
by
the state for public information and education regarding the election process.
17-25.2-10.
Severability. -- If any provision of this chapter or the application
thereof
shall
for any reason be judged invalid, that judgment shall not affect, impair or
invalidate the
remainder
of the law, but shall be confined in its effect to the provisions or
application directly
involved
in the controversy giving rise to the judgment.
SECTION
3. Sections 17-25.1-1, 17-25.1-2, 17-25.1-3, 17-25.1-4, 17-25.1-5 and 17-
25.1-6
of the General Laws in Chapter 17-25.1 entitled "Gambling Referenda"
are hereby
repealed.
17-25.1-1.
Registration of political action committees -- Limits on financial
contributions.
-- (a) Any "political
action committee", as defined in chapter 25 of title 17,
advocating
the approval or rejection of any gambling questions shall, in addition to the
requirements
of chapter 25 of title 17, register with the secretary of state by submitting
upon the
appropriate
form its name, and the names and addresses of the chairperson and its treasurer
who
shall
be eligible voters in the referendum election in question. A "gambling
question" is defined
as
any referendum that relates to a proposal to institute gambling in any form.
(b) No individual, partnership, committee, association, corporation, or any
other
organization
shall contribute to any political action committee in excess of one thousand
dollars
($1,000)
in aggregate for advocating the approval or rejection of any gambling question.
17-25.1-2.
Penalties for violation. -- Any person who willfully and
knowingly violates
the
provisions of this chapter shall, upon conviction, be guilty of a felony and shall
be imprisoned
for a
term not exceeding two (2) years, or fined not more than five thousand dollars
($5,000), or
both.
17-25.1-3.
Registration of advocates. -- (a) Every "person," as
defined in chapter 25 of
this
title, advocating the approval or rejection of any gambling question, shall, in
addition to any
applicable
requirement of chapter 25 and 25.1 of this title, register with the secretary
of state and
the
board of elections by submitting upon the appropriate form its name, and the name
and
address
of each member of its board or directors, partner(s), or officer(s), or, if an
individual,
such
individual's name and address as well as any person providing funding of five
hundred
dollars
($500) or more to the organization. A "gambling question" is defined
as any referendum
that
relates to a proposal to institute a casino within the state or to otherwise
expand gambling in
any
form.
(b) Before making an expenditure to advocate the approval or rejection of any
gambling
question,
a person must register with the secretary of state and the board of elections
and file a
registration
statement.
(c) A registration statement must contain the following information:
(1) The name and address of the person or entity.
(2) The name and address of the designated treasurer and deputy treasurer, if a
deputy
treasurer
is appointed.
(3) The name, address and title of all other principle officers, directors,
partners of the
entity
or committee.
(4) The name and address of a depository institution in the state of Rhode
Island in
which
a single checking account has been established for the funds of the person or
entity.
(5) The name and address of any person or entity providing five hundred dollars
($500)
or more,
directly or indirectly, to a person or entity registering and reporting
pursuant to this
section.
(6) Whether or not the person or entity has any direct or indirect affiliation
with any
entity
or person that operates or owns any type or kind of gambling facility or entity
in any
jurisdiction
within or outside of the state and, if so, the name of such facility or entity.
(d) Every "person" as defined in chapter 25 of this title, shall
supplement its registration
form
if there is a change in the name or address of any member of its board of
directors, partners
or
officers, or if there is a change in an individual's name or address. Failure
to notify the board of
elections
of changes may be considered by the board of elections in assessing civil
penalties for
late
or incomplete reports filed by any person or entity.
17-25.1-4.
Reports. -- Every "person" as defined in chapter 25 of
this title, spending a
cumulative
total of five hundred dollars ($500) or more for the purpose of advocating the
approval
or rejection of any gambling question, shall report each such expenditure to
the board of
elections
on a form prescribed by the board of elections not later than ten (10) days
after each
expenditure
is made. The report must include the name, address, principal occupation,
employer
of
the person filing the report, the name and address of the person or entity
receiving the
expenditure,
the amount of each expenditure, and the total amount of expenditures made, at
that
date,
by that person or entity during the calendar year. "Expenditures"
shall include the furnishing
of or
payment for any media advertising services or products, including, but not
limited to,
newspapers,
radio stations, television stations or electronic mail, general advertising, in
brochures,
pamphlets and the like, advertising agency services, accounting services,
billboards,
printing,
secretarial services, public opinion polls, or research and professional
campaign
consultation
or management, media production, or computer services, which advocate a
position
on a
gambling question.
17-25.1-5.
Disclosure of advertising activities. -- Every
"person" as defined in chapter
25 of
this title, who makes an expenditure for a mass mailing, for distribution of
campaign
literature
of any sort, for a television, radio, newspaper, or magazine advertisement, or
any other
communication
that advocates the approval or rejection of any gambling question shall:
(1) Comply with section 17-25.1-4; and
(2) Place the following statement in the mailing, literature, advertisement or
other
communication
so that it is readily and easily discernible:
"This NOTICE TO VOTERS is required by Rhode Island law. (I/we) certify
that this
(mailing/literature/advertisement)
is paid for and approved by (name of person)."
17-25.1-6.
Severability. -- If any provision of this chapter or the
application thereof shall
for
any reason be judged invalid, that judgment shall not affect, impair, or
invalidate the
remainder
of the law, but shall be confined in its effect to the provision or application
directly
involved
in the controversy giving rise to the judgment.
SECTION
4. Chapter 17-25.1 of the General Laws entitled "Gambling Referenda"
is
hereby
amended by adding thereto the following section:
17-25.1-1.1.
Gambling referenda -- Ballot question advocates. – Any "ballot
question
advocate",
as defined in chapter 25.2 of title 17, advocating the passage or defeat of any
gambling
question
shall, in addition to complying with and being subject to the provisions of
chapter 25.2
of
title 17, include in its reports filed under said chapter the following: (i)
the name, address and,
if
applicable, the place of employment of every person making a contribution or
contributions
that
in the aggregate exceed one thousand eight hundred dollars ($1,800) per
election cycle to
such
ballot question advocate; and (ii) whether or not such contributor has any
direct or indirect
affiliation
with any entity or person that operates or owns any type or kind of gambling
facility or
entity
in any jurisdiction and, if so, the name of such facility or entity.
"Gambling question"
means
any referendum that relates to a proposal to institute a casino within the
state or to
otherwise
expand gambling in any form.
SECTION
5. This act shall take effect upon passage.
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LC01752/SUB A/2
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