Chapter 446
2012 -- H 7859 SUBSTITUTE B
Enacted 06/26/12
A N A C T
RELATING TO ELECTIONS
-- DISCLOSURE OF POLITICAL CONTRIBUTIONS AND EXPENDITURES
Introduced By: Representatives Blazejewski, Fox, Ajello, Marcello, and Edwards
Date Introduced: February 28, 2012
It is enacted by the
General Assembly as follows:
SECTION 1. The legislature hereby finds and declares as
follows:
(1)
The amount of money spent in elections by persons, business entities or
political
action committees that are not coordinated with a candidate
or political party is playing a greater
role in elections.
(2)
The Supreme Court’s decision in Citizens United v. FEC has accelerated these
trends
by allowing unlimited political spending by outside
groups via independent expenditures. This
spending is often extremely difficult or impossible to trace,
being funneled through “shadow
groups” that are able to avoid many current campaign finance
disclosure regulations.
(3)
The legislature finds it to be in the public and governmental interest to
revise Rhode
Island’s campaign finance
disclaimer and disclosure laws to keep pace with the aforementioned
developments and to protect and enhance core democratic values and
maintain the integrity of
elections.
(i) The source of political spending is vital information
for voters, allowing them to make
knowledgeable decisions at election time. Disclosure allows voters
to properly weigh speakers
and messages based on their affiliations and other
contexts, such as whether the speaker stands to
personally benefit from their advocated positions.
(ii)
The United States Supreme Court has repeatedly upheld disclaimer and disclosure
provisions as constitutionally protected methods of improving
the integrity of electoral processes
without unnecessarily restricting First Amendment free speech
rights. The Court has noted that
these requirements “impose no ceiling on campaign related
activities” (Buckley v. Valeo) and “do
not prevent anyone from speaking” (McConnell v. FEC).
Whatever level of burden disclaimer
and disclosure do place on the ability to speak is
justified by a valid government interest in
providing the electorate with information.
(iii)
New communications technologies greatly increase the value and potential for
disclosure by making disclosed information easily available to
the average citizen. This potential
should be embraced by encouraging electronic filing of
campaign finance reports as much as is
practicable and making this information as accessible as
possible. New media and technological
platforms also bring with them a risk of circumvention of
existing regulation by funneling money
through mediums unaddressed by extant law. Extension of
disclaimer laws to new media will
ensure that the interests bolstered by disclosure and
disclaimer remain well supported.
(iv) By bringing political spending out into the light,
stronger, modernized disclaimer and
disclosure rules can serve as a powerful check on actual
government corruption as well as reduce
the perception of corruption. Armed with information
about political spending, citizens can better
detect improper political favors and then use this knowledge
to hold those politicians accountable
at the ballot box. By preventing the flooding of
elections with untraceable money, these rules will
leave the public with less reason to perceive “bought
elections” in which the outcome is
determined by outside or even out-of-state groups. Thus,
improved disclosure and disclaimer laws
can help restore citizen trust in government.
(v)
Disclaimer and disclosure can also further the rights and interests of
shareholders and
group members. In both cases, an organization acts in a
role representing its constituents’
interests, including in its political actions. However, if
information on a group’s spending is not
disclosed to members and shareholders, their interests are
compromised as they may support or
oppose certain political spending but not be made aware of
the spending being done in their
names.
(vi)
At present, spending between the final pre-election filing date and election day is
hidden from public view until after the election is over.
This deprives voters of knowledge when
it would be most relevant to their decision-making and
reduces disclosure’s effectiveness in
promoting accountability in the political process.
(vii)
Stronger disclosure rules can also assist in the gathering of information
necessary to
avoid circumvention of other existing rules. Existing law,
such as bans on campaign contributions
by foreign nationals and contribution limits, rely on
the type of transparency in political spending
that these regulations would create.
SECTION
2. Section 17-25-3 of the General Laws in Chapter 17-25 entitled
"Rhode
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
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. The term “business entity” shall not
include any exempt nonprofit as defined herein
or any organization described in section 501(c)(3) of
the Internal Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the
time, for the purposes of chapter 17-25.3 of the general
laws only.
(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, credit or debit
card transactions on-line or electronic payment systems
such as "pay pal," 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.
(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).
(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.
(9) "Person"
means an individual, partnership, committee, association, corporation,
union, charity
and/or any other organization. The term “person” shall not include
any exempt
nonprofit as defined herein or any organization described in section
501(c)(3) of the Internal
Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United
States, as amended from time to time, for the purposes
of chapter 17-25.3 of the general laws
only.
(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. 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.
(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.
(12) "State"
means state of
(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.
(14)
"Electioneering communication" means any print, broadcast, cable,
satellite, or
electronic media communication not coordinated, as set forth in
section 17-25-23, with any
candidate, authorized candidate campaign committee, or
political party committee and which
unambiguously identifies a candidate or referendum and is made
either within sixty (60) days
before a general or special election or town meeting for the
office sought by the candidate or
referendum; or thirty (30) days before a primary election, for the
office sought by the candidate;
and is targeted to the relevant electorate.
(i)
A communication which refers to a clearly identified candidate or referendum is
"targeted to the
relevant electorate" if the communication can be received by two thousand
(2,000) or more persons in the district the candidate
seeks to represent or the constituency voting
on the referendum.
(ii) Exceptions: The
term "electioneering communication" does not include:
(A) A communication
appearing in a news story, commentary, or editorial distributed
through the facilities of any broadcasting station, unless
such facilities are owned or controlled by
any political party, political committee, or candidate;
(B) A communication
which constitutes a candidate debate or forum conducted pursuant
to regulations adopted by the board of elections or
which solely promotes such a debate or forum
and is made by or on behalf of the person sponsoring the
debate or forum; or
(C) A communication
made by any business entity to its members, owners, stockholders,
or employees;
(D) A communication
over the Internet, except for (I) Communications placed for a fee
on the website of another person, business entity, or
political action committee; and (II) Websites
formed primarily for the purpose, or whose primary purpose
is, to expressly advocate the election
or defeat of a clearly identified candidate or the
passage or defeat of a referendum; or
(E) Any other communication
exempted under such regulations as the board of elections
may promulgate (consistent with the requirements of this
paragraph) to ensure the appropriate
implementation of this paragraph.
(15)
"Independent expenditure" means an expenditure which, when taken as a
whole,
expressly advocates the election or defeat of a clearly
identified candidate, or the passage or
defeat of a referendum, or amounts to the functional
equivalent of such express advocacy, and is
in no way coordinated, as set forth in section 17-25-23,
with any candidate’s campaign,
authorized candidate committee, or political party committee. An
expenditure amounts to the
functional equivalent of express advocacy if it can only be
interpreted by a reasonable person as
advocating the election, passage, or defeat of a candidate or
referendum, taking into account
whether the communication mentions a candidate or referendum
and takes a position on a
candidate’s character, qualifications, or fitness for office. An
independent expenditure is not a
contribution to that candidate or committee.
(i)
Exceptions: The term "independent expenditure" does not include:
(A) A communication
appearing in a news story, commentary, or editorial distributed
through the facilities of any broadcasting station, unless
such facilities are owned or controlled by
any political party, political committee, or candidate;
(B) A communication
which constitutes a candidate debate or forum conducted pursuant
to regulations adopted by the board of elections or
which solely promotes such a debate or forum
and is made by or on behalf of the person sponsoring the
debate or forum;
(C) A communication
made by any business entity to its members, owners, stockholders,
or employees;
(D) A communication
over the Internet, except for (I) Communications placed for a fee
on the website of another person, business entity, or
political action committee; and (II) Websites
formed primarily for the purpose, or whose primary purpose
is, to expressly advocate the
election or defeat of a clearly identified candidate or the
passage or defeat of a referendum; or
(E) Any other
communication exempted under such regulations as the board of elections
may promulgate (consistent with the requirements of this
paragraph) to ensure the appropriate
implementation of this paragraph.
(16) “Covered
transfer” means any transfer or payment of funds by any person, business
entity or political action committee to another person, business
entity, or political action
committee if the person, business entity, or political action
committee making the transfer: (i)
Designates, requests, or suggests that the amounts be
used for independent expenditures or
electioneering communications or making a transfer to another person
for the purpose of making
or paying for such independent expenditures or
electioneering communications; (ii) Made such
transfer or payment in response to a solicitation or other
request for a transfer or payment for the
making of or paying for independent expenditures or
electioneering communications or making a
transfer to another person for the purpose of marking or
paying for such independent expenditures
or electioneering communications; (iii) Engaged in discussions
with the recipient of the transfer
or payment regarding independent expenditures or
electioneering communications or making a
transfer to another person for the purpose of marking or
paying for such independent expenditures
or electioneering communications; or (iv) Made
independent expenditures or electioneering
communications in an aggregate amount of five thousand dollars ($5,000)
or more during the
two (2) year period ending on the date of the transfer or
payment, or knew or had reason to know
that the person receiving the transfer or payment made
such independent expenditures or
electioneering communications in such an aggregate
amount during that two (2) year period.
(A) Exceptions: The
term "covered transfer" does not include:
(I) A transfer or
payment made by a person, business entity or political action committee
in the ordinary course of any trade or business
conducted by the person, business entity or
political action committee or in the form of investments made
by the person, business entity or
political action committee; or
(II) A transfer or
payment made by a person, business entity or political action committee
if the person, business entity or political action
committee making the transfer prohibited, in
writing, the use of such transfer or payment for independent
expenditures, electioneering
communications, or covered transfers and the recipient of the
transfer or payment agreed to
follow the prohibition and deposited the transfer or payment
in an account which is segregated
from any account used to make independent expenditures,
electioneering communications, or
covered transfers.
(17) For the purposes
of chapter 17-25.3 of the general laws, “donation” means all
transfers of money, credit or debit card transactions on-line
or electronic payment systems such as
"pay pal," paid
personal services, or other thing of value to or by any person, business
entity, or
political action committee. A loan shall be considered a
donation of money until it is repaid.
(18) For the purposes
of chapter 17-25.3 of the general laws, “donor” means a person,
business entity, or political action committee that makes a
donation.
(19)
"Exempt nonprofit" means any organization described in section 501(c)(4) of the
Internal Revenue Code that
spends an aggregate annual amount of no more than ten percent
(10%) of its annual
expenses or no more than fifteen thousand dollars ($15,000), whichever is
less, on independent expenditures, electioneering
communications, and covered transfers as
defined herein and certifies the same to the board of
elections seven (7) days before and after a
primary election and seven (7) days before and after a
general or special election.
(20)
For purposes of chapter 17-25.3 of the general laws, "referendum"
means the same
as the definition set forth in section 17-5-1 of the
general laws.
SECTION 3. Title 17 of the General Laws entitled
"ELECTIONS" is hereby amended by
adding thereto the following chapter:
CHAPTER
25.3
INDEPENDENT
EXPENDITURES AND ELECTIONEERING COMMUNICATIONS
17-25.3-1.
Independent expenditures and electioneering communications for
elections. – (a)
It shall be lawful for any person, business entity or political action
committee, not
otherwise prohibited by law and not acting in coordination with
a candidate, authorized candidate
campaign committee, political action committee, or political
party committee, 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 referendum. Whether a person,
business entity or political action committee is "acting
in coordination with a candidate,
authorized candidate campaign committee, political action
committee or political party
committee" for the purposes of this subsection shall be
determined by application of the standards
set forth in section 17-25-23. All terms used in this
chapter shall have the same meaning as
defined in section 17-25-3.
(b) Any person,
business entity or political action committee making independent
expenditures, electioneering communications, or covered transfers
shall report all such campaign
finance expenditures and expenses to the board of elections,
provided the total of the money so
expended exceeds one thousand dollars ($1000) within a
calendar year, to the board of elections
within seven (7) days of making the expenditure.
(c) A person,
business entity or political action committee who
makes or contracts to
make independent expenditures, electioneering
communications, or covered transfers with an
aggregate value of one thousand dollars ($1,000) or more shall
electronically file a campaign
finance report to the board of elections describing the
expenditures.
(d) After a person,
business entity or political action committee files a report under
subsection (b), the person, business entity or political action
committee shall file an additional
report after each time the person, business entity or
political action committee makes or contracts
to make independent expenditures, electioneering
communications, or covered transfers
aggregating an additional one thousand dollars ($1,000) with
respect to the same election as that
to which the initial report relates.
(e) When a report is
required by subsection (c) or (d) of this section within thirty (30)
days prior to the election to which the expenditure was
directed, it shall be filed with twenty-four
(24) hours of the
expenditure. When such a report is required at any other time, it shall be
filed
within seven (7) days after the expenditure.
(f) Reports of
independent expenditures, electioneering communications, or covered
transfers by a person shall contain the name, street address,
city, state, zip code, occupation,
employer (if self-employed, the name and place of business),
of the person responsible for the
expenditure, the name, street address, city, state, and zip code
of the person receiving the
expenditure the date and amount of each expenditure, and the year
to date total.
(g) The report shall
also include a statement identifying the candidate or referendum that
the independent expenditure or electioneering
communication is intended to promote the success
or defeat, and affirm under penalty of false statement
that the expenditure is not coordinated with
the campaign in question, and provide any information
that the board of elections requires to
facilitate compliance with the provisions of this chapter.
(h) Reports of
independent expenditures, electioneering communications, or covered
transfers by a person, business entity or political action
committee shall also disclose the identity
of all donors of an aggregate of one thousand dollars
($1000) or more to such person, business
entity or committee within the current election cycle, if
applicable, unless the person, business
entity or political action committee has established a
separate campaign-related account for
independent expenditures, electioneering communications, and
covered transfers as detailed in
section 17-25.3-2 in which case this paragraph applies only
to donors to the person’s, business
entity’s or political action committee’s separate
campaign-related account; provided that no
person, business entity, or political action committee shall
be required to disclose in a report to
the board of elections the identity, which includes name,
address, place of employment, and
donation amount, of any donor who makes no donation to such
person, business entity, or
political action committee after the date of enactment of this
section.
(i)
If a person, business entity or political action committee and a donor mutually
agree,
at the time a donation, payment, or transfer to the
person, business entity or political action
committee which is required to disclose the identification
under subsection (f) that the person,
business entity or political action committee will not use the
donation, payment, or transfer for
independent expenditures, electioneering communications, or
covered transfers, then not later
than thirty (30) days after the person, business entity or
political action committee receives the
donation, payment, or transfer the person, business entity or
political action committee shall
transmit to the donor a written certification by the chief financial
officer of the person, business
entity or political action committee (or, if the
organization does not have a chief financial officer,
the highest ranking financial official of the
organization) that:
(1) The person,
business entity or political action committee will not use the donation,
payment, or transfer for independent expenditures,
electioneering communications, or covered
transfers; and
(2) The person,
business entity or political action committee will not include any
information on the donor in any report filed by the person,
business entity or political action
committee under this section with respect to independent
expenditures, electioneering
communications, or covered transfers, so that the donor will not be
required to appear in the list
of donors.
(3) Exception for
payments made pursuant to commercial activities. Subsections (e) and
(f) do not apply with respect
to any payment or transfer made pursuant to commercial activities in
the regular course of a person’s, business entity’s or
political action committee’s business.
(j) For the purposes
of this chapter, two (2) or more entities (other than an exempt
nonprofit as defined in section 17-25-3 or an organization
described in section 501(c)(3) of the
Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the
United States, as amended from time to time) are
treated as a single entity if the entities:
(1) Share the
majority of members on their boards of directors;
(2) Share two (2) or
more officers;
(3) A candidate
committee and a political committee other than a candidate committee
are for the purposes of this section treated as a single
committee if the committees both have the
candidate or a member of the candidate’s immediate family as an
officer;
(4) Are owned or
controlled by the same majority shareholder or shareholders or persons;
(5) Are in a
parent-subsidiary relationship; or
(6) Have bylaws so
stating.
17-25.3-2.
Optional use of separate campaign-related account by person, business
entity or political action committee for independent
expenditures, electioneering
communications, and covered transfers. – (a)(1) Establishment of
account: (i) A person,
business entity or political action committee may make
disbursements for independent
expenditures, electioneering communications, or covered transfers
using amounts from a bank
account established and controlled by the person, business
entity or political action committee to
be known as the separate campaign-related account
(hereafter in this section referred to as the
“account”), which shall be
maintained separately from all other accounts of the person, business
entity or political action committee and which shall consist
exclusively of funds that were paid
directly to such account by one or more person, business
entity, or political action committee
other than the person, business entity, or political action
committee that controls the account. A
person, business entity, or political action committee shall
not make transfers from its general
treasury into an account established under this section that
such person, business entity, or
political action committee controls.
(ii) Mandatory use of
account after establishment. If a person, business entity or political
action committee establishes an account under this section,
it may not make disbursements for
independent expenditures, electioneering communications, or
covered transfers from any source
other than amounts from the account.
(iii) Exclusive use
of account for independent expenditures, electioneering
communications, and covered transfers. Amounts in the account shall
be used exclusively for
disbursements by the person, business entity or political action
committee for independent
expenditures, electioneering communications, or covered transfers.
After such disbursements are
made, information with respect to deposits made to the
account shall be disclosed in accordance
with subsection 17-25.3-1(f).
17-25.3-3.
Disclaimers. – (a) No person, business entity
or political action committee
shall make or incur an independent expenditure or fund an
electioneering communication for any
written, typed, or other printed communication, unless such
communication bears upon its face
the words "Paid for by" and the name of the
entity, the name of its chief executive officer or
equivalent, and its principal business address. In the case of a
person, business entity or political
action committee making or incurring such an independent
expenditure or electioneering
communication, which entity is a tax-exempt organization under
Section 501(c) of the Internal
Revenue Code of 1986 (other than an organization
described in section 501(c)(3) of such Code)
or an exempt nonprofit as defined in section 17-25-3, or
any subsequent corresponding internal
revenue code of the
under Section 527 of said code, such communication shall
also bear upon its face the words "Top
Five Donors" followed by a list of the five (5)
persons or entities making the largest aggregate
donations to such person, business entity or political action
committee during the twelve (12)
month period before the date of such communication,
provided that no donor shall be listed who
is not required to be disclosed in a report to the board
of elections by the person, business entity,
or political action committee.
(b) The provisions of
subsections (a) of this section shall not apply to:
(1) Any editorial,
news story, or commentary published in any newspaper, magazine or
journal on its own behalf and upon its own responsibility and
for which it does not charge or
receive any compensation whatsoever;
(2) Political
paraphernalia including pins, buttons, badges, emblems, hats, bumper
stickers or other similar materials; or
(3) Signs or banners
with a surface area of not more than thirty-two (32) square feet.
(c) No person, business
entity or political action committee shall make or incur an
independent expenditure or fund an electioneering communication
for paid television advertising
or paid Internet video advertising, unless at the end of
such advertising there appears
simultaneously, for a period of not less than four (4) seconds:
(1) A clearly
identifiable video, photographic or similar image of the entity's chief
executive officer or equivalent; and
(2) A personal audio
message, in the following form: "I am …. (name of
entity's chief
executive officer or equivalent), …. (title)
of …. (entity), and I approved its content."
(3) In the case of a
person, business entity or political action committee making or
incurring such an independent expenditure or electioneering
communication, which person,
business entity or political action committee is a tax-exempt
organization under Section 501(c) of
the Internal Revenue Code of 1986 (other than an
organization described in section 501(c)(3) of
such Code) or an exempt nonprofit as defined in section
17-25-3, or any subsequent
corresponding internal revenue code of the
organization organized under Section 527 of said code, such
advertising shall also include a
written message in the following form: "The top five (5)
donors to the organization responsible
for this advertisement are" followed by a list of
the five (5) persons or entities making the largest
aggregate donations during the twelve (12) month period before
the date of such advertisement,
provided that no donor shall be listed who is not required to
be disclosed in a report to the board
of elections by the person, business entity, or
political action committee.
(d) No person,
business entity or political action committee shall make or incur an
independent expenditure or fund an electioneering communication
for paid radio advertising or
paid Internet audio advertising, unless the advertising
ends with a personal audio statement by the
entity's chief executive officer or equivalent;
(1) Identifying the
entity paying for the expenditure; and
(2) A personal audio
message, in the following form: "I am …. (name of
entity's chief
executive officer or equivalent), …. (title),
of …. (entity), and I approved its content."
(3) In the case of a
person, business entity or political action committee making or
incurring such an independent expenditure or electioneering
communication, which entity is a
tax-exempt organization under Section 501(c) of the Internal
Revenue Code of 1986 (other than
an organization described in section 501(c)(3) of such
Code) or an exempt nonprofit as defined in
section 17-25-3, or any subsequent corresponding internal
revenue code of the
amended from time to time, or an organization organized under
Section 527 of said code, such
advertising shall also include:
(A) An audio message
in the following form: "The top five (5) donors to the organization
responsible for this advertisement are" followed by a list
of the five (5) persons or entities making
the largest aggregate donations during the twelve (12)
month period before the date of such
advertisement, provided that no donor shall be listed who is not
required to be disclosed in a
report to the board of elections by the person, business
entity, or political action committee; or
(B) In the case of
such an advertisement that is thirty (30) seconds in duration or shorter,
an audio message providing a website address that lists
such five (5) persons or entities, provided
that no contributor shall be listed who is not required to
be disclosed in a report to the board of
elections by the person, business entity, or political action
committee. In such case, the person,
business entity or political action committee shall establish
and maintain such a website with such
listing for the entire period during which such person,
business entity or political action
committee makes such advertisement.
(e) No person,
business entity or political action committee shall make or incur an
independent expenditure or fund an electioneering communication
for automated telephone calls,
unless the narrative of the telephone call identifies the person,
business entity or political action
committee making the expenditure and its chief executive
officer or equivalent. In the case of a
person, business entity or political action committee making
or incurring such an independent
expenditure, which entity is a tax-exempt organization under
Section 501(c) of the Internal
Revenue Code of 1986 (other than an organization
described in section 501(c)(3) of such Code)
or an exempt nonprofit as defined in section 17-25-3, or
any subsequent corresponding internal
revenue code of the
under Section 527 of said code, such narrative shall also
include an audio message in the
following form: "The top five (5) donors to the organization
responsible for this telephone call
are" followed by a list of the five (5) persons or
entities making the largest aggregate donations
during the twelve (12) month period before the date of such
telephone call, provided that no
donor shall be listed who is not required to be disclosed
in a report to the board of elections by the
person, business entity, or political action committee.
17-25.3-4.
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 thousand dollars ($1,000) per
violation.
(b) The state board
of elections may impose a civil penalty upon any person, business
entity, or political action committee who violates the
provisions of this chapter in the amount of
one thousand dollars ($1,000), or up to one hundred fifty
percent (150%) of the aggregate amount
of the independent expenditures, electioneering
communications, or covered transfers per
violation, whichever is greater.
SECTION 4. Section 17-25.2-3 of the General Laws in Chapter
17-25.2 entitled "Ballot
Question Advocacy and
Reporting" is hereby amended to read as follows:
17-25.2-3.
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 (i) for purposes of
referenda as defined in section
17-5-1 of the general laws only, any exempt nonprofit
as defined in section 17-25-3 or any
organization described under section 501(c)(3) of the Internal
Revenue Code of 1986, or any
subsequent corresponding internal revenue code of the United
States any person; and (ii)
for all
other ballot questions as defined herein, 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.
SECTION 5. Severability. If any
provision of this act or amendment made by this act, or
the application of a provision or amendment to any person
or circumstance, is held to be
unconstitutional, the remainder of this act and amendments made by
this act, and the application
of the provisions and amendment to any person or
circumstance, shall not be affected by the
holding.
SECTION 6. This act shall take effect upon passage;
provided, however, that any report
which would be required by the terms of this act to be
filed between the effective date of this act
and August 1, 2012, shall be filed on or before August 1,
2012.
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LC02090/SUB B/2
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