2005 -- S 0714

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LC01787

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2005

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A N A C T

RELATING TO ELECTIONS -- RHODE ISLAND CLEAN ELECTIONS ACT

     Introduced By: Senators Perry, Sosnowski, and Roberts

     Date Introduced: February 17, 2005

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 17-25-1, 17-25-2, 17-25-3, 17-25-4, 17-25-5, 17-25-7, 17-25-7.2,

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17-25-7.3, 17-25-7.4, 17-25-7.6, 17-25-8, 17-25-10, 17-25-10.1, 17-25-11, 17-25-11.1, 17-25-17

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and 17-25-29 of the General Laws in Chapter 17-25 entitled "Rhode Island Campaign

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Contributions and Expenditures Reporting" are hereby amended to read as follows:

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     17-25-1. Short title. -- This chapter shall be known and may be cited as the "Rhode

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Island Campaign Contributions and Expenditures Reporting Clean Elections Act".

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     17-25-2. Declaration of policy. -- (A) Public financing of election campaigns – Findings

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and general purpose. – Notwithstanding any other provisions of this chapter, it is declared to be in

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the public interest to create a system of public financing for election to general offices and to the

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general assembly. The current system for regulating campaign finances has not provided

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sufficiently competitive campaigns, and it undermines competitive elections in the state of Rhode

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Island in the following principal ways:

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     (1) It may allow large campaign contributors to have a disproportionate influence on the

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political process;

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     (2) It may raise voters’ concern that campaign contributions result in unfair financial

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benefits for large donors;

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     (3) It may undermine public confidence in the democratic process, democratic institutions

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and the integrity of public officials;

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     (4) It may compromise elected officials' accountability to their constituents by

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compelling them to rely on major campaign contributors whose interests are directly affected by

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their governmental decisions;

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     (5) It places qualified challengers without access to large contributors or personal

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fortunes at a competitive disadvantage, because large campaign contributors tend to give their

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money to incumbents;

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     (6) It leaves candidates without access to substantial campaign funds virtually unable to

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communicate with voters and reduces the voters’ ability to learn about competing candidates;

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     (7) It may place elected officials on fundraising treadmills and may thus decrease their

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available time and their independence as they seek to serve in the public interest.

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     (B) The general assembly finds and declares that providing a voluntary clean elections

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campaign finance system for Rhode Island state primary and general elections would enhance

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democracy in the following principal ways:

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     (1) It would strengthen public confidence in the governmental and election processes;

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     (2) It would lessen the pressures of special interest campaign contributions on public

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officials in Rhode Island state government;

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     (3) It would lessen the impact of wealth as a determinant of whether a person becomes a

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candidate;

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     (4) It would foster more meaningful participation by small contributors in the political

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process;

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     (5) It would provide candidates who participate in the program with a competitive level

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of resources for reaching voters;

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     (6) It would help restore the core first amendment value of open and robust debate in the

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political process;

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     (7) It would increase the accountability of elected officials to their constituents;

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     (8) It would reduce the pressure on candidates to raise campaign money and would allow

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officeholders more time to carry out their official duties.

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     (C) It is declared to be in the public interest and to be the policy of the state to establish a

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voluntary state-funded system to finance election campaigns as defined in sections 17-25-18

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through § 17-25-32. This system will be known as the “clean elections campaign funding

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system.”

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     (D) It is declared to be in the public interest and to be the policy of the state to require all

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candidate for public office who elect not to participate in the "clean elections campaign funding

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system" to report the reporting of certain private contributions received and expenditures of

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private campaign contributions made to aid or promote the nomination, election, or defeat of all

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candidates for public office.

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     (E) It is further declared that candidates for public office who participate in one of the

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two systems, the “clean elections campaign funding system” or the private financing system, are

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ineligible to participate in the other system except as permitted herein.

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     17-25-3. Definitions. -- As used in this chapter, unless a different meaning clearly

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appears from the context, the following terms relating to the reporting of private campaign

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contributions and expenditures of private campaign contributions have the meanings ascribed to

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them in this section:

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      (1) "Business entity" means any corporation, whether for profit or not for profit,

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domestic corporation or foreign corporation, as defined in section 7-1.1-2, financial institution,

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cooperative, association, receivership, trust, holding company, firm, joint stock company, public

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utility, sole proprietorship, partnership, limited partnership, or any other entity recognized by the

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laws of the United States and/or the state of Rhode Island for the purpose of doing business. The

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term "business entity" shall not include a political action committee organized pursuant to this

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chapter or a political party committee or an authorized campaign committee of a candidate or

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office holder.

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      (2) "Candidate" means any individual who undertakes any action, whether preliminary or

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final, under either the voluntary clean elections campaign funding system or the private campaign

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funding system, which is necessary under the law to qualify for nomination for election or

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election to public office, and/or any individual who receives a contribution or makes an

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expenditure, under either the voluntary clean elections campaign funding system or the private

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campaign funding system, or gives his or her consent for any other person to receive a

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contribution or make an expenditure, with a view to bringing about his or her nomination or

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election to any public office, whether or not the specific public office for which he or she will

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seek nomination or election is known at the time the contribution is received or the expenditure is

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made and whether or not he or she has announced his or her candidacy or filed a declaration of

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candidacy at that time. In relation to the clean elections campaign funding system or the private

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funding system:

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     (a) A “participating candidate” means a candidate for representative or senator in the

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general assembly or for general office who qualifies for clean elections campaign funding.

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     (b) "Nonparticipating candidate" means a candidate for representative or senator in the

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general assembly or for general office who is on the ballot but has chosen not to apply for clean

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elections campaign funding or who has applied for clean elections funding but not satisfied the

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requirements for receiving clean elections funding. “Nonparticipating candidate” also includes

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any individual who receives a private contribution or makes an expenditure of private campaign

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contributions, or gives his or her consent for any other person to receive a private contribution or

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make an expenditure of private campaign contributions, with a view to bringing about his or her

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nomination or election to any public office, whether or not the specific public office for which he

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or she will seek nomination or election is known at the time the private contribution is received or

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the expenditure of private campaign contributions is made and whether or not he or she has

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announced his or her candidacy or filed a declaration of candidacy at that time.

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      (3) "Contributions" and "expenditures" include all transfers of money, paid personal

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services, or other thing of value to or by any candidate, committee of a political party, or political

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action committee. A loan shall be considered a contribution of money until it is repaid.

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      (4) "Election" means any primary, general, or special election or town meeting for any

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public office of the state, municipality, or district or for the determination of any question

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submitted to the voters of the state, municipality, or district.

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      (5) "Election cycle" means the twenty-four (24) month period commencing on January 1

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of odd number years and ending on December 31 of even number years; provided, with respect to

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the public financing of election campaigns of general officers under sections 17-25-19, 17-25-20,

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and 17-25-25, sections 17-25-18.1 through 17-25-32, "election cycle" means the forty-eight (48)

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month period commencing on January 1 of odd numbered years and ending December 31 of even

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numbered years.

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     (5.1) “Expenditure(s) of private campaign contributions” means all transfers of money,

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paid personal services, or other thing of value given to or received by any nonparticipating

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candidate by or from any individual or source other than the clean elections campaign fund,

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including any committee of a political party, or political action committee.

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      (6) "Other thing of value" means any item of tangible real or personal property of a fair

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market value in excess of one hundred dollars ($100).

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      (7) "Paid personal services" means personal services of every kind and nature, the cost or

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consideration for which is paid or provided by someone other than the committee or

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nonparticipating candidate for whom the services are rendered, but shall not include personal

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services provided without compensation by persons volunteering their time.

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      (8) "Person" means an individual, partnership, committee, association, corporation, and

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any other organization.

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      (9) "Political action committee" means any group of two (2) or more persons that accepts

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any contributions to be used for advocating the election or defeat of any candidate or candidates

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or to be used for advocating the approval or rejection of any question or questions submitted to

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the voters. Only political action committees that have accepted contributions from fifteen (15) or

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more persons in amounts of ten dollars ($10.00) or more within an election cycle shall be

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permitted to make contributions, and those committees must make contributions to at least five

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(5) candidates for state or local office within an election cycle.

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     (9.1) “Private contributions” means all transfers of money, paid personal services, or any

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thing of value given to or received by any nonparticipating candidate, committee or political

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party, or political action committee from any individual or source other than the clean elections

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campaign fund.

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      (10) "Public office" means any state, municipal, school, or district office or other

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position that is filled by popular election, except political party offices. "Political party offices"

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means any state, city, town, ward, or representative or senatorial district committee office of a

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political party or delegate to a political party convention, or any similar office.

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      (11) "State" means state of Rhode Island.

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      (12) "Testimonial affair" means an affair of any kind or nature including, but not limited

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to, cocktail parties, breakfasts, luncheons, dinners, dances, picnics, or similar affairs expressly

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and directly intended to raise campaign funds in behalf of a candidate to be used for nomination

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or election to a public office in this state, or expressly and directly intended to raise funds in

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behalf of any state or municipal committee of a political party, or expressly and directly intended

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to raise funds in behalf of any political action committee.

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     17-25-4. Applicability. -- The provisions of this chapter sections 17-25-2 through 17-25-

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17 inclusive shall apply in any primary, general, or special election or town meeting for any

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public office of the state, municipality, or district or for the determination of any question

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submitted to the voters of the state, municipality, or district.

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

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

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

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

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

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required to be filed;

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

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political action committees prescribing the requirements of the law, including uniform methods of

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bookkeeping and reporting and requirements as to the length of time that any person required to

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keep any records pursuant to the provisions of this chapter shall retain these records, or any class

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or category of records, or any other documents;

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

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

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elections, summaries of all reports grouped according to participating candidates,

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nonparticipating candidates, and political parties;

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

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an annual report to the general assembly;

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      (6) Ascertain whether participating or, nonparticipating candidates or political party

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committees, or political action committees, have failed to file reports or have filed defective

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

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filed;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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manner consistent with the provisions of this chapter.

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

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

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

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becomes or is likely to become subject to the provisions of this chapter, and to every treasurer

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duly designated under the provisions of this chapter, informing them of their actual or prospective

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obligations and responsibilities under this chapter. Any such timely and accurate information

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produced in printed summaries shall be duplicated exactly on the official web site of the Rhode

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Island board of elections.

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

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

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

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

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

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be voluntarily waived by the candidate or committee.

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

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

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

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

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

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

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

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reporting requirements contained in this chapter.

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

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-- (a) Each campaign treasurer of a each candidate, participating candidate, nonparticipating

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candidate, each state and municipal committee of a political party, and each political action

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committee shall keep accurate records and make a full report, upon a form prescribed by the

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board of elections, of all private contributions received by it in excess of a total of one hundred

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dollars ($100) from any one source within a calendar year, in furtherance of the nomination,

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election, or defeat of any candidate or the approval or rejection of any question submitted to the

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

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

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

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

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

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of one hundred dollars ($100) were received, and the amount contributed by each person or

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source. The report shall be filed with the board of elections on the dates designated in section 17-

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25-11. The campaign treasurer of the candidate, or committee reporting, shall certify to the

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correctness of each report.

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

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

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private contributions received and all expenditures of private contributions made during the

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previous calendar year, whether or not these expenditures were made, incurred, or authorized in

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furtherance of the election or defeat of any candidate. The treasurer of the committee or

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organization reporting shall certify to the correctness of each report.

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

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

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most recent report filed.

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     17-25-7.2. Personal use of campaign funds prohibited. -- (a) The personal use by any

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elected public office holder or by any candidate, participating candidate, or nonparticipating

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candidate for public office, as defined in section 17-25-3, of public or private campaign funds

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contributed after April 29, 1992, is prohibited. For the purposes of this section, "personal use" is

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defined as any use other than expenditures related to gaining or holding public office and for

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which the candidate for public office or elected public official would be required to treat the

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amount of the expenditure as gross income under section 61 of the Internal Revenue Code of

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1986, 26 U.S.C. section 61, or any subsequent corresponding Internal Revenue Code of the

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United States, as from time to time amended.

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      (b) Expenditures that are specifically prohibited under this chapter include:

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      (1) Any residential or household items, supplies or expenditures, including mortgage,

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rent or utility payments for any part of any personal residence of a candidate or officeholder or a

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member of the candidate's or officeholder's family;

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      (2) Mortgage, rent, or utility payments for any part of any non-residential property that is

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owned by a candidate or officeholder or a member of a candidate's or officeholder's family and

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used for campaign purposes, to the extent the payments exceed the fair market value of the

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property usage;

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      (3) Funeral, cremation, or burial expenses, including any expenses related to deaths

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within a candidate's or officeholder's family;

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      (4) Clothing, other than items of de minimis value that are used in the campaign;

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      (5) Tuition payments;

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      (6) Dues, fees, or gratuities at a country club, health club, recreational facility or other

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nonpolitical organization, unless they are part of a specific fundraising event that takes place on

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the organization's premises;

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      (7) Salary payments to a member of a candidate's family, unless the family member is

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providing bona fide services to the campaign. If a family member provides bona fide services to a

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campaign, any salary payments in excess of the fair market value of the services provided is

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personal use;

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      (8) Admission to a sporting event, concert, theater, or other form of entertainment, unless

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part of a specific campaign or officeholder activity;

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      (9) Payment of any fines, fees, or penalties assessed pursuant to this chapter.

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      (c) Any expense that results from campaign or officeholder activity is permitted use of

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campaign funds. Such expenditures may include:

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      (1) The defrayal of ordinary and necessary expenses of a candidate or officeholder;

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      (2) Office expenses and equipment, provided the expenditures and the use of the

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equipment can be directly attributable to the campaign or the officeholder's duties and

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responsibilities;

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      (3) Donations to charitable organizations, provided the candidate or officeholder does

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not personally benefit from the donation or receive compensation from the recipient organization;

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      (4) Travel expenses for an officeholder, provided that the travel is undertaken as an

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ordinary and necessary expense of seeking, holding, or maintaining public office, or seeking,

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holding, or maintaining a position within the legislature or other publicly elected body. If a

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candidate or officeholder uses campaign funds to pay expenses associated with travel that

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involves both personal activities and campaign or officeholder activities, the incremental

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expenses that result from the personal activities are personal use, unless the person(s) benefiting

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from this use reimburse(s) the campaign account within thirty (30) days for the amount of the

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incremental expenses;

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      (5) Gifts of nominal value and donations of a nominal amount made on a special

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occasion such as a holiday, graduation, marriage, retirement or death, unless made to a member

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of the candidate's or officeholder's family;

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      (6) Meal expenses which are incurred as part of a campaign activity or as apart of a

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function that is related to the candidate's or officeholder's responsibilities, including meals

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between and among candidates and/or officeholders that are incurred as an ordinary and

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necessary expense of seeking, holding, or maintaining public office, or seeking holding, or

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maintaining a position within the legislature or other publicly elected body;

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      (7) Food and beverages which are purchased as part of a campaign or officeholder

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activity.

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      (d) Any private campaign funds not used to pay for the expenses of gaining or holding

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public office may:

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      (1) Be maintained in a campaign account(s);

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      (2) Be donated to a candidate for public office, to a political organization, or to a

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political action committee, subject to the limitation on contributions in section 17-25-10.1;

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      (3) Be transferred in whole or in part into a newly established political action committee;

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      (4) Be donated to a tax exempt charitable organization as that term is used in section

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501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. section 501, or any subsequent

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corresponding internal revenue code of the United States as from time to time amended;

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      (5) Be donated to the state of Rhode Island; or

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      (6) Be returned to the donor.

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     17-25-7.3. Testimonial proceeds intended for personal use prohibited. -- It is

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unlawful for any candidate for public office, as defined in section 17-25-3, or any elected public

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office holder to accept the proceeds of any testimonial, as defined in section 17-25-3, for personal

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use, as defined in section 17-25-7.2, which were received after April 29, 1992. Nothing in this

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section shall be construed to prohibit the use of testimonials for the lawful purpose of raising

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campaign funds.

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     17-25-7.4. Limitations on repayment of loans. -- Campaign Private campaign

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contributions received pursuant to this chapter shall not be used to repay cumulative personal

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loans that were made on or after April 29, 1992, to a campaign by a nonparticipating candidate in

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excess of two hundred thousand dollars ($200,000) during an election cycle.

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     17-25-7.6. Electronic reporting. -- (a) The filing of campaign finance reports to the

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board of elections shall commence in accordance with the following schedule:

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      (1) Candidates for general office shall commence filing campaign finance reports

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electronically beginning with the report required to be filed for the first quarterly reporting period

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in 2002.

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      (2) All other candidates for public office and political parties, other than state political

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parties, shall commence filing campaign finance reports electronically beginning with the first

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quarterly reporting period in 2004; provided, that all candidates may commence filing campaign

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finance reports electronically beginning with the first report required to be filed for the first

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quarterly reporting period in 2002.

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      (3) State political parties, political action committees and vendors required to file

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campaign finance reports shall do so commencing with the first report required to be filed for the

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first quarterly reporting period in 2002.

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      (b) Notwithstanding the provisions in subdivision (a)(2) of this section, any candidate

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who raises or expends more than five thousand dollars ($5,000) annually, or whose report shows

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a balance of five thousand dollars ($5,000) or more in his or her campaign fund as of December

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31st of the previous year, shall file his or her campaign finance reports electronically.

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      (c) The board of elections shall have the authority to adopt regulations to implement and

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administer the provisions of this section.

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      (d) Notwithstanding anything else in this section and subject to the implementation of an

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electronic reporting and tracking system, the board of elections shall have the authority to delay

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implementation of the requirements of this section by up to ninety (90) days.

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     (e) The provisions of this section apply to all candidates, regardless of which campaign

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financing system they elect to join.

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     17-25-8. Appointment of campaign treasurer by candidate -- Filings. -- (a) Each

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candidate in an election, regardless of which campaign financing system they elect to join, shall

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file a "notice of organization" with the board of elections and appoint one campaign treasurer

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before receiving any contribution or expending any money in furtherance or aid of the candidate's

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candidacy. The "notice of organization" shall include the name and address of the candidate, the

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campaign treasurer and the committee being established.

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      (b) A candidate may appoint deputy campaign treasurers as required. The candidate shall

11-14

file the names and addresses of deputy campaign treasurers with the board of elections.

11-15

      (c) A candidate may remove a campaign treasurer or deputy campaign treasurer. In the

11-16

case of the death, resignation, or removal of a campaign treasurer, the candidate shall appoint a

11-17

successor as soon as practicable and shall file his or her name and address with the board of

11-18

elections within ten (10) days. A candidate may serve as his or her own campaign treasurer, and

11-19

upon failure to designate a treasurer, the candidate shall be designated his or her own treasurer by

11-20

the board of elections.

11-21

     17-25-10. Lawful methods of contributing to support of candidates -- Reporting --

11-22

Disposition of anonymous contributions. -- (a) No contribution shall be made or received, and

11-23

no expenditures shall be directly made or incurred, to support or defeat a candidate or to advocate

11-24

the approval or rejection of any question in any election except through:

11-25

      (1) The duly appointed campaign treasurer, or deputy campaign treasurers, of the

11-26

candidates, regardless of which campaign financing system they elect to join;

11-27

      (2) The duly appointed campaign treasurer or deputy campaign treasurers of a political

11-28

party committee;

11-29

      (3) The duly appointed campaign treasurer or deputy campaign treasurer of a political

11-30

action committee.

11-31

      (b) It shall be lawful for any person, not otherwise prohibited by law and not acting in

11-32

concert with any other person or group, to expend personally from that person's own funds a sum

11-33

which is not to be repaid to him or her for any purpose not prohibited by law to support or defeat

11-34

a candidate or to advocate the approval or rejection of any question; provided, that any person

12-1

making the expenditure shall be required to report all of his or her expenditures and expenses, if

12-2

the total of the money so expended exceeds one hundred dollars ($100) within a calendar year, to

12-3

the board of elections within seven (7) days of making the expenditure and to the campaign

12-4

treasurer of the candidate or political party committee on whose behalf the expenditure or

12-5

contribution was made, or to his or her deputy, within seven (7) days of making the expenditure,

12-6

who shall cause the expenditures and expenses to be included in his or her reports to the board of

12-7

elections. Whether a person is "acting in concert with any other person or group" for the purposes

12-8

of this subsection shall be determined by application of the standards set forth in section 17-25-23

12-9

subsection 17-25-10(d).

12-10

      (c) Any anonymous contribution received by a campaign treasurer or deputy campaign

12-11

treasurer shall not be used or expended, but shall be returned to the donor, if the donor's identity

12-12

can be ascertained; if not, the contribution shall escheat to the state.

12-13

     (d) Any funds expended by a person, committee of a political party, or political action

12-14

committee to directly influence the outcome of the electoral contest involving a candidate shall be

12-15

considered a contribution received by or an expenditure made by the candidate, or if one or more

12-16

of the following relationships between the candidate and the person, committee of a political

12-17

party, or political action committee is present:

12-18

     (1) There is any arrangement, coordination, or direction with respect to the expenditure

12-19

between the candidate or the candidate's agent and the person making the expenditure;

12-20

     (2) In the same election cycle, the person making the expenditure, including any officer,

12-21

director, employee, or agent of the person, is or has been authorized to raise or expend funds on

12-22

behalf of the candidate or the candidate's authorized committees, or is or has been an officer of

12-23

the candidate's authorized committees, or is or has been receiving any form of compensation or

12-24

reimbursement from the candidate, the candidate's authorized committees, or the candidate's

12-25

agent;

12-26

     (3) The person making the expenditure, including any officer, director, employee, or

12-27

agent of the person, has communicated with, advised, or counseled the candidate or the

12-28

candidate's agents at any time on the candidate's plans, projects, or needs relating to the

12-29

candidate's pursuit of election to general office in the same election cycle, including any advice

12-30

relating to the candidate's decision to seek election to general office;

12-31

     (4) The person making the expenditure retains the professional services of any individual

12-32

or other person also providing those services to the candidate in connection with the candidate's

12-33

pursuit of election to general office in the same election cycle, including any services relating to

12-34

the candidate's decision to seek election to general office;

13-1

     (5) The person making the expenditure, including any officer, director, employer, or

13-2

agent of the person, has communicated or consulted at any time during the same election cycle

13-3

about the candidate's plans, projects, or needs relating to the candidate's pursuit of election to

13-4

general office, with:

13-5

     (i) Any officer, director, employee, or agent of a party committee that has made or

13-6

intends to make expenditures or contributions, in connection with the candidate's campaign; or

13-7

     (ii) Any person whose professional services have been retained by a political party

13-8

committee that has made or intends to make expenditures or contributions.

13-9

     (6) The expenditure is based on information provided to the person making the

13-10

expenditure directly or indirectly by the candidate or the candidate's agents about the candidate's

13-11

plans, projects, or needs; provided, that the candidate or the candidate's agents are aware that the

13-12

other person has made or is planning to make expenditures expressly advocating the candidate's

13-13

election; or

13-14

     (7) The expenditure is made by a person with the intention of seeking or obtaining any

13-15

governmental benefit or consideration from the candidate by reason of the expenditure.

13-16

     17-25-10.1. Political contributions -- Limitations. -- (a) (1) No person, other than the

13-17

candidate to his or her own campaign, nor any political action committee shall make a

13-18

contribution or contributions to any candidate, as defined by section 17-25-3, or political action

13-19

committee or political party committee which in the aggregate exceed one thousand dollars

13-20

($1,000) within a calendar year, nor shall any person make contributions to more than one state or

13-21

local candidate, to more than one political action committee, or to more than one political party

13-22

committee, or to a combination of state and local candidates and political action committees and

13-23

political party committees which in the aggregate exceed ten thousand dollars ($10,000) within a

13-24

calendar year, nor shall any political action committee make such contributions which in the

13-25

aggregate exceed twenty-five thousand dollars ($25,000) within a calendar year, nor shall any

13-26

candidate or any political action committee or any political party committee accept a contribution

13-27

or contributions which in the aggregate exceed one thousand dollars ($1,000) within a calendar

13-28

year from any one person or political action committee.

13-29

      (2) Notwithstanding the provisions of subdivision (1) of this subsection, a person or

13-30

political action committee or political party committee may contribute an amount which in the

13-31

aggregate does not exceed ten thousand dollars ($10,000) within a calendar year to a political

13-32

party committee, which funds can be utilized for organizational and party building activities, but

13-33

shall not be used for contributions to candidates for state and local for public office.

13-34

      (b) Contributions to a named candidate made to any political committee authorized by

14-1

that candidate to accept contributions on the candidate's behalf shall be considered to be

14-2

contributions made to the candidate. Contributions to a candidate by a political committee for

14-3

another person shall be considered to be contributions by that person.

14-4

      (c) Expenditures made by any person in cooperation, consultation or concert with, or at

14-5

the request or suggestion of, a candidate, the candidate's authorized political committees, or their

14-6

agents shall be considered to be a contribution to the candidate.

14-7

      (d) The financing by any person of the dissemination, distribution, or republication, in

14-8

whole or in part, of any broadcast or any written, graphic, or other form of campaign materials

14-9

prepared by the candidate, the candidate's campaign committees, or their authorized agents shall

14-10

be considered to be a contribution to a candidate.

14-11

      (e) Nothing in this section shall be construed to restrict political party committees

14-12

organized pursuant to this title from making contributions to the candidates of that political party;

14-13

provided, that these contributions, other than allowable "in-kind" contributions, shall not exceed,

14-14

in the aggregate, twenty-five thousand dollars ($25,000) to any one candidate within a calendar

14-15

year, nor shall any candidate accept a contribution or contributions, other than allowable "in-

14-16

kind" contributions, which in the aggregate exceed twenty-five thousand dollars ($25,000) within

14-17

a calendar year from all committees of his or her political party. There shall be no restriction on

14-18

the amount of "in-kind" contributions that a political party committee may make to a candidate of

14-19

its political party; provided, that for the purposes of this subsection only, the cost of any

14-20

preparation and airing of television and/or radio advertisements and the cost of any print

14-21

advertisements shall not be considered an allowable "in-kind" contribution and shall be subject to

14-22

the aggregate limitation of twenty-five thousand dollars ($25,000).

14-23

      (f) (1) A contribution from an individual's dependent children, as defined in section 36-

14-24

14-2, shall be deemed a contribution from the individual for the purpose of determining whether

14-25

aggregate contributions exceed either the one hundred dollar ($100) threshold for reporting

14-26

purposes or the one thousand dollar ($1,000) maximum for contributions to a single candidate or

14-27

political action committee or the ten thousand dollar ($10,000) maximum for contributing to all

14-28

candidates and political action committees within a calendar year.

14-29

      (2) No dependent child shall contribute an amount which, when added to contributions

14-30

already made by that child's parent or legal guardian and by other dependent children of that

14-31

parent or legal guardian, exceed the one thousand dollar ($1,000) maximum for contributions to a

14-32

single candidate or political action committee or exceed the ten thousand dollar ($10,000)

14-33

maximum for contributions to all state or local candidates and political action committees within

14-34

a calendar year.

15-1

      (g) Nothing in this section shall be construed to restrict the amount of money that a

15-2

candidate can borrow in his or her own name, and subsequently contribute or loan to his or her

15-3

own campaign.

15-4

      (h) (1) It shall be unlawful for any corporation, whether profit or non-profit, domestic

15-5

corporation or foreign corporation, as defined in section 7-1.1-2, or other business entity to make

15-6

any campaign contribution or expenditure, as defined in section 17-25-3, to or for any candidate,

15-7

political action committee, or political party committee, or for any candidate, political action

15-8

committee, or political party committee to accept any campaign contribution or expenditure from

15-9

a corporation or other business entity. Any contribution made in the personal name of any

15-10

employee of a corporation or other business entity, for which the employee received or will

15-11

receive reimbursement from the corporation or other business entity, shall be considered as a

15-12

contribution by the corporation or other business entity, in violation of this section.

15-13

      (2) Any voluntary payroll deduction and/or private contribution made by employees of a

15-14

corporation or other business entity shall not be deemed a contribution of a corporation or other

15-15

business entity, notwithstanding that the contributions were sent to the recipient by the

15-16

corporation or other business entity.

15-17

      (i) All contributions of funds shall be by check, money order, or credit card and may be

15-18

made over the Internet, but in each case the source of the funds must be identified; provided, that

15-19

candidates may accept contributions in cash which do not exceed twenty-five dollars ($25.00) in

15-20

the aggregate from an individual within a calendar year. The cash contribution must be delivered

15-21

directly by the donor to the candidate, his or her campaign treasurer, or deputy treasurer. The

15-22

treasurer or deputy treasurer shall maintain a record of the name and address of all persons

15-23

making these cash contributions.

15-24

      (j) Except as provided in subsection (h) of this section, no entity other than an individual,

15-25

a political action committee which is duly registered and qualified pursuant to the terms of this

15-26

chapter, political party committee authorized by this title, or an authorized committee of an

15-27

elected official or candidate established pursuant to this chapter shall make any contribution to or

15-28

any expenditure on behalf of or in opposition to any candidate, ballot question, political action

15-29

committee, or political party.

15-30

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

15-31

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

15-32

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

15-33

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

15-34

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

16-1

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

16-2

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

16-3

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

16-4

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

16-5

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

16-6

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

16-7

expenditures made on behalf of or in opposition to a candidate or question:

16-8

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

16-9

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

16-10

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

16-11

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

16-12

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

16-13

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

16-14

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

16-15

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

16-16

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

16-17

contain:

16-18

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

16-19

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

16-20

received;

16-21

      (ii) The amount contributed by each person;

16-22

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

16-23

hundred dollars ($100) were made; and

16-24

      (iv) The amount and purpose of each expenditure.

16-25

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

16-26

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

16-27

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

16-28

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

16-29

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

16-30

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

16-31

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

16-32

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

16-33

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

16-34

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

17-1

time of dissolution.

17-2

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

17-3

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

17-4

behalf of or in opposition to a candidate or to advocate the approval or rejection of any question

17-5

during the campaign can be accepted. Until the time that the campaign treasurer certifies that the

17-6

campaign fund has completed its business and been dissolved, the treasurer shall file reports

17-7

containing an account of contributions received and expenditures made at ninety (90) day

17-8

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

17-9

file under this subsection shall be no later than thirty (30) days following the ninety (90) day

17-10

period, except when the thirty (30) days filing deadline following the ninety (90) day reporting

17-11

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

17-12

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

17-13

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

17-14

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

17-15

in behalf of the candidacy or question by the candidate, by any political party committee, by any

17-16

political action committee, or by any person shall not in the aggregate exceed one thousand

17-17

dollars ($1,000).

17-18

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

17-19

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

17-20

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

17-21

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

17-22

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

17-23

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

17-24

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

17-25

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

17-26

and the amount from political party committees.

17-27

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

17-28

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

17-29

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

17-30

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

17-31

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

17-32

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

17-33

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

17-34

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

18-1

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

18-2

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

18-3

to file under this subsection shall be no later than thirty (30) days following the ninety (90) day

18-4

period, except when the thirty (30) days filing deadline following the ninety (90) day reporting

18-5

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

18-6

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

18-7

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

18-8

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

18-9

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

18-10

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

18-11

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

18-12

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

18-13

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

18-14

authority to waive late filing fees for good cause shown.

18-15

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

18-16

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

18-17

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

18-18

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

18-19

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

18-20

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

18-21

authority to waive late filing fees for good cause shown.

18-22

     17-25-11.1. Preservation of candidate or committee records. -- (a) For every report

18-23

filed after the effective date of this chapter, the campaign treasurer of each candidate, whether

18-24

participating or nonparticipating, seeking nomination for election or election to public office shall

18-25

maintain and preserve all records and supporting documentation for a period of four (4) years

18-26

from the filing date.

18-27

      (b) For every report filed after the effective date of this chapter, the treasurer of each

18-28

political party committee and political action committee shall be required to maintain and

18-29

preserve all records in support of the committee reports filed pursuant to section 17-25-11 for a

18-30

period of four (4) years from the filing date.

18-31

     17-25-17. Severability. -- (a) If the provisions of this chapter sections 17-25-1 through

18-32

17-25-17 or their application to any person or circumstances is held invalid, the invalidity shall

18-33

not affect other provisions or applications of the chapter sections 17-25-1 through 17-25-17

18-34

which can be given effect without the invalid provision or application, and to this end the

19-1

provisions of the chapter are declared to be severable.

19-2

      (b) Without limiting the generality of subsection (a) of this section, if the application of

19-3

any provision of this chapter to contributions and/or expenditures made in regard to ballot

19-4

questions is held invalid, the provision shall remain applicable to contributions and/or

19-5

expenditures made in regard to candidates.

19-6

     17-25-29. Appropriations. Appropriations – Clean elections fund. -- (A) There is

19-7

hereby created a special, dedicated, non-lapsing clean elections fund for the purpose of providing

19-8

public financing for the election campaigns of certified participating candidates and paying for

19-9

the administrative and enforcement costs of the board of elections related to this act. The fund

19-10

shall receive any funds generated by the tax credit of subsection 44-30-2(d), any fines assessed in

19-11

connection with this act, any qualifying contributions, any unspent funds of a participating

19-12

candidate remaining after the election for which the funds were distributed, any interest generated

19-13

by the fund, voluntary donations made to the clean elections fund, and an annual appropriation of

19-14

seven dollars ($7.00) per resident of the state as calculated by the United States census bureau for

19-15

the year preceding the election. The fund shall be deposited in a manner that will secure the

19-16

highest rate of interest available consistent with the safety of the sums and with the requirement

19-17

that all sums on deposit be available for immediate payment to eligible candidates at any time

19-18

during the primary or general election campaign periods.

19-19

     (B) In the event the funds generated by the tax credit of section 44-30-2(d) this section

19-20

fail to produce sufficient money to meet the requirements of the public financing of the electoral

19-21

system as set forth in sections 17-25-19 -- 17-25-27 17-25-18.1 through 17-25-32, then funds

19-22

sufficient to meet the levels of the public financing as set forth in this chapter shall be supplied

19-23

from the general fund of the state treasury. There is appropriated from the general treasury those

19-24

sums that may be necessary for carrying out the purposes of the public financing of the electoral

19-25

system, and an amount equal to the total of all maximum amounts of matching public funds

19-26

available to all party and independent candidates for general office qualifying and electing to

19-27

receive public funds in an election shall be transferred to the board of elections no later than

19-28

September 1 of each election year and deposited in a manner that will secure the highest rate of

19-29

interest available consistent with the safety of the sums and with the requirement that all sums on

19-30

deposit be available for immediate payment to eligible candidates at any time after the date of the

19-31

primary election. The state controller is authorized and directed to draw his or her orders upon the

19-32

general treasurer for transfer of all sums the board deems necessary to comply with this section.

19-33

There shall also be transferred to the board any additional sums that may be required until the

19-34

permitted limits are reached. The board shall account for all funds disbursed pursuant to this

20-1

chapter. and transfer upon the conclusion of any election for general office any and all

20-2

undisbursed sums to the general treasurer for deposit in the general fund by December 1 in any

20-3

year in which the election is held.

20-4

     SECTION 2. Sections 17-25-18, 17-25-19, 17-25-20, 17-25-21, 17-25-22, 17-25-23, 17-

20-5

25-24, 17-25-25, 17-25-26, 17-25-27, 17-25-28 and 17-25-30 of the General Laws in Chapter 17-

20-6

25 entitled "Rhode Island Campaign Contributions and Expenditures Reporting" are hereby

20-7

repealed.

20-8

     17-25-18. Public financing of election campaigns -- General purpose. -- Whereas, the

20-9

general assembly finds that the cost of running for statewide office has risen over the last decade

20-10

at a rate far in excess of the increase in the cost of living; and

20-11

      Whereas, the general assembly finds that the need to raise ever larger sums of money to

20-12

effectively compete for general office threatens the essence of our democratic system by

20-13

excluding many well qualified candidates; and

20-14

      Whereas, the general assembly finds that the candidate's need to raise large sums of

20-15

money can result in disproportionate and inappropriate influence being obtained by those who

20-16

possess the financial ability to make large contributions to campaigns; and

20-17

      Whereas, the general assembly finds that the state cannot impose limitations on the

20-18

amount of private funds raised and expended for election purposes by a candidate unless it

20-19

provides for at least partial public financing of campaigns;

20-20

      Therefore, the general assembly determines that it is in the best interest of the citizens of

20-21

the state to provide public financing to qualified candidates for general office.

20-22

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

20-23

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

20-24

conditions of this section and sections 17-25-20 -- 17-25-27 to qualifying candidates for general

20-25

office who agree to abide by a limitation on the total amount of campaign contributions received

20-26

and expenditures made for election purposes.

20-27

      (b) The nominees for general office of each political party, as defined in section 17-1-

20-28

2(9), and independent candidates for those offices who meet the requirements set forth in section

20-29

17-25-20(6), shall be eligible to receive two dollars ($2.00) of public funds for each qualified

20-30

dollar ($1.00) of private funds contributed which do not exceed an aggregate of five hundred

20-31

dollars ($500) from a single source within an election cycle and one dollar ($1.00) of public funds

20-32

for each qualified dollar ($1.00) of private funds contributed which exceed an aggregate of five

20-33

hundred dollars ($500) from a single source within an election cycle but do not exceed the

20-34

limitations on aggregate contributions which are eligible to be matched set in section 17-25-20(3),

21-1

subject to the provisions of section 17-25-20(2). The total amount of public funds provided to a

21-2

candidate shall not exceed seven hundred fifty thousand dollars ($750,000) in matching funds for

21-3

a total of one million five hundred thousand dollars ($1,500,000) for candidates for governor; and

21-4

one hundred eighty-seven thousand five hundred dollars ($187,500) in matching funds for a total

21-5

of three hundred seventy-five thousand dollars ($375,000) for candidates for other general

21-6

offices.

21-7

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

21-8

becomes a candidate, as defined in section 17-25-3(2), must sign a statement under oath pledging

21-9

to comply with the limitations on campaign contributions and expenditures and with all of the

21-10

terms and conditions set forth in this chapter. Any candidate who fails to file the statement with

21-11

his or her declaration for office shall be ineligible to receive public funds.

21-12

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

21-13

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

21-14

requirements:

21-15

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

21-16

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

21-17

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

21-18

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

21-19

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

21-20

these restrictions.

21-21

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

21-22

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

21-23

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

21-24

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

21-25

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

21-26

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

21-27

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

21-28

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

21-29

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

21-30

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

21-31

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

21-32

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

21-33

general was held.

21-34

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

22-1

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

22-2

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

22-3

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

22-4

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

22-5

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

22-6

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

22-7

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

22-8

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

22-9

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

22-10

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

22-11

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

22-12

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

22-13

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

22-14

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

22-15

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

22-16

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

22-17

wages of campaign employees, nor the cost of any radio, television, or printed advertisement. The

22-18

cost of a fundraising event must be less than the amount of money realized from the gross

22-19

proceeds generated by the fundraising event in order to qualify for this exclusion.

22-20

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

22-21

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

22-22

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

22-23

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

22-24

election cycle.

22-25

      (6) In order to receive payments under this section, any independent candidate shall first

22-26

meet the following additional minimum requirements:

22-27

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

22-28

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

22-29

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

22-30

contributing at least twenty-five dollars ($25.00) each; and

22-31

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

22-32

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

22-33

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

22-34

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

23-1

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

23-2

candidate's campaign.

23-3

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

23-4

following uses directly related to the campaign of the candidate:

23-5

      (i) Purchase of time on radio or television stations;

23-6

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

23-7

      (iii) Purchase of advertising space in newspapers and regularly published magazines and

23-8

periodicals;

23-9

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

23-10

outdoor signs or billboards, and in newspapers, regularly published magazines, and periodicals;

23-11

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

23-12

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

23-13

paraphernalia;

23-14

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

23-15

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

23-16

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

23-17

billings in excess of deposits;

23-18

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

23-19

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

23-20

election headquarters or satellite election offices.

23-21

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

23-22

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

23-23

in furtherance of his or her candidacy in a previous election cycle, as defined in section 17-25-

23-24

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

23-25

- 17-25-27.

23-26

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

23-27

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

23-28

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

23-29

     17-25-21. Primary elections. -- Any candidate eligible to receive public funds and

23-30

electing to receive these funds who is challenged for nomination for general office in a political

23-31

party primary shall be permitted to raise and expend an additional amount of private funds equal

23-32

to one-third ( 1/3) of the maximum allowable expenditure amount for the office or equal to the

23-33

total amount spent by the candidates' opponent or opponents in the primary, whichever amount is

23-34

less. The additional amount received in contributions must be expended prior to the primary

24-1

election. The additional private contributions shall not be eligible for matching public funds.

24-2

     17-25-22. Time period for payment of public funds. -- (a) No public funds shall be

24-3

dispersed to candidates until after the date of the primary election. In order to receive matching

24-4

public funds, the candidate must be the nominee for general office of a political party, as defined

24-5

in section 17-12.1-12, or an independent candidate for general office who meets all of the

24-6

requirements set forth in section 17-25-20(6). The candidate must submit to the board of elections

24-7

proof of receipt of qualifying private contributions and supporting documentation as required by

24-8

the board. The board of elections shall, within five (5) business days of the receipt of the request

24-9

for payment of matching funds, either pay over funds to the candidate or disallow all or a portion

24-10

of the request and state in writing the reasons for the disallowance.

24-11

      (b) A candidate may submit supplemental applications for public funds until the time

24-12

that the permitted limits are reached.

24-13

     17-25-23. Funds expended by person, committee of a political party, or political

24-14

action committee -- Private expenditure. -- For the purposes of sections 17-25-19 and 17-25-

24-15

20, any funds expended by a person, committee of a political party, or political action committee

24-16

to directly influence the outcome of the electoral contest involving the candidate shall be

24-17

considered a contribution received by or an expenditure made by the candidate for general office,

24-18

or if one or more of the following relationships between the candidate and the person, committee

24-19

of a political party, or political action committee is present:

24-20

      (1) There is any arrangement, coordination, or direction with respect to the expenditure

24-21

between the candidate or the candidate's agent and the person making the expenditure;

24-22

      (2) In the same election cycle, the person making the expenditure, including any officer,

24-23

director, employee, or agent of the person, is or has been authorized to raise or expend funds on

24-24

behalf of the candidate or the candidate's authorized committees, or is or has been an officer of

24-25

the candidate's authorized committees, or is or has been receiving any form of compensation or

24-26

reimbursement from the candidate, the candidate's authorized committees, or the candidate's

24-27

agent;

24-28

      (3) The person making the expenditure, including any officer, director, employee, or

24-29

agent of the person, has communicated with, advised, or counseled the candidate or the

24-30

candidate's agents at any time on the candidate's plans, projects, or needs relating to the

24-31

candidate's pursuit of election to general office in the same election cycle, including any advice

24-32

relating to the candidate's decision to seek election to general office;

24-33

      (4) The person making the expenditure retains the professional services of any individual

24-34

or other person also providing those services to the candidate in connection with the candidate's

25-1

pursuit of election to general office in the same election cycle, including any services relating to

25-2

the candidate's decision to seek election to general office;

25-3

      (5) The person making the expenditure, including any officer, director, employer, or

25-4

agent of the person, has communicated or consulted at any time during the same election cycle

25-5

about the candidate's plans, projects, or needs relating to the candidate's pursuit of election to

25-6

general office, with:

25-7

      (i) Any officer, director, employee, or agent of a party committee that has made or

25-8

intends to make expenditures or contributions, in connection with the candidate's campaign; or

25-9

      (ii) Any person whose professional services have been retained by a political party

25-10

committee that has made or intends to make expenditures or contributions;

25-11

      (6) The expenditure is based on information provided to the person making the

25-12

expenditure directly or indirectly by the candidate or the candidate's agents about the candidate's

25-13

plans, projects, or needs; provided, that the candidate or the candidate's agents are aware that the

25-14

other person has made or is planning to make expenditures expressly advocating the candidate's

25-15

election; or

25-16

      (7) The expenditure is made by a person with the intention of seeking or obtaining any

25-17

governmental benefit or consideration from the candidate by reason of the expenditure.

25-18

     17-25-24. Additional expenditures. -- Any candidate eligible to receive public funds

25-19

and electing to receive these funds whose opponent does not elect to receive public funds shall be

25-20

permitted to raise additional private contributions and make additional expenditures for election

25-21

purposes in an amount in excess of the candidate's maximum allowable expenditure limit equal to

25-22

the amount by which the expenditures of the opponent exceed the maximum allowable

25-23

expenditure limit that would have applied to the opponent's expenditures had the opponent

25-24

elected to receive public funds.

25-25

     17-25-25. Surplus campaign funds. -- Any candidate receiving public funds during any

25-26

election cycle under the provisions of this chapter shall, within ninety (90) days after the

25-27

completion of the election cycle, transfer to the general treasurer for deposit in the general fund

25-28

fifty percent (50%) of any amount of the candidate's total campaign funds unexpended as of the

25-29

last day of the election cycle. The candidate may convert the remaining fifty percent (50%) of the

25-30

amount to use for any political purposes not otherwise prohibited by law. The remaining fifty

25-31

percent (50%) of that amount may not be converted to personal use by the candidate.

25-32

     17-25-26. Equal apportionment of expenditures for joint advertisements. -- Any

25-33

expenditure jointly made by any two (2) or more candidates for any newspaper, radio, or

25-34

television advertisement primarily benefiting the candidate shall be attributed to and apportioned

26-1

equally among those candidates who are clearly identified in that advertisement. The

26-2

apportionments shall constitute campaign expenditures subject to all reporting requirements of

26-3

this chapter and shall be counted toward any total campaign expenditures limit that may apply to

26-4

each or any of the candidates.

26-5

     17-25-27. Post-audit of accounts -- Publication. -- The board may conduct a post-audit

26-6

of all accounts and transactions for any election cycle and may conduct any other special audits

26-7

and post-audits that it may deem necessary. The board shall publish a summary of the reports

26-8

filed by candidates for general office pursuant to the public financing provision of this chapter on

26-9

or before April 1 of the year following any year in which elections are held for statewide elective

26-10

office.

26-11

     17-25-28. Board of elections -- Regulation and auditing of matching fund program. -

26-12

- In addition to all other powers and duties established by law, the board of elections is

26-13

empowered to adopt and enforce rules, regulations, and auditing procedures required to fulfill the

26-14

mandates of sections 17-25-19 -- 17-25-27. The board is empowered, among other things, to:

26-15

      (1) Ascertain whether any contributions to or expenditures for candidates for general

26-16

office have exceeded limits prescribed by sections 17-25-18 -- 17-25-27. Ascertain the amount

26-17

and source of contributions received and expenditures made by all candidates for general offices,

26-18

whether or not the candidate chose to participate in public financing.

26-19

      (2) Issue advisory opinions upon its own initiative or upon application of any candidate.

26-20

      (3) (i) Conduct investigations and/or hearings relative to alleged violations of sections

26-21

17-25-18 -- 17-25-27, either on its own initiative or upon receipt of a verified written complaint,

26-22

which complaint shall, under pain and penalty of perjury, be based upon actual knowledge and

26-23

not merely on information and belief.

26-24

      (ii) Upon receipt of a verified written complaint, or upon receipt of evidence which is

26-25

deemed sufficient by the board, the board may initiate a preliminary investigation into any

26-26

alleged violation of sections 17-25-18 -- 17-25-27. All board proceedings and records relating to

26-27

a preliminary investigation shall be confidential, except that the board may turn over to the

26-28

attorney general evidence that may be used in a criminal proceeding. The board shall notify any

26-29

person who is the subject of the preliminary investigation of the existence of the investigation and

26-30

the general nature of the alleged violation by certified or registered mail, return receipt requested,

26-31

within seven (7) days of the commencement of the investigation.

26-32

      (iii) If a preliminary investigation fails to indicate reasonable cause for belief that

26-33

sections 17-25-18 -- 17-25-27 have been violated, the board shall immediately terminate the

26-34

investigation and notify, in writing, the complainant, if any, and the person who had been the

27-1

subject of the investigation.

27-2

      (iv) If a preliminary investigation indicates reasonable cause for belief that sections 17-

27-3

25-18 -- 17-25-27 have been violated, the board may, upon a majority vote, initiate a full

27-4

investigation and appropriate proceedings to determine whether there has been a violation.

27-5

      (v) All testimony in board proceedings shall be under oath. All parties shall have the

27-6

right to call and examine witnesses, to introduce exhibits, to cross-examine witnesses who testify,

27-7

to submit evidence, and to be represented by counsel. Before testifying, all witnesses shall be

27-8

given a copy of the regulations governing board proceedings. All witnesses shall be entitled to be

27-9

represented by counsel.

27-10

      (vi) Any person whose name is mentioned during a proceeding of the board and who

27-11

may be adversely affected by it may appear personally before the board on his or her own behalf

27-12

or file a written statement for incorporation into the record of the proceeding.

27-13

      (vii) Within fourteen (14) days after the end of proceedings, the board shall meet in

27-14

executive session for the purpose of reviewing the evidence before it. Within thirty (30) days after

27-15

completion of deliberations, the board shall publish a written report of its findings and

27-16

conclusions.

27-17

      (viii) (A) Upon a finding that there has been a violation of sections 17-25-18 -- 17-25-27

27-18

or any other campaign finance law, the board may issue an order requiring the violator to:

27-19

      (I) Cease and desist from the violation;

27-20

      (II) File any report, statements or other information as required by this chapter; and/or

27-21

      (III) Pay a civil fine for each violation of any section of this chapter in an amount

27-22

authorized by that section or, if no authorization exists, in amount not to exceed the greater of one

27-23

thousand dollars ($1,000) or three (3) times the amount the violator failed to properly report or

27-24

unlawfully contributed, expended, gave, or received.

27-25

      (B) The board may turn over to the attorney general any evidence that may be used in a

27-26

subsequent criminal proceeding against any violator.

27-27

      (ix) The board may file a civil action in superior court to enforce an order issued by it

27-28

pursuant to this section.

27-29

      (x) Any final action by the board made pursuant to this chapter shall be subject to review

27-30

in superior court upon petition of any interested person filed within thirty (30) days after the

27-31

action for which review is sought. The court shall enter a judgment enforcing, modifying, or

27-32

setting aside the order of the board, or it may remand the proceeding to the board for any further

27-33

action that the court may decide.

27-34

     17-25-30. Public financing of election campaigns -- Compliance benefits. -- Any

28-1

candidate eligible to receive public funds who complies in full with all eligibility criteria for

28-2

receipt of the funds shall be:

28-3

      (1) Entitled to an additional benefit of free time on community antenna television to be

28-4

allocated pursuant to rules determined by the administrator for the division of public utilities.

28-5

During all allocated free time, the candidate shall personally appear and present the message of

28-6

the advertisement;

28-7

      (2) Entitled to an additional benefit of free time on any public broadcasting station

28-8

operating under the jurisdiction of the Rhode Island public telecommunications authority

28-9

pursuant to rules determined by the authority. During all allocated free time, the candidate shall

28-10

personally appear and personally present the message of the advertisement; and

28-11

      (3) Entitled to accept a contribution or contributions that in the aggregate do not exceed

28-12

two thousand dollars ($2,000) from any person or political action committee within a calendar

28-13

year.

28-14

     SECTION 3. Chapter 17-25 of the General Laws entitled "Rhode Island Campaign

28-15

Contributions and Expenditures Reporting" is hereby amended by adding thereto the following

28-16

sections:

28-17

     17-25-18.1. Clean elections system. -- With the exception of the definition of

28-18

“nonparticipating candidate” in section 17-25-19.1, sections 17-25-18.1 through 17-25-32

28-19

inclusive are binding on “participating candidates” as defined in sections 17-25-3 and 17-25-

28-20

19.1.

28-21

     17-25-19.1. Additional definitions. -- As used in this chapter, unless a different meaning

28-22

clearly appears from context:

28-23

     (1) The “exploratory period” means the period beginning the day following the previous

28-24

general election for the office sought and ending on the last day of the qualifying period. The

28-25

exploratory period is the period during which candidates who wish to become eligible for clean

28-26

elections funding for the next elections are permitted to raise and spend a limited amount of

28-27

private seed money for the purpose of testing their ability to run and of qualifying for clean

28-28

elections funding.

28-29

     (2) The “qualifying period” means the period beginning ninety (90) days before the

28-30

beginning of the primary election campaign period and ending thirty (30) days before the day of

28-31

the primary election. The qualifying period is the period in which candidates are permitted to

28-32

collect qualifying contributions to become eligible for clean elections funding.

28-33

     (3) The “primary election campaign period” means the period beginning ninety (90) days

28-34

before the primary election and ending on the day of the primary election.

29-1

     (4) The “general election campaign period” means the period beginning the day after the

29-2

primary election and ending on the day of the general election.

29-3

     (5) A “seed money contribution” means a contribution of no more than one hundred

29-4

dollars ($100) made by an individual during the exploratory period.

29-5

     (6) A “qualifying contribution” means a contribution of five dollars ($5.00) that is made

29-6

by a citizen residing within the election district and is received during the qualifying period by a

29-7

candidate seeking to become eligible for clean election funding.

29-8

     (7) A “participating candidate” means a candidate for representative or senator in the

29-9

general assembly or for general office who qualifies for clean elections campaign funding.

29-10

     (8) A “nonparticipating candidate” means a candidate for representative or senator in the

29-11

general assembly or for general office who is on the ballot but has chosen not to apply for clean

29-12

elections campaign funding or who has applied for clean elections funding but not satisfied the

29-13

requirements for receiving clean elections funding.

29-14

     (9) “Express advocacy” means an expenditure made by a person or group other than a

29-15

candidate or a candidate’s committee that advocates the election or defeat of a candidate,

29-16

including all costs of designing, producing, or disseminating a communication that contains

29-17

phrases such as “vote for”, “re-elect”, “support”, “cast your ballot for”, “[name of candidate] for

29-18

[name of office]”, “[name of candidate] in [year]”, “vote against”, “defeat”, “reject”, or similar

29-19

phrases.

29-20

     (10) (a) "Electioneering communication" means any communication broadcast by

29-21

television or radio, printed in a newspaper or on a billboard, directly mailed or delivered by hand

29-22

to personal residences, or otherwise distributed that:

29-23

     (i) unambiguously refers to any candidate; and

29-24

     (ii) is broadcast, printed, mailed, delivered, or distributed within thirty (30) days of a

29-25

primary election or sixty (60) days before a general election; and

29-26

     (iii) is broadcast to, printed in a newspaper distributed to, mailed to, delivered by hand to,

29-27

or otherwise distributed to an audience that includes members of the electorate for such public

29-28

office.

29-29

     (b) "Electioneering communication" does not include:

29-30

     (i) any news articles, editorial endorsements, opinion or commentary, writings, or letters

29-31

to the editor printed in a newspaper, magazine or other periodical not owned or controlled by a

29-32

candidate or political party;

29-33

     (ii) any editorial endorsements or opinions aired by a broadcast facility not owned or

29-34

controlled by a candidate or political party;

30-1

     (iii) any communication by persons made in the regular course and scope of their

30-2

business or any communication made by a membership organization solely to members of such

30-3

organization and their families; or

30-4

     (12) “Independent expenditures” means any funds spent on express advocacy or

30-5

electioneering communications that are not coordinated with any candidate’s campaign. The

30-6

board of elections shall adopt regulations to determine whether funds spent on express advocacy

30-7

or electioneering communications are coordinated expenditures. Coordinated expenditures on

30-8

express advocacy or electioneering communications are hereby defined as contributions.

30-9

     (13) “Opposing funds” means funds spent opposing a participating candidate’s campaign.

30-10

the amount of opposing funds is calculated by first determining the opponent of the participating

30-11

candidate who has the highest total of contributions received and supportive independent

30-12

expenditures; the amount of opposing funds is calculated by totaling the contributions received by

30-13

that opponent, the amount spent on independent expenditures in support of that opponent, and the

30-14

amount spent on independent expenditures in opposition to the participating candidate. While

30-15

initial disbursements from the clean elections fund to participating candidates are counted as

30-16

contributions, matching funds as defined in section 17-25-29.1 do not count for purposes of

30-17

determining opposing funds. No independent expenditure may be counted as both opposing a

30-18

participating candidate and in support of that candidate’s opponent.

30-19

     (14) A “party candidate” means a candidate in a primary election or a candidate who has

30-20

been nominated through a party primary.

30-21

     (15) An “independent candidate” means a candidate who does not represent a political

30-22

party that has been granted ballot status.

30-23

     (16) “Person” means an individual, partnership, committee, association, corporation, and

30-24

any other organization.

30-25

     17-25-20.1. Eligibility. -- (A) A party candidate qualifies as a participating candidate for

30-26

the primary election campaign period by:

30-27

     (1) filing a declaration with the board of elections stating that the candidate has complied

30-28

with and will continue complying with all of the requirements of this chapter for participating

30-29

candidates;

30-30

     (2) qualifying for the primary ballot; and

30-31

     (3) collecting the required number of qualifying contributions during the qualifying

30-32

period:

30-33

     (a) fifty (50) qualifying contributions for a candidate for representative;

30-34

     (b) one hundred (100) qualifying contributions for a candidate for senator;

31-1

     (c) two thousand five hundred (2,500) qualifying contributions for a candidate for

31-2

governor; or

31-3

     (d) one thousand (1,000) qualifying contributions for a candidate for a general office

31-4

other than governor.

31-5

      (B)(1) Each contributor of a qualifying contribution shall sign a receipt on a form

31-6

provided by the board of elections including the contributor’s signature, printed name, home

31-7

address, and telephone number, and the name of the candidate on whose behalf the contribution is

31-8

made. In addition, the receipt shall state that the contributor understands that the purpose of the

31-9

qualifying contribution is to help the candidate qualify for clean elections funding and that the

31-10

contribution is made without coercion or reimbursement. The candidate receiving the qualifying

31-11

contribution shall submit a copy of the receipt to the board of elections.

31-12

     (2) A contribution submitted as a qualifying contribution that does not include a signed

31-13

and fully completed receipt shall not be counted as a qualifying contribution.

31-14

     (3) The candidate shall deposit all qualifying contributions, whether in the form of cash,

31-15

checks, or money orders in a campaign account.

31-16

     (4) The candidate shall submit to the board of elections a single check for the total

31-17

amount of the qualifying contributions for deposit in the clean elections fund along with all of the

31-18

qualifying contribution receipts.

31-19

     (C) A party candidate qualifies as a participating candidate for the general election

31-20

campaign period by qualifying as a participating candidate during the primary election campaign

31-21

period and by winning the primary election.

31-22

     (D) An independent candidate qualifies as a participating candidate for both the primary

31-23

election campaign period and the general election campaign period by:

31-24

     (1) filing a declaration with the board of elections stating that the candidate has complied

31-25

with and will continue complying with all of the requirements of this chapter for participating

31-26

candidates;

31-27

     (2) qualifying for the general election ballot; and

31-28

     (3) collecting the required number of qualifying contributions during the qualifying

31-29

period:

31-30

     (a) seventy-five (75) qualifying contributions for a candidate for representative;

31-31

     (b) one hundred fifty (150) qualifying contributions for a candidate for senator;

31-32

     (c) five thousand (5,000) qualifying contributions for a candidate for governor; or

31-33

     (d) one thousand two hundred fifty (1,250) qualifying contributions for a candidate for a

31-34

general office other than governor.

32-1

     17-25-21.1. Contributions. -- (A) During the primary and general election campaign

32-2

periods, a participating candidate may accept private contributions from the participating

32-3

candidate’s political party, seed money contributions, and qualifying contributions. No other

32-4

contributions from any source may be accepted. Volunteer activity does not constitute a

32-5

contribution.

32-6

     (B) A participating candidate who accepts any benefits during the primary election

32-7

campaign period shall comply with this requirement during the general election campaign period

32-8

regardless of whether the participating candidate accepts any benefits during the general election

32-9

campaign period.

32-10

     (C) During the primary and general election campaign period, a participating candidate

32-11

shall not solicit or receive political contributions for any other candidate or for any political party

32-12

or other political committee.

32-13

     (D) No person shall make a contribution in the name of another person.

32-14

     (E) During the primary and general election campaign periods, a participating candidate

32-15

shall pay for all campaign expenditures, except petty cash expenditures, by means of a “clean

32-16

elections debit card” issued by the board of elections.

32-17

     (F) Participating candidates and persons seeking to become participating candidates shall

32-18

furnish complete campaign records, including all records of seed money contributions and

32-19

qualifying contributions, to the board of elections at regular filing times and upon request by the

32-20

board of elections. Participating candidates must cooperate with any audit or examination by the

32-21

board of elections.

32-22

     17-25-22.1. Campaign accounts for participating candidates. -- (A) During an election

32-23

cycle, each participating candidate shall conduct all campaign financial activities through a single

32-24

campaign account.

32-25

     (B) A participating candidate may maintain a campaign account other than the campaign

32-26

account described in paragraph (A) above if the other campaign account is for the purpose of

32-27

retiring a campaign debt that was incurred during a previous election campaign in which the

32-28

candidate was not a participating candidate.

32-29

     (C) Contributions for the purposes of retiring a previous campaign debt that are deposited

32-30

in the kind of “other campaign account” described in paragraph (B) shall not be considered

32-31

contributions to the candidate’s current campaign.

32-32

     (D) Participating candidates shall file reports of financial activity related to the current

32-33

election cycle separately from reports of financial activity related to previous election cycles.

32-34

     17-25-23.1. Seed Money. -- (A) The only private contributions a candidate seeking to

33-1

become eligible for clean elections funding shall accept, other than qualifying contributions and

33-2

limited contributions from the candidate’s political party, are seed money contributions

33-3

contributed by individuals prior to the end of the qualifying period.

33-4

     (B) A seed money contribution shall not exceed one hundred dollars ($100) per donor,

33-5

and the aggregate amount of seed money contributions accepted by a candidate seeking to

33-6

become eligible for clean elections funding shall not exceed:

33-7

     (1) five hundred dollars ($500) for a candidate running for representative;

33-8

     (2) one thousand ($1,000) for a candidate running for senator;

33-9

     (3) ninety thousand ($90,000) for a candidate running for the office of governor; or

33-10

     (4) thirty-six thousand ($36,000) for a candidate running for general office other than

33-11

governor.

33-12

     (C) Receipts for seed money contributions under twenty-five ($25.00) shall include the

33-13

contributor’s signature, printed name, and address. Receipts for seed money contributions of

33-14

twenty-five ($25.00) or more shall include the contributor’s signature, printed name, street

33-15

address and zip code, telephone number, occupation, and name of employer. Candidates shall not

33-16

accept seed money contributions without receiving the required disclosure information.

33-17

     (D) Seed money shall be spent only during the exploratory and qualifying periods. Seed

33-18

money shall not be spent during the primary or general election campaign periods, including the

33-19

portion of the primary election campaign period that is also part of the qualifying period.

33-20

     (E) Candidates seeking to become participating candidates shall, upon filing their

33-21

qualifying contributions or upon the beginning of the primary election campaign period:

33-22

     (1) Fully disclose to the board of elections all seed money contributions and expenditures

33-23

on a form provided by the board of elections; and

33-24

     (2) Turn over to the board of elections for deposit in the clean elections fund any seed

33-25

money raised during the exploratory period that exceeds the aggregate seed money limit.

33-26

     17-25-24.1. Use of personal funds. -- (A) Personal funds contributed as seed money by a

33-27

candidate seeking to become eligible as a participating candidate or adult members of the

33-28

candidate’s family shall not exceed the maximum of one hundred dollars ($100) per contributor.

33-29

     (B) Personal funds shall not be used to meet the qualifying contribution requirement

33-30

except for one five dollars ($5.00) contribution from the candidate.

33-31

     17-25-25.1. Campaign advertisements. -- All broadcast and print advertisements placed

33-32

by participating candidates or their committees shall include a clear written or spoken statement

33-33

indicating that the candidate has approved of the contents of the advertisement.

33-34

     17-25-26.1. Certification. -- (A) No more than five (5) days after a candidate applies for

34-1

clean elections benefits, the board of elections shall certify whether the candidate is eligible. If a

34-2

participating candidate violates the requirements of this act, the board of elections shall revoke

34-3

the candidate’s eligibility and the candidate shall repay all clean elections funds expended.

34-4

     (B) The candidate’s request for certification shall be signed by the candidate and the

34-5

candidate’s campaign treasurer under penalty of perjury.

34-6

     (C) The board of elections determination is final except that it is subject to examination

34-7

and audit by the auditor general and to an expedited review in superior court.

34-8

     17-25-27.1. Clean elections benefits. -- (A) Participating candidates shall receive clean

34-9

elections funding from the board of elections for each election in the amounts specified in section

34-10

17-25-28.1. This funding may be used to finance any campaign expenses during the period for

34-11

which it was allocated.

34-12

     (B) No participating candidate shall spend any clean elections funds on personal use, as

34-13

defined by section 17-25-7.2.

34-14

     (C) Participating candidates shall receive additional clean elections funds to match any

34-15

amount by which opposing funds exceed the initial allocation, as specified in section 17-25-29.1.

34-16

     (D) A participating candidate shall receive clean elections funding for the primary

34-17

election campaign period on the date on which the board of elections certifies the candidate as a

34-18

participating candidate or the first day of the primary election campaign period, whichever is

34-19

later.

34-20

     (E) A participating candidate who is eligible for general election funding shall receive

34-21

clean elections funding for the general election campaign period within forty-eight (48) hours

34-22

after certification of the primary election results. If the primary election results for different

34-23

parties are certified on different days, all participating candidates that are eligible for general

34-24

election funding shall receive general election funds within forty-eight (48) hours of the last

34-25

party’s primary certification.

34-26

     17-25-28.1. Clean elections funding amounts. -- (A)(1) For participating candidates

34-27

who are party candidates, the amount of clean elections funding in a contested primary election

34-28

is:

34-29

     (a) eight thousand dollars ($8,000) for a candidate running for the office of

34-30

representative;

34-31

     (b) sixteen thousand dollars ($16,000) for a candidate running for the office of senator;

34-32

     (c) one million five hundred thousand dollars ($1,500,000) for a candidate running for the

34-33

office of governor; and

34-34

     (d) six hundred thousand dollars ($600,000) for a candidate running for general office

35-1

other than governor.

35-2

     (2) The clean elections funding amount for a participating party candidate in an

35-3

uncontested primary election is twenty-five percent (25%) of the amount provided in a contested

35-4

primary election.

35-5

     (3) When a party candidate files to be a participating candidate, the candidate may

35-6

declare an expectation that the general election will not be contested. A participating candidate in

35-7

a contested primary election that makes this declaration shall receive the general election clean

35-8

elections funding amount instead of the primary election clean elections amount. During the

35-9

general election campaign period, a participating candidate who declared that the general election

35-10

would not be contested shall only be eligible only for the uncontested general election clean

35-11

elections amount, regardless of whether the general election is in fact contested. No matching

35-12

funds shall be available during the general election for candidates that have declared that the

35-13

general election would not be contested.

35-14

     (4) In a contested general election in which a participating candidate is a party candidate,

35-15

if the participating candidate or all the candidates of that party that competed for nomination in

35-16

the primary election combined received at least twenty percent (20%) of the total number of votes

35-17

cast for all candidates seeking that office in the just-held primary election, or if the candidate of

35-18

the participating candidate’s party received at least twenty percent (20%) of the total vote in the

35-19

previous general election, the participating candidate shall receive the full amount of clean

35-20

elections funding for the general election. The full amount of clean elections funding for the

35-21

general election is:

35-22

     (a) twelve thousand dollars ($12,000) for a candidate for representative;

35-23

     (b) twenty-four thousand dollars ($24,000) for a candidate for senator;

35-24

     (c) two million two hundred fifty thousand dollars ($2,250,000) for a candidate for

35-25

governor; and

35-26

     (d) nine hundred thousand dollars ($900,000) for a candidate for general office other than

35-27

governor.

35-28

     (5) In a contested general election in which a participating candidate is a party candidate

35-29

who is not entitled to the full amount of clean elections funding for the general election under

35-30

subparagraph (4), the participating candidate shall receive public funding based on the higher of

35-31

the ratio of the percentage of votes received in the primary election by candidates of the

35-32

participating candidate’s party to twenty percent (20%) or the ratio of the percentage of the vote

35-33

received by the nominee of the participating candidate’s party in the previous general election to

35-34

twenty percent (20%).

36-1

     (6) The clean elections funding amount in an uncontested general election is ten percent

36-2

(10%) of the amount provided for in a contested general election for the same office.

36-3

     (B)(1) The clean elections funding available for a participating independent candidate in

36-4

a primary election period is twenty-five percent (25%) of the amount received by a party

36-5

candidate in a contested primary election.

36-6

     (2) The clean elections funding amount for a participating independent candidate in the

36-7

general election is the same as the full amount received by a participating party candidate in the

36-8

general election.

36-9

     (3) If the general election is uncontested, the funding amount is ten percent (10%) of the

36-10

amount provided for in a contested general election for the same office.

36-11

     (C) For every election cycle after the first election cycle under this act, the board of

36-12

elections shall modify all clean elections funding amounts based on the rate of inflation or the

36-13

cost-of-living (COLA) index as determined by the United States government during a twenty-four

36-14

(24) month period ending in the immediately preceding year.

36-15

     17-25-29.1. Matching funds. -- (A) A nonparticipating candidate shall file with the

36-16

board of elections a report, signed under penalty of perjury, within five (5) days of when the

36-17

candidate’s expenditures and obligations to make expenditures, or contributions received,

36-18

whichever is higher, exceeds eighty percent (80%) of the clean elections funding amount received

36-19

by any opponent. After the first such report, the nonparticipating candidate must file an

36-20

additional report within five (5) days of whenever the aggregate unreported expenditures and

36-21

obligations or contributions exceed five percent (5%) of the clean elections funding amount of

36-22

any opponent. Within twenty (20) days of the election, nonparticipating candidates must report

36-23

one percent increments within twenty-four (24) hours. All nonparticipating candidates must file

36-24

at least one report more than twenty (20) days prior to the election, at least one report within

36-25

twenty (20) days but more than seven (7) days prior to the election, and at least one report within

36-26

seven (7) days but more than forty-eight (48) hours before the election.

36-27

     (B) Any person expending or entering into an obligation to spend at least one hundred

36-28

dollars ($100) on independent expenditures must file a report, signed under penalty of perjury,

36-29

listing the independent expenditures, and itemizing the amounts spent or obligated and the

36-30

candidates supported or opposed, with the board of elections within five (5) days of the

36-31

expenditure. An additional report must be filed for every aggregate one hundred dollars ($100)

36-32

spent or obligated. Independent expenditures within twenty (20) days of the election must be

36-33

reported within twenty-four (24) hours.

36-34

     (C) Using the reports filed and any additional information available, the board of

37-1

elections shall track the opposing funds spent with regard to each participating candidate. When

37-2

the opposing funds exceed the clean elections funds provided to the participating candidate, the

37-3

board of elections shall make additional clean elections funds available to the candidate to match

37-4

the opposing funds. No participating candidate may receive more than two hundred percent

37-5

(200%) of the initial allotment of clean elections funds, for a total of three hundred percent

37-6

(300%) of the initial clean elections allotment. Matching funds provided during the primary

37-7

election campaign period do not count against eligibility for matching funds during the general

37-8

election campaign period.

37-9

     (D) Any failure to file a required report or underreporting is punishable by a civil fine

37-10

payable by the candidate from personal funds of three (3) times the amount that was not reported.

37-11

Should a nonparticipating candidate fail to file a required report, any participating opponents shall

37-12

be entitled to the maximum amount of matching funds.

37-13

     (E) The board of elections may reduce the amount of matching funds provided to a

37-14

participating candidate upon concluding that, due to a deliberate effort by any person to

37-15

manipulate the matching fund system, the opposing funds calculation does not accurately reflect

37-16

the opposition faced by the participating candidate. The board shall inform the participating

37-17

candidate of its reasoning in a detailed written statement and shall be subject to judicial review.

37-18

     17-25-31. Administration and dispersal of money from the fund. -- (A) Upon

37-19

determining that a candidate has met all the requirements for becoming a participating candidate

37-20

as provided for in this act, the board of elections shall issue to the candidate a “clean elections

37-21

debit card” and a line of debit entitling the candidate and members of the candidate’s staff to

37-22

draw clean elections funds from a board of elections account to pay for all campaign costs and

37-23

expenses up to the amount of clean elections funding the candidate has received.

37-24

     (B) Neither a participating candidate nor any other person on behalf of a participating

37-25

candidate shall pay campaign costs by cash, check, money order, loan or by any other means

37-26

other than the clean elections debit card, except for petty cash expenditures as defined in

37-27

paragraph (C).

37-28

     (C) Cash amounts of one hundred dollars ($100) or less per day may be drawn on the

37-29

clean elections debit card and used to pay expenses of no more than twenty-five dollars ($25.00)

37-30

each. Records of all such expenditures shall be maintained and reported to the board of elections.

37-31

     17-25-32. Political party contributions and expenditures. -- (A) Participating

37-32

candidates may accept monetary or in-kind contributions from political parties provided that the

37-33

aggregate amount of such contributions from all political party committees does not exceed the

37-34

equivalent of five percent (5%) of the original clean elections funding allotment for that office for

38-1

that election. These contributions and contributions under this aggregate amount to

38-2

nonparticipating candidates shall not be counted as opposing funds for any candidate. Additional

38-3

independent expenditures by political parties beyond the contributions provided for by this

38-4

section shall be counted towards opposing funds.

38-5

     (B) Expenditures or contributions by a political party that are made to or on behalf of one

38-6

or more of the party’s candidates during the primary or general election campaign periods shall

38-7

be reported under the requirements of section 17-25-29.1(B).

38-8

     (C) Nothing in this act shall prevent political party funds from being used for: general

38-9

operating expenses of the party; conventions; nominating and endorsing candidates; identifying,

38-10

researching, and developing the party’s position on issues; party platform activities; non-

38-11

candidate-specific voter registration; non-candidate-specific get-out-the-vote drives; travel

38-12

expenses for non-candidate party leaders and staff; and other non-candidate-specific party

38-13

building activities.

38-14

     17-25-33. Transition rule. -- During the first election cycle that occurs after the effective

38-15

date of this act, a candidate may be certified as a participating candidate, notwithstanding the

38-16

acceptance of contributions or making of expenditures from private funds before the date of

38-17

enactment that would, absent this section, disqualify the candidate as a participating candidate,

38-18

provided that:

38-19

     (A) Any private funds accepted but not expended before the effective date of this act

38-20

shall be:

38-21

     (1) returned to the contributor;

38-22

     (2) held in a special campaign account and used only for retiring a debt from a previous

38-23

campaign; or

38-24

     (3) submitted to the board of elections for deposit in the clean elections fund.

38-25

     17-25-34. Severability. -- If any provision of this act or the application thereof to any

38-26

person or circumstances shall be held invalid, such invalidity shall not affect other provisions or

38-27

applications of the act, which can be given effect without the invalid provision or application, and

38-28

to this end the provisions of the act are declared to be severable.

38-29

     SECTION 4. This act shall take effect upon passage.

=======

LC01787

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO ELECTIONS -- RHODE ISLAND CLEAN ELECTIONS ACT

***

39-1

     This act would establish the Rhode Island Clean Elections Act. This act would address

39-2

many aspects regarding funding for and contributions to candidates for public office.

39-3

     This act would take effect upon passage.

=======

LC01787

=======