It is enacted by the General Assembly as follows:

SECTION 1. Section 17-1-2 of the General Laws in Chapter 17-1 entitled "General Provisions" is hereby amended to read as follows:

{ADD 17-1-2. Definitions. -- ADD} For the purposes of this title, except as may otherwise be required by the context:

(a) "Election" shall mean the filling of any public office or the determination of any public question by vote of the electorate, and shall include without limitation thereto any state, town, or city office or question, and any political party primary election for the nomination of any candidate for public office; except that it shall not include a financial town meeting or a meeting to elect officers of a fire, water, or sewer district;

(b) "General election" shall mean an election held on the first Tuesday next after the first Monday in November in even numbered years for the election of members of the general assembly and for the election of general officers {DEL ; DEL} {ADD and/or for the election of presidential electors for President/Vice-President of the United States. ADD}

(c) "General officer" shall mean an officer designated as a general officer by chapter 2 of this title

(d) "Local election" shall mean any election limited to the electorate of any city or town, or any part thereof, at which any city, town, ward, or district officers are to be chosen, or any elective meeting at which a question is to be submitted to the voters of a city, town, or any subdivision thereof but it shall not include a financial town meeting;

(e) "Local board" shall mean a town or city board of canvassers, board of canvassers and registration, canvassing authority, or any other local board, commission, or officer empowered by law to have custody of the permanent registration records;

(f) "Political party" or "party" shall mean any political organization which at the preceding general election nominated a candidate for governor, and whose candidate for governor at the election polled at least five per cent (5%) of the entire vote cast in the state for governor;

(g) "Primary election" shall mean any election to select the candidates of a political party;

(h) "Proposition" or "public question" shall mean any question put to referendum of the electorate of the entire state or any part thereof;

(i) "Polling place" shall mean the room in which any election or elective meeting is conducted;

(j) "State board" shall mean the state board of elections constituted pursuant to this title;

(k) "Special election" shall mean any election other than a local election or primary election which is not held on a general election day;

(l) "Vacancy in office" shall mean the condition resulting from any failure to elect or appoint an eligible and qualified person to public office, or the failure of any person duly elected or appointed to qualify, or from the death, resignation, or removal of an incumbent prior to the expiration of his or her term of office and where no fixed term is prescribed upon the death, resignation, or removal;

(m) "Voting list" shall mean the original permanent registration cards provided and maintained in locked binders pursuant to this title and in the event of the loss, destruction, or unavailability of any of these cards, the duplicate permanent registration cards provided and maintained pursuant to this title to the extent that the original card or cards shall have been lost, destroyed, or unavailable and until it or they may be replaced;

(n) "Party member" shall mean any person who is a member of a designated political party pursuant to section 17-9-26.

(o) "Qualified voter" shall mean any person who is eligible to vote under the requirements of age, residence, and citizenship prescribed by the state constitution and who is duly registered to vote, or who is exempt from registration, pursuant to this title, and who is not otherwise disqualified as a voter pursuant to law;

(p) "Party voter" shall mean any qualified voter who is eligible to vote at the primary election of a political party;

(q) "State election" shall mean any election at which any presidential electors, senator or representatives in congress, general officers of the state, or members of the general assembly are to be chosen, or at which a public question or an amendment to the Constitution is submitted to the electors of the state;

(r) "Warden" shall include "moderator," and vice versa;

(s) Words importing the masculine gender shall include the feminine gender.

(t) "State officer" shall mean the governor, lieutenant-governor, secretary of state, attorney-general, general treasurer, state senator, and state representative.

SECTION 2. Sections 17-25-3, 17-25-19 and 17-25-20 of the General Laws in Chapter 17-25 entitled "Rhode Island Campaign Contributions and Expenditures Reporting" are hereby amended to read as follows:

{ADD 17-25-3. Definitions. -- ADD} As used in this chapter unless a different meaning clearly appears from the context:

(a) The term "candidate" means any individual who undertakes any action, whether preliminary or final, which is necessary under the law to qualify for nomination for election, or election to public office, and/or any individual who receives a contribution or makes an expenditure or gives his or her consent for any other person to receive a contribution or make an expenditure with a view to bringing about his or her nomination or election to any public office, whether or not the specific public office for which he or she will seek nomination or election is known at the time the contribution is received or the expenditure is made and whether or not he or she has announced his or her candidacy or filed a declaration of candidacy at that time.

(b) The terms "contributions" and "expenditures" include all transfers of money, paid personal services, or other thing of value to or by any candidate, committee of a political party, or political action committee. A loan shall be considered a contribution of money until it is repaid.

(c) The term "election" means any primary, general, or special election or town meeting for any public office of the state, municipality, or district or for the determination of any question submitted to the voters of the state, municipality, or district.

(d) The term "paid personal services" means personal services of every kind and nature, the cost or consideration for which is paid or provided by someone other than the committee or candidate for whom the services are rendered, but shall not include personal services provided without compensation by persons volunteering their time.

(e) The term "testimonial affair" means an affair of any kind or nature including, but not limited to, cocktail parties, breakfasts, luncheons, dinners, dances, picnics, or similar affairs expressly and directly intended to raise campaign funds in behalf of a candidate to be used for nomination or election to a public office in this state, or expressly and directly intended to raise funds in behalf of any state or municipal committee of a political party, or expressly and directly intended to raise funds in behalf of any political action committee.

(f) The term "other thing of value" means any item of tangible real or personal property, of a fair market value in excess of one hundred dollars ($100).

(g) The term "state" means state of Rhode Island.

(h) The term "public office" means any state, municipal, school, or district office or other position that is filled by popular election , except political party offices. "Political party offices" shall mean any state, city, town, ward, or representative or senatorial district committee office of a political party or delegate to a political party convention, or any similar office.

(i) The term "person" means an individual, partnership, committee, association, corporation, and any other organization.

(j) The term "political action committee" means any group of two (2) or more persons which accepts any contributions to be used for advocating the election or defeat of any candidate or candidates or to be used for advocating the approval or rejection of any question or questions submitted to the voters. Only political action committees which have accepted contributions from fifteen (15) or more persons in amounts of ten dollars ($10.00) or more within an election cycle shall be permitted to make contributions, and said committees must make contributions to at least five (5) or more candidates.

(k) The term "election cycle" means the twenty-four month period commencing on January 1 of odd number years and ending on December 31 of even number years {DEL . DEL} {ADD ; provided, however, with respect to the public financing of election campaigns of general officers under sections 17-25-19, 17-25-20, 17-25-25, the term "election cycle" shall mean the forty-eight (48) month period commencing on January 1 of odd numbered years and ending December 31 of even numbered years. ADD}

(l) The term "business entity" means any corporation, whether for profit or not for profit, domestic corporation or foreign corporation, as defined in section 7-1.1-2 of the general laws, financial institution, cooperative, association, receivership, trust, holding company, firm, joint stock company, public utility, sole proprietorship, partnership, limited partnership, or any other entity recognized by the laws of the United States and/or the state of Rhode Island for the purpose of doing business. The term business entity shall not include a political action committee organized pursuant to this chapter or a political party committee or an authorized campaign committee of a candidate or office holder.

{ADD 17-25-19. Public financing of election campaigns -- Outlined. [Effective January 1, 1993.] -- ADD} To effectuate the purpose stated in section 17-25-18, public funds shall be made available under the terms and conditions of this section and sections 17-25-20 through 17-25-27 to qualifying candidates for general office who agree to abide by a limitation on the total amount of campaign contributions received and expenditures made for election purposes. The nominees for general office of each political party as defined in section {DEL 17-12.1-12 DEL} {ADD 17-1-2(F) ADD} of the general laws and independent candidates for those offices who meet the requirements set forth in section 17-25-20(6) shall be eligible to receive two dollars ($2.00) of public funds for each qualified dollar ($1.00) of private funds contributed which do not exceed an aggregate of {DEL two hundred and fifty dollars ($250) DEL} {ADD five hundred dollars ($500) ADD} from a single source within an election cycle and one dollar ($1.00) of public funds for each qualified dollar ($1.00) of private funds contributed which exceed an aggregate of {DEL two hundred and fifty dollars ($250) DEL} {ADD five hundred dollars ($500) ADD} from a single source within an election cycle but do not exceed the limitations on aggregate contributions which are eligible to be matched set in subsection (3) of section 17-25-20 {DEL . DEL} {ADD subject to the provisions of section 17-25-20(2). ADD} The total amount of public funds provided to a candidate shall not exceed seven hundred fifty thousand dollars ($750,000) in matching funds for a total of one million five hundred thousand dollars ($1,500,000) for candidates for governor; and one hundred eighty-seven thousand five hundred dollars ($187,500) in matching funds for a total of three hundred seventy five thousand dollars ($375,000) for candidates for other general offices. In order to be eligible for matching public funds, each candidate at the time he or she becomes a candidate as defined in section 17-25-3(a), must sign a statement under oath pledging to comply with the limitations on campaign contributions and expenditures and with all of the terms and conditions set forth herein. Any candidate who fails to file the statement with his or her declaration for office shall be ineligible to receive public funds.

{ADD 17-25-20. Eligibility criteria for matching public funds. [Version as amended by P.L. 1992, ch. 21, section 1; P.L. 1992, ch. 203, section 1; effective until January 1, 1993.] -- ADD} In order to receive matching public funds under section 17-25-19 a qualifying candidate must comply with the following requirements:

(1) The candidate must sign a statement under oath, as provided for in the preceding section, pledging to comply with the limitations on contributions and expenditures for election purposes and with all the terms and conditions set forth herein. Upon the filing of the statement, a candidate for general office shall be bound to abide by the limitations on contributions and expenditures set forth in this chapter and may not withdraw from his or her obligation to abide by said restrictions.

(2) {DEL No DEL} {ADD Subject to the provisions of the succeeding paragraph of this subsection, no ADD} participating candidate for governor shall either receive or expend for election purposes more than a total of public and private funds in the sum of one million five hundred thousand dollars ($1,500,000) in an election cycle. No participating candidate for general office other than governor shall receive or expend for election purposes more than a total of public and private funds in the sum of three hundred seventy-five thousand dollars ($375,000) in an election cycle.

The aforementioned limitations on contributions received from private sources, matching funds available from the state and total permitted expenditures shall apply in the 1994 general election and shall increase by a percentage to be determined by the board of elections in January of each year in which a general election {ADD involving general offices ADD} is held, beginning in {DEL 1996 DEL} {ADD 1998 ADD} . In no case shall the increase exceed the total increase in the consumer price index since the month in which the previous general election {ADD involving general officer ADD} was held.

(3) Only the first {DEL one thousand dollars ($1,000) DEL} {ADD two thousand dollars ($2,000) ADD} of the aggregate private monetary contributions from a single private source within an election cycle shall be eligible for matching public funds {ADD for candidates for governor ADD} ; provided however the entire amount contributed shall be considered toward the dollar limits provided for in subsection {DEL (2) DEL} {ADD 17-25-20(2) ADD} herein.

Only the first {DEL five hundred dollars ($500) DEL} {ADD one thousand dollars ($1,000) ADD} of the aggregate private monetary contributions from a single private source within an election cycle shall be eligible for matching public funds for candidates for lieutenant governor, secretary of state, attorney general, and general treasurer; provided however the entire amount contributed shall be considered toward the dollar limits provided for in subsection {DEL (2) DEL} {ADD 17-25-20(2) ADD} herein.

Any private funds lawfully contributed during the current election cycle shall be eligible for matching public funds subject to the terms and conditions of this section, and private funds donated during a preceding election cycle shall not be eligible for such matching public funds.

(4) The direct costs incurred in connection with raising campaign funds on behalf of a candidate shall not be deemed to be expenditures for the purposes of the limitations on expenditures set forth in subsection (2). Direct costs shall include costs of printing and mailing invitations to fundraising events, solicitations for contributions, costs of hosting fundraising events, and travel to those events, but shall not include any portion of the salary or wages of campaign employees, nor the cost of any radio, television or print advertisement. The cost of a fundraising event must be less than the amount of money realized from the gross proceeds generated by the fundraising event in order to qualify for this exclusion.

(5) If a candidate who has accepted public funds makes expenditures in excess of the permitted amounts, the candidate shall be liable for a civil assessment payable to the state in an amount equal to three (3) times the amount of excess funds expended. In addition, the candidate shall be ineligible for further participation in the public financing program during the same election cycle.

(6) In order to receive payments under this section, any independent candidate shall first meet the following additional minimum requirements:

(a) Raise an amount in qualified private contributions equal to twenty percent (20%) of the total amount eligible to be matched for election as to the office sought;

(b) Receive private contributions from a minimum of two hundred fifty (250) individuals contributing at least twenty-five dollars ($25.00) each; and

(c) Comply with any and all applicable nomination provisions in this title of the general laws and qualify for the general election ballot pursuant to the process set forth in this title.

(7) No public funds received by any candidate pursuant to sections 17-25-19 through 17-25-27 of this chapter and no private funds used to qualify for the public funds shall be expended by the candidate for any purpose except to pay reasonable and necessary expenses directly related to the candidate's campaign.

(8) No public funds shall be expended by the candidate except for one or more of the following uses directly related to the campaign of the candidate:

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

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

(c) Purchase of advertising space in newspapers and regularly published magazines and periodicals;

(d) Payment of the cost of producing the material aired or displayed on radio, television, outdoor signs or billboards, and in newspapers, regularly published magazines and periodicals;

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

(f) Purchase of signs, bumper stickers, campaign buttons and other campaign paraphernalia;

(g) Payment of the cost of legal and accounting expenses incurred in complying with the public financing law and regulations as required by this chapter;

(h) Payment of the cost of telephone deposits, installation charges and monthly billings in excess of deposits;

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

(j) Payment of rent, utilities and associated expenses connected with the operation of an election headquarters or satellite election offices.

(9) Contributions received and expended by any candidate for the purpose of defraying any expense or satisfying any loan obligations incurred prior to January 1, 1991 by the candidate in furtherance of his or her candidacy in a previous election cycle (as defined in section 17-25-3(k)) shall not be counted toward any contribution or expenditure limitation in sections 17-25-18 through 17-25-27.

(10) No candidate who has elected to receive public funds shall contribute to or loan to his or her own campaign a sum in excess of five percent (5%) of the total amount which a candidate is permitted to expend in a campaign for said office pursuant to sections 17-25-19 and 17-25-21.

SECTION 3. This act shall take effect on January 1, 1995.