Senate Bill No. 498

(By Senator Grubb)

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[Introduced February 20, 1995;
referred to the Committee on the Judiciary;

and then to the Committee on Finance.]
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A BILL to amend and reenact section eight, article five, chapter three of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact sections five-b and five-f of said article; to amend article eight of said chapter by adding thereto a new section, designated section eight-a; and to further amend said chapter by adding thereto a new article, designated article eight-a, all relating to the regulation and control of elections and campaign activities; raising filing fees for candidates in certain instances; providing that candidates for public office file sworn financial statements with the secretary of state and the clerk of the county commission in certain instances; and adopting a code of fair campaign practices.

Be it enacted by the Legislature of West Virginia:
That section eight, article five, chapter three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that sections five-b and five- f of said article be amended and reenacted; that article eight of said chapter be amended by adding thereto a new section, designated section eight-a; and that said chapter be amended by adding thereto a new article, designated article eight-a, all to read as follows:
ARTICLE 5. PRIMARY ELECTIONS AND NOMINATING PROCEDURES.

§3-5-8. Filing fees and their disposition; penalties.

Every person who becomes a candidate for nomination for or election to office in any primary election, shall, at the time of filing the certificate of announcement as required in this article, pay a filing fee as follows:
(a) A candidate for president of the United States, for vice-president of the United States, for United States senator, for member of the United States house of representatives, for governor and for all other state elective officers shall pay a fee equivalent to one three percent of the annual salary of the office for which the candidate announces: Provided, That in lieu of the requirements of this subsection, a candidate for governor and all other state elective officers may pay a fee equivalent to one percent of the annual salary of the office for which the candidate announces if such candidate subscribes to the code of fair campaign practices set forth in section three, article eight-a of this chapter.
(b) A candidate for the office of judge of a circuit court and judge of any court of record of limited jurisdiction shall pay a fee equivalent to one three percent of the total annual salary of the office paid from any and all sources for which the candidate announces:
Provided, That in lieu of the requirements of this subsection, a candidate for the office of judge of a circuit court and judge of any court of record of limited jurisdiction may pay a fee equivalent to one percent of the total annual salary of the office paid from any and all sources for which the candidate announces if such candidate subscribes to the code of fair campaign practices set forth in section three, article eight-a of this chapter.
(c) A candidate for member of the House of Delegates or state senator shall pay a fee of thirty three dollars, and a candidate for state senator shall pay a fee of sixty six dollars: equal to three percent of the total annual salary of the office: Provided, That in lieu of the requirements of this subsection, a candidate for member of the House of Delegates or state senator may pay a fee equal to one percent of the total annual salary of the office if such candidate subscribes to the code of fair campaign practices set forth in section three, article eight-a of this chapter.
(d) Any candidate for any office identified in subsections (b) and (c) of this section who elects to subscribe to the code of fair campaign practices and avail himself or herself to the lower filing fees shall plainly indicate the fact that he or she has subscribed to the code in all campaign literature and advertising disseminated to the public.
(e) In the event a candidate paying a reduced filing fee resulting from subscription to the code of fair campaign practices exceeds the spending limits contained therein, such candidate shall pay a civil penalty to the appropriate filing officer equivalent to three times the amount by which the candidate exceeds said limits.
(d) (f) A candidate for sheriff, prosecuting attorney, circuit clerk, county clerk, assessor, member of the county court commission and member of the county board of education shall pay a fee equivalent to one percent of the annual salary of the office for which the candidate announces: Provided, That the fee in no case shall be less than five dollars. A candidate for any other county office shall pay a fee of five dollars;
(e) (g) A candidate for justice of the peace magistrate in districts having a population of five thousand or less shall pay a fee of ten dollars; in districts having a population of more than five thousand and not more than twenty-five thousand, fifteen dollars; and in districts having more than twenty-five thousand population, each candidate shall pay a fee of twenty-five dollars;
(f) A candidate for constable in districts having a population of five thousand or less shall pay a fee of five dollars; in districts having a population of more than five thousand and not more than twenty-five thousand, ten dollars; and in all other districts fifteen dollars;
(g) (h) Delegates to the national convention of any political party shall pay the following filing fees:
A candidate for delegate-at-large shall pay a fee of twenty dollars; and a candidate for delegate from a congressional district shall pay a fee of ten dollars;
(h) (i) Candidates for members of political executive committees and other political committees shall pay the following filing fees:
A candidate for member of a state executive committee of any political party shall pay a fee of ten dollars; a candidate for member of a county executive committee of any political party shall pay a fee of one dollar; and a candidate for member of a congressional, senatorial or delegate district committee of any political party shall pay a fee of one dollar.
Candidates filing for an office to be filled by the voters of one county shall pay the filing fee to the clerk of the circuit court, and candidates filing for an office to be filled by the voters of more than one county shall pay the filing fee to the secretary of state at the time of filing their certificates of announcement, and no certificate of announcement shall be received until the filing fee is paid.
All moneys received by such clerk from such fees shall be credited to the general county fund. Moneys received by the secretary of state from fees paid by candidates for offices to be filled by all the voters of the state shall be deposited in a special fund for that purpose and shall be apportioned and paid by him to the several counties on the basis of population, and that received from candidates from a district or judicial circuit of more than one county shall be apportioned to the counties comprising the district or judicial circuit in like manner. When such moneys are received by sheriffs, it shall be credited to the general county fund.

§3-8-5b. Where financial statements shall be filed.
The sworn financial statements provided for in sections five and five-a shall be filed with the secretary of state by candidates for state and other offices to be nominated or elected by the voters of a political division greater than a county, and with the clerk of the county commission by all other candidates for offices to be nominated or elected.
(a) Candidates for nomination or election by the voters to state offices shall file the sworn financial statements required in this article with the secretary of state.
(b) Candidates for nomination or election by the voters to: (i) Seats in either the state Senate or the House of Delegates; and (ii) a seat on the bench of any judicial circuit shall file the sworn financial statement required in this article with the secretary of state and the clerk of the county commission in their county of residence.
(c) Candidates for nomination or election by the voters to all other offices not expressly provided for in subsection (a) or
(b) of this section shall file the sworn financial statement required in this article with the clerk of the county commission in their county of residence.

§3-8-5f. Loans to candidates, organizations or persons for
election purposes; limitation on recovery of certain loans.
(a) Every candidate, financial agent, person or association of persons or organization advocating or opposing the nomination or election of any candidate or the passage or defeat of any issue or item to be voted upon, who receives money or any other thing of value as a loan toward election expenses shall execute, in writing, an agreement with the individual, lending institution or organization making the loan. Such The agreement shall state the date and amount of the loan, the terms, including interest and repayment schedule, and a description of the collateral, if any, and the full names and addresses of all parties to the agreement. A copy of the agreement shall be filed with the financial statement next required after the loan is executed.
(b)(1) All money, services, or other things of value which are loaned to a candidate or a candidate's committee shall be deemed a contribution from the lender and the guarantor of the loan and are subject to the contribution limits in this article: Provided, however, that a loan made to a candidate which meets the following requirements are not subject to the contribution limits in this article:
(A) The loan is made by a commercial lending institution;
(B)The loan is made in the regular course of business;
(C)The loan is made on the same terms ordinarily available to members of the public; and
(D)The loan is secured or guaranteed by money or real or personal property which does not exceed a lawful contribution; except that when the money or real or personal property guaranteeing or securing the loan is owned by a candidate or a candidate's immediate family it may not exceed the loan repayment amounts for the offices designated in subsection (c) of this section.
(c) The following limitations apply to the repayment of loans made by a candidate or the candidate's immediate family:
(1) A candidate for governor, or a member of the candidate's immediate family who has made a loan to the candidate's committee shall not recover more than fifty thousand dollars in the aggregate for such loans outstanding after the election.
(2) A candidate for nonfederal state wide elective office other than governor, or a member of the candidate's immediate family who has made a loan to the candidate's committee shall not recover more than twenty-five thousand dollars in the aggregate for such loans outstanding after the election.
(3) A candidate for office other than those specified or a member of the candidate's immediate family who has made a loan to the candidate's committee shall not recover more than ten thousand dollars in the aggregate for such loans outstanding after the election.
(d) A campaign debt incurred on behalf of a candidate or candidate's committee shall be deemed a loan to the candidate or candidate's committee subject to the repayment limitation of this subsection if the credit was extended based upon the personal reputation, standing in the community or wealth of the candidate, of a member of the candidate's immediate family, or of one or more of the members of the candidate's campaign committee.
The balance of debt shall be the responsibility of any cosigner of the note. Any outstanding balance of a loan which is discharged shall be considered a contribution to the candidate.

§3-8-8a. Limitation on use of political committee contributions.

(a) No individual who is a candidate for state or local office or the financial agent of a campaign committee acting on behalf of such candidate may receive and accept more than twenty- five percent of the dollar amounts set forth in this section from political committees during any primary or general election campaign as campaign contributions.
(b) For purposes of this section, the limitation set forth in subsection (a) of this section shall apply to the following total campaign contribution amounts for the offices listed:
PRIMARYGENERAL
Governor $1,000,000 $1,000,000
Constitutional Officers 100,000 100,000
Supreme Court of Appeals 125,000 125,000
State Senate 25,000 25,000
House of Delegates 12,500 12,500
Circuit Judge 40,000 40,000
(c) For purposes of this section, "political committee" includes:
(1) Any committee, club, association, or other group of persons which receives contributions for political candidates aggregating in excess of one thousand dollars during a calendar year or which makes expenditures aggregating in excess of one thousand dollars during a calendar year; or
(2) Any separate segregated fund established under the provisions of paragraph (C), subdivision (1), subsection (b), section eight of this article.
(d) For purposes of this section, "political committee" does not include:
(1) A candidate's own campaign committee; or
(2) Any state, county or local political party committee.
ARTICLE 8A. FAIR CAMPAIGN PRACTICES.
§3-8A-1. Legislative findings, purpose, declaration and intent.
The Legislature hereby finds and declares that every candidate for public office should follow the basic principles of decency, honesty and fairness in the course of their campaign practices. It is the further goal of the legislature that candidates for public office will voluntarily subscribe and adhere to the code of fair campaign practices and agree to abide by the spending limits recommended in the code. Therefore the legislature declares that it is necessary to adopt the code of fair campaign practices as a standard for which all candidates for public office should aspire and as a guideline for voters to determine fair play in the conduct of a campaign for public office.

§3-8A-2. Definitions.
As used in this article, unless otherwise specified:
(a) "Campaign advertising or communication" means a communication authorized by a candidate or a candidate's committee for the purpose of advocating the nomination, election or defeat of a candidate;
(b) "Candidate for public office" means an individual who has filed a precandidacy statement according to the provisions of section five-e, article eight of this chapter, has qualified to have his or her name listed on the ballot of any election, or who has declared his or her intention to seek nomination or election through a petition or write-in procedure for any state, regional, county, municipal, or district office which is to be filled at an election;
(c) "Code" means the code of fair campaign practices; and
(d) "Political committee" shall include all those persons and entities required to keep accounts and file financial statements pursuant to the provisions of section five, article eight of this chapter.
§3-8A-3. Code of fair campaign practices.
At the time an individual files his or her precandidacy statement, certificate of announcement, nominating petition, and other paper evidencing an intention to be a candidate for public office, or when an individual files the statement of organization of a political committee, the circuit clerk, county clerk, or secretary of state receiving such filing shall furnish the individual with a form containing the text of the code fir campaign practices and the provisions of this article. The form shall state that subscription to the code is voluntary.
The text of the code shall read as follows:
CODE OF FAIR CAMPAIGN PRACTICES

I SHALL CONDUCT this campaign openly and publicly, discussing the issues as I see them, presenting positions and policies with sincerity and frankness, and criticizing without fear or favor the record and policies of candidates or political parties which merit such criticism.
I SHALL NOT USE OR PERMIT the use of character defamation, whispering campaigns, libel, slander or scurrilous attacks on any candidate or his or her personal family life.
I SHALL CONDEMN the use of campaign advertising or communication of any sort which misrepresents, distorts, or otherwise falsifies the facts regarding any candidate or issue raised in my campaign.
I SHALL NOT USE OR PERMIT any appeal to negative prejudice based on race, sex, sexual orientation, religion, national origin, physical disability, physical health status or age.
I SHALL NOT USE OR PERMIT any dishonest or unethical practice which tends to corrupt or undermine our American system of free elections, or which hampers or prevents the full and free expression of the will of the voters including acts intended to hinder or prevent any eligible person from registering to vote, or from voting, or which is intended to affect voting through the buying of influence or votes.
I SHALL NOT COERCE election help or campaign contributions for myself or my committee or for any other candidate or any ballot issue from my employees or from any person under my authority, influence or control.
I SHALL IMMEDIATELY AND PUBLICLY REPUDIATE support on behalf of or in opposition to any candidacy deriving from any individual or group which resorts to the methods and tactics which I condemn. I shall accept responsibility to take firm action against any subordinate or associate who violates any provisions of this code or the laws governing elections.
I PERSONALLY SUPPORT a limit on campaign expenditures that when reasonable, sufficient and fairly applied, does not limit or restrict the expression of ideas of the candidate or others on behalf of the candidate, but instead challenges individuals to engage in open dialogue on the issues rather than merely to purchase the excessive repetition of images and slogans.
ACCORDINGLY, IF I AM A CANDIDATE for one of the offices listed below, I will, in conjunction with the committee or committees organized on my behalf, adhere to the following limit on campaign spending specified for the office I seek:
PRIMARYGENERAL
Governor $1,000,000 $1,000,000
Constitutional Officers 100,000 100,000
Supreme Court of Appeals 125,000 125,000
State Senate 25,000 25,000
House of Delegates 12,500 12,500
Circuit Judge 40,000 40,000
Expenditures which do not exceed the limits designated for the primary election may not be added to the limits for the general election.
I SHALL DEFEND AND UPHOLD the right of every qualified voter to full and equal participation in the electoral process.
AS A PUBLIC OFFICIAL, I PLEDGE to conduct my official duties in the public interest of all people without discrimination against any person, faction or group. Furthermore, as a public official I pledge not to utilize my office personnel or equipment on behalf of any ballot issue or candidate.
I, the undersigned, a candidate for election to public office in the State of West Virginia, or the chairperson of a political committee supporting one or more candidates for election, hereby voluntarily endorse, subscribe to, and solemnly pledge myself to conduct this campaign in accordance with the above principles and practices.
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DateSignature
_______________________________ ______________________________
Candidate for/Committee Name Address and City

§3-8A-4. Forms.

The secretary of state shall prescribe forms containing the text of the code and shall furnish the forms to the circuit clerks, county clerks and municipal clerks or recorders in quantities and at times requested by the clerks.
§3-8A-5. Retention of forms; public inspection.
The officer receiving the filing shall accept, at all times prior to the election, all completed forms evidencing subscription to the code.
Forms filed with the circuit clerk shall be immediately forwarded to the county clerk. The county clerk, secretary of state, and municipal recorder or clerk shall retain such forms filed with them for public inspection until one hundred eighty days after the general election.
§3-8A-6. Voluntary subscription to the code.
Subscription to and adherence to the provisions of the code set forth in this article is voluntary and in no event shall any person be required to subscribe to, adhere to, or endorse the code.

NOTE: The purpose of this bill is to increase filing fees for candidates in certain instances; require that candidates file sworn financial statements with the secretary of state and clerk of the county commission in certain instances; regulate the recovery of loans by candidates for public office and their immediate family members; and adopt a code of fair campaign practices establishing guidelines for gauging permissible conduct during a political campaign.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

Sections 3-8-8a and 3-8A are new; therefore strike-throughs and underscoring have been omitted.