Introduced Version
House Bill 3032 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 3032
(By Delegates Skinner, Lawrence, Poore, Stowers,
Miley, Manchin, Hunt, Sponaugle, Lynch,
Reynolds and Fleischauer)
[Introduced March 21, 2013; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §3-8-1, §3-8-1a, §3-8-2 and §3-8-2b of
the Code of West Virginia, 1931, as amended; and to amend said
code by adding thereto a new section, designated §3-8-2d, all
relating to the regulation and control of elections; providing
certain legislative findings; amending definitions; amending
reporting requirements for independent expenditures; providing
for electronic filing of reports of independent expenditures;
and providing for disclosure of certain transfers of things of
value; authorizing the Secretary of State to promulgate rules
relating to reports of independent expenditures; retaining
prohibition on corporate contribution; and repealing the ban
on corporate independent expenditures.
Be it enacted by the Legislature of West Virginia:
That §3-8-1, §3-8-1a, §3-8-2 and §3-8-2b of the Code of West
Virginia, 1931, as amended, be amended and reenacted; and that said
code be amended by adding thereto a new section, designated §3-8-
2d, all to read as follows:
ARTICLE 8. REGULATION AND CONTROL OF ELECTIONS.
§3-8-1. Provisions to regulate and control elections.
(a) The Legislature finds that:
_____(1) According to the United States Census Bureau, West
Virginia's population as of 2012 is 1,808,344 was approximately
1,855,412, ranking 37th 38th among the fifty states.
(2) State Senate districts have a population of approximately
one hundred six thousand three hundred seventy-three 109,142, and
the average Delegate district has a population of approximately
thirty-one thousand, one hundred seventy-eight 27,693. The size of
these districts is substantially smaller than the United States
Senatorial and Congressional Districts.
(3) When the relatively small size of the state's legislative
and other voting districts is combined with the economics and
typical uses of various forms of electioneering communication,
history shows that nonbroadcast media is and will continue to be a
widely used means of making campaign related communications to
target relevant audiences. Consequently, nonbroadcast
communications are prevalent during elections.
(4) Disclosure provisions are appropriate legislative weapons
against the reality or appearance of improper influence stemming
from the dependence of candidates on large campaign contributions,
and the ceilings imposed accordingly serve the basic governmental
interest in safeguarding the integrity of the electoral process without directly impinging upon the rights of individual citizens
and candidates to engage in political debate and discussion.
(5) Disclosure of expenditures serve a substantial
governmental interest in informing the electorate and preventing
the corruption of the political process.
(6) Disclosure by persons and entities that make expenditures
for communications that expressly advocate the election or defeat
of clearly identified candidates, or perform its functional
equivalent, is a reasonable and minimally restrictive method of
furthering First Amendment values by public exposure of the state
election system.
(7) Failing to regulate nonbroadcast media messages would
permit those desiring to influence elections to avoid the
principles and policies that are embodied in existing state law.
(8) The regulation of the various types of nonbroadcast media
in addition to broadcast media, is tailored to meet the
circumstances found in the State of West Virginia.
(9) Nonbroadcast media such as mass mailings, telephone banks,
leaflets, pamphlets, flyers, outdoor advertising, or publications
in newspapers, magazines and other periodicals, newspapers,
magazines or other periodicals have proven to be effective means of
election communication in West Virginia. Broadcast, satellite and
nonbroadcast media have all been used to influence election
outcomes.
(10) Certain nonbroadcast communications, such as newspaper
inserts, can be more effective campaign methods than broadcast
media because such communications can be targeted to registered
voters or historical voters in the particular district. In
contrast, broadcasted messages reach all of the general public,
including person ineligible to vote in the district.
(11) Nonbroadcast media communications in the final days of a
campaign can be particularly damaging to the public's confidence in
the election process because they reduce or make impossible an
effective response.
(12) Identifying those funding nonbroadcast media campaigns in
the final days of a campaign may at least permit voters to evaluate
the credibility of the message.
(13) In West Virginia, contributions up to the amounts
specified in this article allow contributors to express their
opinions, level of support and their affiliations.
(14) In West Virginia, campaign expenditures by entities and
persons who are not candidates have been increasing. Public
confidence is eroded when substantial amounts of such money, the
source of which is hidden or disguised, is expended. This is
particularly true during the final days of a campaign.
(15) In West Virginia, contributions to political
organizations, defined in Section 527(e)(1) of the Internal Revenue
Code of 1986, substantially larger than the amounts permitted to be received by a candidate's political committee have been recorded
and are considered by the Legislature to be large contributions.
(16) Independent expenditures intended to influence
candidates' campaigns in the state are increasingly utilizing
nonbroadcast media to support or defeat candidates.
(17) Identification of persons or entities funding political
advertisements assists in enforcement of the contribution and
expenditure limitations established by this article and simply
informs voters of the actual identities of persons or entities
advocating the election or defeat of candidates.
(18) Identification of persons or entities funding political
advertisements allows voters to evaluate the credibility of the
message contained in the advertisement.
(19) Disclosure of the identity of persons or entities funding
political communications regarding candidates bolsters the right of
listeners to be fully informed.
(b) Political campaign contributions, receipts and
expenditures of money, advertising, influence and control of
employees, and other economic, political and social control factors
incident to primary, special and general elections shall be
regulated and controlled by the provisions of this article and
other applicable provisions of this chapter.
§3-8-1a. Definitions.
As used in this article, the following terms have the
following definitions:
(1) "Ballot issue" means a constitutional amendment, special
levy, bond issue, local option referendum, municipal charter or
revision, an increase or decrease of corporate limits or any other
question that is placed before the voters for a binding decision.
(2) "Broadcast, cable or satellite communication" means a
communication that is publicly distributed by a television station,
radio station, cable television system or satellite system.
(3) "Candidate" means an individual who:
(A) Has filed a certificate of announcement under section
seven, article five of this chapter or a municipal charter;
(B) Has filed a declaration of candidacy under section twenty-
three, article five of this chapter;
(C) Has been named to fill a vacancy on a ballot; or
(D) Has declared a write-in candidacy or otherwise publicly
declared his or her intention to seek nomination or election for
any state, district, county or municipal office or party office to
be filled at any primary, general or special election.
(4) "Candidate's committee" means a political committee
established with the approval of or in cooperation with a candidate
or a prospective candidate to explore the possibilities of seeking
a particular office or to support or aid his or her nomination or election to an office in an election cycle. If a candidate directs
or influences the activities of more than one active committee in
a current campaign, those committees shall be considered one
committee for the purpose of contribution limits.
(5) "Clearly identified" means that the name, nickname,
photograph, drawing or other depiction of the candidate appears or
the identity of the candidate is otherwise apparent through an
unambiguous reference, such as "the Governor," "your Senator" or
"the incumbent" or through an unambiguous reference to his or her
status as a candidate, such as "the Democratic candidate for
Governor" or "the Republican candidate for Supreme Court of
Appeals."
(6) "Contribution" means a gift, subscription, loan,
assessment, payment for services, dues, advance, donation, pledge,
contract, agreement, forbearance or promise of money or other
tangible thing of value, whether conditional or legally
enforceable, or a transfer of money or other tangible thing of
value to a person, made for the purpose of influencing the
nomination, election or defeat of a candidate. An offer or tender
of a contribution is not a contribution if expressly and
unconditionally rejected or returned. A contribution does not
include volunteer personal services provided without compensation:
Provided, That a nonmonetary contribution is to be considered at fair market value for reporting requirements and contribution
limitations.
(7) "Corporate political action committee" means a political
action committee that is a separate segregated fund of a
corporation that may only accept contributions from its restricted
group as outlined by the rules of the State Election Commission.
_____(8) "Covered transfer" means any transfer or payment of funds
by a person, other than an individual, to another person if the
person making the transfer or payment:
_____(A) Designates, requests, or suggests that the amounts be used
for;
_____(i) Independent expenditures or electioneering communications;
or
_____(ii) Making a transfer to another person for the purpose of
making or paying for an independent expenditure or an
electioneering communication;
_____(B) Made such transfer or payment in response to a
solicitation or other request for a donation or payment for;
_____(i) The making of or paying for an independent expenditure or
electioneering communication; or
_____(ii) Making a transfer to another person for the purpose of
making or paying for such independent expenditure or electioneering
communication;
_____(C) Engaged in discussions with the recipient of the transfer
or payment regarding.
_____(i) The making of or paying for an independent expenditure or
electioneering communication; or
_____(ii) Donating or transferring any amount of such transfer or
payment to another person for the purpose of making or paying for
such independent expenditure or electioneering communication;
_____(D) Made independent expenditures or electioneering
communications in an aggregate amount of $50,000 or more during the
two year period ending on the date of the transfer or payment, or
knew or had reason to know that the person receiving the transfer
or payment made such disbursements in such an aggregate amount
during that two year period; or
_____(E) Knew or had reason to know that the person receiving the
transfer or payment would make independent expenditures or
electioneering communications in an aggregate amount of $50,000 or
more during the two year period beginning on the date of the
transfer or payment.
_____(9) "Covered Transfer EXCLUSIONS.-The term 'covered transfer'
does not include any of the following:
_____(A) A disbursement made by a person in the ordinary course of
any trade or business conducted by the person or in the form of
investments made by the person.
_____(B) A disbursement made by a person if-
_____(i) The person prohibited, in writing, the use of such
disbursement for independent expenditures, electioneering
communications, and covered transfers; and
_____(ii) The recipient of the disbursement agreed to follow the
prohibition and deposited the disbursement in an account which is
segregated from any account used to make independent expenditures,
electioneering communications, or covered transfers.
_____(10) "Covered Transfer" EXCEPTION FOR CERTAIN TRANSFERS AMONG
AFFILIATES-
_____(A) EXCEPTION FOR CERTAIN TRANSFERS AMONG AFFILIATES.-The term
"covered transfer" does not include an amount transferred by one
person to another person which is treated as a transfer between
affiliates under subparagraph (B) if the aggregate amount
transferred during the year by such person to that same person is
equal to or less than $50,000.
_____(B) DESCRIPTION OF TRANSFERS BETWEEN AFFILIATES- A transfer of
amounts from one person to another person shall be treated as a
transfer between affiliates if;
_____(i) One of the persons is an affiliate of the other person; or
_____(ii) Each of the persons is an affiliate of the same person;
except that the transfer shall not be treated as a transfer between
affiliates if one of the persons is established for the purpose of making independent expenditures or electioneering communications.
_____(C) DETERMINATION OF AFFILIATE STATUS- For purposes of
subparagraph (B), a person is an affiliate of another person if:
_____(i) The governing instrument of the person requires it to be
bound by decisions of the other person;
_____(ii) The governing board of the person includes persons who
are specifically designated representatives of the other person or
are members of the governing board, officers, or paid executive
staff members of the other person, or whose service on the
governing board is contingent upon the approval of the other
person; or
_____(iii) The person is chartered by the other person.
_____(8)(11) "Direct costs of purchasing, producing or
disseminating electioneering communications" means:
(A) Costs charged by a vendor, including, but not limited to,
studio rental time, compensation of staff and employees, costs of
video or audio recording media and talent, material and printing
costs and postage; or
(B) The cost of air time on broadcast, cable or satellite
radio and television stations, the costs of disseminating printed
materials, studio time, use of facilities and the charges for a
broker to purchase air time.
(9)(12) "Disclosure date" means either of the following:
(A) The first date during any calendar year on which any
electioneering communication is disseminated after the person
paying for the communication has spent a total of $5,000 or more
for the direct costs of purchasing, producing or disseminating
electioneering communications; or
(B) Any other date during that calendar year after any
previous disclosure date on which the person has made additional
expenditures totaling $5,000 or more for the direct costs of
purchasing, producing or disseminating electioneering
communications.
(10)(13) "Election" means any primary, general or special
election conducted under the provisions of this code or under the
charter of any municipality at which the voters nominate or elect
candidates for public office. For purposes of this article, each
primary, general, special or local election constitutes a separate
election. This definition is not intended to modify or abrogate
the definition of the term "nomination" as used in this article.
(11)(14) (A) "Electioneering communication" means any paid
communication made by broadcast, cable or satellite signal, or
published in any newspaper, magazine or other periodical that any
paid communication made by broadcast, cable or satellite signal,
mass mailing, telephone bank, leaflet, pamphlet, flyer or outdoor
advertising or published in any newspaper, magazine or other periodical that:
(i) Refers to a clearly identified candidate for Governor,
Secretary of State, Attorney General, Treasurer, Auditor,
Commissioner of Agriculture, Supreme Court of Appeals or the
Legislature;
(ii) Is publicly disseminated within:
(I) Thirty Sixty days before a primary election at which the
nomination for office sought by the candidate is to be determined;
or
(II) Sixty Ninety days before a general or special election at
which the office sought by the candidate is to be filled; and
(iii) Is targeted to the relevant electorate: Provided, That
for purposes of the general election of 2008 the amendments to this
article are effective October 1, 2008.
(B) "Electioneering communication" does not include:
(i) A news story, commentary or editorial disseminated through
the facilities of any broadcast, cable or satellite television or
radio station, newspaper, magazine or other periodical publication
not owned or controlled by a political party, political committee
or candidate: Provided, That a news story disseminated through a
medium owned or controlled by a political party, political
committee or candidate is nevertheless exempt if the news is:
(I) A bona fide news account communicated in a publication of general circulation or through a licensed broadcasting facility;
and
(II) Is part of a general pattern of campaign-related news
that gives reasonably equal coverage to all opposing candidates in
the circulation, viewing or listening area;
(ii) Activity by a candidate committee, party executive
committee or caucus committee, or a political action committee that
is required to be reported to the State Election Commission or the
Secretary of State as an expenditure pursuant to section five of
this article or the rules of the State Election Commission or the
Secretary of State promulgated pursuant to such provision:
Provided, That independent expenditures by a party executive
committee or caucus committee or a political action committee
required to be reported pursuant to subsection (b), section two of
this article are not exempt from the reporting requirements of this
section;
(iii) A candidate debate or forum conducted pursuant to rules
adopted by the State Election Commission or the Secretary of State
or a communication promoting that debate or forum made by or on
behalf of its sponsor;
(iv) A communication paid for by any organization operating
under Section 501(c)(3) of the Internal Revenue Code of 1986;
(v) A communication made while the Legislature is in session which, incidental to promoting or opposing a specific piece of
legislation pending before the Legislature, urges the audience to
communicate with a member or members of the Legislature concerning
that piece of legislation;
(vi)(v) A statement or depiction by a membership organization,
in existence prior to the date on which the individual named or
depicted became a candidate, made in a newsletter or other
communication distributed only to bona fide members of that
organization;
(vii) (vi) A communication made solely for the purpose of
attracting public attention to a product or service offered for
sale by a candidate or by a business owned or operated by a
candidate which does not mention an election, the office sought by
the candidate or his or her status as a candidate; or
(viii) (vii) A communication, such as a voter's guide, which
refers to all of the candidates for one or more offices, which
contains no appearance of endorsement for or opposition to the
nomination or election of any candidate and which is intended as
nonpartisan public education focused on issues and voting history.
(12)(15)"Expressly advocating" means any communication that:
(A) Uses phrases such as "vote for the Governor," "reelect
your Senator," "support the Democratic nominee for Supreme Court,"
"cast your ballot for the Republican challenger for House of Delegates," "Smith for House," "Bob Smith in '04," "vote Pro-Life"
or "vote Pro-Choice" accompanied by a listing of clearly identified
candidates described as Pro-Life or Pro-Choice, "vote against Old
Hickory," "defeat" accompanied by a picture of one or more
candidates, "reject the incumbent";
(B) Communications of campaign slogans or individual words,
that can have no other reasonable meaning than to urge the election
or defeat of one or more clearly identified candidates, such as
posters, bumper stickers, advertisements, etc., which say "Smith's
the One," "Jones '06," "Baker", etc; or
(C) Is susceptible of no reasonable interpretation other than
as an appeal to vote for or against a specific candidate.
(13)(16) "Financial agent" means any individual acting for and
by himself or herself, or any two or more individuals acting
together or cooperating in a financial way to aid or take part in
the nomination or election of any candidate for public office, or
to aid or promote the success or defeat of any political party at
any election.
(14)(17) "Fund-raising event" means an event such as a dinner,
reception, testimonial, cocktail party, auction or similar affair
through which contributions are solicited or received by such means
as the purchase of a ticket, payment of an attendance fee or by the
purchase of goods or services.
(15)(18) "Independent expenditure" means an expenditure by a
person:
(A) Expressly advocating the election or defeat of a clearly
identified candidate; and
(B) That is not made in concert or cooperation with or at the
request or suggestion of such candidate, his or her agents, the
candidate's authorized political committee or a political party
committee or its agents.
Supporting or opposing the election of a clearly identified
candidate includes supporting or opposing the candidates of a
political party. An expenditure which does not meet the criteria
for an independent expenditure is considered a contribution.
(16)(19) "Membership organization" means a group that grants
bona fide rights and privileges, such as the right to vote, to
elect officers or directors and the ability to hold office, to its
members and which uses a majority of its membership dues for
purposes other than political purposes. "Membership organization"
does not include organizations that grant membership upon receiving
a contribution.
(17)(20) "Name" means the full first name, middle name or
initial, if any, and full legal last name of an individual and the
full name of any association, corporation, committee or other
organization of individuals, making the identity of any person who makes a contribution apparent by unambiguous reference.
(18)(21) "Person" means an individual, corporation,
partnership, committee, association and any other organization or
group of individuals.
(19)(22) "Political action committee" means a committee
organized by one or more persons for the purpose of supporting or
opposing the nomination or election of one or more candidates. The
following are types of political action committees:
(A) A corporate political action committee, as that term is
defined by subdivision (8) of this section;
(B) A membership organization, as that term is defined by
subdivision (18) of this section;
(C) An unaffiliated political action committee, as that term
is defined by subdivision (29) of this section.
(20)(23) "Political committee" means any candidate committee,
political action committee or political party committee.
(21)(24) "Political party" means a political party as that
term is defined by section eight, article one of this chapter or
any committee established, financed, maintained or controlled by
the party, including any subsidiary, branch or local unit thereof
and including national or regional affiliates of the party.
(22)(25) "Political party committee" means a committee
established by a political party or political party caucus for the purposes of engaging in the influencing of the election, nomination
or defeat of a candidate in any election.
(23)(26) "Political purposes" means supporting or opposing the
nomination, election or defeat of one or more candidates or the
passage or defeat of a ballot issue, supporting the retirement of
the debt of a candidate or political committee or the
administration or activities of an established political party or
an organization which has declared itself a political party and
determining the advisability of becoming a candidate under the
precandidacy financing provisions of this chapter.
(24)(27) "Targeted to the relevant electorate" means a
communication which refers to a clearly identified candidate for
statewide office or the Legislature and which can be received by
one hundred forty thousand or more individuals in the state in the
case of a candidacy for statewide office, eight thousand two
hundred twenty or more individuals in the district in the case of
a candidacy for the state Senate and two thousand four hundred ten
or more individuals in the district in the case of a candidacy for
the House of Delegates.
(25)(28) "Two-year election cycle" means the twenty-four month
period that begins the day after a general election and ends on the
day of the subsequent general election.
(26)(29) "Unaffiliated political action committee" means a political action committee that is not affiliated with a
corporation or a membership organization.
)§3-8-2. Accounts for receipts and expenditures in elections;
requirements for reporting independent expenditures.
(a) Except for: (1) Candidates for party committeeman and
committeewoman; and (2) federal committees required to file under
the provisions of 2 U.S.C. §434, all candidates for nomination or
election and all persons supporting, aiding or opposing the
nomination, election or defeat of any candidate shall keep for a
period of six months records of receipts and expenditures which are
made for political purposes. All of the receipts and expenditures
are subject to regulation by the provisions of this article.
Verified financial statements of the records and expenditures shall
be made and filed as public records by all candidates and by their
financial agents, representatives or any person acting for and on
behalf of any candidate and by the treasurers of all political
party committees.
(b)(1) In addition to any other reporting required by the
provisions of this chapter, any person who makes independent
expenditures in an aggregate amount or value in excess of $1,000
during a calendar year shall file a disclosure statement, on a form
prescribed by the Secretary of State, that contains all of the
following information:
(A) The name of (i) the person making the expenditure; (ii)
the name of any person sharing or exercising direction or control
over the activities of the person making the expenditure; and (iii)
the name of the custodian of the books and accounts of the person
making the expenditure;
(B) If the person making the expenditure is not an individual,
the principal place of business of the partnership, corporation,
committee, association, organization or group which made the
expenditure;
(C) The amount of each expenditure of more than $1,000 made
during the period covered by the statement and the name of the
person to whom the expenditure was made;
(D) The elections to which the independent expenditure
pertain, the names, if known, of the candidates referred to or to
be referred to therein, whether the expenditure is intended to
support or oppose the identified candidates and the amount of the
total expenditure reported pursuant to paragraph (C) of this
subdivision spent to support or oppose each of the identified
candidates;
(E) (1) (i) If the person who makes the independent
expenditure pays for the expenditure exclusively using funds in a
segregated bank account consisting of funds that were contributed,
donated, transferred, or paid directly to the account by persons other than the person who controls the account, for each
contribution, donation, transfer, payment of dues, or other payment
to the account, the name and address of each person who made the
contribution, donation, transfer, payment of dues, or other payment
during the period covered by the statement; but only if the
contribution, donation, transfer, payment of dues, or other payment
was made by a person who made contributions, donations, transfers,
payments of dues, or payments to the account in an aggregate amount
of more than $250 between the first day of the preceding calendar
year, and the disclosure date.
_____(ii) If the person who makes the independent expenditure pays
for the expenditure using funds other than funds in a segregated
bank account described in subpart (E)(1)(I), the name and address
of each person who made the contribution, donation, transfer,
payment of dues, or other payment during the period covered by the
statement; but only if such contribution, donation, transfer,
payment of dues, or other payment was made by a person who made
contributions, donations, transfers, payments of dues, or payments
to the account in an aggregate amount of more than $250 between the
first day of the preceding calendar year, and the disclosure date.
_____(2)(i) The requirement to include in a statement filed under
this section the information described in subparts (E) and (F) does
not apply to amounts received by the person who makes the independent expenditure in the ordinary course of any trade or
business conducted by the person who makes the independent
expenditure or in the form of investments in the person making the
independent expenditure.
_____(ii) The requirement to include in a statement submitted under
this section the information described in subparts (E) and (F) does
not apply if:
_____(I) The person described in such subpart prohibited, in
writing, the use of the contribution, donation, transfer, payment
of dues, or other payment made by such person for independent
expenditures, electioneering communications, or covered transfers;
and
_____(II) The person who makes the independent expenditure agreed
to follow the prohibition and deposited the contribution, donation,
transfer, payment of dues, or other payment in an account which is
segregated from any account used for independent expenditures,
electioneering communications, or covered transfers. The name and
address of any person who contributed a total of more than $250
between the first day of the preceding calendar year, and the
disclosure date, and whose contributions were made for the purpose
of furthering the expenditure.
(F) With regard to the contributors required to be listed
pursuant to paragraph (E) of this subdivision, the statement shall also include:
(i) The month, day and year that the contributions of any
single contributor exceeded $250;
(ii) If the contributor is a political action committee, the
name and address the political action committee registered with the
Secretary of State, county clerk or municipal clerk;
(iii) If the contributor is an individual, the name and
address of the individual, his or her occupation, the name and
address of the individual's current employer, if any, or, if the
individual is self-employed, the name and address of the
individual's business, if any;
(iv) A description of the contribution, if other than money;
and
(v) The value in dollars and cents of the contribution.
(G)(1) A certification that such independent expenditure was
not made in cooperation, consultation, or concert, with, or at the
request or suggestion of, any candidate or any authorized committee
or agent of such candidate.
(2) Any person who makes a contribution for the purpose of
funding an independent expenditure under this subsection shall, at
the time the contribution is made, provide his or her name,
address, occupation, his or her current employer, if any, or, if
the individual is self-employed, the name of his or her business, if any, to the recipient of the contribution.
(3) The Secretary of State shall expeditiously prepare indices
setting forth, on a candidate-by-candidate basis, all independent
expenditures separately, made by, or on behalf of, or for, or
against each candidate, as reported under this subsection, and for
periodically publishing such indices on a timely preelection basis.
(c) (1) A person, including a political committee, who makes
or contracts to make independent expenditures aggregating $1,000 or
more for any statewide, legislative or multicounty judicial
candidate or $500 or more for any county office, single-county
judicial candidate, committee supporting or opposing a candidate on
the ballot in more than one county, or any municipal candidate on
a municipal election ballot, after the fifteenth day, but more than
twelve hours, before the date of an election, shall file a report
on a form prescribed by the Secretary of State, describing the
expenditures within twenty-four hours: Provided, That a person
making expenditures in the amount of $1,000 or more for any
statewide or legislative candidate on or after the fifteenth day
but more than twelve hours before the day of any election shall
report such expenditures in accordance with section two-b of this
article and shall not file an additional report as provided herein.
(2) Any person who files a report under subdivision (1) of
this subsection, shall file an additional report within twenty-four hours after each time the person makes or contracts to make
independent expenditures aggregating an additional $500 with
respect to the same election, for any county office, single-county
judicial candidate, committee supporting or opposing a candidate on
the ballot in more than one county, or any municipal candidate on
a municipal election ballot, as that to which the initial report
relates.
(d) (1) A person, including a political committee, who makes
or contracts to make independent expenditures aggregating $10,000
or more at any time up to and including the fifteenth day before
the date of an election shall file a report on a form prescribed by
the Secretary of State, describing the expenditures within forty-
eight hours.
(2) A person who files a report under subdivision (1) of this
subsection, the person shall file an additional report within
forty-eight hours after each time the person makes or contracts to
make independent expenditures aggregating an additional $10,000
with respect to the same election as that to which the initial
report relates.
(e) Any communication paid for by an independent expenditure
must include a clear and conspicuous public notice that:
(1) Clearly states that the communication is not authorized by
the candidate or the candidate's committee; and
(2) Clearly identifies the person making the expenditure:
Provided, That if the communication appears on or is disseminated
by broadcast, cable or satellite transmission, the statement
required by this subsection must be both spoken clearly and appear
in clearly readable writing at the end of the communication.
(f) Any person who has spent a total of $5,000 or more for the
direct costs of purchasing, producing or disseminating
electioneering communications during any calendar year shall
maintain all financial records and receipts related to such
expenditure for a period of six months following the filing of a
disclosure pursuant to subsection (a) of this section and, upon
request, shall make such records and receipts available to the
Secretary of State or county clerk for the purpose of an audit as
provided in section seven of this article.
(g) Any person who willfully fails to comply with this section
is guilty of a misdemeanor and, upon conviction thereof, shall be
fined not less than $500, or confined in jail for not more than one
year, or both fined and confined.
(h) (1) Any person who is required to file a statement under
this section may file the statement by facsimile device or
electronic mail, in accordance with such rules as the Secretary of
State may promulgate.
(2) The Secretary of State shall make any document filed electronically pursuant to this subsection accessible to the public
on the Internet not later than twenty-four hours after the document
is received by the secretary.
(3) In promulgating a rule under this subsection, the
secretary shall provide methods, other than requiring a signature
on the document being filed, for verifying the documents covered by
the rule. Any document verified under any of the methods shall be
treated for all purposes, including penalties for perjury, in the
same manner as a document verified by signature.
(i) This section does not apply to candidates for federal
office.
(j) The Secretary of State may promulgate emergency and
legislative rules, in accordance with the provisions of chapter
twenty-nine-a of this code, to establish guidelines for the
administration of this section.
§3-8-2b. Disclosure of electioneering communication.
(a) Every person who has spent:
(1) A total of $5,000 or more for the direct costs of
purchasing, producing or disseminating electioneering
communications during any calendar year; or
(2) A total of $1,000 or more on or after the fifteenth day
but more than twelve hours before the day of any election for the
direct costs of purchasing, producing or disseminating electioneering communications during any calendar year shall,
within twenty-four hours of each disclosure date, file with the
Secretary of State a statement which contains all of the
information listed in subsection (b) of this section.
(b)(1) The name of the person making the expenditure, the name
of any person sharing or exercising direction or control over the
activities of the person making the expenditure and the name of the
custodian of the books and accounts of the person making the
expenditure;
(2) If the person making the expenditure is not an individual,
the principal place of business of the partnership, committee,
association, organization or group which made the expenditure;
(3) The amount of each expenditure of more than $1,000 made
for electioneering communications during the period covered by the
statement and the name of the person to whom the expenditure was
made;
(4) The elections to which the electioneering communications
pertain, the names, if known, of the candidates referred to or to
be referred to therein, whether the electioneering communication is
intended to support or oppose the identified candidates and the
amount of the total expenditure reported in subdivision (3) of this
subsection spent to support or oppose each of the identified
candidates; and
(5) (1)(i) If the person who makes the electioneering
communication pays for the expenditure exclusively using funds in
a segregated bank account consisting of funds that were
contributed, donated, transferred, or paid directly to the account
by persons other than the person who controls the account, for each
contribution, donation, transfer, payment of dues, or other payment
to the account-the name and address of each person who made the
contribution, donation, transfer, payment of dues, or other payment
during the period covered by the statement; but only if the
contribution, donation, transfer, payment of dues, or other payment
was made by a person who made contributions, donations, transfers,
payments of dues, or payments to the account in an aggregate amount
of more than $1000 between the first day of the preceding calendar
year, and the disclosure date.
_____(ii) If the person who makes the electioneering communication
pays for the expenditure using funds other than funds in a
segregated bank account described in subpart (b)(5)(i)-the name and
address of each person who made the contribution, donation,
transfer, payment of dues, or other payment during the period
covered by the statement; but only if the contribution, donation,
transfer, payment of dues, or other payment was made by a person
who made contributions, donations, transfers, payments of dues, or
payments to the account in an aggregate amount of more than $1000 between the first day of the preceding calendar year, and the
disclosure date.
_____(2)(i) The requirement to include in a statement filed under
this section the information described in subparts (5)(1)(i) and
(5)(1)(ii) does not apply to amounts received by the person who
makes the electioneering communication in the ordinary course of
any trade or business conducted by the person who makes the
electioneering communication or in the form of investments in the
person making the electioneering communication.
_____(ii) The requirement to include in a statement submitted under
this section the information described in subparts (5)(1)(i) and
(5)(1)(ii) does not apply if:
_____(I) The person described in the subparagraph prohibited, in
writing, the use of the contribution, donation, transfer, payment
of dues, or other payment made by the person for independent
expenditures, electioneering communications, or covered transfers;
and
_____(II) The person who makes the independent expenditure agreed
to follow the prohibition and deposited the contribution, donation,
transfer, payment of dues, or other payment in an account which is
segregated from any account used for independent expenditures,
electioneering communications, or covered transfers. The names and
addresses of any contributors who contributed a total of more than $1,000 between the first day of the preceding calendar year and the
disclosure date and whose contributions were used to pay for
electioneering communications.
(c) With regard to the contributors required to be listed
pursuant to subdivision (5), subsection (b) of this section, the
statement shall also include:
(1) The month, day and year that the contributions of any
single contributor exceeded $250;
(2) If the contributor is a political action committee, the
name and address the political action committee registered with the
State Election Commission;
(3) If the contributor is an individual, the name and address
of the individual, his or her occupation, the name and address of
the individual's current employer, if any, or, if the individual is
self-employed, the name and address of the individual's business,
if any;
(4) A description of the contribution, if other than money;
(5) The value in dollars and cents of the contribution.
(d) (1) Any person who makes a contribution for the purpose of
funding the direct costs of purchasing, producing or disseminating
an electioneering communication under this section shall, at the
time the contribution is made, provide his or her name and address
to the recipient of the contribution;
(2) Any individual who makes contributions totaling $250 or
more between the first day of the preceding calendar year and the
disclosure date for the purpose of funding the direct costs of
purchasing, producing or disseminating electioneering
communications shall, at the time the contribution is made, provide
the name of his or her occupation and of his or her current
employer, if any, or, if the individual is self-employed, the name
of his or her business, if any, to the recipient of the
contribution.
(e) In each electioneering communication, a statement shall
appear or be presented in a clear and conspicuous manner that:
(1) Clearly indicates that the electioneering communication is
not authorized by the candidate or the candidate's committee; and
(2) Clearly identifies the person making the expenditure for
the electioneering communication: Provided, That if the
electioneering communication appears on or is disseminated by
broadcast, cable or satellite transmission, the statement required
by this subsection must be both spoken clearly and appear in
clearly readable writing at the end of the communication.
(f) Within five business days after receiving a disclosure of
electioneering communications statement pursuant to this section,
the Secretary of State shall make information in the statement
available to the public through the Internet.
(g) For the purposes of this section, a person is considered
to have made an expenditure when the person has entered into a
contract to make the expenditure at a future time.
(h) The Secretary of State is hereby directed to propose
legislative rules and emergency rules implementing this section for
legislative approval in accordance with the provisions of article
three, chapter twenty-nine-a of this code.
(i) If any person, including, but not limited to, a political
organization (as defined in Section 527(e)(1) of the Internal
Revenue Code of 1986) makes, or contracts to make, any expenditure
for electioneering communications which is coordinated with and
made with the cooperation, consent or prior knowledge of a
candidate, candidate's committee or agent of a candidate, the
expenditure shall be treated as a contribution and expenditure by
the candidate. If the expenditure is coordinated with and made
with the cooperation or consent of a state or local political party
or committee, agent or official of that party, the expenditure
shall be treated as a contribution to and expenditure by the
candidate's party.
(j) This section does not apply to candidates for federal
office. This section is not intended to restrict or to expand any
limitations on, obligations of or prohibitions against any
candidate, committee, agent, contributor or contribution contained in any other provision of this chapter.
§3-8-2d. Disclosure of covered transfers.
_____(a) Every person, other than an individual, who makes a
covered transfer equal to:
_____(1) A total of §5,000 or more; or
_____(2) A total of §1,000 or more on or after the fifteenth day
but more than twelve hours before the day of any election shall,
within twenty-four hours of each disclosure date, file with the
Secretary of State a statement which contains all of the
information listed in subsection (b) of this section.
_____(b)(1) The name of the person who made the covered transfer,
the name of any person sharing or exercising direction or control
over the activities of the person who made the covered transfer,
and the name of the custodian of the books and accounts of the
person who made the covered transfer;
_____(2) The principal place of business of the person who made the
covered transfer;
_____(3)(i)(I) If the person who makes the covered transfer pays
for the transfer exclusively using funds in a segregated bank
account consisting of funds that were contributed, donated,
transferred, or paid directly to the account by persons other than
the person who controls the account, for each contribution,
donation, transfer, payment of dues, or other payment to the account-the name and address of each person who made the
contribution, donation, transfer, payment of dues, or other payment
during the period covered by the statement; but only if the
contribution, donation, transfer, payment of dues, or other payment
was made by a person who made contributions, donations, transfers,
payments of dues, or payments to the account in an aggregate amount
of more than $1000 between the first day of the preceding calendar
year, and the disclosure date.
_____(II) If the person who makes the covered transfer pays for the
transfer using funds other than funds in a segregated bank account
described in subpart (3)(i)(I)-the name and address of each person
who made such contribution, donation, transfer, payment of dues, or
other payment during the period covered by the statement; but only
if such contribution, donation, transfer, payment of dues, or other
payment was made by a person who made contributions, donations,
transfers, payments of dues, or payments in an aggregate amount of
more than $1000 between the first day of the preceding calendar
year, and the disclosure date.
_____(ii) The requirement to include in a statement filed under
this section the information described in subparts (3)(i)(I) and
(3)(i)(II) does not apply to amounts received by the person who
makes the covered transfer in the ordinary course of any trade or
business conducted by the person who makes the covered transfer or in the form of investments in the person making the covered
transfer.
_____(iii) The requirement to include in a statement submitted
under this section the information described in subparts (3)(i)(I)
and (3)(i)(II) does not apply if:
_____(I) The person described in the subparagraph prohibited, in
writing, the use of the contribution, donation, transfer, payment
of dues, or other payment made by the person for independent
expenditures, electioneering communications, or covered transfers;
and
_____(II) The person who makes the covered transfer agreed to
follow the prohibition and deposited the contribution, donation,
transfer, payment of dues, or other payment in an account which is
segregated from any account used for independent expenditures,
electioneering communications, or covered transfers.
_____(c) With regard to the persons required to be listed pursuant
to subdivision (3) of this section, the statement shall also
include:
_____(1) The month, day and year that the contributions of any
single contributor exceeded $250;
_____(2) If the person making the contribution is a political
action committee, the name and address the political action
committee registered with the State Election Commission;
_____(3) If the contributor is an individual, the name and address
of the individual, his or her occupation, the name and address of
the individual's current employer, if any, or, if the individual is
self-employed, the name and address of the individual's business,
if any;
_____(4) A description of the contribution, if other than money;
_____(5) The value in dollars and cents of the covered transfer.
_____(d) Within five business days after receiving a disclosure of
covered transfer statement pursuant to this section, the Secretary
of State shall make information in the statement available to the
public through the Internet.
_____(e) For the purposes of this section, a person is considered
to have made a covered transfer when the person has entered into a
contract to make the covered transfer at a future time.
_____(f) The Secretary of State is hereby directed to propose
legislative rules and emergency rules implementing this section for
legislative approval in accordance with the provisions of article
three, chapter twenty-nine-a of this code.
_____(g) This section does not apply to candidates for federal
office. This section is not intended to restrict or to expand any
limitations on, obligations of or prohibitions against any
candidate, committee, agent, contributor or contribution contained
in any other provision of this chapter.
NOTE: The purpose of this bill is to amend provisions relating
to the regulation and control of elections.
§3-8-2d is new; therefore, it has been completely underscored.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.