SB541 HFA Skinner 3-13 #2 [amends SB541 HJUD AM 3-8]

Delegate Skinner moves to amend the amendment on page 33, line 6, following Section 8, by inserting a new Section 8a, to read as follows:

“§3-8-8a. Disclosure requirements for covered organizations.

(a) Disclosure statement. --

(1) Any covered organization that makes political disbursements aggregating more than $1,000 in a calendar year shall, not later than forty-eight hours after the $1,000 threshold is met, file a statement with the Secretary of State that contains the information described in subdivision (2) of this subsection. Subsequent reports shall be filed within forty-eight hours of each additional campaign-related political expenditure aggregating more than $1,000:

(A) In the case of the first statement filed under this subsection, for the period beginning on the first day of the preceding calendar year and ending on the first such disclosure date; and

(B) In the case of any subsequent statement filed under this subsection, for the period beginning on the previous disclosure date and ending on such disclosure date.

(2) The information to be included in the statement required by this subsection is as follows:

(A) The name of the covered organization and the principal place of business of that organization.

(B) The amount of each campaign-related disbursement made by that organization during the period covered by the statement of more than $1,000.

(C) In the case of a campaign-related disbursement that is not a covered transfer, the election to which the campaign-related disbursement pertains and, if the disbursement is made for a public communication, the name of any candidate identified in that communication and whether that communication is in support of or in opposition to that candidate.

(D) A certification by the chief executive officer or the head of the covered organization that the campaign-related disbursement is not made in cooperation, consultation or concert with or at the request or suggestion of a candidate, authorized committee or agent of a candidate, political party, or agent of a political party.

(E) If the covered organization makes campaign-related disbursements exclusively using funds in a segregated bank account consisting of funds that were contributed, donated, transferred or paid directly to that account by persons other than the covered organization that controls the account, for each contribution, donation, transfer, payment of dues or other payment to the account:

(i) The name and address of each person who made that a contribution, donation, transfer, payment of dues or other payment of more than $250 during the period covered by the statement:

(ii) The date and amount of that contribution, donation, transfer, payment of dues or other payment; and

(iii) The aggregate amount of all those contributions, donations, transfers, payments of dues and other payments made by the person during the period beginning on the first day of the preceding calendar year and ending on the disclosure date.

(F) Subject to subdivision (4) of this subsection, if the covered organization makes campaign-related disbursements using funds other than funds in a segregated bank account described in paragraph (E) of this subdivision, for each contribution, donation, transfer or payment of dues to the covered organization:

(i) The name and address of each person who made that a contribution, donation, transfer or payment of dues of more than $250 during the period covered by the statement:

(ii) The date and amount of that contribution, donation, transfer or payment of dues; and

(iii) The aggregate amount of all those contributions, donations, transfers and payments of dues made by the person during the period beginning on the first day of the preceding calendar year and ending on the disclosure date.

(3) Exceptions. --

(A) The requirement to include in a statement filed under subdivision (1) of this subsection the information described in subdivision (1) of this subsection does not apply to amounts received by the covered organization in the ordinary course of any trade or business conducted by the covered organization or in the form of investments in the covered organization.

(B) Donor restriction on use of funds. -- The requirement to include in a statement submitted under subdivision (1) of this subsection the information described in paragraph (F), subdivision (2) of this subsection does not apply if:

(i) The person described in that subdivision prohibited, in writing, the use of the contribution, donation, transfer, payment of dues or other payment made by that person for campaign-related disbursements; and

(ii) The covered organization 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 to make campaign-related disbursements.

(4) Disclosure date. --

(A) Except as provided in paragraph (B) of this subdivision, the term “disclosure date” means:

(i) The first date during any calendar year by which a person has made campaign-related disbursements aggregating more than $1,000; and

(ii) Each date following the date described in subparagraph (i) of this paragraph during that calendar year by which a person has made campaign-related disbursements aggregating more than $1,000.

(B) In the case of a statement filed with respect to a campaign-related disbursement which is a covered transfer described in paragraph (E), subdivision (1), subsection (f) of this section, the term “disclosure date” means the date on which the covered organization making that transfer knew or should have known that the recipient of that transfer made campaign-related disbursements in an aggregate amount of $10,000 or more during the two-year period beginning on the date of the transfer.

(b) Coordination with other provisions. -- A segregated bank account referred to in paragraph (E), subdivision (2), subsection (a) of this section may be treated as a separate segregated fund for purposes of section 527(f)(3) of the Internal Revenue Code of 1986.

(c) Filing. -- Statements required to be filed under subsection (a) of this section shall be subject to the requirements of subsection (h), section two of this article to the same extent and in the same manner as if those reports had been required under said section.

(d) Campaign-related disbursement defined. -- As used in this section, the term “campaign-related disbursement” means a disbursement by a covered organization for any of the following:

(1) An independent expenditure consisting of a public communication, as defined in section two of this article;

(2) An electioneering communication, as defined in section two of this article; or

(3) A covered transfer.

(e) Covered organization defined. -- In this section, the term “covered organization” means any of the following:

(1) A membership organization, corporation and any other legal entity, including, but not limited to, a limited liability company, limited liability partnership, cooperative, estate, trust, partnership or other legal entity authorized to exist by the laws of this state, another state or the federal government;

(2) An organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that code;

(3) Any political organization under section 527 of the Internal Revenue Code of 1986, other than a political committee under this article, except as provided in subdivision (4) of this subsection; or

(4) A political committee with an account established for the purpose of accepting donations or contributions that do not comply with the contribution limits or source prohibitions under this article, but only with respect to the accounts established for that purpose.

(f) Covered transfer defined. --

(1) General. -- In this section, the term “covered transfer” means any transfer or payment of funds by a covered organization to another person if the covered organization:

(A) Designates, requests or suggests that the amounts be used for:

(i) Campaign-related disbursements other than covered transfers; or

(ii) Making a transfer to another person for the purpose of making or paying for that campaign-related disbursements;

(B) Made that transfer or payment in response to a solicitation or other request for a donation or payment for:

(i) The making of or paying for campaign-related disbursements other than covered transfers; or

(ii) Making a transfer to another person for the purpose of making or paying for those campaign-related disbursements;

(i) The making of or paying for campaign-related disbursements other than covered transfers; or

(ii) Donating or transferring any amount of that transfer or payment to another person for the purpose of making or paying for those campaign-related disbursements;

(D) (i) Made campaign-related disbursements other than a covered transfer in an aggregate amount of $10,000 or more during the two-year period ending on the date of the transfer or payment, or

(ii) the person receiving the transfer or payment made campaign related disbursements in an aggregate amount of $10,000 during the two-year period. In making the determination of whether the $10,000 threshold on campaign related disbursements set forth in the subsection has been met, the amount of the transfer at issue shall be included to the extent the proposed transfer is not excluded by the provisions of subsection (f)(2).

(E) The person receiving the transfer or payment would makes campaign-related disbursements in an aggregate amount of $10,000 or more during the two-year period beginning on the date of the transfer or payment. If the person receiving the transfer or payment has met the aggregate $10,000 threshold at the time of the transfer, it shall so notify the donor at the time of the transfer. If the person receiving the transfer has not met the aggregate $10,000 threshold at the time of the transfer, bu subsequently reaches the threshold, the transfer shall be considered a covered transfer on the date that the threshold is met, and the person receiving the transfer shall so notify the donor. In making the determination of whether the $10,000 threshold on campaign related disbursements set forth in this subsection has been met the amount of the transfer at issue shall be included to the extent the proposed transfer is not excluded from the provisions of subsection (f)(2); or

(F) A transfer to a person receiving the transfer or payment who, within the two-year period beginning on the date of the transfer or payment, thereafter makes a transfer otherwise constitution a covered transfer under the provisions of this subsection shall notify all donors providing transfers of the subsequent transfer. No recipient of a transfer or payment may make a subsequent transfer or payment of any funds excluded from the provisions of subsection (f)(2)(B).

(2) The term “covered transfer” does not include any of the following:

(A) A disbursement made by a covered organization in the ordinary course of any trade or business conducted by the covered organization or in the form of investments made by the covered organization.

(B) A disbursement made by a covered organization if:

(i) The covered organization prohibited, in writing, the use of that disbursement for campaign-related disbursements; 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 campaign-related disbursements.

(3) Exception for certain transfers among affiliates. --

(A) The term “covered transfer” does not include an amount transferred by one covered organization to another covered organization which is treated as a transfer between affiliates under paragraph (B) of this subdivision if the aggregate amount transferred during the year by that covered organization to that same covered organization is equal to or less than $10,000.

(B) A transfer of amounts from one covered organization to another covered organization shall be treated as a transfer between affiliates if:

(i) One of the organizations is an affiliate of the other organization; or

(ii) Each of the organizations is an affiliate of the same organization; except that the transfer shall not be treated as a transfer between affiliates if one of the organizations is established for the purpose of making campaign-related disbursements.

(C) For purposes of paragraph (B) of this subdivision, a covered organization is an affiliate of another covered organization if:

(i) The governing instrument of the organization requires it to be bound by decisions of the other organization;

(ii) The governing board of the organization includes persons who are specifically designated representatives of the other organization or are members of the governing board, officers or paid executive staff members of the other organization, or whose service on the governing board is contingent upon the approval of the other organization; or

(iii) The organization is chartered by the other organization.

(D) This subdivision applies with respect to an amount transferred by a covered organization to an organization described in paragraph (3), section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of that code in the same manner as this paragraph applies to an amount transferred by a covered organization to another covered organization.

(g) Any person who makes a contribution for the purpose of funding an independent expenditure under this section 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.

(h) 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 periodically publish such indices on a timely preelection basis.

(i) 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.

(j) (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.

(k) 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.

(l) 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. 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.”