AN ACT CONCERNING THE CITIZENS' ELECTION PROGRAM.

OLR Bill Analysis

sHB 5021

AN ACT CONCERNING THE CITIZENS' ELECTION PROGRAM.

SUMMARY:

This bill makes changes to the Citizens' Election Program (CEP), the state's voluntary public financing system. Principally, it equalizes general election grants for major, minor, and petitioning party candidates who participate in the program (participating candidates). And, it reduces both primary and general election grants for every office except governor.

The bill eliminates general election grants for unopposed participating candidates. Instead, it allows them to raise additional contributions up to 30% of the general election grant for that office (applicable grant).

It repeals the CEP's independent and excess expenditure provisions, thus eliminating matching grants for those purposes. Current law authorizes participating candidates to receive additional money in the form of matching grants if they are the target of independent expenditures promoting their defeat or if their opponent exceeds certain spending limits. Specifically, they may receive up to two times the applicable primary and general election grants to match independent and excess expenditures.

The bill replaces matching grants with supplemental qualifying contributions (QCs) and supplemental grants and authorizes payments from the Citizens' Election Fund (CEF) for these grants. It adds the new supplemental QCs and grants to candidate spending limits.

The bill revises the grant application and payment schedule. It blocks out certain dates for specified application types and generally gives the State Elections Enforcement Commissions (SEEC) more time to review statewide office candidate applications.

Finally, the bill repeals the program's reverter clause and makes several conforming and technical changes.

EFFECTIVE DATE: Upon passage

§ 3—QUALIFYING CONTRIBUTIONS

By law, candidates must qualify to participate in the program by raising a specified amount in QCs from individual donors. The bill increases the limit on individual QCs from $ 100 to $ 500 for gubernatorial candidates and from $ 100 to $ 250 for other statewide office candidates. For state senators and state representatives, the limit remains at $ 100. The total amount of QCs required to qualify for the program also remains the same.

§§ 1-2 & 5—SUPPLEMENTAL QCs & GRANTS

The bill completely eliminates matching grants for independent and excess expenditures and replaces them with supplemental QCs and grants. Only qualified candidates who have been nominated or otherwise qualify to appear on the ballot and who are eligible to receive an initial grant from the CEF may receive supplemental QCs and grants. By law, qualified candidates are those whom the SEEC approves for a CEF grant. Since the bill eliminates grants for unopposed candidates, these candidates are not eligible for supplemental grants. Similarly, since minor and petitioning party candidates are not eligible for primary grants under the program, they may receive only general election supplemental QCs and grants.

The bill defines “supplemental qualifying contribution” as a contribution received to qualify for a supplemental grant and establishes the same criteria for them as initial QCs (e. g. , contributions must be at least $ 5). Likewise, it sets the limits on individual supplemental QCs equal to those on initial QCs. This means, for gubernatorial candidates the limit on individual supplemental QCs is $ 500; for other statewide office candidates, the limit is $ 250; and for legislative candidates, $ 100.

The bill permits candidates to receive supplemental QCs after “qualifying for” an initial grant, but it does not specify that qualifying means approval of an application.

Eligibility

A qualified candidate committee is eligible to receive a supplemental grant for a primary campaign, if applicable, or a general election if it (1) collects and receives supplemental QCs, (2) returns all such contributions that do not meet the criteria for supplemental QCs, and (3) submits an application, which the SEEC approves. In addition the candidate must agree to abide by the program's spending limits.

Candidates must submit an application, which the SEEC reviews just as it does primary and general election grant applications. Upon approval, the bill requires the commission to determine the supplemental grant amount, which equals three times the amount of supplemental QCs, up to the maximum for that office.

Additional Criteria for Legislative Candidates. The bill sets additional eligibility criteria for legislative candidates, whether from a major, minor, or petitioning party. Legislative candidates are eligible only if they are running in (1) an open seat race or (2) a competitive district. An “open seat” race is one in which the incumbent is not seeking reelection. A “competitive district” is one where for any two of the last three primaries or elections, whichever is applicable, the difference between the two top vote-getters is less than 10%.

Maximum Supplemental Amounts

The supplemental grant amount equals three times the amount of supplemental QCs that a candidate raises, up to a maximum specified amount. Major party candidates may raise supplemental QCs and receive supplemental grants for any primary and general election in which they run. Minor and petitioning party candidates may raise and receive them for the general election only. For statewide office candidates, at least 75% must come from state residents. For legislative candidates, at least 75% must come from individuals residing in municipalities included, in whole or in part, in their district.

In the case of a special election, a legislative candidate may raise supplemental QCs up to 75% of the aggregate contributions required for that office during a regular election. They must similarly raise a number of in-district QCs equal to at least 75% of the applicable minimum number required during a regular election. The supplemental grant for legislative candidates in a special election is 75% of the regular general election grant.

If a candidate receives a supplemental grant for a primary but does not spend it all, any general election supplemental grant is reduced by the unspent amount.

Table 1 shows the maximum allowable supplemental QCs and supplemental grants for statewide office and legislative candidates, respectively.

Table 1: Maximum Supplemental QCs and Supplemental Grants*


Candidate for	Individual Supplemental QC Limit	Primary Campaign *(Major Party Candidates Only)*		General Election Campaign
Candidate for	Individual Supplemental QC Limit	Maximum Aggregate Supplemental QCs	Maximum Supplemental Grant*	Maximum Aggregate Supplemental QCs	Maximum Supplemental Grant*
Governor	$ 500	$ 312,500	$ 937,500	750,000	2,250,000
Other statewide offices	250	60,000	180,000	125,000	375,000
State senator	100	4,167	12,500	10,167	30,500
State senator, party-dominant district**	100	9,000	27,000	N/A	N/A
State senator, special election (75% of primary or general election amounts)	100	3,125	9,375	7,625	22,875
State representative	100	1,167	3,500	3,000	9,000
State representative, party-dominant district**	100	3,000	9,000	N/A	N/A
State representative, special election (75% of primary or general election amounts)	100	875	2,625	2,250	6,750

N/A means not applicable

* To be adjusted by the SEEC for inflation beginning in 2012 and 2014 for legislative and all statewide office candidates, respectively.

** Applies to a major party candidate whose party has at least 20% more enrolled voters in his or her district than another party, as determined by the latest enrollment and voter registration records in the Office of the Secretary of the State.

Excess QCs and Supplemental QCs

Current law requires participating candidates to return excess QCs to the state treasurer for deposit in the CEF. The bill allows candidates to use excess QCs and supplemental QCs to qualify for grants. Specifically, candidates may use excess QCs toward a supplemental grant (i. e. , as supplemental QCs). The maximum amount they may use for this purpose is 20% of the required QCs. Candidates may also use excess supplemental QCs collected to receive a supplemental primary grant toward a supplemental general election grant. The limit is 20% of the maximum allowable supplemental QCs for a primary grant.

Multiple Contributions

The bill authorizes individuals to give the same candidate separate QCs and supplemental QCs, up to the limit. For example, a contributor may give a gubernatorial candidate an initial $ 500 QC, as well as a $ 500 supplemental QC.

§§ 2 & 4—UNOPPOSED CANDIDATES

The bill defines “unopposed” for the purposes of the Citizens' Election Program and prohibits participating candidates who are unopposed in the general election from receiving an initial or a supplemental grant. Table 2 describes opposed and unopposed status.

Table 2: Opposed and Unopposed Status

OPPOSED

UNOPPOSED

A participating candidate is opposed when he or she is nominated for election and:

1. another major party endorses a candidate to run against him or her;

2. another major party candidate qualifies to run in the same race by receiving 15% of the vote on a roll call at a convention or submitting petitions with the required number of signatures; or

3. a minor or petitioning party candidate qualifies to appear on the ballot in the same race

and the opposing candidate is:

1. required to form a candidate committee because he or she will raise or spend more than $ 1,000;

2. self-funded, thus exempt from forming a candidate committee, but must file campaign finance statements because he or she spends over $ 1,000; or

3. one of a slate of candidates whose campaign is funded by a political committee formed for the election or primary.

A participating candidate is unopposed when:

1. he or she has no opponent, or

2. the only opponent is exempt from forming a candidate committee because he or she will not raise or spend more than $ 1,000

The bill instead allows unopposed candidates to raise contributions in addition to QCs, up to 30% of the applicable general election grant, which is the amount they receive as a grant under current law. It subjects these additional contributions to the same limitations and restrictions that exist for participating candidates running for the same office. Unopposed candidates must limit their expenditures to the sum of their (1) QCs; (2) allowable personal funds, if any; and (3) permissible additional contributions.

If an unopposed candidate is subsequently opposed, he or she is eligible for the applicable general election grant. But the grant is reduced by any additional contributions the candidate receives. At that point, the candidate must limit expenditures to the sum of his or her (1) QCs; (2) allowable personal funds, if any; (3) permissible additional contributions; and (4) applicable general election grant. Presumably, such a candidate, like others, may collect supplemental QCs once he or she becomes eligible for the initial general election grant from the CEF. However, the bill does not add supplemental QCs or supplemental grants as sources to a candidates spending limits.

Under current law, a minor or petitioning party candidate who receives a partial CEF grant may continue to raise contributions in addition to the QCs to make up the difference between the full and partial grant. The bill eliminates this provision since it makes these candidates eligible for full grants.

§ 4—GRANTS FROM THE FUND

The bill reduces the initial primary and general election grant amounts for participating candidates for offices other than governor. It authorizes qualified minor and petitioning party candidates to receive a general election grant equal to those that qualified major party candidates receive (“full grant”). As under existing law, these candidates are not eligible for primary grants.

Under current law, minor and petitioning party candidates may receive a general election grant equal to the grant for a major party candidate only if the candidate for the same office representing the same minor party at the last regular election received at least 20% of the votes cast for that office. Similarly, an eligible petitioning party candidate may receive a full grant for the general election only if his or her petition is signed by a number of qualified electors equal to at least 20% of the number of votes cast for the same office at the last regular election. (Both receive a one-third grant by meeting a 10% threshold or a two-thirds grant by meeting a 15% threshold. )

Tables 3 through 6 show the grant amounts for each office under current law and the bill.

Table 3: Initial Primary and General Election Grants for Gubernatorial Candidates ^a

Grant	*Current Law*	*The Bill*
Primary Grant for Nomination	$ 1,250,000	$ 1,250,000
General Election Grant, Opposed Candidate	3,000,000 ^b	3,000,000 ^c
General Election Grant, Unopposed Candidate	900,000 ^d	0 ^e
General Election Grant, Nominated Candidate Opposed by Minor or Petitioning Party Candidates	1,800,000 ^f	N/A

N/A means not applicable.

^a To be adjusted for inflation.

^b Under current law, applies to a nominated major party candidate who is opposed by another major party candidate or by a minor or petitioning party candidate who has received the required QCs.

^c Under the bill, applies to a nominated major party candidate or eligible minor or petitioning party candidate.

^d Under current law, a candidate who faces no opposition receives a general election grant equal to 30% of the applicable grant.

^e The bill redefines unopposed (see above) and eliminates general election grants for these candidates.

^f Under current law, a candidate many receive a grant equal to 60% of the applicable grant when he or she is opposed only by a minor or petitioning party candidate who has received contributions less than the qualifying amount.

Table 4: Initial Primary and General Election Grants for Other Statewide Office Candidates ^a

*Grant*	*Current Law*	*The Bill*
Primary Grant for Nomination	$ 375,000	$ 200,000
General Election Grant, Opposed Candidate	750,000 ^b	500,000 ^c
General Election Grant, Unopposed Candidate	225,000 ^d	0 ^e
General Election Grant, Nominated Candidate Opposed by Minor or Petitioning Party Candidates	450,000 ^f	N/A

N/A means not applicable.

^a To be adjusted for inflation.

^b Under current law, applies to a nominated major party candidate who is opposed by another major party candidate or by a minor or petitioning party candidate who has received the required QCs.

^c Under the bill, applies to a nominated major party candidate or eligible minor or petitioning party candidate.

^d Under current law, an unopposed candidate faces no opposition and receives a general election grant equal to 30% of the applicable grant.

^e The bill redefines unopposed (see above) and eliminates general election grants for these candidates.

Table 5: Initial Primary and General Election Grants for State Senate Candidates ^a

*Grant*	*Current Law*	*The Bill*
Primary Grant for Nomination	$ 35,000	$ 25,000
Primary Grant for Nomination in a Party-Dominant District ^b	75,000	54,000
General Election Grant, Opposed Candidate	85,000 ^c	61,000^d
General Election Grant, Unopposed Candidate	25,500 ^e	0 ^f
General Election Grant, Nominated Candidate Opposed by Minor or Petitioning Party Candidates	51,000 ^g	N/A

N/A means not applicable.

^a To be adjusted for inflation.

^b Applies to a major party candidate whose party has at least 20% more enrolled voters in his district than another major party has, as determined by the latest enrollment and voter registration records in the Office of the Secretary of the State. Electors on the inactive registry list do not count toward the total.

^c Under current law, applies to a nominated major party candidate who is opposed by another major party candidate or by a minor or petitioning party candidate who has received the required QCs.

^d Under the bill, applies to a nominated major party candidate or eligible minor or petitioning party candidate.

^e Under current law, a candidate who faces no opposition receives a general election grant equal to 30% of the applicable grant.

^f The bill redefines unopposed (see above) and eliminates general election grants for these candidates.

^g Under current law, a candidate many receive a grant equal to 60% of the applicable grant when he or she is opposed only by a minor or petitioning party candidate who has received contributions less than the qualifying amount.

Table 6: Initial Primary and General Election Grants for State Representative Candidates^a

*Grant*	*Current Law*	*The Bill*
Primary Grant for Nomination	$ 10,000	$ 7,000
Primary Grant for Nomination in a Party-Dominant District ^b	25,000	18,000
General Election Grant, Opposed Candidate	25,000 ^c	18,000 ^d
General Election Grant, Unopposed Candidate	7,500 ^e	0 ^f
General Election Grant, Nominated Candidate Opposed by Minor or Petitioning Party Candidates	15,000 ^g	N/A

N/A means not applicable.

^a To be adjusted for inflation.

^c Under current law, applies to a nominated major party candidate who is opposed by another major party candidate or by a minor or petitioning party candidate who has received the required QCs.

^d Under the bill, applies to a nominated major party candidate or eligible minor or petitioning party candidate.

^e Under current law, a candidate who faces no opposition receives a general election grant equal to 30% of the applicable grant.

^f The bill redefines unopposed (see above) and eliminates general election grants for these candidates.

§ 2—SPENDING LIMITS

The bill changes spending limits for primary and general election campaigns by (1) adding the new supplemental QCs and supplemental grants and (2) eliminating independent and excess expenditure matching grants. Existing law, unchanged by the bill, requires candidates to limit spending before a primary and general election campaign to the sum of the allowable QCs and personal funds (sSB 389 includes supplemental QCs in the pre-primary spending limit, see BACKGROUND—Related Bill).

Under the bill, participating candidates must agree to limit spending:

1. for a primary campaign, to the sum of (a) the QCs and personal funds not spent before the primary campaign begins, (b) the initial primary campaign grant, and (c) supplemental QCs and supplemental grant, if applicable, up to the maximum authorized amount for the primary and

2. for a general election campaign, to the sum of (a) the QCs, supplemental QCs, and personal funds not spent before the general election campaign begins, (b) unspent funds from the initial primary campaign grant or supplemental primary grant, (c) the initial general election campaign grant, (d) supplemental QCs and supplemental grant, if applicable, up to the maximum authorized amount for the general election.

§ 6—GRANT APPLICATIONS

The bill revises the schedule for submitting grant applications and incorporates into it applications for the new supplemental grants. It also requires candidate committees to certify in the application that they have transmitted all excess supplemental QCs to the CEF, just as existing law requires them to do with excess QCs.

Submissions

As under current law for primaries, the bill requires applicants for an initial or supplemental primary grant to apply by 5: 00 pm:

1. on the third Thursday in the May preceding the primary or

2. on any subsequent Thursday, up through the fourth Friday preceding the primary.

However, on the seventh and ninth Thursdays preceding the primary, the SEEC may only act on (1) primary grant applications (initial or supplemental) for statewide office candidates and (2) supplemental submissions continued without prejudice to previously submitted applications for all covered-office candidates. On the third Thursday preceding the primary, the SEEC may act only on statewide office candidates' supplemental grant applications.

The bill requires applicants for an initial or supplemental general election grant to apply by 5: 00 pm:

1. on the third Thursday in the May preceding the general election or

2. on any subsequent Thursday, up through the fifth Thursday preceding the election for an initial general election grant, or, the third Thursday preceding the election for a supplemental general election grant.

However, on the ninth, fourth, and third Thursdays immediately prior to the election, the commission may act upon supplemental grant applications and supplemental submissions to previously submitted applications continued without prejudice.

Under current law, participating candidates generally submit grant applications by (1) 5: 00 p. m. on the third Thursday in May of the year in which they are seeking nomination at a primary or election or (2) by 5: 00 p. m. on a subsequent Thursday. The SEEC may not accept applications later than 5: 00 p. m. on or after the fourth to last Friday before the primary or election.

Review by the SEEC

Under current law, the SEEC must review the applications it has received and determine whether to approve or reject each one within four business days following Thursday or Friday submissions (i. e. , by the following Wednesday or Thursday). The bill retains this schedule for legislative candidate applications but extends the SEEC's review time for statewide office candidates to 10 business days following the Thursday or Friday submission (i. e. , two weeks later).

Existing law, unchanged by the bill, requires the SEEC to meet twice during state election years, from the third week of June until the third week of July, to review any pending applications.

SEVERABILITY

The bill repeals the CEP's reverter clause, CGS § 9-717, which specifies that if the court “prohibits or limits, or continues to prohibit or limit, the expenditure of funds from the Citizens' Election Fund . . . for a period of one hundred sixty-eight hours or more” after April 15, 2010, or if there is a special election for a General Assembly vacancy, PA 05-5, October 25 Special Session, the public financing program, becomes inoperative and prior campaign contribution and spending provisions apply (see BACKGROUND).

In so doing, the statutes' controlling severability clause takes over. Under this, if one section of the program is found unconstitutional, the others remain operative.

BACKGROUND

Related Bill

sSB 389, favorably reported by the Government Administration and Elections Committee, makes the same changes affecting statewide office candidates, but retains most of existing law's provisions concerning legislative candidates.

Public Act 05-5, October 25 Special Session

This act established the CEP as a voluntary public campaign financing system, banned contributions from certain contractors and lobbyists, and changed campaign contribution limits for candidates who do not participate in the program.

Green Party of Connecticut, et al. v. Garfield, et al.

In August 2009, the federal district court for the District of Connecticut ruled in Green Party of Connecticut, et al. v. Garfield, et al. , 648 F. Supp. 2d 298 (D. Conn. 2009) that Connecticut's public financing program is unconstitutional. The court stated that the CEP (1) unconstitutionally burdens minor party candidates' rights to political opportunity and (2) its independent and excess expenditure provisions unconstitutionally burden their First Amendment speech rights. However, the court issued a stay, allowing the program to remain operative while the parties appealed the ruling.

In January 2010, oral argument was held at the Second Circuit Court of Appeals before a three-judge panel. As of March 30, 2010, the parties are awaiting this court's decision.

COMMITTEE ACTION

Government Administration and Elections Committee

Joint Favorable Substitute

Yea

Nay

(03/18/2010)