Connecticut Seal

General Assembly

Amendment

 

February Session, 2016

LCO No. 5730

   
 

*HB0551105730HDO*

Offered by:

 

REP. JUTILA, 37th Dist.

 

To: Subst. House Bill No. 5511

File No. 568

Cal. No. 351

"AN ACT CONCERNING DISCLOSURE OF COORDINATED AND INDEPENDENT SPENDING IN CAMPAIGN FINANCE. "

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section 1. Section 9-601d of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Any person, as defined in section 9-601, may, unless otherwise restricted or prohibited by law, including, but not limited to, any provision of this chapter or chapter 157, make unlimited independent expenditures, as defined in section 9-601c, and accept unlimited covered transfers, as defined in [said] section 9-601. Except as provided [pursuant to] in this section, any such person who makes or obligates to make an independent expenditure or expenditures in excess of one thousand dollars, in the aggregate, shall file statements according to the same schedule and in the same manner as is required of a treasurer of a [candidate] political committee pursuant to section 9-608. Such person shall file such statements on forms described in subsections (c) and (d) of this section.

(b) Any person who makes or obligates to make an independent expenditure or expenditures in an election or primary for the office of Governor, Lieutenant Governor, Secretary of the State, State Treasurer, State Comptroller, Attorney General, state senator or state representative [,] which exceed one thousand dollars, in the aggregate, during a primary campaign or a general election campaign, as defined in section 9-700, shall file, electronically, a long-form and a short-form report of such independent expenditure or expenditures with the State Elections Enforcement Commission pursuant to subsections (c) and (d) of this section. The person that makes or obligates to make such independent expenditure or expenditures shall file such reports not later than twenty-four hours after (1) making any such payment, or (2) obligating to make any such payment, with respect to the primary or election. If any such person makes or incurs a subsequent independent expenditure, such person shall report such expenditure pursuant to subsection (d) of this section. Such reports shall be filed under penalty of false statement.

(c) The independent expenditure long-form report shall identify: (1) The name of the person making or obligating to make such expenditure or expenditures; (2) if applicable, the tax exempt status of such person, [if applicable] except that if such person files a report with the Federal Election Commission, the Internal Revenue Service or any similar out-of-state agency, such person shall include a statement to that effect and the identification number or other identifying information under which any such filings are made; (3) the street address and mailing address, if different, of such person; (4) the principal business address of the person, if different from either the mailing address or street address; (5) the mailing address, or street address if different, telephone number and electronic mail address of the agent for service of process in this state of such person; (6) the date of the primary, [or] election or referendum for which [the] such independent expenditure or expenditures were made or obligated to be made; (7) (A) the name of any candidate who, or the text of any referendum question that, was the subject of [any] such independent expenditure or expenditures, [and whether the] (B) whether such independent expenditure or expenditures were in support of or in opposition to such candidate or referendum question, and (C) any other information required under subsection (d) of this section for such independent expenditure or expenditures; and (8) the name, telephone number and electronic mail address for the individual filing such report. [Such] Each individual filing such report shall affirm [that the expenditure reported is an independent expenditure under penalty of false statement] under penalty of false statement that any expenditure so reported is an independent expenditure.

(d) As part of any filing made pursuant to subsection (c) of this section and for each subsequent independent expenditure made or obligated to be made by a person with respect to the primary, [or] election or referendum for which a long-form report pursuant to subsection (c) of this section has been filed on behalf of such person, an individual shall file [, electronically, a short-form report for each such independent expenditure, not later than twenty-four hours after such person makes a payment for an independent expenditure or obligates to make such an independent expenditure] a short-form report for each such independent expenditure. Such short-form report shall identify: (1) The name of the person making or obligating to make such independent expenditure; (2) the amount of the independent expenditure; (3) whether the independent expenditure was in support of or in opposition to a candidate or referendum question and the name of such candidate or text of such referendum question; (4) a brief description of the expenditure made, including the type of communication, based on categories determined by the State Elections Enforcement Commission, and the allocation of such expenditure in support of or in opposition to each such candidate or referendum question, if such expenditure was made in support of or in opposition to more than one candidate [; and] or question; (5) the name, telephone number and electronic mail address for the individual filing such report; [. Such] and (6) any other information that the State Elections Enforcement Commission may require to facilitate compliance with the provisions of chapters 155 to 157, inclusive. Each individual filing such report shall affirm [that the expenditure reported is an independent expenditure] under penalty of false statement that any expenditure so reported is an independent expenditure.

(e) No person reporting an independent expenditure pursuant to the provisions of subsection (c) or (d) of this section shall be required to file a statement pursuant to section 9-608, as amended by this act, for such independent expenditure.

(f) (1) Except as provided in subdivision (2) of this subsection, as part of any statement filed pursuant to this section, if a person who makes or obligates to make an independent expenditure (A) has received a covered transfer during the twelve-month period prior to a primary, [or] election or referendum, as applicable to the reported expenditure, [for an office that a candidate described in subdivision (7) of subsection (c) of this section is seeking,] and (B) such independent expenditure is made or obligated to be made on or after the date that is one hundred eighty days prior to such primary, [or] election or referendum, such person shall disclose the source and the amount of any such covered transfer such person received that is in an amount that is five thousand dollars or more, in the aggregate, during the twelve-month period prior to such primary or election, as applicable to the reported expenditure.

(2) The provisions of subdivision (1) of this subsection shall not apply to any person who discloses the source and amount of a covered transfer described in subdivision (1) of this subsection as part of any report to the Federal Election Commission, [or] the Internal Revenue Service or any similar out-of-state agency, provided such person includes a copy of, or information sufficient to find, any such report as part of the [report] statement of each applicable independent expenditure filed pursuant to this section. If a source and amount of a covered transfer is not included as part of any such [report] statement, the maker of the expenditure shall disclose the source and amount of such covered transfer pursuant to subdivision (1) of this subsection, if applicable.

(g) (1) A person may, unless otherwise restricted or prohibited by law, including, but not limited to, any provision of this chapter or chapter 157, establish a dedicated independent expenditure account [, for the purpose of engaging in] that may be used to make independent expenditures, [that] provided such account is segregated from all other accounts controlled by such person. Such dedicated independent expenditure account may receive covered transfers directly from persons other than the person establishing the dedicated account and may not receive transfers from another account controlled by the person establishing the dedicated account, except as provided in subdivision (2) of this subsection. If an independent expenditure is made from such segregated account, any report required pursuant to this section or disclaimer required pursuant to section 9-621 [may include only] shall include at least those persons who made covered transfers directly to the dedicated independent expenditure account.

(2) If a person who has made a covered transfer to another account controlled by the person establishing a dedicated independent expenditure account requests that such covered transfer be used for the purposes of making an independent expenditure from the dedicated independent expenditure account, the amount of such covered transfer may be transferred to the dedicated independent expenditure account and shall be treated as a covered transfer directly to the dedicated independent expenditure account.

(h) Any person may file a complaint with the commission upon the belief that (1) any such independent expenditure report or statement is false, or (2) any person who is required to file an independent expenditure report under this subsection has failed to do so. The commission shall make a prompt determination on such a complaint.

(i) (1) If a person fails to file a report in accordance with the provisions of this section for an independent expenditure or expenditures made or obligated to be made more than ninety days before the day of a primary, [or] election or referendum, the person shall be subject to a civil penalty, imposed by the State Elections Enforcement Commission, of not more than ten thousand dollars. If a person fails to file a report required in accordance with the provisions of this section for an independent expenditure or expenditures made or obligated to be made ninety days or less before the day of a primary, [or] election or referendum, such person shall be subject to a civil penalty, imposed by the State Elections Enforcement Commission, of not more than twenty thousand dollars or twice the amount of any such independent expenditure not so reported, whichever is greater.

(2) [If] Notwithstanding subsection (a) of section 9-623, if the State Elections Enforcement Commission finds that any such failure is knowing and wilful, the person responsible for the failure shall [also be fined] be subject to an additional civil penalty, imposed by the State Elections Enforcement Commission, of not more than fifty thousand dollars or ten times the amount of any such independent expenditure not so reported, whichever is greater, and the commission may refer the matter to the office of the Chief State's Attorney.

Sec. 2. Subsections (a) to (c), inclusive, of section 9-603 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Statements filed by (1) party committees, (2) political committees formed to aid or promote the success or defeat of a referendum question proposing a (A) constitutional convention, (B) constitutional amendment, or (C) revision of the Constitution, (3) political committees formed solely to aid or promote the success or defeat of a referendum question to be voted upon by the electors of a single municipality, (4) individual lobbyists, [and] (5) those political committees and candidate committees formed to aid or promote the success or defeat of any candidate for the office of Governor, Lieutenant Governor, Secretary of the State, State Treasurer, State Comptroller, Attorney General, judge of probate, [and members of the General Assembly,] state senator or state representative, and (6) those persons making an independent expenditure or expenditures in excess of one thousand dollars, in the aggregate, for any such referendum question or candidate pursuant to section 9-601d, as amended by this act, shall be filed with the State Elections Enforcement Commission. A political committee formed for a slate of candidates in a primary for the office of justice of the peace shall file statements with the town clerk of the municipality in which the primary is to be held.

(b) Statements filed by [political committees formed solely to aid or promote the success or defeat of a referendum question to be voted upon by the electors of a single municipality and] those political committees or candidate committees formed to aid or promote the success or defeat of any candidate for (1) public office, other than those enumerated in subsection (a) of this section, or (2) the position of town committee member shall be filed only with the town clerk of the municipality in which the election [or referendum] is to be held. Each unsalaried town clerk shall be entitled to receive ten cents from the town for the filing of each such statement.

(c) A certification of a candidate who is exempt from the requirement of subsection (a) of section 9-604 to form a candidate committee shall be filed with the State Elections Enforcement Commission if the candidate seeks an office enumerated in subsection (a) of this section, or with the town clerk of the municipality in which the election is to be held if the candidate seeks an office other than those enumerated. A certification of a group of individuals who have joined solely to aid or promote a referendum question and who are exempt from the requirement to form a political committee under section 9-605 shall be filed with the [town clerk of each municipality in which the referendum is to be held] the State Elections Enforcement Commission.

Sec. 3. Subsections (a) to (d), inclusive, of section 9-605 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The chairperson of each political committee shall designate a treasurer and may designate a deputy treasurer. The treasurer and any deputy treasurer so designated shall sign a statement accepting the designation. The chairperson of each political committee shall file a registration statement described in subsection (b) of this section along with the statement signed by the designated treasurer and deputy treasurer with the proper authority, within ten days after its organization, provided that the chairperson of any political committee organized within ten days prior to any primary, election or referendum in connection with which it intends to make any contributions or expenditures, shall immediately file a registration statement.

(b) The registration statement shall include: (1) The name and address of the committee; (2) a statement of the purpose of the committee; (3) the name and address of its treasurer, and deputy treasurer if applicable; (4) the name, address and position of its chairman, and other principal officers if applicable; (5) the name and address of the depository institution for its funds; (6) the name of each person, other than an individual, that is a member of the committee; (7) the name and party affiliation of each candidate whom the committee is supporting and the office or position sought by each candidate; (8) if the committee is supporting the entire ticket of any party, a statement to that effect and the name of the party; (9) if the committee is supporting or opposing any referendum question, a brief statement identifying the substance of the question; (10) if the committee is established by a business entity, [or] an organization or an individual acting as the agent of another person, the name of the business entity, [or] organization or other person; (11) if the committee is established by an organization, a statement of whether it will receive its funds from the organization's treasury or from voluntary contributions; (12) if the committee, or a person establishing the committee through an individual acting as such person's agent, files reports with the Federal Elections Commission or any similar out-of-state agency, a statement to that effect including the name of the commission or such agency; (13) a statement indicating whether the committee is established for a single primary, election or referendum or for ongoing political activities; (14) if the committee is established or controlled by a lobbyist, a statement to that effect and the name of the lobbyist; (15) the name and address of the person making the initial contribution or disbursement, if any, to the committee; and (16) any information that the State Elections Enforcement Commission [requires] may require to facilitate compliance with the provisions of this chapter or chapter 157. If no such initial contribution or disbursement, as described in subdivision (15) of this subsection, has been made at the time of the filing of such statement, the treasurer of the committee shall, not later than forty-eight hours after receipt of such contribution or disbursement, file a report with the State Elections Enforcement Commission. The report shall be in the same form as statements filed under section 9-608.

(c) The treasurer of each political committee shall report any addition to or change in information previously submitted in a statement of organization to the proper authority not later than ten days after the addition or change, [provided] except that if an officer of the committee has changed, such amended statement shall be filed by the chairperson of the committee.

(d) A group of two or more individuals who have joined solely to promote the success or defeat of a referendum question shall not be required to file as a political committee, make such designations in accordance with subsections (a) and (b) of this section or file statements pursuant to section 9-608, if the group does not receive [or expend] contributions, or make or incur expenditures, in excess of one thousand dollars, in the aggregate, for the entire campaign. If the group receives [funds] contributions, or makes or incurs expenditures, exceeding one thousand dollars, in the aggregate, the group shall complete the statement of organization and file as a political committee not later than three business days [thereafter] after receiving such contributions, or making or incurring such expenditures. The group shall provide the designated treasurer with all information required for completion of the statements for filing as required by section 9-608.

Sec. 4. Section 9-611 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) No individual shall make a contribution or contributions to, for the benefit of, or pursuant to the authorization or request of, a candidate or a committee supporting or opposing any candidate's campaign for nomination at a primary, or any candidate's campaign for election, to the office of (1) Governor, in excess of three thousand five hundred dollars; (2) Lieutenant Governor, Secretary of the State, Treasurer, Comptroller or Attorney General, in excess of two thousand dollars; (3) chief executive officer of a town, city or borough, in excess of one thousand dollars; (4) state senator or probate judge, in excess of one thousand dollars; or (5) state representative or any other office of a municipality not previously included in this subsection, in excess of two hundred fifty dollars. The limits imposed by this subsection shall be applied separately to primaries and elections.

(b) (1) No individual shall make a contribution or contributions to, or for the benefit of, an exploratory committee, in excess of three hundred seventy-five dollars, if the candidate establishing the exploratory committee certifies on the statement of organization for the exploratory committee pursuant to subsection (c) of section 9-604 that the candidate will not be a candidate for the office of state representative. No individual shall make a contribution or contributions to, or for the benefit of, any exploratory committee, in excess of two hundred fifty dollars, if the candidate establishing the exploratory committee does not so certify.

(2) No individual shall make a contribution or contributions to, or for the benefit of, a political committee formed by a slate of candidates in a primary for the office of justice of the peace, in excess of two hundred fifty dollars.

[(c) No individual shall make contributions to such candidates or committees which in the aggregate exceed thirty thousand dollars for any single election and primary preliminary to such election. ]

[(d)] (c) No individual shall make a contribution to any candidate or committee, other than a contribution in kind, in excess of one hundred dollars except by personal check or credit card of that individual.

[(e)] (d) No individual who is less than eighteen years of age shall make a contribution or contributions, in excess of thirty dollars to, for the benefit of, or pursuant to the authorization or request of: (1) A candidate or a committee supporting or opposing any candidate's campaign for nomination at a primary to any office; (2) a candidate or a committee supporting or opposing any candidate's campaign for election to any office; (3) an exploratory committee; (4) any other political committee in any calendar year; or (5) a party committee in any calendar year. Notwithstanding any provision of subdivision (2) of section 9-7b, any individual who is less than eighteen years of age who violates any provision of this subsection shall not be subject to the provisions of subdivision (2) of section 9-7b.

Sec. 5. Subsection (d) of section 9-612 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(d) Any individual may make unlimited contributions or expenditures to aid or promote the success or defeat of any referendum question, provided any individual who makes an expenditure or expenditures in excess of one thousand dollars to promote the success or defeat of any referendum question shall file statements according to the same schedule and in the same manner as is required of a treasurer of a political committee under section [9-608] 9-601d, as amended by this act. "

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

9-601d

Sec. 2

from passage

9-603(a) to (c)

Sec. 3

from passage

9-605(a) to (d)

Sec. 4

from passage

9-611

Sec. 5

from passage

9-612(d)