Connecticut Seal

General Assembly

Amendment

 

January Session, 2017

LCO No. 6697

   
 

*HB0558906697HRO*

Offered by:

 

REP. KLARIDES, 114th Dist.

REP. CANDELORA, 86th Dist.

REP. HOYDICK, 120th Dist.

REP. O'DEA, 125th Dist.

REP. O'NEILL, 69th Dist.

 

To: Subst. House Bill No. 5589

File No. 577

Cal. No. 379

"AN ACT CONCERNING CAMPAIGN FINANCE REFORM. "

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. Subsections (f) and (g) of section 9-612 of the general statutes are repealed and the following is substituted in lieu thereof (Effective January 1, 2018):

(f) (1) As used in this subsection and subsections (g) and (h) of this section:

(A) "Quasi-public agency" has the same meaning as provided in section 1-120.

(B) "State agency" means any office, department, board, council, commission, institution or other agency in the executive or legislative branch of state government.

(C) "State contract" means an agreement or contract with the state or any state agency or any quasi-public agency, let through a procurement process or otherwise, having a value of fifty thousand dollars or more, or a combination or series of such agreements or contracts having a value of one hundred thousand dollars or more in a calendar year, for (i) the rendition of services, (ii) the furnishing of any goods, material, supplies, equipment or any items of any kind, (iii) the construction, alteration or repair of any public building or public work, (iv) the acquisition, sale or lease of any land or building, (v) a licensing arrangement, or (vi) a grant, loan or loan guarantee. "State contract" does not include any agreement or contract with the state, any state agency or any quasi-public agency that is exclusively federally funded, an education loan, a loan to an individual for other than commercial purposes or any agreement or contract between the state or any state agency and the United States Department of the Navy or the United States Department of Defense.

(D) "State contractor" means a person, business entity or nonprofit organization that enters into a state contract. Such person, business entity or nonprofit organization shall be deemed to be a state contractor until December thirty-first of the year in which such contract terminates. "State contractor" does not include a municipality or any other political subdivision of the state, including any entities or associations duly created by the municipality or political subdivision exclusively amongst themselves to further any purpose authorized by statute or charter, or an employee in the executive or legislative branch of state government or a quasi-public agency, whether in the classified or unclassified service and full or part-time, and only in such person's capacity as a state or quasi-public agency employee.

(E) "First five plus program participant" means a recipient of financial assistance for an eligible business development project pursuant to section 32-4l.

[ (E)] (F) "Prospective state contractor" means a person, business entity or nonprofit organization that (i) submits a response to a state contract solicitation by the state, a state agency or a quasi-public agency, or a proposal in response to a request for proposals by the state, a state agency or a quasi-public agency, until the contract has been entered into, or (ii) holds a valid prequalification certificate issued by the Commissioner of Administrative Services under section 4a-100. "Prospective state contractor" does not include a municipality or any other political subdivision of the state, including any entities or associations duly created by the municipality or political subdivision exclusively amongst themselves to further any purpose authorized by statute or charter, or an employee in the executive or legislative branch of state government or a quasi-public agency, whether in the classified or unclassified service and full or part-time, and only in such person's capacity as a state or quasi-public agency employee.

(G) "Prospective first five plus program participant" means an applicant for financial assistance for an eligible business development project pursuant to section 32-4l that has not been approved by the Governor.

[ (F)] (H) "Principal of a state contractor or prospective state contractor" means (i) any individual who is a member of the board of directors of, or has an ownership interest of five per cent or more in, a state contractor or prospective state contractor, which is a business entity, except for an individual who is a member of the board of directors of a nonprofit organization, (ii) an individual who is employed by a state contractor or prospective state contractor, which is a business entity, as president, treasurer or executive vice president, (iii) an individual who is the chief executive officer of a state contractor or prospective state contractor, which is not a business entity, or if a state contractor or prospective state contractor has no such officer, then the officer who duly possesses comparable powers and duties, (iv) an officer or an employee of any state contractor or prospective state contractor who has managerial or discretionary responsibilities with respect to a state contract, (v) the spouse or a dependent child who is eighteen years of age or older of an individual described in this subparagraph, or (vi) a political committee established or controlled by an individual described in this subparagraph or the business entity or nonprofit organization that is the state contractor or prospective state contractor.

(I) "Principal of a first five plus program participant or prospective first five plus program participant" means (i) any individual who is a member of the board of directors of, or has an ownership interest of five per cent or more in, a first five plus program participant or prospective first five plus program participant, which is a business entity, except for an individual who is a member of the board of directors of a nonprofit organization, (ii) an individual who is employed by a first five plus program participant or prospective first five plus program participant, which is a business entity, as president, treasurer or executive vice president, (iii) an individual who is the chief executive officer of a first five plus program participant or prospective first five plus program participant, which is not a business entity, or if a first five plus program participant or prospective first five plus program participant has no such officer, then the officer who duly possesses comparable powers and duties, (iv) an officer or an employee of any first five plus program participant or prospective first five plus program participant who has managerial or discretionary responsibilities with respect to an award of financial assistance pursuant to section 32-4l, (v) the spouse or a dependent child who is eighteen years of age or older of an individual described in this subparagraph, or (vi) a political committee established or controlled by an individual described in this subparagraph or the business entity or nonprofit organization that is the first five plus program participant or prospective first five plus program participant.

[ (G)] (J) "Dependent child" means a child residing in an individual's household who may legally be claimed as a dependent on the federal income tax return of such individual.

[ (H)] (K) "Managerial or discretionary responsibilities with respect to a state contract" means having direct, extensive and substantive responsibilities with respect to the negotiation of the state contract and not peripheral, clerical or ministerial responsibilities.

(L) "Managerial or discretionary responsibilities with respect to an award of financial assistance pursuant to section 32-4l" means having direct, extensive and substantive responsibilities with respect to the application for financial assistance pursuant to section 32-4l and not peripheral, clerical or ministerial responsibilities.

[ (I)] (M) "Rendition of services" means the provision of any service to a state agency or quasi-public agency in exchange for a fee, remuneration or compensation of any kind from the state or through an arrangement with the state.

[ (J)] (N) "State contract solicitation" means a request by a state agency or quasi-public agency, in whatever form issued, including, but not limited to, an invitation to bid, request for proposals, request for information or request for quotes, inviting bids, quotes or other types of submittals, through a competitive procurement process or another process authorized by law waiving competitive procurement.

[ (K)] (O) "Subcontractor" means any person, business entity or nonprofit organization that contracts to perform part or all of the obligations of (i) a state contractor's state contract, or (ii) a first five plus program participant's commitment in order to be deemed eligible for an award of financial assistance pursuant to section 32-4l. Such person, business entity or nonprofit organization shall be deemed to be a subcontractor until December thirty-first of the year in which the subcontract terminates. "Subcontractor" does not include [ (i)] (I) a municipality or any other political subdivision of the state, including any entities or associations duly created by the municipality or political subdivision exclusively amongst themselves to further any purpose authorized by statute or charter, or [ (ii)] (II) an employee in the executive or legislative branch of state government or a quasi-public agency, whether in the classified or unclassified service and full or part-time, and only in such person's capacity as a state or quasi-public agency employee.

[ (L)] (P) "Principal of a subcontractor" means (i) any individual who is a member of the board of directors of, or has an ownership interest of five per cent or more in, a subcontractor, which is a business entity, except for an individual who is a member of the board of directors of a nonprofit organization, (ii) an individual who is employed by a subcontractor, which is a business entity, as president, treasurer or executive vice president, (iii) an individual who is the chief executive officer of a subcontractor, which is not a business entity, or if a subcontractor has no such officer, then the officer who duly possesses comparable powers and duties, (iv) an officer or an employee of any subcontractor who has managerial or discretionary responsibilities with respect to a subcontract with a state contractor or first five plus program participant, (v) the spouse or a dependent child who is eighteen years of age or older of an individual described in this subparagraph, or (vi) a political committee established or controlled by an individual described in this subparagraph or the business entity or nonprofit organization that is the subcontractor.

(2) (A) No state contractor, prospective state contractor, principal of a state contractor or principal of a prospective state contractor, with regard to a state contract or a state contract solicitation with or from a state agency in the executive branch or a quasi-public agency or a holder, or principal of a holder, of a valid prequalification certificate, shall make a contribution to, or, on and after January 1, 2011, knowingly solicit contributions from the state contractor's or prospective state contractor's employees or from a subcontractor or principals of the subcontractor on behalf of (i) an exploratory committee or candidate committee established by a candidate for nomination or election to the office of Governor, Lieutenant Governor, Attorney General, State Comptroller, Secretary of the State or State Treasurer, (ii) a political committee authorized to make contributions or expenditures to or for the benefit of such candidates, or (iii) a party committee. [ ; ]

(B) No state contractor, prospective state contractor, principal of a state contractor or principal of a prospective state contractor, with regard to a state contract or a state contract solicitation with or from the General Assembly or a holder, or principal of a holder, of a valid prequalification certificate, shall make a contribution to, or, on and after January 1, 2011, knowingly solicit contributions from the state contractor's or prospective state contractor's employees or from a subcontractor or principals of the subcontractor on behalf of (i) an exploratory committee or candidate committee established by a candidate for nomination or election to the office of state senator or state representative, (ii) a political committee authorized to make contributions or expenditures to or for the benefit of such candidates, or (iii) a party committee. [ ; ]

(C) No first five plus program participant, prospective first five plus program participant, principal of a first five plus program participant or principal of a prospective first five plus program participant, with regard to an award of financial assistance pursuant to section 32-4l or an application for such award pursuant to said section shall make a contribution to, or knowingly solicit contributions from such participant's employees or from a subcontractor or principals of such subcontractor on behalf of (i) an exploratory committee or candidate committee established by a candidate for nomination or election to the office of Governor, Lieutenant Governor, Attorney General, State Comptroller, Secretary of the State or State Treasurer, (ii) a political committee authorized to make contributions or expenditures to or for the benefit of such candidates, or (iii) a party committee.

[ (C)] (D) (i) If a state contractor or principal of a state contractor makes or solicits a contribution as prohibited under subparagraph (A) or (B) of this subdivision, as determined by the State Elections Enforcement Commission, the contracting state agency or quasi-public agency may, in the case of a state contract executed on or after February 8, 2007, void the existing contract with such contractor, and no state agency or quasi-public agency shall award the state contractor a state contract or an extension or an amendment to a state contract for one year after the election for which such contribution is made or solicited unless the commission determines that mitigating circumstances exist concerning such violation; [ . ]

(ii) If a first five plus program participant or principal of a first five plus program participant makes or solicits a contribution as prohibited under subparagraph (C) of this subdivision, as determined by the State Election Enforcement Commission, the Commissioner of Economic and Community Development may deem the business development project of such participant ineligible for financial assistance under the first five plus program and require the repayment of such financial assistance, and said commissioner shall deem any such project of such participant ineligible for financial assistance under the first five plus program for one year after the election for which such contribution is made or solicited unless the commission determines that mitigating circumstances exist concerning such violation.

(iii) No violation of the prohibitions contained in subparagraph (A), [ or] (B) or (C) of this subdivision shall be deemed to have occurred if, and only if, the improper contribution is returned to the principal by the later of thirty days after receipt of such contribution by the recipient committee treasurer or the filing date that corresponds with the reporting period in which such contribution was made. [ ; ]

[ (D)] (E) (i) If a prospective state contractor or principal of a prospective state contractor makes or solicits a contribution as prohibited under subparagraph (A) or (B) of this subdivision, as determined by the State Elections Enforcement Commission, no state agency or quasi-public agency shall award the prospective state contractor the contract described in the state contract solicitation or any other state contract for one year after the election for which such contribution is made or solicited unless the commission determines that mitigating circumstances exist concerning such violation. The Commissioner of Administrative Services shall notify applicants of the provisions of this subparagraph and subparagraphs (A) and (B) of this subdivision during the prequalification application process. [ ; and]

(ii) If a prospective first five plus program participant or principal of a prospective first five plus program participant makes or solicits a contribution as prohibited under subparagraph (C) of this subdivision, as determined by the State Elections Enforcement Commission, the Commissioner of Economic and Community Development shall deem the business development project of such prospective participant ineligible for financial assistance under the first five plus program and deem any such project of such prospective participant ineligible for financial assistance under the first five plus program for one year after the election for which such contribution is made or solicited unless the commission determines that mitigating circumstances exist concerning such violation. Said commissioner shall notify any such prospective participant of the provisions of this subparagraph and subparagraph (C) of this subdivision during the application process.

[ (E)] (F) (i) The State Elections Enforcement Commission shall make available to each state agency and quasi-public agency a written notice advising state contractors and prospective state contractors of the contribution and solicitation prohibitions contained in subparagraphs (A) and (B) of this subdivision. Such notice shall: [ (i)] (I) Direct each state contractor and prospective state contractor to inform each individual described in subparagraph [ (F)] (H) of subdivision (1) of this subsection, with regard to such state contractor or prospective state contractor, about the provisions of subparagraph (A) or (B) of this subdivision, whichever is applicable, and this subparagraph; [ (ii)] (II) inform each state contractor and prospective state contractor of the civil and criminal penalties that could be imposed for violations of such prohibitions if any such contribution is made or solicited; [ (iii)] (III) inform each state contractor and prospective state contractor that, in the case of a state contractor, if any such contribution is made or solicited, the contract may be voided; [ (iv)] (IV) inform each state contractor and prospective state contractor that, in the case of a prospective state contractor, if any such contribution is made or solicited, the contract described in the state contract solicitation shall not be awarded, unless the commission determines that mitigating circumstances exist concerning such violation; and [ (v)] (V) inform each state contractor and prospective state contractor that the state will not award any other state contract to anyone found in violation of such prohibitions for a period of one year after the election for which such contribution is made or solicited, unless the commission determines that mitigating circumstances exist concerning such violation. Each state agency and quasi-public agency shall distribute such notice to the chief executive officer of its contractors and prospective state contractors, or an authorized signatory to a state contract, and shall obtain a written acknowledgment of the receipt of such notice.

(ii) The State Elections Enforcement Commission shall make available to the Commissioner of Economic and Community Development a written notice advising first five plus program participants and prospective first five plus program participants of the contribution and solicitations prohibitions contained in subparagraph (C) of this subdivision. Such notice shall: (I) Direct each first five plus program participant and prospective first five plus program participant to inform each individual described in subparagraph (I) of subdivision (1) of this subsection, with regard to such first five plus program participant and prospective first five plus program participant, about the provisions of subparagraph (C) of this subdivision and this subparagraph; (II) inform each first five plus program participant and prospective first five plus program participant of the civil and criminal penalties that could be imposed for violations of such prohibitions if any such contribution is made or solicited; (III) inform each first five plus program participant and prospective first five plus program participant that, in the case of a first five plus program participant, if any such contribution is made or solicited, the business development project of such participant may be deemed ineligible for financial assistance under the first five plus program; (IV) inform each first five plus program participant and prospective first five plus program participant that, in the case of a prospective first five plus program participant, if any such contribution is made or solicited, the business development project of such prospective participant shall be deemed ineligible for financial assistance under the first five plus program, unless the commission determines that mitigating circumstances exist concerning such violation; and (V) inform each first five plus program participant and prospective first five plus program participant that the Commissioner of Economic and Community Development will deem any business development project ineligible for financial assistance under the first five plus program for anyone found in violation of such prohibitions for a period of one year after the election for which such contribution is made or solicited, unless the commission determines that mitigating circumstances exist concerning such violation. Said commissioner shall distribute such notice to the chief executive officer of each such participant or prospective participant, or an authorized agent of such participant or prospective participant, and shall obtain a written acknowledgment of the receipt of such notice.

(3) (A) On and after December 31, 2006, neither the Governor, Lieutenant Governor, Attorney General, State Comptroller, Secretary of the State or State Treasurer, any candidate for any such office nor any agent of any such official or candidate shall knowingly, wilfully or intentionally solicit contributions on behalf of an exploratory committee or candidate committee established by a candidate for nomination or election to any public office, a political committee or a party committee, from a person who he or she knows is prohibited from making contributions, including (i) a principal of a state contractor or prospective state contractor with regard to a state contract solicitation with or from a state agency in the executive branch or a quasi-public agency or a holder of a valid prequalification certificate, or (ii) a principal of a first five plus program participant or prospective first five plus program participant with regard to an application for an award of financial assistance pursuant to section 32-4l.

(B) On and after December 31, 2006, neither a member of the General Assembly, any candidate for any such office nor any agent of any such official or candidate shall knowingly, wilfully or intentionally solicit contributions on behalf of an exploratory committee or candidate committee established by a candidate for nomination or election to any public office, a political committee or a party committee, from a person who he or she knows is prohibited from making contributions, including a principal of a state contractor or prospective state contractor with regard to a state contract solicitation with or from the General Assembly or a holder of a valid prequalification certificate.

(4) The provisions of this subsection shall not apply to (A) the campaign of a principal of a state contractor or prospective state contractor or a principal of a first five plus program participant or prospective first five plus program participant, or [ to] (B) a principal of a state contractor or prospective state contractor or a principal of a first five plus program participant or prospective first five plus program participant who is an elected public official.

(5) Each state contractor, [ and] prospective state contractor, first five plus program participant and prospective first five plus program participant shall make reasonable efforts to comply with the provisions of this subsection. If the State Elections Enforcement Commission determines that a state contractor, [ or] prospective state contractor, first five plus program participant or prospective first five plus program participant has failed to make reasonable efforts to comply with this subsection, the commission may impose civil penalties against such state contractor, [ or] prospective state contractor, first five plus program participant or prospective first five plus program participant in accordance with subsection (a) of section 9-7b.

(g) (1) (A) Not later than thirty days after February 8, 2007, each state agency and quasi-public agency shall prepare and forward to the State Elections Enforcement Commission, on a form prescribed by [ said] the commission, a list of the names of the state contractors and prospective state contractors with which such agency is a party to a contract, and any state contract solicitations or prequalification certificates issued by the agency. Not less than once per month, each state agency and quasi-public agency shall forward to [ said] the commission, on a form prescribed by the commission, any changes, additions or deletions to [ said] such lists, not later than the fifteenth day of the month.

[ (2)] (B) Not later than sixty days after February 8, 2007, the State Elections Enforcement Commission shall [ (A)] (i) compile a master list of state contractors and prospective state contractors for all state agencies and quasi-public agencies, based on the information received under [ subdivision (1) of this subsection, (B)] subparagraph (A) of this subdivision, (ii) publish the master list on the commission's Internet web site, and [ (C)] (iii) provide copies of the master list to treasurers upon request. The commission shall update the master list every month.

(2) (A) Not later than thirty days after February 8, 2018, the Commissioner of Economic and Community Development shall prepare and forward to the State Election Enforcement Commission, on a form prescribed by the commission, a list of the names of the first five plus program participants and prospective first five plus program participants, and any applications for an award of financial assistance pursuant to section 32-4l. Not less than once per month, said commissioner shall forward to the commission, on a form prescribed by the commission, any changes, additions or deletions to such lists, not later than the fifteenth day of the month.

(B) Not later than sixty days after February 8, 2018, the State Elections Enforcement Commission shall (i) compile a master list of first five plus program participants and prospective first five plus program participants, based on the information received under subparagraph (A) of this subdivision, (ii) publish the master list on the commission's Internet web site, and (iii) provide copies of the master list to treasurers upon request. The commission shall update the master list every month.

Sec. 502. Subparagraph (B) of subdivision (10) of subsection (b) of section 9-601a of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):

(B) The purchase of advertising space which clearly identifies the purchaser, in a program for a fund-raising affair or on signs at a fund-raising affair sponsored by a party committee or a political committee, other than an exploratory committee, provided the cumulative purchase of such space does not exceed two hundred fifty dollars from any single party committee or a political committee, other than an exploratory committee, in any calendar year if the purchaser is a business entity or fifty dollars for purchases by any other person. Notwithstanding the provisions of this subparagraph, the following may not purchase advertising space in a program for a fund-raising affair or on signs at a fund-raising affair sponsored by a party committee or a political committee, other than an exploratory committee: (i) A communicator lobbyist, (ii) a member of the immediate family of a communicator lobbyist, (iii) a state contractor, (iv) a prospective state contractor, [ or] (v) a principal of a state contractor or prospective state contractor, (vi) a first five plus program participant, (vii) a prospective first five plus program participant, or (viii) a principal of a first five plus program participant or prospective first five plus program participant. As used in this subparagraph, "state contractor", "prospective state contractor", [ and] "principal of a state contractor or prospective state contractor", "first five plus program participant", "prospective first five plus program participant", and "principal of a first five plus program or prospective first five plus program participant" have the same meanings as provided in subsection (f) of section 9-612, as amended by this act;

Sec. 503. Subdivision (3) of subsection (c) of section 9-608 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2018):

(3) In addition to the requirements of subdivision (2) of this subsection, each contributor who makes a contribution to a candidate or exploratory committee for Governor, Lieutenant Governor, Attorney General, State Comptroller, Secretary of the State, State Treasurer, state senator or state representative, any political committee authorized to make contributions to such candidates or committees, and any party committee that separately, or in the aggregate, exceeds fifty dollars shall provide with the contribution: (A) The name of the contributor's employer, if any; (B) the contributor's status as a communicator lobbyist, as defined in section 1-91, a member of the immediate family of a communicator lobbyist, a state contractor, a prospective state contractor, [ or] a principal of a state contractor or prospective state contractor, a first five plus program participant, a prospective first five plus program participant or a principal of a first five plus program participant or prospective first five plus program participant, as defined in section 9-612, as amended by this act; and (C) a certification that the contributor is not prohibited from making a contribution to such candidate or committee. The State Elections Enforcement Commission shall prepare a sample form for such certification by the contributor and shall make it available to treasurers and contributors. Such sample form shall include an explanation of the terms "communicator lobbyist", "principal of a state contractor or prospective state contractor", "immediate family", "state contractor", [ and] "prospective state contractor", "principal of a first five plus program participant or prospective first five plus program participant", "first five plus program participant" and "prospective first five plus program participant". The information on such sample form shall be included in any written solicitation conducted by any such committee. If a treasurer receives such a contribution and the contributor has not provided such certification, the treasurer shall: (i) Not later than three business days after receiving the contribution, send a request for the certification to the contributor by certified mail, return receipt requested; (ii) not deposit the contribution until the treasurer obtains the certification from the contributor, notwithstanding the provisions of section 9-606; and (iii) return the contribution to the contributor if the contributor does not provide the certification not later than fourteen days after the treasurer's written request or at the end of the reporting period in which the contribution was received, whichever is later. No treasurer shall be required to obtain and keep more than one certification from each contributor, unless information certified to by the contributor, other than the amount contributed, changes. If a treasurer deposits a contribution based on a certification that is later determined to be false, the treasurer shall have a complete defense to any action, including but not limited to, any complaint investigated by the State Elections Enforcement Commission or any other investigation initiated by [ said] the commission, against such treasurer for the receipt of such contribution.

Sec. 504. Subsections (c) to (e), inclusive, of section 9-704 of the general statutes are repealed and the following is substituted in lieu thereof (Effective January 1, 2018):

(c) The following shall not be deemed to be qualifying contributions under subsection (a) of this section and shall be returned by the treasurer of the candidate committee to the contributor or transmitted to the State Elections Enforcement Commission for deposit in the Citizens' Election Fund:

(1) A contribution from a principal of a state contractor or prospective state contractor or a principal of a first five plus program participant or prospective first five plus program participant;

(2) A contribution of less than five dollars, and a contribution of five dollars or more from an individual who does not provide the full name and complete address of the individual;

(3) A contribution under subdivision (1) or (2) of subsection (a) of this section from an individual who does not reside in the state, in excess of the applicable limit on contributions from out-of-state individuals in subsection (a) of this section; and

(4) A contribution made by a youth who is less than twelve years of age.

(d) After a candidate committee receives the applicable aggregate amount of qualifying contributions under subsection (a) of this section, the candidate committee shall transmit any additional contributions that it receives to the State Treasurer for deposit in the Citizens' Election Fund.

(e) As used in this section, "principal of a state contractor or prospective state contractor" [ has the same meaning] and "principal of a first five plus program participant or prospective first five plus program participant" have the same meanings as provided in subsection [ (g)] (f) of section 9-612, as amended by this act, and "individual" shall include sole proprietorships. "

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

Sec. 501

January 1, 2018

9-612(f) and (g)

Sec. 502

January 1, 2018

9-601a(b)(10)(B)

Sec. 503

January 1, 2018

9-608(c)(3)

Sec. 504

January 1, 2018

9-704(c) to (e)