2012 -- H 7093

=======

LC00127

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO ELECTIONS - STATE VENDOR'S POLITICAL CONTRIBUTIONS

     

     

     Introduced By: Representatives Marcello, Hearn, Valencia, Blazejewski, and Costa

     Date Introduced: January 11, 2012

     Referred To: House Judiciary

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 17-27-1 of the General Laws in Chapter 17-27 entitled "Reporting

1-2

of Political Contributions by State Vendors" is hereby amended to read as follows:

1-3

     17-27-1. Definitions. -- As used in this chapter:

1-4

      (1) "Aggregate amount" means the total of all contributions made to a particular general

1-5

officer, candidate for general office, or political party within the time period set forth;

1-6

      (2) "Business entity" means a sole proprietorship, partnership, firm, corporation, holding

1-7

company, joint stock company, receivership, trust, or any other entity recognized in law through

1-8

which business for profit is conducted;

1-9

      (3) "Contribution" means a transfer of money, paid personal services, or other thing of

1-10

value reportable under the terms of chapter 25 of this title;

1-11

      (4) "Executive officer" means any person who is appointed or elected as an officer of a

1-12

business entity by either the incorporators, stockholders, or directors of the business entity who is

1-13

in charge of a principal business unit, division, or function of the business entity, or participates

1-14

or has authority to participate other than in the capacity of a director in major policymaking

1-15

functions of the business entity or who is actively engaged in soliciting business from the state or

1-16

conducting, other than in a ministerial capacity, business with the state; provided, that officers of

1-17

the business entity who are located outside the state, are not residents of the state, and do not

1-18

participate in the business of the business entity within this state shall be exempted from the

1-19

requirements of this chapter;

2-20

      (5) "Goods or services" shall not include, but not be limited to, cost reimbursement

2-21

contracts or contingency fee contracts services provided to a state agency by:;

2-22

      (i) Any public utility company; or

2-23

      (ii) A federal or state banking institution or other depository institution solely in

2-24

connection with depository accounts held by the institution on behalf of a state agency;

2-25

      (6) "State agency" means a branch, department, division, agency, commission, board,

2-26

office, bureau, or authority of the government of the state of Rhode Island;

2-27

      (7) (i) "State vendor" means:

2-28

      (A) A person or business entity that sells goods or provides services to any state agency,

2-29

      (B) A person or business entity which has an ownership interest of ten (10%) percent or

2-30

more in a business entity that sells goods or provides services to any state agency, or

2-31

      (C) A person who is an executive officer of a business entity that sells goods or provides

2-32

services to any state agency,

2-33

      (D) The spouse or minor child of a person qualifying as a state vendor under the terms of

2-34

subparagraphs (A), (B) or (C) of this paragraph, unless the spouse works for a vendor in

2-35

competition for state business with the reporting business entity, or

2-36

      (E) A business of the business entity that is a parent or subsidiary of a business entity

2-37

that sells goods or provides services to any state agency., or

2-38

     (F) A person or business entity that bids to sell goods or provide services to any state

2-39

agency.

2-40

      (ii) "State vendor" does not mean:

2-41

      (A) A municipality,

2-42

      (B) A corporation established pursuant to Section 501(c)(3) of the Internal Revenue

2-43

Code, 26 U.S.C. section 501(c)(3),

2-44

      (C) A hospital,

2-45

      (B)(D) A state or federal agency, or

2-46

      (C)(E) A person receiving reimbursement for an approved state expense. The director of

2-47

administration is authorized to provide as a public record a list of further exemptions consistent

2-48

with the purposes of this chapter.

2-49

     (8) “Officeholder” means the governor, lieutenant governor, attorney general, secretary

2-50

of state, treasurer and members of the joint committee on legislative services or candidate for the

2-51

aforementioned offices. The governor shall be considered the officeholder responsible for

2-52

awarding all contracts by all officers and employees of, and vendors and others doing business

2-53

with, executive branch state agencies not within the jurisdiction of the lieutenant governor, the

2-54

attorney general, the secretary of state, the treasurer or members of the joint committee on

3-1

legislative services.

3-2

     (9) “Affiliated entity” means:

3-3

     (i) Any subsidiary of the bidding or contracting business entity;

3-4

     (ii) Any member of the same unitary business group as the bidding or contracting

3-5

business entity;

3-6

     (iii) Any organization recognized by the United States Internal Revenue Service as a tax-

3-7

exempt organization described in section 501(c) of the Internal Revenue Code of 1986 (or any

3-8

successor provision of federal tax law) established by the bidding or contracting business entity;

3-9

or

3-10

     (iv) Any political committee of the bidding or contracting business entity.

3-11

     SECTION 2. Chapter 17-27 of the General Laws entitled "Reporting of Political

3-12

Contributions by State Vendors" is hereby amended by adding thereto the following sections:

3-13

     17-27-6. Prohibition of political contributions. – (a) Any state vendor who contracts

3-14

annually with state agencies, more than five thousand dollars ($5,000) in the aggregate, and any

3-15

affiliated entities of such state vendor, are prohibited from making any contributions to any

3-16

political committees established to promote the candidacy of: (1) The officeholder responsible for

3-17

awarding the contracts; or (2) Any other declared candidate for that office. This prohibition shall

3-18

be effective for the duration of the term of office of the incumbent officeholder awarding the

3-19

contracts or for a period of two (2) years following the expiration or termination of the contracts,

3-20

whichever is longer.

3-21

     (b) Any state vendor whose aggregate pending bids and proposals for contract with state

3-22

agencies total more than five thousand dollars ($5,000), or whose aggregate pending bids and

3-23

proposals for contract with state agencies combined with the state vendor’s aggregate annual total

3-24

value of state contracts exceed twenty five thousand dollars ($25,000), and any affiliated entities

3-25

of such state vendor, are prohibited from making any contributions to any political committee

3-26

established to promote the candidacy of the officeholder responsible for awarding the contract on

3-27

which the business entity has submitted a bid or proposal during the period beginning on the date

3-28

the invitation for bids or request for proposal is issued and ending on the day after the date the

3-29

contract is awarded.

3-30

     (c) All contracts between state agencies and a state vendor that violates subsection (a) or

3-31

(b) shall be voidable. If a state vendor violates subsection (a) three (3) or more times within a

3-32

thirty-six (36) month period, then all contracts between state agencies and that state vendor shall

3-33

be void, and that state vendor shall not bid or respond to any invitation to bid or request for

3-34

proposals from any state agency or otherwise enter into any contract with any state agency for

4-1

three (3) years from the date of the last violation. A notice of each violation and the penalty

4-2

imposed shall be published on the website of the board of elections.

4-3

     (d) Any political committee that has received a contribution in violation of subsection (a)

4-4

or (b) shall pay to the state an amount equal to the value of the contribution no more than thirty

4-5

(30) days after notice of the violation from the board of elections. Payments received by the state

4-6

pursuant to this subsection shall be deposited into the general revenue fund.

4-7

     17-27-7. Severability. – If the provisions of this act or its application to any person or

4-8

circumstance are held invalid, the invalidity of that provision or application does not affect the

4-9

other provisions or applications of this act that can be given effect without the invalid provision

4-10

or application.

4-11

     SECTION 3. This act shall take effect upon passage.

=======

LC00127

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO ELECTIONS - STATE VENDOR'S POLITICAL CONTRIBUTIONS

***

5-1

     This act would expand and clarify those state vendors and their related businesses which

5-2

are disqualified from making certain political contributions.

5-3

     This act would take effect upon passage.

     

=======

LC00127

=======

H7093