2015 -- S 0681 SUBSTITUTE A

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LC002140/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO ELECTIONS -- CAMPAIGN FINANCE

     Introduced By: Senators McCaffrey, Paiva Weed, Ruggerio, Goodwin, and Sheehan

     Date Introduced: March 12, 2015

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 17-25 of the General Laws entitled "Rhode Island Campaign

Contributions and Expenditures Reporting" is hereby amended by adding thereto the following

sections:

     17-25-5.2. Segregation of campaign funds. -- (a) All campaign funds received and

expended by a candidate, office holder, treasurer, or deputy treasurer, subject to the provisions of

this chapter, shall be segregated from all other accounts. The candidate or office holder must

maintain a separate campaign account, which shall not contain any non-campaign funds, at a

financial institution which has a physical branch within this state. The comingling of a candidate's

personal or business funds with campaign funds is expressly prohibited. As used herein, the term

"financial institution" includes a bank or a credit union.

     (b) Applicability to political action committees. - The provisions of this section shall

apply to political action committees, as well as to individual candidates and office holders.

     17-25-11.2. Requirements for appointment of a treasurer or deputy treasurer -

Examination and certification of accounts. -- (a) Appointment of treasurer or deputy treasurer.

Whenever a campaign account containing campaign funds received and expended by a candidate,

office holder, or treasurer, subject to the provisions of this chapter, receives or expends at least

ten thousand dollars ($10,000) in any year, the account shall require the appointment of a

treasurer or deputy treasurer, who shall be a person other than the candidate. For such accounts, a

candidate may remain as either a treasurer or deputy treasurer on his or her campaign account;

provided, the treasurer or deputy treasurer who is not the candidate shall examine all campaign

account records and shall certify to the substantial accuracy of the campaign finance report at the

time of filing with the board of elections, on a form to be prepared by the board of elections.

     (b) Applicability to political action committees. The provisions of this section as to

examination and certification shall be applicable to political action committees.

     SECTION 2. Sections 17-25-10 and 17-25-11 of the General Laws in Chapter 17-25

entitled "Rhode Island Campaign Contributions and Expenditures Reporting" are hereby amended

to read as follows:

     17-25-10. Lawful methods of contributing to support of candidates -- Reporting --

Disposition of anonymous contributions. -- (a) No contribution shall be made or received, and

no expenditures shall be directly made or incurred, to support or defeat a candidate except

through:

      (1) The candidate, duly appointed campaign treasurer, or deputy campaign treasurers, of

the candidates;

      (2) The duly appointed campaign treasurer or deputy campaign treasurers of a political

party committee;

      (3) The duly appointed campaign treasurer or deputy campaign treasurer of a political

action committee.

      (b) It shall be lawful for any person, not otherwise prohibited by law and not acting in

concert with any other person or group, to expend personally from that person's own funds a sum

which is not to be repaid to him or her for any purpose not prohibited by law to support or defeat

a candidate; provided, that any person making the expenditure shall be required to report all of his

or her expenditures and expenses, if the total of the money so expended exceeds one hundred

dollars ($100) within a calendar year, to the board of elections within seven (7) days of making

the expenditure and to the campaign treasurer of the candidate or political party committee on

whose behalf the expenditure or contribution was made, or to his or her deputy, within seven (7)

days of making the expenditure, who shall cause the expenditures and expenses to be included in

his or her reports to the board of elections. Whether a person is "acting in concert with any other

person or group" for the purposes of this subsection shall be determined by application of the

standards set forth in § 17-25-23.

      (c) Any anonymous contribution received by a candidate, campaign treasurer or deputy

campaign treasurer shall not be used or expended, but shall be returned to the donor, if the donor's

identity can be ascertained; if not, the contribution shall escheat to the state.

     17-25-11. Dates for filing of reports by treasurers of candidates or of committees. --

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(a) During the period between the appointment of the campaign treasurer for state and municipal

committees and political action committees, or in the case of an individual, the date on which the

individual becomes a "declared or undeclared candidate", as defined in § 17-25-3(2), except when

the ninety (90) day reporting period ends less than forty (40) days prior to an election, in which

case the ninety (90) day report shall be included as part of the report required to be filed on the

twenty-eighth (28th) day next preceding the day of the primary, general, or special election

pursuant to subdivision (2) of this subsection, and the election, with respect to which

contributions are received or expenditures made by him or her in behalf of or in opposition to a

candidate, the campaign treasurer of a candidate, a political party committee, or a political action

committee shall file a report containing an account of contributions received and expenditures

made on behalf of or in opposition to a candidate:

      (1) At ninety (90) day intervals commencing on the date on which the individual first

becomes a candidate, as defined in § 17-25-3(2);

      (2) In a contested election, on the twenty-eighth (28th) and seventh (7th) days next

preceding the day of the primary, general, or special election; provided, that in the case of a

primary election for a special election, where the twenty-eighth (28th) day next preceding the day

of the primary election occurs prior to the first day for filing declarations of candidacy pursuant to

§ 17-14-1, the reports shall be due on the fourteenth (14th) and seventh (7th) days next preceding

the day of the primary election for the special election; and

      (3) A final report on the twenty-eighth (28th) day following the election. The report shall

contain:

      (i) The name and address and place of employment of each person from whom

contributions in excess of a total of one hundred dollars ($100) within a calendar year were

received;

      (ii) The amount contributed by each person;

      (iii) The name and address of each person to whom expenditures in excess of one

hundred dollars ($100) were made; and

      (iv) The amount and purpose of each expenditure.

      (b) Concurrent with the report filed on the twenty-eighth (28th) day following an

election, or at any time thereafter, the campaign treasurer of a candidate, or political party

committee or political action committee, may certify to the board of elections that the campaign

fund of the candidate, political party committee, or political action committee having been

instituted for the purposes of the past election, has completed its business and been dissolved or,

in the event that the committee will continue its activities beyond the election, that its business

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regarding the past election has been completed; and the certification shall be accompanied by a

final accounting of the campaign fund, or of the transactions relating to the election, including the

final disposition of any balance remaining in the fund at the time of dissolution or the

arrangements which have been made for the discharge of any obligations remaining unpaid at the

time of dissolution.

      (c)(1) Once the campaign treasurer certifies that the campaign fund has completed its

business and been dissolved, no contribution which is intended to defray expenditures incurred on

behalf of or in opposition to a candidate during the campaign can be accepted. Until the time that

the campaign treasurer certifies that the campaign fund has completed its business and been

dissolved, the treasurer shall file reports containing an account of contributions received and

expenditures made at ninety (90) day intervals commencing with the next quarterly report

following the election; however, the time to file under this subsection shall be no later than the

last day of the month following the ninety (90) day period, except when the last day of the month

filing deadline following the ninety (90) day reporting period occurs less than twenty-eight (28)

days before an election, in which case the report shall be filed pursuant to the provisions of

subdivisions (a)(1) and (2) of this section. Provided, however, if the last day of the month falls on

a weekend or a holiday, the report shall be due on the following business day.

     (c)(2) In addition to the reports required pursuant to this section, a candidate or office

holder shall also file with the board of elections a paper copy of the account statement from the

office holder's campaign account, which account statement shall be the next account statement

issued by their financial institution after the filing of the fourth quarterly campaign expense

report. The account statement shall be submitted to the board within thirty (30) days of its receipt

by the candidate, officeholder, treasurer or deputy treasurer. The account statement shall not be

deemed a public record pursuant to the provisions of chapter 2 of title 38. The board of elections,

its agents and employees shall not publish, deliver, copy, or disclose, to any person or entity any

account statement or information contained therein for any candidate, former candidate,

officeholder, or party or political action committee. Provided, as to state and municipal political

parties, the requirements of this subsection (c)(2) shall apply to the annual report required

pursuant to § 17-25-7.

      (d) (1) There shall be no obligation to file the reports of expenditures required by this

section on behalf of or in opposition to a candidate if the total amount to be expended in behalf of

the candidacy by the candidate, by any political party committee, by any political action

committee, or by any person shall not in the aggregate exceed one thousand dollars ($1,000).

      (2) However, even though the aggregate amount expended on behalf of the candidacy

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does not exceed one thousand dollars ($1,000), reports must be made listing the source and

amounts of all contributions in excess of a total of one hundred dollars ($100) from any one

source within a calendar year. Even though the aggregate amount expended on behalf of the

candidacy does not exceed one thousand dollars ($1,000) and no contribution from any one

source within a calendar year exceeds one hundred dollars ($100), the report shall state the

aggregate amount of all contributions received. In addition, the report shall state the amount of

aggregate contributions that were from individuals, the amount from political action committees,

and the amount from political party committees.

      (e) On or before the first date for filing contribution and expenditure reports, the

campaign treasurer may file a sworn statement that the treasurer will accept no contributions nor

make aggregate expenditures in excess of the minimum amounts for which a report is required by

this chapter. Thereafter, the campaign treasurer shall be excused from filing all the reports for that

campaign, other than the final report due on the twenty-eighth (28th) day following the election.

      (f) A campaign treasurer must file a report containing an account of contributions

received and expenditures made at the ninety (90) day intervals provided for in subsection (c) of

this section for any ninety (90) day period in which the campaign received contributions in excess

of a total of one hundred dollars ($100) within a calendar year from any one source and/or made

expenditures in excess of one thousand dollars ($1,000) within a calendar year; however, the time

to file under this subsection shall be no later than the last day of the month following the ninety

(90) day period, except when the last day of the month filing deadline following the ninety (90)

day reporting period occurs less than twenty-eight (28) days before an election, in which case the

report shall be filed pursuant to the provisions of subdivisions (a)(1) and (2) of this section.

Provided, however, if the last day of the month falls on a weekend or a holiday, the report shall be

due on the following business day.

      (g) (1) The board of elections may, for good cause shown and upon the receipt of a

written or electronic request, grant a seven (7) day extension for filing a report; provided, that the

request must be received no later than the date upon which the report is due to be filed.

      (2) Any person or entity required to file reports with the board of elections pursuant to

this section and who has not filed the report by the required date, unless granted an extension

pursuant to subdivision (1) of this subsection, shall be fined twenty-five dollars ($25.00).

Notwithstanding any of the provisions of this section, the board of elections shall have the

authority to waive late filing fees for good cause shown.

      (3) The board of elections shall send a notice of non-compliance, by certified mail, to

any person or entity who fails to file the reports required by this section. A person or entity who is

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sent a notice of non-compliance and fails to file the required report within seven (7) days of the

receipt of the notice shall be fined two dollars ($2.00) per day from the day of receipt of the

notice of non-compliance until the day the report has been received by the state board.

Notwithstanding any of the provisions of this section, the board of elections shall have the

authority to waive late filing fees for good cause shown.

     SECTION 3. This act shall take effect on January 1, 2016.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ELECTIONS -- CAMPAIGN FINANCE

***

     This act would require the segregation of campaign funds by a candidate or office holder,

from any other personal or business accounts maintained by such person. The act would also

apply to political action committees.

     The act would also require the appointment of a treasurer or deputy treasurer, other than

the candidate or office holder, whenever monies contained in the segregated account are received

or expended in excess of $10,000 in any year. The obligation would be upon the non-candidate

treasurer or deputy treasurer to examine all campaign account records, which must be certified by

the non-candidate in the candidate or office holder's finance report filed with the board of

elections.

     This act would further require a paper copy of the candidate's or officeholder's segregated

account statement be filed with the board of elections after the filing of the fourth quarterly

campaign expense report.

     This act would take effect on January 1, 2016.

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