2017 -- S 0796

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LC001851

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO ELECTIONS - CAMPAIGN FINANCE

     Introduced By: Senator Erin P. Lynch Prata

     Date Introduced: April 25, 2017

     Referred To: Senate Judiciary

     (Board of Elections)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 17-25-11 of the General Laws in Chapter 17-25 entitled "Rhode

Island Campaign Contributions and Expenditures Reporting" is hereby amended to read as

follows:

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

     (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-day (90) reporting period ends less than forty (40) days prior to an

election in which case the ninety-day (90) 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-day (90) 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

regarding the past election has been completed. 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

that 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 that 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-day (90) 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-day (90) period, except when the last day of the month

filing deadline following the ninety-day (90) 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

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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.

     (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. A

candidate/treasurer certifying that the campaign fund has completed its business and has been

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

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

statement issued by the candidate's or office holder's financial institution next following the date

of dissolution. In each instance, the 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, 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

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 in

excess of one hundred dollars ($100) from a single source within a calendar year nor make

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

chapter one thousand dollars ($1,000) within the calendar year. Provided, however, that for the

purposes of this section only, aggregate loans or contributions by a candidate to their own

campaign, or aggregate contributions received in-kind from the political party committee of the

candidate may exceed one hundred dollars ($100) within the calendar year. Thereafter, the

campaign treasurer shall be excused from filing all the reports for that campaign, other than the

final report due by January 31 of the year next following the year for which the sworn statement

is filed.

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

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

this section for any ninety-day (90) 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-

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

(90) 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-day (7) 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 or that 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), provided that in the case when a candidate has not filed the report by the required date,

the fine shall be assessed against the treasurer of the political action committee or political party

committee required to file such report. 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 or that fails to file the reports required by this section. A person or entity

who or that is 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,

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provided that in the case when a candidate has not filed the report by the required date, the fine

shall be assessed against the candidate; and in all other instances, the fines shall be assessed

against the treasurer of the political action committee or political party committee required to file

such report. 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.

     (h) The maximum fine that may be assessed by the board of elections against a person or

entity required to file reports pursuant to this section shall be no greater than one thousand dollars

($1,000) for any one report which is filed later than the prescribed date. 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.

     (i)(1) In the event that any candidate, political action committee or political party

committee fails to file any report within the time required by this section, or files a report that

does not comply with each of the requirements of this chapter, the board staff shall notify the

person in writing of the delinquency and provide the person or treasurer with fourteen (14) days

from the date of the delinquency notice to either file the report or amend the report, or to request a

hearing before the board.

     When the report or amended report has not been filed within fourteen (14) days from the

notice of delinquency, the board must either initiate a civil action against the candidate, or the

treasurer of the political action committee or political party committee, or refer the matter to the

attorney general for further consideration.

     (2) In addition to all other remedies, fines and penalties provided in this chapter, the

name of any candidate who fails to file their report after the commencement of a civil action or

referral to the attorney general must not appear on any state or local ballot until and unless the

delinquency has been remedied to the satisfaction of the board of elections or the superior court.

The board of elections must notify the secretary of state of the names of those candidates against

whom civil proceedings for failure to file have been initiated and must do so within three (3)

business days following the filing of the civil action or the referral to the attorney general.

     (3) Any candidate who is disqualified from appearing on any state or local ballot as set

forth above shall be ineligible to be nominated or elected as a write-in candidate unless the

candidate shall have filed the reports which are the subject of the civil proceedings or referral to

the attorney general by the date of the primary, general, or special election in which the candidate

is seeking nomination or election.

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     SECTION 2. This act shall take effect upon passage.

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LC001851

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ELECTIONS - CAMPAIGN FINANCE

***

     This act would make numerous changes to the campaign finance report law concerning

exemptions, filing paper copies of statements, and maximum late filing fines. It also authorizes

the board of elections to initiate civil proceedings to compel a candidate to file a finance report or

to refer the matter to the attorney general for further investigation. No candidate who failed to file

a campaign finance report after commencement of a civil action or referral to the attorney general

would be allowed to appear on any state or local ballot until the matter is resolved.

     This act would take effect upon passage.

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