2019 -- S 0323

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LC001134

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO ELECTIONS - RHODE ISLAND CAMPAIGN CONTRIBUTIONS AND

EXPENDITURES REPORTING

     

     Introduced By: Senators Goldin, Cano, Goodwin, Valverde, and Satchell

     Date Introduced: February 13, 2019

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 17-25-7.2 of the General Laws in Chapter 17-25 entitled "Rhode

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

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follows:

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     17-25-7.2. Personal use of campaign funds prohibited.

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     (a) The personal use by any elected public office holder or by any candidate for public

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office, as defined in § 17-25-3, of campaign funds contributed after April 29, 1992, is prohibited.

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For the purposes of this section, "personal use" is defined as any use other than expenditures

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related to gaining or holding public office and for which the candidate for public office or elected

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public official would be required to treat the amount of the expenditure as gross income under §

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61 of the Internal Revenue Code of 1986, 26 U.S.C. § 61, or any subsequent corresponding

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Internal Revenue Code of the United States, as from time to time amended.

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     (b) Expenditures that are specifically prohibited under this chapter include:

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     (1) Any residential or household items, supplies, or expenditures, including mortgage,

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rent, or utility payments for any part of any personal residence of a candidate or officeholder or a

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member of the candidate's or officeholder's family;

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     (2) Mortgage, rent, or utility payments for any part of any non-residential property that is

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owned by a candidate or officeholder or a member of a candidate's or officeholder's family and

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used for campaign purposes, to the extent the payments exceed the fair-market value of the

 

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property usage;

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     (3) Funeral, cremation, or burial expenses, including any expenses related to deaths

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within a candidate's or officeholder's family;

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     (4) Clothing, other than items of de minimis value that are used in the campaign;

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     (5) Tuition payments;

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     (6) Dues, fees, or gratuities at a country club, health club, recreational facility or other

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nonpolitical organization, unless they are part of a specific fundraising event that takes place on

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the organization's premises;

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     (7) Salary payments to a member of a candidate's family, unless the family member is

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providing bona fide services to the campaign. If a family member provides bona fide services to a

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campaign, any salary payments in excess of the fair-market value of the services provided is

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personal use;

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     (8) Admission to a sporting event, concert, theater, or other form of entertainment, unless

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part of a specific campaign or officeholder activity;

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     (9) Payment of any fines, fees, or penalties assessed pursuant to this chapter.

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     (c) Any expense that results from campaign or officeholder activity is permitted use of

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campaign funds. Such expenditures may include:

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     (1) The defrayal of ordinary and necessary expenses of a candidate or officeholder;

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     (2) Office expenses and equipment, provided the expenditures and the use of the

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equipment can be directly attributable to the campaign or the officeholder's duties and

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responsibilities;

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     (3) Donations to charitable organizations, provided the candidate or officeholder does not

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personally benefit from the donation or receive compensation from the recipient organization;

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     (4) Travel expenses for an officeholder, provided that the travel is undertaken as an

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ordinary and necessary expense of seeking, holding, or maintaining public office, or seeking,

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holding, or maintaining a position within the legislature or other publicly elected body. If a

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candidate or officeholder uses campaign funds to pay expenses associated with travel that

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involves both personal activities and campaign or officeholder activities, the incremental

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expenses that result from the personal activities are personal use, unless the person(s) benefiting

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from this use reimburse(s) the campaign account within thirty (30) days for the amount of the

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incremental expenses;

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     (5) Gifts of nominal value and donations of a nominal amount made on a special occasion

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such as a holiday, graduation, marriage, retirement, or death, unless made to a member of the

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candidate's or officeholder's family;

 

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     (6) Meal expenses that are incurred as part of a campaign activity or as a part of a

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function that is related to the candidate's or officeholder's responsibilities, including meals

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between and among candidates and/or officeholders that are incurred as an ordinary and

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necessary expense of seeking, holding, or maintaining public office, or seeking, holding, or

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maintaining a position within the legislature or other publicly elected body;

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     (7) Food and beverages that are purchased as part of a campaign or officeholder activity;

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     (8) Communication access expenses that are incurred as part of a campaign activity and

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operation to ensure that deaf and hard-of-hearing citizens are fully participating, are volunteers,

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and/or are otherwise maintaining a position with the campaign committee. Examples of

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communication access expenses include, but are not limited to, the following: captioning on

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television advertisements; video clips; sign language interpreters; computer-aided real-time

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(CART) services; and assistive listening devices.;

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     (9) Child care expenses that are incurred as a result of campaign activity.

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     (d) Any campaign funds not used to pay for the expenses of gaining or holding public

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office may:

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     (1) Be maintained in a campaign account(s);

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     (2) Be donated to a candidate for public office, to a political organization, or to a political

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action committee, subject to the limitation on contributions in § 17-25-10.1;

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     (3) Be transferred, in whole or in part, into a newly established political action committee

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or ballot question advocate;

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     (4) Be donated to a tax-exempt charitable organization as that term is used in § 501(c)(3)

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of the Internal Revenue Code of 1986, 26 U.S.C. § 501, or any subsequent, corresponding

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internal revenue code of the United States as from time to time amended;

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     (5) Be donated to the state of Rhode Island; or

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     (6) Be returned to the donor; provided, however:

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     (e) Any funds remaining in a campaign account(s) of a candidate or officeholder, or

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former candidate or former officeholder, who dies, after repayment of loans and accounts

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payable, shall be disposed, in accordance with the instructions in writing, on a form prescribed by

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the board of elections, which funds may:

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     (1) Be donated to a candidate for public office, to a political organization, or to a political

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action committee, subject to the limitation on contributions in § 17-25-10.1;

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     (2) Be transferred, in whole or in part, into a newly established political action committee

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or ballot question advocate;

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     (3) Be donated to a tax-exempt charitable organization as that term is used in § 501(c)(3)

 

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of the Internal Revenue Code of 1986, 26 U.S.C. § 501, or any subsequent, corresponding

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internal revenue code of the United States as from time to time amended; or

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     (4) Be returned to the donor.

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     (5) The candidate's or officeholder's, or former candidate's or former officeholder's,

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campaign account(s) shall be dissolved by the board of elections;

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     (6) Any penalties assessed to the candidate or officeholder, or former candidate or former

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officeholder, that are outstanding at the time of their death shall be waived by the board of

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elections.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ELECTIONS - RHODE ISLAND CAMPAIGN CONTRIBUTIONS AND

EXPENDITURES REPORTING

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     This act would permit campaign funds to be used to pay all childcare expenses that are

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incurred as a direct result of campaign activity.

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     This act would take effect upon passage.

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