2020 -- S 2693

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LC004577

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO ELECTIONS -- CAMPAIGN FINANCE -- FORFEITURE OF

CONTRIBUTIONS

     Introduced By: Senators Lynch Prata, and Miller

     Date Introduced: February 27, 2020

     Referred To: Senate Judiciary

     (Governor)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 17-14-1 of the General Laws in Chapter 17-14 entitled "Nomination

of Party and Independent Candidates" is hereby amended to read as follows:

     17-14-1. Declarations of candidacy.

     During the last consecutive Monday, Tuesday, and Wednesday in June in the even years

and during the thirty-ninth (39th) and fortieth (40th) days preceding a primary election for a special

election, or for an election regularly scheduled for a time other than the biennial general statewide

election, each voter desiring to be a candidate at the upcoming primary or an independent candidate

on final nomination papers shall, on a form that shall be provided by the secretary of state, file a

declaration of his or her candidacy not later than four (4:00) p.m. of the last day for the filing with

the secretary of state for congressional and statewide general offices, or with the local board of the

place of the candidate's voting residence for general assembly, or state committee or senatorial and

representative district committee or with the appropriate local board for local officers. The

declaration shall be signed by the candidate as his or her name appears on the voting list. The

signature shall be accepted as valid if it can be reasonably identified to be the name and signature

of the voter it purports to be. A variation of the voter's signature by the insertion or omission of

identifying titles or by the substitution of initials for the first or middle names of both shall not in

itself be grounds for invalidation of the signature. The declaration shall also include the following

information:

     (1) The candidate's name as it appears on the voting list, subject to the same provisions as

relate to the voter's signature on the declaration;

     (2) The address as it appears on the voting list, provided that an address which is

substantially the same as the address on the voting list shall be valid;

     (3) The party declaration if seeking to run in a party primary;

     (4) The office sought;

     (5) The place and date of birth;

     (6) The length of residence in the state and in the town or city where he or she resides;

     (7) A certification that he or she is neither serving a sentence, including probation or parole,

for which he or she was imprisoned upon final conviction of a felony imposed on any date nor

serving any sentence, whether incarcerated or suspended, on probation or parole, upon final

conviction of a felony committed after November 5, 1986;

     (8) A certification that he or she has not been lawfully adjudicated to be non compos

mentis, of unsound mind;

     (9) If a person is a candidate for state or local office, a certification that, as of the date of

declaration, they have no campaign finance reports, due on or after July 1, 2019, to the state board

of elections, pursuant to chapter 25 of this title, that are more than thirty (30) days overdue;

     (10) If a person is a candidate for state or local office, a certification that, as of the date of

declaration, they have no unpaid fines, fees, or penalties assessed on or after July 1, 2019, by the

state board of elections, pursuant to its authority granted under chapter 7 or 25 of this title, that are

overdue by more than thirty (30) days; provided that, any fines, fees, or penalties, that are subject

to payment plans as agreed to with the state board of elections or being appealed pending

determination by the state board of elections or a court of competent jurisdiction, or for which the

time to appeal to the state board of elections or a court of competent jurisdiction has not expired

shall not be considered overdue for purposes of this subsection;

     (9)(11) In the case of candidates for party nomination, a certification that he or she has not

been a member of a political party other than the declared party within ninety (90) days of the filing

date; and

     (10)(12) If a person is a candidate for a state or local office, a certification that the person

has not within the preceding three (3) years served any sentence, incarcerated or suspended, on

probation or parole, for a crime committed after November 5, 1986, upon a plea of nolo contendere

or guilty or upon a conviction of a felony or for a misdemeanor for which a sentence of

imprisonment for six (6) months or more, whether suspended or to be served as imposed.

     SECTION 2. Sections 17-25-11, 17-25-13, 17-25-16 and 17-25-27 of the General Laws in

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Chapter 17-25 entitled "Rhode Island Campaign Contributions and Expenditures Reporting" are

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

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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 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

campaign 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 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

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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 If the aggregate amount expended on behalf of the candidacy

does not exceed one thousand dollars ($1,000), within a calendar year, 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 Furthermore, if the aggregate amount

expended on behalf of the candidacy does not exceed one thousand dollars ($1,000) within a

calendar year, and no contribution from any one source within a calendar year exceeds not

exceeding one hundred dollars ($100), the report shall state the may be reported as an aggregate

amount of all such 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) within a calendar year from any one source other than the candidate or in

excess of one thousand dollars ($1,000) from the candidate for their own campaign within a

calendar year nor make aggregate expenditures in excess of the minimum amounts for which a

report is required by this chapter one thousand dollars ($1,000) within a calendar year. 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-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.

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     (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 candidate or campaign treasurer of the political action committee

or political party committee 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) one

hundred dollars ($100) for each act of non-compliance in the case of a candidate and for each act

of non-compliance which occurred during their tenure in the case of a campaign treasurer of a

political action committee or political party committee, respectively. 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 to the candidate or the

campaign treasurer, as applicable, within fourteen (14) days following the date on which any report

is required to be filed pursuant to this section. A person or entity who or that is sent a notice of non-

compliance and If the candidate or campaign treasurer, as applicable fails to file the required report

within seven (7) days of the receipt of the notice, they shall be fined two dollars ($2.00) ten dollars

($10.00) 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, up to one thousand dollars ($1,000) in fines per 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.

     17-25-13. Penalties.

     (a) Any person who willfully and knowingly violates the provisions of this chapter shall,

upon conviction, be guilty of a misdemeanor and shall be fined not more than one thousand dollars

($1,000) per violation.

     (b) The state board may fine any person or entity who violates the provisions of this chapter

in an amount not more than one hundred dollars ($100) five hundred dollars ($500) per violation.

     (c) Fines, fees and penalties imposed by the state board for violations of this chapter shall

be paid for by the candidate, officeholder or entity against whose campaign the fines, fees or

penalties have been levied. Fines, fees and penalties levied by the state board pursuant to this

chapter shall not be paid for from contributions or funds available in a campaign account.

     (d) There is hereby created within the general fund a restricted receipt account to be known

as the "board of elections' fines and penalties account." All fines, penalties, and judgements

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collected by the board of elections shall be deposited into this account and funds shall be used to

support the board's auditing, compliance, and enforcement activities.

     17-25-16. Enjoining of illegal acts -- Forfeiture of contributions.

     (a) In addition to any and all other rights and remedies that may exist at law, including, but

not limited to § 11-41-31.1, whenever Whenever the board of elections has reason to believe that a

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

deputy campaign treasurer of the candidate or committee, has accepted a contribution or made an

expenditure in violation of the provisions of this chapter, or willfully and knowingly has made a

false statement in any of the reports required under this chapter or failed to file any report, or has

otherwise violated this chapter, the board may, in addition to all other actions authorized by law,

request the attorney general to bring an action in the name of the state of Rhode Island in the

superior court against the person and/or committee to enjoin them from continuing the violation,

or doing any acts in furtherance of the violation, and for any other relief that the court deems

appropriate. In addition, the court may order the forfeiture of any or all contributions accepted in

violation of and/or not reported as required by this chapter. All contributions so forfeited shall

become the property of the state.

     (b) The court shall also impose a civil penalty not exceeding three (3) times the amount of:

     (1) Contributions made or accepted in violation of this chapter;

     (2) Expenditures made in violation of this chapter; and/or

     (3) Contributions or expenditures not reported as required by this chapter.

     (c) All funds collected pursuant to this section shall be deposited in the fund established

for the public financing of the electoral system pursuant to this chapter.

     17-25-27. Post-audit of accounts -- Publication.

     (a) The board may conduct a post-audit of all accounts and transactions for any election

cycle and may conduct any other special audits and post-audits that it may deem necessary. The

board shall publish a summary of the reports filed by candidates for general office pursuant to the

public financing provision of this chapter on or before April 1 of the year following any year in

which elections are held for statewide elective office.

     (b) No later than January 1, 2020, the board shall select a statistically random sample of at

least twelve and one-half percent (12.5%) of candidates for general office, who raised or expended

more than ten thousand dollars ($10,000) in either year of the 2018 election cycle, at least twelve

and one-half percent (12.5%) of other candidates who raised or expended more than ten thousand

dollars ($10,000) in either year of the 2018 election cycle, and at least twelve and one-half percent

(12.5%) of political action committees which raised or expended more than ten thousand dollars

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($10,000) in either year of the 2018 election cycle. The board shall conduct a post-audit of each

selected candidate and political action committee by December 31, 2021. In conducting such a

post-audit, the board shall review at least two (2) years of records for each candidate and political

action committee that has been active for at least two (2) years.

     (c) Beginning in January 2022 and in the January of each odd numbered year thereafter,

the board shall select a statistically random sample of at least twenty-five percent (25%) of

candidates for general office, who raised or expended more than ten thousand dollars ($10,000) in

either year of the previous election cycle, at least twenty-five percent (25%) of other candidates

who raised or expended more than ten thousand dollars ($10,000) in either year of the 2018 election

cycle, and at least twenty-five percent (25%) of political action committees which raised or

expended more than ten thousand dollars ($10,000) in either year of the previous election cycle.

The board shall conduct a post-audit of each selected candidate and political action committee, by

the end of the following even numbered year. In conducting such a post-audit, the board shall

review at least two (2) years of records for each candidate and political action committee that has

been active for at least two (2) years.

     SECTION 3. Section 17-25.2-5 of the General Laws in Chapter 17-25.2 entitled "Ballot

Question Advocacy and Reporting" is hereby amended to read as follows:

     17-25.2-5. Reporting by ballot question advocates.

     (a) Every ballot-question advocate shall file periodic reports signed by an individual

responsible for its contents on a form prescribed by the board of elections setting forth the name

and address of the ballot-question advocate, including any other name under which the ballot-

question advocate conducts ballot-question advocacy, the name and address of the person filing the

report; and

     (1) The name, address and, if applicable, the place of employment of each person making

a contribution or contributions that in the aggregate exceed one thousand-eight hundred dollars

($1,800) per election cycle to a ballot-question advocate for purposes of ballot question advocacy

and the amount contributed by each person or source; provided, however, this information shall be

reported only if:

     (i) The contributions received by a ballot-question advocate are solicited in any way,

including by written, electronic, or verbal means, by the ballot-question advocate specifically for

ballot-question advocacy; or

     (ii) The contributions were specifically designated by the contributor for ballot-question

advocacy; or

     (iii) The ballot question advocate knew or had reason to know that the contributor intended

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or expected that the majority of the contributions be used for ballot question advocacy; and

     (2) The name and address of every person or entity receiving an expenditure for ballot-

question advocacy, which in the aggregate exceeds one hundred dollars ($100), the amount of each

expenditure for ballot-question advocacy, and the total amount of expenditures for ballot-question

advocacy made by the ballot-question advocate as of the last report date; and

     (3) A statement of the position of the ballot-question advocate in support of or opposition

to the ballot-question; and

     (4) The names and addresses of all identified members or endorsing organizations,

corporations, and/or associations that authorize the ballot-question advocate to represent to the

public that they support the positions of the ballot-question advocate; and

     (5) The name and address of at least one of the officers of the ballot question advocate, if

any, or one individual that is responsible for the ballot question advocate's compliance with the

provisions of this chapter.

     (b) The first report must be filed by a ballot-question advocate for the period beginning

when the ballot-question advocate expends a cumulative total that exceeds one thousand dollars

($1,000) for ballot-question advocacy and ending the last day of the first full month following such

date, to be filed with the board of elections due no later than seven (7) days after the end of the

month. A ballot-question advocate must thereafter file calendar month reports with the board of

elections due no later than seven (7) days after the end of the month; provided, that in lieu of filing

for the last full calendar month preceding the ballot question election, a report must be filed due no

later than seven (7) days before the election.

     (c) A ballot-question advocate must file a final report of contributions received and

expenditures made for ballot-question advocacy no later than thirty (30) days after the election for

the ballot question is held subject to the provisions of § 17-25.2-6. All reports filed with the board

of elections must be received no later than 4:00 p.m. on the due date.

     (d)(1) The board of elections may, for good cause shown and upon receipt of a written or

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

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

and further if the election for the ballot question is to be held less than seven (7) days from the

report due date and time, the report must be filed prior to the election date.

     (2) Any ballot-question advocate required to file reports with the board of elections

pursuant to this section and who has not filed the report by the required date and time, unless

granted an extension by the board, shall be fined twenty-five dollars ($25.00) one hundred dollars

($100).

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     (3) The board of elections shall send a notice of noncompliance, by certified mail, to the

ballot-question advocate who fails to file the reports required by this section. A ballot-question

advocate that has been sent a notice of noncompliance and fails to file the required report within

seven (7) days of the receipt of the notice shall be fined two dollars ($2.00) ten dollars ($10.00) per

day from the date of the receipt of the notice of noncompliance until the day the report is received

by the board of elections; provided that, no fine for any one late report shall exceed one thousand

dollars ($1,000). Notwithstanding any of the provisions of this section, the board of election shall

have the authority to waive late filing fees for good cause shown.

     SECTION 4. Chapter 17-14 of the General Laws entitled "Nomination of Party and

Independent Candidates" is hereby amended by adding thereto the following sections:

     17-14-18. Campaign reporting.

     A person shall be disqualified as a candidate for elective office if that person has, as of the

date of filing of a declaration of candidacy pursuant to chapter 14 of this title, or as of the date on

which an irregular, or "write-in," ballot for such person is cast pursuant to § 17-19-31, whichever

is applicable, any reports due on or after July 1, 2019, to the state board of elections pursuant to

chapter 25 of this title that are more than thirty (30) days overdue.

     17-14-19. Payments.

     A person shall be disqualified as a candidate for elective office if the person has, as of the

date of filing a declaration of candidacy pursuant to chapter 14 of this title, or as of the date on

which an irregular, or "write-in," ballot for such person is cast pursuant to § 17-19-31, whichever

is applicable, any unpaid fines, fees, or penalties assessed on or after July 1, 2019, by the state

board of elections pursuant to its authority granted under chapter 7 or 25 of this title that are overdue

by more than thirty (30) days; provided, however, that any fines, fees, or penalties that are subject

to payment plans as agreed with the state board of elections, or being appealed pending

determination by the state board of elections or a court of competent jurisdiction, or for which the

time to appeal to the state board of elections or a court of competent jurisdiction has not expired

shall not be considered overdue for purposes of this section.

     SECTION 5. Chapter 11-41 of the General Laws entitled "Theft, Embezzlement, False

Pretenses, and Misappropriation" is hereby amended by adding thereto the following section:

     11-41-31.1. Forfeiture of campaign contributions.

     (a) For purposes of this section:

     (1) "Candidate," "contributions," "person," "public office," and "state" shall have the same

meanings provided to them respectively, in § 17-25-3.

     (2) "Convicted of any specified crime" means being convicted of any specified crime, as

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defined in this section, in this state or being convicted under the laws in any other state or the United

States of America, of a crime which, if committed in this state, would be considered a specified

crime, and for which the person has not received a pardon, from the governor of this state, the

governor or other officer authorized to grant pardons in another state, or the president of the United

States of America.

     (3) "Pleads guilty or nolo contendere" does not include any plea of nolo contendere which

does not constitute a conviction under §§ 12-10-12 or 12-18-3.

     (4) "Specified crime" means any felony involving the accepting or giving, or offering to

give, any bribe relating to a public office, the embezzlement of campaign contributions or public

money, extortion or theft of campaign contributions or public money, or conspiracy to commit any

of the above.

     (b) Notwithstanding any law to the contrary, if any candidate or former candidate is

convicted of, or pleads guilty or nolo contendere to, any specified crime, the judge, as part of any

sentence imposed, may order the forfeiture of any or all campaign contributions of the candidate

or former candidate to pay campaign debts and expenses already incurred, return donations to

contributors, donate to the general fund of this state, or a combination of the above.

     (c) In determining whether campaign funds shall be forfeited, the court shall consider and

make an express finding on the following factors:

     (1) The severity of the specified crime of which the candidate or former candidate has been

convicted or to which the candidate or former candidate has pleaded guilty or nolo contendere;

     (2) The amount of monetary loss suffered by any person as a result of the underlying

specified crime; and

     (3) Any other factors that, in the judgment of the court, justice may require.

     SECTION 6. 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 -- CAMPAIGN FINANCE -- FORFEITURE OF

CONTRIBUTIONS

***

     This act creates a statutory scheme to better enforce campaign finance reporting laws by

expanding the possible penalties for late or non-compliance. It would promote audits and authorize

the forfeiture of campaign funds for criminal convictions for the embezzlement of campaign funds

or other campaign finance violations.

     This act would take effect upon passage.

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