2023 -- H 5961

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LC001872

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO ELECTIONS -- RHODE ISLAND CAMPAIGN CONTRIBUTIONS AND

EXPENDITURES REPORTING

     Introduced By: Representative Brian C. Newberry

     Date Introduced: March 01, 2023

     Referred To: House State Government & Elections

     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

section:

     17-25-31. Campaign funds -- Designation of depository.

     (a) Candidates for state office or for municipal office, or mayor, and candidates for city

council in a city with a total population, as determined by the most recent decennial federal census,

of sixty-five thousand (65,000) or more persons and the treasurer of each state committee, the

treasurer of the nonelected political committee authorized by any of the aforesaid candidates and

the treasurers of people's committees and political action committees that file with the board other

than independent expenditure PACs shall immediately, upon the organization of the political

committee or upon becoming a candidate in accordance with this chapter, designate a financial

institution as a depository for the campaign funds of the candidate or political committee. The

financial institution shall be:

     (1) A national bank, federal savings bank, federal savings and loan association or federal

credit union; provided, however, that the bank, association or credit union may transact business

and have its main office or a branch office in the state; or

     (2) A trust company, credit union, co-operative bank or savings bank; provided, however,

that the company, credit union or bank is organized and exists under the laws of the state or any

other state or otherwise may transact business in the state and have its main office or a branch office

in the state. A candidate and the treasurer of a political committee shall file with the board, on or

before, the third business day following the designation of the depository, a certificate of

appointment containing the name of the financial institution so designated and the name of the

candidate or political committee and shall authorize the financial institution to submit the reports

required by subsection (d) of this section. The certificate of appointment reflecting the financial

institution's agreement to comply with this section shall also be signed by an authorized employee

of the financial institution.

     (b)(1) A candidate and the treasurer of a political committee required to designate a

depository shall deposit contributions in the form received within seven (7) days of receipt.

     (2) Any candidate or treasurer required to designate a depository, except a candidate or a

treasurer of a candidate's committee for nomination or election to the state senate or house of

representatives, shall file with the board, by the fifth day of each month, the following information:

     (i) A list of all contributions of more than fifty dollars ($50.00) deposited as of the last day

of the preceding month and since the last statement, including an alphabetical list of names and

addresses of each person making a contribution;

     (ii) For a person who has made a contribution in an amount of or with a value of two

hundred dollars ($200) or more in any calendar year, the occupation and employer of the contributor

and the information for each contribution of less than two hundred dollars ($200) if the aggregate

of all contributions received from the contributor within any calendar year is two hundred dollars

($200) or more; and

     (iii) A summary of all contributions of fifty dollars ($50.00) or less deposited that are not

itemized on the report.

     (3) A candidate or a treasurer of a candidate's committee for nomination or election to the

state senate or house of representatives shall file with the board the information required pursuant

to subsection (2) of this section according to the following schedule:

     (i) On or before:

     (A) In each odd-numbered year: January 20, complete as to December 31 of the previous

year; April 20, complete as to March 31; July 20, complete as to June 30; and October 20, complete

as to September 30; and

     (B) In each even-numbered year: January 20, complete as to December 31 of the previous

year; April 20, complete as to March 31; July 20, complete as to June 30; the eighth day preceding

a primary; and the eighth day preceding a biennial state election.

     (ii) Each such candidate participating in a special election shall file the following additional

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reports, on or before: the eighth day preceding a special primary, including a convention or a

caucus; the eighth day preceding a special election; the thirtieth day following a special election;

and January 20 of the following year, complete as to the December 31 of the prior year.

     (iii) Except as otherwise provided, the end of the reporting period of each report required

to be filed under the provisions of this subsection shall be as of the tenth day preceding the last day

for filing. The beginning of the reporting period for each report subsequent to the initial report shall

be the day following the end of the reporting period of the last report filed.

     The reports required to be filed by this subsection shall be cumulative during the calendar

year to which they relate.

     (c) Except as otherwise provided in this section, all payments for campaign purposes made

by or for the benefit of a candidate or by the treasurer of a political committee which are in excess

of one hundred dollars ($100) shall be made only from funds on deposit in the depository through

checks drawn on the depository and indicating that the checks are drawn on the campaign account

of the candidate or the political committee involved. All checks drawn on the campaign account

shall be payable either to the order of a named payee, not the candidate or treasurer, or, if the check

is for not more than one hundred dollars ($100), may be payable to the candidate or treasurer. The

memo line of the check shall be used by the political committee issuing the check to indicate the

specific purpose of the expenditure. A political action committee or political party committee

making an expenditure to support or oppose a candidate shall identify the candidate on the check.

     A candidate or treasurer of a political committee required to designate a depository may

make expenditures by wire transfer or other electronic means for broadcast, cablecast or other

media services and for payroll services made in connection with employee deductions and

withholdings. Expenditures may also be made by credit or debit card; provided, however, that a

candidate or treasurer making an expenditure shall ensure that the date, amount and specific

purpose of the expenditure is disclosed in accordance with regulations to be issued by the board;

provided further, that a candidate or a treasurer of a candidate's committee for nomination or

election to the state senate or house of representatives, shall provide such disclosures on the same

schedule as set forth in subsection (b)(3) of this section.

     (d) The cashier or treasurer of the bank selected by any candidate or political committee as

provided in this section shall file with the board by the fifth day of each month the following

information:

     (i) A statement of the balance as of the last day of the preceding month;

     (ii) A summary of all credits to the account since the last statement; and

     (iii) A list of all the debits to the account since the last statement. The bank shall also report,

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to the extent such information is available, the names and addresses of the payees, the amount of

each check and the purposes for which the money was paid as indicated on the check.

     (e) The accounts shall remain in existence until the election and so long thereafter as a

candidate or political committee has unpaid obligations still outstanding. Candidates and treasurers

required to file reports under this section shall continue to file year-end campaign finance reports

in accordance with this chapter.

     (f) A committee required to designate a depository on behalf of a candidate that files with

the board in accordance with this section and which receives and deposits a contribution of five

hundred dollars ($500) or more after the eighteenth day but more than seventy-two (72) hours

before the date of a special, preliminary, primary or general election shall file a report to disclose

the information required by this section within seventy-two (72) hours of depositing the

contribution. In addition, a state committee required to designate a depository pursuant to this

section and which receives a contribution of five hundred dollars ($500) or more after the

eighteenth day but more than twenty-four (24) hours before the date of a special, preliminary,

primary or general election shall file a report to disclose the information required by this section

within seventy-two (72) hours of depositing the contribution.

     (g) A political action committee or state committee of a political party organized pursuant

to this chapter shall, within seven (7) days of its depository bank disclosing an expenditure made

by the committee to support or oppose a candidate, review the bank's report and if the report does

not identify the candidate supported or opposed, append to the bank's report a disclosure containing

the name of the candidate and whether the expenditure supported or opposed the candidate. A

candidate or a political committee that fails to file any report required by this section shall be

assessed and shall pay to the state board a penalty not greater than twenty-five dollars ($25.00) for

each day the candidate or political committee has not filed the report. A violation of this section

shall be punished by imprisonment for not more than six (6) months or by a fine of not more than

five hundred dollars ($500).

     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 require certain candidates for state and municipal political office and

political action committees designate a financial institution as a depository for campaign funds.

     This act would take effect upon passage.

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