A N A C T
RELATING TO CAMPAIGN FINANCE
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:
17-25-7.5. Electronic reporting -- Declaration of purpose. -- The State of Rhode Island is committed to facilitating public access to reports of campaign contributions and expenditures by candidates for public office and other entities required to file campaign finance reports.
17-25-7.6. Electronic reporting. -- (a) The filing of campaign finance reports to the board of elections shall commence in accordance with the following schedule:
(1) Candidates for general office shall commence filing campaign finance reports electronically beginning with the report required to be filed for the first quarterly reporting period in 2002.
(2) All other candidates for public office and political parties, other than state political parties, shall commence filing campaign finance reports electronically beginning with the first quarterly reporting period in 2004; provided, however, that all candidates may commence filing campaign finance reports electronically beginning with the first report required to be filed for the first quarterly reporting period in 2002.
(3) State political parties, political action committees and vendors required to file campaign finance reports shall do so commencing with the first report required to be filed for the first quarterly reporting period in 2002.
(b) Notwithstanding the provisions in section 17-25-7.6(a)(2), any candidate, other than a candidate for general office, who raises or expends more than five thousand dollars ($5,000) annually or whose report shows a balance of five thousand dollars ($5,000) or more in his/her campaign fund as of December 31st of the previous year shall file his/her campaign finance reports electronically beginning with the first report required to be filed for the first quarterly reporting period in 2004.
(c) The board of elections shall have the authority to adopt regulations to implement and administer the provisions of this section.
(d) Notwithstanding anything else in this section and subject to the implementation of an electronic reporting and tracking system the board of elections shall have the authority to delay implementation of the requirements of this section by up to ninety (90) days.
17-25-11.1. Preservation of candidate or committee records. -- (a) For every report filed after the effective date of this act, the campaign treasurer of each candidate seeking nomination for election or election to public office shall maintain and preserve all records and supporting documentation for a period of four (4) years from the filing date;
(b) For every report filed after the effective date of this act, the treasurer of each political party committee and political action committee shall be required to maintain and preserve all records in support of the committee reports filed pursuant to 17-25-11 for a period of four (4) years from the filing date.
SECTION 2. Sections 17-25-3, 17-25-5, 17-25-7.2, 17-25-8, 17-25-10, 17-25-10.1, 17-25-11, 17-25-13, 17-25-15, 17-25-22 and 17-25-28 of the General Laws in Chapter 17-25 entitled "Rhode Island Campaign Contributions and Expenditures Reporting" are hereby amended to read as follows:
17-25-3. Definitions -- As used in this chapter unless a different meaning clearly appears from the context:
(1) "Business entity" means any corporation, whether for profit or not for profit, domestic corporation or foreign corporation, as defined in section 7-1.1-2, financial institution, cooperative, association, receivership, trust, holding company, firm, joint stock company, public utility, sole proprietorship, partnership, limited partnership, or any other entity recognized by the laws of the United States and/or the state of Rhode Island for the purpose of doing business. The term "business entity" does not include a political action committee organized pursuant to this chapter or a political party committee or an authorized campaign committee of a candidate or office holder.
(2) "Candidate" means any individual who undertakes any action, whether preliminary or final, which is necessary under the law to qualify for nomination for election, or election to public office, and/or any individual who receives a contribution or makes an expenditure or gives his or her consent for any other person to receive a contribution or make an expenditure with a view to bringing about his or her nomination or election to any public office, whether or not the specific public office for which he or she will seek nomination or election is known at the time the contribution is received or the expenditure is made and whether or not he or she has announced his or her candidacy or filed a declaration of candidacy at that time.
(3) "Contributions" and "expenditures" include all transfers of money, paid personal services, or other thing of value to or by any candidate, committee of a political party, or political action committee. A loan shall be considered a contribution of money until it is repaid.
(4) "Election" means any primary, general, or special election or town meeting for any public office of the state, municipality, or district or for the determination of any question submitted to the voters of the state, municipality, or district.
(5) "Election cycle" means the twenty-four (24) month period commencing on January 1 of odd number years and ending on December 31 of even number years; provided, with respect to the public financing of election campaigns of general officers under sections 17-25-19, 17-25-20, and 17-25-25, "election cycle" means the forty-eight (48) month period commencing on January 1 of odd numbered years and ending December 31 of even numbered years.
(6) "Other thing of value" means any item of tangible real or personal property, of a fair market value in excess of one hundred dollars ($100).
(7) "Paid personal services" means personal services of every kind and nature the cost or consideration for which is paid or provided by someone other than the committee or candidate for whom the services are rendered, but shall not include personal services provided without compensation by persons volunteering their time.
(8) "Person" means an individual, partnership, committee, association, corporation, and any other organization.
(9) "Political action committee" means any group of two (2) or more persons which accepts any contributions to be used for advocating the election or defeat of any candidate or candidates or to be used for advocating the approval or rejection of any question or questions submitted to the voters. Only political action committees which have accepted contributions from fifteen (15) or more persons in amounts of ten dollars ($10.00) or more within an election cycle shall be permitted to make contributions, and those committees must make contributions to at least five (5) or more candidates for state or local office within an election cycle.
(10) "Public office" means any state, municipal, school, or district office or other position that is filled by popular election, except political party offices. "Political party offices" means any state, city, town, ward, or representative or senatorial district committee office of a political party or delegate to a political party convention, or any similar office.
(11) "State" means the state of Rhode Island.
(12) "Testimonial affair" means an affair of any kind or nature including, but not limited to, cocktail parties, breakfasts, luncheons, dinners, dances, picnics, or similar affairs expressly and directly intended to raise campaign funds in behalf of a candidate to be used for nomination or election to a public office in this state, or expressly and directly intended to raise funds in behalf of any state or municipal committee of a political party, or expressly and directly intended to raise funds in behalf of any political action committee.
17-25-5. Duties and powers of the board of election -- (a) The board of elections has authority to perform the duties that are necessary to implement the provisions of this chapter. Without limiting the generality of the foregoing, the board is authorized and empowered to:
(1) Develop forms for the making of the required reports to be filed with the board of elections, which forms shall contain a notice setting forth the times and dates when reports are required to be filed;
(2) Prepare and publish a manual for all candidates, political party committees, and political action committees prescribing the requirements of the law, including uniform methods of bookkeeping and reporting and requirements pertaining to the length of time that any person required to keep any records pursuant to the provisions of this chapter shall retain these records, or any class or category of records, or any other documents;
(3) Adopt rules and regulations to carry out the purposes of this chapter;
(4) Prepare and make available for public inspection through the office of the board of elections summaries of all reports grouped according to candidates and political parties;
(5) Prepare and publish, prior to May 1 or as soon as practicable thereafter of each year, an annual report to the general assembly;
(6) Ascertain whether candidates or political party committees, or political action committees, have failed to file reports or have filed defective reports; and may for good cause shown extend the dates upon which reports are required to be filed;
(7) (i) Conduct confidential investigations and/or closed hearings in accordance with this title relative to alleged violations of this chapter either on its own initiative or upon receipt of a verified written complaint, which complaint shall, under pain and penalty of perjury, be based upon actual knowledge and not merely on information and belief. Upon completion of its investigation and/or hearings, if the board has reason to believe that a violation of this chapter has occurred or that a complainant has willfully sworn or affirmed falsely, the chairperson of the board of elections is authorized to and shall issue to the person found to be in violation of this chapter a summons pursuant to section 12-7-11 to appear before the division of the district court where the person resides and shall be prosecuted by the attorney general. Any action taken by the board as a result of a written verified complaint shall, whenever possible, be completed no later than five (5) business days after its receipt and if no violation is found to exist, all records and papers shall be kept confidential unless further legal proceedings are instituted.
(ii) The confidentiality of an audit, investigation, and/or hearing, and/or findings may be waived in writing only by the person or persons complained of or audited. However, once an audit is complete and presented to the board, the audit will be a matter of public record.
(8) Conduct compliance reviews and audits of campaign accounts as necessary, and in a manner consistent with the provisions of this chapter.
(b) The board of elections shall take the necessary or appropriate steps to furnish timely and adequate information, in appropriate printed summaries and in any other form it may see fit, to every candidate or prospective candidate for public office who becomes or is likely to become subject to the provisions of this chapter, and to every treasurer designated under the provisions of this chapter, informing them of their actual or prospective obligations and responsibilities under this chapter.
(c) (1) The board of elections is authorized, upon written request, to render written advisory opinions as to whether a given set of facts and circumstances set forth in the request would constitute a violation of any of the provisions of this chapter, or whether a given set of facts and circumstances set forth in the request would render any person subject to any of the reporting requirements of this chapter, provided that the requirement for a written opinion may be voluntarily waived by the candidate or committee.
(2) Unless an extension of time is consented to by any person who submits a written request for an advisory opinion, the board of elections shall, whenever possible, render its written advisory opinion within five (5) business days of receipt of the request.
(d) (1) For each quarterly report required to be filed, the board shall send a postcard by regular mail to each person and entity required to file a report, which will notify the person or entity that a report required to be filed is due within fourteen (14) days.
(2) The failure to receive this notice shall not absolve the person or entity of the reporting requirements contained in this chapter.
17-25-7.2. Personal use of campaign funds prohibited -- (a) The personal use by any elected public office holder or by any candidate for public office as defined in section 17-25-3 of campaign funds contributed after April 29, 1992 shall be prohibited. For the purposes of this section "personal use" is defined as any use other than expenditures related to gaining or holding public office and for which the candidate for public office or elected public official would be required to treat the amount of the expenditure as gross income under section 61 of the Internal Revenue Code of 1986, 26 U.S.C. section 61, or any subsequent corresponding Internal Revenue Code of the United States, as from time to time amended.
(b) Expenditures that are specifically prohibited under this chapter include:
(1) any residential or household items, supplies or expenditures, including mortgage, rent or utility payments for any part of any personal residence of a candidate or officeholder or a member of the candidate's or officeholder's family;
(2) mortgage, rent or utility payments for any part of any non-residential property that is owned by a candidate or officeholder or a member of a candidate's or officeholder's family and used for campaign purposes, to the extent the payments exceed the fair market value of the property usage;
(3) funeral, cremation or burial expenses, including any expenses related to deaths within a candidate's or officeholder's family;
(4) clothing, other than items of de minimis value that are used in the campaign;
(5) tuition payments;
(6) dues, fees or gratuities at a country club, health club, recreational facility or other nonpolitical organization, unless they are part of a specific fundraising event that takes place on the organization's premises;
(7) salary payments to a member of a candidate's family, unless the family member is providing bona fide services to the campaign. If a family member provides bona fide services to a campaign, any salary payments in excess of the fair market value of the services provided is personal use;
(8) admission to a sporting event, concert, theater or other form of entertainment unless part of a specific campaign or officeholder activity;
(9) payment of any fines, fees or penalties assessed pursuant to this chapter.
(c) Any expense that results from campaign or officeholder activity is permitted use of campaign funds. Such expenditures may include:
(1) the defrayal of ordinary and necessary expenses of a candidate or officeholder;
(2) office expenses and equipment, provided said expenditures and the use of said equipment can be directly attributable to the campaign or the officeholder's duties and responsibilities;
(3) donations to charitable organizations, provided the candidate or officeholder does not personally benefit from the donation or receive compensation from the recipient organization;
(4) travel expenses for an officeholder provided that the travel is undertaken as an ordinary and necessary expense of seeking, holding, or maintaining public office, or seeking, holding, or maintaining a position within the legislature or other publicly elected body. If a candidate or officeholder uses campaign funds to pay expenses associated with travel that involves both personal activities and campaign or officeholder activities, the incremental expenses that result from the personal activities are personal use, unless the person(s) benefiting from this use reimburse(s) the campaign account within thirty (30) days for the amount of the incremental expenses;
(5) gifts of nominal value and donations of a nominal amount made on a special occasion such as a holiday, graduation, marriage, retirement or death, unless made to a member of the candidate's or officeholder's family;
(6) meal expenses which are incurred as part of a campaign activity or as apart of a function that is related to the candidate's or officeholder's responsibilities, including meals between and among candidates and/or officeholders that are incurred as an ordinary and necessary expense of seeking, holding, or maintaining public office, or seeking holding, or maintaining a position within the legislature or other publicly elected body;
(7) food and beverages which are purchased as part of a campaign or officeholder activity.
(d) Any campaign funds not used to pay for the expenses of gaining or holding public office may:
(1) Be maintained in a campaign account(s);
(2) Be donated to a candidate for public office, to a political organization, or to a political action committee, subject to the limitation on contributions in section 17-25-10.1;
(3) Be transferred in whole or in part into a newly established political action committee;
(4) Be donated to a tax exempt charitable organization as that term is used in section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. section 501, or any subsequent corresponding internal revenue code of the United States as from time to time amended;
(5) Be donated to the state of Rhode Island; or
(6) Be returned to the donor.
17-25-8. Appointment of campaign treasurer by candidate -- Filings -- (a) Each candidate in an election shall file a "notice of organization" with the board of elections appoint one campaign treasurer before receiving any contribution or expending any money in furtherance or aid of the candidate's candidacy. The designation of the campaign treasurer shall be made by the candidate's filing the name and address of the campaign treasurer with the board of elections. The "notice of organization" shall include the name and address of the candidate, the campaign treasurer and the committee being established.
(b) A campaign treasurer of the candidate may appoint deputy campaign treasurers as required. The candidate shall file the names and addresses of deputy campaign treasurers with the board of elections.
(c) A candidate may remove a campaign treasurer or deputy campaign treasurer. In the case of the death, resignation, or removal of a campaign treasurer, the candidate shall appoint a successor as soon as practicable and shall file his or her name and address with the board of elections within ten (10) days. A candidate may serve as his or her own campaign treasurer, and upon failure to designate a treasurer, the candidate shall be designated his or her own treasurer by the board of elections.
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 or to advocate the approval or rejection of any question in any election except through:
(1) The appointed campaign treasurer, or deputy campaign treasurers, of the candidates;
(2) The appointed campaign treasurer or deputy campaign treasurers of a political party committee; or
(3) The appointed campaign treasurer or deputy campaign treasurer of a political action committee.
(b) (1) It shall be lawful, however, 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 or to advocate the approval or rejection of any question; provided, that any person making the expenditure shall be required to report all 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 causes 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 section 17-25-23.
(c) Any anonymous contribution received by a campaign treasurer or deputy campaign treasurer may 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.
17-25-10.1. Political contributions -- Limitations -- (a) (1) No person, other than the candidate to his or her own campaign, nor any political action committee may make a contribution or contributions to any candidate as defined by section 17-25-3 or political action committee or political party committee which in the aggregate exceed one thousand dollars ($1,000) within a calendar year, nor may any person make contributions to more than one state or local candidate, to more than one political action committee, or to more than one political party committee or to a combination of state and local candidates and political action committees and political party committees which in the aggregate exceed ten thousand dollars ($10,000) within a calendar year, nor may any political action committee make contributions which in the aggregate exceed twenty-five thousand dollars ($25,000) within a calendar year, nor may any candidate or any political action committee or any political party committee accept a contribution or contributions which in the aggregate exceed one thousand dollars ($1,000) within a calendar year from any one person or political action committee.
(2) Notwithstanding the provisions of subdivision (a)(1), a person or political action committee or political party committee may contribute an amount which in the aggregate does not exceed ten thousand dollars ($10,000) within a calendar year to a political party committee, which funds can be utilized for organizational and party building activities, but may not be used for contributions to candidates state and local for public office.
(b) Contributions to a named candidate made to any political committee authorized by that candidate to accept contributions on the candidate's behalf shall be considered to be contributions made to the candidate. Contributions to a candidate by a political committee for another person shall be considered to be contributions by that person.
(c) Expenditures made by any person in cooperation, consultation or concert with, or at the request or suggestion of, a candidate, the candidate's authorized political committees, or their agents shall be considered to be a contribution to the candidate.
(d) The financing by any person of the dissemination, distribution, or republication, in whole or in part, of any broadcast or any written, graphic, or other form of campaign materials prepared by the candidate, the candidate's campaign committees, or their authorized agents shall be considered to be a contribution to a candidate.
(e) Nothing in this section shall be construed to restrict political party committees organized pursuant to this title from making contributions to the candidates of that political party; provided, that those contributions, other than allowable "in-kind" contributions, shall not exceed, in the aggregate, twenty-five thousand dollars ($25,000) to any one candidate within a calendar year, nor may any candidate accept a contribution or contributions, other than allowable "in-kind" contributions, which in the aggregate exceed twenty-five thousand dollars ($25,000) within a calendar year from all committees of his or her political party. There shall be no restriction on the amount of "in-kind" contributions that a political party committee may make to a candidate of its political party; provided, that for the purposes of this subsection only, the cost of any preparation and airing of television and/or radio advertisements and the cost of any print advertisements is not considered an allowable "in-kind" contribution and is subject to the previously mentioned aggregate limitation of twenty-five thousand dollars ($25,000).
(f) (1) A contribution from an individual's dependent children as defined in section 36-14-2 shall be deemed a contribution from the individual for the purpose of determining whether aggregate contributions exceed either the one hundred dollar ($100) threshold for reporting purposes or the one thousand dollar ($1,000) maximum for contributions to a single candidate or political action committee or the ten thousand dollar ($10,000) maximum for contributing to all candidates and political action committees within a calendar year.
(2) No dependent child shall contribute an amount which, when added to contributions already made by that child's parent or legal guardian and by other dependent children of that parent or legal guardian, exceed the one thousand dollar ($1,000) maximum for contributions to a single candidate or political action committee or exceed the ten thousand dollar ($10,000) maximum for contributions to all state and local candidates and political action committees within a calendar year.
(g) Nothing in this section restricts the amount of money that a candidate can borrow in his or her own name, and subsequently contribute or loan to his or her own campaign.
(h) It is unlawful for any corporation, whether profit or non-profit, domestic corporation or foreign corporation, as defined in section 7-1.1-2, or other business entity to make any campaign contribution or expenditure as defined in section 17-25-3 to or for any candidate, political action committee, or political party committee, or for any candidate, political action committee, or political party committee to accept any campaign contribution from a corporation or other business entity. Any contribution made in the personal name of any employee of a corporation or other business entity, for which the employee received or will receive reimbursement from the corporation or other business entity, shall be considered a contribution by the corporation or other business entity, in violation of this section.
(i) All contributions of funds shall be by check or money order identifying the source of the funds; provided however, that candidates may accept contributions in cash which do not exceed twenty-five dollars ($25.00) in the aggregate from an individual within a calendar year. The cash contribution must be delivered directly by the donor to the candidate, his or her campaign treasurer, or deputy treasurer. The treasurer or deputy treasurer shall maintain a record of the name and address of all persons making these cash contributions.
(j) (1) No entity other than an individual, a political action committee which is registered and qualified pursuant to the terms of this chapter, political party committee authorized by this title, or an authorized committee of an elected official or candidate established pursuant to this chapter may make any contribution to or any expenditure on behalf of or in opposition to any candidate, ballot question, political action committee, or political party.
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 section 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-eight (28th) day next preceding the day of the primary, general or special election pursuant to section 17-25-11(a)(2), 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 or question, 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 or question:
(1) At ninety (90) day intervals commencing on the date on which the individual first becomes a candidate as defined in section 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 section 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 this 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 in excess of one hundred dollars ($100).
(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; 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) 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 or to advocate the approval or rejection of any question 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 one hundred twenty (120) days with the next quarterly report following the election; however, the time to file under this subsection shall be no later than thirty (30) days following the ninety (90) day period. ,except when the thirty (30) days filing deadline following the ninety (90) day reporting period occurs less than twenty-eight (28) days before an election in which case said report shall be filed pursuant to the provisions of sections 17-25-11(a)(1) and 17-25-11(a)(2).
(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 or question if the total amount to be expended in behalf of the candidacy or question 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 which 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) 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 thirty (30) days following the ninety (90) day period. , except when the thirty (30) days filing deadline following the ninety (90) day reporting period occurs less than twenty-eight (28) days before an election in which case said report shall be filed pursuant to the provisions of sections 17-25-11(a)(1) and 17-25-(a)(2).
(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, however, that said 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 shall not have filed said report by the date required, unless granted an extension pursuant to section 17-25-11(g)(1), shall be fined twenty-five dollars ($25.00). Notwithstanding any of the above, 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 shall fail to file the reports required by this section. A person or entity who is sent a notice of non-compliance and fails to file the required report within seven (7) days of the receipt of said 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 above, 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) 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.
17-25-15. Political action committee -- Notice of formation -- (a) No political action committee shall accept any contributions or make any expenditures prior to filing notice of its organization with the board of elections. The notice shall contain:
(1) The name or names of any candidates whose election or defeat the committee intends to advocate and/or the question or questions whose approval or rejection the committee intends to advocate;
(2) The names and addresses of all officers of the committee;
(3) The mailing address or addresses of the committee;
(4) The goals and purposes of the political action committee; and
(5) A statement indicating whether the membership and/or contributor base of the political action committee is derived primarily from the employees of one corporation or business entity or from one business or professional group or association or labor union and, if so, the identity of that employer or group or association or union.
(b) No committee shall advocate the election or defeat of any candidate or question other than that set forth in its notice of organization or amendment to the notice. A political action committee may amend its notice of organization at any time. The board of elections shall prescribe forms in compliance with this section.
(c) In addition to all other reporting requirements, each political action committee shall include in each report required to be filed by this chapter:
(1) The source and amount of all funds received by the committee in excess of one hundred dollars ($100) in the aggregate from a single source in a calendar year; provided, that funds received through a regular payroll checkoff plan in which the aggregate contribution from each individual does not exceed one hundred dollars ($100) per calendar year shall report the name and address of each entity transferring the funds to the committee, the aggregate amount received from the payroll checkoff, and the total number of contributors; and provided also, that funds received by the political action committee of a labor organization from the members of the labor organization in amounts not exceeding twenty-five dollars ($25.00) per calendar year from a single source shall be reported by the aggregate amount received and the total number of members of the labor organization contributing;
(2) The name and address of each person to whom expenditures were made, and the amount and purpose of each expenditure; and
(3) The name and address of each elected official and candidate for elected office to whom a contribution was made, and the amount of the contribution.
(d) The board of elections may reject the use by a political action committee of a name which is misleading and/or does not accurately identify the membership or contributor base of the committee.
(e) If a political action committee derives more than fifty percent (50%) of its funds from the employees, officers, directors, investors, and/or stockholders of a corporation or other business entity, the name of the political action committee must incorporate the name of that corporation or business entity. If a political action committee derives more than fifty percent (50%) of its funds from persons affiliated with one industry, profession, trade organization, or association or labor union, the name of the political action committee must identify that industry, profession, trade organization or association, or labor union.
(f) Notwithstanding any provision to the contrary, a political action committee organized exclusively for the purpose of promoting or opposing a ballot question may expend in excess of twenty-five thousand dollars ($25,000) to promote or oppose that referendum, and shall not be subject to the requirement of making contributions to at least five (5) candidates, The political action committee shall terminate all activity within thirty (30) days following that election.
17-25-22. Time period for payment of public funds -- (a) No public funds shall be dispersed to candidates until after the date of the primary election. In order to receive matching public funds the candidate must be the nominee for general office of a political party as defined in section 17-12.1-12 or an independent candidate for general office who meets all of the requirements set forth in section 17-25-20(6). The candidate must submit to the board of elections proof of receipt of qualifying private contributions and supporting documentation as required by the board. The board of elections shall, within five (5) business days of the receipt of the request for payment of matching funds, either pay over funds to the candidate or disallow all or a portion of the request and state in writing the reasons for disallowance.
(b) A candidate may submit supplemental applications for public funds until the time that the limits permitted are reached.
17-25-28. Board of elections -- Regulation and auditing of matching fund program -- In addition to all other powers and duties established by law, the board of elections is empowered to adopt and enforce rules, regulations, and auditing procedures required to fulfill the mandates of sections 17-25-19 through 17-25-27. The board is empowered among other things to:
(1) (i) Ascertain whether any contributions to or expenditures for candidates for general office have exceeded limits prescribed by sections 17-25-18 through 17-25-27.
(ii) Ascertain the amount and source of contributions received and expenditures made by all candidates for governor for general offices whether or not any candidate chose to participate in public financing.
(2) Issue advisory opinions upon its own initiative or upon application of any candidate.
(3) (i) Conduct investigations and/or hearings relative to alleged violations of sections 17-25-18 through 17-25-27 either on its own initiative or upon receipt of a verified written complaint, which complaint shall, under pain and penalty of perjury, be based upon actual knowledge and not merely on information and belief.
(ii) Upon receipt of a verified written complaint or upon receipt of evidence which is deemed sufficient by the board, the board may initiate a preliminary investigation into any alleged violation of sections 17-25-18 through 17-25-27. All board proceedings and records relating to a preliminary investigation shall be confidential, except that the board may turn over to the attorney general evidence which may be used in a criminal proceeding. The board shall notify any person who is the subject of the preliminary investigation of the existence of the investigation and the general nature of the alleged violation by certified or registered mail, return receipt requested, within seven (7) days of the commencement of the investigation.
(iii) If a preliminary investigation fails to indicate reasonable cause for belief that sections 17-25-18 through 17-25-27 have been violated, the board shall immediately terminate the investigation and notify, in writing, the complainant, if any, and the person who had been the subject of the investigation.
(iv) If a preliminary investigation indicates reasonable cause for belief that sections 17-25-18 through 17-25-27 have been violated, the board may, upon a majority vote, initiate a full investigation and appropriate proceedings to determine whether there has been a violation.
(v) All testimony in board proceedings shall be under oath. All parties shall have the right to call and examine witnesses, to introduce exhibits, to cross-examine witnesses who testify, to submit evidence, and to be represented by counsel. Before testifying, all witnesses shall be given a copy of the regulations governing board proceedings. All witnesses are entitled to be represented by counsel.
(vi) Any person whose name is mentioned during a proceeding of the board and who may be adversely affected by it may appear personally before the board on his or her own behalf or file a written statement for incorporation into the record of the proceeding.
(vii) Within fourteen (14) days after the end of proceedings, the board shall meet in executive session for the purpose of reviewing the evidence before it. Within thirty (30) days after completion of deliberations, the board shall publish a written report of its findings and conclusions.
(viii) Upon a finding that there has been a violation of sections 17-25-18 through 17-25-27 or any other campaign finance law, the board may issue an order requiring the violator to: (A) cease and desist from the violation; (B) file any report, statements or other information required by this chapter; and/or (C) pay a civil fine for each violation of any section of this chapter in an amount authorized by that section or, if no authorization exists, in amount not to exceed the greater of one thousand dollars ($1,000) or three (3) times the amount the violator failed to report properly or unlawfully contributed, expended, gave, or received. The board may turn over to the attorney general any evidence which may be used in a subsequent criminal proceeding against any violator.
(ix) The board may file a civil action in superior court to enforce an order issued by it pursuant to this section.
(x) Any final action by the board made pursuant to this chapter shall be subject to review in superior court upon petition of any interested person filed within thirty (30) days after the action for which review is sought. The court shall enter a judgment enforcing, modifying or setting aside the order of the board or it may remand the proceeding to the board for any further action that the court may decide.
SECTION 3. Section 17-27-2 of the General Laws in Chapter 17-27 entitled "Reporting of Political Contributions by State Vendors" is hereby amended to read as follows:
17-27-2. Affidavits required -- In connection with every contract contracts for goods or services to be provided at a cost of five thousand dollars ($5,000) or more between a state vendor and a state agency, whether written or unwritten, the state vendor shall execute, under oath, an affidavit concerning reportable contributions pursuant to chapter 25 of this title. The affidavit shall state whether If the state vendor has, within the twenty-four (24) months preceding the date of the contract, or subsequent to October 1, 1993, whichever is later, contributed an aggregate amount in excess of two hundred fifty dollars ($250) within the a calendar year to any general officer, any candidate for a general office, or any political party; and, if the answer to that question is in the affirmative, then the state vendor shall file the affidavit with the board of elections and shall list the name of the general officer or candidate or political party, the amount and date of each contribution made during the preceding twenty-four (24) months or subsequent to October 1, 1993, whichever is later, and the total gross amount, in dollars, of contracts entered into between the state vendor and all state agencies during that period of time.
SECTION 4. This act shall take effect on November 1, 2001.