Bill Text: CT HB07211 | 2017 | General Assembly | Introduced

Connecticut House Bill 7211 (Prior Session Legislation)

Introduced

Bill Title: An Act Concerning Disclosure Of Coordinated And Independent Spending In Campaign Finance.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2017-03-02 - Public Hearing 03/06 [HB07211 Detail]

Download: Connecticut-2017-HB07211-Introduced.html


General Assembly		*Raised Bill No. 7211*
*January Session, 2017*		LCO No. 4632
		04632_______GAE
Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS
Introduced by:
(GAE)

AN ACT CONCERNING DISCLOSURE OF COORDINATED AND INDEPENDENT SPENDING IN CAMPAIGN FINANCE.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subdivision (3) of section 9-601 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(3) "Political committee" means (A) a committee organized by a business entity or organization, (B) persons other than individuals, or two or more individuals organized or acting jointly conducting their activities in or outside the state, (C) an exploratory committee, (D) a committee established by or on behalf of a slate of candidates in a primary for the office of justice of the peace, but does not mean a candidate committee or a party committee, (E) a legislative caucus committee, [or] (F) a legislative leadership committee, or (G) an independent expenditure political committee, as defined in section 2 of this act.

Sec. 2. (NEW) (Effective from passage) As used in chapters 155 and 157 of the general statutes, "independent expenditure political committee" means a political committee that makes only (1) independent expenditures, as defined in section 9-601c of the general statutes, as amended by this act, and (2) contributions to other independent expenditure political committees.

Sec. 3. Subsection (a) of section 9-601a of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) As used in this chapter and chapter 157, "contribution" means:

(1) Any gift, subscription, loan, advance, payment or deposit of money or anything of value, made (A) to promote, attack, support or oppose the success or defeat of any [candidate] person seeking (i) the nomination for election, or (ii) election, or (B) for the purpose of aiding or promoting (i) the success or defeat of any referendum question, or (ii) the success or defeat of any political party;

(2) A written contract, promise or agreement to make a contribution for any such purpose;

(3) The payment by any person, other than a candidate or treasurer, of compensation for the personal services of any other person which are rendered without charge to a committee or candidate for any such purpose;

(4) An expenditure that is not an independent expenditure; or

(5) Funds received by a committee which are transferred from another committee or other source for any such purpose.

Sec. 4. Subsections (a) and (b) of section 9-601b of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(a) As used in this chapter and chapter 157, [the term] "expenditure" means:

(1) Any purchase, payment, distribution, loan, advance, deposit or gift of money or anything of value, when made (A) to promote, attack, support or oppose the success or defeat of any [candidate] person seeking (i) the nomination for election, or (ii) election, [of any person] or (B) for the purpose of aiding or promoting (i) the success or defeat of any referendum question, or (ii) the success or defeat of any political party;

(2) Any communication that (A) refers to one or more clearly identified candidates, and (B) (i) is broadcast (I) by radio, by television, other than on a public access channel, [or] by satellite communication or via the Internet, or (II) as a paid-for telephone communication, or (ii) appears in a newspaper [,] or magazine or on a billboard, or (iii) is sent by mail; or

(3) The transfer of funds by a committee to another committee.

(b) [The term "expenditure"] "Expenditure" does not mean:

(1) A loan of money, made in the ordinary course of business, by a state or national bank;

(2) A communication made by any corporation, organization or association solely to its members, owners, stockholders, executive or administrative personnel, or their families;

(3) Nonpartisan voter registration and get-out-the-vote campaigns by any corporation, organization or association aimed at its members, owners, stockholders, executive or administrative personnel, or their families;

(4) Uncompensated services provided by individuals volunteering their time on behalf of a party committee, political committee, slate committee or candidate committee, including any services provided for the benefit of nonparticipating and participating candidates under the Citizens' Election Program and any unreimbursed travel expenses made by an individual who volunteers the individual's personal services to any such committee. For purposes of this subdivision, an individual is a volunteer if such individual is not receiving compensation for such services regardless of whether such individual received compensation in the past or may receive compensation for similar services that may be performed in the future;

(5) Any news story, commentary or editorial distributed through the facilities of any broadcasting station, newspaper, magazine or other periodical, unless such facilities are owned or controlled by any political party, committee or candidate;

(6) The use of real or personal property, a portion or all of the cost of invitations and the cost of food or beverages, voluntarily provided by an individual to a candidate, including a nonparticipating or participating candidate under the Citizens' Election Program, or to a party, political or slate committee, in rendering voluntary personal services at the individual's residential premises or a community room in the individual's residence facility, to the extent that the cumulative value of the invitations, food or beverages provided by an individual on behalf of any candidate or committee does not exceed four hundred dollars with respect to any single event or does not exceed eight hundred dollars for any such event hosted by two or more individuals, provided at least one such individual owns or resides at the residential premises, and further provided the cumulative value of the invitations, food or beverages provided by an individual on behalf of any such candidate or committee does not exceed eight hundred dollars with respect to a calendar year or single election, as the case may be;

(7) A communication described in subdivision (2) of subsection (a) of this section that includes speech or expression [made] (A) made prior to the ninety-day period preceding the date of a primary or an election at which the clearly identified candidate or candidates are seeking nomination to public office or position, [that is made] including for the purpose of influencing any legislative or administrative action, as defined in section 1-91, or executive action, [or] (B) made during a legislative session for the purpose of influencing legislative action, or (C) that constitutes a candidate debate or that solely promotes any such debate and is made by or on behalf of the person sponsoring the debate, provided any such communication described in this subdivision shall not be made to promote, attack, support or oppose the success or defeat of any person seeking (i) the nomination for election, or (ii) election;

(8) An organization expenditure by a party committee, legislative caucus committee or legislative leadership committee;

(9) A commercial advertisement that refers to an owner, director or officer of a business entity who is also a candidate, [and that] which commercial advertisement had previously been broadcast or appeared when the owner, director or officer was not a candidate;

(10) A communication containing an endorsement on behalf of a candidate for nomination or election to the office of Governor, Lieutenant Governor, Secretary of the State, State Treasurer, State Comptroller, Attorney General, state senator or state representative, from a candidate for the office of Governor, Lieutenant Governor, Secretary of the State, State Treasurer, State Comptroller, Attorney General, state senator or state representative, shall not be an expenditure attributable to the endorsing candidate, if the candidate making the endorsement is unopposed at the time of the communication;

(11) A communication that is sent by mail to addresses in the district for which a candidate being endorsed by another candidate pursuant to the provisions of this subdivision is seeking nomination or election to the office of state senator or state representative, containing an endorsement on behalf of such candidate for such nomination or election, from a candidate for the office of state senator or state representative, shall not be an expenditure attributable to the endorsing candidate, if the candidate making the endorsement is not seeking election to the office of state senator or state representative for a district that contains any geographical area shared by the district for the office to which the endorsed candidate is seeking nomination or election;

(12) Campaign training events provided to multiple individuals by a legislative caucus committee and any associated materials, provided the cumulative value of such events and materials does not exceed six thousand dollars in the aggregate for a calendar year;

(13) A lawful communication by any charitable organization which is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended;

(14) The use of offices, telephones, computers and similar equipment provided by a party committee, legislative caucus committee or legislative leadership committee that serve as headquarters for or are used by such party committee, legislative caucus committee or legislative leadership committee; or

(15) An expense or expenses incurred by a human being acting alone in an amount that is two hundred dollars or less, in the aggregate, that benefits a candidate for a single election.

Sec. 5. Section 9-601c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) (1) As used in this chapter and chapter 157, [the term] "independent expenditure" means an expenditure, as defined in section 9-601b, as amended by this act, that is made entirely without the consent, coordination [,] or consultation of [,] a candidate, [or agent of the candidate,] candidate committee, political committee or party committee, or any agent of any such candidate or committee.

(2) For purposes of this section, a payment shall not be considered to be made by a person with the consent, coordination or consultation of, or at the request or suggestion of, a candidate or committee solely on the grounds that such person or the agent of such person engaged in discussion with the candidate, committee or any agent of the candidate or committee regarding such person's position on a legislative or policy matter, including urging the candidate or committee to adopt such person's position, provided any such discussion between such person or the agent of such person and the candidate, committee or any agent of the candidate or committee shall not regard the campaign advertising, message, strategy, policy, polling, fund-raising, campaign operations or allocation of resources of the candidate, committee or such person.

(b) As used in this section, (1) "candidate" includes any person who, during an election cycle, becomes a candidate later in such election cycle and benefits from any expenditure (A) made by a coordinated spender, or (B) that is not an independent expenditure, (2) "election cycle" means, with respect to an office to which a person seeks nomination or election, the period beginning the day after the previous regular election for such office and ending the day of the immediately following regular election for such office, and (3) "member of the family" means (A) the spouse of the candidate, (B) any sibling, parent, child, grandparent, grandchild, aunt or uncle of the candidate, (C) any sibling parent, child, grandparent, grandchild, aunt or uncle of the spouse of the candidate, or (D) the spouse of any child of any such individual described in subparagraph (B) or (C) of this subdivision.

(1) Any person directly or indirectly formed, controlled or established in an election cycle or the one immediately preceding by, at the request or suggestion of or with the encouragement or approval of the candidate, committee or any agent of the candidate or committee;

(2) Except as otherwise provided in this subdivision, any person on whose behalf during an election cycle the candidate, committee or any agent of the candidate or committee solicits funds or engages in fund-raising activity, including by providing to such person the name of any potential donor or other list to be used by such person in engaging in fund-raising activity regardless of whether such person pays fair market value for any such name or list so provided. Such person shall not be considered a coordinated spender under this subdivision if any funds raised by the candidate, committee or any agent of the candidate or committee are (A) segregated from all other accounts controlled by such person, and (B) not used to make (i) independent expenditures that benefit the candidate or committee, or (ii) contributions or covered transfers to any other person who later in such election cycle makes independent expenditures, contributions or covered transfers that benefit the candidate or committee;

(3) Any person established, directed or managed by any other person who during an election cycle (A) served in such election cycle as a political, media or fund-raising advisor or consultant for the candidate, committee or any entity controlled by the candidate or committee, or (B) held in such election cycle a formal position with a title for the candidate or committee;

(4) Any person who is a member of the family of the candidate or who is established, directed or managed by any member of the family of the candidate; or

(5) Any person or any officer or agent of such person who has had more than incidental discussion with a member of the family of the candidate regarding campaign advertising, message, strategy, policy, polling, fund-raising, campaign operations or allocation of resources of the candidate, committee or such person.

(d) Any expenditure made by a coordinated spender, as described in subsection (c) of this section, shall be deemed to have been made with the consent, coordination or consultation of the candidate, committee or any agent of the candidate of committee.

[(b)] (e) When the State Elections Enforcement Commission evaluates an expenditure, other than an expenditure described in subsection (d) of this section, to determine whether such expenditure is an independent expenditure, there shall be a rebuttable presumption that the following expenditures are not independent expenditures:

(1) An expenditure made by a person [in cooperation, consultation or in concert with, at the request, suggestion or direction of, or] pursuant to a general or [particular] tacit understanding with (A) a candidate, candidate committee, political committee or party committee, or (B) a consultant or other agent acting on behalf of a candidate, candidate committee, political committee or party committee;

(2) An expenditure made by a person for the production, dissemination, distribution or publication, in whole or in substantial part, of any broadcast or any written, graphic or other form of political advertising or campaign communication prepared by (A) a candidate, candidate committee, political committee or party committee, or (B) a consultant or other agent acting on behalf of a candidate, candidate committee, political committee or party committee;

(3) An expenditure made by a person based on information about a candidate's, political committee's, or party committee's plans, projects or needs, provided by (A) a candidate, candidate committee, political committee or party committee, or (B) a consultant or other agent acting on behalf of a candidate, candidate committee, political committee or party committee, with the intent that such expenditure be made;

(4) An expenditure made by an individual who, [in the same] during an election cycle, is serving or has served in such election cycle (A) as the campaign chairperson, treasurer or deputy treasurer of a candidate committee, political committee or party committee benefiting from such expenditure, or (B) in any other executive or policymaking position, including as a member, employee, fundraiser, consultant or other agent, of a candidate, candidate committee, political committee or party committee;

(5) An expenditure made by a person or an entity on or after January first in the year of an election in which a candidate is seeking public office that benefits such candidate when such person or entity has hired an individual as an employee or consultant and such individual was an employee of or consultant to such candidate, such candidate's candidate committee or such candidate's opponent's candidate committee during [any part of the eighteen-month period preceding such expenditure] an election cycle or the one immediately preceding;

(6) An expenditure made by a person for fundraising activities (A) for a candidate, candidate committee, political committee or party committee, or a consultant or other agent acting on behalf of a candidate, candidate committee, political committee or party committee, or (B) for the solicitation or receipt of contributions on behalf of a candidate, candidate committee, political committee or party committee, or a consultant or other agent acting on behalf of a candidate, candidate committee, political committee or party committee;

(7) An expenditure made by a person based on information about a candidate's campaign plans, projects or needs, that is directly or indirectly provided by a candidate, the candidate's candidate committee, a political committee or a party committee, or a consultant or other agent acting on behalf of such candidate, candidate committee, political committee or party committee, to the person making the expenditure or such person's agent, with an express or tacit understanding that such person is considering making the expenditure;

(8) An expenditure made by a person for a communication that clearly identifies a candidate during an election campaign, if the person making the expenditure, or such person's agent, has informed the candidate who benefits from the expenditure, [that] such candidate's candidate committee, a political committee or a party committee, or a consultant or other agent acting on behalf of the benefiting candidate or candidate committee, political committee [,] or party committee, concerning the communication's contents, or of the intended audience, timing, location or mode or frequency of dissemination. [As used in] For purposes of this subdivision, a communication clearly identifies a candidate when that communication contains the name, nickname, initials, photograph or drawing of the candidate or an unambiguous reference to [that] such candidate, which includes, but is not limited to, a reference that can only mean [that] such candidate; [and]

(9) An expenditure made by a person or an entity for consultant or creative services, including, but not limited to, services related to communications strategy or design or campaign strategy or to engage a campaign-related vendor, to be used to promote or oppose a candidate's election to office if the provider of such services is providing or has provided consultant or creative services to such candidate, such candidate's candidate committee or an agent of such candidate committee, or to any opposing candidate's candidate committee or an agent of such opposing candidate's candidate committee after January first of the year in which the expenditure occurs. For purposes of this subdivision, communications strategy or design does not include the costs of printing or costs for the use of a medium for the purpose of communications. For purposes of this subdivision, campaign-related vendor includes, but is not limited to, a vendor that provides any of the following services: Polling, mail design, mail strategy, political strategy, general campaign advice or telephone banking; [.] and

(10) An expenditure made by a person directly or indirectly formed, controlled or established in an election cycle or the one immediately preceding by, at the request or suggestion of or with the encouragement of any other person deemed to be a coordinated spender or any agent of such coordinated spender, including with the express or tacit approval of any such coordinated spender or agent.

[(c) When the State Elections Enforcement Commission evaluates an expenditure to determine whether an expenditure by entity is an independent expenditure, the following shall not be presumed to constitute evidence of consent, coordination or consultation within the meaning of subsection (a) of this section: (1) Participation by a candidate or an agent of the candidate in an event sponsored by the entity, unless such event promotes the success of the candidate's candidacy or the defeat of the candidate's opponent, or unless the event is during the period that is forty-five days prior to the primary for which the candidate is seeking nomination for election or election to office; (2) membership of the candidate or agent of the candidate in the entity, unless the candidate or agent of the candidate holds an executive or policymaking position within the entity after the candidate becomes a candidate; or (3) financial support for, or solicitation or fundraising on behalf of the entity by a candidate or an agent of the candidate, unless the entity has made or obligated to make independent expenditures in support of such candidate in the election or primary for which the candidate is a candidate.]

[(d)] (f) When the State Elections Enforcement Commission evaluates an expenditure to determine whether such expenditure is an independent expenditure, the commission shall consider, as an effective rebuttal to the presumptions provided in subsection [(b)] (e) of this section, the establishment by the person making the expenditure of a firewall policy designed and implemented to prohibit the flow of information between (1) employees, consultants or other individuals providing services to the person paying for the expenditure, and (2) the candidate or agents of the candidate.

Sec. 6. Section 9-601d of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Any person, as defined in section 9-601, as amended by this act, may, unless otherwise restricted or prohibited by law, including, but not limited to, any provision of this chapter or chapter 157, make unlimited independent expenditures, as defined in section 9-601c, as amended by this act, and accept unlimited covered transfers, as defined in [said] section 9-601, as amended by this act. Except as provided [pursuant to] in this section, any such person who makes or obligates to make an independent expenditure or expenditures in excess of one thousand dollars, in the aggregate, shall file statements according to the same schedule and in the same manner as is required of a treasurer of a [candidate] political committee pursuant to section 9-608, as amended by this act. Any such person, other than a committee, shall file with the proper authority as provided in section 9-603, as amended by this act, (1) a long-form report and a short-form report pursuant to subsection (c) of this section for such independent expenditure or expenditures, and (2) a short-form report pursuant to subsection (d) of this section for each subsequent independent expenditure made or obligated to be made.

(b) Any person who makes or obligates to make an independent expenditure or expenditures in excess of one thousand dollars, in the aggregate, in an election or primary for the office of Governor, Lieutenant Governor, Secretary of the State, State Treasurer, State Comptroller, Attorney General, state senator or state representative [, which exceed one thousand dollars, in the aggregate, during a primary campaign or a general election campaign, as defined in section 9-700, shall file, electronically, a long-form and a short-form report of such independent expenditure or expenditures with the State Elections Enforcement Commission pursuant to subsections (c) and (d) of this section. The person that makes or obligates to make such independent expenditure or expenditures shall file such reports] during the period beginning July first in the year of a regular election or the day the Governor issues writs of election pursuant to section 9-215 in the case of a special election for the office of state senator or state representative and ending the day following the primary or election for which such person made or obligated to make such independent expenditure or expenditures shall electronically file, in the case of a committee, a statement pursuant to section 9-608, as amended by this act, or, in the case of any person other than a committee, a long-form report and a short-form report pursuant to subsections (c) and (d) of this section not later than twenty-four hours after (1) making any such payment, or (2) obligating to make any such payment, with respect to the primary or election. [If any such person makes or incurs a subsequent independent expenditure, such person shall report such expenditure pursuant to subsection (d) of this section.] Such reports shall be filed under penalty of false statement. In the case of a special election for the office of state senator or state representative, if any person makes or obligates to make an independent expenditure or expenditures for such special election in excess of one thousand dollars, in the aggregate, prior to the day the Governor issues writs of election pursuant to section 9-215, such person shall file a statement not later than twenty-four hours after such writs of election are issued.

(c) The independent expenditure long-form report shall identify: (1) The name of the person making or obligating to make such independent expenditure or expenditures and, in the case of a person other than a human being, the name of its chief executive officer or equivalent; (2) the tax exempt status of such person, [if applicable] except that if such person files a report with the Federal Election Commission, the Internal Revenue Service or any similar out-of-state agency, such person shall also include a statement to that effect and identifying information under which any such filings are made; (3) the mailing address, and street address if different, of such person; (4) the principal business address of [the] such person, if different from either the mailing address or the street address; (5) the mailing address, street address if different, telephone number and electronic mail address of the agent for service of process in this state of such person; (6) the date of the primary, [or] election or referendum for which [the] such person made or obligated to make such independent expenditure or expenditures; [were made or obligated to be made;] (7) (A) the name of any candidate who, or the text of any referendum question that, was the subject of [any] such independent expenditure or expenditures, [and whether the] (B) whether such person made or obligated to make such independent expenditure or expenditures [were] in support of or in opposition to such candidate or referendum question, and (C) any other information required under subsection (d) of this section for such independent expenditure or expenditures; and (8) the name, telephone number and electronic mail address for the individual filing such report. [Such] Each individual filing such report shall affirm [that the expenditure reported is an independent expenditure] under penalty of false statement that each expenditure so reported is an independent expenditure.

(d) As part of any filing made pursuant to subsection (c) of this section and for each subsequent independent expenditure made or obligated to be made by a person with respect to the primary, [or] election or referendum for which a long-form report pursuant to subsection (c) of this section has been filed on behalf of such person, an individual shall file [, electronically,] a short-form report for each such independent expenditure. [, not later than twenty-four hours after such person makes a payment for an independent expenditure or obligates to make such an independent expenditure.] Such short-form report shall identify: (1) The name of the person making or obligating to make such independent expenditure; (2) the amount of the independent expenditure; (3) whether the independent expenditure was in support of or in opposition to a candidate or referendum question and the name of such candidate or text of such referendum question; (4) a brief description of the expenditure made, including the type of communication, based on categories determined by the State Elections Enforcement Commission, and the allocation of such expenditure in support of or in opposition to each such candidate or referendum question, if such expenditure was made in support of or in opposition to more than one candidate [; and] or referendum question; (5) the name, telephone number and electronic mail address for the individual filing such report; [. Such] and (6) any other information the State Elections Enforcement Commission may require to facilitate compliance with the provision of chapters 155 to 157, inclusive. Each individual filing such report shall affirm [that the expenditure reported is an independent expenditure] under penalty of false statement that each expenditure so reported is an independent expenditure.

(e) No person reporting an independent expenditure pursuant to the provisions of subsection (c) or (d) of this section shall be required to file a statement pursuant to section 9-608, as amended by this act, for such independent expenditure.

(f) (1) Except as provided in subdivision (2) of this subsection, as part of any statement filed pursuant to this section, if a person who makes or obligates to make an independent expenditure (A) has received a covered transfer during the twelve-month period prior to a primary, [or] election or referendum, as applicable to the reported independent expenditure, [for an office that a candidate described in subdivision (7) of subsection (c) of this section is seeking,] and (B) such independent expenditure is made or obligated to be made on or after the date that is one hundred eighty days prior to such primary, [or] election or referendum, such person shall disclose the source and the amount of any such covered transfer such person received that is in an amount that is five thousand dollars or more, in the aggregate, during the twelve-month period prior to such primary or election, as applicable to the reported independent expenditure.

(2) The provisions of subdivision (1) of this subsection shall not apply to any person who discloses the source and amount of a covered transfer described in subdivision (1) of this subsection as part of any report to the Federal Election Commission, [or] the Internal Revenue Service or any similar out-of-state agency, provided such person includes a copy of, or information sufficient to find, any such report as part of the [report] statement of each applicable independent expenditure filed pursuant to this section. If a source and amount of a covered transfer is not included as part of any such [report] statement, the maker of the independent expenditure shall disclose the source and amount of such covered transfer pursuant to subdivision (1) of this subsection, if applicable.

(g) (1) A person may, unless otherwise restricted or prohibited by law, including, but not limited to, any provision of this chapter or chapter 157, establish a dedicated independent expenditure account [, for the purpose of engaging in] that may be used to make independent expenditures, [that is] provided such account is segregated from all other accounts controlled by such person. Such dedicated independent expenditure account may receive covered transfers directly from persons other than the person establishing the dedicated account and may not receive transfers from another account controlled by the person establishing the dedicated account, except as provided in subdivision (2) of this subsection. If an independent expenditure is made from such segregated account, any report required pursuant to this section or disclaimer required pursuant to section 9-621, as amended by this act, [may include only] shall include at least those persons who made covered transfers directly to the dedicated independent expenditure account.

(2) If a person who has made a covered transfer to another account controlled by the person establishing a dedicated independent expenditure account requests that such covered transfer be used for the purposes of making an independent expenditure from the dedicated independent expenditure account, the amount of such covered transfer may be transferred to the dedicated independent expenditure account and shall be treated as a covered transfer directly to the dedicated independent expenditure account.

(h) Any person may file a complaint with the commission upon the belief that (1) any such independent expenditure report or statement is false, or (2) any person who is required to file an independent expenditure report under this [subsection] section has failed to do so. The commission shall make a prompt determination on such a complaint.

(i) (1) If a person fails to file a report in accordance with the provisions of this section for [an] any independent expenditure or expenditures made or obligated to be made more than ninety days before the day of a primary, [or] election or referendum, the person shall be subject to a civil penalty, imposed by the State Elections Enforcement Commission, of not more than ten thousand dollars. If a person fails to file a report required in accordance with the provisions of this section for [an] any independent expenditure or expenditures made or obligated to be made ninety days or less before the day of a primary, [or] election or referendum, such person shall be subject to a civil penalty, imposed by the State Elections Enforcement Commission, of not more than twenty thousand dollars or twice the amount of any such independent expenditure failed to be reported, whichever is greater.

(2) [If] Notwithstanding subsection (a) of section 9-623, if the State Elections Enforcement Commission finds that any such failure is knowing and wilful, the person responsible for the failure shall [also be fined] be subject to an additional civil penalty, imposed by the commission, of not more than fifty thousand dollars or ten times the amount of any such independent expenditure failed to be reported, whichever is greater, and the commission may refer the matter to the office of the Chief State's Attorney.

(3) If the State Elections Enforcement Commission finds that a person is subject to a civil penalty under this subsection, (A) in the case of a committee, (i) the chairman, and (ii) any officer, or (B) in the case of a person other than a committee, (i) the chief executive officer or equivalent, (ii) any officer, and (iii) any manager who had direct, extensive and substantive decision-making authority over the independent expenditures or expenditures made or obligated to be made by such person shall be jointly and severally liable for paying any portion of the amount of any such penalty imposed that remains unpaid by such person one year after the date on which the commission imposed such civil penalty or the date of the final judgment following any judicial review of the commission's action, whichever is later.

Sec. 7. Subsections (a) and (b) of section 9-603 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Statements filed by (1) party committees, (2) political committees formed to aid or promote the success or defeat of a referendum question proposing (A) a constitutional convention, (B) constitutional amendment, or (C) revision of the Constitution, (3) individual lobbyists, [and] (4) those political committees and candidate committees formed to aid or promote the success or defeat of any candidate for the office of Governor, Lieutenant Governor, Secretary of the State, State Treasurer, State Comptroller, Attorney General, judge of probate, [and members of the General Assembly] state senators and state representatives, and (5) any person making or obligating to make an independent expenditure or expenditures in excess of one thousand dollars, in the aggregate, for any such referendum question or candidate pursuant to section 9-601d, as amended by this act, shall be filed with the State Elections Enforcement Commission. A political committee formed for a slate of candidates in a primary for the office of justice of the peace shall file statements with the town clerk of the municipality in which the primary is to be held.

(b) Statements filed by (1) political committees formed solely to aid or promote the success or defeat of a referendum question to be voted upon by the electors of a single municipality, [and] (2) those political committees or candidate committees formed to aid or promote the success or defeat of any candidate for (A) public office, other than those enumerated in subsection (a) of this section, or (B) the position of town committee member, and (3) any person making or obligating to make an independent expenditure or expenditures in excess of one thousand dollars, in the aggregate, for any such referendum question or candidate pursuant to section 9-601d, as amended by this act, shall be filed only with the town clerk of the municipality in which the election or referendum is to be held. Each unsalaried town clerk shall be entitled to receive ten cents from the town for the filing of each such statement.

Sec. 8. Subsections (a) and (b) of section 9-605 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(a) [The] Except as provided in subsection (d) of this section, the chairperson of each political committee shall be a human being with direct, extensive and substantive decision-making authority over such committee's activities, shall designate a treasurer and may designate a deputy treasurer. The treasurer and any deputy treasurer so designated shall sign a statement accepting the designation. The chairperson of each political committee shall file a registration statement described in subsection (b) of this section along with the statement signed by the designated treasurer and deputy treasurer with the proper authority, [within ten days after its organization] not more than ten days after receiving contributions, or making or incurring expenditures, in excess of one thousand dollars, in the aggregate, provided that the chairperson of any political committee organized [within] less than ten days prior to any primary, election or referendum in connection with which it intends to [make] receive any contributions or make or incur any expenditures, shall immediately file a registration statement.

(b) The registration statement shall include: (1) The name and address of the committee; (2) a statement of the purpose of the committee; (3) the name and address of its treasurer, and deputy treasurer if applicable; (4) the name, address and position of its [chairman] chairperson, and other principal officers if applicable; (5) the name and address of the depository institution for its funds; (6) the name of each person, other than an individual, that is a member of the committee; (7) the name and party affiliation of each candidate [whom the committee is supporting] supported by the committee and the office or position sought by each such candidate; (8) if the committee is supporting the entire ticket of any party, a statement to that effect and the name of [the] such party; (9) if the committee is supporting or opposing any referendum question, a brief statement identifying the substance of [the] such question; (10) if the committee is established or controlled by a [business entity or organization] person or any agent of such person, the name of [the entity or organization] such person and, if the committee is established or controlled by a person other than a human being, the name of its chief executive officer or equivalent; (11) if the committee is established by an organization, a statement of whether it will receive its funds from the organization's treasury or from voluntary contributions; (12) if the committee or a person establishing such committee files reports with the Federal Elections Commission, the Internal Revenue Service or any similar out-of-state agency, a statement to that effect including the name of the agency and identifying information; (13) a statement indicating whether the committee is established for a single primary, election or referendum or for ongoing political activities; (14) if the committee is established or controlled by a lobbyist, a statement to that effect and the name of the lobbyist; (15) the name and address of the person making the initial contribution or disbursement, if any, to the committee; and (16) any information that the State Elections Enforcement Commission [requires] may require to facilitate compliance with the provisions of [this chapter or chapter 157] chapters 155 to 157, inclusive. If no such initial contribution or disbursement, as described in subdivision (15) of this subsection, has been made at the time of the filing of such statement, the treasurer of the committee shall, not later than forty-eight hours after receipt of such contribution or disbursement, file a report with the State Elections Enforcement Commission. The report shall be in the same form as statements filed under section 9-608, as amended by this act.

Sec. 9. Subdivision (1) of subsection (g) of section 9-607 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(g) (1) As used in this subsection, (A) "the lawful purposes of the committee" means: (i) For a candidate committee or exploratory committee, the promoting of the nomination or election of the candidate who established the committee, except that after a political party nominates candidates for election to the offices of Governor and Lieutenant Governor, whose names shall be so placed on the ballot in the election that an elector will cast a single vote for both candidates, as prescribed in section 9-181, a candidate committee established by either such candidate may also promote the election of the other such candidate; (ii) for a political committee, other than an independent expenditure political committee described in subparagraph (A)(iv) of this subdivision, the promoting of (I) a political party, including party building activities, (II) the success or defeat of candidates for nomination [and] or election to public office or position subject to the requirements of this chapter, or (III) the success or defeat of referendum questions, provided a political committee formed for a single referendum question shall not promote the success or defeat of any candidate, and provided further a legislative leadership committee or a legislative caucus committee may expend funds to defray costs for conducting legislative or constituency-related business which are not reimbursed or paid by the state; [and] (iii) for a party committee, the promoting of the party, party building activities, the candidates of the party and continuing operating costs of the party; and (iv) for an independent expenditure political committee, the promoting of (I) a political party, (II) the success or defeat of candidates for nomination or election to public office or position subject to the requirements of this chapter, or (III) the success or defeat of referendum questions, provided an independent expenditure political committee shall act entirely independently of a candidate, candidate committee, party committee or political committee that is not an independent expenditure political committee, or any agent of such candidate or committee, and (B) "immediate family" means a spouse or dependent child of a candidate who resides in the candidate's household.

Sec. 10. Subdivision (1) of subsection (a) of section 9-608 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) (1) Each treasurer of a committee, other than a state central committee, shall file a statement, sworn under penalty of false statement with the proper authority in accordance with the provisions of section 9-603, as amended by this act, (A) on the tenth calendar day in the months of January, April, July and October, provided, if such tenth calendar day is a Saturday, Sunday or legal holiday, the statement shall be filed on the next business day, except that in the case of a candidate or exploratory committee established for an office to be elected at a special election, statements pursuant to this subparagraph shall not be required, (B) on the seventh day preceding each regular state election, except that (i) in the case of a candidate or exploratory committee established for an office to be elected at a municipal election, the statement shall be filed on the seventh day preceding a regular municipal election in lieu of such date, except if the candidate's name is not eligible to appear on the ballot, in which case such statement shall not be required, (ii) in the case of a town committee, the statement shall be filed on the seventh day preceding each municipal election in addition to such date, (iii) in the case of a candidate committee in a state election, [that is required to file any supplemental campaign finance statements pursuant to subdivisions (1) and (2) of subsection (a) of section 9-712, such] the supplemental campaign finance statements required pursuant to subsection (a) of section 9-712, as amended by this act, shall satisfy the filing requirement under this subdivision, and (iv) in the case of a candidate committee established by a candidate whose name is not eligible to appear on the ballot, such statement shall not be required, and (C) if the committee has made or received a contribution or expenditure in connection with any other election, a primary or a referendum, on the seventh day preceding the election, primary or referendum, except that in the case of a candidate committee in a state primary, [that is required to file statements pursuant to subdivisions (1) and (2) of subsection (a) of section 9-712, such] the statements required pursuant to subsection (a) of section 9-712, as amended by this act, shall satisfy the filing requirement under this subdivision. The statement shall be complete as of eleven fifty-nine o'clock p.m. of the last day of the month preceding the month in which the statement is required to be filed, except that for the statement required to be filed on the seventh day preceding the election, primary or referendum, the statement shall be complete as of eleven fifty-nine o'clock p.m. of the second day immediately preceding the required filing day. The statement shall cover a period to begin with the first day not included in the last filed statement. In the case of a candidate committee, the statement required to be filed in January shall be in lieu of the statement formerly required to be filed within forty-five days following an election.

Sec. 11. Subsection (c) of section 9-608 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(c) (1) Each statement filed under subsection (a), (e) or (f) of this section shall include, but not be limited to: (A) An itemized accounting of each contribution, if any, including the full name and complete address of each contributor and the amount of the contribution. For an independent expenditure political committee, if any contributor to such independent expenditure political committee is a recipient of a covered transfer or transfers amounting to twenty-five thousand dollars or more, in the aggregate, per calendar year, such statement shall include the names of the persons who made the top five largest aggregate covered transfers to such recipient during the twelve-month period immediately preceding a primary, election or referendum, as applicable; (B) an itemized accounting of each expenditure, if any, including the full name and complete address of each payee, including secondary payees whenever the primary or principal payee is known to include charges which the primary payee has already paid or will pay directly to another person, vendor or entity, the amount and the purpose of the expenditure, the candidate supported or opposed by the expenditure, whether the expenditure is made independently of the candidate supported or is an in-kind contribution to the candidate, and a statement of the balance on hand or deficit, as the case may be; (C) an itemized accounting of each expense incurred but not paid, provided if the expense is incurred by use of a credit card, the accounting shall include secondary payees, and the amount owed to each such payee; (D) the name and address of any person who is the guarantor of a loan to, or the cosigner of a note with, the candidate on whose behalf the committee was formed, or the treasurer in the case of a party committee or a political committee or who has advanced a security deposit to a telephone company, as defined in section 16-1, for telecommunications service for a committee; (E) for each business entity or person purchasing advertising space in a program for a fund-raising affair or on signs at a fund-raising affair, the name and address of the business entity or the name and address of the person, and the amount and aggregate amounts of such purchases; (F) for each individual who contributes in excess of one hundred dollars but not more than one thousand dollars, in the aggregate, to the extent known, the principal occupation of such individual and the name of the individual's employer, if any; (G) for each individual who contributes in excess of one thousand dollars in the aggregate, the principal occupation of such individual and the name of the individual's employer, if any; (H) for each itemized contribution made by a lobbyist, the spouse of a lobbyist or any dependent child of a lobbyist who resides in the lobbyist's household, a statement to that effect; and (I) for each individual who contributes in excess of four hundred dollars in the aggregate to or for the benefit of any candidate's campaign for nomination at a primary or election to the office of chief executive officer or a slate or town committee financing the nomination or election or a candidate for chief executive officer of a town, city or borough, a statement indicating whether the individual or a business with which he is associated has a contract with said municipality that is valued at more than five thousand dollars. Each treasurer shall include in such statement (i) an itemized accounting of the receipts and expenditures relative to any testimonial affair held under the provisions of section 9-609 or any other fund-raising affair, which is referred to in subsection (b) of section 9-601a, and (ii) the date, location and a description of the affair, except that a treasurer shall not be required to include the name of any individual who has purchased items at a fund-raising affair or food at a town fair, county fair or similar mass gathering, if the cumulative value of items purchased by such individual does not exceed one hundred dollars, or the name of any individual who has donated food or beverages for a meeting. A treasurer shall not be required to report or retain any receipts or expenditures related to any de minimis donations described in subdivision (17) of subsection (b) of section 9-601a.

(2) Each contributor described in subparagraph (F), (G), (H) or (I) of subdivision (1) of this subsection shall, at the time the contributor makes such a contribution, provide the information that the treasurer is required to include under said subparagraph in the statement filed under subsection (a), (e) or (f) of this section. Notwithstanding any provision of subdivision (2) of section 9-7b, any contributor described in subparagraph (F) of subdivision (1) of this subsection who does not provide such information at the time the contributor makes such a contribution and any treasurer shall not be subject to the provisions of subdivision (2) of section 9-7b. If a treasurer receives a contribution from an individual which separately, or in the aggregate, is in excess of one thousand dollars and the contributor has not provided the information required by said subparagraph (G) or if a treasurer receives a contribution from an individual to or for the benefit of any candidate's campaign for nomination at a primary or election to the office of chief executive officer of a town, city or borough, which separately, or in the aggregate, is in excess of four hundred dollars and the contributor has not provided the information required by said subparagraph (I), the treasurer: (i) Not later than three business days after receiving the contribution, shall send a request for such information to the contributor by certified mail, return receipt requested; (ii) shall not deposit the contribution until the treasurer obtains such information from the contributor, notwithstanding the provisions of section 9-606; and (iii) shall return the contribution to the contributor if the contributor does not provide the required information not later than fourteen days after the treasurer's written request or the end of the reporting period in which the contribution was received, whichever is later. Any failure of a contributor to provide the information which the treasurer is required to include under said subparagraph (F) or (H), which results in noncompliance by the treasurer with the provisions of said subparagraph (F) or (H), shall be a complete defense to any action against the treasurer for failure to disclose such information.

(3) In addition to the requirements of subdivision (2) of this subsection, each contributor who makes a contribution to a candidate or exploratory committee for Governor, Lieutenant Governor, Attorney General, State Comptroller, Secretary of the State, State Treasurer, state senator or state representative, any political committee authorized to make contributions to such candidates or committees, and any party committee that separately, or in the aggregate, exceeds fifty dollars shall provide with the contribution: (A) The name of the contributor's employer, if any; (B) the contributor's status as a communicator lobbyist, as defined in section 1-91, a member of the immediate family of a communicator lobbyist, a state contractor, a prospective state contractor or a principal of a state contractor or prospective state contractor, as defined in section 9-612, as amended by this act; and (C) a certification that the contributor is not prohibited from making a contribution to such candidate or committee. The State Elections Enforcement Commission shall prepare a sample form for such certification by the contributor and shall make it available to treasurers and contributors. Such sample form shall include an explanation of the terms "communicator lobbyist", "principal of a state contractor or prospective state contractor", "immediate family", "state contractor" and "prospective state contractor". The information on such sample form shall be included in any written solicitation conducted by any such committee. If a treasurer receives such a contribution and the contributor has not provided such certification, the treasurer shall: (i) Not later than three business days after receiving the contribution, send a request for the certification to the contributor by certified mail, return receipt requested; (ii) not deposit the contribution until the treasurer obtains the certification from the contributor, notwithstanding the provisions of section 9-606; and (iii) return the contribution to the contributor if the contributor does not provide the certification not later than fourteen days after the treasurer's written request or at the end of the reporting period in which the contribution was received, whichever is later. No treasurer shall be required to obtain and keep more than one certification from each contributor, unless information certified to by the contributor, other than the amount contributed, changes. If a treasurer deposits a contribution based on a certification that is later determined to be false, the treasurer shall have a complete defense to any action, including, but not limited to, any complaint investigated by the State Elections Enforcement Commission or any other investigation initiated by [said] the commission, against such treasurer for the receipt of such contribution.

(4) In addition to the requirements of subdivision (2) of this subsection, each contributor who is the recipient of any covered transfer and who makes a contribution to an independent expenditure political committee that separately, or in the aggregate, exceeds twenty-five thousand dollars per calendar year shall provide with the contribution a statement signed under penalty of false statement, which certification shall include: (A) If the contributor is a human being, the name of the contributor's employer or employers, if any; (B) the contributor's status as a client lobbyist or communicator lobbyist, as defined in section 1-91, or a member of the immediate family of a communicator lobbyist; (C) a certification that the contributor is not prohibited from making a contribution to the independent expenditure political committee; and (D) if the contributor is not a human being, the names of the five persons who made the top five largest aggregate covered transfers to such recipient during the twelve-month period immediately preceding a primary, election or referendum, as applicable. The State Elections Enforcement Commission shall prepare a sample form for such certification by the contributor and shall make it available to treasurers and contributors. Such sample form shall include an explanation of the term "covered transfer". The information on such sample form shall be included in any written solicitation conducted by such independent expenditure political committee. If a treasurer receives a contribution and the contributor has not provided such certification, the treasurer shall: (i) Not later than three business days after receiving the contribution, send a request for the certification to the contributor by certified mail, return receipt requested; (ii) not deposit the contribution until the treasurer obtains the certification from the contributor, notwithstanding the provisions of section 9-606; and (iii) return the contribution to the contributor if the contributor does not provide the certification not later than fourteen days after the treasurer's written request or at the end of the reporting period in which the contribution was received, whichever is later. If a treasurer deposits a contribution based on a certification signed under penalty of false statement that is later determined to be false, the treasurer shall have a complete defense to any action, including, but not limited to, any complaint investigated by the State Elections Enforcement Commission or any other investigation initiated by the commission, against such treasurer for the receipt of such contribution.

[(4)] (5) Contributions from a single individual to a treasurer in the aggregate totaling fifty dollars or less need not be individually identified in the statement, but a sum representing the total amount of all such contributions made by all such individuals during the period to be covered by such statement shall be a separate entry, identified only by the words "total contributions from small contributors".

[(5)] (6) Each statement filed by the treasurer of a party committee, a legislative caucus committee or a legislative leadership committee shall include an itemized accounting of each organization expenditure made by the committee. Concomitant with the filing of any such statement containing an accounting of an organization expenditure made by the committee for the benefit of any candidate for the office of state senator, state representative, Governor, Lieutenant Governor, Attorney General, Secretary of the State, State Comptroller or State Treasurer such treasurer shall provide notice of the organization expenditure to the candidate committee of such candidate.

[(6)] (7) The commission shall post a link on the home page of the commission's Internet web site to a listing of all organizational expenditures reported by a party, legislative leadership or caucus committee under subdivision [(5)] (6) of this subsection. Such information shall include reported information on the committee making the expenditure, the committee receiving the expenditure and the date and purpose for the expenditure.

[(7)] (8) Statements filed in accordance with this section shall remain public records of the state for five years from the date such statements are filed.

Sec. 12. Subparagraph (C) of subdivision (1) of subsection (e) of section 9-608 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(C) (i) Each political committee formed solely to aid or promote the success or defeat of any referendum question, which does not receive contributions from a business entity or an organization, shall distribute its surplus to a party committee, to a political committee organized for ongoing political activities, to a national committee of a political party, to all contributors to the committee on a prorated basis of contribution, to state or municipal governments or agencies or to any organization which is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended. (ii) Each political committee formed solely to aid or promote the success or defeat of any referendum question, which receives contributions from a business entity or an organization, and each independent expenditure political committee other than an independent expenditure political committee formed for ongoing political activities, shall distribute its surplus to all contributors to the committee on a prorated basis of contribution, to state or municipal governments or agencies, or to any organization which is tax-exempt under said provisions of the Internal Revenue Code. Notwithstanding the provisions of this subsection, a committee formed for a single referendum shall not be required to expend its surplus not later than ninety days after the referendum and may continue in existence if a substantially similar referendum question on the same issue will be submitted to the electorate within six months after the first referendum. If two or more substantially similar referenda on the same issue are submitted to the electorate, each no more than six months apart, the committee shall expend such surplus within ninety days following the date of the last such referendum;

Sec. 13. Subsections (b) to (e), inclusive, of section 9-611 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(b) (1) No individual shall make a contribution or contributions to, or for the benefit of, an exploratory committee, in excess of three hundred seventy-five dollars, if the candidate establishing the exploratory committee certifies on the statement of organization for the exploratory committee pursuant to subsection (c) of section 9-604 that the candidate will not be a candidate for the office of state representative. No individual shall make a contribution or contributions to, or for the benefit of, any exploratory committee, in excess of two hundred fifty dollars, if the candidate establishing the exploratory committee does not so certify.

(2) No individual shall make a contribution or contributions to, or for the benefit of, a political committee formed by a slate of candidates in a primary for the office of justice of the peace, in excess of two hundred fifty dollars.

[(c) No individual shall make contributions to such candidates or committees which in the aggregate exceed thirty thousand dollars for any single election and primary preliminary to such election.]

[(d)] (c) No individual shall make a contribution to any candidate or committee, other than a contribution in kind, in excess of one hundred dollars except by personal check or credit card of that individual.

[(e)] (d) No individual who is less than eighteen years of age shall make a contribution or contributions, in excess of thirty dollars to, for the benefit of, or pursuant to the authorization or request of: (1) A candidate or a committee supporting or opposing any candidate's campaign for nomination at a primary to any office; (2) a candidate or a committee supporting or opposing any candidate's campaign for election to any office; (3) an exploratory committee; (4) any other political committee in any calendar year; or (5) a party committee in any calendar year. Notwithstanding any provision of subdivision (2) of section 9-7b, any individual who is less than eighteen years of age who violates any provision of this subsection shall not be subject to the provisions of subdivision (2) of section 9-7b.

Sec. 14. Subsections (a) and (b) of section 9-612 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(a) No individual shall make a contribution or contributions in any one calendar year in excess of ten thousand dollars to the state central committee of any party, or for the benefit of such committee pursuant to its authorization or request; or two thousand dollars to a town committee of any political party, or for the benefit of such committee pursuant to its authorization or request; or two thousand dollars to a legislative caucus committee or legislative leadership committee; [,] or one thousand dollars to any other political committee other than (1) a political committee formed solely to aid or promote the success or defeat of a referendum question, (2) an exploratory committee, (3) a political committee established by an organization, or for the benefit of such committee pursuant to its authorization or request, [or] (4) a political committee formed by a slate of candidates in a primary for the office of justice of the peace of the same town, or (5) an independent expenditure political committee. Unless otherwise restricted or prohibited by law, an individual may make unlimited contributions to an independent expenditure political committee.

(b) No individual shall make a contribution to a political committee established by an organization which receives its funds from the organization's treasury. With respect to a political committee established by an organization which has complied with the provisions of subsection (b) or (c) of section 9-614, as amended by this act, and has elected to receive contributions, no individual other than a member of the organization may make contributions to the committee, in which case the individual may contribute not more than seven hundred fifty dollars in any one calendar year to such committee or for the benefit of such committee pursuant to its authorization or request. Notwithstanding this provision, and unless otherwise restricted or prohibited by law, an individual may make unlimited contributions to an independent expenditure political committee established by an organization.

Sec. 15. Subsection (d) of section 9-612 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(d) Any individual may make unlimited contributions or expenditures to aid or promote the success or defeat of any referendum question, provided any individual who makes an expenditure or expenditures in excess of one thousand dollars to promote the success or defeat of any referendum question shall file statements according to the same schedule and in the same manner as is required of a treasurer of a political committee under section [9-608] 9-601d, as amended by this act.

Sec. 16. Section 9-613 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) [No] Except as provided in subsection (g) of this section, a business entity shall not make any contributions or expenditures (1) to, or for the benefit of, any candidate's campaign (A) for election to any public office or position subject to this chapter, or (B) for nomination at a primary for any such office or position, or (2) to promote the defeat of any candidate for any such office or position. No business entity shall make any other contributions or [expenditures] engage in coordinated spending, as described in section 9-601c, as amended by this act, to promote the success or defeat of any political party. [, except as provided in subsection (b) of this section. No] A business entity shall not establish more than one political committee. A political committee shall be deemed to have been established by a business entity if the initial disbursement or contribution to the committee is made under subsection (b) of this section or by an officer, director, owner, limited or general partner or holder of stock constituting five per cent or more of the total outstanding stock of any class of the business entity.

(b) A business entity may make reasonable and necessary transfers or disbursements to, or for the benefit of, a political committee established by such business entity, for the administration of, or solicitation of contributions to, such political committee. Nonmonetary contributions by a business entity which are incidental in nature and are directly attributable to the administration of such political committee shall be exempt from the reporting requirements of this chapter.

(c) The provisions of this section shall not preclude a business entity from making contributions or expenditures to promote the success or defeat of a referendum question.

(d) [A] Except as provided in subsection (g) of this section, a political committee organized by a business entity shall not make a contribution or contributions to, or for the benefit of, any candidate's campaign for nomination at a primary or any candidate's campaign for election to the office of: (1) Governor, in excess of five thousand dollars; (2) Lieutenant Governor, Secretary of the State, Treasurer, Comptroller or Attorney General, in excess of three thousand dollars; (3) state senator, probate judge or chief executive officer of a town, city or borough, in excess of one thousand five hundred dollars; (4) state representative, in excess of seven hundred fifty dollars; or (5) any other office of a municipality not included in subdivision (3) of this subsection, in excess of three hundred seventy-five dollars. The limits imposed by this subsection shall apply separately to primaries and elections and contributions by any such committee to candidates designated in this subsection shall not exceed one hundred thousand dollars in the aggregate for any single election and primary preliminary thereto. Contributions to such committees shall also be subject to the provisions of section 9-618, as amended by this act, in the case of committees formed for ongoing political activity or section 9-619, as amended by this act, in the case of committees formed for a single election or primary.

(e) [No] Except as provided in subsection (g) of this section, a political committee organized by a business entity shall not make a contribution or contributions to (1) a state central committee of a political party, in excess of seven thousand five hundred dollars in any calendar year, (2) a town committee of any political party, in excess of one thousand five hundred dollars in any calendar year, (3) an exploratory committee in excess of three hundred seventy-five dollars, or (4) any other kind of political committee, in excess of two thousand dollars in any calendar year, except that, unless otherwise restricted or prohibited by law, a political committee established by a business entity may make unlimited contributions to an independent expenditure political committee.

(f) As used in this subsection, "investment services" means investment legal services, investment banking services, investment advisory services, underwriting services, financial advisory services or brokerage firm services. No political committee established by a firm which provides investment services and to which the State Treasurer pays compensation, expenses or fees or issues a contract shall make a contribution to, or solicit contributions on behalf of, an exploratory committee or candidate committee established by a candidate for nomination or election to the office of State Treasurer during the term of office of the State Treasurer who does business with such firm.

(g) (1) Notwithstanding the provisions of this section, [a corporation, cooperative association, limited partnership, professional association, limited liability company or limited liability partnership, whether formed in this state or any other, acting alone,] a business entity may make independent expenditures and contributions to an independent expenditure political committee.

(2) An independent expenditure political committee, as defined in section 2 of this act, organized by a business entity shall not make any contribution unless such contribution is to another independent expenditure political committee.

Sec. 17. Section 9-614 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) An organization may make contributions, [or] engage in coordinated spending, as described in section 9-601c, as amended by this act, and make expenditures, other than [those made to promote] for the purpose of promoting the success or defeat of a referendum question, only by first forming its own political committee. [The] Unless such political committee is an independent expenditure political committee, the political committee shall then be authorized to (1) receive funds (A) exclusively from the organization's treasury or from voluntary contributions made by its members, but not both, (B) from another political committee, or [,] (C) from a candidate committee distributing a surplus, and [(1) to] (2) make (A) contributions or expenditures to, or for the benefit of, a candidate's campaign or a political party, or [(2) to make] (B) contributions to another political committee. [No] An organization shall not form more than one political committee. A political committee shall be deemed to have been established by an organization if the initial contribution to the committee is made by the organization's treasury or an officer or director of the organization.

(b) A political committee established by an organization may elect to alter the manner in which it is funded if it complies with the requirements of this subsection. The committee chairperson shall notify the repository with which the committee's most recent statement of organization is filed, in writing, of the committee's intent to alter its manner of funding. [Within] Not later than fifteen days after the date of receipt of such notification, the treasurer of such political committee shall return any funds remaining in the account of the committee to the organization's treasury after payment of each outstanding liability. [Within] Not later than seven days after the distribution and payments have been made, the treasurer shall file a statement with the same repository itemizing each such distribution and payment. Upon such filing, the treasurer may receive voluntary contributions from any member of the organization which established such committee subject to the limitations imposed in subsection (b) of section 9-612, as amended by this act.

(c) The chairperson of each political committee established by an organization on or after July 1, 1985, shall designate the manner in which the committee shall be funded in the committee's statement of organization.

(d) Notwithstanding the provisions of this section, an organization [, acting alone,] may make independent expenditures and contributions to an independent expenditure political committee.

Sec. 18. Section 9-615 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) [No] A political committee established by an organization shall not make a contribution or contributions to, or for the benefit of, any candidate's campaign for nomination at a primary or for election to the office of: (1) Governor, in excess of five thousand dollars; (2) Lieutenant Governor, Secretary of the State, Treasurer, Comptroller or Attorney General, in excess of three thousand dollars; (3) chief executive officer of a town, city or borough, in excess of one thousand five hundred dollars; (4) state senator or probate judge, in excess of one thousand five hundred dollars; (5) state representative, in excess of seven hundred fifty dollars; or (6) any other office of a municipality not previously included in this subsection, in excess of three hundred seventy-five dollars.

(b) [No] Any such committee shall not make a contribution or contributions to, or for the benefit of, an exploratory committee, in excess of three hundred seventy-five dollars. Any such committee may make unlimited contributions to a political committee formed solely to aid or promote the success or defeat of a referendum question.

(c) The limits imposed by subsection (a) of this section shall apply separately to primaries and elections and no such committee shall make contributions to the candidates designated in this section which in the aggregate exceed fifty thousand dollars for any single election and primary preliminary thereto.

(d) [No] Except as provided in subsection (f) of this section, a political committee established by an organization shall not make contributions in any one calendar year to, or for the benefit of, (1) the state central committee of a political party, in excess of seven thousand five hundred dollars; (2) a town committee, in excess of one thousand five hundred dollars; or (3) any political committee, other than an exploratory committee or a committee formed solely to aid or promote the success or defeat of a referendum question, in excess of two thousand dollars, except that, unless otherwise restricted or prohibited by law, a political committee established by an organization may make unlimited contributions to an independent expenditure political committee.

(e) Contributions to a political committee established by an organization for the purpose of making contributions and engaging in coordinated spending shall be subject to the provisions of section 9-618, as amended by this act, in the case of a committee formed for ongoing political activity or section 9-619, as amended by this act, in the case of a committee formed for a single election or primary.

(f) An independent expenditure political committee, as defined in section 2 of this act, established by an organization shall not make any contribution unless such contribution is to another independent expenditure political committee.

Sec. 19. Subsection (a) of section 9-618 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) (1) A political committee organized for ongoing political activities may make unlimited contributions to, or for the benefit of, any national committee of a political party [;] or a committee of a candidate for federal or out-of-state office. Except as provided in subdivision (3) of subsection (d) of this section, no such political committee shall make a contribution or contributions in excess of two thousand dollars to another political committee in any calendar year. No political committee organized for ongoing political activities shall make a contribution in excess of three hundred seventy-five dollars to an exploratory committee. If such an ongoing committee is established by an organization or a business entity, its contributions shall be subject to the limits imposed by sections 9-613 to 9-615, inclusive, as amended by this act. A political committee organized for ongoing political activities may make [contributions] donations to a charitable organization which is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, as from time to time amended, or make memorial [contributions] donations.

(2) Unless otherwise restricted or prohibited by law, a political committee organized for ongoing political activities may make unlimited contributions to an independent expenditure political committee, as defined in section 2 of this act. An independent expenditure political committee organized for ongoing political activities shall not make any contribution unless such contribution is to another independent expenditure political committee. Unless otherwise restricted or prohibited by law, an independent expenditure political committee organized for ongoing political activities may accept unlimited contributions from an entity.

Sec. 20. Subsection (a) of section 9-619 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) (1) No political committee established for a single primary or election shall make contributions to a national committee, or a committee of a candidate for federal or out-of-state office. If such a political committee is established by an organization or a business entity, its contributions shall also be subject to the limitations imposed by sections 9-613 to 9-615, inclusive, as amended by this act. Except as provided in subdivision (2) of subsection (d) of this section, no political committee formed for a single election or primary shall, with respect to such election or primary, make a contribution or contributions in excess of two thousand dollars to another political committee, provided no such political committee shall make a contribution in excess of three hundred seventy-five dollars to an exploratory committee.

(2) Unless otherwise restricted or prohibited by law, a political committee established for a single primary or election may make unlimited contributions to an independent expenditure political committee, as defined in section 2 of this act. An independent expenditure political committee shall not make any contribution unless such contribution is to another independent expenditure political committee. Unless otherwise restricted or prohibited by law, an independent expenditure political committee established for a single primary or election may accept unlimited contributions from an entity.

Sec. 21. Section 9-620 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) A political committee formed solely to aid or promote the success or defeat of a referendum question shall not make contributions to, or for the benefit of, a party committee, a political committee, a national committee, a committee of a candidate for federal or out-of-state office or a candidate committee, except in the distribution of a surplus, as provided in subsection (e) of section 9-608, as amended by this act.

(b) A political committee formed solely to aid or promote the success or defeat of a referendum question shall not receive contributions from a national committee or from a committee of a candidate for federal or out-of-state office.

(c) [No] A person, other than an individual or a committee, shall not make a contribution to a political committee formed solely to aid or promote the success or defeat of a referendum question, or to any other person [,] to aid or promote the success or defeat of a referendum question, in excess of ten cents for each individual residing in the state or political subdivision thereof in which such referendum question is to be voted upon, in accordance with the last federal decennial census.

(d) Notwithstanding this section, an independent expenditure political committee, as defined in section 2 of this act, formed solely to aid or promote the success or defeat of a referendum question shall not make any contribution unless such contribution is made to another independent expenditure political committee. Unless otherwise restricted or prohibited by law, an independent expenditure political committee formed solely to aid or promote the success or defeat of a referendum question may accept unlimited contributions from an entity.

Sec. 22. Subsection (d) of section 9-621 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(d) The provisions of [subsections (a), (b) and (c) of] this section do not apply to (1) any editorial, news story [,] or commentary published in any newspaper, magazine or journal on its own behalf and upon its own responsibility and for which it does not charge or receive any compensation whatsoever, (2) any banner, (3) political paraphernalia including pins, buttons, badges, emblems, hats, bumper stickers or other similar materials, or (4) signs with a surface area of not more than thirty-two square feet.

Sec. 23. Subsections (i) and (j) of section 9-621 of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(i) In any [print, television or social media promotion of a slate of candidates] organization expenditure for a party candidate listing, as defined in subparagraph (A) of subdivision (25) of section 9-601, by a party committee, [the party] legislative caucus committee or legislative leadership committee, any such committee shall use applicable disclaimers pursuant to the provisions of this section for such promotion, and no individual candidate disclaimers shall be required.

(j) [(1) Except as provided in subdivisions (2) and (3) of this subsection, if] If any person whose name is included on a disclaimer of a communication pursuant to the provisions of this section, as a person who made a covered transfer to the maker of the communication, is also a recipient of a covered transfer, the maker of the communication, as part of any report filed pursuant to section 9-601d associated with the making of such communication, shall include the names of the five persons who made the top five largest aggregate covered transfers to such recipient during the twelve-month period immediately prior to the primary or election, as applicable.

[(2) The name of any person who made a covered transfer to a tax-exempt organization recognized under Section 501(c)(4) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, that has not had its tax exempt status revoked, shall not be disclosed pursuant to the provisions of subdivision (1) of this subsection.

(3) The name of any person who made a covered transfer to a person whose name is included on a disclaimer pursuant to the provisions of this section shall not be disclosed pursuant to the provisions of subdivision (1) of this subsection if the recipient of such covered transfer accepts covered transfers from at least one hundred different sources, provided no such source accounts for ten per cent or more of the total amount of covered transfers accepted by the recipient during the twelve-month period immediately prior to the primary or election, as applicable.]

Sec. 24. Subdivision (4) of subsection (a) of section 9-712 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(4) Notwithstanding the provisions of this subsection, the statements required to be filed pursuant to subdivisions (1) and (2) of this subsection shall not be required to be filed by (A) a candidate committee of a candidate that is exempt from filing campaign finance statements pursuant to subsection (b) of section 9-608 unless or until such a candidate committee receives or expends an amount in excess of one thousand dollars for purposes of the primary or election for which such committee was formed, (B) a candidate committee of a candidate who is no longer eligible for a position on the ballot, or (C) a candidate committee of a participating or nonparticipating candidate that is unopposed, except that such candidate committee shall file a supplemental statement on the last Thursday before the applicable primary or general election. Such statement shall be complete as of eleven fifty-nine o'clock p.m. of the second day immediately preceding the required filing day. The statement shall cover a period beginning with the first day not included in the last filed statement.


This act shall take effect as follows and shall amend the following sections:
Section 1	from passage	9-601(3)
Sec. 2	from passage	New section
Sec. 3	from passage	9-601a(a)
Sec. 4	from passage	9-601b(a) and (b)
Sec. 5	from passage	9-601c
Sec. 6	from passage	9-601d
Sec. 7	from passage	9-603(a) and (b)
Sec. 8	from passage	9-605(a) and (b)
Sec. 9	from passage	9-607(g)(1)
Sec. 10	from passage	9-608(a)(1)
Sec. 11	from passage	9-608(c)
Sec. 12	from passage	9-608(e)(1)(C)
Sec. 13	from passage	9-611(b) to (e)
Sec. 14	from passage	9-612(a) and (b)
Sec. 15	from passage	9-612(d)
Sec. 16	from passage	9-613
Sec. 17	from passage	9-614
Sec. 18	from passage	9-615
Sec. 19	from passage	9-618(a)
Sec. 20	from passage	9-619(a)
Sec. 21	from passage	9-620
Sec. 22	from passage	9-621(d)
Sec. 23	from passage	9-621(i) and (j)
Sec. 24	from passage	9-712(a)(4)

Statement of Purpose:

To (1) create bright lines between coordinated and independent spending, (2) implement federal court rulings regarding the creation of independent expenditure political committees, (3) increase disclosure of independent expenditures, and (4) reveal persons behind political committees and contributors to such committees.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]