Bill Text: OR HB3523 | 2013 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to election campaign finance; and declaring an emergency.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-08-14 - Chapter 756, (2013 Laws): Effective date August 14, 2013. [HB3523 Detail]

Download: Oregon-2013-HB3523-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3942

                         House Bill 3523

Sponsored by Representatives MATTHEWS, KENY-GUYER, PARRISH,
  JENSON

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires statements of independent expenditures to be filed
with Secretary of State using electronic filing system. Applies
filing deadlines to additional statements of independent
expenditures.
  Requires campaign finance statement to be filed within two
business days if contribution equaling or exceeding $1,000 is
received during 14-day period immediately preceding election.
Adjusts other filing deadlines for campaign finance statements.
  Requires candidate, political committee or petition committee
that makes expenditure that must be reported by candidate or
committee as in-kind contribution to provide written notice of
expenditure to candidate or committee for whose benefit
expenditure was made. Requires candidate or committee to give
notice not later than 48 hours after time that original
expenditure is reported in electronic filing system maintained by
secretary.
  Becomes operative September 19, 2013.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to election campaign finance; creating new provisions;
  amending ORS 260.044, 260.057, 260.083, 260.118 and 260.232;
  and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 260.044 is amended to read:
  260.044.   { - (1) A person shall file a statement of
independent expenditures if the person makes independent
expenditures in a total amount of more than $750 in a calendar
year. The statement shall be filed with the Secretary of
State. - }
    { - (2) A statement described in subsection (1) of this
section shall be filed not later than seven calendar days after
the total amount of independent expenditures exceeds $750 in a
calendar year. The accounting period for the statement required
by subsection (1) of this section begins on the date that an
independent expenditure is made. The statement shall specify the
candidate or measure supported or opposed by the independent
expenditure. The secretary by rule shall prescribe the form of
the statement. - }
   { +  (1) If a person makes independent expenditures in a total
amount of more than $750 in a calendar year, the person shall use
the electronic filing system adopted under ORS 260.057 to file
with the Secretary of State a statement of independent
expenditures not later than seven calendar days after the total
amount of independent expenditures exceeds $750 in a calendar
year.
  (2) A person who files a statement of independent expenditures
under subsection (1) of this section shall use the electronic
filing system adopted under ORS 260.057 to file with the
secretary additional statements of independent expenditures made
by the person, as described in ORS 260.083.
  (3) Except as otherwise provided in this section, a person
shall file a statement described in subsection (2) of this
section not later than 30 calendar days after an independent
expenditure is made.
  (4)(a) A person shall file a statement described in subsection
(2) of this section not later than 14 calendar days after an
independent expenditure is made. This paragraph applies to
independent expenditures made:
  (A) During the period beginning on the 42nd calendar day before
the date of any primary election and ending on the date of the
primary election; and
  (B) During the period beginning on the 42nd calendar day before
the date of any general election and ending on the date of the
general election.
  (b) If the person makes an independent expenditure prior to the
42nd calendar day before the date of the primary or general
election and the person has not filed a statement under
subsection (3) of this section by the 43rd calendar day before
the date of the primary or general election, the person shall
file a statement described in subsection (2) of this section not
later than the 28th calendar day before the date of the primary
or general election.
  (5) For any special election, the secretary by rule may
establish a period during which a person must file a statement
described in subsection (2) of this section. The period may not
extend beyond 14 calendar days after an independent expenditure
is made. + }
    { - (3) - }  { +  (6) + } Notwithstanding ORS 260.005 (18), a
person who solicits and receives a contribution or contributions
is a political committee and shall file a statement of
organization under ORS 260.042 and the statements required by ORS
260.057 or 260.076.
    { - (4) - }  { +  (7) + } For purposes of this section:
  (a) An independent expenditure does not include a contribution
to a candidate or political committee that is required to report
the contribution on a statement filed under ORS 260.057, 260.076
or 260.102 or a certificate filed under ORS 260.112;
  (b) An independent expenditure does not include a contribution
to a candidate who is not required to file a statement of
organization under ORS 260.043; and
  (c) A person is not a political committee under subsection
  { - (3) - }  { +  (6) + } of this section if all contributions
received by the person are:
  (A) Designated to an identified candidate or political
committee;
  (B) Delivered by the person to the designated candidate or
political committee not later than seven business days after the
contribution is received; and
  (C) Required to be reported as contributions by a candidate or
political committee on a statement filed under ORS 260.057,
260.076 or 260.102 or a certificate filed under ORS 260.112.
  SECTION 2. ORS 260.057 is amended to read:
  260.057. (1) The Secretary of State by rule shall adopt an
electronic filing system to be used by:
  (a) All candidates and political committees to file with the
secretary statements of contributions received and expenditures
made by the candidates and political committees, as described in
ORS 260.083.
  (b) Treasurers of   { - a petition committee - }  { +  petition
committees + } organized under ORS 260.118 to file with the
secretary statements of contributions received and expenditures
made by the treasurers and chief petitioners as described in ORS
260.083.
   { +  (c) Persons who make independent expenditures as provided
in ORS 260.044 to file with the secretary statements of
independent expenditures made by the persons as described in ORS
260.083.
  (2) Except as otherwise provided in this section, a candidate
or political committee shall file a statement of contributions
received and expenditures made described in subsection (1)(a) of
this section not later than 30 calendar days after a contribution
is received or an expenditure is made. + }
    { - (2)(a) - }  { +  (3)(a) Except as provided in subsection
(4) of this section, + } a candidate for nomination or election
at any primary or general election or a political committee
supporting or opposing a candidate or measure at any primary or
general election shall file a statement described in subsection
(1) { + (a) + } of this section not later than   { - seven - }
 { +  14 + } calendar days after a contribution is received or an
expenditure is made. This paragraph applies to contributions
received and expenditures made { + :
  (A) + } During the period beginning on the 42nd calendar day
before the date of any primary election and ending on the date of
the primary election { + ; + } and
   { +  (B) During + } the period beginning on the 42nd calendar
day before the date of any general election and ending on the
date of the general election.
    { - (b) For any special election, the secretary by rule may
establish a period during which a candidate for nomination or
election at the special election or a political committee
supporting or opposing a candidate or measure at the special
election must file a statement described in subsection (1) of
this section not later than seven calendar days after a
contribution is received or an expenditure is made. - }
    { - (3) Except as provided in subsection (4) of this section,
during a period not described in subsection (2) of this section,
a candidate or political committee shall file a statement
described in subsection (1) of this section not later than 30
calendar days after a contribution is received or an expenditure
is made. - }
    { - (4)(a) If a candidate for nomination or election at any
primary election or a political committee supporting or opposing
a candidate or measure at any primary election receives a
contribution or makes an expenditure prior to the 42nd calendar
day before the date of the primary election and the candidate or
political committee has not filed a statement of the contribution
or expenditure under subsection (3) of this section by the 43rd
calendar day before the date of the primary election, the
candidate or political committee shall file a statement described
in subsection (1) of this section not later than the 35th
calendar day before the date of the primary election. - }
    { - (b) If a candidate for nomination or election at any
general election or a political committee supporting or opposing
a candidate or measure at any general election receives a
contribution or makes an expenditure prior to the 42nd calendar
day before the date of the general election and the candidate or
political committee has not filed a statement of the contribution
or expenditure under subsection (3) of this section by the 43rd
calendar day before the date of the general election, the
candidate or political committee shall file a statement described
in subsection (1) of this section not later than the 35th
calendar day before the date of the general election. - }
   { +  (b) If the candidate or political committee receives a
contribution or makes an expenditure prior to the 42nd calendar
day before the date of the primary or general election and the
candidate or political committee has not filed a statement of the
contribution or expenditure under subsection (2) of this section
by the 43rd calendar day before the date of the primary or
general election, the candidate or political committee shall file
a statement described in subsection (1)(a) of this section not
later than the 28th calendar day before the date of the primary
or general election.
  (4)(a) A candidate for nomination or election at any primary or
general election or a political committee supporting or opposing
a candidate or measure at any primary or general election shall
file a statement of contributions received not later than two
calendar days after a contribution is received if the
contribution equals or exceeds $1,000. This paragraph applies to
contributions received:
  (A) During the period beginning on the 14th calendar day before
the date of any primary election and ending on the date of the
primary election; and
  (B) During the period beginning on the 14th calendar day before
the date of any general election and ending on the date of the
general election.
  (b) If the candidate or political committee receives a
contribution that equals or exceeds $1,000 prior to the 14th
calendar day before the date of the primary or general election
and the candidate or political committee has not filed a
statement of the contribution under subsection (3) of this
section by the 15th calendar day before the date of the primary
or general election, the candidate or political committee shall
file a statement of the contribution received not later than the
12th calendar day before the date of the primary or general
election.
  (5) For any special election, the secretary by rule may
establish a period during which a candidate for nomination or
election at the special election or a political committee
supporting or opposing a candidate or measure at the special
election must file a statement described in subsection (1)(a) of
this section. The period may not extend beyond:
  (a) Fourteen calendar days after a contribution is received or
an expenditure is made; and
  (b) Two business days after a contribution is received, if the
contribution equals or exceeds $1,000. + }
    { - (5) - }  { +  (6) + } The electronic filing system shall
be provided free of charge by the secretary and { +  shall + }:
  (a) Accept electronic files that conform to the format
prescribed by the secretary by rule; or
  (b) Be compatible with any other electronic filing application
provided or approved by the secretary.
    { - (6)(a) - }  { +  (7)(a) + } Except as provided in
paragraph (b) of this subsection, the secretary shall make all
data filed electronically under  { + subsection (1)(a) of + }
this section   { - and ORS 260.118 - }  and all information filed
with the secretary under ORS 260.045, 260.049, 260.085 or 260.102
available on the Internet to the public free of charge according
to a schedule adopted by the secretary by rule.  The secretary
shall make the data available in a searchable database that is
easily accessible by the public. When the secretary makes data or
information available on the Internet under this subsection, the
secretary shall display any contribution received from a person
or political committee with an out-of-state address in a
different colored font than a contribution received from a person
or political committee with an in-state address.

  (b) The secretary may not make data that are filed
electronically under  { + subsection (1)(a) of + } this section
 { - or ORS 260.118 - }  available to the public under this
section, unless the data are required to be listed under ORS
260.083. The secretary may not disclose under ORS 192.410 to
192.505 any data that are filed electronically under
 { + subsection (1)(a) of + } this section   { - or ORS
260.118 - } , unless the data are required to be listed under ORS
260.083.
    { - (7)(a) - }  { +  (8)(a) + } Except as provided in
paragraph (b) of this subsection, each statement required by this
section shall be signed and certified as true by the candidate or
treasurer required to file it. Signatures shall be supplied in
the manner specified by the secretary by rule.
  (b) A candidate or treasurer may designate an individual to
sign and certify as true a statement required by this section.
The designation must be filed in writing with the secretary and
must be renewed for each two-year period beginning January 1 of
an even-numbered year.
    { - (8) - }  { +  (9) + } This section does not apply to:
  (a) Candidates for federal office;
  (b) Candidates who are not required to file a statement of
organization under ORS 260.043; or
  (c) Candidates, political committees or petition committees
that file certificates under ORS 260.112.
  SECTION 3. ORS 260.083 is amended to read:
  260.083. (1) { + (a) For a contribution, except as provided in
ORS 260.085, + } a statement filed under ORS  { + 260.044, + }
260.057, 260.076 or 260.118 shall list:
    { - (a) Except as provided in ORS 260.085, for a
contribution: - }
  (A) The name, occupation and address of each person, and the
name and address of each political committee or petition
committee, that contributed an aggregate amount of more than $100
in a calendar year on behalf of a candidate or to a political
committee or petition committee and the total amount contributed
by that person or committee; and
  (B) The total amount of other contributions as a single item,
but shall specify how those contributions were obtained.
  (b) For an expenditure { + , including an independent
expenditure, a statement filed under ORS 260.044, 260.057,
260.076 or 260.118 shall list + }:
  (A) The amount and purpose of each expenditure made in an
aggregate amount of more than $100 to a payee, the name or, if
applicable, the business name of the payee of the expenditure,
and the city, or county if the payee is not located in a city,
and state in which the payee is located; and
  (B) The total amount of other expenditures as a single item.
  (c)  { + For + } each loan, whether repaid or not, made by or
to   { - the - }  { +  a + } candidate, political committee or
petition committee  { - . The - }  { + , a + } statement
 { + filed under ORS 260.044, 260.057, 260.076 or 260.118 + }
shall list:
  (A) The name and address of each person shown as a cosigner or
guarantor on a loan and the amount of the obligation undertaken
by each cosigner or guarantor;
  (B) The name of the lender holding the loan; and
  (C) The terms of the loan, including the interest rate and
repayment schedule.
  (2)(a) A contribution shall be reported as an account
receivable only if the contribution is not received within the
time specified in ORS 260.057, 260.076 or 260.118.
  (b) An expenditure shall be reported as an account payable only
if the expenditure is not paid within the time specified in ORS
260.057, 260.076 or 260.118.

  (3) Anything of value paid for or contributed by any person
shall be listed as both an in-kind contribution and an
expenditure by the candidate or committee for whose benefit the
payment or contribution was made.
  (4) If a candidate, political committee or petition committee
under ORS 260.057 or 260.118 makes an expenditure that must be
reported as an in-kind contribution and an expenditure as
provided in subsection (3) of this section, the candidate,
political committee or petition committee making the original
expenditure shall, in any statement filed under ORS 260.057 or
260.118, identify the expenditure as an in-kind contribution and
identify the candidate, political committee or petition committee
for whose benefit the expenditure was made.
  (5) If a political committee makes an expenditure that
qualifies as an independent expenditure under ORS 260.005 (10),
the listing of the expenditure under this section shall identify
any candidates or measures that are the subject of the
independent expenditure and state whether the independent
expenditure was used to advocate the election, passage or defeat
of the candidates or measures.
  (6) As used in this section:
  (a) 'Address' has the meaning given that term in rules adopted
by the Secretary of State.
  (b) 'Contribution' and 'expenditure' include a contribution or
expenditure to or on behalf of an initiative, referendum or
recall petition.
  SECTION 4. ORS 260.118 is amended to read:
  260.118. (1) The chief petitioners of an initiative, referendum
or recall petition shall appoint a treasurer. The treasurer shall
be an elector of this state. Contributions shall be received and
expenditures made by or through the treasurer.
  (2) The treasurer shall file a statement of organization of a
petition committee with the appropriate filing officer. The
treasurer shall file the statement not later than the third
business day after a chief petitioner or the treasurer receives a
contribution or makes an expenditure relating to the initiative,
referendum or recall petition. The statement shall include:
  (a) The name and address of the chief petitioners.
  (b) The name and address of the treasurer appointed under
subsection (1) of this section.
  (c) A designation of the initiative, referendum or recall
petition. The designation of the recall petition shall include
the name of the officer whose recall is demanded.
  (d) The name of the financial institution in which the petition
account required under ORS 260.054 is established, the name and
number of the account, the name of the account holder and the
names of all individuals who have signature authority for the
account. The Secretary of State may not disclose information
received by the secretary under this paragraph except as
necessary for purposes of enforcing the provisions of ORS
chapters 246 to 260.
  (3) If there is a change in the information submitted in a
statement of organization under subsection (2) of this section,
the treasurer shall file an amended statement of organization not
later than the 10th day after the change in information.
  (4) The treasurer of an initiative, referendum or recall
petition committee shall use the electronic filing system adopted
under ORS 260.057 to file with the Secretary of State statements
of contributions received and expenditures made by the petition
committee, as described in ORS 260.083.
  (5) The treasurer of an initiative petition committee shall
file a statement described in subsection (4) of this section not
later than   { - seven - }  { +  14 + } calendar days after a
contribution is received or an expenditure is made. This
subsection applies to contributions received and expenditures
made:
  (a) During the period beginning on the 42nd calendar day before
the date that is four months before a general election and ending
on the date that is four months before a general election; and
  (b) During the period beginning on the 42nd calendar day before
the date of any primary election and ending on the date of the
primary election and the period beginning on the 42nd calendar
day before the date of any general election and ending on the
date of the general election.
  (6) The treasurer of a referendum petition committee or a
recall petition committee shall file a statement described in
subsection (4) of this section not later than   { - seven - }
 { + 14 + } calendar days after a contribution is received or an
expenditure is made.  This subsection applies:
  (a) For a referendum petition committee, to contributions
received and expenditures made during the period beginning on the
date the treasurer is appointed under subsection (1) of this
section and ending on the deadline for submitting signatures for
verification; and
  (b) For a recall petition committee, to contributions received
and expenditures made during the period beginning on the day
after the date on which the statement of contributions received
and expenditures made that is required under ORS 249.865 is filed
and ending on the deadline for submitting signatures for
verification.
  (7) Except as provided in subsection (8) of this section,
during a period not described in subsection (5) or (6) of this
section, a treasurer of an initiative, referendum or recall
petition committee shall file a statement described in subsection
(4) of this section not later than 30 calendar days after a
contribution is received or an expenditure is made.
  (8) If a treasurer of an initiative petition committee receives
a contribution or makes an expenditure prior to the 42nd calendar
day before the date that is four months before a general
election, or the 42nd day before the date of the primary election
or general election, and the treasurer has not filed a statement
of the contribution or expenditure under subsection (4) of this
section by the 43rd calendar day before the date that is four
months before a general election, or the 43rd day before the date
of the primary election or general election, the treasurer shall
file a statement described in subsection (4) of this section not
later than the   { - 35th - }  { +  28th + } calendar day before
the date that is four months before a general election, or the
 { - 35th - }  { +  28th + } day before the date of the primary
election or general election.
  (9) For an initiative petition committee, the accounting period
for the first statement filed under this section begins on the
date the treasurer is appointed under subsection (1) of this
section.
  (10) Each statement required under this section shall be signed
and certified as true by the treasurer. Signatures shall be
supplied in the manner specified by the secretary by rule.
  (11) Subsections (4) to (10) of this section do not apply to
petition committees that file certificates under ORS 260.112.
  (12) As used in this section, 'contribution' and ' expenditure'
include a contribution or expenditure to or on behalf of an
initiative, referendum or recall petition.
  SECTION 5. ORS 260.232 is amended to read:
  260.232. (1) The Secretary of State may impose a civil penalty
as provided in this section, in addition to any other penalty
that may be imposed, for:
  (a) Failure to file a statement or certificate required to be
filed under ORS 260.044, 260.057, 260.076, 260.078, 260.083,
260.102, 260.112 or 260.118.
  (b) Failure to include in a statement filed under ORS  { +
260.044, + } 260.057, 260.076, 260.078, 260.083, 260.102, 260.112

or 260.118 the information required under ORS  { + 260.044, + }
260.057, 260.076, 260.083, 260.102 or 260.118.
  (2)(a) If a person required to file has not filed a statement
or certificate complying with applicable provisions of ORS
260.044, 260.057, 260.076, 260.078, 260.083, 260.085, 260.102,
260.112 or 260.118 within the time specified in ORS 260.044,
260.057, 260.076, 260.078 or 260.118, the Secretary of State by
first class mail shall notify the person that a penalty may be
imposed and that the person has 20 days from the service date on
the notice to request a hearing before the Secretary of State.
  (b) If the person required to file is a candidate or the
principal campaign committee of a candidate, the Secretary of
State shall send the notice described in paragraph (a) of this
subsection by first class mail to the candidate and to the
candidate's treasurer or the treasurer of the candidate's
principal campaign committee. The notice sent to the candidate
shall be used for purposes of determining the deadline for
requesting a hearing under subsection (3) of this section. The
Secretary of State is not required to send two notices if the
candidate serves as the treasurer of the candidate's principal
campaign committee.
  (3) A hearing on whether to impose a civil penalty and to
consider circumstances in mitigation shall be held by the
Secretary of State:
  (a) Upon request of the person against whom the penalty may be
assessed, if the request is made not later than the 20th day
after the person received the notice sent under subsection (2) of
this section;
  (b) Upon request of the filing officer with whom a statement or
certificate was required to be filed but was not filed; or
  (c) Upon the Secretary of State's own motion.
  (4) A hearing under subsection (3) of this section shall be
held not later than 45 days after the deadline for the person
against whom the penalty may be assessed to request a hearing.
However, if requested by the person against whom the penalty may
be assessed, a hearing under subsection (3) of this section shall
be held not later than 60 days after the deadline for the person
against whom the penalty may be assessed to request a hearing.
  (5) The Secretary of State shall issue an order not later than
90 days after a hearing or after the deadline for requesting a
hearing if no hearing is held.
  (6) The person against whom a penalty may be assessed need not
appear in person at a hearing held under this section, but
instead may submit written testimony and other evidence, subject
to the penalty for false swearing, to the Secretary of State for
entry in the hearing record. The testimony and other evidence
must be received by the secretary not later than three business
days before the day of the hearing and may be submitted
electronically.
  (7) A civil penalty imposed under this section may not be more
than the following:
  (a) For failure to file a statement or certificate required to
be filed under ORS 260.044, 260.057, 260.076, 260.078, 260.083,
260.102, 260.112 or 260.118, 10 percent of the total amount of
the contribution or expenditure required to be included in the
statement or certificate; or
  (b) For each failure to include in a statement filed under ORS
 { + 260.044, + } 260.057, 260.076, 260.078, 260.083, 260.102,
260.112 or 260.118 the information required under ORS
 { + 260.044, + } 260.057, 260.076, 260.083, 260.102 or 260.118,
10 percent of the total amount of the contribution or expenditure
required to be included in the statement.
  (8) The Secretary of State, upon a showing of mitigating
circumstances, may reduce the amount of the penalty described in
subsection (7) of this section.

  (9) Except as otherwise provided by this section, civil
penalties under this section shall be imposed as provided in ORS
183.745.
  SECTION 6.  { + Section 7 of this 2013 Act is added to and made
a part of ORS chapter 260. + }
  SECTION 7.  { + (1) If a candidate, political committee or
petition committee under ORS 260.057 or 260.118 makes an
expenditure that must be reported as both an in-kind contribution
and an expenditure by the candidate, political committee or
petition committee for whose benefit the expenditure was made as
provided in ORS 260.083 (3), the candidate, political committee
or petition committee making the original expenditure shall:
  (a) Notify the candidate or committee for whose benefit the
expenditure was made in writing that the expenditure was made;
and
  (b) Deliver the notice not later than 48 hours after the time
that the candidate, political committee or petition committee
making the original expenditure includes the expenditure in a
statement under ORS 260.057.
  (2) The Secretary of State shall adopt rules requiring
expenditures that must be reported as both an in-kind
contribution and an expenditure by the candidate, political
committee or petition committee for whose benefit the expenditure
was made to be highlighted in an identifiable color in the
electronic filing system required under ORS 260.057. + }
  SECTION 8.  { + Section 7 of this 2013 Act and the amendments
to ORS 260.044, 260.057, 260.083, 260.118 and 260.232 by sections
1 to 5 of this 2013 Act become operative on September 19,
2013. + }
  SECTION 9.  { + (1) Section 7 of this 2013 Act and the
amendments to ORS 260.044, 260.057, 260.083, 260.118 and 260.232
by sections 1 to 5 of this 2013 Act apply to contributions
received, expenditures made and statements of independent
expenditures required to be filed on or after the effective date
of this 2013 Act.
  (2) The Secretary of State may take any action before the
operative date specified in section 8 of this 2013 Act that is
necessary to enable the secretary to exercise, on and after the
operative date specified in section 8 of this 2013 Act, all of
the duties, functions and powers conferred upon the secretary by
section 7 of this 2013 Act and the amendments to ORS 260.044,
260.057, 260.083, 260.118 and 260.232 by sections 1 to 5 of this
2013 Act. + }
  SECTION 10.  { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
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