SB445 Alabama 2013 Session

This bill would amend the Fair Campaign Practices Act. The bill would: Lower contribution threshold amounts; allow designated representatives to file reports; clarify that certain legislative caucuses are not covered by the act; clarify persons subject to violations of the act; change the legislative session prohibition on fundraising to apply to legislative and statewide candidates; clarify allowable spending amounts for dinners and functions; provide for refund and return of contributions; change deadlines for reports; provide further for municipal candidates; move certain provisions of Title 10A to Title 17; clarify and eliminate corporate contribution limits consistent with administrative procedure and certain legal interpretations of law; remove private foundation limits in the PAC to PAC ban; clarify responsible person in PAC to PAC ban; allow certain transfers between state and local political party organizations; transfer certain enforcement provisions from Chapter 17 of Title 17 to Chapter of Title 17; provide further for venue of prosecutions; and provide further for regulation of legislative caucuses

Relating to the Fair Campaign Practices Act; to amend Sections 17-5-2, 17-5-3, 17-5-4, 17-5-5, 17-5-7, 17-5-8, 17-5-8.2, 17-5-9, 17-5-12, 17-5-14, 17-5-15, 17-5-15.1, 17-5-16, and 17-5-19, Code of Alabama 1975, so as to lower contribution threshold amounts; allow designated representatives to file reports; clarify that certain legislative caucuses are not covered by the act; clarify persons subject to violations of the act; change the legislative session prohibition on fundraising to apply to legislative and statewide candidates; clarify allowable spending amounts for dinners and functions; provide for refund and return of contributions; change deadlines for reports; provide further for municipal candidates; clarify corporate contribution limits to be consistent with recent administrative procedure and certain legal interpretations of law; remove private foundation limits in the PAC to PAC ban; clarify responsible person in PAC to PAC ban; allow certain transfers between state and local party organizations; transfer enforcement provisions from Chapter 17 of Title 17 to Chapter 5 of Title 17, Code of Alabama 1975; provide further for venue of prosecutions; to add Sections 17-5-5.1 and 17-15-14.1 to the Code of Alabama 1975, to provide further for legislative caucuses and to move certain provisions relating to corporate contributions from Title 10A to Title 17; and to repeal Section 10A-21-1.01 to 10A-21-1.04, inclusive and Section 17-17-5, Code of Alabama 1975. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Sections 17-5-2, 17-5-3, 17-5-4, 17-5-5, 17-5-7, 17-5-8, 17-5-8.2, 17-5-9, 17-5-12, 17-5-14, 17-5-15, 17-5-15.1, 17-5-16, and 17-5-19, Code of Alabama 1975, are amended to read as follows: "§17-5-2. "(a) For purposes of this chapter, the following terms shall have the following meanings: "(1) CANDIDATE. An individual who has done any of the following: "a. Taken the action necessary under the laws of the state to qualify himself or herself for nomination or for election to any state office or local office or in the case of an independent seeking ballot access, on the date when he or she files a petition with the judge of probate in the case of county offices, with the appropriate qualifying municipal official in the case of municipal offices, or the Secretary of State in all other cases. "b. Received contributions or made expenditures in excess of one thousand dollars ($1,000), or given his or her consent for any other person or persons to receive contributions or make expenditures in excess of one thousand dollars ($1,000), with a view to bringing about his or her nomination or election to any state office or local office. Notwithstanding the foregoing, no person shall be considered a candidate within the meaning of this subdivision until the time that he or she has either received contributions or made expenditures as provided herein in the following amounts: "1. Twenty-five thousand dollars ($25,000) or more, with a view toward bringing about nomination or election to any state office other than one filled by election of the registered voters of any circuit or district within the state. "2. Five thousand dollars ($5,000) or more, with a view toward bringing about nomination or election to any state office, excluding legislative office, filled by election of the registered voters of any circuit or district. "3. Ten thousand dollars ($10,000) or more, with a view toward bringing about nomination or election to the Alabama Senate and five thousand dollars ($5,000) or more, with a view toward bringing about nomination or election to the Alabama House of Representatives. "4. One thousand dollars ($1,000) or more, with a view toward bringing about nomination or election to any local office. "(2) CONTRIBUTION. "a. Any of the following shall be considered a contribution: "1. A gift, subscription, loan, advance, deposit of money or anything of value, a payment, a forgiveness of a loan, or payment of a third party, made for the purpose of influencing the result of an election. "2. A contract or agreement to make a gift, subscription, loan, advance, or deposit of money or anything of value for the purpose of influencing the result of an election. "3. Any transfer of anything of value received by a political committee from another political committee, political party, or other source. "4. The payment of compensation by any person for the personal services or expenses of any other person if the services are rendered or expenses incurred on behalf of a candidate, political committee, or political party without payment of full and adequate compensation by the candidate, political committee, or political party. Provided, however, that the payment of compensation by a corporation for the purpose of establishing, administering, or soliciting voluntary contributions to a separate, segregated fund as permitted by Section 10-1-2 in this chapter, shall not constitute a contribution. "b. The term "contribution" does not include: "1. The value of services provided without compensation by individuals who volunteer a portion or all of their time on behalf of a candidate or political committee. "2. The use of real or personal property and the cost of invitations, food, or beverages, voluntarily provided by an individual to a candidate or political committee in rendering voluntary personal services on the individual's residential or business premises for election-related activities. "3. The sale of any food or beverage by a vendor for use in an election campaign at a charge to a candidate or political committee less than the normal comparable charge, if the charge to the political committee for use in an election campaign is at least equal to the cost of the food or beverage to the vendor. "4. Any unreimbursed payment for travel expenses made by an individual who, on his or her own behalf, volunteers personal services to a candidate or political committee. "5. The payment by a state or local committee of a political party of the cost of preparation, display, or mailing or other distribution incurred by the committee with respect to a printed slate card or sample ballot, or other printed listing of two or more candidates for any public office for which an election is held in the state, except that this subparagraph shall not apply in the case of costs incurred by the committee with respect to a display of the listing made on broadcasting stations, or in newspapers, magazines, or other similar types of general public political advertising. "6. The value or cost of polling data and voter preference data and information if provided to a candidate or political committee, unless the information was compiled with the advance knowledge of and approval of the candidate or the political committee. "(3) DESIGNATED REPRESENTATIVE. An individual appointed to execute, file, or electronically submit any report or other filing required by this chapter on behalf of a candidate, his or her principal campaign committee, or a political action committee. The execution or filing of a report required by this chapter by a designated representative shall be deemed equivalent to the filing required of the candidate, his or her principal campaign committee, or a political action committee. "(3)(4) ELECTION. Unless otherwise specified, any general, special, primary, or runoff election, or any convention or caucus of a political party held to nominate a candidate, or any election at which a constitutional amendment or other proposition is submitted to the popular vote. "(4)(5) ELECTIONEERING COMMUNICATION. Any communication disseminated through any federally regulated broadcast media, any mailing, or other distribution, electronic communication, phone bank, or publication which (i) contains the name or image of a candidate; (ii) is made within 120 days of an election in which the candidate will appear on the ballot; (iii) the only reasonable conclusion to be drawn from the presentation and content of the communication is that it is intended to influence the outcome of an election; and (iv) entails an expenditure in excess of one thousand dollars ($1,000). "(5)(6) EXPENDITURE. a. The following shall be considered expenditures: 1. A purchase, payment, distribution, loan, advance, deposit, or gift of money or anything of value made for the purpose of influencing the result of an election. 2. A contract or agreement to make any purchase, payment, distribution, loan, advance, deposit, or gift of money or anything of value, for the purpose of influencing the result of an election. 3. The transfer, gift, or contribution of funds of a political committee to another political committee. b. The term "expenditure" does not include: 1. Any news story, commentary, or editorial prepared by and distributed through the facilities of any broadcasting station, newspaper, magazine, or other periodical publication, unless the facilities are owned or controlled by any political party or political committee. 2. Nonpartisan activity designed to encourage individuals to register to vote, or to vote. 3. Any communication by any membership organization to its members or by a corporation to its stockholders and employees if the membership organization or corporation is not organized primarily for the purpose of influencing the result of an election. 4. The use of real or personal property and the cost of invitations, food, or beverages, voluntarily provided by an individual in rendering voluntary personal services on the individual's residential or business premises for election-related activities. 5. Any unreimbursed payment for travel expenses made by an individual who, on his or her own behalf, volunteers personal services to a candidate or political committee. 6. Any communication by any person which is not made for the purposes of influencing the result of an election. 7. The payment by a state or local committee of a political party of the cost of preparation, display, or mailing or other distribution incurred by the committee with respect to a printed slate card or sample ballot, or other printed listing of two or more candidates for any public office for which an election is held in the state, except that this subparagraph shall not apply in the case of costs incurred by the committee with respect to a display of the listing made on broadcasting stations, or in newspapers, magazines, or other similar types of general public political advertising. "(6)(7) IDENTIFICATION. The full name and complete address. "(7)(8) LOAN. A transfer of money, property, or anything of value in consideration of a promise or obligation, conditional or not, to repay in whole or part. "(8)(9) LOCAL OFFICE. Any office under the constitution and laws of the state, except circuit, district, or legislative offices, filled by election of the registered voters of a single county or municipality, or by the voters of a division contained within a county or municipality. "(9)(10) PERSON. An individual, partnership, committee, association, corporation, labor organization, or any other organization or group of persons. "(10)(11) PERSONAL AND LEGISLATIVE LIVING EXPENSES. Household supplies, personal clothing, tuition payments, mortgage, rent, or utility payments for a personal residence; admission to an entertainment event or fees for a country club or social club, unless tied to a specific campaign event or functions involving constituents; and any other expense, excluding food and beverages, that would exist irrespective of the candidate's campaign or duties as a legislator. Personal and legislative living expenses shall not include expenses for food, beverages, travel, or communications incurred by the legislator in the performance of the office held. "(11)(12) POLITICAL ACTION COMMITTEE. Any political action committee, club, association, political party, or other group of one or more persons which receives or anticipates receiving contributions or and makes or anticipates making expenditures to or on behalf of any elected official, proposition, candidate, principal campaign committee or other political action committee. For the purposes of this chapter, an individual who makes a personal political contribution shall not be considered a political action committee. "(12)(13) PRINCIPAL CAMPAIGN COMMITTEE. The principal campaign committee designated by a candidate under Section 17-5-4. A political action committee established primarily to benefit an individual candidate or an individual elected official shall be considered a principal campaign committee for purposes of this chapter. "(13)(14) PROPOSITION. Any proposal for submission to the general public for its approval or rejection, including proposed as well as qualified ballot questions. "(14)(15) PUBLIC OFFICIAL. Any person elected to public office, whether or not that person has taken office, by the vote of the people at the state, county, or municipal level of government or their instrumentalities, including governmental corporations, and any person appointed to a position at the state, county, or municipal level of government or their instrumentalities, including governmental corporations. For purposes of this chapter, a public official includes the chairs and vice chairs or the equivalent offices of each state political party as defined in Section 17-13-40. "(15)(16) STATE. The State of Alabama. "(16)(17) STATE OFFICE. All offices under the constitution and laws of the state filled by election of the registered voters of the state or of any circuit or district and shall include legislative offices. "(b) The words and terms used in this chapter shall have the same meanings respectively ascribed to them in Section 36-25-1. "§17-5-3. "(a) Every political action committee shall have a chair and a treasurer. "(b) All funds of a political action committee shall be segregated from, and shall not be commingled with, any personal funds of officers, members, or associates of such committee. "(c) It shall be the duty of the treasurer of a political action committee to keep a detailed, exact account of: "(1) All contributions made to or for such committee. "(2) All expenditures made by or on behalf of such committee. "(3) The identification of every person to whom an expenditure is made, the date and amount thereof, and the name of each candidate on whose behalf such expenditure was made or a designation of the election proposition the result of which the political action committee will attempt to influence by making expenditures or receiving contributions. "(d) It shall be the duty of the treasurer to obtain and keep a receipted bill or cancelled check, stating the particulars for every expenditure made by or on behalf of a political action committee greater than one hundred dollars ($100), and for any such expenditure in a lesser amount, if the aggregate amount of such expenditures to the same person during a calendar year is greater than one hundred dollars ($100). Provided, however, the treasurer of a political action committee shall not be required under this chapter to report any expenditure not related to political contributions or expenditures or made as an administrative expense. The treasurer shall preserve all receipted bills and accounts required to be kept by this section for a period of two years from the date of any such expenditure. "(e) Any political action committee may appoint a designated representative in the manner established by the Secretary of State or judge of probate, as appropriate. "§17-5-4. Within five days after any person becomes a candidate for office, such person shall file with the Secretary of State or judge of probate, as provided in Section 17-5-9, a statement showing the name of not less than two nor more than five persons elected to serve as the principal campaign committee for such candidate, together with a written acceptance or consent by such committee, but any candidate may declare himself or herself as the person chosen to serve as the principal campaign committee, in which case such candidate shall perform the duties of chair and treasurer of such committee prescribed by this chapter. If any vacancies be created by death or resignation or any other cause, such candidate may fill such vacancy, or the remaining members shall discharge and complete the duties required of such committee as if such vacancy had not been created. The principal campaign committee, or its treasurer, shall have exclusive custody of all moneys contributed, donated, subscribed or in any manner furnished to or for the candidate represented by such committee, and shall account for and disburse the same. No candidate shall expend any money in aid of his or her nomination or election except by contributing to the principal campaign committee designated by the candidate. Any candidate or his or her principal campaign committee may appoint a designated representative in the manner established by the Secretary of State or judge of probate, as appropriate. "§17-5-5. "(a) Each The treasurer of each political action committee which anticipates either receiving contributions or making expenditures during the calendar year in an aggregate amount exceeding one thousand dollars ($1,000) shall file with the Secretary of State or the judge of probate as herein provided in Section 17-5-9, a statement of organization, within 10 days after its organization or, if later within 10 days after the date on which it has information which causes the committee to anticipate it will receive contributions or make expenditures in an aggregate amount in excess of one thousand dollars ($1,000). "(b) The statement of organization shall include: "(1) The name and complete address of the committee. "(2) The identification of affiliated or connected organizations, if any. "(3) The purposes of the committee. "(4) The identification of the chair and treasurer. "(5) The identification of principal officers, including members of any finance committee. "(6) A description of the constitutional amendments or other propositions, if any, that the committee is supporting or opposing, and the identity, if known, of any candidate or elected official that the committee is supporting or opposing. "(7) A statement whether the committee is a continuing one, and if not, the expected termination or dissolution date. "(8) The disposition of residual funds which will be made in the event of dissolution. "(c) Any material change in information previously submitted in a statement of organization, except for the information described in subdivision (6) above, shall be reported to the Secretary of State or judge of probate as provided in Section 17-5-9, within 10 days following the change. "(d) Any political action committee or any principal campaign committee after having filed its initial statement of organization shall continue in existence until terminated or dissolved as provided herein. When any political action committee determines it will no longer receive contributions or make expenditures during any calendar year in an aggregate amount exceeding one thousand dollars ($1,000), or when any candidate through his or her principal campaign committee determines that he or she will not receive contributions or make expenditures in the amounts specified in Section 17-5-2, the chair or treasurer of such political committee may shall so notify the Secretary of State or judge of probate, as designated in Section 17-5-9, of the termination or dissolution of such political committee. Such notice shall contain a statement by the treasurer of such committee of the intended disposition of any residual funds then held by the committee on behalf of a candidate. "§17-5-7. "(a) A candidate, public official, or principal campaign committee as defined in this chapter, may only use campaign contributions, and any proceeds from investing the contributions that are in excess of any amount necessary to defray expenditures of the candidate, public official, or principal campaign committee, for the following purposes: "(1) Necessary and ordinary expenditures of the campaign. "(2) Expenditures that are reasonably related to performing the duties of the office held. For purposes of this section, expenditures that are reasonably related to performing the duties of the office held do not include personal and legislative living expenses, as defined in this chapter. "(3) Donations to the State General Fund, the Education Trust Fund, or equivalent county or municipal funds. Donations to an organization to which a federal income tax deduction is permitted under subparagraph (A) of paragraph (1) of subsection (b) of Section 170 of the Internal Revenue Code of 1986, as amended, or any other charitable, educational, or eleemosynary cause of Section 501 of Title 26 of the U. S. Code. "(4) Inaugural or transitional expenses. "(5) Donations to a legislative conference, caucus, or other legislative entity provided that the entity does not receive contributions as defined by Section 17-5-2(a)(2)a. in support of candidates, principal campaign committees, elected officials, or make expenditures as defined by Section 17-5-2(a)(6)a. in support of candidates, principal campaign committees, elected officials, propositions, or political action committees. "(b) Notwithstanding any other provision of law, including, but not limited to, Section 13A-10-61, a candidate, public official, or principal campaign committee may only accept, solicit, or receive contributions: "(1) To influence the outcome of an election. "(2) For a period of 12 months before an election in which the person intends to be a candidate. Provided, however, candidates for state legislative and statewide office and their principal campaign committees may not accept, solicit, or receive contributions during the period when the Legislature is convened in session. For purposes of this section, the Legislature is convened in session at any time from the opening day of the special or regular session and continued through the day of adjournment sine die for that session. However, this subdivision shall not apply within 120 days of any primary, runoff, or general election, and shall not apply to the candidates or their principal campaign committees participating in any special election as called by the Governor. This subdivision shall not apply to a loan from a candidate to his or her own principal campaign committee. "(3) For a period of 120 days after the election in which the person was a candidate, but only to the extent of any campaign debt of the candidate or principal campaign committee of the candidate as indicated on the campaign financial disclosure form or to the extent of reaching the threshold that is required for qualification as a candidate for the office which he or she currently holds, or both. "(4) For the purpose of paying all expenses associated with an election challenge including, but not limited to, quo warranto challenges. "(c) Notwithstanding any other provision of law, including, but not limited to, Section 13A-10-61, a candidate, public official, or principal campaign committee shall not accept, solicit, or receive contributions for any of the following reasons: "(1) As a bribe, as defined by Sections 13A-10-60 to 13A-10-63, inclusive. "(2) For the intention of corruptly influencing the official actions of the public official or candidate for public office. "(d) Notwithstanding any other provision of law, a principal campaign committee, during a two-year period term of office commencing on the day after the each regularly scheduled general election for the seat or office the candidate seeks and ending on the day of the next general election for that seat or office, may also pay qualifying fees to a political party and may expend, during that two-year period, up to a cumulative total of five thousand dollars ($5,000) of campaign contributions, and any proceeds from investing the contributions, for the following purposes: "(1) Tickets for political party dinners or functions. "(2) State or local political party dues or similar expenses incurred by independent or write-in candidates. "(e) Notwithstanding any other provision of law, a candidate, principal campaign committee, or political action committee may return or refund, in full or in part, any contribution it receives to the donor provided that such return or refund may not exceed the amount received. In the case of a candidate or principal campaign committee, the contributions being refunded must have been reported in an itemized manner and the refund must