SB 914 — AN ACT CONCERNING DISCLOSURE OF COORDINATED AND INDEPENDENT POLITICAL SPENDING.

General Assembly RaisedSubstitute Bill No.

914 January Session, 2019 LCOAN No.ACT CONCERNING DISCLOSURE OF COORDINATED AND INDEPENDENT POLITICAL SPENDING.

4392 Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS Introduced by:

(GAE) AN ACT CONCERNING DISCLOSURE OF COORDINATED AND INDEPENDENT POLITICAL SPENDING.

(2) For the 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 such candidate or committee, or any agent of such 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 and such candidate or committee, or any agent of such candidate or committee, shall not regard the campaign advertising, message, strategy, policy, polling, LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00914-R01 of 7 SB.docx Substitute Bill No.

4392914 1 of 7 Raised Bill No.914 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 and such candidate or committee, or any agent of such candidate or committee, shall not regard the campaign advertising, message, strategy, policy, polling, fund-raising, campaign operations or allocation of resources of such candidate, committee or 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, (2) "election cycle" means, with respect to an office to which a person seeks nomination or election, the period beginning the day after a regular election for such office and ending the day of the next regular election for such office, and (3) "member of the family" means (A) thea spousespouse, of the candidate, (B) any sibling, parent, child, grandparent, grandchild, aunt or uncleuncle, of the candidate, (C) any sibling, parent, child, grandparent, grandchild, aunt or uncle of thesuch spousespouse, of the candidate, or (D) the spouse of any child of any such individual described in subparagraph (B) or (C) of this subdivision.

(2) Except as otherwise provided in this subdivision, any person on whose behalf during an election cycle such candidate or committee, or any agent of such candidate or committee, solicits funds or engages in fund-raising activity, including the provision to such person of 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 LCOpays No.fair market value for any such name or list.

4392Such 2person shall not be considered a coordinated spender under this subdivision if any funds raised by such candidate or committee, or any agent of 7such Raisedcandidate Billor No.914committee, paysare fair(A) marketsegregated valuefrom foreach other account controlled by such person, and (B) not used to make (i) any independent expenditure that benefits such namecandidate or list.committee, or LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00912 of 7 R01-SB.docx } Substitute Bill No.

Such914 person shall not be considered a coordinated spender under this subdivision if any funds raised by such candidate or committee, or any agent of such candidate or committee, are (A) segregated from each other account controlled by such person, and (B) not used to make (i) any independent expenditure that benefits such candidate or committee, or (ii) any contribution or covered transfer to another person who later in such election cycle makes any independent expenditure, contribution or covered transfer that benefits such candidate or 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 LCOthat No.the following expenditures are not independent expenditures:

4392(1) 3An ofexpenditure 7made Raisedby Billa No.914person that[in cooperation, consultation or in concert with, at the followingrequest, expendituressuggestion areor notdirection independentof, expenditures:or] pursuant to a general or [particular] tacit understanding with (A) a candidate, candidate committee, political committee or party LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-009143 of 7 R01-SB.docx } Substitute Bill No.

(1)914 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, politicalcommittee or party committee, or (B) a consultant or other agent acting on behalf of a candidate, candidate committee, politicalcommittee 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 immediately LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00914 of 7 R01-SB.docx } Substitute Bill No.

4392914 4 of 7 Raised Bill No.914 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 immediately preceding election cycle;

(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 LCOdissemination. No.

4392[As 5used in] For the 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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00915 of 7 RaisedR01-SB.docx Bill} No.914Substitute dissemination.Bill No.

[As914 used in] For the 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;

For the purposes of this subdivision, communications[communications strategy or designdesign] "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 the purposes of this subdivision, campaign-related[campaign- vendorrelated vendor] "campaign-related vendor" includes, but is not limited to, a vendor that provides any of the following services:

[.] and (10) An expenditure made by any person directly or indirectly formed, controlled or established in an election cycle or the immediately preceding election cycle by, at the request or suggestion of, or with the encouragement of, another 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 LCOconstitute No.evidence of consent, coordination or consultation within the meaning of subsection (a) of this section:

4392(1) 6Participation by a candidate or an agent of 7the Raisedcandidate Billin No.914an constituteevent evidencesponsored ofby consent,the coordinationentity, orunless consultationsuch withinevent promotes the meaningsuccess of subsectionthe (a)candidate's LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00916 of this7 section:R01-SB.docx } Substitute Bill No.

(1)914 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;

Section 1 January 1, 2020 9-601c Statement of Purpose:Legislative Commissioners:

ToIn createSubsec. bright lines between coordinated and independent spending.

[Proposed(b)(3), deletions"of arethe enclosedcandidate" inwas brackets.deleted to avoid repetition with Subdivs.

Proposed(4) additionsand are(5) indicated by underline, not underlined.] the entire text of asaid billsubsection; or resolution or a section of a bill or resolution is new, it is LCO No.

4392and 7in ofSubsec. 7

(e)(9), "communications strategy or design" was changed to "[communications strategy or design] "communications strategy or design"" and "campaign-related vendor" was changed to "[campaign- related vendor] "campaign-related vendor"" for consistency.

GAE Joint Favorable Subst.

-LCO LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-009147 of 7 R01-SB.docx }