SB302INTRODUCED
Page 0
SB302
YFGA26N-1
By Senator Smitherman
RFD: Judiciary
First Read: 04-Apr-24
1
2
3
4
5 YFGA26N-1 03/19/2024 PMG (L)PMG 2024-1049
Page 1
First Read: 04-Apr-24
SYNOPSIS:
Under existing law, "electioneering
communication" under the Fair Campaign Practices Act is
generally defined as a communications disseminated
through a specified manner that is made within 120 days
of an election intended to influence the outcome of an
election.
This bill would revise the definition of
"electioneering communication" as paid advertising
disseminated through a specified manner that occurs 30
days before a primary election or 60 days before a
general election, is targeted to the relevant
electorate in the geographic area where the candidate
is on the ballot, and is an appeal to vote for or
against a specific candidate.
Under existing law, "expenditure" under the Fair
Campaign Practices Act is generally defined as a
purchase, payment, distribution, loan, or gift of money
or anything of value to influence the result of an
election. There are a number of exclusions from the
definition.
This bill would also exclude from the definition
of "expenditure" a payment or disbursement related to
an advertisement or other communication by a person
that is not a principal campaign committee or political
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 SB302 INTRODUCED
Page 2
that is not a principal campaign committee or political
action committee unless the communication includes
express advocacy to vote for or against a candidate or
proposition on the ballot.
Under existing law, a "political action
committee" under the Fair Campaign Practices Act is
generally defined as an entity that receives
contributions or makes expenditures to or on behalf of
a candidate, proposition, principal campaign committee,
or other political action committee.
This bill would revise the definition of
"political action committee" to apply only if the major
purpose of the entity is making the contributions or
expenditures to or on behalf of one of these entities.
Under existing law, contributions and
expenditures of electioneering communications must be
reported by the payor of the electioneering
communication.
This bill would provide that electioneering
communications would only have to be reported once
during an election cycle unless the payor makes
additional contributions or expenditures of
electioneering communications.
This bill would also delete certain exemptions
of reporting of electioneering communications by
churches in certain circumstances and used by the
membership of trade organizations.
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56 SB302 INTRODUCED
Page 3
A BILL
TO BE ENTITLED
AN ACT
Relating to the Fair Campaign Practices Act; to amend
Section 17-5-2, Code of Alabama 1975, to revise the
definitions of "electioneering communication," "expenditure,"
and "political action committee;" to amend Section 17-5-8,
Code of Alabama 1975, to revise the reporting requirements for
electioneering communications and remove certain exceptions
relating to electioneering communications reporting.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 17-5-2 and 17-5-8, 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
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84 SB302 INTRODUCED
Page 4
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.
(2) COMMISSION. The State Ethics Commission created
pursuant to Section 36-25-3.
(3) 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
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112 SB302 INTRODUCED
Page 5
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 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
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140 SB302 INTRODUCED
Page 6
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.
c. For purposes of reporting contributions as required
by this chapter, the date of receipt of a contribution shall
be the first date the recipient of the contribution is able to
make use of the contribution. In the case of a contribution in
the form of a check, the date of receipt is the earlier of
either of the following:
1. Ten days from the date that the check came within
the recipient's control.
2. The date that the check was deposited into the
recipient's account.
(4) DESIGNATED FILING AGENT. An individual appointed
and authorized as attorney in fact to 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.
(5) 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
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168 SB302 INTRODUCED
Page 7
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.
(6) ELECTIONEERING COMMUNICATION.
a. Any communication paid advertising disseminated
through any federally regulated broadcast media, any mass
mailing of more than 500 pieces of identical or substantially
similar materials within any 30-day period , or other
distribution, electronic communication paid digital
advertising, any phone bank of more than 500 telephone calls
of an identical or substantially similar nature within any
30-day period, or publication paid print advertising which:
(i) contains the name or image of a candidate; (ii) is made
within 120 days of an 30 days before a primary or primary
runoff election or 60 days before any other election in which
the candidate will appear on the ballot; (iii) is targeted to
the relevant electorate in the geographic area the candidate
would represent if elected; (iv) 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 an appeal to vote for or against a
specific candidate ; and (iv)(v) entails an expenditure in
excess of one thousand dollars ($1,000).
b. The term "electioneering communication" does not
include either of the following:
1. A communication that is used by an organization or
entity to communicate with or inform members, employees,
members' employees, directors, owners, shareholders of that
organization or entity, or the family members of the
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196 SB302 INTRODUCED
Page 8
organization or entity, or the family members of the
foregoing.
2. A communication disseminated by a church unless the
church's expenditures are used to appeal to vote for or
against a specific candidate. Nothing in this subparagraph
shall require a church to disclose the identities, donations,
or contributions of members of the church. As used in this
section, the term "church" is defined in accordance with and
recognized by guidelines and regulations of the Internal
Revenue Service.
(7) 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.
4. The payment of any qualifying fee or other cost
associated with qualifying to run for office.
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.
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224 SB302 INTRODUCED
Page 9
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.
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252 SB302 INTRODUCED
Page 10
advertising.
8. A payment or disbursement related to an
advertisement or other communication by an individual or
entity that is not a principal campaign committee or political
action committee unless the communication includes express
advocacy. For purposes of this subparagraph, "express
advocacy" means a communication containing express words of
advocacy of election or defeat, including "vote for," "elect,"
"support," "cast your ballot for," "Smith for Congress," "vote
against," "defeat," or "reject."
c. For purposes of reporting expenditures as required
by this chapter, the date an expenditure is made is the date
the instrument authorizes the expenditure. In the case of an
expenditure made by check or electronic payment, the date of
expenditure is the date of the check or electronic payment.
(8) IDENTIFICATION. The full name and complete address.
(9) 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.
(10) 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.
(11) PERSON. An individual, partnership, committee,
association, corporation, labor organization, or any other
organization or group of persons.
(12) PERSONAL AND LEGISLATIVE LIVING EXPENSES.
Household supplies, personal clothing, tuition payments,
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280 SB302 INTRODUCED
Page 11
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.
(13) POLITICAL ACTION COMMITTEE. Any committee, club,
association, political party, or other group of one or more
persons, whether in-state or out-of-state, which :(i) receives
or anticipates receiving contributions ;and (ii) makes or
anticipates making expenditures ; and (iii) has the major
purpose of making contributions to or expenditures on behalf
of any Alabama state or local elected official, proposition,
candidate, principal campaign committee or other political
action committee. For the purposes of this chapter, a person
who makes a political contribution shall not be considered a
political action committee by virtue of making such
contribution. For purposes of this subdivision, "major
purpose" means that making contributions or expenditures
constitutes the preponderance of the spending of the
committee, club, association, political party, or other group
during a calendar year.
(14) POLITICAL PARTY. A political party as defined in
Section 17-13-40.
(15) PRINCIPAL CAMPAIGN COMMITTEE. The principal
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308 SB302 INTRODUCED
Page 12
(15) 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.
(16) PROPOSITION. Any proposal for submission to the
general public for its approval or rejection, including
proposed as well as qualified ballot questions.
(17) 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.
(18) STATE. The State of Alabama.
(19) 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."
"§17-5-8
(a) All filings with the Secretary of State under this
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336 SB302 INTRODUCED
Page 13
(a) All filings with the Secretary of State under this
section shall be made electronically. Electronic filings shall
be available to the public on a searchable database maintained
on the Secretary of State's public website.
(b) The treasurer, designated filing agent, or
candidate shall file with the Secretary of State periodic
reports of contributions and expenditures at the following
times once a principal campaign committee files its statement
under Section 17-5-4 or a political action committee files its
statement of organization under Section 17-5-5:
(1) Regardless of whether a candidate has opposition in
any election, monthly reports not later than the second
business day of the subsequent month, beginning 12 months
before the date of any primary, special, runoff, or general
election for which a political action committee or principal
campaign committee receives contributions or makes
expenditures with a view toward influencing the election's
result. A monthly report shall include all reportable
transactions for the previous full month period. Reports shall
be required as provided in subdivisions (2) and (3).
(2) With regard to a primary, special, runoff, or
general election, a report shall be required weekly on the
Monday of the succeeding week for each of the four weeks
before the election that includes all reportable activities
for the previous week.
(3) In addition to the reporting dates specified in
subdivisions (1) and (2), reports required to be filed with
the Secretary of State shall be filed with the Secretary of
State on the eighth, seventh, sixth, fifth, fourth, third, and
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364 SB302 INTRODUCED
Page 14
State on the eighth, seventh, sixth, fifth, fourth, third, and
second day preceding a legislative, state school board, or
other statewide primary, special, runoff, or general election,
and by 12:01 p.m. on the day preceding a legislative, state
school board, or statewide, primary, special, runoff, or
general election if any principal campaign committee or
political action committee receives or spends in the aggregate
five thousand dollars ($5,000) or more on that day with a view
toward influencing an election's results. If a daily report is
required pursuant to this subdivision, the report shall
include all reportable activity occurring on the day of the
report as well as all reportable activity that has occurred on
each day since the most recent prior report.
(c) Except as provided in subsection (i)(g), each
principal campaign committee, political action committee, and
elected state and local official covered under this chapter
who has not closed his or her principal campaign committee
shall file annually with the Secretary of State reports of
contributions and expenditures made during that year. No
annual report is required to be filed by a person who holds
office because he or she was appointed to serve the remainder
of a term vacated by another person until the person serving
has created a principal campaign committee. The annual reports
required under this subsection shall be made on or before
January 31 of the succeeding year.
(d) Each report under this section shall disclose all
of the following:
(1) The amount of cash or other assets on hand at the
beginning of the reporting period and forward until the end of
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392 SB302 INTRODUCED
Page 15
beginning of the reporting period and forward until the end of
that reporting period and disbursements made from same.
(2) The identification of each person who has made
contributions to the committee or candidate within the
calendar year in an aggregate amount greater than one two
hundred dollars ($100)($200), together with the amount and
date of all the contributions; provided, however, in the case
of a political action committee, identification shall mean the
name and city of residence of each person who has made
contributions within the calendar year in an aggregate amount
greater than one two hundred dollars ($100)($200). The
Secretary of State shall adjust by one-dollar ($1) increments,
or a different increment as determined by the Secretary of
State, not later than January 1 following any year in which
the value, as adjusted pursuant to the U.S. Department of
Labor's Consumer Price Index or a successor index, exceeds the
current amount by one dollar ($1) or more, or by the increment
determined by the Secretary of State.
(3) The total amount of other contributions received
during the calendar year but not reported under subdivision
(2).
(4) Each loan to or from any person within the calendar
year in an aggregate amount greater than one hundred dollars
($100), together with the identification of the lender, the
identification of the endorsers, or guarantors, if any, and
the date and amount of the loans.
(5) The total amount of receipts from any other source
during the calendar year.
(6) The grand total of all receipts by or for the
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420 SB302 INTRODUCED
Page 16
(6) The grand total of all receipts by or for the
committee during the calendar year.
(7) The identification of each person to whom
expenditures have been made by or on behalf of the committee
or elected official within the calendar year in an aggregate
amount greater than one hundred dollars ($100), the amount,
date, and purpose of each expenditure, and, if applicable, the
designation of each constitutional amendment or other
proposition with respect to which an expenditure was made.
(8) The identification of each person to whom an
expenditure for personal services, salaries, or reimbursed
expenses greater than one hundred dollars ($100) has been
made, and which is not otherwise reported or exempted from
this chapter, including the amount, date, and purpose of the
expenditure.
(9) The grand total of all expenditures made by the
committee or elected official during the calendar year.
(10) The amount and nature of debts and obligations
owed by or to the committee or elected official, together with
a statement as to the circumstances and conditions under which
any debt or obligation was extinguished and the consideration
therefor.
(e) Each report required by this section shall be
signed and filed by the elected official or on behalf of the
political action committee by its chair or treasurer and, if
filed on behalf of a principal campaign committee, by the
candidate represented by the committee. There shall be
attached to each report an affidavit subscribed and sworn to
by the official or chair or treasurer and, if filed by a
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448 SB302 INTRODUCED
Page 17
by the official or chair or treasurer and, if filed by a
principal campaign committee, the candidate represented by the
committee, setting forth in substance that the report is to
the best of his or her knowledge and belief in all respects
true and complete, and, if made by a candidate, that he or she
has not received any contributions or made any expenditures
which are not set forth and covered by the report.
(f) In connection with any electioneering communication
paid for by a person, nonprofit corporation, entity, principal
campaign committee, or other political committee or entity,
the payor shall disclose its contributions and expenditures in
accordance with this section make a communication-specific
disclosure to the Secretary of State of the amount involved
and nature of the communication, such as broadcast media or
mass mailing, using a form prescribed by rule by the Secretary
of State. The disclosure of an electioneering communication
shall be made in the same form and at the same time as is
required of political action committees in this section within
five business days of the commencement of the communication ;
provided, however, no:
(1) The payor shall not be required to report an
electioneering communication more than once during an election
cycle unless the payor pays for any additional electioneering
communications during that election cycle, in which event the
payor shall make disclosures as described in this subsection
within five business days of the commencement of the
additional communication; and
(2) No duplicate reporting shall be required by a
political action committee that reports an electioneering
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476 SB302 INTRODUCED
Page 18
political action committee that reports an electioneering
communication with a report the political action committee
otherwise files under this chapter .
(g) Notwithstanding any disclosure requirements of
subsection (f), churches are exempt from the requirements of
this section unless the church's expenditures are used to
influence the outcome of an election. Nothing herein shall
require a church to disclose the identities, donations, or
contributions of members of the church. As used in this
section, the term church is defined in accordance with and
recognized by Internal Revenue Service guidelines and
regulations.
(h) Notwithstanding the disclosure requirements of this
section, this section shall not be interpreted to nor shall
they require any disclosure for expenses incurred for any
electioneering communication used by any membership or trade
organization to communicate with or inform its members, its
members' families, or its members' employees or for any
electioneering communication by a business entity of any type
to its employees or stockholders or their families.
(i)(g) Each report required by this section shall
include all reportable transactions occurring since the most
recent prior report; however, duplicate reporting is not
required by this section. A political action committee or
principal campaign committee that is required to file a daily
report is not required to also file a weekly report for the
week preceding an election specified in subdivision (b) (3); a
committee required to file a weekly report is not required to
also file a monthly report in the month in which the election
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504 SB302 INTRODUCED
Page 19
also file a monthly report in the month in which the election
is held; and a committee required to file a monthly report is
not required to also file an annual report in the year in
which the election is held. The monetary balance in a report
of each committee shall begin at the monetary amount appearing
in the most recent prior report.
(j)(h) The Secretary of State may adopt administrative
rules pursuant to the Alabama Administrative Procedure Act as
are necessary to implement and administer this section."
Section 2. This act shall become effective on October
1, 2024.
505
506
507
508
509
510
511
512
513
514