Second Regular Session Seventy-third General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 22-1032.02 Pierce Lively x2059 SENATE BILL 22-237 Senate Committees House Committees State, Veterans, & Military Affairs Appropriations A BILL FOR AN ACT C ONCERNING MEASURES TO PROM OTE INCREASED TRANSPARENCY OF101 FUNDS USED IN BALLOT MEASURE CAMPAIGNS , AND, IN 102 CONNECTION THEREWITH , MAKING AN APPROPRIATION .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill expands the definition of "earmark" for purposes of the "Fair Campaign Practices Act" to include contributions or expenditures greater than $1,000 to support or oppose a specified ballot issue or ballot question. Further, the bill modifies the process to determine whether an SENATE 3rd Reading Unamended May 5, 2022 SENATE Amended 2nd Reading May 4, 2022 SENATE SPONSORSHIP Fenberg and Holbert, Bridges, Buckner, Danielson, Donovan, Fields, Ginal, Gonzales, Hansen, Hinrichsen, Jaquez Lewis, Kirkmeyer, Kolker, Lee, Moreno, Pettersen, Priola, Scott, Simpson, Sonnenberg, Story, Winter, Woodward, Zenzinger HOUSE SPONSORSHIP Kennedy and Larson, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. organization is an issue committee to include an examination of the organization's pattern of conduct based upon whether the organization: ! During the combined period of the entire preceding and current calendar years, made either contributions to one or more Colorado issue committees or direct ballot issue or ballot question expenditures, in either support of or opposition to one or more ballot issues or ballot questions, that exceeded 30% of the total expenditures by the organization for any purpose and in any location during the entire preceding and current calendar years; ! During the combined period of the entire preceding and current calendar years, made either contributions to a single Colorado issue committee or direct ballot issue or ballot question expenditures, in either support of or opposition to a single ballot issue or ballot question, that exceeded 20% of the total expenditures by the organization for any purpose and in any location; or ! Acted as an issue committee's funding intermediary by making contributions to an issue committee from funds earmarked for the issue committee. Further, the bill defines "direct ballot issue or ballot question expenditure" as the spending of over $5,000 in a calendar year in either support of or opposition to any single ballot issue or ballot question by a person who does not otherwise meet the requirements of an issue committee. Any person who makes a direct ballot issue or ballot question expenditure must report to the secretary of state and must disclose their name in certain communications about a ballot issue or ballot question. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 1-45-103, amend2 (7.5) and (12)(b)(II); and add (7.2) as follows:3 1-45-103. Definitions - repeal. As used in this article 45, unless4 the context otherwise requires:5 (7.2) "D IRECT BALLOT ISSUE OR BALLOT QUESTION EXPENDITURE "6 MEANS DIRECT SPENDING IN SUPPORT OF OR OPPOSITION TO ANY SINGLE7 BALLOT ISSUE OR BALLOT QUESTION BY A PERSON WHO DOES NOT8 OTHERWISE MEET THE REQUIREMENTS OF AN ISSUE COMMITTEE .9 C ONTRIBUTIONS TO AN ISSUE COMMITTEE ARE NOT DIRECT BALLOT ISSUE 10 237-2- OR BALLOT QUESTION EXPENDITURES .1 (7.5) "Earmark" means a designation, instruction, or encumbrance2 that directs the transmission and use by the recipient of all or part of a3 donation to a third party for the purpose of making: one or more4 independent expenditures or electioneering communications in excess of5 one thousand dollars.6 (a) I NDEPENDENT EXPENDITURES GREATER THAN ONE THOUSAND7 DOLLARS TO SUPPORT OR OPPOSE A SPECIFIED CANDIDATE ;8 (b) E LECTIONEERING COMMUNICATIONS GREATER THAN ONE9 THOUSAND DOLLARS; OR10 (c) C ONTRIBUTIONS OR EXPENDITURES GREATER THAN ONE11 THOUSAND DOLLARS TO SUPPORT OR OPPOSE A SPECIFIED BALLOT ISSUE OR12 BALLOT QUESTION.13 (12) (b) For purposes of section 2 (10)(a)(I) of article XXVIII of14 the state constitution, "major purpose" means support of or opposition to15 a ballot issue or ballot question that is reflected by:16 (II) An organization's demonstrated pattern of conduct based upon17 its IT:18 (A) Annual expenditures in support of or opposition to a ballot19 issue or ballot question; or20 (B) Production or funding, or both, of written or broadcast21 communications, or both, in support of or opposition to a ballot issue or22 ballot question.23 (C) D URING THE COMBINED PERIOD OF THE CURRENT CALENDAR 24 YEAR AND THE PRECEDING TWO CALENDAR YEARS , MAKING EITHER25 CONTRIBUTIONS TO ONE OR MORE STATEWIDE COLORADO ISSUE26 COMMITTEES OR DIRECT BALLOT ISSUE OR BALLOT QUESTION27 237 -3- EXPENDITURES, IN EITHER SUPPORT OF OR OPPOSITION TO ONE OR MORE1 STATEWIDE COLORADO BALLOT ISSUES OR BALLOT QUESTIONS , THAT2 EXCEEDED THIRTY PERCENT OF THE TOTAL DOLLAR AMOUNT OF ALL FUNDS3 SPENT BY THE ORGANIZATION FOR ANY PURPOSE AND IN ANY LOCATION4 DURING THE ENTIRE PRECEDING AND CURRENT CALENDAR YEARS ;5 (D) D URING THE COMBINED PERIOD OF THE CURRENT CALENDAR 6 YEAR AND THE PRECEDING TWO CALENDAR YEARS , MAKING EITHER7 CONTRIBUTIONS TO A SINGLE STATEWIDE COLORADO ISSUE COMMITTEE OR8 DIRECT BALLOT ISSUE OR BALLOT QUESTION EXPENDITURES , IN EITHER9 SUPPORT OF OR OPPOSITION TO A SINGLE STATEWIDE COLORADO BALLOT10 ISSUE OR BALLOT QUESTION, THAT EXCEEDED TWENTY PERCENT OF THE11 TOTAL DOLLAR AMOUNT OF ALL FUNDS SPENT BY THE ORGANIZATION FOR12 ANY PURPOSE AND IN ANY LOCATION ; OR13 (E) A CTING AS AN ISSUE COMMITTEE'S FUNDING INTERMEDIARY BY14 MAKING CONTRIBUTIONS TO AN ISSUE COMMITTEE FROM FUNDS15 EARMARKED FOR THE ISSUE COMMITTEE .16 SECTION 2. In Colorado Revised Statutes, 1-45-108, add17 (1)(a)(VI) as follows:18 1-45-108. Disclosure - definitions - repeal. (1) (a) (VI) A NY19 PERSON, AFTER EXPENDING FIVE THOUSAND DOLLARS IN AGGREGATE IN A 20 CALENDAR YEAR ON DIRECT BALLOT ISSUE OR BALLOT QUESTION21 EXPENDITURES, SHALL, FOR EACH ADDITIONAL EXPENDITURE OF ONE22 THOUSAND DOLLARS OR MORE , REPORT TO THE SECRETARY OF STATE IN23 ACCORDANCE WITH THE DISCLOSURE REQUIRED BY THIS SECTION : THE24 AMOUNT OF THE EXPENDITURE , THE PURPOSE FOR WHICH THE25 EXPENDITURE WAS MADE , THE DATE OF THE EXPENDITURE , NAME AND26 ADDRESS OF THE PAYEE, AND THE BALLOT QUESTION OR BALLOT ISSUE27 237 -4- SUPPORTED OR OPPOSED . SUCH A REPORT MUST BE FILED WITH THE1 SECRETARY OF STATE NO LATER THAN FORTY -EIGHT HOURS AFTER THE2 DIRECT BALLOT ISSUE OR BALLOT QUESTION EXPENDITURE WAS MADE .3 SECTION 3. In Colorado Revised Statutes, 1-45-108.3, add (4)4 as follows:5 1-45-108.3. Disclaimer statement - committees - electioneering6 communications - direct ballot issue or ballot question expenditures.7 (4) A NY PERSON WHO MAKES A DIRECT BALLOT ISSUE OR BALLOT8 QUESTION EXPENDITURE SHALL , PURSUANT TO SECTION 1-45-107.5 (5),9 STATE THEIR NAME IN ANY COMMUNICATION THAT IS BROADCAST ,10 PRINTED, MAILED, OR DELIVERED; PLACED ON A WEBSITE, STREAMING11 MEDIA SERVICE, OR ONLINE FORUM FOR A FEE; OR THAT IS OTHERWISE12 DISTRIBUTED TO PERSONS WHO ARE ELIGIBLE TO VOTE ON THE BALLOT13 ISSUE OR BALLOT QUESTION AND IS PRODUCED OR FUNDED , EITHER IN14 WHOLE OR IN PART, BY THE PERSON WHO MADE THE DIRECT BALLOT ISSUE15 OR BALLOT QUESTION EXPENDITURE .16 SECTION 4. Appropriation. (1)(a) For the 2021-22 state fiscal 17 year, $30,000 is appropriated to the department of state for use by the18 information technology division. This appropriation is from the19 department of state cash fund created in section 24-21-104 (3)(b) C.R.S.20 To implement this act, the department may use this appropriation for21 information technology personal services.22 (b) Any money appropriated in this subsection (1)(a) not expended23 prior to July 1, 2022 is further appropriated to the department for the24 2022-23 state fiscal year for the same purpose.25 (2) For the 2022-23 state fiscal year, $14,309 is appropriated to26 the department of state for use by the election division. This appropriation27 237 -5- is from the department of state cash fund created in section 24-21-1041 (3)(b) C.R.S., and is based on an assumption that the division will require2 an additional 0.3 FTE. To implement this act, the department may use this3 appropriation for personal services.4 SECTION 5. Effective date - applicability. This act takes effect5 upon passage; except that section 2 of this act takes effect September 1,6 2022.7 SECTION 6. Safety clause. The general assembly hereby finds,8 determines, and declares that this act is necessary for the immediate9 preservation of the public peace, health, or safety.10 237 -6-