Connecticut 2019 Regular Session

Connecticut Senate Bill SB00914 Compare Versions

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7		-	General Assembly ~~Substitute~~ Bill No. 914
	5	+	General Assembly Raised Bill No. 914
8	6		January Session, 2019
	7	+	LCO No. 4392
9	8
	9	+
	10	+	Referred to Committee on GOVERNMENT ADMINISTRATION
	11	+	AND ELECTIONS
	12	+
	13	+
	14	+	Introduced by:
	15	+	(GAE)
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11	17
12	18
13	19
14	20		AN ACT CONCERNING DI SCLOSURE OF COORDINATED AND
15	21		INDEPENDENT POLITICA L SPENDING.
16	22		Be it enacted by the Senate and House of Representatives in General
17	23		Assembly convened:
18	24
19	25		Section 1. Section 9-601c of the general statutes is repealed and the 1
20	26		following is substituted in lieu thereof (Effective January 1, 2020): 2
21	27		(a) (1) As used in this chapter and chapter 157, [the term] 3
22	28		"independent expenditure" means an expenditure, as defined in 4
23	29		section 9-601b, that is made entirely without the consent, coordination 5
24	30		[,] or consultation of [,] a candidate or agent of [the] such candidate, 6
25	31		candidate committee, political committee or party committee. 7
26	32		(2) For the purposes of this section, a payment shall not be 8
27	33		considered to be made by a person with the consent, coordination or 9
28	34		consultation of, or at the request or suggestion of, a candidate or 10
29	35		committee solely on the grounds that such person or the agent of such 11
30	36		person engaged in discussion with such candidate or committee, or 12
31		-	any agent of such candidate or committee, regarding such person's 13
	37	+	any agent of such candidate or committee, regarding such person's 13 Raised Bill No. 914
	38	+
	39	+
	40	+
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	42	+
32	43		position on a legislative or policy matter, including urging the 14
33	44		candidate or committee to adopt such person's position, provided any 15
34	45		such discussion between such person and such candidate or 16
35	46		committee, or any agent of such candidate or committee, shall not 17
36		-	regard the campaign advertising, message, strategy, policy, polling, 18 Substitute Bill No. 914
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	47	+	regard the campaign advertising, message, strategy, policy, polling, 18
43	48		fund-raising, campaign operations or allocation of resources of such 19
44	49		candidate, committee or person. 20
45	50		(b) As used in this section, (1) "candidate" includes any person who, 21
46	51		during an election cycle, becomes a candidate later in such election 22
47	52		cycle and benefits from any expenditure, (2) "election cycle" means, 23
48	53		with respect to an office to which a person seeks nomination or 24
49	54		election, the period beginning the day after a regular election for such 25
50	55		office and ending the day of the next regular election for such office, 26
51		-	and (3) "member of the family" means (A) a spouse, (B) any sibling, 27
52		-	parent, child, grandparent, grandchild, aunt or uncle, (C) any sibling, 28
53		-	parent, child, grandparent, grandchild, aunt or uncle of such spouse, 29
54		-	or (D) the spouse of any child of any such individual described in 30
55		-	subparagraph (B) or (C) of this subdivision. 31
56		-	(c) As used in this section, "coordinated spender" means, with 32
57		-	respect to a candidate or committee: 33
58		-	(1) Any person directly or indirectly formed, controlled or 34
59		-	established in an election cycle or the immediately preceding election 35
60		-	cycle by, at the request or suggestion of, or with the encouragement or 36
61		-	approval of, such candidate or committee, or any agent of such 37
62		-	candidate or committee; 38
63		-	(2) Except as otherwise provided in this subdivision, any person on 39
64		-	whose behalf during an election cycle such candidate or committee, or 40
65		-	any agent of such candidate or committee, solicits funds or engages in 41
66		-	fund-raising activity, including the provision to such person of the 42
67		-	name of any potential donor or other list to be used by such person in 43
68		-	engaging in fund-raising activity, regardless of whether such person 44
69		-	pays fair market value for any such name or list. Such person shall not 45
70		-	be considered a coordinated spender under this subdivision if any 46
71		-	funds raised by such candidate or committee, or any agent of such 47
72		-	candidate or committee, are (A) segregated from each other account 48
73		-	controlled by such person, and (B) not used to make (i) any 49
74		-	independent expenditure that benefits such candidate or committee, or 50 Substitute Bill No. 914
	56	+	and (3) "member of the family" means (A) the spouse of the candidate, 27
	57	+	(B) any sibling, parent, child, grandparent, grandchild, aunt or uncle of 28
	58	+	the candidate, (C) any sibling, parent, child, grandparent, grandchild, 29
	59	+	aunt or uncle of the spouse of the candidate, or (D) the spouse of any 30
	60	+	child of any such individual described in subparagraph (B) or (C) of 31
	61	+	this subdivision. 32
	62	+	(c) As used in this section, "coordinated spender" means, with 33
	63	+	respect to a candidate or committee: 34
	64	+	(1) Any person directly or indirectly formed, controlled or 35
	65	+	established in an election cycle or the immediately preceding election 36
	66	+	cycle by, at the request or suggestion of, or with the encouragement or 37
	67	+	approval of, such candidate or committee, or any agent of such 38
	68	+	candidate or committee; 39
	69	+	(2) Except as otherwise provided in this subdivision, any person on 40
	70	+	whose behalf during an election cycle such candidate or committee, or 41
	71	+	any agent of such candidate or committee, solicits funds or engages in 42
	72	+	fund-raising activity, including the provision to such person of the 43
	73	+	name of any potential donor or other list to be used by such person in 44
	74	+	engaging in fund-raising activity, regardless of whether such person 45 Raised Bill No. 914
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81		-	(ii) any contribution or covered transfer to another person who later in 51
82		-	such election cycle makes any independent expenditure, contribution 52
83		-	or covered transfer that benefits such candidate or committee; 53
84		-	(3) Any person established, directed or managed by another person 54
85		-	who during an election cycle (A) served in such election cycle as a 55
86		-	political, media or fund-raising advisor or consultant for such 56
87		-	candidate or committee, or for any entity controlled by such candidate 57
88		-	or committee, or (B) held in such election cycle a formal position with a 58
89		-	title for such candidate or committee; 59
90		-	(4) Any person who is a member of the family of such candidate or 60
91		-	who is established, directed or managed by any member of the family 61
92		-	of such candidate; or 62
93		-	(5) Any person, or any officer or agent of such person, who has had 63
94		-	more than incidental discussion with a member of the family of such 64
95		-	candidate regarding campaign advertising, message, strategy, policy, 65
96		-	polling, fund-raising, campaign operations or allocation of resources of 66
97		-	such candidate, committee or person. 67
98		-	(d) Any expenditure made by a coordinated spender, as described 68
99		-	in subsection (c) of this section, shall be deemed to have been made 69
100		-	with the consent, coordination or consultation of, or at the request or 70
101		-	suggestion of, a candidate or committee, or any agent of such 71
102		-	candidate or committee. 72
103		-	[(b)] (e) When the State Elections Enforcement Commission 73
104		-	evaluates an expenditure, other than an expenditure described in 74
105		-	subsection (d) of this section, to determine whether such expenditure is 75
106		-	an independent expenditure, there shall be a rebuttable presumption 76
107		-	that the following expenditures are not independent expenditures: 77
108		-	(1) An expenditure made by a person [in cooperation, consultation 78
109		-	or in concert with, at the request, suggestion or direction of, or] 79
110		-	pursuant to a general or [particular] tacit understanding with (A) a 80
111		-	candidate, candidate committee, political committee or party 81 Substitute Bill No. 914
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	79	+
	80	+	pays fair market value for any such name or list. Such person shall not 46
	81	+	be considered a coordinated spender under this subdivision if any 47
	82	+	funds raised by such candidate or committee, or any agent of such 48
	83	+	candidate or committee, are (A) segregated from each other account 49
	84	+	controlled by such person, and (B) not used to make (i) any 50
	85	+	independent expenditure that benefits such candidate or committee, or 51
	86	+	(ii) any contribution or covered transfer to another person who later in 52
	87	+	such election cycle makes any independent expenditure, contribution 53
	88	+	or covered transfer that benefits such candidate or committee; 54
	89	+	(3) Any person established, directed or managed by another person 55
	90	+	who during an election cycle (A) served in such election cycle as a 56
	91	+	political, media or fund-raising advisor or consultant for such 57
	92	+	candidate or committee, or for any entity controlled by such candidate 58
	93	+	or committee, or (B) held in such election cycle a formal position with a 59
	94	+	title for such candidate or committee; 60
	95	+	(4) Any person who is a member of the family of such candidate or 61
	96	+	who is established, directed or managed by any member of the family 62
	97	+	of such candidate; or 63
	98	+	(5) Any person, or any officer or agent of such person, who has had 64
	99	+	more than incidental discussion with a member of the family of such 65
	100	+	candidate regarding campaign advertising, message, strategy, policy, 66
	101	+	polling, fund-raising, campaign operations or allocation of resources of 67
	102	+	such candidate, committee or person. 68
	103	+	(d) Any expenditure made by a coordinated spender, as described 69
	104	+	in subsection (c) of this section, shall be deemed to have been made 70
	105	+	with the consent, coordination or consultation of, or at the request or 71
	106	+	suggestion of, a candidate or committee, or any agent of such 72
	107	+	candidate or committee. 73
	108	+	[(b)] (e) When the State Elections Enforcement Commission 74
	109	+	evaluates an expenditure, other than an expenditure described in 75
	110	+	subsection (d) of this section, to determine whether such expenditure is 76
	111	+	an independent expenditure, there shall be a rebuttable presumption 77 Raised Bill No. 914
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118		-	committee, or (B) a consultant or other agent acting on behalf of a 82
119		-	candidate, candidate committee, political committee or party 83
120		-	committee; 84
121		-	(2) An expenditure made by a person for the production, 85
122		-	dissemination, distribution or publication, in whole or in substantial 86
123		-	part, of any broadcast or any written, graphic or other form of political 87
124		-	advertising or campaign communication prepared by (A) a candidate, 88
125		-	candidate committee, political committee or party committee, or (B) a 89
126		-	consultant or other agent acting on behalf of a candidate, candidate 90
127		-	committee, political committee or party committee; 91
128		-	(3) An expenditure made by a person based on information about a 92
129		-	candidate's, political committee's, or party committee's plans, projects 93
130		-	or needs, provided by (A) a candidate, candidate committee, political 94
131		-	committee or party committee, or (B) a consultant or other agent acting 95
132		-	on behalf of a candidate, candidate committee, political committee or 96
133		-	party committee, with the intent that such expenditure be made; 97
134		-	(4) An expenditure made by an individual who [, in the same] 98
135		-	during an election cycle [,] is serving or has served in such election 99
136		-	cycle (A) as the campaign chairperson, treasurer or deputy treasurer of 100
137		-	a candidate committee, political committee or party committee 101
138		-	benefiting from such expenditure, or (B) in any other executive or 102
139		-	policymaking position, including as a member, employee, fundraiser, 103
140		-	consultant or other agent, of a candidate, candidate committee, 104
141		-	political committee or party committee; 105
142		-	(5) An expenditure made by a person or an entity on or after 106
143		-	January first in the year of an election in which a candidate is seeking 107
144		-	public office that benefits such candidate when such person or entity 108
145		-	has hired an individual as an employee or consultant and such 109
146		-	individual was an employee of or consultant to such candidate, such 110
147		-	candidate's candidate committee or such candidate's opponent's 111
148		-	candidate committee during [any part of the eighteen-month period 112
149		-	preceding such expenditure] an election cycle or the immediately 113 Substitute Bill No. 914
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	116	+
	117	+	that the following expenditures are not independent expenditures: 78
	118	+	(1) An expenditure made by a person [in cooperation, consultation 79
	119	+	or in concert with, at the request, suggestion or direction of, or] 80
	120	+	pursuant to a general or [particular] tacit understanding with (A) a 81
	121	+	candidate, candidate committee, political committee or party 82
	122	+	committee, or (B) a consultant or other agent acting on behalf of a 83
	123	+	candidate, candidate committee, political committee or party 84
	124	+	committee; 85
	125	+	(2) An expenditure made by a person for the production, 86
	126	+	dissemination, distribution or publication, in whole or in substantial 87
	127	+	part, of any broadcast or any written, graphic or other form of political 88
	128	+	advertising or campaign communication prepared by (A) a candidate, 89
	129	+	candidate committee, political committee or party committee, or (B) a 90
	130	+	consultant or other agent acting on behalf of a candidate, candidate 91
	131	+	committee, political committee or party committee; 92
	132	+	(3) An expenditure made by a person based on information about a 93
	133	+	candidate's, political committee's, or party committee's plans, projects 94
	134	+	or needs, provided by (A) a candidate, candidate committee, political 95
	135	+	committee or party committee, or (B) a consultant or other agent acting 96
	136	+	on behalf of a candidate, candidate committee, political committee or 97
	137	+	party committee, with the intent that such expenditure be made; 98
	138	+	(4) An expenditure made by an individual who [, in the same] 99
	139	+	during an election cycle [,] is serving or has served in such election 100
	140	+	cycle (A) as the campaign chairperson, treasurer or deputy treasurer of 101
	141	+	a candidate committee, political committee or party committee 102
	142	+	benefiting from such expenditure, or (B) in any other executive or 103
	143	+	policymaking position, including as a member, employee, fundraiser, 104
	144	+	consultant or other agent, of a candidate, candidate committee, 105
	145	+	political committee or party committee; 106
	146	+	(5) An expenditure made by a person or an entity on or after 107
	147	+	January first in the year of an election in which a candidate is seeking 108
	148	+	public office that benefits such candidate when such person or entity 109 Raised Bill No. 914
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156		-	preceding election cycle; 114
157		-	(6) An expenditure made by a person for fundraising activities (A) 115
158		-	for a candidate, candidate committee, political committee or party 116
159		-	committee, or a consultant or other agent acting on behalf of a 117
160		-	candidate, candidate committee, political committee or party 118
161		-	committee, or (B) for the solicitation or receipt of contributions on 119
162		-	behalf of a candidate, candidate committee, political committee or 120
163		-	party committee, or a consultant or other agent acting on behalf of a 121
164		-	candidate, candidate committee, political committee or party 122
165		-	committee; 123
166		-	(7) An expenditure made by a person based on information about a 124
167		-	candidate's campaign plans, projects or needs, that is directly or 125
168		-	indirectly provided by a candidate, the candidate's candidate 126
169		-	committee, a political committee or a party committee, or a consultant 127
170		-	or other agent acting on behalf of such candidate, candidate 128
171		-	committee, political committee or party committee, to the person 129
172		-	making the expenditure or such person's agent, with an express or tacit 130
173		-	understanding that such person is considering making the 131
174		-	expenditure; 132
175		-	(8) An expenditure made by a person for a communication that 133
176		-	clearly identifies a candidate during an election campaign, if the 134
177		-	person making the expenditure, or such person's agent, has informed 135
178		-	the candidate who benefits from the expenditure, [that] such 136
179		-	candidate's candidate committee, a political committee or a party 137
180		-	committee, or a consultant or other agent acting on behalf of the 138
181		-	benefiting candidate or candidate committee, political committee, or 139
182		-	party committee, concerning the communication's contents, or of the 140
183		-	intended audience, timing, location or mode or frequency of 141
184		-	dissemination. [As used in] For the purposes of this subdivision, a 142
185		-	communication clearly identifies a candidate when that 143
186		-	communication contains the name, nickname, initials, photograph or 144
187		-	drawing of the candidate or an unambiguous reference to [that] such 145
188		-	candidate, which includes, but is not limited to, a reference that can 146 Substitute Bill No. 914
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	153	+
	154	+	has hired an individual as an employee or consultant and such 110
	155	+	individual was an employee of or consultant to such candidate, such 111
	156	+	candidate's candidate committee or such candidate's opponent's 112
	157	+	candidate committee during [any part of the eighteen-month period 113
	158	+	preceding such expenditure] an election cycle or the immediately 114
	159	+	preceding election cycle; 115
	160	+	(6) An expenditure made by a person for fundraising activities (A) 116
	161	+	for a candidate, candidate committee, political committee or party 117
	162	+	committee, or a consultant or other agent acting on behalf of a 118
	163	+	candidate, candidate committee, political committee or party 119
	164	+	committee, or (B) for the solicitation or receipt of contributions on 120
	165	+	behalf of a candidate, candidate committee, political committee or 121
	166	+	party committee, or a consultant or other agent acting on behalf of a 122
	167	+	candidate, candidate committee, political committee or party 123
	168	+	committee; 124
	169	+	(7) An expenditure made by a person based on information about a 125
	170	+	candidate's campaign plans, projects or needs, that is directly or 126
	171	+	indirectly provided by a candidate, the candidate's candidate 127
	172	+	committee, a political committee or a party committee, or a consultant 128
	173	+	or other agent acting on behalf of such candidate, candidate 129
	174	+	committee, political committee or party committee, to the person 130
	175	+	making the expenditure or such person's agent, with an express or tacit 131
	176	+	understanding that such person is considering making the 132
	177	+	expenditure; 133
	178	+	(8) An expenditure made by a person for a communication that 134
	179	+	clearly identifies a candidate during an election campaign, if the 135
	180	+	person making the expenditure, or such person's agent, has informed 136
	181	+	the candidate who benefits from the expenditure, [that] such 137
	182	+	candidate's candidate committee, a political committee or a party 138
	183	+	committee, or a consultant or other agent acting on behalf of the 139
	184	+	benefiting candidate or candidate committee, political committee, or 140
	185	+	party committee, concerning the communication's contents, or of the 141
	186	+	intended audience, timing, location or mode or frequency of 142 Raised Bill No. 914
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195		-	only mean [that] such candidate; [and] 147
196		-	(9) An expenditure made by a person or an entity for consultant or 148
197		-	creative services, including, but not limited to, services related to 149
198		-	communications strategy or design or campaign strategy or to engage 150
199		-	a campaign-related vendor, to be used to promote or oppose a 151
200		-	candidate's election to office if the provider of such services is 152
201		-	providing or has provided consultant or creative services to such 153
202		-	candidate, such candidate's candidate committee or an agent of such 154
203		-	candidate committee, or to any opposing candidate's candidate 155
204		-	committee or an agent of such opposing candidate's candidate 156
205		-	committee after January first of the year in which the expenditure 157
206		-	occurs. For the purposes of this subdivision, [communications strategy 158
207		-	or design] "communications strategy or design" does not include the 159
208		-	costs of printing or costs for the use of a medium for the purpose of 160
209		-	communications. For the purposes of this subdivision, [campaign-161
210		-	related vendor] "campaign-related vendor" includes, but is not limited 162
211		-	to, a vendor that provides any of the following services: Polling, mail 163
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	191	+
	192	+	dissemination. [As used in] For the purposes of this subdivision, a 143
	193	+	communication clearly identifies a candidate when that 144
	194	+	communication contains the name, nickname, initials, photograph or 145
	195	+	drawing of the candidate or an unambiguous reference to [that] such 146
	196	+	candidate, which includes, but is not limited to, a reference that can 147
	197	+	only mean [that] such candidate; [and] 148
	198	+	(9) An expenditure made by a person or an entity for consultant or 149
	199	+	creative services, including, but not limited to, services related to 150
	200	+	communications strategy or design or campaign strategy or to engage 151
	201	+	a campaign-related vendor, to be used to promote or oppose a 152
	202	+	candidate's election to office if the provider of such services is 153
	203	+	providing or has provided consultant or creative services to such 154
	204	+	candidate, such candidate's candidate committee or an agent of such 155
	205	+	candidate committee, or to any opposing candidate's candidate 156
	206	+	committee or an agent of such opposing candidate's candidate 157
	207	+	committee after January first of the year in which the expenditure 158
	208	+	occurs. For the purposes of this subdivision, communications strategy 159
	209	+	or design does not include the costs of printing or costs for the use of a 160
	210	+	medium for the purpose of communications. For the purposes of this 161
	211	+	subdivision, campaign-related vendor includes, but is not limited to, a 162
	212	+	vendor that provides any of the following services: Polling, mail 163
212	213		design, mail strategy, political strategy, general campaign advice or 164
213		-	telephone banking; [.] ~~and~~ 165
	214	+	telephone banking; [.] 165
214	215		(10) An expenditure made by any person directly or indirectly 166
215	216		formed, controlled or established in an election cycle or the 167
216	217		immediately preceding election cycle by, at the request or suggestion 168
217	218		of, or with the encouragement of, another person deemed to be a 169
218	219		coordinated spender, or any agent of such coordinated spender, 170
219	220		including with the express or tacit approval of any such coordinated 171
220	221		spender or agent. 172
221	222		[(c) When the State Elections Enforcement Commission evaluates an 173
222	223		expenditure to determine whether an expenditure by entity is an 174
223		-	independent expenditure, the following shall not be presumed to 175
	224	+	independent expenditure, the following shall not be presumed to 175 Raised Bill No. 914
	225	+
	226	+
	227	+
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224	230		constitute evidence of consent, coordination or consultation within the 176
225	231		meaning of subsection (a) of this section: (1) Participation by a 177
226	232		candidate or an agent of the candidate in an event sponsored by the 178
227		-	entity, unless such event promotes the success of the candidate's 179 Substitute Bill No. 914
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	233	+	entity, unless such event promotes the success of the candidate's 179
234	234		candidacy or the defeat of the candidate's opponent, or unless the 180
235	235		event is during the period that is forty-five days prior to the primary 181
236	236		for which the candidate is seeking nomination for election or election 182
237	237		to office; (2) membership of the candidate or agent of the candidate in 183
238	238		the entity, unless the candidate or agent of the candidate holds an 184
239	239		executive or policymaking position within the entity after the 185
240	240		candidate becomes a candidate; or (3) financial support for, or 186
241	241		solicitation or fundraising on behalf of the entity by a candidate or an 187
242	242		agent of the candidate, unless the entity has made or obligated to make 188
243	243		independent expenditures in support of such candidate in the election 189
244	244		or primary for which the candidate is a candidate.] 190
245	245		[(d)] (f) When the State Elections Enforcement Commission 191
246	246		evaluates an expenditure to determine whether such expenditure is an 192
247	247		independent expenditure, the commission shall consider, as an 193
248	248		effective rebuttal to the presumptions provided in subsection [(b)] (e) 194
249	249		of this section, the establishment by the person making the 195
250	250		expenditure of a firewall policy designed and implemented to prohibit 196
251	251		the flow of information between (1) employees, consultants or other 197
252	252		individuals providing services to the person paying for the 198
253	253		expenditure, and (2) the candidate or agents of the candidate. 199
254	254		This act shall take effect as follows and shall amend the following
255	255		sections:
256	256
257	257		Section 1 January 1, 2020 9-601c
258	258
259		-	Statement of Legislative Commissioners:
260		-	In Subsec. (b)(3), "of the candidate" was deleted to avoid repetition
261		-	with Subdivs. (4) and (5) of said subsection; and in Subsec. (e)(9),
262		-	"communications strategy or design" was changed to
263		-	"[communications strategy or design] "communications strategy or
264		-	design"" and "campaign-related vendor" was changed to "[campaign-
265		-	related vendor] "campaign-related vendor"" for consistency.
266		-
267		-	GAE Joint Favorable Subst. -LCO
	259	+	Statement of Purpose:
	260	+	To create bright lines between coordinated and independent spending.
	261	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	262	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	263	+	not underlined.]
268	264