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OLR Bill Analysis
sHB 6663
AN ACT REVISING CERTAIN CAMPAIGN FINANCE STATUTES.
SUMMARY
This bill modifies campaign finance laws by (1) eliminating
aggregate individual contribution limits to certain committees and (2)
codifying “independent expenditure political committees” (known as
an IE-only PACs) as a type of PAC and requiring their registration
with the State Elections Enforcement Commission (SEEC).
The bill also makes several conforming and technical changes.
EFFECTIVE DATE: October 1, 2021
§ 1 — AGGREGATE CONTRIBUTI ON LIMIT FOR INDIVIDUALS
State law generally limits the amount that individuals may
contribute to a specific candidate committee, party committee, or
political committee. Additionally, current law prohibits an individual
from contributing more than $30,000 in the aggregate during a single
primary and election to (1) candidate committees, (2) exploratory
committees, and (3) slate committee for justice of the peace (in a
primary).
The bill removes this limit, thus allowing individuals to make
unlimited aggregate contributions to these committees (see
BACKGROUND).
§§ 2-12 — IE-ONLY PACS
Existing law authorizes persons (including individuals, entities, and
committees) to make unlimited IEs (CGS § 9-601d). The bill codifies IE-
only PACs as a type of PAC under Connecticut's campaign finance
laws and, like other committees that make IEs, requires their
registration with SEEC and subjects them to disclosure requirements. It
defines them as PACs that make only (1) IEs and (2) contributions to 2021HB-06663-R000480-BA.DOCX
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other IE-only PACs. By law, an IE is an expenditure made without the
consent, coordination, or consultation of a (1) candidate or candidate's
agent, (2) candidate committee, (3) PAC, or (4) party committee (CGS §
9-601c).
The bill makes several conforming changes, including specifying
that (1) individuals and labor unions may make contributions to IE-
only PACs and (2) various types of IE-only PACs, such as those
formed for a single election or primary, are prohibited from making
contributions, other than to other IE-only PACs (see BACKGROUND).
Lawful Purposes (§ 4)
By law, committees, including PACs, may pay specific expenses,
such as for advertising or office supplies, to accomplish their lawful
purposes. The bill defines “lawful purposes of the committee” for IE-
only PACs as promoting the following:
1. a political party,
2. the success or defeat of candidates for nomination or election to
a public office or position regulated by state campaign finance
laws, or
3. the success or defeat of referendum questions.
It requires that, in accomplishing their lawful purposes, these
committees act entirely independently of any candidate, candidate
committee, party committee, PAC (other than an IE-only PAC), or
agent of such a candidate or committee.
Surplus Distributions (§ 5)
By law, candidate committees and PACs, other than exploratory
committees or PACs organized for ongoing political activities, must
generally spend or distribute surplus funds within 90 days after (1) a
primary when a candidate loses or (2) March 31 following an election
or referendum held in November (CGS § 9-608(e)(1)).
The bill establishes a surplus distribution procedure for IE-only 2021HB-06663-R000480-BA.DOCX
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PACs, other than those formed for ongoing activities. Specifically, it
requires them to distribute surplus funds according to the schedule
outlined above to (1) their contributors, on a prorated basis; (2) state or
municipal governments or agencies; or (3) tax-exempt organizations.
BACKGROUND
Aggregate Contribution Limits
In McCutcheon et al. v. Federal Election Commission, 134 S. Ct. 1434
(2014), the U.S. Supreme Court held that aggregate limits on
contributions by individuals to federal candidates, political parties,
and PACs were unconstitutional under the First Amendment.
In Advisory Opinion 2014-03, SEEC announced that, unless it
received further guidance from the legislature or a court of competent
jurisdiction, it would no longer enforce current law's $30,000 aggregate
limit on contributions by individuals during a single primary and
election to (1) candidate committees, (2) exploratory committees, and
(3) slate committees for justice of the peace (in a primary).
IE-Only PACs
In Declaratory Ruling 2013-02, SEEC ruled that, in light of a line of
cases ruling that contribution limits to IE-Only PACs are
unconstitutional, it would no longer enforce contribution limits to
PACs that receive and spend funds only for IEs unless it received
further guidance from the legislature or a court. Currently, these PACs
may register with the commission using SEEC Form 8 and report
contributions and expenditures using SEEC Form 40.
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable
Yea 18 Nay 0 (03/29/2021)