LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663-R01- HB.docx 1 of 14 General Assembly Substitute Bill No. 6663 January Session, 2021 AN ACT REVISING CERTAIN CAMPAIGN FINANCE STATUTES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 9-611 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2021): 2 (a) No individual shall make a contribution or contributions to, for 3 the benefit of, or pursuant to the authorization or request of, a candidate 4 or a committee supporting or opposing any candidate's campaign for 5 nomination at a primary, or any candidate's campaign for election, to 6 the office of (1) Governor, in excess of three thousand five hundred 7 dollars; (2) Lieutenant Governor, Secretary of the State, Treasurer, 8 Comptroller or Attorney General, in excess of two thousand dollars; (3) 9 chief executive officer of a town, city or borough, in excess of one 10 thousand dollars; (4) state senator or probate judge, in excess of one 11 thousand dollars; or (5) state representative or any other office of a 12 municipality not previously included in this subsection, in excess of two 13 hundred fifty dollars. The limits imposed by this subsection shall be 14 applied separately to primaries and elections. 15 (b) (1) No individual shall make a contribution or contributions to, or 16 for the benefit of, an exploratory committee, in excess of three hundred 17 seventy-five dollars, if the candidate establishing the exploratory 18 committee certifies on the statement of organization for the exploratory 19 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 2 of 14 committee pursuant to subsection (c) of section 9-604 that the candidate 20 will not be a candidate for the office of state representative. No 21 individual shall make a contribution or contributions to, or for the 22 benefit of, any exploratory committee, in excess of two hundred fifty 23 dollars, if the candidate establishing the exploratory committee does not 24 so certify. 25 (2) No individual shall make a contribution or contributions to, or for 26 the benefit of, a political committee formed by a slate of candidates in a 27 primary for the office of justice of the peace, in excess of two hundred 28 fifty dollars. 29 [(c) No individual shall make contributions to such candidates or 30 committees which in the aggregate exceed thirty thousand dollars for 31 any single election and primary preliminary to such election.] 32 [(d)] (c) No individual shall make a contribution to any candidate or 33 committee, other than a contribution in kind, in excess of one hundred 34 dollars except by personal check or credit card of that individual. 35 [(e)] (d) No individual who is less than eighteen years of age shall 36 make a contribution or contributions, in excess of thirty dollars to, for 37 the benefit of, or pursuant to the authorization or request of: (1) A 38 candidate or a committee supporting or opposing any candidate's 39 campaign for nomination at a primary to any office; (2) a candidate or a 40 committee supporting or opposing any candidate's campaign for 41 election to any office; (3) an exploratory committee; (4) any other 42 political committee in any calendar year; or (5) a party committee in any 43 calendar year. Notwithstanding any provision of subdivision (2) of 44 section 9-7b, any individual who is less than eighteen years of age who 45 violates any provision of this subsection shall not be subject to the 46 provisions of subdivision (2) of section 9-7b. 47 Sec. 2. Section 9-601 of the general statutes is amended by adding 48 subdivision (32) as follows (Effective October 1, 2021): 49 (NEW) (32) "Independent expenditure political committee" means a 50 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 3 of 14 political committee that makes only (A) independent expenditures, and 51 (B) contributions to other independent expenditure political 52 committees. 53 Sec. 3. Subdivision (3) of section 9-601 of the general statutes is 54 repealed and the following is substituted in lieu thereof (Effective October 55 1, 2021): 56 (3) "Political committee" means (A) a committee organized by a 57 business entity or organization, (B) persons other than individuals, or 58 two or more individuals organized or acting jointly conducting their 59 activities in or outside the state, (C) an exploratory committee, (D) a 60 committee established by or on behalf of a slate of candidates in a 61 primary for the office of justice of the peace, but does not mean a 62 candidate committee or a party committee, (E) a legislative caucus 63 committee, [or] (F) a legislative leadership committee, or (G) an 64 independent expenditure political committee. 65 Sec. 4. Subdivision (1) of subsection (g) of section 9-607 of the general 66 statutes is repealed and the following is substituted in lieu thereof 67 (Effective October 1, 2021): 68 (g) (1) As used in this subsection, (A) "the lawful purposes of the 69 committee" means: (i) For a candidate committee or exploratory 70 committee, the promoting of the nomination or election of the candidate 71 who established the committee, except that after a political party 72 nominates candidates for election to the offices of Governor and 73 Lieutenant Governor, whose names shall be so placed on the ballot in 74 the election that an elector will cast a single vote for both candidates, as 75 prescribed in section 9-181, a candidate committee established by either 76 such candidate may also promote the election of the other such 77 candidate; (ii) for a political committee, other than an independent 78 expenditure political committee described in subparagraph (A)(iv) of 79 this subdivision, the promoting of (I) a political party, including party 80 building activities, (II) the success or defeat of candidates for 81 nomination [and] or election to public office or position subject to the 82 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 4 of 14 requirements of this chapter, or (III) the success or defeat of referendum 83 questions, provided a political committee formed for a single 84 referendum question shall not promote the success or defeat of any 85 candidate, and provided further a legislative leadership committee or a 86 legislative caucus committee may expend funds to defray costs for 87 conducting legislative or constituency-related business which are not 88 reimbursed or paid by the state; [and] (iii) for a party committee, the 89 promoting of the party, party building activities, the candidates of the 90 party and continuing operating costs of the party; and (iv) for an 91 independent expenditure political committee, the promoting of (I) a 92 political party, (II) the success or defeat of candidates for nomination or 93 election to public office or position subject to the requirements of this 94 chapter, or (III) the success or defeat of referendum questions, provided 95 an independent expenditure political committee shall act entirely 96 independently of a candidate, candidate committee, party committee or 97 political committee that is not an independent expenditure political 98 committee, or any agent of such candidate or committee, and (B) 99 "immediate family" means a spouse or dependent child of a candidate 100 who resides in the candidate's household. 101 Sec. 5. Subparagraph (C) of subdivision (1) of subsection (e) of section 102 9-608 of the general statutes is repealed and the following is substituted 103 in lieu thereof (Effective October 1, 2021): 104 (C) (i) Each political committee formed solely to aid or promote the 105 success or defeat of any referendum question, which does not receive 106 contributions from a business entity or an organization, shall distribute 107 its surplus to a party committee, to a political committee organized for 108 ongoing political activities, to a national committee of a political party, 109 to all contributors to the committee on a prorated basis of contribution, 110 to state or municipal governments or agencies or to any organization 111 which is a tax-exempt organization under Section 501(c)(3) of the 112 Internal Revenue Code of 1986, or any subsequent corresponding 113 internal revenue code of the United States, as from time to time 114 amended. 115 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 5 of 14 (ii) Each political committee formed solely to aid or promote the 116 success or defeat of any referendum question, which receives 117 contributions from a business entity or an organization, and each 118 independent expenditure political committee other than an 119 independent expenditure political committee formed for ongoing 120 political activities, shall distribute its surplus to all contributors to the 121 committee on a prorated basis of contribution, to state or municipal 122 governments or agencies, or to any organization which is tax-exempt 123 under said provisions of the Internal Revenue Code. 124 (iii) Notwithstanding the provisions of this subsection, a committee 125 formed for a single referendum shall not be required to expend its 126 surplus not later than ninety days after the referendum and may 127 continue in existence if a substantially similar referendum question on 128 the same issue will be submitted to the electorate within six months after 129 the first referendum. If two or more substantially similar referenda on 130 the same issue are submitted to the electorate, each no more than six 131 months apart, the committee shall expend such surplus within ninety 132 days following the date of the last such referendum; 133 Sec. 6. Subsections (a) and (b) of section 9-612 of the general statutes 134 are repealed and the following is substituted in lieu thereof (Effective 135 October 1, 2021): 136 (a) (1) No individual shall make a contribution or contributions in any 137 one calendar year in excess of ten thousand dollars to the state central 138 committee of any party, or for the benefit of such committee pursuant 139 to its authorization or request; or two thousand dollars to a town 140 committee of any political party, or for the benefit of such committee 141 pursuant to its authorization or request; or two thousand dollars to a 142 legislative caucus committee or legislative leadership committee; [,] or 143 one thousand dollars to any other political committee other than [(1)] 144 (A) a political committee formed solely to aid or promote the success or 145 defeat of a referendum question, [(2)] (B) an exploratory committee, [(3)] 146 (C) a political committee established by an organization, or for the 147 benefit of such committee pursuant to its authorization or request, [or 148 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 6 of 14 (4)] (D) a political committee formed by a slate of candidates in a 149 primary for the office of justice of the peace of the same town, or (E) an 150 independent expenditure political committee. 151 (2) Notwithstanding the provisions of subdivision (1) of this 152 subsection and unless otherwise restricted or prohibited by law, an 153 individual may make contributions to an independent expenditure 154 political committee. 155 (b) (1) No individual shall make a contribution to a political 156 committee established by an organization which receives its funds from 157 the organization's treasury. With respect to a political committee 158 established by an organization which has complied with the provisions 159 of subsection (b) or (c) of section 9-614, as amended by this act, and has 160 elected to receive contributions, no individual other than a member of 161 the organization may make contributions to the committee, in which 162 case the individual may contribute not more than seven hundred fifty 163 dollars in any one calendar year to such committee or for the benefit of 164 such committee pursuant to its authorization or request. 165 (2) Notwithstanding the provisions of subdivision (1) of this 166 subsection and unless otherwise restricted or prohibited by law, an 167 individual may make contributions to an independent expenditure 168 political committee established by an organization. 169 Sec. 7. Section 9-613 of the general statutes is repealed and the 170 following is substituted in lieu thereof (Effective October 1, 2021): 171 (a) [No] A business entity shall not make any contributions or 172 expenditures (1) to, or for the benefit of, any candidate's campaign (A) 173 for election to any public office or position subject to this chapter, or (B) 174 for nomination at a primary for any such office or position, or (2) to 175 promote the defeat of any candidate for any such office or position. [No] 176 A business entity shall not make any other contributions or 177 expenditures to promote the success or defeat of any political party. [, 178 except as provided in subsection (b) of this section. No] A business 179 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 7 of 14 entity shall not establish more than one political committee. A political 180 committee shall be deemed to have been established by a business entity 181 if the initial disbursement or contribution to the committee is made 182 under subsection (b) of this section or by an officer, director, owner, 183 limited or general partner or holder of stock constituting five per cent or 184 more of the total outstanding stock of any class of the business entity. 185 (b) A business entity may make reasonable and necessary transfers or 186 disbursements to or for the benefit of a political committee established 187 by such business entity, for the administration of, or solicitation of 188 contributions to, such political committee. Nonmonetary contributions 189 by a business entity which are incidental in nature and are directly 190 attributable to the administration of such political committee shall be 191 exempt from the reporting requirements of this chapter. 192 (c) The provisions of this section shall not preclude a business entity 193 from making contributions or expenditures to promote the success or 194 defeat of a referendum question. 195 (d) A political committee organized by a business entity shall not 196 make a contribution or contributions to or for the benefit of any 197 candidate's campaign for nomination at a primary or any candidate's 198 campaign for election to the office of: (1) Governor, in excess of five 199 thousand dollars; (2) Lieutenant Governor, Secretary of the State, 200 Treasurer, Comptroller or Attorney General, in excess of three thousand 201 dollars; (3) state senator, probate judge or chief executive officer of a 202 town, city or borough, in excess of one thousand five hundred dollars; 203 (4) state representative, in excess of seven hundred fifty dollars; or (5) 204 any other office of a municipality not included in subdivision (3) of this 205 subsection, in excess of three hundred seventy-five dollars. The limits 206 imposed by this subsection shall apply separately to primaries and 207 elections and contributions by any such committee to candidates 208 designated in this subsection shall not exceed one hundred thousand 209 dollars in the aggregate for any single election and primary preliminary 210 thereto. Contributions to such committees shall also be subject to the 211 provisions of section 9-618, as amended by this act, in the case of 212 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 8 of 14 committees formed for ongoing political activity or section 9-619, as 213 amended by this act, in the case of committees formed for a single 214 election or primary. 215 (e) [No] A political committee organized by a business entity shall 216 not make a contribution or contributions to (1) a state central committee 217 of a political party, in excess of seven thousand five hundred dollars in 218 any calendar year, (2) a town committee of any political party, in excess 219 of one thousand five hundred dollars in any calendar year, (3) an 220 exploratory committee in excess of three hundred seventy-five dollars, 221 or (4) any other kind of political committee, in excess of two thousand 222 dollars in any calendar year. 223 (f) As used in this subsection, "investment services" means 224 investment legal services, investment banking services, investment 225 advisory services, underwriting services, financial advisory services or 226 brokerage firm services. [No] A political committee established by a 227 firm which provides investment services and to which the State 228 Treasurer pays compensation, expenses or fees or issues a contract shall 229 not make a contribution to, or solicit contributions on behalf of, an 230 exploratory committee or candidate committee established by a 231 candidate for nomination or election to the office of State Treasurer 232 during the term of office of the State Treasurer who does business with 233 such firm. 234 (g) Notwithstanding the provisions of [this section, a corporation, 235 cooperative association, limited partnership, professional association, 236 limited liability company or limited liability partnership, whether 237 formed in this state or any other, acting alone,] subsections (a) to (f), 238 inclusive, of this section, (1) a business entity may make independent 239 expenditures, and (2) an independent expenditure political committee 240 organized by a business entity shall not make any contribution unless 241 such contribution is to another independent expenditure political 242 committee. 243 Sec. 8. Section 9-614 of the general statutes is repealed and the 244 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 9 of 14 following is substituted in lieu thereof (Effective October 1, 2021): 245 An organization may make contributions or expenditures, other than 246 [those made to promote] for the purposes of promoting the success or 247 defeat of a referendum question, only by first forming its own political 248 committee. [The] Unless such political committee is an independent 249 expenditure political committee, the political committee shall then be 250 authorized to (1) receive funds (A) exclusively from the organization's 251 treasury or from voluntary contributions made by its members, but not 252 both, (B) from another political committee, or [,] (C) from a candidate 253 committee distributing a surplus, and [(1) to] (2) make (A) contributions 254 or expenditures to, or for the benefit of, a candidate's campaign or a 255 political party, or [(2) to make] (B) contributions to another political 256 committee. [No] An organization shall not form more than one political 257 committee. A political committee shall be deemed to have been 258 established by an organization if the initial contribution to the 259 committee is made by the organization's treasury or an officer or 260 director of the organization. 261 (b) A political committee established by an organization may elect to 262 alter the manner in which it is funded if it complies with the 263 requirements of this subsection. The committee chairperson shall notify 264 the repository with which the committee's most recent statement of 265 organization is filed, in writing, of the committee's intent to alter its 266 manner of funding. [Within] Not later than fifteen days after the date of 267 receipt of such notification, the treasurer of such political committee 268 shall return any funds remaining in the account of the committee to the 269 organization's treasury after payment of each outstanding liability. 270 [Within] Not later than seven days after the distribution and payments 271 have been made, the treasurer shall file a statement with the same 272 repository itemizing each such distribution and payment. Upon such 273 filing, the treasurer may receive voluntary contributions from any 274 member of the organization which established such committee subject 275 to the limitations imposed in subsection (b) of section 9-612, as amended 276 by this act. 277 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 10 of 14 (c) The chairperson of each political committee established by an 278 organization on or after July 1, 1985, shall designate the manner in 279 which the committee shall be funded in the committee's statement of 280 organization. 281 (d) Notwithstanding the provisions of [this section, an organization, 282 acting alone,] subsections (a) to (c), inclusive, of this section, an 283 organization may make independent expenditures and contributions to 284 an independent expenditure political committee. 285 Sec. 9. Section 9-615 of the general statutes is repealed and the 286 following is substituted in lieu thereof (Effective October 1, 2021): 287 (a) [No] A political committee established by an organization shall 288 not make a contribution or contributions to, or for the benefit of, any 289 candidate's campaign for nomination at a primary or for election to the 290 office of: (1) Governor, in excess of five thousand dollars; (2) Lieutenant 291 Governor, Secretary of the State, Treasurer, Comptroller or Attorney 292 General, in excess of three thousand dollars; (3) chief executive officer 293 of a town, city or borough, in excess of one thousand five hundred 294 dollars; (4) state senator or probate judge, in excess of one thousand five 295 hundred dollars; (5) state representative, in excess of seven hundred 296 fifty dollars; or (6) any other office of a municipality not previously 297 included in this subsection, in excess of three hundred seventy-five 298 dollars. 299 (b) [No] Any such committee shall not make a contribution or 300 contributions to, or for the benefit of, an exploratory committee, in 301 excess of three hundred seventy-five dollars. Any such committee may 302 make unlimited contributions to a political committee formed solely to 303 aid or promote the success or defeat of a referendum question. 304 (c) The limits imposed by subsection (a) of this section shall apply 305 separately to primaries and elections and no such committee shall make 306 contributions to the candidates designated in this section which in the 307 aggregate exceed fifty thousand dollars for any single election and 308 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 11 of 14 primary preliminary thereto. 309 (d) [No] Except as provided in subsection (f) of this section, a political 310 committee established by an organization shall not make contributions 311 in any one calendar year to, or for the benefit of, (1) the state central 312 committee of a political party, in excess of seven thousand five hundred 313 dollars; (2) a town committee, in excess of one thousand five hundred 314 dollars; or (3) any political committee, other than an exploratory 315 committee or a committee formed solely to aid or promote the success 316 or defeat of a referendum question, in excess of two thousand dollars. 317 (e) Contributions to a political committee established by an 318 organization for the purpose of making contributions shall be subject to 319 the provisions of section 9-618, as amended by this act, in the case of a 320 committee formed for ongoing political activity or section 9-619, as 321 amended by this act, in the case of a committee formed for a single 322 election or primary. 323 (f) An independent expenditure political committee established by an 324 organization shall not make any contribution unless such contribution 325 is to another independent expenditure political committee. 326 Sec. 10. Subsection (a) of section 9-618 of the general statutes is 327 repealed and the following is substituted in lieu thereof (Effective October 328 1, 2021): 329 (a) (1) A political committee organized for ongoing political activities 330 may make unlimited contributions to, or for the benefit of, any national 331 committee of a political party [;] or a committee of a candidate for 332 federal or out-of-state office. Except as provided in subdivision (3) of 333 subsection (d) of this section, no such political committee shall make a 334 contribution or contributions in excess of two thousand dollars to 335 another political committee in any calendar year. No political committee 336 organized for ongoing political activities shall make a contribution in 337 excess of three hundred seventy-five dollars to an exploratory 338 committee. If such an ongoing committee is established by an 339 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 12 of 14 organization or a business entity, its contributions shall be subject to the 340 limits imposed by sections 9-613 to 9-615, inclusive, as amended by this 341 act. A political committee organized for ongoing political activities may 342 make [contributions] donations to a charitable organization which is a 343 tax-exempt organization under Section 501(c)(3) of the Internal Revenue 344 Code, as from time to time amended, or make memorial [contributions] 345 donations. 346 (2) An independent expenditure political committee organized for 347 ongoing political activities shall not make any contribution unless such 348 contribution is to another independent expenditure political committee. 349 Sec. 11. Subsection (a) of section 9-619 of the general statutes is 350 repealed and the following is substituted in lieu thereof (Effective October 351 1, 2021): 352 (a) (1) No political committee established for a single primary or 353 election shall make contributions to a national committee, or a 354 committee of a candidate for federal or out-of-state office. If such a 355 political committee is established by an organization or a business 356 entity, its contributions shall also be subject to the limitations imposed 357 by sections 9-613 to 9-615, inclusive, as amended by this act. Except as 358 provided in subdivision (2) of subsection (d) of this section, no political 359 committee formed for a single election or primary shall, with respect to 360 such election or primary make a contribution or contributions in excess 361 of two thousand dollars to another political committee, provided no 362 such political committee shall make a contribution in excess of three 363 hundred seventy-five dollars to an exploratory committee. 364 (2) An independent expenditure political committee established for a 365 single primary or election shall not make any contribution unless such 366 contribution is to another independent expenditure political committee. 367 Sec. 12. Section 9-620 of the general statutes is repealed and the 368 following is substituted in lieu thereof (Effective October 1, 2021): 369 (a) A political committee formed solely to aid or promote the success 370 Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 13 of 14 or defeat of a referendum question shall not make contributions to, or 371 for the benefit of, a party committee, a political committee, a national 372 committee, a committee of a candidate for federal or out-of-state office 373 or a candidate committee, except in the distribution of a surplus, as 374 provided in subsection (e) of section 9-608, as amended by this act. 375 (b) A political committee formed solely to aid or promote the success 376 or defeat of a referendum question shall not receive contributions from 377 a national committee or from a committee of a candidate for federal or 378 out-of-state office. 379 (c) [No] A person, other than an individual or a committee, shall not 380 make a contribution to a political committee formed solely to aid or 381 promote the success or defeat of a referendum question, or to any other 382 person, to aid or promote the success or defeat of a referendum question, 383 in excess of ten cents for each individual residing in the state or political 384 subdivision thereof in which such referendum question is to be voted 385 upon, in accordance with the last federal decennial census. 386 (d) Notwithstanding the provisions of subsections (a) to (c), inclusive, 387 of this section, an independent expenditure political committee formed 388 solely to aid or promote the success or defeat of a referendum question 389 shall not make any contribution unless such contribution is made to 390 another independent expenditure political committee. Unless otherwise 391 restricted or prohibited by law, an independent expenditure political 392 committee formed solely to aid or promote the success or defeat of a 393 referendum question may accept contributions from an entity. 394 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2021 9-611 Sec. 2 October 1, 2021 9-601 Sec. 3 October 1, 2021 9-601(3) Sec. 4 October 1, 2021 9-607(g)(1) Sec. 5 October 1, 2021 9-608(e)(1)(C) Sec. 6 October 1, 2021 9-612(a) and (b) Substitute Bill No. 6663 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06663- R01-HB.docx } 14 of 14 Sec. 7 October 1, 2021 9-613 Sec. 8 October 1, 2021 9-614 Sec. 9 October 1, 2021 9-615 Sec. 10 October 1, 2021 9-618(a) Sec. 11 October 1, 2021 9-619(a) Sec. 12 October 1, 2021 9-620 Statement of Legislative Commissioners: In Section 7(a), (d) and (e), "Except as provided in subsection (g) of this section" was deleted for clarity because the existing notwithstanding provision at Subsec. (g) makes such deleted language unnecessary; and in Section 7(g), the language was restructured for accuracy and clarity. GAE Joint Favorable Subst. -LCO