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General Assembly Raised Bill No. 1078
January Session, 2021
LCO No. 5630
Referred to Committee on GOVERNMENT ADMINISTRATION
AND ELECTIONS
Introduced by:
(GAE)
AN ACT CONCERNING CA MPAIGN FINANCE LAWS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (b) of section 9-601b of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective from 2
passage): 3
(b) The term "expenditure" does not mean: 4
(1) A loan of money, made in the ordinary course of business, by a 5
state or national bank; 6
(2) A communication made by any corporation, organization or 7
association solely to its members, owners, stockholders, executive or 8
administrative personnel, or their families; 9
(3) Nonpartisan voter registration and get-out-the-vote campaigns by 10
any corporation, organization or association aimed at its members, 11
owners, stockholders, executive or administrative personnel, or their 12
families; 13
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(4) Uncompensated services provided by individuals volunteering 14
their time on behalf of a party committee, political committee, slate 15
committee or candidate committee, including any services provided for 16
the benefit of nonparticipating and participating candidates under the 17
Citizens' Election Program and any unreimbursed travel expenses made 18
by an individual who volunteers the individual's personal services to 19
any such committee. For purposes of this subdivision, an individual is 20
a volunteer if such individual is not receiving compensation for such 21
services regardless of whether such individual received compensation 22
in the past or may receive compensation for similar services that may be 23
performed in the future; 24
(5) Any news story, commentary or editorial distributed through the 25
facilities of any broadcasting station, newspaper, magazine or other 26
periodical, unless such facilities are owned or controlled by any political 27
party, committee or candidate; 28
(6) The use of real or personal property, a portion or all of the cost of 29
invitations and the cost of food or beverages, voluntarily provided by 30
an individual to a candidate, including a nonparticipating or 31
participating candidate under the Citizens' Election Program, or to a 32
party, political or slate committee, in rendering voluntary personal 33
services at the individual's residential premises or a community room 34
in the individual's residence facility, to the extent that the cumulative 35
value of the invitations, food or beverages provided by an individual on 36
behalf of any candidate or committee does not exceed four hundred 37
dollars with respect to any single event or does not exceed eight 38
hundred dollars for any such event hosted by two or more individuals, 39
provided at least one such individual owns or resides at the residential 40
premises, and further provided the cumulative value of the invitations, 41
food or beverages provided by an individual on behalf of any such 42
candidate or committee does not exceed eight hundred dollars with 43
respect to a calendar year or single election, as the case may be; 44
(7) A communication described in subdivision (2) of subsection (a) of 45
this section that includes speech or expression made (A) prior to the 46
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ninety-day period preceding the date of a primary or an election at 47
which the clearly identified candidate or candidates are seeking 48
nomination to public office or position, that is made for the purpose of 49
influencing any legislative or administrative action, as defined in section 50
1-91, or executive action, or (B) during a legislative session for the 51
purpose of influencing legislative action; 52
(8) An organization expenditure by a party committee, legislative 53
caucus committee or legislative leadership committee; 54
(9) A commercial advertisement that refers to an owner, director or 55
officer of a business entity who is also a candidate and that had 56
previously been broadcast or appeared when the owner, director or 57
officer was not a candidate; 58
(10) A communication containing an endorsement on behalf of a 59
candidate for nomination or election to the office of Governor, 60
Lieutenant Governor, Secretary of the State, State Treasurer, State 61
Comptroller, Attorney General, state senator or state representative, 62
from a candidate for the office of Governor, Lieutenant Governor, 63
Secretary of the State, State Treasurer, State Comptroller, Attorney 64
General, state senator or state representative, shall not be an 65
expenditure attributable to the endorsing candidate, if the candidate 66
making the endorsement is unopposed at the time of the 67
communication; 68
(11) A communication that is sent by mail to addresses in the district 69
for which a candidate being endorsed by another candidate pursuant to 70
the provisions of this subdivision is seeking nomination or election to 71
the office of state senator or state representative, containing an 72
endorsement on behalf of such candidate for such nomination or 73
election, from a candidate for the office of state senator or state 74
representative, shall not be an expenditure attributable to the endorsing 75
candidate, if the candidate making the endorsement is not seeking 76
election to the office of state senator or state representative for a district 77
that contains any geographical area shared by the district for the office 78
to which the endorsed candidate is seeking nomination or election; 79
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(12) Campaign training events provided to multiple individuals by a 80
legislative caucus committee and any associated materials, provided the 81
cumulative value of such events and materials does not exceed six 82
thousand dollars in the aggregate for a calendar year; 83
(13) A lawful communication by any charitable organization which is 84
a tax-exempt organization under Section 501(c)(3) of the Internal 85
Revenue Code of 1986, or any subsequent corresponding internal 86
revenue code of the United States, as from time to time amended; 87
(14) The use of offices, telephones, computers and similar equipment 88
provided by a party committee, legislative caucus committee or 89
legislative leadership committee that serve as headquarters for or are 90
used by such party committee, legislative caucus committee or 91
legislative leadership committee; [or] 92
(15) An expense or expenses incurred by a human being acting alone 93
in an amount that is two hundred dollars or less, in the aggregate, that 94
benefits a candidate for a single election; or 95
(16) A solicitation via the Internet for a contribution to any committee, 96
provided any such contribution described in this subdivision shall be 97
construed to be an expenditure. 98
Sec. 2. Subsection (f) of section 9-612 of the general statutes is repealed 99
and the following is substituted in lieu thereof (Effective from passage): 100
(f) (1) As used in this subsection and subsections (g) and (h) of this 101
section: 102
(A) "Quasi-public agency" has the same meaning as provided in 103
section 1-120. 104
(B) "State agency" means any office, department, board, council, 105
commission, institution or other agency in the executive or legislative 106
branch of state government. 107
(C) "State contract" means an agreement or contract with the state or 108
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any state agency or any quasi-public agency, let through a procurement 109
process or otherwise, having a value of fifty thousand dollars or more, 110
or a combination or series of such agreements or contracts having a 111
value of one hundred thousand dollars or more in a calendar year, for 112
(i) the rendition of services, (ii) the furnishing of any goods, material, 113
supplies, equipment or any items of any kind, (iii) the construction, 114
alteration or repair of any public building or public work, (iv) the 115
acquisition, sale or lease of any land or building, (v) a licensing 116
arrangement, or (vi) a grant, loan or loan guarantee. "State contract" 117
does not include any agreement or contract with the state, any state 118
agency or any quasi-public agency that is exclusively federally funded, 119
an education loan, a loan to an individual for other than commercial 120
purposes or any agreement or contract between the state or any state 121
agency and the United States Department of the Navy or the United 122
States Department of Defense. 123
(D) "State contractor" means a person, business entity or nonprofit 124
organization that enters into a state contract. Such person, business 125
entity or nonprofit organization shall be deemed to be a state contractor 126
until December thirty-first of the year in which such contract terminates. 127
"State contractor" does not include a municipality or any other political 128
subdivision of the state, including any entities or associations duly 129
created by the municipality or political subdivision exclusively amongst 130
themselves to further any purpose authorized by statute or charter, or 131
an employee in the executive or legislative branch of state government 132
or a quasi-public agency, whether in the classified or unclassified service 133
and full or part-time, and only in such person's capacity as a state or 134
quasi-public agency employee. 135
(E) "Prospective state contractor" means a person, business entity or 136
nonprofit organization that (i) submits a response to a state contract 137
solicitation by the state, a state agency or a quasi-public agency, or a 138
proposal in response to a request for proposals by the state, a state 139
agency or a quasi-public agency, until the contract has been entered into, 140
or (ii) holds a valid prequalification certificate issued by the 141
Commissioner of Administrative Services under section 4a-100. 142
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"Prospective state contractor" does not include a municipality or any 143
other political subdivision of the state, including any entities or 144
associations duly created by the municipality or political subdivision 145
exclusively amongst themselves to further any purpose authorized by 146
statute or charter, or an employee in the executive or legislative branch 147
of state government or a quasi-public agency, whether in the classified 148
or unclassified service and full or part-time, and only in such person's 149
capacity as a state or quasi-public agency employee. 150
(F) "Principal of a state contractor or prospective state contractor" 151
means (i) any individual who is a member of the board of directors of, 152
or has an ownership interest of five per cent or more in, a state contractor 153
or prospective state contractor, which is a business entity, except for an 154
individual who is a member of the board of directors of a nonprofit 155
organization, (ii) an individual who is employed by a state contractor or 156
prospective state contractor, which is a business entity, as president, 157
treasurer or executive vice president, (iii) an individual who is the chief 158
executive officer of a state contractor or prospective state contractor, 159
which is not a business entity, or if a state contractor or prospective state 160
contractor has no such officer, then the officer who duly possesses 161
comparable powers and duties, (iv) an officer or an employee of any 162
state contractor or prospective state contractor who has managerial or 163
discretionary responsibilities with respect to a state contract, (v) the 164
spouse or a dependent child who is eighteen years of age or older of an 165
individual described in this subparagraph, or (vi) a political committee 166
established or controlled by an individual described in this 167
subparagraph or the business entity or nonprofit organization that is the 168
state contractor or prospective state contractor. 169
(G) "Dependent child" means a child residing in an individual's 170
household who may legally be claimed as a dependent on the federal 171
income tax return of such individual. 172
(H) "Managerial or discretionary responsibilities with respect to a 173
state contract" means having direct, extensive and substantive 174
responsibilities with respect to the negotiation of the state contract and 175
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not peripheral, clerical or ministerial responsibilities. 176
(I) "Rendition of services" means the provision of any service to a state 177
agency or quasi-public agency in exchange for a fee, remuneration or 178
compensation of any kind from the state or through an arrangement 179
with the state. 180
(J) "State contract solicitation" means a request by a state agency or 181
quasi-public agency, in whatever form issued, including, but not limited 182
to, an invitation to bid, request for proposals, request for information or 183
request for quotes, inviting bids, quotes or other types of submittals, 184
through a competitive procurement process or another process 185
authorized by law waiving competitive procurement. 186
(K) "Subcontractor" means any person, business entity or nonprofit 187
organization that contracts to perform part or all of the obligations of a 188
state contractor's state contract. Such person, business entity or 189
nonprofit organization shall be deemed to be a subcontractor until 190
December thirty-first of the year in which the subcontract terminates. 191
"Subcontractor" does not include (i) a municipality or any other political 192
subdivision of the state, including any entities or associations duly 193
created by the municipality or political subdivision exclusively amongst 194
themselves to further any purpose authorized by statute or charter, or 195
(ii) an employee in the executive or legislative branch of state 196
government or a quasi-public agency, whether in the classified or 197
unclassified service and full or part-time, and only in such person's 198
capacity as a state or quasi-public agency employee. 199
(L) "Principal of a subcontractor" means (i) any individual who is a 200
member of the board of directors of, or has an ownership interest of five 201
per cent or more in, a subcontractor, which is a business entity, except 202
for an individual who is a member of the board of directors of a 203
nonprofit organization, (ii) an individual who is employed by a 204
subcontractor, which is a business entity, as president, treasurer or 205
executive vice president, (iii) an individual who is the chief executive 206
officer of a subcontractor, which is not a business entity, or if a 207
subcontractor has no such officer, then the officer who duly possesses 208
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comparable powers and duties, (iv) an officer or an employee of any 209
subcontractor who has managerial or discretionary responsibilities with 210
respect to a subcontract with a state contractor, (v) the spouse or a 211
dependent child who is eighteen years of age or older of an individual 212
described in this subparagraph, or (vi) a political committee established 213
or controlled by an individual described in this subparagraph or the 214
business entity or nonprofit organization that is the subcontractor. 215
(2) (A) No state contractor, prospective state contractor, principal of 216
a state contractor or principal of a prospective state contractor, with 217
regard to a state contract or a state contract solicitation with or from a 218
state agency in the executive branch or a quasi-public agency or a 219
holder, or principal of a holder, of a valid prequalification certificate, 220
shall make a contribution to, or, on and after January 1, 2011, knowingly 221
solicit contributions from the state contractor's or prospective state 222
contractor's employees or from a subcontractor or principals of the 223
subcontractor on behalf of (i) an exploratory committee or candidate 224
committee established by a candidate for nomination or election to the 225
office of Governor, Lieutenant Governor, Attorney General, State 226
Comptroller, Secretary of the State or State Treasurer, (ii) a political 227
committee authorized to make contributions or expenditures to or for 228
the benefit of such candidates, or (iii) a party committee; 229
(B) No state contractor [, prospective state contractor,] or principal of 230
a state contractor, or prospective state contractor or principal of a 231
prospective state contractor who has submitted a pending proposal, 232
with regard to a state contract or a state contract solicitation with or from 233
the General Assembly, or [a] prospective state contractor, principal of a 234
prospective state contractor or holder, or principal of a holder, of a valid 235
prequalification certificate who has a current or pending contract or is 236
actively seeking a contract with the executive branch, shall make a 237
contribution to, or, on and after January 1, 2011, knowingly solicit 238
contributions from [the state contractor's or prospective state 239
contractor's] its employees or from a subcontractor or principals of the 240
subcontractor on behalf of (i) an exploratory committee or candidate 241
committee established by a candidate for nomination or election to the 242
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office of state senator or state representative, (ii) a political committee 243
authorized to make contributions or expenditures to or for the benefit 244
of such candidates, or (iii) a party committee; 245
(C) If a state contractor or principal of a state contractor makes or 246
solicits a contribution as prohibited under subparagraph (A) or (B) of 247
this subdivision, as determined by the State Elections Enforcement 248
Commission, the contracting state agency or quasi-public agency may, 249
in the case of a state contract executed on or after February 8, 2007, void 250
the existing contract with such contractor, and no state agency or quasi-251
public agency shall award the state contractor a state contract or an 252
extension or an amendment to a state contract for one year after the 253
election for which such contribution is made or solicited unless the 254
commission determines that mitigating circumstances exist concerning 255
such violation. No violation of the prohibitions contained in 256
subparagraph (A) or (B) of this subdivision shall be deemed to have 257
occurred if, and only if, the improper contribution is returned to the 258
principal by the later of thirty days after receipt of such contribution by 259
the recipient committee treasurer or the filing date that corresponds 260
with the reporting period in which such contribution was made; 261
(D) If a prospective state contractor or principal of a prospective state 262
contractor makes or solicits a contribution as prohibited under 263
subparagraph (A) or (B) of this subdivision, as determined by the State 264
Elections Enforcement Commission, no state agency or quasi-public 265
agency shall award the prospective state contractor the contract 266
described in the state contract solicitation or any other state contract for 267
one year after the election for which such contribution is made or 268
solicited unless the commission determines that mitigating 269
circumstances exist concerning such violation. The Commissioner of 270
Administrative Services shall notify applicants of the provisions of this 271
subparagraph and subparagraphs (A) and (B) of this subdivision during 272
the prequalification application process; and 273
(E) The State Elections Enforcement Commission shall make 274
available to each state agency and quasi-public agency a written notice 275
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advising state contractors and prospective state contractors of the 276
contribution and solicitation prohibitions contained in subparagraphs 277
(A) and (B) of this subdivision. Such notice shall: (i) Direct each state 278
contractor and prospective state contractor to inform each individual 279
described in subparagraph (F) of subdivision (1) of this subsection, with 280
regard to such state contractor or prospective state contractor, about the 281
provisions of subparagraph (A) or (B) of this subdivision, whichever is 282
applicable, and this subparagraph; (ii) inform each state contractor and 283
prospective state contractor of the civil and criminal penalties that could 284
be imposed for violations of such prohibitions if any such contribution 285
is made or solicited; (iii) inform each state contractor and prospective 286
state contractor that, in the case of a state contractor, if any such 287
contribution is made or solicited, the contract may be voided; (iv) inform 288
each state contractor and prospective state contractor that, in the case of 289
a prospective state contractor, if any such contribution is made or 290
solicited, the contract described in the state contract solicitation shall not 291
be awarded, unless the commission determines that mitigating 292
circumstances exist concerning such violation; and (v) inform each state 293
contractor and prospective state contractor that the state will not award 294
any other state contract to anyone found in violation of such 295
prohibitions for a period of one year after the election for which such 296
contribution is made or solicited, unless the commission determines that 297
mitigating circumstances exist concerning such violation. Each state 298
agency and quasi-public agency shall distribute such notice to the chief 299
executive officer of its contractors and prospective state contractors, or 300
an authorized signatory to a state contract, and shall obtain a written 301
acknowledgment of the receipt of such notice. 302
(3) (A) On and after December 31, 2006, neither the Governor, 303
Lieutenant Governor, Attorney General, State Comptroller, Secretary of 304
the State or State Treasurer, any candidate for any such office nor any 305
agent of any such official or candidate shall knowingly, wilfully or 306
intentionally solicit contributions on behalf of an exploratory committee 307
or candidate committee established by a candidate for nomination or 308
election to any public office, a political committee or a party committee, 309
from a person who he or she knows is prohibited from making 310
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contributions, including a principal of a state contractor or prospective 311
state contractor with regard to a state contract solicitation with or from 312
a state agency in the executive branch or a quasi-public agency or a 313
holder of a valid prequalification certificate. 314
(B) On and after December 31, 2006, neither a member of the General 315
Assembly, any candidate for any such office nor any agent of any such 316
official or candidate shall knowingly, wilfully or intentionally solicit 317
contributions on behalf of an exploratory committee or candidate 318
committee established by a candidate for nomination or election to any 319
public office, a political committee or a party committee, from a person 320
who he or she knows is prohibited from making contributions, 321
including a principal of a state contractor or prospective state contractor 322
with regard to a state contract solicitation with or from the General 323
Assembly or a holder of a valid prequalification certificate. 324
(4) The provisions of this subsection shall not apply to the campaign 325
of a principal of a state contractor or prospective state contractor or to a 326
principal of a state contractor or prospective state contractor who is an 327
elected public official. 328
(5) Each state contractor and prospective state contractor shall make 329
reasonable efforts to comply with the provisions of this subsection. If 330
the State Elections Enforcement Commission determines that a state 331
contractor or prospective state contractor has failed to make reasonable 332
efforts to comply with this subsection, the commission may impose civil 333
penalties against such state contractor or prospective state contractor in 334
accordance with subsection (a) of section 9-7b. 335
Sec. 3. Section 9-718 of the general statutes is repealed and the 336
following is substituted in lieu thereof (Effective from passage): 337
(a) Notwithstanding any provision of the general statutes and except 338
as provided in subsection (e) of this section, no town committee, 339
legislative caucus committee or legislative leadership committee shall 340
make an organization expenditure for the benefit of a participating 341
candidate or the candidate committee of a participating candidate in the 342
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Citizens' Election Program for the office of state senator in an amount 343
that exceeds ten thousand dollars for the general election campaign. 344
(b) Notwithstanding any provision of the general statutes no party 345
committee [, legislative caucus committee] or legislative leadership 346
committee shall make an organization expenditure for the purposes 347
described in subparagraph (A) of subdivision (25) of section 9-601 for 348
the benefit of a participating candidate or the candidate committee of a 349
participating candidate in the Citizens' Election Program for the office 350
of state senator for the primary campaign. 351
(c) Notwithstanding any provision of the general statutes and except 352
as provided in subsection (e) of this section, no town committee, 353
legislative caucus committee or legislative leadership committee shall 354
make an organization expenditure for the benefit of a participating 355
candidate or the candidate committee of a participating candidate in the 356
Citizens' Election Program for the office of state representative in an 357
amount that exceeds three thousand five hundred dollars for the general 358
election campaign. 359
(d) Notwithstanding any provision of the general statutes, no party 360
committee [, legislative caucus committee] or legislative leadership 361
committee shall make an organization expenditure for the purposes 362
described in subparagraph (A) of subdivision (25) of section 9-601 for 363
the benefit of a participating candidate or the candidate committee of a 364
participating candidate in the Citizens' Election Program for the office 365
of state representative for the primary campaign. 366
(e) For any election held in 2014, and thereafter, the amount of the 367
limitations on organization expenditures provided in subsections (a) 368
and (c) of this section shall be adjusted by the State Elections 369
Enforcement Commission not later than January 15, 2014, and biennially 370
thereafter, in accordance with any change in the consumer price index 371
for all urban consumers as published by the United States Department 372
of Labor, Bureau of Labor Statistics, during the period beginning on 373
January 1, 2010, and ending on December thirty-first in the year 374
preceding the year in which said adjustment is to be made. 375
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This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 9-601b(b)
Sec. 2 from passage 9-612(f)
Sec. 3 from passage 9-718
Statement of Purpose:
To (1) specify that certain online solicitations for political contributions
are excluded from the definition of "expenditure", (2) allow certain
individuals or entities to make contributions to legislative candidate
committees and caucus committees, and (3) remove restrictions on the
ability of legislative caucus committees to make organization
expenditures during primaries.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]