Connecticut 2021 Regular Session

Connecticut Senate Bill SB01078 Compare Versions

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44 LCO No. 5630 1 of 13
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66 General Assembly Raised Bill No. 1078
77 January Session, 2021
88 LCO No. 5630
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1010
1111 Referred to Committee on GOVERNMENT ADMINISTRATION
1212 AND ELECTIONS
1313
1414
1515 Introduced by:
1616 (GAE)
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1818
1919
2020
2121 AN ACT CONCERNING CA MPAIGN FINANCE LAWS.
2222 Be it enacted by the Senate and House of Representatives in General
2323 Assembly convened:
2424
2525 Section 1. Subsection (b) of section 9-601b of the general statutes is 1
2626 repealed and the following is substituted in lieu thereof (Effective from 2
2727 passage): 3
2828 (b) The term "expenditure" does not mean: 4
2929 (1) A loan of money, made in the ordinary course of business, by a 5
3030 state or national bank; 6
3131 (2) A communication made by any corporation, organization or 7
3232 association solely to its members, owners, stockholders, executive or 8
3333 administrative personnel, or their families; 9
3434 (3) Nonpartisan voter registration and get-out-the-vote campaigns by 10
3535 any corporation, organization or association aimed at its members, 11
3636 owners, stockholders, executive or administrative personnel, or their 12
3737 families; 13
3838 LCO No. 5630 2 of 13
3939
4040 (4) Uncompensated services provided by individuals volunteering 14
4141 their time on behalf of a party committee, political committee, slate 15
4242 committee or candidate committee, including any services provided for 16
4343 the benefit of nonparticipating and participating candidates under the 17
4444 Citizens' Election Program and any unreimbursed travel expenses made 18
4545 by an individual who volunteers the individual's personal services to 19
4646 any such committee. For purposes of this subdivision, an individual is 20
4747 a volunteer if such individual is not receiving compensation for such 21
4848 services regardless of whether such individual received compensation 22
4949 in the past or may receive compensation for similar services that may be 23
5050 performed in the future; 24
5151 (5) Any news story, commentary or editorial distributed through the 25
5252 facilities of any broadcasting station, newspaper, magazine or other 26
5353 periodical, unless such facilities are owned or controlled by any political 27
5454 party, committee or candidate; 28
5555 (6) The use of real or personal property, a portion or all of the cost of 29
5656 invitations and the cost of food or beverages, voluntarily provided by 30
5757 an individual to a candidate, including a nonparticipating or 31
5858 participating candidate under the Citizens' Election Program, or to a 32
5959 party, political or slate committee, in rendering voluntary personal 33
6060 services at the individual's residential premises or a community room 34
6161 in the individual's residence facility, to the extent that the cumulative 35
6262 value of the invitations, food or beverages provided by an individual on 36
6363 behalf of any candidate or committee does not exceed four hundred 37
6464 dollars with respect to any single event or does not exceed eight 38
6565 hundred dollars for any such event hosted by two or more individuals, 39
6666 provided at least one such individual owns or resides at the residential 40
6767 premises, and further provided the cumulative value of the invitations, 41
6868 food or beverages provided by an individual on behalf of any such 42
6969 candidate or committee does not exceed eight hundred dollars with 43
7070 respect to a calendar year or single election, as the case may be; 44
7171 (7) A communication described in subdivision (2) of subsection (a) of 45
7272 this section that includes speech or expression made (A) prior to the 46
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7474
7575 ninety-day period preceding the date of a primary or an election at 47
7676 which the clearly identified candidate or candidates are seeking 48
7777 nomination to public office or position, that is made for the purpose of 49
7878 influencing any legislative or administrative action, as defined in section 50
7979 1-91, or executive action, or (B) during a legislative session for the 51
8080 purpose of influencing legislative action; 52
8181 (8) An organization expenditure by a party committee, legislative 53
8282 caucus committee or legislative leadership committee; 54
8383 (9) A commercial advertisement that refers to an owner, director or 55
8484 officer of a business entity who is also a candidate and that had 56
8585 previously been broadcast or appeared when the owner, director or 57
8686 officer was not a candidate; 58
8787 (10) A communication containing an endorsement on behalf of a 59
8888 candidate for nomination or election to the office of Governor, 60
8989 Lieutenant Governor, Secretary of the State, State Treasurer, State 61
9090 Comptroller, Attorney General, state senator or state representative, 62
9191 from a candidate for the office of Governor, Lieutenant Governor, 63
9292 Secretary of the State, State Treasurer, State Comptroller, Attorney 64
9393 General, state senator or state representative, shall not be an 65
9494 expenditure attributable to the endorsing candidate, if the candidate 66
9595 making the endorsement is unopposed at the time of the 67
9696 communication; 68
9797 (11) A communication that is sent by mail to addresses in the district 69
9898 for which a candidate being endorsed by another candidate pursuant to 70
9999 the provisions of this subdivision is seeking nomination or election to 71
100100 the office of state senator or state representative, containing an 72
101101 endorsement on behalf of such candidate for such nomination or 73
102102 election, from a candidate for the office of state senator or state 74
103103 representative, shall not be an expenditure attributable to the endorsing 75
104104 candidate, if the candidate making the endorsement is not seeking 76
105105 election to the office of state senator or state representative for a district 77
106106 that contains any geographical area shared by the district for the office 78
107107 to which the endorsed candidate is seeking nomination or election; 79
108108 LCO No. 5630 4 of 13
109109
110110 (12) Campaign training events provided to multiple individuals by a 80
111111 legislative caucus committee and any associated materials, provided the 81
112112 cumulative value of such events and materials does not exceed six 82
113113 thousand dollars in the aggregate for a calendar year; 83
114114 (13) A lawful communication by any charitable organization which is 84
115115 a tax-exempt organization under Section 501(c)(3) of the Internal 85
116116 Revenue Code of 1986, or any subsequent corresponding internal 86
117117 revenue code of the United States, as from time to time amended; 87
118118 (14) The use of offices, telephones, computers and similar equipment 88
119119 provided by a party committee, legislative caucus committee or 89
120120 legislative leadership committee that serve as headquarters for or are 90
121121 used by such party committee, legislative caucus committee or 91
122122 legislative leadership committee; [or] 92
123123 (15) An expense or expenses incurred by a human being acting alone 93
124124 in an amount that is two hundred dollars or less, in the aggregate, that 94
125125 benefits a candidate for a single election; or 95
126126 (16) A solicitation via the Internet for a contribution to any committee, 96
127127 provided any such contribution described in this subdivision shall be 97
128128 construed to be an expenditure. 98
129129 Sec. 2. Subsection (f) of section 9-612 of the general statutes is repealed 99
130130 and the following is substituted in lieu thereof (Effective from passage): 100
131131 (f) (1) As used in this subsection and subsections (g) and (h) of this 101
132132 section: 102
133133 (A) "Quasi-public agency" has the same meaning as provided in 103
134134 section 1-120. 104
135135 (B) "State agency" means any office, department, board, council, 105
136136 commission, institution or other agency in the executive or legislative 106
137137 branch of state government. 107
138138 (C) "State contract" means an agreement or contract with the state or 108
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141141 any state agency or any quasi-public agency, let through a procurement 109
142142 process or otherwise, having a value of fifty thousand dollars or more, 110
143143 or a combination or series of such agreements or contracts having a 111
144144 value of one hundred thousand dollars or more in a calendar year, for 112
145145 (i) the rendition of services, (ii) the furnishing of any goods, material, 113
146146 supplies, equipment or any items of any kind, (iii) the construction, 114
147147 alteration or repair of any public building or public work, (iv) the 115
148148 acquisition, sale or lease of any land or building, (v) a licensing 116
149149 arrangement, or (vi) a grant, loan or loan guarantee. "State contract" 117
150150 does not include any agreement or contract with the state, any state 118
151151 agency or any quasi-public agency that is exclusively federally funded, 119
152152 an education loan, a loan to an individual for other than commercial 120
153153 purposes or any agreement or contract between the state or any state 121
154154 agency and the United States Department of the Navy or the United 122
155155 States Department of Defense. 123
156156 (D) "State contractor" means a person, business entity or nonprofit 124
157157 organization that enters into a state contract. Such person, business 125
158158 entity or nonprofit organization shall be deemed to be a state contractor 126
159159 until December thirty-first of the year in which such contract terminates. 127
160160 "State contractor" does not include a municipality or any other political 128
161161 subdivision of the state, including any entities or associations duly 129
162162 created by the municipality or political subdivision exclusively amongst 130
163163 themselves to further any purpose authorized by statute or charter, or 131
164164 an employee in the executive or legislative branch of state government 132
165165 or a quasi-public agency, whether in the classified or unclassified service 133
166166 and full or part-time, and only in such person's capacity as a state or 134
167167 quasi-public agency employee. 135
168168 (E) "Prospective state contractor" means a person, business entity or 136
169169 nonprofit organization that (i) submits a response to a state contract 137
170170 solicitation by the state, a state agency or a quasi-public agency, or a 138
171171 proposal in response to a request for proposals by the state, a state 139
172172 agency or a quasi-public agency, until the contract has been entered into, 140
173173 or (ii) holds a valid prequalification certificate issued by the 141
174174 Commissioner of Administrative Services under section 4a-100. 142
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176176
177177 "Prospective state contractor" does not include a municipality or any 143
178178 other political subdivision of the state, including any entities or 144
179179 associations duly created by the municipality or political subdivision 145
180180 exclusively amongst themselves to further any purpose authorized by 146
181181 statute or charter, or an employee in the executive or legislative branch 147
182182 of state government or a quasi-public agency, whether in the classified 148
183183 or unclassified service and full or part-time, and only in such person's 149
184184 capacity as a state or quasi-public agency employee. 150
185185 (F) "Principal of a state contractor or prospective state contractor" 151
186186 means (i) any individual who is a member of the board of directors of, 152
187187 or has an ownership interest of five per cent or more in, a state contractor 153
188188 or prospective state contractor, which is a business entity, except for an 154
189189 individual who is a member of the board of directors of a nonprofit 155
190190 organization, (ii) an individual who is employed by a state contractor or 156
191191 prospective state contractor, which is a business entity, as president, 157
192192 treasurer or executive vice president, (iii) an individual who is the chief 158
193193 executive officer of a state contractor or prospective state contractor, 159
194194 which is not a business entity, or if a state contractor or prospective state 160
195195 contractor has no such officer, then the officer who duly possesses 161
196196 comparable powers and duties, (iv) an officer or an employee of any 162
197197 state contractor or prospective state contractor who has managerial or 163
198198 discretionary responsibilities with respect to a state contract, (v) the 164
199199 spouse or a dependent child who is eighteen years of age or older of an 165
200200 individual described in this subparagraph, or (vi) a political committee 166
201201 established or controlled by an individual described in this 167
202202 subparagraph or the business entity or nonprofit organization that is the 168
203203 state contractor or prospective state contractor. 169
204204 (G) "Dependent child" means a child residing in an individual's 170
205205 household who may legally be claimed as a dependent on the federal 171
206206 income tax return of such individual. 172
207207 (H) "Managerial or discretionary responsibilities with respect to a 173
208208 state contract" means having direct, extensive and substantive 174
209209 responsibilities with respect to the negotiation of the state contract and 175
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211211
212212 not peripheral, clerical or ministerial responsibilities. 176
213213 (I) "Rendition of services" means the provision of any service to a state 177
214214 agency or quasi-public agency in exchange for a fee, remuneration or 178
215215 compensation of any kind from the state or through an arrangement 179
216216 with the state. 180
217217 (J) "State contract solicitation" means a request by a state agency or 181
218218 quasi-public agency, in whatever form issued, including, but not limited 182
219219 to, an invitation to bid, request for proposals, request for information or 183
220220 request for quotes, inviting bids, quotes or other types of submittals, 184
221221 through a competitive procurement process or another process 185
222222 authorized by law waiving competitive procurement. 186
223223 (K) "Subcontractor" means any person, business entity or nonprofit 187
224224 organization that contracts to perform part or all of the obligations of a 188
225225 state contractor's state contract. Such person, business entity or 189
226226 nonprofit organization shall be deemed to be a subcontractor until 190
227227 December thirty-first of the year in which the subcontract terminates. 191
228228 "Subcontractor" does not include (i) a municipality or any other political 192
229229 subdivision of the state, including any entities or associations duly 193
230230 created by the municipality or political subdivision exclusively amongst 194
231231 themselves to further any purpose authorized by statute or charter, or 195
232232 (ii) an employee in the executive or legislative branch of state 196
233233 government or a quasi-public agency, whether in the classified or 197
234234 unclassified service and full or part-time, and only in such person's 198
235235 capacity as a state or quasi-public agency employee. 199
236236 (L) "Principal of a subcontractor" means (i) any individual who is a 200
237237 member of the board of directors of, or has an ownership interest of five 201
238238 per cent or more in, a subcontractor, which is a business entity, except 202
239239 for an individual who is a member of the board of directors of a 203
240240 nonprofit organization, (ii) an individual who is employed by a 204
241241 subcontractor, which is a business entity, as president, treasurer or 205
242242 executive vice president, (iii) an individual who is the chief executive 206
243243 officer of a subcontractor, which is not a business entity, or if a 207
244244 subcontractor has no such officer, then the officer who duly possesses 208
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246246
247247 comparable powers and duties, (iv) an officer or an employee of any 209
248248 subcontractor who has managerial or discretionary responsibilities with 210
249249 respect to a subcontract with a state contractor, (v) the spouse or a 211
250250 dependent child who is eighteen years of age or older of an individual 212
251251 described in this subparagraph, or (vi) a political committee established 213
252252 or controlled by an individual described in this subparagraph or the 214
253253 business entity or nonprofit organization that is the subcontractor. 215
254254 (2) (A) No state contractor, prospective state contractor, principal of 216
255255 a state contractor or principal of a prospective state contractor, with 217
256256 regard to a state contract or a state contract solicitation with or from a 218
257257 state agency in the executive branch or a quasi-public agency or a 219
258258 holder, or principal of a holder, of a valid prequalification certificate, 220
259259 shall make a contribution to, or, on and after January 1, 2011, knowingly 221
260260 solicit contributions from the state contractor's or prospective state 222
261261 contractor's employees or from a subcontractor or principals of the 223
262262 subcontractor on behalf of (i) an exploratory committee or candidate 224
263263 committee established by a candidate for nomination or election to the 225
264264 office of Governor, Lieutenant Governor, Attorney General, State 226
265265 Comptroller, Secretary of the State or State Treasurer, (ii) a political 227
266266 committee authorized to make contributions or expenditures to or for 228
267267 the benefit of such candidates, or (iii) a party committee; 229
268268 (B) No state contractor [, prospective state contractor,] or principal of 230
269269 a state contractor, or prospective state contractor or principal of a 231
270270 prospective state contractor who has submitted a pending proposal, 232
271271 with regard to a state contract or a state contract solicitation with or from 233
272272 the General Assembly, or [a] prospective state contractor, principal of a 234
273273 prospective state contractor or holder, or principal of a holder, of a valid 235
274274 prequalification certificate who has a current or pending contract or is 236
275275 actively seeking a contract with the executive branch, shall make a 237
276276 contribution to, or, on and after January 1, 2011, knowingly solicit 238
277277 contributions from [the state contractor's or prospective state 239
278278 contractor's] its employees or from a subcontractor or principals of the 240
279279 subcontractor on behalf of (i) an exploratory committee or candidate 241
280280 committee established by a candidate for nomination or election to the 242
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282282
283283 office of state senator or state representative, (ii) a political committee 243
284284 authorized to make contributions or expenditures to or for the benefit 244
285285 of such candidates, or (iii) a party committee; 245
286286 (C) If a state contractor or principal of a state contractor makes or 246
287287 solicits a contribution as prohibited under subparagraph (A) or (B) of 247
288288 this subdivision, as determined by the State Elections Enforcement 248
289289 Commission, the contracting state agency or quasi-public agency may, 249
290290 in the case of a state contract executed on or after February 8, 2007, void 250
291291 the existing contract with such contractor, and no state agency or quasi-251
292292 public agency shall award the state contractor a state contract or an 252
293293 extension or an amendment to a state contract for one year after the 253
294294 election for which such contribution is made or solicited unless the 254
295295 commission determines that mitigating circumstances exist concerning 255
296296 such violation. No violation of the prohibitions contained in 256
297297 subparagraph (A) or (B) of this subdivision shall be deemed to have 257
298298 occurred if, and only if, the improper contribution is returned to the 258
299299 principal by the later of thirty days after receipt of such contribution by 259
300300 the recipient committee treasurer or the filing date that corresponds 260
301301 with the reporting period in which such contribution was made; 261
302302 (D) If a prospective state contractor or principal of a prospective state 262
303303 contractor makes or solicits a contribution as prohibited under 263
304304 subparagraph (A) or (B) of this subdivision, as determined by the State 264
305305 Elections Enforcement Commission, no state agency or quasi-public 265
306306 agency shall award the prospective state contractor the contract 266
307307 described in the state contract solicitation or any other state contract for 267
308308 one year after the election for which such contribution is made or 268
309309 solicited unless the commission determines that mitigating 269
310310 circumstances exist concerning such violation. The Commissioner of 270
311311 Administrative Services shall notify applicants of the provisions of this 271
312312 subparagraph and subparagraphs (A) and (B) of this subdivision during 272
313313 the prequalification application process; and 273
314314 (E) The State Elections Enforcement Commission shall make 274
315315 available to each state agency and quasi-public agency a written notice 275
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317317
318318 advising state contractors and prospective state contractors of the 276
319319 contribution and solicitation prohibitions contained in subparagraphs 277
320320 (A) and (B) of this subdivision. Such notice shall: (i) Direct each state 278
321321 contractor and prospective state contractor to inform each individual 279
322322 described in subparagraph (F) of subdivision (1) of this subsection, with 280
323323 regard to such state contractor or prospective state contractor, about the 281
324324 provisions of subparagraph (A) or (B) of this subdivision, whichever is 282
325325 applicable, and this subparagraph; (ii) inform each state contractor and 283
326326 prospective state contractor of the civil and criminal penalties that could 284
327327 be imposed for violations of such prohibitions if any such contribution 285
328328 is made or solicited; (iii) inform each state contractor and prospective 286
329329 state contractor that, in the case of a state contractor, if any such 287
330330 contribution is made or solicited, the contract may be voided; (iv) inform 288
331331 each state contractor and prospective state contractor that, in the case of 289
332332 a prospective state contractor, if any such contribution is made or 290
333333 solicited, the contract described in the state contract solicitation shall not 291
334334 be awarded, unless the commission determines that mitigating 292
335335 circumstances exist concerning such violation; and (v) inform each state 293
336336 contractor and prospective state contractor that the state will not award 294
337337 any other state contract to anyone found in violation of such 295
338338 prohibitions for a period of one year after the election for which such 296
339339 contribution is made or solicited, unless the commission determines that 297
340340 mitigating circumstances exist concerning such violation. Each state 298
341341 agency and quasi-public agency shall distribute such notice to the chief 299
342342 executive officer of its contractors and prospective state contractors, or 300
343343 an authorized signatory to a state contract, and shall obtain a written 301
344344 acknowledgment of the receipt of such notice. 302
345345 (3) (A) On and after December 31, 2006, neither the Governor, 303
346346 Lieutenant Governor, Attorney General, State Comptroller, Secretary of 304
347347 the State or State Treasurer, any candidate for any such office nor any 305
348348 agent of any such official or candidate shall knowingly, wilfully or 306
349349 intentionally solicit contributions on behalf of an exploratory committee 307
350350 or candidate committee established by a candidate for nomination or 308
351351 election to any public office, a political committee or a party committee, 309
352352 from a person who he or she knows is prohibited from making 310
353353 LCO No. 5630 11 of 13
354354
355355 contributions, including a principal of a state contractor or prospective 311
356356 state contractor with regard to a state contract solicitation with or from 312
357357 a state agency in the executive branch or a quasi-public agency or a 313
358358 holder of a valid prequalification certificate. 314
359359 (B) On and after December 31, 2006, neither a member of the General 315
360360 Assembly, any candidate for any such office nor any agent of any such 316
361361 official or candidate shall knowingly, wilfully or intentionally solicit 317
362362 contributions on behalf of an exploratory committee or candidate 318
363363 committee established by a candidate for nomination or election to any 319
364364 public office, a political committee or a party committee, from a person 320
365365 who he or she knows is prohibited from making contributions, 321
366366 including a principal of a state contractor or prospective state contractor 322
367367 with regard to a state contract solicitation with or from the General 323
368368 Assembly or a holder of a valid prequalification certificate. 324
369369 (4) The provisions of this subsection shall not apply to the campaign 325
370370 of a principal of a state contractor or prospective state contractor or to a 326
371371 principal of a state contractor or prospective state contractor who is an 327
372372 elected public official. 328
373373 (5) Each state contractor and prospective state contractor shall make 329
374374 reasonable efforts to comply with the provisions of this subsection. If 330
375375 the State Elections Enforcement Commission determines that a state 331
376376 contractor or prospective state contractor has failed to make reasonable 332
377377 efforts to comply with this subsection, the commission may impose civil 333
378378 penalties against such state contractor or prospective state contractor in 334
379379 accordance with subsection (a) of section 9-7b. 335
380380 Sec. 3. Section 9-718 of the general statutes is repealed and the 336
381381 following is substituted in lieu thereof (Effective from passage): 337
382382 (a) Notwithstanding any provision of the general statutes and except 338
383383 as provided in subsection (e) of this section, no town committee, 339
384384 legislative caucus committee or legislative leadership committee shall 340
385385 make an organization expenditure for the benefit of a participating 341
386386 candidate or the candidate committee of a participating candidate in the 342
387387 LCO No. 5630 12 of 13
388388
389389 Citizens' Election Program for the office of state senator in an amount 343
390390 that exceeds ten thousand dollars for the general election campaign. 344
391391 (b) Notwithstanding any provision of the general statutes no party 345
392392 committee [, legislative caucus committee] or legislative leadership 346
393393 committee shall make an organization expenditure for the purposes 347
394394 described in subparagraph (A) of subdivision (25) of section 9-601 for 348
395395 the benefit of a participating candidate or the candidate committee of a 349
396396 participating candidate in the Citizens' Election Program for the office 350
397397 of state senator for the primary campaign. 351
398398 (c) Notwithstanding any provision of the general statutes and except 352
399399 as provided in subsection (e) of this section, no town committee, 353
400400 legislative caucus committee or legislative leadership committee shall 354
401401 make an organization expenditure for the benefit of a participating 355
402402 candidate or the candidate committee of a participating candidate in the 356
403403 Citizens' Election Program for the office of state representative in an 357
404404 amount that exceeds three thousand five hundred dollars for the general 358
405405 election campaign. 359
406406 (d) Notwithstanding any provision of the general statutes, no party 360
407407 committee [, legislative caucus committee] or legislative leadership 361
408408 committee shall make an organization expenditure for the purposes 362
409409 described in subparagraph (A) of subdivision (25) of section 9-601 for 363
410410 the benefit of a participating candidate or the candidate committee of a 364
411411 participating candidate in the Citizens' Election Program for the office 365
412412 of state representative for the primary campaign. 366
413413 (e) For any election held in 2014, and thereafter, the amount of the 367
414414 limitations on organization expenditures provided in subsections (a) 368
415415 and (c) of this section shall be adjusted by the State Elections 369
416416 Enforcement Commission not later than January 15, 2014, and biennially 370
417417 thereafter, in accordance with any change in the consumer price index 371
418418 for all urban consumers as published by the United States Department 372
419419 of Labor, Bureau of Labor Statistics, during the period beginning on 373
420420 January 1, 2010, and ending on December thirty-first in the year 374
421421 preceding the year in which said adjustment is to be made. 375
422422 LCO No. 5630 13 of 13
423423
424424 This act shall take effect as follows and shall amend the following
425425 sections:
426426
427427 Section 1 from passage 9-601b(b)
428428 Sec. 2 from passage 9-612(f)
429429 Sec. 3 from passage 9-718
430430
431431 Statement of Purpose:
432432 To (1) specify that certain online solicitations for political contributions
433433 are excluded from the definition of "expenditure", (2) allow certain
434434 individuals or entities to make contributions to legislative candidate
435435 committees and caucus committees, and (3) remove restrictions on the
436436 ability of legislative caucus committees to make organization
437437 expenditures during primaries.
438438 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
439439 that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
440440 underlined.]
441441