Researcher: MHF Page 1 4/12/22
OLR Bill Analysis
HB 5455
AN ACT CONCERNING CAMPAIGN CONSULTANTS AND
DISCLOSURE.
SUMMARY
By law, treasurers of party committees, candidate committees, and
political committees (known as PACs) may pay consultants or other
professional persons for campaign or committee services. This bill
defines “consultant” and “subvendor” for campaign finance purposes
and establishes their registration, reporting, and record-keeping
requirements.
Principally, the bill does the following:
1. requires consultants to provide a detailed accounting of their
expenditures to committees or persons on whose behalf they
make payments;
2. requires committees and persons that make or obligate to make
payments for expenditures to consultants to submit additional
information in their campaign finance disclosure statements or
independent expenditure (IE) reports, as applicable;
3. requires consultants to maintain detailed records of certain
expenditures for at least four years;
4. prohibits a financial obligation from being made or incurred on
behalf of a committee unless authorized by the treasurer;
5. requires consultants and other professionals that work with
candidates participating in the Citizens’ Election Program (CEP)
to register with the State Elections Enforcement Commission
(SEEC) under certain conditions; and
6. establishes two additional illegal campaign finance practices. 2022HB-05455-R000419-BA.DOCX
Researcher: MHF Page 2 4/12/22
EFFECTIVE DATE: Upon passage
DEFINITIONS
Consultant
The bill defines "consultant" as a person:
1. that provides (a) campaign strategy; (b) design or management
of campaign communications, literature, or advertising; or (c)
fundraising or management services or
2. with duties that include identifying, hiring, or paying
subvendors for goods or services on behalf of a committee or
person required to file a campaign finance disclosure statement
or IE report (“required filer”).
Subvendor
"Subvendor" means a person that (1) provides goods or services to a
consultant or (2) contracts with a consultant or other subvendor to
provide goods or services to a required filer. It does not include a
consultant’s employee who has been employed for at least three
consecutive months prior to any month when an expenditure report
must be filed for the consultant or one of his or her subvendors.
Under the bill, a subvendor may be deemed a consultant if they make
reportable payments, including payments to other subvendors. At that
point, they must comply with the bill’s reporting and record-keeping
requirements.
REPORTING
Consultants
The bill establishes reporting requirements for consultants that (1)
agree to receive payment from a candidate or committee and (2) make
or obligate to make expenditures, including payments to subvendors,
on behalf of a required filer. Under existing law and the bill, consultants
may work on behalf of party committees, candidate committees, and
PACs.
Specifically, no later than five days after making or obligating to 2022HB-05455-R000419-BA.DOCX
Researcher: MHF Page 3 4/12/22
make an expenditure, the consultant must provide the person or
committee with a detailed accounting of the expenditure. If a consultant
makes or obligates to make a payment for an expenditure that requires
a committee or person to file a campaign finance disclosure statement
or IE report, the consultant must, at the same time, provide the
applicable person or committee with all the information needed to file
the statement or report. This includes the:
1. expenditure’s amount and date;
2. the name of the payment recipient;
3. subvendor’s full name and street address;
4. description of the payment’s purpose;
5. name of any candidate, or text of any referendum question, the
expenditure supports or opposes; and
6. date of any event associated with the payment.
For an event, the bill requires consultants to report direct or indirect
expenditures to a subvendor for:
1. written, typed, or other printed communication, or any web-
based written communication, that (a) promotes the success or
defeat of a candidate's campaign for nomination or election, or
any referendum question, or (b) solicits funds to benefit any
candidate or committee;
2. advertising time or space, including television or Internet video,
radio or Internet audio, telephone call, or web-based or social
media communication;
3. wages incurred as a result of work for any candidate or
committee;
4. survey, poll, signature gathering, or door-to-door voter
solicitation; 2022HB-05455-R000419-BA.DOCX
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5. facilities, invitations, or entertainment for fundraising or other
campaign events; or
6. printing or postage for mass campaign mailings.
The bill prohibits a consultant from making an expenditure without
providing all required information to the applicable committee or
person. The prohibition does not apply to overhead or normal operating
expenses.
Persons and Committees that Pay Consultants
Under the bill, if a committee or person makes or obligates payments
for an expenditure to a consultant that is subject to the above reporting
requirements, they must include all of the information that the bill
requires the consultant to provide (see above) in their campaign finance
disclosure statements or IE reports to SEEC. The committee or person
must also include any other information SEEC requires to facilitate
compliance with state campaign finance laws.
MAINTAINING RECORDS
The bill requires consultants, including subvendors deemed
consultants, to keep detailed information on each expenditure made or
obligated on behalf of a required filer. For at least four years, they must
also keep records of each transaction required to be included in such a
statement or report.
These records include any invoice, receipt, bill, statement, itinerary,
or other written or documentary evidence demonstrating the
expenditure was for the campaign or another lawful purpose.
APPROVING FINANCIAL O BLIGATIONS
Generally, under existing law, a committee cannot incur a financial
obligation unless authorized by its treasurer (CGS § 9-607). The bill
additionally prohibits a financial obligation from being made or
incurred on behalf of a committee unless authorized by the treasurer.
Thus, under the bill, it appears that treasurers must approve financial
obligations incurred by consultants or subvendors on behalf of the
committee. 2022HB-05455-R000419-BA.DOCX
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CONSULTANTS AND CEP CANDIDATE COMMITTEES
Under the bill, if a participating candidate’s treasurer spends 15% or
more, in the aggregate, of the candidate committee’s Citizens’ Election
Fund grants on a consultant’s or other professional’s campaign or
committee services, that person must register with SEEC by filing an
affidavit. The affidavit must certify in writing the consultant’s or
professional’s intent to abide by the state’s campaign finance laws and
CEP requirements and maintain and furnish required records. SEEC
must prepare and make publicly available a list of each registered
consultant or other professional for participating CEP candidates.
ILLEGAL PRACTICES
The bill establishes two additional illegal campaign finance practices.
By law, those who knowingly and willfully commit an illegal practice
are guilty of a class D felony, punishable by imprisonment of up to five
years, a fine of up to $5,000, or both (CGS § 9-623).
Under the bill, the following are guilty of an illegal practice:
1. a consultant that fails to provide complete information to a
required filer so that they may file any required campaign finance
disclosure statement or IE report; or
2. a consultant that, except for overhead or normal operating
expenses, makes or obligates to make an expenditure, or directly
or indirectly authorizes a subvendor to make or obligate to make
an expenditure on behalf of a candidate, PAC, or other person
without their knowledge.
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable
Yea 16 Nay 2 (03/29/2022)