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OLR Bill Analysis
sHB 6904
AN ACT CONCERNING CAMPAIGN FINANCE.
SUMMARY
This bill makes unrelated changes affecting campaign finance and the
State Elections Enforcement Commission (SEEC). It exempts, from state
campaign finance law’s definition of “expenditure,” Internet
solicitations for contributions to any committee (i.e., a candidate, party,
or political committee). It specifies that any contribution in response to
the Internet solicitation is still considered an expenditure by the person
making the contribution. Generally, state law subjects expenditures by
candidate committees, party committees, and political committees to
campaign finance reporting requirements. Exempted items or services
need not be reported as expenditures.
The bill also narrows the circumstances under which SEEC must
dismiss a complaint within one year after receiving it. Under current
law, SEEC must dismiss a complaint if it does not issue a final decision
on it within one year after receipt, with certain exceptions. The bill
instead requires the commission to dismiss after one year any complaint
it receives on or after July 1, 2023, for which it has not (1) found reason
to believe a state election law violation occurred and (2) initiated a
contested case proceeding. It allows SEEC to extend this deadline for the
same reasons as under current law and adds additional exceptions (e.g.,
for violations by a foreign national).
Lastly, the bill increases the annual limit on contributions by an
individual to a state central committee from $10,000 to $15,000.
EFFECTIVE DATE: Upon passage
SEEC COMPLAINTS
Time Limit 2023HB-06904-R000543-BA.DOCX
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By law, SEEC receives complaints from the secretary of the state,
registrars of voters, town clerks, and individuals under oath about
alleged election law violations. It investigates and holds hearings as it
deems appropriate (CGS § 9-7b(a)(1)).
Currently, SEEC must dismiss a complaint it receives on or after
January 1, 2018, if it does not issue a final decision on it within one year
after receiving the complaint. However, the deadline must be extended
if specified actions delay the final decision’s issuance.
The bill relaxes this requirement for SEEC complaints received on or
after July 1, 2023. It instead requires the commission to dismiss after one
year any complaint for which it has not (1) found reason to believe a
state election law violation occurred and (2) initiated a contested case
proceeding.
The bill also (1) requires that the deadline for making this finding be
extended for the same reasons that the final decision deadline must be
extended under current law and (2) establishes additional reasons for
extending this deadline (see below). As under current law, the one-year
deadline must be extended by the length of the delay.
Extensions
Under current law, the one-year deadline for SEEC to issue a final
decision must be extended if its issuance is delayed for any of the
following reasons:
1. extension or continuance granted to a respondent by SEEC or its
staff before issuing the decision;
2. issuance of a subpoena in connection with the complaint;
3. litigation in state or federal court related to the complaint; or
4. consultation with the chief state’s attorney, attorney general, U.S.
Department of Justice, or U.S. attorney for Connecticut.
The bill similarly requires an extension, for these same reasons, of the
one-year deadline for finding reason to believe that an election law 2023HB-06904-R000543-BA.DOCX
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violation occurred and initiating a contested case. (SEEC regulations
generally prohibit the commission from proceeding with a contested
case unless it finds, by a majority vote of a quorum, reason to believe
that a violation occurred (Conn. Agencies Regs., § 9-7b-35).)
The bill also requires an extension if the finding and commencement
are delayed because of an investigation by SEEC or its staff involving a
potential state election law violation (1) by a foreign national (as defined
in federal law, see BACKGROUND) or (2) involving independent
expenditures (e.g., making or reporting them).
BACKGROUND
Foreign Nationals and Related Federal Law
Foreign Nationals. Federal campaign finance law defines a “foreign
national” as any of the following:
1. a government of a foreign country and a foreign political party;
2. a person outside of the United States unless it is established that
the person is (a) an individual and a U.S. citizen domiciled within
the United States or (b) not an individual, has its principal place
of business in the United States, and is organized under, or
created by, the United States, a state, or other place subject to U.S.
jurisdiction;
3. a partnership, association, corporation, organization, or other
combination of persons organized under the laws of, or having
its principal place of business in, a foreign country; or
4. an individual who is not a U.S. citizen or national and is not
lawfully admitted for permanent residence (52 U.S.C. § 30121(b)
and 22 U.S.C. § 611(b)).
Prohibited Activities. Federal law prohibits a foreign national from,
among other things, directly or indirectly making:
1. in connection with a federal, state, or local election, a contribution
or donation of money or anything of value; an express or implied 2023HB-06904-R000543-BA.DOCX
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promise to make a contribution or donation; or an expenditure or
IE; or
2. a contribution or donation to a federal, state, or local political
party’s committee.
It similarly prohibits a person from soliciting, accepting, or receiving
any contribution or donation described above from a foreign national
(52 U.S.C. § 30121 and 11 C.F.R. § 110.20).
Related Bills
sSB 1225 (§ 17), reported favorably by the Government
Administration and Elections (GAE) Committee, narrows the
circumstances under which SEEC must dismiss a complaint within one
year after receiving it.
sSB 1188, reported favorably by the GAE Committee, explicitly
prohibits foreign nationals from making contributions or expenditures
under state campaign finance laws and defines “foreign national” under
these laws.
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable Substitute
Yea 18 Nay 0 (03/24/2023)