Florida Senate - 2024 SB 884 By Senator Hutson 7-00391B-24 2024884__ 1 A bill to be entitled 2 An act relating to audits of campaign finance reports; 3 amending s. 106.141, F.S.; authorizing certain 4 candidates to request the Division of Elections of the 5 Department of State to audit a specified report; 6 providing that the period for a candidate to dispose 7 of funds and file a report is tolled for a specified 8 timeframe; authorizing candidates to maintain a 9 campaign account during the audit for a specified 10 purpose; amending s. 106.22, F.S.; requiring the 11 division to conduct audits and field investigations 12 with respect to candidates alleged failures to file 13 certain reports or statements; requiring the division 14 to conduct random audits of specified reports after 15 each general election cycle; providing that the 16 auditing must consist of a certain percentage of all 17 qualified candidates in specified office groups; 18 requiring the division to adopt specified rules by a 19 certain date; requiring treasurers of specified 20 entities to maintain valid contact information with 21 the division for a specified timeframe; exempting 22 aspects of the auditing process from the 23 Administrative Procedure Act; amending s. 106.021, 24 F.S.; conforming a cross-reference; reenacting and 25 amending s. 106.07, F.S.; conforming a cross 26 reference; reenacting ss. 106.11(5)(d) and 717.1235, 27 F.S., relating to disposition of surplus funds for 28 individuals who withdrew, became unopposed, or were 29 eliminated as candidates and the disposition of funds 30 in certain dormant campaign accounts, respectively, to 31 incorporate the amendment made to s. 106.141, F.S., in 32 references thereto; providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1.Present subsections (2) through (11) of section 37 106.141, Florida Statutes, are redesignated as subsections (3) 38 through (12), respectively, a new subsection (2) is added to 39 that section, and subsection (1), present subsection (5), 40 paragraph (b) of present subsection (6), present subsection (7), 41 paragraph (a) of present subsection (8), and present subsection 42 (9) are amended, to read: 43 106.141Disposition of surplus funds by candidates. 44 (1)Except as provided in subsection (7) (6), each 45 candidate who withdraws his or her candidacy, becomes an 46 unopposed candidate, or is eliminated as a candidate or elected 47 to office shall, within 90 days, dispose of the funds on deposit 48 in his or her campaign account and file a report reflecting the 49 disposition of all remaining funds. Such candidate may not 50 accept any contributions, nor may any person accept 51 contributions on behalf of such candidate, after the candidate 52 withdraws his or her candidacy, becomes unopposed, or is 53 eliminated or elected. However, if a candidate receives a refund 54 check after all surplus funds have been disposed of, the check 55 may be endorsed by the candidate and the refund disposed of 56 under this section. An amended report must be filed showing the 57 refund and subsequent disposition. 58 (2)A candidate required to dispose of funds pursuant to 59 this section may, before such disposition, request that the 60 division audit the report required by subsection (1). The 90-day 61 period to dispose of funds and file the report is tolled until 62 10 business days after the divisions audit is final. The 63 candidate may maintain the campaign account during such audit 64 for the sole purpose of making expenditures to correct audit 65 findings. 66 (6)(5)A candidate elected to office or a candidate who 67 will be elected to office by virtue of his or her being 68 unopposed may, in addition to the disposition methods provided 69 in subsection (5) (4), transfer from the campaign account to an 70 office account any amount of the funds on deposit in such 71 campaign account up to: 72 (a)Fifty thousand dollars, for a candidate for statewide 73 office. The Governor and Lieutenant Governor shall be considered 74 separate candidates for the purpose of this section. 75 (b)Ten thousand dollars, for a candidate for multicounty 76 office. 77 (c)Ten thousand dollars multiplied by the number of years 78 in the term of office for which elected, for a candidate for 79 legislative office. 80 (d)Five thousand dollars multiplied by the number of years 81 in the term of office for which elected, for a candidate for 82 county office or for a candidate in any election conducted on 83 less than a countywide basis. 84 (e)Six thousand dollars, for a candidate for retention as 85 a justice of the Supreme Court. 86 (f)Three thousand dollars, for a candidate for retention 87 as a judge of a district court of appeal. 88 (g)Three thousand dollars, for a candidate for county 89 court judge or circuit judge. 90 91 The office account established pursuant to this subsection shall 92 be separate from any personal or other account. Any funds so 93 transferred by a candidate shall be used only for legitimate 94 expenses in connection with the candidates public office. Such 95 expenses may include travel expenses incurred by the officer or 96 a staff member; personal taxes payable on office account funds 97 by the candidate or elected public official; professional 98 services provided by a certified public accountant or attorney 99 for preparation of the elected public officials financial 100 disclosure filing pursuant to s. 112.3144 or s. 112.3145; costs 101 to prepare, print, produce, and mail holiday cards or 102 newsletters about the elected public officials public business 103 to constituents if such correspondence does not constitute a 104 political advertisement, independent expenditure, or 105 electioneering communication as provided in s. 106.011; fees or 106 dues to religious, civic, or charitable organizations of which 107 the elected public official is a member; items of modest value 108 such as flowers, greeting cards, or personal notes given as a 109 substitute for, or in association with, an elected public 110 officials personal attendance at a constituents special event 111 or family occasion, such as the birth of a child, graduation, 112 wedding, or funeral; personal expenses incurred by the elected 113 public official in connection with attending a constituent 114 meeting or event where public policy is discussed, if such 115 meetings or events are limited to no more than once a week; or 116 expenses incurred in the operation of the elected public 117 officials office, including the employment of additional staff. 118 The funds may be deposited in a savings account; however, all 119 deposits, withdrawals, and interest earned thereon shall be 120 reported at the appropriate reporting period. If a candidate is 121 reelected to office or elected to another office and has funds 122 remaining in his or her office account, he or she may transfer 123 surplus campaign funds to the office account. At no time may the 124 funds in the office account exceed the limitation imposed by 125 this subsection. Upon leaving public office, any person who has 126 funds in an office account pursuant to this subsection remaining 127 on deposit shall use such funds to pay for professional services 128 provided by a certified public accountant or attorney for 129 preparation of the elected public officials final financial 130 disclosure filing pursuant to s. 112.3144 or s. 112.3145, or 131 give such funds to a charitable organization that meets the 132 requirements of s. 501(c)(3) of the Internal Revenue Code or, in 133 the case of a state officer, to the state to be deposited in the 134 General Revenue Fund or, in the case of an officer of a 135 political subdivision, to the political subdivision to be 136 deposited in the general fund thereof. 137 (7)(6) 138 (b)A candidate elected to state office or a candidate who 139 will be elected to state office by virtue of his or her being 140 unopposed after candidate qualifying ends, may retain up to 141 $20,000 in his or her campaign account, or in an interest 142 bearing account or certificate of deposit, for use in his or her 143 next campaign for the same office, in addition to the 144 disposition methods provided in subsections (5) (4) and (6) (5). 145 All requirements applicable to candidate campaign accounts under 146 this chapter, including disclosure requirements applicable to 147 candidate campaign accounts, limitations on expenditures, and 148 limitations on contributions, apply to any retained funds. 149 (8)(7)Before disposing of funds pursuant to subsection (5) 150 (4), transferring funds into an office account pursuant to 151 subsection (6) (5), or retaining funds for reelection pursuant 152 to subsection (7) (6), any candidate who filed an oath stating 153 that he or she was unable to pay the fee for verification of 154 petition signatures without imposing an undue burden on his or 155 her personal resources or on resources otherwise available to 156 him or her shall reimburse the state or local governmental 157 entity, whichever is applicable, for such waived fee. If there 158 are insufficient funds in the account to pay the full amount of 159 the fee, the remaining funds shall be disbursed in the above 160 manner until no funds remain. All funds disbursed pursuant to 161 this subsection shall be remitted to the qualifying officer. Any 162 reimbursement for petition verification costs which are 163 reimbursable by the state shall be forwarded by the qualifying 164 officer to the state for deposit in the General Revenue Fund. 165 (9)(8)(a)Any candidate required to dispose of campaign 166 funds pursuant to this section shall do so within the time 167 required by this section and, on or before the date by which 168 such disposition is to have been made, shall file with the 169 officer with whom reports are required to be filed pursuant to 170 s. 106.07 a form prescribed by the Division of Elections 171 listing: 172 1.The name and address of each person or unit of 173 government to whom any of the funds were distributed and the 174 amounts thereof; 175 2.The name and address of each person to whom an 176 expenditure was made, together with the amount thereof and 177 purpose therefor; 178 3.The amount of such funds transferred to an office 179 account by the candidate, together with the name and address of 180 the bank, savings and loan association, or credit union in which 181 the office account is located; and 182 4.The amount of such funds retained pursuant to subsection 183 (7) (6), together with the name and address of the bank, savings 184 and loan association, or credit union in which the retained 185 funds are located. 186 187 Such report shall be signed by the candidate and the campaign 188 treasurer and certified as true and correct pursuant to s. 189 106.07. 190 (10)(9)Any candidate elected to office who transfers 191 surplus campaign funds into an office account pursuant to 192 subsection (6) (5) shall file a report on the 10th day following 193 the end of each calendar quarter until the account is closed. 194 Such reports shall contain the name and address of each person 195 to whom any disbursement of funds was made, together with the 196 amount thereof and the purpose therefor, and the name and 197 address of any person from whom the elected candidate received 198 any refund or reimbursement and the amount thereof. Such reports 199 shall be on forms prescribed by the Division of Elections, 200 signed by the elected candidate, certified as true and correct, 201 and filed with the officer with whom campaign reports were filed 202 pursuant to s. 106.07(2). 203 Section 2.Subsections (6) and (10) of section 106.22, 204 Florida Statutes, are amended to read: 205 106.22Duties of the Division of Elections.It is the duty 206 of the Division of Elections to: 207 (6)Conduct Make, from time to time, audits and field 208 investigations with respect to reports and statements filed 209 under the provisions of this chapter and with respect to alleged 210 failures to file any report or statement required under the 211 provisions of this chapter. The division shall conduct a 212 postelection audit of the campaign accounts of all candidates 213 receiving contributions from the Election Campaign Financing 214 Trust Fund. 215 (10)(a)Conduct random audits of with respect to reports 216 and statements filed under this chapter after each general 217 election cycle and with respect to alleged failure to file any 218 reports and statements required under this chapter. The audits 219 must be of a random sample of 3 percent of: 220 1.All qualified candidates in each of the following office 221 groups: 222 a.State. 223 b.Judicial. 224 c.Multicounty. 225 d.Special district. 226 2.All political committees. 227 3.All electioneering communication organizations. 228 (b)The division shall adopt rules governing the sample 229 selection process by October 1, 2024. 230 (c)The treasurer of each candidate, political committee, 231 or electioneering communication organization shall maintain 232 valid contact information with the division until the division 233 determines that the candidate, political committee, or 234 electioneering communication organization has not been selected 235 for an audit, or, if selected, until completion of the audit. 236 (d)The selection of a candidate, political committee, or 237 electioneering communication organization for audit and the 238 process by which the candidate, political committee, or 239 electioneering communication organization was selected are 240 exempt from chapter 120. 241 Section 3.Paragraph (a) of subsection (1) of section 242 106.021, Florida Statutes, is amended to read: 243 106.021Campaign treasurers; deputies; primary and 244 secondary depositories. 245 (1)(a)Each candidate for nomination or election to office 246 and each political committee shall appoint a campaign treasurer. 247 Each person who seeks to qualify for nomination or election to, 248 or retention in, office shall appoint a campaign treasurer and 249 designate a primary campaign depository before qualifying for 250 office. Any person who seeks to qualify for election or 251 nomination to any office by means of the petitioning process 252 shall appoint a treasurer and designate a primary depository on 253 or before the date he or she obtains the petitions. At the same 254 time a candidate designates a campaign depository and appoints a 255 treasurer, the candidate shall also designate the office for 256 which he or she is a candidate. If the candidate is running for 257 an office that will be grouped on the ballot with two or more 258 similar offices to be filled at the same election, the candidate 259 must indicate for which group or district office he or she is 260 running. This subsection does not prohibit a candidate, at a 261 later date, from changing the designation of the office for 262 which he or she is a candidate. However, if a candidate changes 263 the designated office for which he or she is a candidate, the 264 candidate must notify all contributors in writing of the intent 265 to seek a different office and offer to return pro rata, upon 266 their request, those contributions given in support of the 267 original office sought. This notification shall be given within 268 15 days after the filing of the change of designation and shall 269 include a standard form developed by the Division of Elections 270 for requesting the return of contributions. The notice 271 requirement does not apply to any change in a numerical 272 designation resulting solely from redistricting. If, within 30 273 days after being notified by the candidate of the intent to seek 274 a different office, the contributor notifies the candidate in 275 writing that the contributor wishes his or her contribution to 276 be returned, the candidate shall return the contribution, on a 277 pro rata basis, calculated as of the date the change of 278 designation is filed. Up to a maximum of the contribution limits 279 specified in s. 106.08, a candidate who runs for an office other 280 than the office originally designated may use any contribution 281 that a donor does not request be returned within the 30-day 282 period for the newly designated office, provided the candidate 283 disposes of any amount exceeding the contribution limit pursuant 284 to the options in s. 106.11(5)(b) and (c) or s. 106.141(5)(a)1., 285 2., or 4. s. 106.141(4)(a)1., 2., or 4.; notwithstanding, the 286 full amount of the contribution for the original office shall 287 count toward the contribution limits specified in s. 106.08 for 288 the newly designated office. A person may not accept any 289 contribution or make any expenditure with a view to bringing 290 about his or her nomination, election, or retention in public 291 office, or authorize another to accept such contributions or 292 make such expenditure on the persons behalf, unless such person 293 has appointed a campaign treasurer and designated a primary 294 campaign depository. A candidate for an office voted upon 295 statewide may appoint not more than 15 deputy campaign 296 treasurers, and any other candidate or political committee may 297 appoint not more than 3 deputy campaign treasurers. The names 298 and addresses of the campaign treasurer and deputy campaign 299 treasurers so appointed shall be filed with the officer before 300 whom such candidate is required to qualify or with whom such 301 political committee is required to register pursuant to s. 302 106.03. 303 Section 4.Paragraph (b) of subsection (8) of section 304 106.07, Florida Statutes, is amended, and paragraph (c) of 305 subsection (1) of that section is reenacted, to read: 306 106.07Reports; certification and filing. 307 (1)Each campaign treasurer designated by a candidate or 308 political committee pursuant to s. 106.021 shall file regular 309 reports of all contributions received, and all expenditures 310 made, by or on behalf of such candidate or political committee. 311 Except for the third calendar quarter immediately preceding a 312 general election, reports must be filed on the 10th day 313 following the end of each calendar quarter from the time the 314 campaign treasurer is appointed, except that, if the 10th day 315 following the end of a calendar quarter occurs on a Saturday, 316 Sunday, or legal holiday, the report must be filed on the next 317 following day that is not a Saturday, Sunday, or legal holiday. 318 Quarterly reports must include all contributions received and 319 expenditures made during the calendar quarter which have not 320 otherwise been reported pursuant to this section. 321 (c)Following the last day of qualifying for office, any 322 unopposed candidate need only file a report within 90 days after 323 the date such candidate became unopposed. Such report shall 324 contain all previously unreported contributions and expenditures 325 as required by this section and shall reflect disposition of 326 funds as required by s. 106.141. 327 (8) 328 (b)Upon determining that a report is late, the filing 329 officer shall immediately notify the candidate or chair of the 330 political committee as to the failure to file a report by the 331 designated due date and that a fine is being assessed for each 332 late day. The fine is $50 per day for the first 3 days late and, 333 thereafter, $500 per day for each late day, not to exceed 25 334 percent of the total receipts or expenditures, whichever is 335 greater, for the period covered by the late report. However, for 336 the reports immediately preceding each special primary election, 337 special election, primary election, and general election, the 338 fine is $500 per day for each late day, not to exceed 25 percent 339 of the total receipts or expenditures, whichever is greater, for 340 the period covered by the late report. For reports required 341 under s. 106.141(9) s. 106.141(8), the fine is $50 per day for 342 each late day, not to exceed 25 percent of the total receipts or 343 expenditures, whichever is greater, for the period covered by 344 the late report. Upon receipt of the report, the filing officer 345 shall determine the amount of the fine which is due and shall 346 notify the candidate or chair or registered agent of the 347 political committee. The filing officer shall determine the 348 amount of the fine due based upon the earliest of the following: 349 1.When the report is actually received by such officer. 350 2.When the report is postmarked. 351 3.When the certificate of mailing is dated. 352 4.When the receipt from an established courier company is 353 dated. 354 5.When the electronic receipt issued pursuant to s. 355 106.0705 or other electronic filing system authorized in this 356 section is dated. 357 358 Such fine shall be paid to the filing officer within 20 days 359 after receipt of the notice of payment due, unless appeal is 360 made to the Florida Elections Commission pursuant to paragraph 361 (c). Notice is deemed complete upon proof of delivery of written 362 notice to the mailing or street address on record with the 363 filing officer. In the case of a candidate, such fine is not an 364 allowable campaign expenditure and shall be paid only from 365 personal funds of the candidate. An officer or member of a 366 political committee is not personally liable for such fine. 367 Section 5.For the purpose of incorporating the amendment 368 made by this act to section 106.141, Florida Statutes, in a 369 reference thereto, paragraph (d) of subsection (5) of section 370 106.11, Florida Statutes, is reenacted to read: 371 106.11Expenses of and expenditures by candidates and 372 political committees.Each candidate and each political 373 committee which designates a primary campaign depository 374 pursuant to s. 106.021(1) shall make expenditures from funds on 375 deposit in such primary campaign depository only in the 376 following manner, with the exception of expenditures made from 377 petty cash funds provided by s. 106.12: 378 (5)A candidate who withdraws his or her candidacy, becomes 379 an unopposed candidate, or is eliminated as a candidate or 380 elected to office may expend funds from the campaign account to: 381 (d)Dispose of surplus funds as provided in s. 106.141. 382 Section 6.For the purpose of incorporating the amendment 383 made by this act to section 106.141, Florida Statutes, in a 384 reference thereto, section 717.1235, Florida Statutes, is 385 reenacted to read: 386 717.1235Dormant campaign accounts; report of unclaimed 387 property.Unclaimed funds reported in the name of a campaign for 388 public office, for any campaign that must dispose of surplus 389 funds in its campaign account pursuant to s. 106.141, after 390 being reported to the department, shall be deposited with the 391 Chief Financial Officer to the credit of the State School Fund. 392 Section 7.This act shall take effect upon becoming a law.