Req. No. 10831 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 58th Legislature (2022) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 3056 By: Sims COMMITTEE SUBSTITUTE An Act relating to cities and towns; amending 11 O.S. 2021, Section 56-102, which relates to definitions in the Municipal Campaign Finance and Financial Disclosure Act; modi fying term; amending 11 O.S. 2021, Section 56-103, which relates to munici palities subject to the Municipal Campaign Finance and Financial Disclosure Act; modifying appl icability of act; amending 11 O.S. 2021, Section 56-110, which relates to enforcement, complaints, investigations, penalties and protest of p enalty; clarifying enforcement jurisdiction; setting penalty for violation; enabling court discretion; and providin g an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 11 O.S. 2021, Section 56-102, is amended to read as follows : Section 56-102. A. Definitions of terms used in the Municipa l Campaign Finance and Financial Disclosure Act shall be the same as those terms are defined in Rules of the Ethics Commission promulgated pursuant to Section 3 of Article XXIX of the Oklahoma Constitution, unless othe rwise provided herein. Req. No. 10831 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. As used in the Municipal Campaign Finance and Financial Disclosure Act: 1. "Campaign committee" means a committee which may be composed of one or more persons the purpose of which is to support the election of a specific candida te to municipal office, whose name as it will appear on the ballot shall appear in the name of the committee; 2. "Municipal office" means any elective municipal offic e established under state or municipal law ; and 3. "Municipal political committee" means any committee composed of one or more persons whose purpose includes the election or defeat of one or more candidates for municipal office or municipal questions but which is not required to register with the Ethics Commission or the Federal El ection Commission for this purpose. SECTION 2. AMENDATORY 11 O.S. 2021, Section 56-103, is amended to read as follows : Section 56-103. A. The Municipal Campaign Finance and Financial Disclosure Act shall apply only to municipalities with a population of more than ten thousand (1 0,000) according to the most recent Federal Decennial Census and a general fund ex penditure budget in excess of Ten Million Dollars ($10,000,000.00) in the fiscal year in which the municipal elections are held. Notwithstanding, the requirements provided in this act shall additionally apply to committees and candidates when the Req. No. 10831 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 municipality is not covered by this act based on the population and budget requirements of this subsection, but the candidate or committee expends or receives more than One Thousand Dollars ($1,000.00) in donations or in-kind expenditures. B. A municipality described in subsection A of this section may enact a comprehensive code of campaign finance and personal financial disclosure ordinances, including provisions for enforcement thereof, in which case the Municipal Campaign Finance and Financial Disclosure Act shall not apply to the municipality. Any municipality enacting such a code shall file a notice of its action with the Ethics Commission, which shall have no enforc ement responsibilities under the code. SECTION 3. AMENDATORY 11 O.S. 2021, Section 56-110, is amended to read as follows : Section 56-110. The Municipal Campaign Finance and Financial Disclosure Act shall be enforced by the Ethics Co mmission in the same manner as Rules of the Ethics Commission promulgated pursuant to Section 3 of Article XXIX of the Oklahoma Constit ution are enforced, including but not limited to acceptance of complaints, civil prosecutions, settlement agreements and any other compliance practices or requirements. Complaints may be received by the Ethics Commission alleging filing of statements or r eports required to be filed under the Municipal Campaign Finance and Financial Disclosure Act later than the prescribed t ime for filing. Such complaints Req. No. 10831 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 shall be in the same form as other complaints. Upon receipt of such complaints of late filing, the Et hics Commission shall investigate whether the allegation or allegations are true and, if so, shall assess a late filing p enalty of One Hundred Dollars ($100.00) per day, not to exceed a maximum of One Thousand Dollars ($1,000.00) for the filing of any stat ement or report. If the Ethics Commission determines the allegation or allegations are not true, it shall take no further action. Persons assessed a late filing fee may protest the assessment subject to provisions of the Administrative Procedures Act. The Ethics Commission shall not have enforcement jurisdiction concerning c andidates or committees that are covered by this act based on expenditures alone, as outlined in subsection A of Section 56-103 of this title. Any violation of this act may be prosecuted by the district attorney or a locally adopted policy . An omission or failure to r eport expenditures in compliance with this act shall constitute a misdemeanor with a fine of up to One Hundred Dollars ($100.00) per day, not to exceed a maximum of One Thousand Dollars ($1,000.00). The court shall have discretion as to the fine amount with the intent of the fine to obtain compliance with reporting requirements. Willful noncompliance with the act shall constitute a misdemeanor offense with a fine of One Thousand Dollars ($1,000.00) with the intent of the fine to deter unlawful activity and punish willful offenders. Req. No. 10831 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 4. This act shall become effective November 1, 2022. 58-2-10831 LRB 03/01/22