Req. No. 697 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 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 1st Session of the 59th Legislature (2023) SENATE BILL 1059 By: Bullard AS INTRODUCED An Act relating to campaign finance; amending Rules 2.30, 2.33, 2.35, 2.42, 2.50, 2.5 2, 2.79, 2.98, and 2.99 of the Rules of the Ethics Commission (74 O.S. 2021, Ch. 62, App. I), which relate to candidate committees, limited and unlimited committees, contributions and expenditures, electioneering communications, and political action commit tees; prohibiting certain contributions; prohibiting acceptance of certain contributions; limiting committees eligible to make certain expendi tures; requiring certain officers to be residents of this state; prohibiting certain compensation; limiting committees eligible to make certain communications; modifying allowable purposes for certain committees; requiring certain registration; prohibiting contribution from certain out -of-state committees or organizations; updating outlines; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY Rule 2.30 of the Rules of the Ethics Commission (74 O.S. 2021, Ch. 62, App. I), is amended to read as follows: Rule 2.30. A candidate committee shall not accept a contribution from the aut horized committee of a candidate for federal office. A candidate committee shall not make a contribution to any other candidate for s tate or federal office. Req. No. 697 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 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 2. AMENDATORY Rule 2.33 of the Rules of the Ethics Commission (74 O.S. 2021, Ch. 62, App. I), is amended to read as follows: Rule 2.33. (A) A. No person shall make, and no limited committee shall accept, a contribution to an y limited committee in excess of Five Thousand Dollars ($5,000.00) in any calendar year, except as otherwise permitted by law or these Rules. A contribution to a limited committee that is designated directly or indirectly to be used for the benefit of a p articular candidate or candidates shall be considered a contribution by the contributor to the candidate or candidates. (B) B. No limited committee shall make, and no political party committee shall accept, a contribution to the political party committee in excess of Ten Thousand Dollars ($10,00 0.00) in any calendar year. (C) C. No limited committee or unlimited committee shall make, and no other limited committee or unlimited committee shall accept, a contribution to another limited committee or unlimited committee in excess of Five Thousand Dollars ($5,000.00) in any calendar year. (D) D. No limited committee shall make, and no candidate committee shall accept, a contribution to any candida te committee in excess of Five Thousand Dollars ($5,000.00) prio r to a primary election. Req. No. 697 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (E) E. No limited committee shall make, and no candidate committee shall accept, a contribution to any candidate committee of a candidate whose name will appear on the b allot for a runoff primary election in excess of Five Thousan d Dollars ($5,000.00) prior to a runoff primar y election. Provided, however, after the primary election a limited committee that has made a contribution of Five Thousand Dollars ($5,000.00) or l ess to the candidate committee prior to the primary election may make an additional contribution of no more than Five Thousand Dollars ($5,000.00) to the can didate committee prior to the runoff primary election. (F) F. No limited committee shall make, and no candidate committee shall accept, a contribution to any c andidate committee prior to a general election in excess of Five Thousand Dollars ($5,000.00). Provided, however, after the primary election or runoff primary election, whichever is the last for det ermining a political party’s nominee, a limited committee that has made a contribution of Five Thousand Dollars ($5,000.00) or less to the candidate committee prior to the primary election or runoff primary election, or both, may make an additional contrib ution of no more than Five Thousand Dollars ($5,000.00) t o the candidate committ ee prior to the general election. (G) G. After the general election, a l imited committee that has made no contribution to a candidate or a contribution of less than Five Thousand Dollars ($5,000.00) in the aggregate under the Req. No. 697 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 provisions of subsections (D) D, (E) E or (F) F may make an additional contribution or contributions i n an amount or amounts that, aggregated with any prior contributions, do not exceed Five Thousand Dollars ($5,00 0.00) to that candidate committee. (H) H. No limited committee shall m ake a total contributio n to a candidate in excess of the aggregate contri bution limits of subsections (D) D, (E) E and (F) F or in excess of Five Thousand Dollars ($5,000.00) to the candidate co mmittee of a candidate who is unopposed for election. (I) I. For purposes of this se ction, “contribution” shall include multiple contr ibutions, the amounts of which shall be aggregated. (J) J. A limited committee may make contributions to candidates for county, municipal or school district of fice as permitted by la w. SECTION 3. AMENDATORY Rule 2.35 of the Rules of the Ethics Commission (74 O.S. 2021, Ch. 62, App. I), is amended to read as follows: Rule 2.35. Any person not otherwise prohibited by law, including but not limited to individuals, partnerships, limited liability companies, corporations and labor union s, may A limited committee, partnership, limited liability company, corporati on, or labor union shall not make contributions in any amount t o an unlimited committee organized exclusively for the purpose of making independent expenditures or electioneering communications. An Req. No. 697 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 unlimited committee organized exclusively for the purpose of making independent expenditures or electioneering communica tions may make contributions in any amount to another unlimited co mmittee organized exclusively for the purpose of m aking independent expenditures or electioneering communications. SECTION 4. AMENDATORY Rule 2.42 of the Rules of the Ethics Commission (74 O.S. 2021, Ch. 62, App. I), is amended to read as follows: Rule 2.42. Contributions to an un limited political action committee may be used to make expenditures for independent expenditures or electioneering communications , for contributions to another unlimited politic al action committee organized exclusively for the purpose of making independent expenditures or electioneering communications, for operating expenses of the unlimited committee or for other purposes not otherwise prohibited by law or these Rules that further purposes of the committee. “Purposes of the committee” shall mean purposes expressed in the committee ’s bylaws, articles of organization or similar document or, if there is no such document, in the committee’s statement of organi zation as those purpose s are stated prior to the making of an expenditure. SECTION 5. AMENDATORY Rule 2.50 of the Rules of the Ethics Commission (74 O.S . 2021, Ch. 62, App. I), is amended to read as follows: Req. No. 697 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Rule 2.50. A. An independent expenditure may be made in any amount by a political party committee, by a political action committee or by any other entity not oth erwise prohibited by law or these Rules from making an indep endent expenditure; provided, such committee or entity must be formed and domiciled in this state. The treasurer and compliance officer of such committee or entity shall be residents of this stat e with a valid street address and telephone number where such officers may be reached during working hours. B. An individual or entity who receives compensation directl y or indirectly from an unlimited political ac tion committee that makes an independent expenditure on behalf of a candidate or candidate committee shall not receive compensation direc tly or indirectly from such candidate or candidate committee. Re ceipt of such compensation shall constitute coordinati on prohibited by these Rules. SECTION 6. AMENDATORY Rule 2.52 of the Rules of the Ethics Commission (74 O.S. 2021, Ch. 62, App. I), is amended to read as follows: Rule 2.52. An electioneering communication may be made in any amount by a political party committee, by a political action committee or by any other entity not otherwise prohibite d by law or these Rules from makin g an independent expendit ure; provided, such committee or entity must be formed and domiciled in this state. The treasurer and compliance officer of suc h committee or entity shall Req. No. 697 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 be residents of this state with a valid street address and telephone number where such officers may be reached during working hours. SECTION 7. AMENDATORY Rule 2.79 of the Rules of the Ethics Commission (74 O.S. 2021, Ch. 62, App. I), is amended to read as follows: Rule 2.79. A political action co mmittee is any group of two or more persons that receives contributions o r makes expenditures for any of the following purp oses: (1) 1. Making contributions to candidates or candidate committees; (2) making contributions to other political action commi ttees; (3) making 2. Making independent expenditures; (4) making 3. Making electioneering communications; or (5) advocating 4. Advocating the approval or defeat of a state question. Unless they choose to be considered as suc h, family members, as defined by these Rules, or members of the same household shall not be considered a political action committee. SECTION 8. AMENDATORY R ule 2.98 of the Rules of the Ethics Commission (74 O.S. 2021, Ch. 62, App. I), is amended to read as follows: Rule 2.98. A political action committee registered with the Federal Election Commission that makes a contribution or contributions to a candidate or candidates for state o ffice shall Req. No. 697 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 not be required to register or to file a Report of Contributions and Expenditures with the Co mmission, provided the contribution or contributions are reported to the Federal Election Commission and are available to the public in the same manner as a political action committee registered under the laws of this state. The treasurer and compliance officer of such committee shall be residents of this state with a valid street address and telephone number where such officers may be reached during working hours. SECTION 9. AMENDATORY Rule 2.99 of the Rules of the Ethics Commission (74 O.S. 2021, Ch. 62, App. I), is amended to re ad as follows: Rule 2.99. A political action co mmittee or an organization exempt from taxation pursuant to 26 U.S.C., Section 501 (c)(4), Internal Revenue Code that is registered in another state that makes a contribution or contributions to a candidate or candidates for state office shall file a Report o f Contributions and Ex penditures for Non-Oklahoma Committees but not registered in this state shall be prohibited from making contributions to candidates for any office in this state. SECTION 10. This act shall become effective November 1, 2023. 59-1-697 TEK 1/19/2023 1:12:40 PM