Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0327 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0327
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7	7	LC001700
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO ELECTIONS -- RHODE ISLAND CAMPAIGN CONTRIBUTIO NS AND
16	16	EXPENDITURES REPORTING
17	17	Introduced By: Senators Lawson, DiMario, F. Lombardi, Euer, McKenney, LaMountain,
18	18	Britto, and Mack
19	19	Date Introduced: February 16, 2023
20	20	Referred To: Senate Judiciary
21	21
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Section 17-25-3 of the General Laws in Chapter 17-25 entitled "Rhode Island 1
25	25	Campaign Contributions and Expenditures Reporting" is hereby amended to read as follows: 2
26	26	17-25-3. Definitions. 3
27	27	As used in this chapter, unless a different meaning clearly appears from the context: 4
28	28	(1) “Business entity” means any corporation, whether for profit or not for profit, domestic 5
29	29	corporation or foreign corporation, as defined in § 7-1.2-106, financial institution, cooperative, 6
30	30	association, receivership, trust, holding company, firm, joint stock company, public utility, sole 7
31	31	proprietorship, partnership, limited partnership, or any other entity recognized by the laws of the 8
32	32	United States and/or the state of Rhode Island for the purpose of doing business. The term “business 9
33	33	entity” shall not include a political action committee organized pursuant to this chapter or a political 10
34	34	party committee or an authorized campaign committee of a candidate or office holder. The term 11
35	35	“business entity” shall not include any exempt nonprofit as defined herein or any organization 12
36	36	described in § 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding 13
37	37	internal revenue code of the United States, as amended from time to time, for the purposes of 14
38	38	chapter 25.3 of title 17. 15
39	39	(2) “Candidate” means any individual who undertakes any action, whether preliminary or 16
40	40	final, which is necessary under the law to qualify for nomination for election or election to public 17
41	41	office, and/or any individual who receives a contribution or makes an expenditure, or gives his or 18
42	42
43	43
44	44	LC001700 - Page 2 of 14
45	45	her consent for any other person to receive a contribution or make an expenditure, with a view to 1
46	46	bringing about his or her nomination or election to any public office, whether or not the specific 2
47	47	public office for which he or she will seek nomination or election is known at the time the 3
48	48	contribution is received or the expenditure is made and whether or not he or she has announced his 4
49	49	or her candidacy or filed a declaration of candidacy at that time. 5
50	50	(3) “Conduit” or “intermediary” means any person who receives and forwards an 6
51	51	earmarked contribution to a candidate or a candidate’s authorized committee, except as otherwise 7
52	52	limited in this chapter. 8
53	53	(4) “Contributions” and “expenditures” include all transfers of money, credit or debit card 9
54	54	transactions, on-line or electronic payment systems such as “pay pal,” paid personal services, or 10
55	55	other thing of value to or by any candidate, committee of a political party, or political action 11
56	56	committee or ballot question advocate. A loan shall be considered a contribution of money until it 12
57	57	is repaid. 13
58	58	(5) “Earmarked” means a designation, instruction, or encumbrance, whether direct or 14
59	59	indirect, express or implied, oral or written, that results in all or any part of a contribution or 15
60	60	expenditure being made to, or expended on behalf of, a clearly identified candidate or a candidate’s 16
61	61	authorized committee. 17
62	62	(6) “Election” means any primary, general, or special election or town meeting for any 18
63	63	public office of the state, municipality, or district, or for the determination of any question 19
64	64	submitted to the voters of the state, municipality, or district. 20
65	65	(7) “Election cycle” means the twenty-four month (24) period commencing on January 1 21
66	66	of odd number years and ending on December 31 of even number years; provided, with respect to 22
67	67	the public financing of election campaigns of general officers under §§ 17-25-19, 17-25-20, and 23
68	68	17-25-25, “election cycle” means the forty-eight month (48) period commencing on January 1 of 24
69	69	odd numbered years and ending December 31 of even numbered years. 25
70	70	(8) "Electronic mail" or "email" means communication, information or messages 26
71	71	distributed by electronic means from a computer, a cell phone or other electronic device to one or 27
72	72	more recipients via a network. 28
73	73	(8)(9) “In-kind contributions” means the monetary value of other things of value or paid 29
74	74	personal services donated to, or benefiting, any person required to file reports with the board of 30
75	75	elections. 31
76	76	(9)(10) “Other thing of value” means any item of tangible real or personal property of a 32
77	77	fair-market value in excess of one hundred dollars ($100). 33
78	78	(10)(11) “Paid personal services” means personal services of every kind and nature, the 34
79	79
80	80
81	81	LC001700 - Page 3 of 14
82	82	cost or consideration for which is paid or provided by someone other than the committee or 1
83	83	candidate for whom the services are rendered, but shall not include personal services provided 2
84	84	without compensation by persons volunteering their time. 3
85	85	(12) "Messaging" means digital communication. 4
86	86	(11)(13) “Person” means an individual, partnership, committee, association, corporation, 5
87	87	union, charity, and/or any other organization. The term “person” shall not include any exempt 6
88	88	nonprofit as defined herein or any organization described in § 501(c)(3) of the Internal Revenue 7
89	89	Code of 1986, or any subsequent corresponding internal revenue code of the United States, as 8
90	90	amended from time to time, for the purposes of chapter 25.3 of title 17 only. 9
91	91	(12)(14) “Political action committee” means any group of two (2) or more persons that 10
92	92	accepts any contributions to be used for advocating the election or defeat of any candidate or 11
93	93	candidates. Only political action committees that have accepted contributions from fifteen (15) or 12
94	94	more persons in amounts of ten dollars ($10.00) or more within an election cycle shall be permitted 13
95	95	to make contributions, and those committees must make contributions to at least five (5) candidates 14
96	96	for state or local office within an election cycle. 15
97	97	(13)(15) “Public office” means any state, municipal, school, or district office or other 16
98	98	position that is filled by popular election, except political party offices. “Political party offices” 17
99	99	means any state, city, town, ward, or representative or senatorial district committee office of a 18
100	100	political party or delegate to a political party convention, or any similar office. 19
101	101	(14)(16) “State” means state of Rhode Island. 20
102	102	(15)(17) “Testimonial affair” means an affair of any kind or nature including, but not 21
103	103	limited to, cocktail parties, breakfasts, luncheons, dinners, dances, picnics, or similar affairs 22
104	104	expressly and directly intended to raise campaign funds in behalf of a candidate to be used for 23
105	105	nomination or election to a public office in this state, or expressly and directly intended to raise 24
106	106	funds in behalf of any state or municipal committee of a political party, or expressly and directly 25
107	107	intended to raise funds in behalf of any political action committee. 26
108	108	(18) "Text" means an electronic communication sent by and reviewed by a cell or mobile 27
109	109	phone. 28
110	110	(16)(19) “Electioneering communication” means any print, broadcast, cable, satellite, or 29
111	111	electronic media communication not coordinated, as set forth in § 17-25-23, with any candidate, 30
112	112	authorized candidate campaign committee, or political party committee and that unambiguously 31
113	113	identifies a candidate or referendum and is made either within sixty (60) days before a general or 32
114	114	special election or town meeting for the office sought by the candidate or referendum; or thirty (30) 33
115	115	days before a primary election, for the office sought by the candidate; and is targeted to the relevant 34
116	116
117	117
118	118	LC001700 - Page 4 of 14
119	119	electorate. 1
120	120	(i) A communication, to include, but not limited to, electronic mail (email), a text or any 2
121	121	communication or messaging sent over the Internet, that refers to a clearly identified candidate or 3
122	122	referendum is “targeted to the relevant electorate” if the communication can be received by two 4
123	123	thousand (2,000) or more persons in the district the candidate seeks to represent or the constituency 5
124	124	voting on the referendum. 6
125	125	(ii) Exceptions: The term “electioneering communication” does not include: 7
126	126	(A) A communication appearing in a news story, commentary, or editorial distributed 8
127	127	through the facilities of any broadcasting station, unless such facilities are owned or controlled by 9
128	128	any political party, political committee, or candidate; 10
129	129	(B) A communication that constitutes a candidate debate or forum conducted pursuant to 11
130	130	regulations adopted by the board of elections or that solely promotes such a debate or forum and is 12
131	131	made by or on behalf of the person sponsoring the debate or forum; 13
132	132	(C) A communication made by any business entity to its members, owners, stockholders, 14
133	133	or employees; 15
134	134	(D) A communication over the internet, except for (I) Communications placed for a fee on 16
135	135	the website of another person, business entity, or political action committee; and (II) Websites 17
136	136	formed primarily for the purpose, or whose primary purpose is, to expressly advocate the election 18
137	137	or defeat of a clearly identified candidate or the passage or defeat of a referendum; or (III) an 19
138	138	electronic mail or Internet communication provided pursuant to subsection (19)(i) of this section; 20
139	139	or 21
140	140	(E) Any other communication exempted under such regulations as the board of elections 22
141	141	may promulgate (consistent with the requirements of this paragraph) to ensure the appropriate 23
142	142	implementation of this paragraph. 24
143	143	(17)(20) “Independent expenditure” means an expenditure that, when taken as a whole, 25
144	144	expressly advocates the election or defeat of a clearly identified candidate, or the passage or defeat 26
145	145	of a referendum, or amounts to the functional equivalent of such express advocacy, and is in no 27
146	146	way coordinated, as set forth in § 17-25-23, with any candidate’s campaign, authorized candidate 28
147	147	committee, or political party committee. An expenditure amounts to the functional equivalent of 29
148	148	express advocacy if it can only be interpreted by a reasonable person as advocating the election, 30
149	149	passage, or defeat of a candidate or referendum, taking into account whether the communication 31
150	150	mentions a candidate or referendum and takes a position on a candidate’s character, qualifications, 32
151	151	or fitness for office. An independent expenditure is not a contribution to that candidate or 33
152	152	committee. 34
153	153
154	154
155	155	LC001700 - Page 5 of 14
156	156	(i) Exceptions: The term “independent expenditure” does not include: 1
157	157	(A) A communication appearing in a news story, commentary, or editorial distributed 2
158	158	through the facilities of any broadcasting station, unless such facilities are owned or controlled by 3
159	159	any political party, political committee, or candidate; 4
160	160	(B) A communication that constitutes a candidate debate or forum conducted pursuant to 5
161	161	regulations adopted by the board of elections or that solely promotes such a debate or forum and is 6
162	162	made by or on behalf of the person sponsoring the debate or forum; 7
163	163	(C) A communication made by any business entity to its members, owners, stockholders, 8
164	164	or employees; 9
165	165	(D) A communication over the internet, except for (I) Communications placed for a fee on 10
166	166	the website of another person, business entity, or political action committee; and (II) Websites 11
167	167	formed primarily for the purpose, or whose primary purpose is, to expressly advocate the election 12
168	168	or defeat of a clearly identified candidate or the passage or defeat of a referendum; or 13
169	169	(E) Any other communication exempted under such regulations as the board of elections 14
170	170	may promulgate (consistent with the requirements of this paragraph) to ensure the appropriate 15
171	171	implementation of this paragraph. 16
172	172	(18)(21) “Covered transfer” means any transfer or payment of funds by any person, 17
173	173	business entity, or political action committee to another person, business entity, or political action 18
174	174	committee if the person, business entity, or political action committee making the transfer: (i) 19
175	175	Designates, requests, or suggests that the amounts be used for independent expenditures or 20
176	176	electioneering communications or making a transfer to another person for the purpose of making 21
177	177	or paying for such independent expenditures or electioneering communications; (ii) Made such 22
178	178	transfer or payment in response to a solicitation or other request for a transfer or payment for the 23
179	179	making of or paying for independent expenditures or electioneering communications or making a 24
180	180	transfer to another person for the purpose of making or paying for such independent expenditures 25
181	181	or electioneering communications; (iii) Engaged in discussions with the recipient of the transfer or 26
182	182	payment regarding independent expenditures or electioneering communications or making a 27
183	183	transfer to another person for the purpose of making or paying for such independent expenditures 28
184	184	or electioneering communications; or (iv) Made independent expenditures or electioneering 29
185	185	communications in an aggregate amount of five thousand dollars ($5,000) or more during the two-30
186	186	year (2) period ending on the date of the transfer or payment, or knew or had reason to know that 31
187	187	the person receiving the transfer or payment made such independent expenditures or electioneering 32
188	188	communications in such an aggregate amount during that two-year (2) period. 33
189	189	(A) Exceptions: The term “covered transfer” does not include: 34
190	190
191	191
192	192	LC001700 - Page 6 of 14
193	193	(I) A transfer or payment made by a person, business entity, or political action committee 1
194	194	in the ordinary course of any trade or business conducted by the person, business entity, or political 2
195	195	action committee or in the form of investments made by the person, business entity, or political 3
196	196	action committee; or 4
197	197	(II) A transfer or payment made by a person, business entity, or political action committee 5
198	198	if the person, business entity, or political action committee making the transfer prohibited, in 6
199	199	writing, the use of such transfer or payment for independent expenditures, electioneering 7
200	200	communications, or covered transfers and the recipient of the transfer or payment agreed to follow 8
201	201	the prohibition and deposited the transfer or payment in an account that is segregated from any 9
202	202	account used to make independent expenditures, electioneering communications, or covered 10
203	203	transfers. 11
204	204	(19)(22) For the purposes of chapter 25.3 of title 17, “donation” means all transfers of 12
205	205	money, credit or debit card transactions, on-line or electronic payment systems such as “pay pal,” 13
206	206	paid personal services, or other thing of value to or by any person, business entity, or political 14
207	207	action committee. A loan shall be considered a donation of money until it is repaid. 15
208	208	(20)(23) For the purposes of chapter 25.3 of title 17, “donor” means a person, business 16
209	209	entity, or political action committee that makes a donation. 17
210	210	(21)(24) “Exempt nonprofit” means any organization described in § 501(c)(4) of the 18
211	211	Internal Revenue Code that spends an aggregate annual amount of no more than ten percent (10%) 19
212	212	of its annual expenses or no more than fifteen thousand dollars ($15,000), whichever is less, on 20
213	213	independent expenditures, electioneering communications, and covered transfers as defined herein 21
214	214	and certifies the same to the board of elections seven (7) days before and after a primary election 22
215	215	and seven (7) days before and after a general or special election. 23
216	216	(22)(25) For purposes of chapter 25.3 of title 17, “referendum” means the same as the 24
217	217	definition set forth in § 17-5-1. 25
218	218	SECTION 2. Chapter 17-25.3 of the General Laws entitled "Independent Expenditures and 26
219	219	Electioneering Communications" is hereby amended by adding thereto the following section: 27
220	220	17-25.3-5. Definitions. 28
221	221	As used in this chapter, words and terms shall have the same meaning as defined in § 17-29
222	222	25-3. 30
223	223	SECTION 3. Sections 17-25.3-1, 17-25.3-2, 17-25.3-3 and 17-25.3-4 of the General Laws 31
224	224	in Chapter 17-25.3 entitled "Independent Expenditures and Electioneering Communications" are 32
225	225	hereby amended to read as follows: 33
226	226	17-25.3-1. Independent expenditures and electioneering communications for 34
227	227
228	228
229	229	LC001700 - Page 7 of 14
230	230	elections. 1
231	231	(a) It shall be lawful for any person, business entity or political action committee, not 2
232	232	otherwise prohibited by law and not acting in coordination with a candidate, authorized candidate 3
233	233	campaign committee, political action committee, or political party committee, to expend personally 4
234	234	from that person’s own funds a sum which is not to be repaid to him or her for any purpose not 5
235	235	prohibited by law to support or defeat a candidate or referendum. Whether a person, business entity 6
236	236	or political action committee is “acting in coordination with a candidate, authorized candidate 7
237	237	campaign committee, political action committee or political party committee” for the purposes of 8
238	238	this subsection shall be determined by application of the standards set forth in § 17-25-23. All terms 9
239	239	used in this chapter shall have the same meaning as defined in § 17-25-3. 10
240	240	(b) Any person, business entity or political action committee making independent 11
241	241	expenditures, electioneering communications, including electronic mail or text, or covered 12
242	242	transfers shall report all such campaign finance expenditures and expenses to the board of elections, 13
243	243	provided the total of the money so expended exceeds one thousand dollars ($1,000) within a 14
244	244	calendar year, to the board of elections within seven (7) days of making the expenditure. 15
245	245	(c) A person, business entity or political action committee who makes or contracts to make 16
246	246	independent expenditures, electioneering communications, including electronic mail or text, or 17
247	247	covered transfers with an aggregate value of one thousand dollars ($1,000) or more shall 18
248	248	electronically file a campaign finance report to the board of elections describing the expenditures. 19
249	249	For purposes of the provisions of this section, an electronic mail (email), text or Internet 20
250	250	communication which can be received by two thousand (2,000) or more persons shall be presumed 21
251	251	to have an aggregate value in excess of one thousand dollars ($1,000). 22
252	252	(d) After a person, business entity or political action committee files a report under 23
253	253	subsection (b), the person, business entity or political action committee shall file an additional 24
254	254	report after each time the person, business entity or political action committee makes or contracts 25
255	255	to make independent expenditures, electioneering communications, including electronic mail or 26
256	256	text, or covered transfers aggregating an additional one thousand dollars ($1,000) with respect to 27
257	257	the same election as that to which the initial report relates. 28
258	258	(e) When a report is required by subsection (c) or (d) of this section within thirty (30) days 29
259	259	prior to the election to which the expenditure was directed, it shall be filed within twenty-four (24) 30
260	260	hours of the expenditure. When such a report is required at any other time, it shall be filed within 31
261	261	seven (7) days after the expenditure. 32
262	262	(f) Reports of independent expenditures, electioneering communications, including 33
263	263	electronic mail or text, or covered transfers by a person shall contain the name, street address, city, 34
264	264
265	265
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267	267	state, zip code, occupation, employer (if self-employed, the name and place of business), of the 1
268	268	person responsible for the expenditure, the name, street address, city, state, and zip code of the 2
269	269	person receiving the expenditure the date and amount of each expenditure, and the year to date 3
270	270	total. 4
271	271	(g) The report shall also include a statement identifying the candidate or referendum that 5
272	272	the independent expenditure or electioneering communication including electronic mail or text, is 6
273	273	intended to promote the success or defeat, and affirm under penalty of false statement that the 7
274	274	expenditure is not coordinated with the campaign in question, and provide any information that the 8
275	275	board of elections requires to facilitate compliance with the provisions of this chapter. 9
276	276	(h) Reports of independent expenditures, electioneering communications, including 10
277	277	electronic mail or text, or covered transfers by a person, business entity or political action 11
278	278	committee shall also disclose the identity of all donors of an aggregate of one thousand dollars 12
279	279	($1,000) or more to such person, business entity or committee within the current election cycle, if 13
280	280	applicable, unless the person, business entity or political action committee has established a 14
281	281	separate campaign-related account for independent expenditures, electioneering communications, 15
282	282	including electronic mail or text, and covered transfers as detailed in § 17-25.3-2 in which case this 16
283	283	paragraph applies only to donors to the person’s, business entity’s or political action committee’s 17
284	284	separate campaign-related account; provided that no person, business entity, or political action 18
285	285	committee shall be required to disclose in a report to the board of elections the identity, which 19
286	286	includes name, address, place of employment, and donation amount, of any donor who makes no 20
287	287	donation to such person, business entity, or political action committee after the date of enactment 21
288	288	of this section. 22
289	289	(i) If a person, business entity or political action committee and a donor mutually agree, at 23
290	290	the time a donation, payment, or transfer to the person, business entity or political action committee 24
291	291	which is required to disclose the identification under subsection (f) that the person, business entity 25
292	292	or political action committee will not use the donation, payment, or transfer for independent 26
293	293	expenditures, electioneering communications, including electronic mail or text, or covered 27
294	294	transfers, then not later than thirty (30) days after the person, business entity or political action 28
295	295	committee receives the donation, payment, or transfer the person, business entity or political action 29
296	296	committee shall transmit to the donor a written certification by the chief financial officer of the 30
297	297	person, business entity or political action committee (or, if the organization does not have a chief 31
298	298	financial officer, the highest ranking financial official of the organization) that: 32
299	299	(1) The person, business entity or political action committee will not use the donation, 33
300	300	payment, or transfer for independent expenditures, electioneering communications, including 34
301	301
302	302
303	303	LC001700 - Page 9 of 14
304	304	electronic mail or text, or covered transfers; and 1
305	305	(2) The person, business entity or political action committee will not include any 2
306	306	information on the donor in any report filed by the person, business entity or political action 3
307	307	committee under this section with respect to independent expenditures, electioneering 4
308	308	communications, including electronic mail or text, or covered transfers, so that the donor will not 5
309	309	be required to appear in the list of donors. 6
310	310	(3) Exception for payments made pursuant to commercial activities. Subsections (e) and 7
311	311	(f) do not apply with respect to any payment or transfer made pursuant to commercial activities in 8
312	312	the regular course of a person’s, business entity’s or political action committee’s business. 9
313	313	(j) For the purposes of this chapter, two (2) or more entities (other than an exempt nonprofit 10
314	314	as defined in § 17-25-3 or an organization described in § 501(c)(3) of the Internal Revenue Code 11
315	315	of 1986, or any subsequent corresponding internal revenue code of the United States, as amended 12
316	316	from time to time) are treated as a single entity if the entities: 13
317	317	(1) Share the majority of members on their boards of directors; 14
318	318	(2) Share two (2) or more officers; 15
319	319	(3) A candidate committee and a political committee other than a candidate committee are 16
320	320	for the purposes of this section treated as a single committee if the committees both have the 17
321	321	candidate or a member of the candidate’s immediate family as an officer; 18
322	322	(4) Are owned or controlled by the same majority shareholder or shareholders or persons; 19
323	323	(5) Are in a parent-subsidiary relationship; or 20
324	324	(6) Have bylaws so stating. 21
325	325	17-25.3-2. Optional use of separate campaign-related account by person, business 22
326	326	entity or political action committee for independent expenditures, electioneering 23
327	327	communications, and covered transfers. 24
328	328	(a) A person, business entity or political action committee may make disbursements for 25
329	329	independent expenditures, electioneering communications, including electronic mail or text, or 26
330	330	covered transfers using amounts from a bank account established and controlled by the person, 27
331	331	business entity or political action committee to be known as the separate campaign-related account 28
332	332	(hereafter in this section referred to as the “account”), which shall be maintained separately from 29
333	333	all other accounts of the person, business entity or political action committee and which shall 30
334	334	consist exclusively of funds that were paid directly to such account by one or more person, business 31
335	335	entity, or political action committee other than the person, business entity, or political action 32
336	336	committee that controls the account. A person, business entity, or political action committee shall 33
337	337	not make transfers from its general treasury into an account established under this section that such 34
338	338
339	339
340	340	LC001700 - Page 10 of 14
341	341	person, business entity, or political action committee controls. 1
342	342	(b) Mandatory use of account after establishment. If a person, business entity or political 2
343	343	action committee establishes an account under this section, it may not make disbursements for 3
344	344	independent expenditures, electioneering communications, including electronic mail or text, or 4
345	345	covered transfers from any source other than amounts from the account. 5
346	346	(c) Exclusive use of account for independent expenditures, electioneering communications, 6
347	347	including electronic mail or text, and covered transfers. Amounts in the account shall be used 7
348	348	exclusively for disbursements by the person, business entity or political action committee for 8
349	349	independent expenditures, electioneering communications, including electronic mail or text, or 9
350	350	covered transfers. After such disbursements are made, information with respect to deposits made 10
351	351	to the account shall be disclosed in accordance with subsection 17-25.3-1(f). 11
352	352	17-25.3-3. Disclaimers. 12
353	353	(a) No person, business entity or political action committee shall make or incur an 13
354	354	independent expenditure or fund an electioneering communication for any written, typed, or other 14
355	355	printed communication, including electronic mail or text, unless such communication bears upon 15
356	356	its face the words “Paid for by” and the name of the entity, the name of its chief executive officer 16
357	357	or equivalent, and its principal business address. In the case of a person, business entity or political 17
358	358	action committee making or incurring such an independent expenditure or electioneering 18
359	359	communication, including electronic mail or text, which entity is a tax-exempt organization under 19
360	360	§ 501(c) of the Internal Revenue Code of 1986 (other than an organization described in § 501(c)(3) 20
361	361	of such Code) or an exempt nonprofit as defined in § 17-25-3, or any subsequent corresponding 21
362	362	internal revenue code of the United States, as amended from time to time, or an organization 22
363	363	organized under Section 527 of said code, such communication shall also bear upon its face the 23
364	364	words “Top Five Donors” followed by a list of the five (5) persons or entities making the largest 24
365	365	aggregate donations to such person, business entity or political action committee during the twelve 25
366	366	(12) month period before the date of such communication, provided that no donor shall be listed 26
367	367	who is not required to be disclosed in a report to the board of elections by the person, business 27
368	368	entity, or political action committee. 28
369	369	(b) The provisions of subsections (a) of this section shall not apply to: 29
370	370	(1) Any editorial, news story, or commentary published in any newspaper, magazine or 30
371	371	journal on its own behalf and upon its own responsibility and for which it does not charge or receive 31
372	372	any compensation whatsoever; 32
373	373	(2) Political paraphernalia including pins, buttons, badges, emblems, hats, bumper stickers 33
374	374	or other similar materials; or 34
375	375
376	376
377	377	LC001700 - Page 11 of 14
378	378	(3) Signs or banners with a surface area of not more than thirty-two (32) square feet. 1
379	379	(c) No person, business entity or political action committee shall make or incur an 2
380	380	independent expenditure or fund an electioneering communication, including electronic mail or 3
381	381	text, for paid television advertising or paid Internet video advertising, unless at the end of such 4
382	382	advertising there appears simultaneously, for a period of not less than four (4) seconds: 5
383	383	(1) A clearly identifiable video, photographic or similar image of the entity’s chief 6
384	384	executive officer or equivalent; and 7
385	385	(2) A personal audio message, in the following form: “I am (name of entity’s chief 8
386	386	executive officer or equivalent), (title) of (entity), and I approved its content.” 9
387	387	(3) In the case of a person, business entity or political action committee making or incurring 10
388	388	such an independent expenditure or electioneering communication, including electronic mail or 11
389	389	text, which person, business entity or political action committee is a tax-exempt organization under 12
390	390	§ 501(c) of the Internal Revenue Code of 1986 (other than an organization described in § 501(c)(3) 13
391	391	of such Code) or an exempt nonprofit as defined in § 17-25-3, or any subsequent corresponding 14
392	392	internal revenue code of the United States, as amended from time to time, or an organization 15
393	393	organized under Section 527 of said code, such advertising shall also include a written message in 16
394	394	the following form: “The top five (5) donors to the organization responsible for this advertisement 17
395	395	are” followed by a list of the five (5) persons or entities making the largest aggregate donations 18
396	396	during the twelve (12) month period before the date of such advertisement, provided that no donor 19
397	397	shall be listed who is not required to be disclosed in a report to the board of elections by the person, 20
398	398	business entity, or political action committee. 21
399	399	(d) No person, business entity or political action committee shall make or incur an 22
400	400	independent expenditure or fund an electioneering communication, including electronic mail or 23
401	401	text, for paid radio advertising or paid Internet audio advertising, unless the advertising ends with 24
402	402	a personal audio statement by the entity’s chief executive officer or equivalent; 25
403	403	(1) Identifying the entity paying for the expenditure; and 26
404	404	(2) A personal audio message, in the following form: “I am (name of entity’s chief 27
405	405	executive officer or equivalent), (title), of (entity), and I approved its content.” 28
406	406	(3) In the case of a person, business entity or political action committee making or incurring 29
407	407	such an independent expenditure or electioneering communication, including electronic mail or 30
408	408	text, which entity is a tax-exempt organization under § 501(c) of the Internal Revenue Code of 31
409	409	1986 (other than an organization described in § 501(c)(3) of such Code) or an exempt nonprofit as 32
410	410	defined in § 17-25-3, or any subsequent corresponding internal revenue code of the United States, 33
411	411	as amended from time to time, or an organization organized under Section 527 of said code, such 34
412	412
413	413
414	414	LC001700 - Page 12 of 14
415	415	advertising shall also include: 1
416	416	(A) An audio message in the following form: “The top five (5) donors to the organization 2
417	417	responsible for this advertisement are” followed by a list of the five (5) persons or entities making 3
418	418	the largest aggregate donations during the twelve (12) month period before the date of such 4
419	419	advertisement, provided that no donor shall be listed who is not required to be disclosed in a report 5
420	420	to the board of elections by the person, business entity, or political action committee; or 6
421	421	(B) In the case of such an advertisement that is thirty (30) seconds in duration or shorter, 7
422	422	an audio message providing a website address that lists such five (5) persons or entities, provided 8
423	423	that no contributor shall be listed who is not required to be disclosed in a report to the board of 9
424	424	elections by the person, business entity, or political action committee. In such case, the person, 10
425	425	business entity or political action committee shall establish and maintain such a website with such 11
426	426	listing for the entire period during which such person, business entity or political action committee 12
427	427	makes such advertisement. 13
428	428	(e) No person, business entity or political action committee shall make or incur an 14
429	429	independent expenditure or fund an electioneering communication, including electronic mail or 15
430	430	text, for automated telephone calls, unless the narrative of the telephone call identifies the person, 16
431	431	business entity or political action committee making the expenditure and its chief executive officer 17
432	432	or equivalent. In the case of a person, business entity or political action committee making or 18
433	433	incurring such an independent expenditure, which entity is a tax-exempt organization under § 19
434	434	501(c) of the Internal Revenue Code of 1986 (other than an organization described in § 501(c)(3) 20
435	435	of such Code) or an exempt nonprofit as defined in § 17-25-3, or any subsequent corresponding 21
436	436	internal revenue code of the United States, as amended from time to time, or an organization 22
437	437	organized under Section 527 of said code, such narrative shall also include an audio message in the 23
438	438	following form: “The top five (5) donors to the organization responsible for this telephone call are” 24
439	439	followed by a list of the five (5) persons or entities making the largest aggregate donations during 25
440	440	the twelve (12) month period before the date of such telephone call, provided that no donor shall 26
441	441	be listed who is not required to be disclosed in a report to the board of elections by the person, 27
442	442	business entity, or political action committee. 28
443	443	17-25.3-4. Penalties. 29
444	444	(a) Any person who willfully and knowingly violates the provisions of this chapter shall, 30
445	445	upon conviction, be guilty of a misdemeanor and shall be fined not more than one thousand dollars 31
446	446	($1,000) per violation. 32
447	447	(b) The state board of elections may impose a civil penalty upon any person, business 33
448	448	entity, or political action committee who violates the provisions of this chapter in the amount of 34
449	449
450	450
451	451	LC001700 - Page 13 of 14
452	452	one thousand dollars ($1,000), or up to one hundred fifty percent (150%) of the aggregate amount 1
453	453	of the independent expenditures, electioneering communications, including electronic mail or text, 2
454	454	or covered transfers per violation, whichever is greater. 3
455	455	SECTION 4. This act shall take effect upon passage. 4
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457	457	LC001700
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459	459
460	460
461	461	LC001700 - Page 14 of 14
462	462	EXPLANATION
463	463	BY THE LEGISLATIVE COUNCIL
464	464	OF
465	465	A N A C T
466	466	RELATING TO ELECTIONS -- RHODE ISLAND CAMPAIG N CONTRIBUTIONS AND
467	467	EXPENDITURES REPORTING
468	468	***
469	469	This act would include electronic mail or text, which can be received by two thousand 1
470	470	(2,000) or more persons, to those independent expenditures that must be reported under this act. 2
471	471	This act would take effect upon passage. 3
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473	473	LC001700
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475	475