2025 -- H 6234
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LC002726
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
____________
A N A C T
RELATING TO ELECTIONS -- RHODE ISLAND CAMPAIGN CONTRIBUTIO NS AND
EXPENDITURES REPORTING
Introduced By: Representative Katherine S. Kazarian
Date Introduced: April 11, 2025
Referred To: House State Government & Elections
It is enacted by the General Assembly as follows:
SECTION 1. Sections 17-25-3, 17-25-7, 17-25-10, 17-25-11 and 17-25-12 of the General 1
Laws in Chapter 17-25 entitled "Rhode Island Campaign Contributions and Expenditures 2
Reporting" are hereby amended to read as follows: 3
17-25-3. Definitions. 4
As used in this chapter, unless a different meaning clearly appears from the context: 5
(1) “Accounts payable” means credit extended to a candidate or political, candidate 6
committee, political action committee or political party committee, for campaign expenditures; 7
provided that, the credit extended is in the ordinary course of the vendor’s business, and the terms 8
are substantially similar, in risk and amount, to extensions of credit to nonpolitical customers. 9
(2) “Business entity” means any corporation, whether for profit or not for profit, domestic 10
corporation or foreign corporation, as defined in § 7-1.2-106, financial institution, cooperative, 11
association, receivership, trust, holding company, firm, joint stock company, public utility, sole 12
proprietorship, partnership, limited partnership, or any other entity recognized by the laws of the 13
United States and/or the state of Rhode Island for the purpose of doing business. The term “business 14
entity” shall not include a political action committee organized pursuant to this chapter or a political 15
party committee or an authorized campaign committee of a candidate or office holder. The term 16
“business entity” shall not include any exempt nonprofit as defined herein or any organization 17
described in § 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding 18
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internal revenue code of the United States, as amended from time to time, for the purposes of 1
chapter 25.3 of this title. 2
(3) “Candidate” means any individual who undertakes any action, whether preliminary or 3
final, which is necessary under the law to qualify for nomination for election or election to public 4
office, and/or any individual who receives a contribution or makes an expenditure, or gives their 5
consent for any other person to receive a contribution or make an expenditure, with a view to 6
bringing about their nomination or election to any public office, whether or not the specific public 7
office for which they will seek nomination or election is known at the time the contribution is 8
received or the expenditure is made and whether or not they have announced their candidacy or 9
filed a declaration of candidacy at that time. 10
(4) “Conduit” or “intermediary” means any person who receives and forwards an 11
earmarked contribution to a candidate or a candidate’s authorized committee, except as otherwise 12
limited in this chapter. 13
(5) “Contributions” and “expenditures” include all transfers of money, credit or debit card 14
transactions, on-line or electronic payment systems such as “pay pal,” paid personal services, or 15
other thing of value to or by any candidate, committee of a political party, or political action 16
committee or ballot question advocate. A loan shall be considered a contribution of money until it 17
is repaid. 18
(6) “Covered transfer” means any transfer or payment of funds by any person, business 19
entity, or political action committee to another person, business entity, or political action committee 20
if the person, business entity, or political action committee making the transfer: (i) Designates, 21
requests, or suggests that the amounts be used for independent expenditures or electioneering 22
communications or making a transfer to another person for the purpose of making or paying for 23
such independent expenditures or electioneering communications; (ii) Made such transfer or 24
payment in response to a solicitation or other request for a transfer or payment for the making of 25
or paying for independent expenditures or electioneering communications or making a transfer to 26
another person for the purpose of making or paying for such independent expenditures or 27
electioneering communications; (iii) Engaged in discussions with the recipient of the transfer or 28
payment regarding independent expenditures or electioneering communications or making a 29
transfer to another person for the purpose of making or paying for such independent expenditures 30
or electioneering communications; or (iv) Made independent expenditures or electioneering 31
communications in an aggregate amount of five thousand dollars ($5,000) or more during the two-32
year (2) period ending on the date of the transfer or payment, or knew or had reason to know that 33
the person receiving the transfer or payment made such independent expenditures or electioneering 34
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communications in such an aggregate amount during that two-year (2) period. 1
(A) Exceptions: The term “covered transfer” does not include: 2
(I) A transfer or payment made by a person, business entity, or political action committee 3
in the ordinary course of any trade or business conducted by the person, business entity, or political 4
action committee or in the form of investments made by the person, business entity, or political 5
action committee; or 6
(II) A transfer or payment made by a person, business entity, or political action committee 7
if the person, business entity, or political action committee making the transfer prohibited, in 8
writing, the use of such transfer or payment for independent expenditures, electioneering 9
communications, or covered transfers and the recipient of the transfer or payment agreed to follow 10
the prohibition and deposited the transfer or payment in an account that is segregated from any 11
account used to make independent expenditures, electioneering communications, or covered 12
transfers. 13
(7) For the purposes of chapter 25.3 of this title, “donation” means all transfers of money, 14
credit or debit card transactions, on-line or electronic payment systems such as “pay pal,” paid 15
personal services, or other thing of value to or by any person, business entity, or political action 16
committee. A loan shall be considered a donation of money until it is repaid. 17
(8) For the purposes of chapter 25.3 of this title, “donor” means a person, business entity, 18
or political action committee that makes a donation. 19
(9) “Earmarked” means a designation, instruction, or encumbrance, whether direct or 20
indirect, express or implied, oral or written, that results in all or any part of a contribution or 21
expenditure being made to, or expended on behalf of, a clearly identified candidate or a candidate’s 22
authorized committee. 23
(10) “Election” means any primary, general, or special election or town meeting for any 24
public office of the state, municipality, or district, or for the determination of any question 25
submitted to the voters of the state, municipality, or district. 26
(11) “Election cycle” means the twenty-four month (24) period commencing on January 1 27
of odd number years and ending on December 31 of even number years; provided, with respect to 28
the public financing of election campaigns of general officers under §§ 17-25-19, 17-25-20, and 29
17-25-25, “election cycle” means the forty-eight month (48) period commencing on January 1 of 30
odd numbered years and ending December 31 of even numbered years. 31
(12) “Electioneering communication” means any print, broadcast, cable, satellite, or 32
electronic media communication not coordinated, as set forth in § 17-25-23, with any candidate, 33
authorized candidate campaign committee, or political party committee and that unambiguously 34
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identifies a candidate or referendum and is made either within sixty (60) days before a general or 1
special election or town meeting for the office sought by the candidate or referendum; or thirty (30) 2
days before a primary election, for the office sought by the candidate; and is targeted to the relevant 3
electorate. 4
(i) A communication that refers to a clearly identified candidate or referendum is “targeted 5
to the relevant electorate” if the communication can be received by two thousand (2,000) or more 6
persons in the district the candidate seeks to represent or the constituency voting on the referendum. 7
(ii) Exceptions: The term “electioneering communication” does not include: 8
(A) A communication appearing in a news story, commentary, or editorial distributed 9
through the facilities of any broadcasting station, unless such facilities are owned or controlled by 10
any political party, political committee, or candidate; 11
(B) A communication that constitutes a candidate debate or forum conducted pursuant to 12
regulations adopted by the board of elections or that solely promotes such a debate or forum and is 13
made by or on behalf of the person sponsoring the debate or forum; 14
(C) A communication made by any business entity to its members, owners, stockholders, 15
or employees; 16
(D) A communication over the internet, except for (I) Communications placed for a fee on 17
the website of another person, business entity, or political action committee; and (II) Websites 18
formed primarily for the purpose, or whose primary purpose is, to expressly advocate the election 19
or defeat of a clearly identified candidate or the passage or defeat of a referendum; or 20
(E) Any other communication exempted under such regulations as the board of elections 21
may promulgate (consistent with the requirements of this paragraph) to ensure the appropriate 22
implementation of this paragraph. 23
(13) “Exempt nonprofit” means any organization described in § 501(c)(4) of the Internal 24
Revenue Code that spends an aggregate annual amount of no more than ten percent (10%) of its 25
annual expenses or no more than fifteen thousand dollars ($15,000), whichever is less, on 26
independent expenditures, electioneering communications, and covered transfers as defined herein 27
and certifies the same to the board of elections seven (7) days before and after a primary election 28
and seven (7) days before and after a general or special election. 29
(14) “Fair market value” means the usual and normal charge for goods and services as 30
determined by the marketplace from which they ordinarily would have been purchased at a usual 31
and normal charge in an arms length transaction. 32
(i) For purposes of this subsection, “usual and normal charge for goods” means the price 33
of those goods in the market from which they ordinarily would have been purchased at the time of 34
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the contribution. “Usual and normal charge for services”, other than those provided by an unpaid 1
volunteer, means the hourly or piecework charge for the services at a commercially reasonable rate 2
prevailing at the time the services are rendered. 3
(15) “Independent expenditure” means an expenditure that, when taken as a whole, 4
expressly advocates the election or defeat of a clearly identified candidate, or the passage or defeat 5
of a referendum, or amounts to the functional equivalent of such express advocacy, and is in no 6
way coordinated, as set forth in § 17-25-23, with any candidate’s campaign, authorized candidate 7
committee, or political party committee. An expenditure amounts to the functional equivalent of 8
express advocacy if it can only be interpreted by a reasonable person as advocating the election, 9
passage, or defeat of a candidate or referendum, taking into account whether the communication 10
mentions a candidate or referendum and takes a position on a candidate’s character, qualifications, 11
or fitness for office. An independent expenditure is not a contribution to that candidate or 12
committee. 13
(i) Exceptions: The term “independent expenditure” does not include: 14
(A) A communication appearing in a news story, commentary, or editorial distributed 15
through the facilities of any broadcasting station, unless such facilities are owned or controlled by 16
any political party, political committee, or candidate; 17
(B) A communication that constitutes a candidate debate or forum conducted pursuant to 18
regulations adopted by the board of elections or that solely promotes such a debate or forum and is 19
made by or on behalf of the person sponsoring the debate or forum; 20
(C) A communication made by any business entity to its members, owners, stockholders, 21
or employees; 22
(D) A communication over the internet, except for (I) Communications placed for a fee on 23
the website of another person, business entity, or political action committee; and (II) Websites 24
formed primarily for the purpose, or whose primary purpose is, to expressly advocate the election 25
or defeat of a clearly identified candidate or the passage or defeat of a referendum; or 26
(E) Any other communication exempted under such regulations as the board of elections 27
may promulgate (consistent with the requirements of this paragraph) to ensure the appropriate 28
implementation of this paragraph. 29
(16) “In-kind contributions” means the monetary fair market value of other things of value 30
or paid personal services donated to, or benefiting, any person required to file reports with the board 31
of elections, including the difference between the amount paid by a reporting person and the fair 32
market value or a thing of value or personal service. 33
(17) “Other thing of value” means any item of tangible real or personal property of a fair-34
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market value in excess of one hundred dollars ($100). 1
(18) “Paid personal services” means personal services of every kind and nature, the cost or 2
consideration for which is paid or provided by someone other than the committee or candidate for 3
whom the services are rendered, but shall not include personal services provided without 4
compensation by persons individuals volunteering their time. 5
(19) “Person” means an individual, partnership, committee, association, corporation, 6
union, charity, and/or any other organization. The term “person” shall not include any exempt 7
nonprofit as defined herein or any organization described in § 501(c)(3) of the Internal Revenue 8
Code of 1986, or any subsequent corresponding internal revenue code of the United States, as 9
amended from time to time, for the purposes of chapter 25.3 of this title only. 10
(20) “Political action committee” means any group of two (2) or more persons that accepts 11
any contributions to be used for advocating the election or defeat of any candidate or candidates. 12
Only political action committees that have accepted contributions from fifteen (15) or more persons 13
in amounts of ten dollars ($10.00) or more within an election cycle shall be permitted to make 14
contributions, and those committees must make contributions to at least five (5) candidates for state 15
or local office within an election cycle. 16
(21) “Public office” means any state, municipal, school, or district office or other position 17
that is filled by popular election, except political party offices. “Political party offices” means any 18
state, city, town, ward, or representative or senatorial district committee office of a political party 19
or delegate to a political party convention, or any similar office. 20
(22) For purposes of chapter 25.3 of this title, “referendum” means the same as the 21
definition set forth in § 17-5-1. 22
(23) “State” means state of Rhode Island. 23
(24) “Testimonial affair” means an affair of any kind or nature including, but not limited 24
to, cocktail parties, breakfasts, luncheons, dinners, dances, picnics, or similar affairs expressly and 25
directly intended to raise campaign funds in behalf of a candidate to be used for nomination or 26
election to a public office in this state, or expressly and directly intended to raise funds in behalf of 27
any state or municipal committee of a political party, or expressly and directly intended to raise 28
funds in behalf of any political action committee. 29
17-25-7. Contents of reports to be filed by treasurers of candidates and committees. 30
(a) Each campaign treasurer of a candidate, each state and municipal committee of a 31
political party, and each political action committee shall keep accurate records and make a full 32
report, upon a form prescribed by the board of elections, of all contributions received, and 33
expenditures made, by it in excess of a total of two hundred dollars ($200), from any one source 34
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within a calendar year, in furtherance of the nomination, election, or defeat of any candidate or the 1
approval or rejection of any question submitted to the voters, or at any financial town meeting, 2
financial town referendum, or other election at which amendments to a city or town charter are 3
proposed, during the period from the date of the last report, or in the case of the initial report, 4
beginning on the date of the appointment of the campaign treasurer for state and municipal 5
committees and political action committees and on the date a person becomes a “candidate” as 6
defined in § 17-25-3 for individual candidates. The report shall contain the name, address, and 7
place of employment of each person or source from whom the contributions and expenditures in 8
excess of two hundred dollars ($200), were received or made and the amount contributed or 9
expended by each person or source. If such an expenditure constitutes a significant disbursement 10
to a controlling person within the meaning of § 17-25-7.7, the campaign treasurer shall submit a 11
separate notice of the significant disbursement to the state board of elections on a form prescribed 12
by the board affirmatively demonstrating that the requirements of § 17-25-7.7(c) were satisfied. 13
The report shall be filed with the board of elections on the dates designated in § 17-25-11. The 14
campaign treasurer of the candidate or committee reporting shall certify to the correctness of each 15
report. Notwithstanding any other provisions contained in this title, this subsection shall apply to 16
any person or entity advocating the approval or rejection of any question presented to voters at any 17
financial town meeting, financial town referendum, or other election at which amendments to a city 18
or town charter are proposed, which shall file reports of contributions or expenditures in accordance 19
with the filing schedule established by § 17-25-11 if the total of the money so expended exceeds 20
two hundred dollars ($200), in a calendar year. As used in this subsection, the word “entity” means 21
any political action committee, political party committee, authorized campaign committee of a 22
candidate or officer holder, corporation, whether for profit, not-for-profit, or exempt nonprofit 23
pursuant to 26 U.S.C. § 501(c)(3) of the Internal Revenue Code, domestic corporation or foreign 24
corporation, as defined in § 7-1.2-106, financial institution, cooperative, association, receivership, 25
partnership, committee, union, charity, trust, holding company, firm, joint stock company, public 26
utility, sole proprietorship, limited partnership, or any other entity recognized by the laws of the 27
United States and/or the state of Rhode Island. 28
(b) Each state and municipal committee of a political party shall also file with the board of 29
elections, not later than March 1 of each year, an annual report setting forth in the aggregate all 30
contributions received and all expenditures made during the previous calendar year, whether or not 31
these expenditures were made, incurred, or authorized in furtherance of the election or defeat of 32
any candidate. The treasurer of the committee or organization reporting shall certify to the 33
correctness of each report. 34
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(c)(1) Any report filed pursuant to the provisions of this section shall include expenditures 1
or disbursements paid on behalf of or for the benefit of the reporting person by an agent or 2
independent contractor, including a vendor. 3
(2) An agent or contractor, including a vendor, who makes an expenditure or disbursement 4
on behalf of or for the benefit of a committee or person that is required to be reported under this 5
section shall promptly make known to the reporting committee or person all the information 6
required for reporting the expenditure or disbursement. 7
(3) If the electronic campaign finance reporting system is technologically capable of 8
displaying or otherwise providing information required by subsection (c) of this section to the 9
public, the state board of elections shall provide online public access to such information through 10
the system. If the electronic campaign finance reporting system is not technologically capable of 11
providing such information to the public, the board shall create an interim procedure for the public 12
to obtain the information reported under subsection (c) of this section. 13
(c)(d) Any report filed pursuant to the provisions of this section shall include contributions 14
received from any “testimonial affair,” as defined in § 17-25-3, held since the date of the most 15
recent report filed. 16
17-25-10. Lawful methods of contributing to support of candidates — Reporting — 17
Disposition of anonymous contributions. 18
(a) No contribution shall be made or received, and no expenditures shall be directly made 19
or incurred, to support or defeat a candidate except through: 20
(1) The candidate or duly appointed campaign treasurer or deputy campaign treasurer of 21
the candidate; 22
(2) The duly appointed campaign treasurer or deputy campaign treasurer of a political party 23
committee; 24
(3) The duly appointed campaign treasurer or deputy campaign treasurer of a political 25
action committee. 26
(b) Any settlement of accounts payable between a creditor and a candidate, candidate 27
committee, political action committee, or political party committee for less than the full amount 28
owed shall comply with the applicable contribution limitations under this chapter. The state board 29
of elections may determine that a settlement of accounts payable for less than the full amount owed 30
falls within the creditor's normal business practices and therefore, does not constitute a contribution 31
subject to the applicable contribution limitations under this chapter. 32
(1) Any accounts payable by a candidate, candidate committee, political action committee 33
or political party committee shall be considered a contribution received in-kind if the accounts 34
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payable remains outstanding, in full or in part, for a period of time that exceeds that which the 1
entity to whom payment is owed permits for persons that are not candidates, political action 2
committees or political party committees. 3
(2) Notwithstanding subsection (b)(1) of this section, if any accounts payable by a 4
candidate, candidate committee, political action committee or political party committee remains 5
outstanding for one hundred twenty (120) days, the candidate, political action committee, or 6
political party shall submit a notice to the state board of elections within seventy-two (72) hours on 7
a form prescribed by the board detailing the amount and purpose of such accounts payable and the 8
arrangements made for discharge of the unpaid amount. Any accounts payable by a candidate 9
political action committee or political party committee shall be considered a contribution received 10
in-kind if the account remains unpaid, in full or in part, for more than one hundred eighty (180) 11
days. 12
(3) Any accounts payable by a candidate, candidate committee, political action committee 13
or political party committee that is considered a contribution received in-kind pursuant to 14
subsections (b)(1) and (b)(2) of this section is subject to contribution limitations under § 17-25-15
10.1 and the penalties provided in § 17-25-13 for any resulting violation of that provision. 16
(b)(c) It shall be lawful for any person, not otherwise prohibited by law and not acting in 17
concert with any other person or group, to expend personally from that person’s own funds a sum 18
that is not to be repaid to him or her for any purpose not prohibited by law to support or defeat a 19
candidate; provided, that any person making the expenditure shall be required to report all of his or 20
her expenditures and expenses, if the total of the money so expended exceeds one hundred dollars 21
($100) within a calendar year, to the board of elections within seven (7) days of making the 22
expenditure and to the campaign treasurer of the candidate or political party committee on whose 23
behalf the expenditure or contribution was made, or to his or her deputy, within seven (7) days of 24
making the expenditure. The treasurer or his or her deputy shall cause the expenditures and 25
expenses to be included in his or her reports to the board of elections. Whether a person is “acting 26
in concert with any other person or group” for the purposes of this subsection shall be determined 27
by application of the standards set forth in § 17-25-23. 28
(c)(d) Any anonymous contribution received by a candidate, campaign treasurer, or deputy 29
campaign treasurer shall not be used or expended, but shall be returned to the donor, if the donor’s 30
identity can be ascertained; if not, the contribution shall escheat to the state. 31
17-25-11. Dates for filing of reports by treasurers of candidates or of committees. 32
(a) During the period between the appointment of the campaign treasurer for state and 33
municipal committees and political action committees, or in the case of an individual the date on 34
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which the individual becomes a “declared or undeclared candidate” as defined in § 17-25-3(3), 1
except when the ninety-day (90) reporting period ends less than forty (40) days prior to an election 2
in which case the ninety-day (90) report shall be included as part of the report required to be filed 3
on the twenty-eighth (28th) day next preceding the day of the primary, general, or special election 4
pursuant to subsection (a)(2) of this section, and the election, with respect to which contributions 5
are received, accounts payable, or expenditures made by him or her in behalf of, or in opposition 6
to, a candidate, the campaign treasurer of a candidate, a political party committee, or a political 7
action committee shall file a report containing an account of contributions received, and 8
expenditures made, on behalf of, or in opposition to, a candidate: 9
(1) At ninety-day (90) intervals commencing on the date on which the individual first 10
becomes a candidate, as defined in § 17-25-3(3); 11
(2) In a contested election, on the twenty-eighth (28th) and seventh (7th) days next 12
preceding the day of the primary, general, or special election; provided, that in the case of a primary 13
election for a special election where the twenty-eighth (28th) day next preceding the day of the 14
primary election occurs prior to the first day for filing declarations of candidacy pursuant to § 17-15
14-1, the reports shall be due on the fourteenth (14th) and seventh (7th) days next preceding the 16
day of the primary election for the special election; and 17
(3) A final report on the twenty-eighth (28th) day following the election. The report shall 18
contain: 19
(i) The name and address and place of employment of each person from whom 20
contributions in excess of a total of two hundred dollars ($200), within a calendar year were 21
received; 22
(ii) The amount contributed by each person; 23
(iii) The name and address of each person to whom expenditures in excess of two hundred 24
dollars ($200), were made; and 25
(iv) The amount and purpose of each expenditure; and 26
(v) For any accounts payable outstanding at the time of the final report, the amount and 27
purpose of such accounts payable. 28
(b) Concurrent with the report filed on the twenty-eighth (28th) day following an election, 29
or at any time thereafter, the campaign treasurer of a candidate, or political party committee, or 30
political action committee, may certify to the board of elections that the campaign fund of the 31
candidate, political party committee, or political action committee having been instituted for the 32
purposes of the past election, has completed its business and been dissolved or, in the event that 33
the committee will continue its activities beyond the election, that its business regarding the past 34
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election has been completed. The certification shall be accompanied by a final accounting of the 1
campaign fund, or of the transactions relating to the election, including the final disposition of any 2
balance remaining in the fund at the time of dissolution or the arrangements that have been made 3
for the discharge of any obligations remaining unpaid at the time of dissolution. Any committee 4
that reports accounts payable cannot be dissolved until such accounts are fully paid. 5
(c)(1) Once the campaign treasurer certifies that the campaign fund has completed its 6
business and been dissolved, no contribution that is intended to defray expenditures incurred on 7
behalf of, or in opposition to, a candidate during the campaign can be accepted. Until the time that 8
the campaign treasurer certifies that the campaign fund has completed its business and been 9
dissolved, the treasurer shall file reports containing an account of contributions received and 10
expenditures made at ninety-day (90) intervals commencing with the next quarterly report 11
following the election; however, the time to file under this subsection shall be no later than the last 12
day of the month following the ninety-day (90) period, except when the last day of the month filing 13
deadline following the ninety-day (90) reporting period occurs less than twenty-eight (28) days 14
before an election, in which case the report shall be filed pursuant to the provisions of subsections 15
(a)(1) and (a)(2) of this section. Provided, however, if the last day of the month falls on a weekend 16
or a holiday, the report shall be due on the following business day. 17
(2) In addition to the reports required pursuant to this section, a candidate or office holder 18
shall also file with the board of elections a paper copy of the account statement from the office 19
holder’s campaign account, which account statement shall be the next account statement issued by 20
their financial institution after the filing of the fourth quarterly campaign expense report. The 21
account statement shall be submitted to the board within thirty (30) days of its receipt by the 22
candidate, officeholder, treasurer, or deputy treasurer. The account statement shall not be deemed 23
a public record pursuant to the provisions of chapter 2 of title 38. The board of elections, its agents, 24
and employees shall not publish, deliver, copy, or disclose, to any person or entity any account 25
statement or information contained therein for any candidate, former candidate, officeholder, party, 26
or political action committee. Provided, as to state and municipal political parties, the requirements 27
of this subsection (c)(2) shall apply to the annual report required pursuant to § 17-25-7. 28
(d)(1) There shall be no obligation to file the reports of expenditures required by this 29
section on behalf of, or in opposition to, a candidate if the total amount to be expended in behalf of 30
the candidacy by the candidate, by any political party committee, by any political action committee, 31
or by any person shall not in the aggregate exceed two thousand dollars ($2,000). 32
(2) However, even though the aggregate amount expended on behalf of the candidacy does 33
not exceed two thousand dollars ($2,000), reports must be made listing the source and amounts of 34
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all contributions in excess of a total of two hundred dollars ($200) from any one source, within a 1
calendar year. Even though the aggregate amount expended on behalf of the candidacy does not 2
exceed two thousand dollars ($2,000) and no contribution from any one source, within a calendar 3
year two hundred dollars ($200), the report shall state the aggregate amount of all contributions 4
received. In addition, the report shall state the amount of aggregate contributions that were from 5
individuals, the amount from political action committees, and the amount from political party 6
committees. 7
(e) On or before the first date for filing contribution and expenditure reports, the campaign 8
treasurer may file a sworn statement that the treasurer will accept no contributions nor make 9
aggregate expenditures in excess of the minimum amounts for which a report is required by this 10
chapter. Thereafter, the campaign treasurer shall be excused from filing all the reports for that 11
campaign, other than the final report due on the twenty-eighth (28th) day following the election. 12
(f) A campaign treasurer must file a report containing an account of contributions received 13
and expenditures made at the ninety-day (90) intervals provided for in subsection (c) of this section 14
for any ninety-day (90) period in which the campaign received contributions in excess of a total of 15
two hundred dollars ($200), within a calendar year from any one source and/or made expenditures 16
in excess of two thousand dollars ($2,000) within a calendar year; however, the time to file under 17
this subsection shall be no later than the last day of the month following the ninety-day (90) period, 18
except when the last day of the month filing deadline following the ninety-day (90) reporting period 19
occurs less than twenty-eight (28) days before an election, in which case the report shall be filed 20
pursuant to the provisions of subsections (a)(1) and (a)(2) of this section. Provided, however, if the 21
last day of the month falls on a weekend or a holiday, the report shall be due on the following 22
business day. 23
(g)(1) The board of elections may, for good cause shown and upon the receipt of a written 24
or electronic request, grant a seven-day (7) extension for filing a report; provided, that the request 25
must be received no later than the date upon which the report is due to be filed. 26
(2) Any person or entity required to file reports with the board of elections pursuant to this 27
section and who or that has not filed the report by the required date, unless granted an extension 28
pursuant to subsection (g)(1) of this section, shall be fined twenty-five dollars ($25.00). 29
Notwithstanding any of the provisions of this section, the board of elections shall have the authority 30
to waive late filing fees for good cause shown. 31
(3) The board of elections shall send a notice of non-compliance, by certified mail, to any 32
person or entity who or that fails to file the reports required by this section. A person or entity who 33
or that is sent a notice of non-compliance and fails to file the required report within seven (7) days 34
LC002726 - Page 13 of 19
of the receipt of the notice, shall be fined two dollars ($2.00) per day from the day of receipt of the 1
notice of non-compliance until the day the report has been received by the state board. 2
Notwithstanding any of the provisions of this section, the board of elections shall have the authority 3
to waive late filing fees for good cause shown. 4
17-25-12. Prohibited contributions. 5
(a) No contributions shall be made, and no expenditure shall be made or incurred, whether 6
anonymously, in a fictitious name, or by one person or group in the name of another, to support or 7
defeat a candidate in a primary, general, or special election. No person or group shall knowingly 8
help or assist any other person or group in making a contribution or expenditure contrary to the 9
provisions of this section. No treasurer or candidate shall solicit or knowingly accept any 10
contribution contrary to the provisions of this section. 11
(b) Notwithstanding the provisions of § 17-25-13: 12
(1) Any person or group who violates the provisions of this section shall be fined not less 13
than the amount contributed, and not more than two thousand dollars ($2,000) or double the amount 14
contributed, whichever is greater. 15
(2) Any person or group who willfully and knowingly violates the provisions of this section 16
shall upon conviction be guilty of a misdemeanor and shall be fined not less than double the amount 17
contributed and not more than ten thousand dollars ($10,000) or triple the amount contributed, 18
whichever is greater. 19
(3) The state board of elections may impose civil fines as described in subsection (b)(1) of 20
this section and order disgorgement of contributions to the general fund. 21
SECTION 2. Section 17-25.3-1 of the General Laws in Chapter 17-25.3 entitled 22
"Independent Expenditures and Electioneering Communications" is hereby amended to read as 23
follows: 24
17-25.3-1. Independent expenditures and electioneering communications for 25
elections. 26
(a) It shall be lawful for any person, business entity or political action committee, not 27
otherwise prohibited by law and not acting in coordination with a candidate, authorized candidate 28
campaign committee, political action committee, or political party committee, to expend personally 29
from that person’s own funds a sum which is not to be repaid to him or her for any purpose not 30
prohibited by law to support or defeat a candidate or referendum. Whether a person, business entity 31
or political action committee is “acting in coordination with a candidate, authorized candidate 32
campaign committee, political action committee or political party committee” for the purposes of 33
this subsection shall be determined by application of the standards set forth in § 17-25-23. All terms 34
LC002726 - Page 14 of 19
used in this chapter shall have the same meaning as defined in § 17-25-3. 1
(b) Any person, business entity or political action committee making independent 2
expenditures, electioneering communications, or covered transfers shall report all such campaign 3
finance expenditures and expenses to the board of elections, provided the total of the money so 4
expended exceeds one thousand dollars ($1,000) within a calendar year, to the board of elections 5
within seven (7) days of making the expenditure. 6
(c) A person, business entity or political action committee who makes or contracts to make 7
independent expenditures, electioneering communications, or covered transfers with an aggregate 8
value of one thousand dollars ($1,000) or more shall electronically file a campaign finance report 9
to the board of elections describing the expenditures. 10
(d) After a person, business entity or political action committee files a report under 11
subsection (b), the person, business entity or political action committee shall file an additional 12
report after each time the person, business entity or political action committee makes or contracts 13
to make independent expenditures, electioneering communications, or covered transfers 14
aggregating an additional one thousand dollars ($1,000) with respect to the same election as that to 15
which the initial report relates. 16
(e) When a report is required by subsection (c) or (d) of this section within thirty (30) days 17
prior to the election to which the expenditure was directed, it shall be filed within twenty-four (24) 18
hours of the expenditure. When such a report is required at any other time, it shall be filed within 19
seven (7) days after the expenditure. 20
(f) Reports of independent expenditures, electioneering communications, or covered 21
transfers by a person shall contain the name, street address, city, state, zip code, occupation, 22
employer (if self-employed, the name and place of business), of the person responsible for the 23
expenditure, the name, street address, city, state, and zip code of the person receiving the 24
expenditure the date and amount of each expenditure, and the year to date total. 25
(1) Any report filed pursuant to the provisions of this section shall include expenditures or 26
disbursements paid on behalf of or for the benefit of the reporting person by an agent or independent 27
contractor including a vendor. 28
(2) An agent or contractor including a vendor, who makes an expenditure or disbursement 29
on behalf of or for the benefit of a committee or person that is required to be reported under this 30
section shall promptly make known to the reporting committee or person all the information 31
required for reporting the expenditure or disbursement. 32
(3) If the electronic campaign finance reporting system is technologically capable of 33
displaying or otherwise providing the information required by this subsection to the public, the 34
LC002726 - Page 15 of 19
state board of elections shall provide online public access to such information through the system. 1
If the electronic campaign finance reporting system is not technologically capable of providing 2
such information to the public, the board shall create an interim procedure for the public to obtain 3
the information reported under this subsection. 4
(g) The report shall also include a statement identifying the candidate or referendum that 5
the independent expenditure or electioneering communication is intended to promote the success 6
or defeat, and affirm under penalty of false statement that the expenditure is not coordinated with 7
the campaign in question, and provide any information that the board of elections requires to 8
facilitate compliance with the provisions of this chapter. 9
(h) Reports of independent expenditures, electioneering communications, or covered 10
transfers by a person, business entity or political action committee shall also disclose the identity 11
of all donors of an aggregate of one thousand dollars ($1,000) or more to such person, business 12
entity or committee within the current election cycle, if applicable, unless the person, business 13
entity or political action committee has established a separate campaign-related account for 14
independent expenditures, electioneering communications, and covered transfers as detailed in § 15
17-25.3-2 in which case this paragraph applies only to donors to the person’s, business entity’s or 16
political action committee’s separate campaign-related account; provided that no person, business 17
entity, or political action committee shall be required to disclose in a report to the board of elections 18
the identity, which includes name, address, place of employment, and donation amount, of any 19
donor who makes no donation to such person, business entity, or political action committee after 20
the date of enactment of this section. 21
(i) If a person, business entity or political action committee and a donor mutually agree, at 22
the time a donation, payment, or transfer to the person, business entity or political action committee 23
which is required to disclose the identification under subsection (f) that the person, business entity 24
or political action committee will not use the donation, payment, or transfer for independent 25
expenditures, electioneering communications, or covered transfers, then not later than thirty (30) 26
days after the person, business entity or political action committee receives the donation, payment, 27
or transfer the person, business entity or political action committee shall transmit to the donor a 28
written certification by the chief financial officer of the person, business entity or political action 29
committee (or, if the organization does not have a chief financial officer, the highest ranking 30
financial official of the organization) that: 31
(1) The person, business entity or political action committee will not use the donation, 32
payment, or transfer for independent expenditures, electioneering communications, or covered 33
transfers; and 34
LC002726 - Page 16 of 19
(2) The person, business entity or political action committee will not include any 1
information on the donor in any report filed by the person, business entity or political action 2
committee under this section with respect to independent expenditures, electioneering 3
communications, or covered transfers, so that the donor will not be required to appear in the list of 4
donors. 5
(3) Exception for payments made pursuant to commercial activities. Subsections (e) and 6
(f) do not apply with respect to any payment or transfer made pursuant to commercial activities in 7
the regular course of a person’s, business entity’s or political action committee’s business. 8
(j) For the purposes of this chapter, two (2) or more entities (other than an exempt nonprofit 9
as defined in § 17-25-3 or an organization described in § 501(c)(3) of the Internal Revenue Code 10
of 1986, or any subsequent corresponding internal revenue code of the United States, as amended 11
from time to time) are treated as a single entity if the entities: 12
(1) Share the majority of members on their boards of directors; 13
(2) Share two (2) or more officers; 14
(3) A candidate committee and a political committee other than a candidate committee are 15
for the purposes of this section treated as a single committee if the committees both have the 16
candidate or a member of the candidate’s immediate family as an officer; 17
(4) Are owned or controlled by the same majority shareholder or shareholders or persons; 18
(5) Are in a parent-subsidiary relationship; or 19
(6) Have bylaws so stating. 20
(k) No donation, payments, or transfers shall be made, and no expenditure shall be made 21
or incurred, anonymously, in a fictitious name, or by one person or group in the name of another, 22
for the making of an independent expenditure or electioneering communication under this section. 23
No person or group shall knowingly permit the use of the person's or group's name to effect any 24
donation, payment, transfer, or expenditure contrary to the provisions of this section. No person or 25
group shall knowingly help or assist any other person or group in making any donation, payment, 26
transfer, or expenditure contrary to the provisions of this section. No person, business entity, or 27
political action committee shall solicit or knowingly accept any donation, payment, or transfer 28
contrary to the provisions of this section. 29
(l) Notwithstanding § 17-25.3-4: 30
(1) Any person, business entity, or political action committee who violates the provisions 31
of subsection (k) of this section shall be fined not less than the amount contributed, and not more 32
than two thousand ($2,000) or double the amount contributed, whichever is greater. 33
(2) Any person, business entity, or political action committee who willfully and knowingly 34
LC002726 - Page 17 of 19
violates the provisions of subsection (k) of this section shall upon conviction be guilty of a 1
misdemeanor and fined not less than double the amount contributed and not more than ten thousand 2
dollars ($10,000) or triple the amount contributed, whichever is greater. 3
(3) The state board of elections may impose civil fines as described in subsection (l)(1) of 4
this section and order disgorgement of donations, payments, or transfers in violation of this section 5
to the general fund. 6
SECTION 3. Chapter 17-25 of the General Laws entitled "Rhode Island Campaign 7
Contributions and Expenditures Reporting" is hereby amended by adding thereto the following 8
section: 9
17-25-7.7. Self-dealing with committee funds prohibited. 10
(a) A contribution or donation received by a committee may be used for any purpose that 11
would otherwise be lawful under this chapter, unless prohibited by subsections (b) or (d) of this 12
section. 13
(b) Self-dealing by any controlling person of contributions or donations received by a 14
committee is prohibited. For the purposes of this section, the use of a contribution or donation shall 15
be presumed to be self-dealing if the contribution or donation is used to make a significant 16
disbursement to a controlling person. 17
(c) The presumption in subsection (b) of this section may be rebutted upon a showing that: 18
(1) The significant disbursement to the controlling person is a bona fide payment for goods 19
or services at no greater than fair market value; 20
(2) The significant disbursement was negotiated at arms' length by and approved by an 21
agent of the committee who was neither the controlling person nor in an employment relationship 22
directly or indirectly subject to the direction or control of the controlling person; 23
(3) The agent who negotiated and approved the significant disbursement obtained and 24
relied upon appropriate data as to fair market value prior to approving the disbursement; 25
(4) The agent documented the basis for the approval determination concurrently with 26
making that determination; and 27
(5) At the time the significant disbursement was made, the aggregate total of itemized 28
contributions to the committee during the election cycle exceeded the aggregate total of 29
disbursements to controlling persons by the committee during the election cycle. 30
(d) In addition to the presumption in subsection (b) of this section, the use of contributions 31
or donations for the following purposes to benefit a controlling person shall be considered self-32
dealing and is specifically prohibited. 33
(1) Any residential or household items, supplies, or expenditures, including mortgage, rent, 34
LC002726 - Page 18 of 19
or utility payments for any part of any personal residence; 1
(2) Mortgage, rent, or utility payments for any part of any nonresidential property that is 2
owned by a controlling person and used for campaign purposes, to the extent the payments exceed 3
the fair-market value of the property usage; 4
(3) Funeral, cremation, or burial expenses, including any expenses related to deaths within 5
a controlling person's family; 6
(4) Clothing, other than items of de minimis value that are used in the campaign; 7
(5) Tuition payments; 8
(6) Dues, fees, or gratuities at a country club, health club, recreational facility or other 9
nonpolitical organization, unless they are part of a specific fundraising event that takes place on the 10
organization's premises; 11
(7) Admission to a sporting event, concert, theater, or other form of entertainment unless 12
part of a specific campaign or officeholder activity; and 13
(8) Payment of any fines, fees, or penalties assessed pursuant to this chapter. 14
(e) For purposes of this section: 15
(1) "Agent" means any person with actual authority, whether express or implied, to engage 16
in activities on behalf of another person. 17
(2) "Committee" means an authorized campaign committee of a candidate or officeholder, 18
a political action committee, or a political party committee. 19
(3) "Controlling person" means any person who has authority or ability to direct or control 20
the committee's disbursements, any family member or business partner of such person, and any 21
business entity or other entity owned or controlled, in whole or in part, by such person, family 22
member, or business partner. 23
(4) "Significant disbursement" means a disbursement that exceeds one thousand dollars 24
($1,000) or, when aggregated with all other disbursements by the committee to the recipient within 25
the calendar year, exceeds five thousand dollars ($5,000). 26
(f) Nothing in this section shall be construed to permit otherwise prohibited personal uses 27
of campaign funds under § 17-25-7.2. 28
SECTION 4. This act shall take effect upon passage. 29
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LC002726
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LC002726 - Page 19 of 19
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO ELECTIONS -- RHODE ISLAND CAMPAIGN CONTRIBUTIONS AND
EXPENDITURES REPORTING
***
This act would amend various sections of law relating to campaign contributions and 1
expenditures including prohibitions on self-dealing with committee funds and would prohibit 2
donations made in fictitious names. 3
This act would take effect upon passage. 4
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