Various changes in the campaign finance and lobbying laws

Internet political activity; individual and public communications Currently, with certain exceptions, payments for political communications are subject to disclosure under the campaign finance law, regardless of the medium that is used to conduct the communications. Payments for Internet communications are treated like payments for other communications. Currently, the cost of news stories, political interviews, editorial commentary, or endorsements, regardless of the medium by which they are distributed, are not contributions or disbursements and therefore are not reportable. The costs of communications by an organization other than a political party or personal campaign committee that are limited to the organization's members, shareholders, or subscribers are generally not reportable.

In addition, all services for a political purpose by an individual on behalf of a campaign finance registrant are not reportable and are not subject to the current prohibition on contributions and disbursements by corporations and cooperatives unless the individual performing the services is compensated specifically for those services.

This bill provides that any cost incurred to conduct Internet activity is not a contribution or disbursement, and is therefore not reportable if it is performed by an individual acting in his or her own behalf, or acting in behalf of another person, and if the individual is not compensated specifically for his or her services. This includes the cost or value of any equipment and services used by the individual to conduct the activity, but does not include professional video production services purchased by the individual. The bill similarly provides that any cost incurred in covering a news story, commentary, or editorial by a broadcasting station, cable television operator, producer, or programmer, Internet site, or newspaper or other periodical publication, including an Internet or other periodical publication, except the cost of a news story that appears in a medium that is owned by a candidate, candidate's authorized committee, or political party, is not a contribution or disbursement and is therefore not reportable. In addition, the bill provides specifically that the following are disbursements, and are therefore reportable: a) any payment for a communication to the general public for a political purpose except an Internet communication that is not a disbursement under the bill; b) any payment for the purchase or rental of an electronic-mail address list that is made at the direction of a campaign finance registrant for a political purpose; or c) any payment for an electronic-mail address list that is transferred to a registrant for a political purpose. The bill provides however, that the following are not disbursements, and are therefore not reportable:

a) a communication or Internet activity by an individual acting in his or her own behalf, or acting in behalf of another person if the individual is not compensated specifically for those services, including the cost or value of any electronic equipment and services used by the individual to conduct the activity; or b) a nominal fee paid for a communication to the general public.

Solicitation expenditure limit Currently, if a corporation or cooperative establishes a segregated fund for the purpose of supporting a candidate for state or local office, the corporation or cooperative may not expend more than $500 annually to solicit contributions to the fund or to a conduit. This bill eliminates this limit on expenditures made to solicit contributions.

Committee transfers Under current law, no individual who is a candidate for state or local office may receive in contributions more than 65 percent of the value of the total disbursement level for the office for which he or she is a candidate during any primary and election campaign combined from all committees, including political party and legislative campaign committees. The bill modifies this limitation so that the amount does not include any transfer from any personal campaign committee to another personal campaign committee.

Under current law, no individual who is a candidate for state or local office may receive in contributions more than 45 percent of the value of the total disbursement level for the office for which he or she is a candidate during any primary and election campaign combined from all committees other than political party and legislative campaign committees. The bill modifies this limitation so that the amount includes any transfer from any personal campaign committee to another personal campaign committee.

Electronic filing Under current law, Government Accountability Board (GAB) must require each registrant for whom GAB serves as a filing officer under the campaign finance laws and who or which accepts contributions of $20,000 or more during a campaign period to file campaign finance reports electronically. In addition, GAB must accept campaign finance reports electronically from any other registrant for whom GAB serves as a filing officer. Current law requires GAB to specify, by rule, software that is suitable for complying with the electronic filing requirement and must provide the software to registrants at a price not to exceed its cost. Any registrant who or which files reports electronically with GAB must also submit a copy of the report to GAB and the copy must be signed by an authorized individual.

Under the bill, the software that GAB specifies for electronic filing must allow an authorized individual to provide an electronic signature that is subject to a security procedure. The bill also eliminates the requirement that a registrant who or which files a report electronically must file a copy with GAB. A registrant who or which files a report electronically may, however, file with GAB that portion of the report signed by an authorized individual rather than submit the electronic signature of that individual.

Registration Under current law, before any group makes or accepts contributions, makes disbursements, or incurs obligations exceeding $750 in the aggregate in any year to promote or oppose a referendum, or before any individual accepts contributions, makes disbursements, or incurs obligations exceeding $750 in the aggregate in any year for such purpose, that group or individual must file a registration statement with the appropriate filing officer. This bill increases the threshold for filing a registration statement for referendum-related activity from $750 to $2,500.

Under current law, every committee, other than a personal campaign committee, that makes or accepts contributions, makes disbursements, or incurs obligations exceeding $25 in the aggregate in any year must file a registration statement. The bill increases the registration threshold for such a committee from $25 to $500.

Finally, under current law, every individual, other than a candidate or a candidate's agent, who accepts contributions, makes disbursements, or incurs obligations exceeding $25 in the aggregate in any year to support or oppose the election or nomination of a candidate must file a registration statement. The bill increases the registration threshold for such an individual from $25 to $1,000.

Campaign finance reporting Under current law, a committee that is not acting in concert with a candidate and that makes one or more disbursements totaling $20 or more to advocate the election or defeat of a candidate within 15 days before a primary or election must submit a report documenting the disbursement to the appropriate filing officer within 24 hours and must include information about the disbursement in its next regular report. Similarly, under current law, if any contribution or contributions from a single contributor and totaling $500 or more are made to a candidate for state office or to a committee or individual within 15 days before a primary or election and the contribution is not included in a preprimary or preelection report, the recipient of the contribution must, within 24 hours, make a report to the appropriate filing officer, and must include the contribution in its next regular report. This bill extends the reporting period for such late filings from 24 hours to 48 hours.

Conduits; redirection of certain unclaimed contributions The bill allows a conduit to redirect contributions made to the conduit but unclaimed for a period of two years to a committee, other than a personal campaign committee, that sponsors the conduit if there is such a committee or, if there is not such a committee, to the conduit's administrative fund. Prior to redirecting the unclaimed contribution, the conduit must either receive authorization from the surviving spouse or executor of the estate of a deceased individual to redirect the contribution or make at least ten good faith attempts to contact a contributor over the two-year period without success. The conduit may attempt to contact the contributor by U.S. mail, by electronic mail, or by telephone. The required attempts to contact the contributor may not all occur within one 30-day period. The bill requires the conduit to identify the sponsor on the conduit's registration form and to include on the conduit's financial report when a contribution is redirected.

Campaign contributions by lobbyists Currently, no lobbyist may furnish anything of pecuniary value to a state agency official, legislative employee of the state, elective state official, candidate for elective state office, or the personal campaign committee of such an official, employee, or candidate except that a lobbyist may make a campaign contribution to an official or candidate who seeks office at the general (November) election or a partisan special election. The period during which a lobbyist may make a campaign contribution to an official or candidate at the general election or to the personal campaign committee of such an official or candidate begins on June 1 immediately preceding the election and ends on the date of the election.

This bill provides that a lobbyist may furnish a campaign contribution to such an official, employee, candidate, or committee at any time but that no lobbyist may personally make a campaign contribution except during the period when contributions are permitted to be made. This bill also extends the time during which a lobbyist may make such a contribution to between the first day authorized by law for the circulation of nomination papers as a candidate and the day of the election or special election.