Substitute House Bill No. 7128 seeks to amend existing campaign finance laws by clarifying the definitions of "contribution" and "expenditure," particularly in the context of online political donation platforms. The bill repeals and replaces subsection (b) of section 9-601a, introducing new language that defines "contribution" and includes exemptions for certain types of donations, such as loans from banks, nonpartisan voter registration efforts, and volunteer services. It also sets specific monetary limits on these exemptions, such as a maximum of $400 for food and beverage contributions at a single event. Additionally, the bill prohibits lobbyists and state contractors from purchasing advertising space in fundraising programs to enhance transparency and reduce conflicts of interest.

Moreover, the bill introduces provisions that allow voluntary payments made by contributors to online platforms for operational costs to be excluded from the definitions of "contribution" and "expenditure." It mandates that online platforms must obtain affirmative consent from contributors before enrolling them in automatically recurring contributions, ensuring that passive actions do not constitute consent. The bill aims to streamline the online donation process while protecting contributors from unintended charges and enhancing transparency in political fundraising. Overall, the bill is effective upon passage and does not impose any fiscal impact on the state or municipalities.