This bill aims to improve transparency in political funding by introducing new reporting requirements for the ultimate source of funds used in political expenditures. It establishes definitions for terms such as "candidate," "covered person," and "traceable funds," while clarifying existing definitions related to political financing. Covered persons are now required to maintain detailed records of contributions over $200, including the identities of ultimate sources and intermediaries, and must inform contributors about the potential use of their funds. The bill also imposes penalties for non-compliance, categorizing evasion of reporting requirements as a class A misdemeanor, and mandates that covered persons file statements with the Secretary of State within ten days of disbursing traceable funds.

Additionally, the bill allows any individual to file a complaint with the Secretary of State regarding potential violations, requiring an investigation and providing a legal recourse for complainants if no action is taken within a specified timeframe. It affirms the rights of resident taxpayers to pursue civil actions if their constitutional rights are not upheld and enhances transparency in political advertising by mandating the disclosure of funding sources and top donors. The bill also repeals previous sections related to identifying the ultimate source of funds and other provisions, streamlining the legal framework for political contributions and expenditures.

Statutes affected:
INTRODUCED: 16.1-08.1-01, 16.1-10-04.1, 16.1-08.1-08