POLITICAL CAMPAIGN COMMITTEES Registration Present law requires each candidate and each political campaign committee to certify the name and address of the candidate's or committee's political treasurer to the registry of election finance or the county election commission, where appropriate, before the candidate or committee may receive a contribution or make an expenditure in a state or local election. This bill requires, if a local election covers more than one county, that the local candidate file the certification of a political treasurer with the local election commission in each county in which the local election occurs. Registration Fees This bill requires all political campaign committees registered with the registry of election finance ("registry") to pay an annual registration fee of $150 to the registry upon registration and by no later than January 31 of each successive year. However, candidates for elective office are not required to pay a registration fee. Contributions Present law provides that a "contribution" generally means any transfer of funds, and generally any contract or promise made, for the purpose of influencing a measure or nomination for election. A "contribution" is not the use of real or personal property and the cost of invitations, food and beverages not exceeding $100, voluntarily provided on an individual's residential premises for candidate-related activities. This bill revises this provision to include such use of an entity's commercial property and changes the maximum amount from $100 to $250. Statements Present law requires each candidate for state public office and political campaign committee in a state election to file with the registry a statement of all contributions received and all expenditures made by or on behalf of such candidate or committee. All statements must be signed by the person filing such statement in the presence of one witness who must also sign the statement as a witness. This bill removes the need for a witness signature but adds that all statements must be signed by the person filing such statement under penalty of perjury. This bill further adds that all required statements filed electronically must be filed under penalty of perjury, and each filer is required to acknowledge such as part of the electronic filing process. Complaints Present law authorizes a registered voter of this state to file a sworn complaint alleging that a statement filed regarding an election for which that voter was qualified to vote does not conform to law or to the truth or that a person has failed to file a statement required by law. The registry must conduct a preliminary review to determine if the complaint is factually and legally sufficient and has alternative procedures depending on if the complaint is found to be factually and legally sufficient or not and the circumstances surrounding the complaint. One such procedure is that the registry may order the registry's staff to conduct an investigative audit of the alleged violator's campaign finance disclosure reports. In such instances, the alleged violator is obligated to produce all documentation required and to comply in good faith and with total candor with all requests for documentation or clarification properly requested by the registry's auditor or counsel. This bill adds that the registry may also conduct an investigation, as opposed to an investigative audit, which uses an investigator instead of an auditor. This bill creates another alternative procedure that allows the registry, in lieu of conducting any investigation or audit, to proceed directly to a show cause hearing on the sworn complaint. Unexpended Contributions Present law regulates how a candidate for public office may or must not allocate an unexpended balance of contributions after the election. Generally, the disbursement of campaign funds for a candidate's own personal use is not permitted. "Personal use" means any use by which the candidate for public office or elected public official would be required to treat the amount of the expenditure as gross income. This bill provides that expenditures of campaign funds for the purposes of litigation to advance or support the candidate's nomination for election or election to office or to challenge the legitimacy of a potential opponent's candidacy is deemed not for personal use. However, expenditures of campaign funds for the purposes of litigation to defend the candidate's standing or reputation in the community is deemed a personal use and is prohibited. CAMPAIGN CONTRIBUTIONS Deadline to Accept Contributions Present law provides that required statements of all contributions received and all expenditures made must be filed quarterly during an election year, within 10 days following the conclusion of the quarterly reports ending March 31, June 30, September 30, and January 15. A candidate or an elected state or local official may continue to accept contributions in excess of outstanding debts and obligations relating to an election until the close of the reporting period immediately following the reporting period in which the election occurred. However, this bill prohibits a candidate from accepting an in-kind contribution relating to an election after the date of the election, unless such in-kind contribution is of a nature that allows such contribution to be converted to a monetary value for the purpose of defraying outstanding debts and obligations incurred during that election. Present law authorizes a successful candidate for state or local public office who reports no outstanding loans or obligations to continue to accept contributions for the purpose of defraying officeholder expenses until the close of the reporting period following the date of the election, not including the reporting period in which the election occurs. This bill extends the period during which a successful candidate may continue to accept such contributions to until the close of the reporting period following the date of the election of the officeholder's successor, not including the reporting period in which the election occurs. Limits Present law requires that all contributions made by political campaign committees controlled by a political party on the national, state, or local level or by a caucus of such political party established by members of either house of the general assembly must be considered to have been made by a single committee. Such contributions must not, in the aggregate, exceed:  $250,000 per election to a candidate in a statewide election.  $40,000 per election to a candidate for the senate.  $20,000 per election to a candidate for any other state or local public office. Present law requires such limits to be adjusted every two years to reflect the percentage of change in the average consumer price index. Certain contributions are exempt from these limits. This bill removes these limits and exemptions. Political Campaign Committees Present law prohibits a multicandidate political campaign committee from making contributions to a candidate with respect to any election which, in the aggregate, exceed $7,500 for an office elected by statewide election, the senate, or the house of representatives, and $5,000 for any other state or local public office. This bill provides that political campaign committees controlled by a political party or a caucus of such political party established by members of either house of the general assembly are not subject to these contribution limits. However, a political campaign committee that is associated with a political party or a caucus of such political party established by members of either house of the general assembly, but not directly established, financed, maintained, or controlled by such political party or caucus, is subject to these limits. ETHICS AND LOBBYING Annual Ethics Course Present law requires the Tennessee ethics commission ("commission") to provide an annual orientation ethics course concerning compliance with the laws administered and enforced by the commission for members of the general assembly who have not yet taken the orientation ethics course. The commission must offer an annual current issues course for members of the general assembly who have taken the orientation course. Such courses must be offered on a date or dates when the general assembly is in session and the commission must notify members in advance of the time and location of the courses. This bill requires the annual ethics training to also be provided to all department commissioners in the executive branch and all of the governor's cabinet level staff. Staff of the ethics commission must coordinate with the governor's ethics counsel to identify all executive staff required to receive this annual training and to establish the location for this training. Such training must be offered on a date when the general assembly is in session, and the governor's ethics counsel must notify impacted executive branch members of the time and location of this annual training. Ethics Manual Present law requires the commission to provide a manual for members of the general assembly that includes ethics statutes and administrative regulations relevant to members, explanations of purposes and principles underlying the laws, explanations of technical and specific legal requirements, examples of practical applications of the laws and principles, a question-and-answer section regarding common problems and situations, summaries of advisory opinions, and any other information that would inform members about ethics laws and regulations and assist them in applying those laws and regulations to specific situations. The manual may be distributed to members of the general assembly, and must be made available to the public, by posting the manual in pdf format on the commission's website. This bill requires the manual to be made available to all executive branch officials taking this annual training. Confidentiality Present law requires members and staff of the commission to preserve confidentiality of all commission proceedings. Such records are exempt from public records laws and must remain confidential until (i) the alleged violator requests in writing that the investigation and associated records and meetings be made public, (ii) the commission finds that probable cause exists to believe that a violation has occurred, or (iii) the commission determines that no probable cause exists to believe that a violation has occurred. This bill removes this provision and, instead, provides that all commission proceedings regarding a sworn complaint are public records and are open to public inspection under public records laws, with certain exemptions that are also available under present law. Present law provides that a member of the commission or member of the commission staff who knowingly discloses confidential information commits a Class C misdemeanor, subject to up to 30 days in prison or a fine not to exceed $50. A violation also subjects the person to a maximum civil penalty of $10,000. Violation by a member of the commission is grounds for removal from office. This bill removes this provision and, instead, provides that such a knowing disclosure is grounds for immediate termination of a staff member's employment or immediate removal of a commission member from office. Ethics Complaints Present law authorizes a state citizen to file a sworn complaint alleging a violation of laws or rules within the jurisdiction of the commission. The commission must refer a factually and legally sufficient complaint to the office of the attorney general and reporter, who must conduct a preliminary investigation. This bill makes referring the complaint and its subsequent investigation permissive, providing that the commission may refer a factually and legally sufficient complaint to the office of the attorney general, who may conduct a preliminary investigation. This bill authorizes the commission to alternatively conduct its own investigation, or the commission may conduct a probable cause determination without first investigating. If an investigation is requested, the commission must make a probable cause determination after the office of the attorney general completes its investigation and reports its findings to the commission. OCCUPATION TAX Present law requires a tax be levied on the privilege of engaging in the following vocations, professions, businesses, or occupations: (i) registered lobbyists, (ii) licensed or registered agents, broker-dealers and investment advisers involved in the purchase or sale of securities, and (iii) persons licensed as attorneys by the state supreme court. Beginning in fiscal year 2025, this bill requires 80% of the privilege tax paid by registered lobbyists to be allocated to the budget of the bureau of ethics and campaign finance for purposes of replacing and updating its current information technology platforms and website and to further offset the costs of the bureau in performing its statutory responsibilities.

Statutes affected:
Introduced: 2-10-105(e)(1), 2-10-105, 2-10-102(4)(E), 2-10-102, 2-10-104, 2-10-108(b)(1), 2-10-108, 2-10-108(b)(2), 2-10-114(b), 2-10-114, 2-10-302(e)(1), 2-10-302, 2-10-306, 3-6-113, 3-6-202, 3-6-203(b)(1), 3-6-203, 67-4-1702