1 HB365
2 207804-1
3 By Representative Sorrell
4 RFD: Ethics and Campaign Finance
5 First Read: 09-FEB-21
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1 207804-1:n:07/30/2020:PMG/tj LSA2020-1612
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8 SYNOPSIS: Under existing law, a candidate, public
9 official, or principal campaign committee may
10 accept, solicit, or receive campaign contributions
11 for a period of 120 days following an election for
12 the purpose of paying down campaign debt.
13 This bill would require a candidate, public
14 official, or principal campaign committee who
15 accepts, solicits, or receives campaign
16 contributions during the 120-day period after the
17 election in order to pay down campaign debt to
18 report the campaign debt to the appropriate filing
19 official and would prohibit a candidate from
20 accepting contributions that exceed the amount
21 reported.
22 This bill would create the Campaign Debt
23 Clarification Act.
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25 A BILL
26 TO BE ENTITLED
27 AN ACT
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2 Relating to campaign finance; to amend Sections
3 17-5-2, 17-5-7, 17-5-8, and 17-5-9, Code of Alabama 1975; to
4 create the Campaign Debt Clarification Act; to require a
5 candidate, public official, or principal campaign committee
6 who accepts, solicits, or receives campaign contributions to
7 pay down campaign debt during the 120-day period after the
8 election to report the campaign debt to the appropriate filing
9 official; and to limit a candidate, public official, or
10 principal campaign committee from accepting, soliciting, or
11 receiving campaign contributions in excess of the amount of
12 campaign debt reported.
13 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
14 Section 1. This act shall be known and may be cited
15 as the Campaign Debt Clarification Act.
16 Section 2. Sections 17-5-2, 17-5-7, 17-5-8, and
17 17-5-9, Code of Alabama 1975, are amended to read as follows:
18 "17-5-2.
19 "(a) For purposes of this chapter, the following
20 terms shall have the following meanings:
21 "(1) CANDIDATE. An individual who has done any of
22 the following:
23 "a. Taken the action necessary under the laws of the
24 state to qualify himself or herself for nomination or for
25 election to any state office or local office or in the case of
26 an independent seeking ballot access, on the date when he or
27 she files a petition with the judge of probate in the case of
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1 county offices, with the appropriate qualifying municipal
2 official in the case of municipal offices, or the Secretary of
3 State in all other cases.
4 "b. Received contributions or made expenditures in
5 excess of one thousand dollars ($1,000), or given his or her
6 consent for any other person or persons to receive
7 contributions or make expenditures in excess of one thousand
8 dollars ($1,000), with a view to bringing about his or her
9 nomination or election to any state office or local office.
10 "(2) COMMISSION. The State Ethics Commission created
11 pursuant to Section 36-25-3.
12 "(3) CONTRIBUTION.
13 "a. Any of the following shall be considered a
14 contribution:
15 "1. A gift, subscription, loan, advance, deposit of
16 money or anything of value, a payment, a forgiveness of a
17 loan, or payment of a third party, made for the purpose of
18 influencing the result of an election.
19 "2. A contract or agreement to make a gift,
20 subscription, loan, advance, or deposit of money or anything
21 of value for the purpose of influencing the result of an
22 election.
23 "3. Any transfer of anything of value received by a
24 political committee from another political committee,
25 political party, or other source.
26 "4. The payment of compensation by any person for
27 the personal services or expenses of any other person if the
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1 services are rendered or expenses incurred on behalf of a
2 candidate, political committee, or political party without
3 payment of full and adequate compensation by the candidate,
4 political committee, or political party. Provided, however,
5 that the payment of compensation by a corporation for the
6 purpose of establishing, administering, or soliciting
7 voluntary contributions to a separate, segregated fund as
8 permitted in this chapter, shall not constitute a
9 contribution.
10 "b. The term "contribution" does not include:
11 "1. The value of services provided without
12 compensation by individuals who volunteer a portion or all of
13 their time on behalf of a candidate or political committee.
14 "2. The use of real or personal property and the
15 cost of invitations, food, or beverages, voluntarily provided
16 by an individual to a candidate or political committee in
17 rendering voluntary personal services on the individual's
18 residential or business premises for election-related
19 activities.
20 "3. The sale of any food or beverage by a vendor for
21 use in an election campaign at a charge to a candidate or
22 political committee less than the normal comparable charge, if
23 the charge to the political committee for use in an election
24 campaign is at least equal to the cost of the food or beverage
25 to the vendor.
26 "4. Any unreimbursed payment for travel expenses
27 made by an individual who, on his or her own behalf,
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1 volunteers personal services to a candidate or political
2 committee.
3 "5. The payment by a state or local committee of a
4 political party of the cost of preparation, display, or
5 mailing or other distribution incurred by the committee with
6 respect to a printed slate card or sample ballot, or other
7 printed listing of two or more candidates for any public
8 office for which an election is held in the state, except that
9 this subparagraph shall not apply in the case of costs
10 incurred by the committee with respect to a display of the
11 listing made on broadcasting stations, or in newspapers,
12 magazines, or other similar types of general public political
13 advertising.
14 "6. The value or cost of polling data and voter
15 preference data and information if provided to a candidate or
16 political committee, unless the information was compiled with
17 the advance knowledge of and approval of the candidate or the
18 political committee.
19 "c. For purposes of reporting contributions as
20 required by this chapter, the date of receipt of a
21 contribution shall be the first date the recipient of the
22 contribution is able to make use of the contribution. In the
23 case of a contribution in the form of a check, the date of
24 receipt is the earlier of either of the following:
25 "1. Ten days from the date that the check came
26 within the recipient's control.
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1 "2. The date that the check was deposited into the
2 recipient's account.
3 "(4) DESIGNATED FILING AGENT. An individual
4 appointed and authorized as attorney in fact to electronically
5 submit any report or other filing required by this chapter on
6 behalf of a candidate, his or her principal campaign
7 committee, or a political action committee.
8 "(5) ELECTION. Unless otherwise specified, any
9 general, special, primary, or runoff election, or any
10 convention or caucus of a political party held to nominate a
11 candidate, or any election at which a constitutional amendment
12 or other proposition is submitted to the popular vote.
13 "(6) ELECTIONEERING COMMUNICATION. Any communication
14 disseminated through any federally regulated broadcast media,
15 any mailing, or other distribution, electronic communication,
16 phone bank, or publication which (i) contains the name or
17 image of a candidate; (ii) is made within 120 days of an
18 election in which the candidate will appear on the ballot;
19 (iii) the only reasonable conclusion to be drawn from the
20 presentation and content of the communication is that it is
21 intended to influence the outcome of an election; and (iv)
22 entails an expenditure in excess of one thousand dollars
23 ($1,000).
24 "(7) EXPENDITURE.
25 "a. The following shall be considered expenditures:
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1 "1. A purchase, payment, distribution, loan,
2 advance, deposit, or gift of money or anything of value made
3 for the purpose of influencing the result of an election.
4 "2. A contract or agreement to make any purchase,
5 payment, distribution, loan, advance, deposit, or gift of
6 money or anything of value, for the purpose of influencing the
7 result of an election.
8 "3. The transfer, gift, or contribution of funds of
9 a political committee to another political committee.
10 "4. The payment of any qualifying fee or other cost
11 associated with qualifying to run for office.
12 "b. The term "expenditure" does not include:
13 "1. Any news story, commentary, or editorial
14 prepared by and distributed through the facilities of any
15 broadcasting station, newspaper, magazine, or other periodical
16 publication, unless the facilities are owned or controlled by
17 any political party or political committee.
18 "2. Nonpartisan activity designed to encourage
19 individuals to register to vote, or to vote.
20 "3. Any communication by any membership organization
21 to its members or by a corporation to its stockholders and
22 employees if the membership organization or corporation is not
23 organized primarily for the purpose of influencing the result
24 of an election.
25 "4. The use of real or personal property and the
26 cost of invitations, food, or beverages, voluntarily provided
27 by an individual in rendering voluntary personal services on
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1 the individual's residential or business premises for
2 election-related activities.
3 "5. Any unreimbursed payment for travel expenses
4 made by an individual who, on his or her own behalf,
5 volunteers personal services to a candidate or political
6 committee.
7 "6. Any communication by any person which is not
8 made for the purposes of influencing the result of an
9 election.
10 "7. The payment by a state or local committee of a
11 political party of the cost of preparation, display, or
12 mailing or other distribution incurred by the committee with
13 respect to a printed slate card or sample ballot, or other
14 printed listing of two or more candidates for any public
15 office for which an election is held in the state, except that
16 this subparagraph shall not apply in the case of costs
17 incurred by the committee with respect to a display of the
18 listing made on broadcasting stations, or in newspapers,
19 magazines, or other similar types of general public political
20 advertising.
21 "c. For purposes of reporting expenditures as
22 required by this chapter, the date an expenditure is made is
23 the date the instrument authorizes the expenditure. In the
24 case of an expenditure made by check or electronic payment,
25 the date of expenditure is the date of the check or electronic
26 payment.
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1 "(8) IDENTIFICATION. The full name and complete
2 address.
3 "(9) LOAN. A transfer of money, property, or
4 anything of value in consideration of a promise or obligation,
5 conditional or not, to repay in whole or part.
6 "(10) LOCAL OFFICE. Any office under the
7 constitution and laws of the state, except circuit, district,
8 or legislative offices, filled by election of the registered
9 voters of a single county or municipality, or by the voters of
10 a division contained within a county or municipality.
11 "(11) PERSON. An individual, partnership, committee,
12 association, corporation, labor organization, or any other
13 organization or group of persons.
14 "(12) PERSONAL AND LEGISLATIVE LIVING EXPENSES.
15 Household supplies, personal clothing, tuition payments,
16 mortgage, rent, or utility payments for a personal residence;
17 admission to an entertainment event or fees for a country club
18 or social club, unless tied to a specific campaign event or
19 functions involving constituents; and any other expense,
20 excluding food and beverages, that would exist irrespective of
21 the candidate's campaign or duties as a legislator. Personal
22 and legislative living expenses shall not include expenses for
23 food, beverages, travel, or communications incurred by the
24 legislator in the performance of the office held.
25 "(13) POLITICAL ACTION COMMITTEE. Any committee,
26 club, association, political party, or other group of one or
27 more persons, whether in-state or out-of-state, which receives
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1 or anticipates receiving contributions and makes or
2 anticipates making expenditures to or on behalf of any Alabama
3 state or local elected official, proposition, candidate,
4 principal campaign committee or other political action
5 committee. For the purposes of this chapter, a person who
6 makes a political contribution shall not be considered a
7 political action committee by virtue of making such
8 contribution.
9 "(14) POLITICAL PARTY. A political party as defined
10 in Section 17-13-40.
11 "(15) PRINCIPAL CAMPAIGN COMMITTEE. The principal
12 campaign committee designated by a candidate under Section
13 17-5-4. A political action committee established primarily to
14 benefit an individual candidate or an individual elected
15 official shall be considered a principal campaign committee
16 for purposes of this chapter.
17 "(16) PROPOSITION. Any proposal for submission to
18 the general public for its approval or rejection, including
19 proposed as well as qualified ballot questions.
20 "(17) PUBLIC OFFICIAL. Any person elected to public
21 office, whether or not that person has taken office, by the
22 vote of the people at the state, county, or municipal level of
23 government or their instrumentalities, including governmental
24 corporations, and any person appointed to a position at the
25 state, county, or municipal level of government or their
26 instrumentalities, including governmental corporations. For
27 purposes of this chapter, a public official includes the
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1 chairs and vice chairs or the equivalent offices of each state
2 political party as defined in Section 17-13-40.
3 "(18) QUALIFYING CAMPAIGN DEBT. Any debt or
4 obligation incurred by a candidate's principal campaign
5 committee, either before or after an election, that is related
6 to the candidate's campaign for the election of the candidate
7 or the winding down of the campaign after that election. The
8 term excludes the principal campaign committee's cash or other
9 assets on hand and any commitments or obligations of the
10 principal campaign committee for future goods or services
11 which may be cancelled, such as monthly contracts for goods or
12 services.
13 "(18)(19) STATE. The State of Alabama.
14 "(19)(20) STATE OFFICE. All offices under the
15 constitution and laws of the state filled by election of the
16 registered voters of the state or of any circuit or district
17 and shall include legislative offices.
18 "(b) The words and terms used in this chapter shall
19 have the same meanings respectively ascribed to them in
20 Section 36-25-1.
21 "17-5-7.
22 "(a) Except as provided in subsection (d) and in
23 Section 17-5-7.1, a candidate, public official, or treasurer
24 of a principal campaign committee as defined in this chapter,
25 may only use campaign contributions, and any proceeds from
26 investing the contributions that are in excess of any amount
27 necessary to defray expenditures of the candidate, public
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1 official, or principal campaign committee, for the following
2 purposes:
3 "(1) Necessary and ordinary expenditures of the
4 campaign.
5 "(2) Expenditures that are reasonably related to
6 performing the duties of the office held. For purposes of this
7 section, expenditures that are reasonably related to
8 performing the duties of the office held do not include
9 personal and legislative living expenses, as defined in this
10 chapter.
11 "(3) Donations to the State General Fund, the
12 Education Trust Fund, or equivalent county or municipal funds.
13 "(4) Donations to an organization to which a federal
14 income tax deduction is permitted under subparagraph (A) of
15 paragraph (1) of