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1994 SESSION

LD2252180
HOUSE BILL NO. 422
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the Joint Conference Committee
on March 12, 1994)
(Patron Prior to Substitute--Delegate Croshaw)
A BILL to amend and reenact §§ 24.2-901, 24.2-908, 24.2-910, 24.2-911, 24.2-912, 24.2-916, 24.2-917, 24.2-919, 24.2-922, and 24.2-923 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 9 of Title 24.2 an article numbered 4.1, consisting of sections numbered 24.2-928.1 through 24.2-928.6, relating to campaign finance disclosure, contribution limits, and penalties.

Be it enacted by the General Assembly of Virginia:

1. That §§ 24.2-901, 24.2-908, 24.2-910, 24.2-911, 24.2-912, 24.2-916, 24.2-917, 24.2-919, 24.2-922, and 24.2-923 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding in Chapter 9 of Title 24.2 an article numbered 4.1, consisting of sections numbered 24.2-928.1 through 24.2-928.6, as follows:

§ 24.2-901. Definitions.

As used in this chapter, unless the context requires a different meaning:

"Campaign committee" means the committee designated by a candidate to receive all contributions and make all expenditures for him or on his behalf in connection with his nomination or election.

"Contribution" means money and services of any amount, and any other thing of value over $100, given, advanced, promised, loaned, or in any other way provided to a candidate, campaign committee, political committee, political party committee, inaugural committee, or person for the purpose of influencing the outcome of an election or defraying the costs of the inauguration of a Governor, Lieutenant Governor, or Attorney General. "Contribution" includes money, services, or things of value in any way provided by a candidate to his own campaign. "Contribution" includes any money, services, or things of value donated to an elected officeholder in response to a solicitation by him, by any means, for donations to defray the cost of constituent mailings or other expenses incidental to his elected office, but shall not include services or facilities incidental to his elected office available to him at his primary business or workplace apart from his elected office.

"Expenditure" means money and services of any amount, and any other thing of value over $100, paid, promised, loaned, provided, or in any other way disbursed by any candidate, campaign committee, political committee, political party committee, inaugural committee, or person for the purpose of influencing the outcome of an election or defraying the costs of the inauguration of a Governor, Lieutenant Governor, or Attorney General. "Expenditure" includes the disbursement of contributions received by an elected officeholder for constituent mailings and other expenses incidental to his elected office.

"Inaugural committee" means any committee which anticipates receiving contributions or making expenditures, from other than publicly appropriated funds, for the inauguration of the Governor, Lieutenant Governor, or Attorney General and related activities.

"Independent expenditure" means an expenditure made by any person, or political committee, or political party committee which is not made to, controlled by, coordinated with, or made upon consultation with a candidate, his campaign committee, or an agent of the candidate or his campaign committee.

"Legislative caucus committee" means a committee controlled by the caucus of each political party of either or both houses of the General Assembly.

"Person" means any individual or corporation, partnership, business, labor organization, membership organization, association, cooperative, or other like entity.

"Political action committee" means any organization, other than a campaign committee or political party committee, established or maintained in whole or in part to receive and expend contributions for political purposes.

"Political committee" means any state political party committee, congressional district political party committee, county or city political party committee for a county or city with a population of more than 100,000, organized political party group of elected officials, political action committee, or other committee or group of persons which receives contributions or makes expenditures for the purpose of influencing the outcome of any election. The term shall not include: a campaign committee or a political party committee exempted pursuant to § 24.2-911.

"Political party committee" means the generally recognized organization which, according to the bylaws of the political party, is responsible for the daily operation of the party at the state, congressional district, county, city, or other district level, any generally recognized auxiliary group of a political party committee, and any legislative caucus committee.

§ 24.2-908. Statement of organization.

Each person, and political committee, and political party committee not exempt pursuant to § 24.2-911, which anticipates receiving contributions or making expenditures in excess of $100, shall file with the State Board a statement of organization (i) within ten days after its organization or, if later, within ten days after the date on which it has information which causes the person or committee to anticipate it will receive contributions or make expenditures in excess of $100 or on which it otherwise becomes subject to the provisions of this chapter, and (ii) annually thereafter by January 15. This requirement shall not apply to a person or committee whose only disbursement is in the form of a contribution and which itself receives no contributions from which the disbursement is made.

The statement of organization shall include:

1. The name and address of the person or committee;

2. The names, addresses, and relationships of affiliated or connected organizations;

3. The area, scope, or jurisdiction of the person or committee;

4. The name, residence and business addresses, and position of the custodian, if any, of books and accounts;

5. The name, residence address, and position of other principal officers, including officers and members of the finance committee, if any;

6. The name, address, office sought, and party affiliation of each individual whom the person or committee is supporting or opposing for nomination or for election to any public office whatever or, if supporting the entire ticket of any party, the name of the party;

7. In the event the person or committee is promoting or opposing a referendum, the subject of the referendum, the date and location of the election, and a statement whether the person or committee is promoting or opposing the referendum question;

8. In the case of an inaugural fund committee, the name, address, and office to which elected of the person on whose behalf the committee is organized;

9. A statement whether the person or committee is a continuing one;

10. The disposition of residual funds which will be made in the event of dissolution;

11. A listing of all banks, safe-deposit boxes, or other repositories used; and

12. Such other information as shall be required by the State Board.

Any change in information previously submitted in a statement of organization shall be reported to the State Board within ten days following the change.

Any person or committee which, after having filed one or more statements of organization, disbands or determines it will no longer receive contributions or make expenditures during the calendar year in an aggregate amount exceeding $100 shall so notify the State Board.

§ 24.2-910. Persons, political committees, and political party committees required to file disclosure reports.

A. Any person or , political committee , or political party committee required to file a statement of organization by § 24.2-908 shall be required to maintain records and file disclosure reports as provided in Article 4.

B. Any person or , political committee, or political party committee required to file a statement of organization by § 24.2-908 and making independent expenditures shall maintain records and report pursuant to Article 4 all contributions received and expenditures made of:

1. Any funds, in the aggregate, in excess of $500 for a statewide election or $100 for any other election expended for the purpose of influencing the outcome of any election;

2. Any funds in any amount expended to publish or broadcast to the public any material referring to a candidate by name, description, or other reference and (i) advocating his election or defeat, (ii) setting forth his position on any public issue, voting record, or other official acts, or (iii) otherwise designed to influence individuals to cast their votes for or against him or to withhold their votes from him; and

3. Any funds in any amount expended to publish or broadcast to the public any material promoting or opposing a question submitted to the voters in a referendum.

§ 24.2-911. Application of chapter to political party committees; exemption.

A. Except as provided in §§ 24.2-907 and 24.2-912, any district, county, or city party committee and any organized political party group of elected officials shall be exempt from the reporting requirements of this chapter. Contributions made by such committee or group to any candidate, his campaign committee, or a political committee shall be reported by the recipient of the contribution in accordance with the provisions of this chapter.

B. The exemption provided in this section shall not be applicable to state political party committees, congressional district political party committees, or county or city political party committees for any county or city with a population of more than 100,000, or organized political party groups of elected officials. Any other political party committee shall be exempt from the reporting and notification requirements of this chapter, except as provided in §§ 24.2-907 and 24.2-912, in each calendar year in which it does not accept contributions totaling more than $10,000, or make contributions and expenditures totaling more than $10,000. Any such committee shall be subject to such reporting requirements as soon as it accepts aggregated contributions, or makes aggregated contributions and expenditures, in excess of $10,000 in a calendar year. The first report filed pursuant to § 24.2-923 shall account for all receipts and disbursements during the calendar year and shall be complete through the completion date for the report period. The State Board of Elections, by regulation, shall adjust the $10,000 threshold annually for inflation, but not decrease the threshold below $10,000.

A. Every political party committee shall comply with the requirements of §§ 24.2-907 and 24.2-912.

B. The report requirements of §§ 24.2-908 and 24.2-910 and of Article 4 (§ 24.2-914 et seq.) of this chapter shall apply to every (i) legislative caucus committee, (ii) state political party committee, (iii) congressional district political party committee, (iv) county or city political party committee for a county or city with a population of more than 100,000, and (v) other political party committee which, in any calendar year, accepts contributions totaling more than $10,000 or makes contributions and expenditures totaling more than $10,000. Any clause (v) political party committee shall be subject to such report requirements as soon as it accepts aggregated contributions, or makes aggregated contributions and expenditures, in excess of $10,000 in a calendar year. The first report filed pursuant to Article 4 of this chapter shall account for all receipts and disbursements during the calendar year complete through the completion date for the applicable report period.

C. Political party committees not enumerated in subsection B shall be exempt from the report requirements of §§ 24.2-908 and 24.2-910 and of Article 4 of this chapter.

D. The State Board of Elections annually shall adjust the $10,000 threshold established in subsection B to the nearest $100 based on the percentage increase, if any, in the United States Average Consumer Price Index for all items as published by the Bureau of Labor Statistics of the United States Department of Labor from its monthly average from one calendar year to another.

§ 24.2-912. Political party committees required to report designated contributions.

A. Every state, district, county, and city party committee and every organized political party group of elected officials political party committee shall file a report of contributions received by it and designated in writing, orally, or otherwise by the contributor for the election of a specified candidate or candidates. The report shall (i) be on a form prescribed by the State Board and may be incorporated in the report of contributions and expenditures prescribed in § 24.2-914, (ii) provide for the reporting of the receipt and disbursement of designated contributions, including information to identify the contributor, as provided in § 24.2-914, (iii) include the name of the candidate for whose election the contributor has designated the contribution, and (iv) be filed with the State Board or local electoral board in accordance with § 24.2-923.

B. Either the failure to file any report or the late filing of any report required by this section shall constitute a violation of this chapter subject to the penalties provided in § 24.2-929.

§ 24.2-916. Filing schedule for candidates for office generally.

A candidate for any office, other than as provided in § 24.2-917 for a local office to be filled at a May general election or in § 24.2-918 for certain special elections, shall file the prescribed reports of contributions and expenditures as follows:

1. Not later than July 15 in a nonelection year for the period January 1 through June 30;

2. Not later than January 15 following a nonelection year for the period July 1 through December 31;

3. In an election year, not later than April 15 for the period January 1 through March 31 and pursuant to subdivisions 4 through 9 of this section;

4. Not later than the eighth day before the June primary date complete through the thirteenth day before the primary date;

5. Not later than July 15 complete through June 30;

6. Not later than September 15 complete through August 31;

7. Not later than October 15 8 complete through September 30;

7. 8. Not later than the eighth day before the November election date complete through the thirteenth day before the election date;

8. 9. Not later than the thirtieth day after the November election date complete through the twenty-third day after the election date; and

9. 10. Not later than January 15 following an election year complete through December 31, and then in accordance with subdivisions 1 and 2 or subdivisions 3 through 9 10, as appropriate, of this subsectionsection until a final report is filed.

Any candidate shall also file the report of certain large pre-election contributions required by § 24.2-919, if applicable. The report required by subdivision 89 of this section shall not be applicable to political party committees.

§ 24.2-917. Filing schedule for candidates for offices filled at May general elections.

Any candidate for election to a local office to be filled at a May general election shall file the prescribed reports of contributions and expenditures as follows:

1. For municipal primary candidates only, not later than the eighth day before the primary date complete through the eleventh day before the primary;

2. Not later than the eighth day before the election date complete through the eleventh day before the election date;

3. Not later than June 15 of the election year complete through June 10;

4. Not later than July 15 of the election year complete through July 10 June 30; and

5. Not later than the following January 15 complete through December 31 and annually thereafter until a final report is filed as provided in § 24.2-920.

Any candidate shall also file the report of certain large pre-election contributions required by § 24.2-919, if applicable.

§ 24.2-919. Special report required of certain large pre-election contributions.

A. Except as provided in subsection B, any single contribution of more than $1,000 for a statewide office or more than $500 for any other office, knowingly received or reported by the candidate or his treasurer on behalf of his candidacy (i) between the thirteenth day preceding a June primary, and the primary day, (ii) between the thirteenth day preceding a November election date or and the election day, or (iii) between the eleventh day preceding any other election in which the individual is a candidate and the election day, shall be reported in writing within seventy-two hours; however, any such contribution received within the seventy-two hours prior to the election day shall be reported and a report thereof received no later than the day prior to the election. Statewide and General Assembly candidates shall file all reports required by this section with the State Board and with the electoral board of the locality where the candidate resides. Any candidate for a constitutional or local office shall file such reports with the electoral board of the locality where the candidate resides. Any contribution reported pursuant to this section shall also be reported on the first report required by this article after any election.

B. The provisions of this subsection apply to any candidate for election to office in November who is nominated by a political party by convention or any other method other than a primary. The report requirements of subsection A shall be applicable except that the reporting period shall be from March 31 through and including the date of the convention or other nomination method.

§ 24.2-922. Reports as conditions to qualification for office.

No person shall be permitted to qualify for any office, enter upon the duties thereof, or receive any salary or emoluments therefrom until he has filed the reports required in subdivisions 3, 4, 5, 6, 7 and 8 through 9 of § 24.2-916; subdivisions 1, 2, and 3 of § 24.2-917; and subdivisions B 1 and B 3 of § 24.2-918, as applicable. No officer authorized by the laws of this Commonwealth to issue certificates of election shall issue one to any person determined to be elected to any such office, until copies of the reports cited above have been filed as required in this article.

§ 24.2-923. Filing schedule for persons and committees.

A. Persons and, political committees, and political party committees not exempt pursuant to § 24.2-911, shall file the prescribed reports of contributions and expenditures with the State Board in accordance with the applicable schedule set out in §§ 24.2-916 through 24.2-919. The first filed report shall be complete for the entire period from the time the committee was organized or contributions were received. A committee shall comply with the election year schedule for each year in which it seeks to influence the outcome of the election. Each political party committee for a county, city, or local district shall also file the report with the local electoral board.

B. The reporting requirements shall continue in effect for each committee until a final report is filed which sets forth (i) all receipts and disbursements not previously reported, (ii) an accounting of the retirement of all debts, and (iii) the disposition of all residual funds. The final report shall include a termination statement, signed by an officer of the committee, that all reporting is complete and final.

Article 4.1.

Limits on Contributions.

§ 24.2-928.1. Limits on contributions to candidates for Governor, Lieutenant Governor, Attorney General, and the General Assembly.

A. The provisions of this article apply only to elections for Governor, Lieutenant Governor, Attorney General, and the General Assembly.

B. No person or political committee except a political action committee shall make contributions to a candidate for Governor, Lieutenant Governor, or Attorney General which, in the aggregate, exceed $5,000 in value for any one candidate in any one election. No political action committee shall make contributions to a candidate for Governor, Lieutenant Governor, or Attorney General which, in the aggregate, exceed $10,000 in value for any one candidate in any one election.

C. No person or political committee except a political action committee shall make contributions to a candidate for the General Assembly which, in the aggregate, exceed $1,000 in value in any one calendar year. In addition to the stated calendar year limits, a person or political committee other than a political action committee may make contributions to a candidate for the General Assembly which, in the aggregate, do not exceed in any regular election year for the House of Delegates $1,000 in value on or before the June primary date and an additional $1,000 in value after the June primary date. No political action committee shall make contributions to a candidate for the Senate or House of Delegates which, in the aggregate, exceed $2,000 in value for any one election for such office.

D. No candidate shall solicit or accept any contribution in excess of the limits stated in this section.

E. The restrictions of this section shall not apply to:

1. Contributions by the candidate of his own personal funds to his own campaign;

2. Contributions to a political committee;

3. Contributions to or from a political party committee; or

4. The in-kind contribution of campaign committee headquarters office space to a candidate for all or any part of the period beginning 120 days before and ending 30 days after the general or special election date for the office which the candidate seeks.

F. The limits stated in this section for a political action committee shall apply to contributions by an inaugural committee. The limits stated in this section for an individual shall apply to contributions by the campaign committee of a candidate to any other candidate.

G. For the purposes of this article, the term "candidate" means the candidate, the candidate's treasurer, and the candidate's campaign committee, and any contribution to the candidate's treasurer or campaign committee shall be deemed a contribution to the candidate.

H. For the purposes of applying the limits stated in this section, each primary, general, or special election, and each method of political party nomination other than a primary, shall constitute a separate election without regard to whether the candidate is opposed or unopposed in the election or nomination process. For any independent candidate, the period ending on the regular primary date for the office he is seeking shall be deemed to be one election and the period following the primary date shall be deemed to be a second election.

I. A contributor may designate all or a portion of a contribution made by him during the sixty days following the primary date as a contribution for the primary or other nominating method. Contributions made after the primary date shall be deemed contributions for the general or special election unless otherwise designated as provided in this subsection.

J. A candidate who is defeated in the primary or nomination process and has a campaign deficit may continue to accept contributions to retire the deficit subject to the limits applicable to the primary or nomination process.

K. The candidate shall report separately (i) contributions received prior to the primary date or designated for the primary or other nominating method pursuant to subsection I of this section and (ii) contributions received after the primary date and not so designated. In addition, candidates for the General Assembly shall report contributions by calendar year. Candidates may otherwise maintain records of receipts and expenditures for the campaign both before and after the primary date on a continuing basis.

L. Any contribution or portion thereof returned within sixty days after receipt shall not be deemed to be a contribution for purposes of applying the limits stated in this section.

M. The limits stated in this section shall cease to be applicable to the candidates for election to a single office on and after the second day following the date on which any candidate for that office contributes to his own campaign an aggregate amount in excess of $100,000 in the case of a statewide election or $25,000 in the case of an election for the General Assembly. In addition to any other reporting requirements of this chapter, any candidate, who contributes an amount in excess of the applicable aggregate amount stated in this subsection, shall file a report with the State Board of Elections showing such aggregate contribution by him to his own campaign within forty-eight hours of making such contribution.

§ 24.2-928.2. Prohibition on indirect contributions.

No person, political committee, or other entity shall knowingly contribute to any other person, political committee, or other entity, for the purpose of contributing to a specific candidate, any contributions that, when added together, or added together with contributions made directly to the candidate, have an aggregate value in excess of the limits stated in this section.

§ 24.2-928.3. Aggregation of contributions.

For purposes of applying the contribution limits stated in § 24.2-928.1:

1. All contributions knowingly made by a person or political committee whose contribution or expenditure activity is financed, maintained, or controlled by a corporation, labor organization, association, or any other person, including a parent, subsidiary, branch, division, department, or local unit of the corporation, labor organization, association, or any other person, or by a group of such persons are considered made by the same person or political committee. However, the contributions made by a statewide membership association or statewide labor organization or by a single political committee financed, maintained, or controlled by such statewide association or labor organization and the contributions made by a single member corporation or a single member labor organization or by a political committee sponsored by such member corporation or member labor organization shall not be considered to be made by the same person or political committee;

2. Two or more entities are treated as a single entity if the entities (i) share the majority of members on their boards of directors and share two or more officers; (ii) are owned or controlled by the same majority shareholder or shareholders; (iii) are in a parent-subsidiary relationship; or (iv) have by-laws stating that one organization controls the other; and

3. A candidate's campaign committee and a committee other than a candidate's campaign committee are treated as a single committee if the committees both have the candidate or a member of the candidate's immediate family as an officer. For the purposes of this subdivision, "immediate family" means the spouse, parent, child, or sibling of the candidate.

§ 24.2-928.4. Attribution and aggregation of family contributions.

For purposes of applying the contribution limits stated in § 24.2-928.1:

1. Contributions by a husband and wife are considered separate contributions and not aggregated, and

2. Contributions by unemancipated children under eighteen years of age are considered contributions by their parents and attributed proportionately to each parent. Fifty percent of the contributions are attributed to each parent or, in the case of a single custodial parent, the total amount is attributed to the parent.

§ 24.2-928.5. Restrictions on loans.

A loan is considered a contribution from the maker and the guarantor of the loan and is subject to the contribution limits stated in § 24.2-928.1.

A loan to a candidate or the candidate's campaign committee must be by written agreement.

The proceeds of a loan made to a candidate will not be subject to the contribution limits stated in § 24.2-928.1 if the loan (i) is made by a commercial lending institution in the regular course of business and on the same terms ordinarily available to members of the public and (ii) is secured or guaranteed by the candidate.

§ 24.2-928.6. Penalties.

In addition to the penalties provided in Article 5 (§ 24.2-929 et seq.) of this chapter, any candidate, who knowingly accepts any contribution in excess of the limits stated in § 24.2-928.1, shall be subject to a civil penalty equal in amount to twice the amount of the excess. This civil penalty shall be enforced as provided in § 24.2-929.

2. That the provisions of this act shall become effective January 1, 1995, and shall not be applicable to elections held before January 1, 1995.

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