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An Act To Increase Transparency in Reporting of Party Committees, Political Action Committees and Ballot Question Committees
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  1 MRSA c. 25, sub-c. 3  is enacted to read:
SUBCHAPTER 3
GOVERNOR-ELECT
§ 1051. Disclosure of donations to fund transition and inaugural activities
The Governor-elect may solicit and accept donations for the purposes of financing the costs related to the inauguration of the Governor-elect and financing the operations related to the transition to the office of Governor. If the Governor-elect accepts donations, the Governor-elect must establish a committee and appoint a treasurer who is responsible for keeping records of donations and for filing a financial disclosure statement required by this section. All donations received must be deposited in a separate and segregated account and may not be commingled with any political contributions received by the Governor-elect or the political committee of the Governor-elect or any personal or business funds of the Governor-elect or any other person.
 
1.  Registration with the commission and financial disclosure statement of donors.     A committee established pursuant to this section shall register and file a financial disclosure statement with the commission as required by this subsection.
 
A.  The committee shall register with the commission within 10 days of appointing a treasurer. The registration must include the names and mailing addresses of the members of the committee, its treasurer and all individuals who are raising funds for the committee.
 
B.  The financial disclosure statement must contain the names, addresses, occupations and employers of all donors who have given money or anything of value to the committee, along with the amounts and dates of the donations. Loans must be disclosed as a form of donation. Donors who have given $50 or less may be disclosed in the aggregate without itemization.
 
C.  Any outstanding loan, debt or other obligation of the committee as of the filing deadline under paragraph D must be disclosed as donations to the committee.
 
D.  The financial disclosure statement must be complete and filed by 5:00 p.m. on February 15th of the year following the election.
 
The commission may adopt procedures and forms for the committee to use to disclose its donors. In developing the required format of the financial disclosure statement, the commission shall consider the ease with which the public will be able to access the information and the reasonableness of the burden on the committee or the committee's treasurer.
 
2.  Limitation on fund-raising.     Except as otherwise provided in this section, a committee established pursuant to this section may begin accepting donations on the day after the election of the Governor-elect until January 31st of the year following the election.
 
3.  Prohibited donations during a legislative session.     The Governor-elect or a committee established pursuant to this section or the committee's treasurer may not directly or indirectly solicit or accept a donation from a lobbyist, lobbyist associate or employer during any period of time in which the Legislature is convened before final adjournment. A lobbyist, lobbyist associate or employer may not directly or indirectly give, offer or promise a donation to the Governor-elect, treasurer or committee during any period of time in which the Legislature is convened before final adjournment.
 
4.  Anonymous donations.     A committee established pursuant to this section may not accept an anonymous donation in excess of $10.
 
5.  Disposing of surplus funds.     Prior to the filing of the financial disclosure statement under subsection 1, any surplus funds remaining in the committee's account must either be donated to a charitable organization that qualifies as a not-for-profit corporation under the United States Internal Revenue Code of 1986, Section 501(c)(3) or be remitted to the Treasurer of State.
Sec. 2. 21-A MRSA §1004-A, as amended by PL 2009, c. 302, §§1 and 2, is further amended to read:
§ 1004-A.Penalties
The commission may assess the following penalties in addition to the other monetary sanctions authorized in this chapter.
 
1. Late campaign finance report.   A person that files a late campaign finance report containing no contributions or expenditures may be assessed a penalty of no more than $100, except as provided in section 1004-C.
 
2. Contribution in excess of limitations.   A person that accepts or makes a contribution that exceeds the limitations set out in section 1015, subsections 1 and 2 may be assessed a penalty of no more than the amount by which the contribution exceeded the limitation, except as provided in section 1004-C.
 
3. Contribution in name of another person.   A person that makes a contribution in the name of another person, or that knowingly accepts a contribution made by one person in the name of another person, may be assessed a penalty not to exceed $5,000, except as provided in section 1004-C.
 
4. Substantial misreporting.   A person that files a campaign finance report that substantially misreports contributions, expenditures or other campaign activity may be assessed a penalty not to exceed $5,000, except as provided in section 1004-C.
 
5. Material false statements.   A person that makes a material false statement or that makes a statement that includes a material misrepresentation in a document that is required to be submitted to the commission, or that is submitted in response to a request by the commission, may be assessed a penalty not to exceed $5,000, except as provided in section 1004-C.
When the commission has reason to believe that a violation has occurred, the commission shall provide written notice to the candidate, party committee, political action committee, committee treasurer or other respondent and shall afford them an opportunity to appear before the commission before assessing any penalty. In determining any penalty under subsections 3, 4 and 5, the commission shall consider, among other things, the level of intent to mislead, the penalty necessary to deter similar misconduct in the future and the harm suffered by the public from the incorrect disclosure. A final determination by the commission may be appealed to the Superior Court in accordance with Title 5, chapter 375, subchapter 7 and the Maine Rules of Civil Procedure Rule 80C.
Penalties assessed pursuant to this section that have not been paid in full within 30 days after issuance of a notice of the final determination may be enforced in accordance with section 1004-B.
Sec. 3.  21-A MRSA §1004-C  is enacted to read:
§ 1004-C. Enhanced penalties for violations with aggravating circumstances
Notwithstanding any maximum penalty set forth in this chapter, when assessing a penalty or monetary sanction, the commission may double the authorized penalty or monetary sanction for a violation occurring less than 28 days prior to an election day and may triple the authorized penalty or monetary sanction for a violation occurring less than 14 days prior to an election day.
Sec. 4.  21-A MRSA §1012, sub-§§1-A and 1-B  are enacted to read:
 
1-A.  Aggregate.     "Aggregate" means that separate contributions from a single source are added together for purposes of determining whether the total contribution meets or exceeds any limit or reporting threshold in this subchapter. Unless otherwise specified, an aggregate contribution includes all contributions from a single source within any continuous 12-month period. For reporting purposes, an aggregate contribution reaches a specified limit when the total contributions from a single source within the continuous 12-month period equal or exceed the specified amount.
 
1-B.  Bundled contribution.     "Bundled contribution" means a contribution that:
 
A.  A contributor entrusts to a person who in turn delivers it to a candidate committee, political action committee or party committee with other contributions, the total dollar amount of which exceeds the contribution limit applicable to a single contribution; or
 
B.  Is received by a candidate committee, political action committee or party committee directly from a contributor but credited by the receiving committee to another person through records, designations or other means of recognizing that a certain amount of money has been raised by the person.
Sec. 5. 21-A MRSA §1017, sub-§5, as amended by PL 2011, c. 522, §1, is further amended to read:
 
5. Content.   A report required under this section must contain the itemized accounts of contributions received during that report filing period, including the date a contribution was received, and the name, address, occupation, principal place of business, if any, and the amount of the contribution of each person who has made a contribution or contributions aggregating in excess of $50. The report must contain the itemized expenditures made or authorized during the report filing period, the date and purpose of each expenditure and the name of each payee and creditor and any refund that a payee has made to the candidate or an agent of the candidate. If the payee is a member of the candidate's household or immediate family, the candidate must disclose the candidate's relationship to the payee in a manner prescribed by the commission. The report must contain a statement of any loan to a candidate by a financial institution in connection with that candidate's candidacy that is made during the period covered by the report, whether or not the loan is defined as a contribution under section 1012, subsection 2, paragraph A. The report must contain the name, address and employer of each contributor reasonably known by the candidate to have made a bundled contribution. The candidate and the treasurer are jointly and severally responsible for the timely and accurate filing of each required report.
Sec. 6. 21-A MRSA §1017-A, sub-§1, as amended by PL 2009, c. 190, Pt. A, §8, is further amended to read:
 
1. Contributions.   A party committee shall report all contributions in cash or in kind from a single contributor that in the aggregate total more than $200. The party committee shall report the name, mailing address, occupation and place of business of each contributor. Contributions of $200 or less must be reported, and these contributions may be reported as a lump sum. The party committee shall report the name, address and employer of each contributor reasonably known by the committee to have made a bundled contribution.
Sec. 7. 21-A MRSA §1017-A, sub-§4-A, ¶E, as amended by PL 2007, c. 443, Pt. A, §17, is further amended to read:
 
E. A state party committee shall report any expenditure of $500$1,000 or more made after the 14th day before the election and more than 24 hours before 5:00 p.m. on the day of the election within 24 hours of that expenditure.
Sec. 8.  21-A MRSA §1017-A, sub-§4-A, ¶F  is enacted to read:
 
F.  A state party committee shall report any aggregate contribution of $1,000 or more after the 14th day before the election and more than 24 hours before 5:00 p.m. on the day of the election within 24 hours of receipt of the contribution.
Sec. 9.  21-A MRSA §1017-A, sub-§4-B, ¶D  is enacted to read:
 
D.  Any aggregate contribution of $1,000 or more made after the 14th day before any election and more than 24 hours before 11:59 p.m. on the day of the election must be reported within 24 hours of the contribution.
Sec. 10.  21-A MRSA §1019-C  is enacted to read:
§ 1019-C. Reports of covered transfers
 
1.  Definitions.     For the purposes of this section, unless the context otherwise indicates, the following terms have the following meanings.
 
A.  "Covered transfer" means a transfer or payment of funds by a person, business entity or political action committee to another person, business entity or political action committee if the person, business entity or political action committee making the transfer or payment:
 
(1) Designates, requests or suggests that the funds be used for independent expenditures or makes the transfer or payment to another person for the purpose of making or paying for independent expenditures;
 
(2) Makes the transfer or payment in response to a solicitation or other request for a transfer or payment for the making of or paying for independent expenditures or for making a transfer or payment to another person for the purpose of making or paying for independent expenditures;
 
(3) Engages in discussions with the recipient of the transfer or payment regarding independent expenditures or makes the transfer or payment to another person for the purpose of making or paying for independent expenditures; or
 
(4) Made independent expenditures in an aggregate amount of $5,000 or more during the 2-year period ending on the date of the transfer or payment or knew or had reason to know that the person receiving the transfer or payment made independent expenditures in such an aggregate amount during that 2-year period.
 
"Covered transfer" does not include a transfer or payment made by a person, business entity or political action committee in the ordinary course of any trade or business conducted by the person, business entity or political action committee or in the form of investments made by the person, business entity or political action committee.
 
"Covered transfer" does not include a transfer or payment made by a person, business entity or political action committee if the person, business entity or political action committee making the transfer or payment prohibits, in writing, the use of the transfer or payment for independent expenditures or covered transfers and the recipient of the transfer or payment agrees to follow the prohibition and deposits the transfer or payment in an account that is segregated from any account used to make independent expenditures or covered transfers.
 
"Covered transfer" does not include transfers or payments of less than $1,000 in aggregate to a single recipient during any 12-month period.
 
B.  "Independent expenditure" has the same meaning as in section 1019-B, subsection 1.
 
2.  Reporting required.     An entity that makes a covered transfer shall file a report with the commission according to a reporting schedule that the commission establishes by rule. The reporting schedule must be comparable to the reporting required for independent expenditures.
 
The report must contain an itemized account of each covered transfer, including the name of the transferor, the date of the covered transfer, the amount of the covered transfer and the name of each payee or creditor.
 
If the entity making the covered transfer has received more than $5,000 in funding from other sources for the purpose of directly or indirectly financing independent expenditures, the identities of those other sources and the amounts of funding received from them must also be reported.
 
3.  Rulemaking.     The commission shall adopt rules to ensure effective reporting of covered transfers. These rules must exempt from reporting any separate or segregated fund maintained by an entity if that fund is established with safeguards to ensure that it is not used directly or indirectly to fund independent expenditures. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 11.  21-A MRSA §1052, sub-§§1-A and 1-B  are enacted to read:
 
1-A.  Aggregate.     "Aggregate" means that separate contributions from a single source are added together for purposes of determining whether the total contribution meets or exceeds any limit or reporting threshold in this subchapter. Unless otherwise specified, an aggregate contribution includes all contributions from a single source within any continuous 12-month period. For reporting purposes, an aggregate contribution reaches a specified limit when the total contributions from a single source within the continuous 12-month period equal or exceed the specified amount.
 
1-B.  Bundled contribution.     "Bundled contribution" means a contribution that:
 
A.  A contributor entrusts to a person who in turn delivers it to a candidate committee, political action committee or party committee with other contributions, the total dollar amount of which exceeds the contribution limit applicable to a single contribution; or
 
B.  Is received by a candidate committee, political action committee or party committee directly from a contributor but credited by the receiving committee to another person through records, designations or other means of recognizing that a certain amount of money has been raised by the person.
Sec. 12. 21-A MRSA §1053-B, as amended by PL 2011, c. 389, §36, is further amended to read:
§ 1053-B.Out-of-state political action committees
A political action committee organized outside of this State shall register and file reports with the commission in accordance with sections 1053 and 1058. The committee is not required to register and file reports if the committee’s only financial activity within the State is to make contributions to candidates, party committees, political action committees or ballot question committees registered with the commission or a municipality and the committee has not raised and accepted any contributions during the calendar year to influence a campaign in this State. Nothing in this section exempts a political action committee organized outside of this State from filing reports of covered transfers pursuant to section 1019-C.
Sec. 13. 21-A MRSA §1059, sub-§2, ¶E, as amended by PL 2007, c. 443, Pt. A, §35, is further amended to read:
 
E. A committee shall report any expenditure of $500$1,000 or more made after the 14th day before the election and more than 24 hours before 5:00 p.m. on the day of the election within 24 hours of that expenditure.
Sec. 14.  21-A MRSA §1059, sub-§2, ¶F  is enacted to read:
 
F.  A committee shall report any aggregate contribution of $1,000 or more made after the 14th day before the election and more than 24 hours before 5:00 p.m. on the day of the election within 24 hours of the contribution.
Sec. 15. 21-A MRSA §1060, sub-§6, as amended by PL 2011, c. 389, §47, is further amended to read:
 
6. Identification of contributions.   Names, occupations, places of business and mailing addresses of contributors who have given more than $50 to the political action committee in the reporting period and the amount and date of each contribution, except that an organization qualifying as a political action committee under section 1052, subsection 5, paragraph A, subparagraph (5) is required to report only those contributions made to the organization for the purpose of influencing a ballot question or the nomination or election of a candidate to political office and all transfers to or funds used to support the political action committee from the general treasury of the organization. A political action committee other than a ballot question committee shall report the name, address and employer of each contributor reasonably known by the committee to have made a bundled contribution; and
Sec. 16. 21-A MRSA §1062-A, sub-§1, as amended by PL 2009, c. 190, Pt. A, §28, is further amended to read:
 
1. Registration.   A political action committee required to register under section 1053 or 1053-B or a ballot question committee required to register under section 1056-B that fails to do so or that fails to provide the information required by the commission for registration may be assessed a fine of $250up to $10,000. When determining the amount of the fine, the commission shall consider the scope of activities of the political action committee or ballot question committee that were not reported due to the failure to register.
Sec. 17. 21-A MRSA §1062-A, sub-§3, ¶¶A, B and C, as enacted by PL 1995, c. 483, §21, are amended to read:
 
A. For the first violation, 1%2%;
 
B. For the 2nd violation, 3%4%; and
 
C. For the 3rd and subsequent violations, 5%6%.
 
SUMMARY
This bill makes the following changes to the laws governing campaign finance reporting and disclosure:
1. It authorizes a Governor-elect to establish a committee for the purpose of receiving donations to finance inaugural activities and the Governor-elect's transition into office and establishes requirements regarding disclosure and lobbying;
2. It authorizes the Commission on Governmental Ethics and Election Practices to impose enhanced penalties for campaign finance violations occurring shortly before election day;
3. It defines "bundled contribution" and requires that party committees and political action committees report the name, address and employer of each person reasonably known by the committee to have made a bundled contribution;
4. It requires that party committees, political action committees and ballot question committees report contributions aggregating $1,000 or more and expenditures of $1,000 or more made after the 14th day before the election and more than 24 hours before the day of the election within 24 hours of the contribution or expenditure;
5. It requires that political action committees, party committees and ballot question committees report the name and office or the office sought of a Governor, constitutional officer, Legislator or a candidate for such an office who solicits contributions during the reporting period;
6. It defines "covered transfer" as a transfer of funds by a person, entity or political action committee when there is intent or understanding that the transfer is to be used to make or pay for an independent expenditure and requires that any entity making such a transfer report that transfer; and
7. It increases the penalties for failure to register as a political action committee or as a ballot question committee and for late filing of required reports.