January 25, 2006
SENATE BILL No. 127
_____
DIGEST OF SB 127
(Updated January 23, 2006 2:55 pm - DI 102)
Citations Affected: IC 3-5; IC 3-9.
Synopsis: Political expenditures. Provides that a group of individuals
all of whom are related by blood, marriage, or adoption is not
considered a political action committee. Requires an individual or
organization that makes an expenditure of at least $10,000 for the
purpose of financing communications that expressly advocate the
election or defeat of a clearly identified candidate to file, not later than
48 hours after the expenditure, a report that provides details concerning
the expenditure. Exempts from the reporting requirement: (1)
candidate's committees; (2) regular party committees; (3) political
action committees; (4) a legislative caucus committee; (5) an auxiliary
party organization; (6) a membership organization that is exempt from
federal income taxation under Section 501(c) of the Internal Revenue
Code, to the extent that the organization's communications are made
solely to the organization's members; and (7) an individual who makes
an expenditure using only the individual's own resources. Establishes
criminal and civil penalties for violation of the reporting requirement.
Effective: January 1, 2007.
Lawson C
January 9, 2006, read first time and referred to Committee on Elections and Civic Affairs.
January 24, 2006, amended, reported favorably _ Do Pass.
January 25, 2006
Second Regular Session 114th General Assembly (2006)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2005 Regular Session of the General Assembly.
SENATE BILL No. 127
A BILL FOR AN ACT to amend the Indiana Code concerning
elections.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 3-5-2-37; (06)SB0127.1.1. -->
SECTION 1. IC 3-5-2-37 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2007]: Sec. 37. (a) Except as provided in
subsection (b) or (c), "political action committee" means an
organization located within or outside Indiana that satisfies all of the
following:
(1) The organization proposes to influence:
(A) the election of a candidate for state, legislative, local, or
school board office; or
(B) the outcome of a public question.
(2) The organization accepts contributions or makes expenditures
during a calendar year:
(A) to influence the election of a candidate for state,
legislative, local, or school board office or the outcome of a
public question that will appear on the ballot in Indiana; and
(B) that in the aggregate exceed one hundred dollars ($100).
(3) The organization is not any of the following:
(A) An auxiliary party organization.
(B) A legislative caucus committee.
(C) A regular party committee.
(D) A candidate's committee.
(b) A corporation or labor organization that makes a contribution in
accordance with IC 3-9-2 or makes an expenditure is not considered a
political action committee.
(c) A group of individuals all of whom are related by blood,
marriage, or adoption is not considered a political action
committee.
(d) For purposes of subsection (c), an individual is considered to
be related to another individual by blood, marriage, or adoption if
the individual is the spouse, parent, father-in-law, mother-in-law,
child, son-in-law, daughter-in-law, grandparent, grandchild,
brother, sister, brother-in-law, sister-in-law, uncle, aunt, nephew,
or niece of the other individual as the result of birth, marriage, or
adoption.
SOURCE: IC 3-9-3-2.5; (06)SB0127.1.2. -->
SECTION 2. IC 3-9-3-2.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2007]: Sec. 2.5. (a) This
section does not apply to any of the following:
(1) A communication relating to an election to a federal office.
(2) A communication relating to the outcome of a public question.
(3) A communication described by this section in a medium
regulated by federal law to the extent that federal law regulates
the appearance, content, or placement of the communication in
the medium.
(4) Bumper stickers, pins, buttons, pens, and similar small items
upon which the disclaimer required by this section cannot be
conveniently printed.
(5) Skywriting, water towers, wearing apparel, or other means of
displaying an advertisement on which the inclusion of a
disclaimer would be impracticable.
(6) Checks, receipts, and similar items of minimal value that do
not contain a political message and are used for purely
administrative purposes.
(7) A communication by a political action committee organized
and controlled by a corporation soliciting contributions to the
political action committee by the stockholders, executives, or
employees of the corporation and the families of those
individuals.
(8) A communication by a political action committee organized
and controlled by a labor organization soliciting contributions to
the political action committee by the members or executive
personnel of the labor organization and the families of those
individuals.
(9) A direct mailing of one hundred (100) or less substantially
similar pieces of mail.
(b) This section applies whenever a person:
(1) makes an expenditure for the purpose of financing
communications expressly advocating the election or defeat of a
clearly identified candidate; or
(2) solicits a contribution;
through a newspaper, a magazine, an outdoor advertising facility, a
poster, a yard sign, a direct mailing, or any other type of general public
political advertising.
(c) For purposes of this section, a candidate is clearly identified if
any of the following apply:
(1) The name of the candidate involved appears.
(2) A photograph or drawing of the candidate appears.
(3) The identity of the candidate is apparent by unambiguous
reference.
(d) A communication described in subsection (b) must contain a
disclaimer that appears and is presented in a clear and conspicuous
manner to give the reader or observer adequate notice of the identity of
persons who paid for and, when required, who authorized the
communication. A disclaimer does not comply with this section if the
disclaimer is difficult to read or if the placement of the disclaimer is
easily overlooked.
(e) A communication that would require a disclaimer if distributed
separately must contain the required disclaimer if included in a
package of materials.
(f) This subsection does not apply to a communication, such as a
billboard, that contains only a front face. The disclaimer need not
appear on the front or cover page of the communication if the
disclaimer appears within the communication.
(g) Except as provided in subsection (h), a communication
described in subsection (b) must satisfy one (1) of the following:
(1) If the communication is paid for and authorized by:
(A) a candidate;
(B) an authorized political committee of a candidate; or
(C) the committee's agents;
the communication must clearly state that the communication has
been paid for by the authorized political committee.
(2) If the communication is paid for by other persons but
authorized by:
(A) a candidate;
(B) an authorized political committee of a candidate; or
(C) the committee's agents;
the communication must clearly state that the communication is
paid for by the other persons and authorized by the authorized
political committee.
(3) If the communication is not authorized by:
(A) a candidate;
(B) an authorized political committee of a candidate; or
(C) the committee's agents;
the communication must clearly state the name of the person who
paid for the communication and state that the communication is
not authorized by any candidate or candidate's committee.
(4) If the communication is a solicitation directed to the general
public on behalf of a political committee that is not a candidate's
committee, the solicitation must clearly state the full name of the
person who paid for the communication.
(h) A communication by a regular party committee consisting of:
(1) a printed slate card, a sample ballot, or other printed listing of
three (3) or more candidates for public office at an election;
(2) campaign materials such as handbills, brochures, posters,
party tabloids or newsletters, and yard signs distributed by
volunteers and used by the regular party committee in connection
with volunteer activities on behalf of any nominee of the party; or
(3) materials distributed by volunteers as part of the regular
party's voter registration or get-out-the-vote efforts;
must clearly state the name of the person who paid for the
communication but is not required to state that the communication is
authorized by any candidate or committee.
(i) An individual or organization that makes an expenditure for
the purpose of financing a communication described in subsection
(b) is required to report the expenditure in accordance with
IC 3-9-8.
SOURCE: IC 3-9-4-16; (06)SB0127.1.3. -->
SECTION 3. IC 3-9-4-16, AS AMENDED BY P.L.221-2005,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007]: Sec. 16. (a) In addition to any other penalty
imposed, a person who does any of the following is subject to a civil
penalty under this section:
(1) Fails to file with the election division a report in the manner
required under IC 3-9-5
or IC 3-9-8.
(2) Fails to file a statement of organization required under
IC 3-9-1.
(3) Is a committee or a member of a committee who disburses or
expends money or other property for any political purpose before
the money or other property has passed through the hands of the
treasurer of the committee.
(4) Makes a contribution other than to a committee subject to this
article or to a person authorized by law or a committee to receive
contributions on the committee's behalf.
(5) Is a corporation or labor organization that exceeds any of the
limitations on contributions prescribed by IC 3-9-2-4.
(6) Makes a contribution in the name of another person.
(7) Accepts a contribution made by one (1) person in the name of
another person.
(8) Is not the treasurer of a committee subject to this article, and
pays any expenses of an election or a caucus except as authorized
by this article.
(9) Commingles the funds of a committee with the personal funds
of an officer, a member, or an associate of the committee.
(10) Wrongfully uses campaign contributions in violation of
IC 3-9-3-4.
(11) Violates IC 3-9-2-12.
(12) Fails to designate a contribution as required by IC 3-9-2-5(c).
(13) Violates IC 3-9-3-5.
(14) Serves as a treasurer of a committee in violation of any of the
following:
(A) IC 3-9-1-13(1).
(B) IC 3-9-1-13(2).
(C) IC 3-9-1-18.
(15) Fails to comply with section 4(d) of this chapter.
(b) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(1) or (a)(2) for filing a defective report or
statement. If the commission determines that a person failed to file the
amended report or statement of organization not later than noon five (5)
days after being given notice under section 14 of this chapter, the
commission may assess a civil penalty. The penalty is ten dollars ($10)
for each day the report is late after the expiration of the five (5) day
period, not to exceed one hundred dollars ($100) plus any investigative
costs incurred and documented by the election division. The civil
penalty limit under this subsection applies to each report separately.
(c) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(1) or (a)(2) for a delinquent report or
statement. If the commission determines that a person failed to file the
report or statement of organization by the deadline prescribed under
this article, the commission shall assess a civil penalty. The penalty is
fifty dollars ($50) for each day the report or statement is late, with the
afternoon of the final date for filing the report or statement being
calculated as the first day. The civil penalty under this subsection may
not exceed one thousand dollars ($1,000) plus any investigative costs
incurred and documented by the election division. The civil penalty
limit under this subsection applies to each report separately.
(d) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(3), (a)(4), (a)(6), (a)(7), (a)(8), (a)(9), or
(a)(10). If the commission determines that a person is subject to a civil
penalty under subsection (a), the commission may assess a civil penalty
of not more than one thousand dollars ($1,000), plus any investigative
costs incurred and documented by the election division.
(e) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(5). If the commission determines that a
person is subject to a civil penalty under subsection (a)(5), the
commission may assess a civil penalty of not more than three (3) times
the amount of the contribution in excess of the limit prescribed by
IC 3-9-2-4, plus any investigative costs incurred and documented by
the election division.
(f) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(11). If the commission determines that a
candidate or the candidate's committee has violated IC 3-9-2-12, the
commission shall assess a civil penalty equal to the greater of the
following, plus any investigative costs incurred and documented by the
election division:
(1) Two (2) times the amount of any contributions received.
(2) One thousand dollars ($1,000).
(g) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(12). If the commission determines that a
corporation or a labor organization has failed to designate a
contribution in violation of IC 3-9-2-5(c), the commission shall assess
a civil penalty equal to the greater of the following, plus any
investigative costs incurred and documented by the election division:
(1) Two (2) times the amount of the contributions undesignated.
(2) One thousand dollars ($1,000).
(h) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(13). If the commission determines, by
unanimous vote of the entire membership of the commission, that a
person has violated IC 3-9-3-5, the commission may assess a civil
penalty of not more than five hundred dollars ($500), plus any
investigative costs incurred and documented by the election division.
(i) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(14). If the commission determines, by
unanimous vote of the entire membership of the commission, that a
person has served as the treasurer of a committee in violation of any of
the statutes listed in subsection (a)(14), the commission may assess a
civil penalty of not more than five hundred dollars ($500), plus any
investigative costs incurred and documented by the election division.
(j) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(15). The commission may assess a civil
penalty equal to the costs incurred by the election division for the
manual entry of the data contained in the report or statement, plus any
investigative costs incurred and documented by the election division.
(k) All civil penalties collected under this section shall be deposited
with the treasurer of state in the campaign finance enforcement
account.
(l) Proceedings of the commission under this section are subject to
IC 4-21.5.
SOURCE: IC 3-9-4-17; (06)SB0127.1.4. -->
SECTION 4. IC 3-9-4-17 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2007]: Sec. 17. (a) In addition to any other
penalty imposed, a person who does any of the following is subject to
a civil penalty under this section:
(1) Fails to file with a county election board a report in the
manner required under IC 3-9-5
or IC 3-9-8.
(2) Fails to file a statement of organization required under
IC 3-9-1.
(3) Is a committee or a member of a committee who disburses or
expends money or other property for any political purpose before
the money or other property has passed through the hands of the
treasurer of the committee.
(4) Makes a contribution other than to a committee subject to this
article or to a person authorized by law or a committee to receive
contributions in the committee's behalf.
(5) Is a corporation or labor organization that exceeds any of the
limitations on contributions prescribed by IC 3-9-2-4.
(6) Makes a contribution in the name of another person.
(7) Accepts a contribution made by one (1) person in the name of
another person.
(8) Is not the treasurer of a committee subject to this article, and
pays any expenses of an election or a caucus except as authorized
by this article.
(9) Commingles the funds of a committee with the personal funds
of an officer, a member, or an associate of the committee.
(10) Wrongfully uses campaign contributions in violation of
IC 3-9-3-4.
(11) Fails to designate a contribution as required by IC 3-9-2-5(c).
(12) Violates IC 3-9-3-5.
(13) Serves as a treasurer of a committee in violation of any of the
following:
(A) IC 3-9-1-13(1).
(B) IC 3-9-1-13(2).
(C) IC 3-9-1-18.
(b) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(1) or (a)(2) for filing a defective report or
statement. If the county election board determines that a person failed
to file the report or a statement of organization not later than noon five
(5) days after being given notice under section 14 of this chapter, the
county election board may assess a civil penalty. The penalty is ten
dollars ($10) for each day the report is late after the expiration of the
five (5) day period, not to exceed one hundred dollars ($100) plus any
investigative costs incurred and documented by the board. The civil
penalty limit under this subsection applies to each report separately.
(c) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(1) or (a)(2) for a delinquent report or
statement. If the county election board determines that a person failed
to file the report or statement of organization by the deadline prescribed
under this article, the board shall assess a civil penalty. The penalty is
fifty dollars ($50) for each day the report is late, with the afternoon of
the final date for filing the report or statement being calculated as the
first day. The civil penalty under this subsection may not exceed one
thousand dollars ($1,000) plus any investigative costs incurred and
documented by the board. The civil penalty limit under this subsection
applies to each report separately.
(d) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(3), (a)(4), (a)(6), (a)(7), (a)(8), (a)(9), or
(a)(10). If the county election board determines that a person is subject
to a civil penalty under subsection (a), the board may assess a civil
penalty of not more than one thousand dollars ($1,000), plus any
investigative costs incurred and documented by the board.
(e) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(5). If the county election board determines
that a person is subject to a civil penalty under subsection (a)(5), the
board may assess a civil penalty of not more than three (3) times the
amount of the contribution in excess of the limit prescribed by
IC 3-9-2-4, plus any investigative costs incurred and documented by
the board.
(f) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(11). If the county election board
determines that a corporation or a labor organization has failed to
designate a contribution in violation of IC 3-9-2-5(c), the board shall
assess a civil penalty equal to the greater of the following, plus any
investigative costs incurred and documented by the board:
(1) Two (2) times the amount of the contributions undesignated.
(2) One thousand dollars ($1,000).
(g) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(12). If the county election board
determines, by unanimous vote of the entire membership of the board,
that a person has violated IC 3-9-3-5, the board may assess a civil
penalty of not more than five hundred dollars ($500), plus any
investigative costs incurred and documented by the board.
(h) This subsection applies to a person who is subject to a civil
penalty under subsection (a)(13). If the county election board
determines, by unanimous vote of the entire membership of the board,
that a person has served as the treasurer of a committee in violation of
any of the statutes listed in subsection (a)(13), the board may assess a
civil penalty of not more than five hundred dollars ($500), plus any
investigative costs incurred and documented by the board.
(i) All civil penalties collected under this section shall be deposited
with the county treasurer to be deposited by the county treasurer in a
separate account to be known as the campaign finance enforcement
account. The funds in the account are available, with the approval of
the county fiscal body, to augment and supplement the funds
appropriated for the administration of this article.
(j) Money in the campaign finance enforcement account does not
revert to the county general fund at the end of a county fiscal year.
(k) Proceedings of the county election board under this section are
subject to IC 4-21.5.
SOURCE: IC 3-9-8; (06)SB0127.1.5. -->
SECTION 5. IC 3-9-8 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2007]:
Chapter 8. Reports Required for Certain Campaign
Expenditures
Sec. 1. Except as provided in section 2 of this chapter, this
chapter applies to an individual or an organization:
(1) that makes a large expenditure; or
(2) on whose behalf a large expenditure was made;
for the purpose of financing express advocacy communications
through a newspaper, a magazine, an outdoor advertising facility,
a poster, a yard sign, a direct mailing, or any other type of general
public political advertising.
Sec. 2. (a) This chapter does not apply to the following:
(1) Candidate's committees.
(2) Regular party committees.
(3) Political action committees.
(4) A legislative caucus committee.
(5) An auxiliary party organization.
(b) This chapter does not apply to:
(1) a membership organization that is exempt from federal
income taxation under Section 501(c) of the Internal Revenue
Code, to the extent that the organization's express advocacy
communications are made solely to the organization's
members; or
(2) an individual who makes an expenditure using only the
individual's own resources.
Sec. 3. (a) As used in this chapter, "express advocacy
communication" means a communication that expressly advocates
the election or defeat of a clearly identified candidate.
(b) For the purposes of subsection (a), a candidate is clearly
identified if any of the following apply:
(1) The name of the candidate involved appears.
(2) A photograph or drawing of the candidate appears.
(3) The identity of the candidate is apparent by unambiguous
reference.
Sec. 4. As used in this chapter, "large expenditure" means:
(1) a single expenditure of at least ten thousand dollars
($10,000); or
(2) an aggregate of expenditures that totals at least ten
thousand dollars ($10,000).
Sec. 5. (a) An individual or organization that makes a large
expenditure described in section 1 of this chapter shall file a report,
in a form prescribed by the commission, with:
(1) the election division, if the express advocacy
communication is attempting to influence the election of a
candidate for state or legislative office; or
(2) the county election board of each county comprising part
of the affected election district, if the express advocacy
communication is attempting to influence the election of a
candidate for local or school board office.
(b) The report required under subsection (a) must be filed not
later than forty-eight (48) hours after an expenditure that
constitutes a large expenditure under this chapter is made.
Sec. 6. A report required by section 5 of this chapter must
contain the following information for each expenditure reported:
(1) The full name, the full mailing address, the occupation,
and the principal place of business, if any, of the person
making the expenditure.
(2) The full name, the full mailing address, the occupation,
and the principal place of business, if any, of each person to
whom the expenditure was made.
(3) The total amount of the expenditure.
(4) The date and time the expenditure was made.
(5) The name of and the office sought by the candidate who is
the subject of the communication financed by the expenditure.
(6) The full name, the full mailing address, the occupation,
and the principal place of business of each person who
contributed or paid at least one hundred dollars ($100) of the
expenditure.
(7) The full name and the full mailing address of the person
filing the report.
Sec. 7. Except where a provision conflicts with this chapter or
cannot be practicably applied, IC 3-9-4 governs a report filed
under this chapter.