SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2400

The Commonwealth of Massachusetts

_______________

In the One Hundred and Ninety-First General Court
(2019-2020)

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SECTION 1. The first paragraph of section 1 of chapter 55 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting after the definition of “Contribution” the following definition:-

“County office”, the office of a district attorney, clerk of court, register of probate, registrar of deeds, county commissioner, county treasurer or sheriff.

SECTION 2. Said first paragraph of said section 1 of said chapter 55, as so appearing, is hereby further amended by inserting after the definition of “Political party committee” the following definition:-

“State office”, the office of governor, lieutenant governor, state secretary, attorney general, state treasurer, state auditor, state senate, house of representatives or governor’s council.              SECTION 3. Said chapter 55 is hereby further amended by striking out section 18, as so appearing, and inserting in place thereof the following section:-

Section 18. (a) Each candidate and each treasurer of a political committee shall, except as provided in this section and section 24, file with the director reports of contributions received and expenditures made. A candidate and a committee organized on behalf of a candidate seeking public office at a municipal election shall file such reports with the director, if the candidate is seeking the office of mayor in a municipality or if the committee is required to file such reports with the director pursuant to section 19. All other candidates seeking public office at a city or town election shall file reports with the city or town clerk. A committee organized under section 5 to favor or oppose a question submitted to the voters shall file its reports with the director if the question appears on ballots at a state election or with the city or town clerk if the question appears on ballots at a city or town election or for use in a city or town at a state election. Reports of contributions received and expenditures made shall be filed using forms prescribed by the director. Reports required pursuant to this section shall be filed as follows:

(i) by each candidate for nomination or election to city or town office, and by the non-elected political committee organized on behalf of the candidate, except a candidate required to designate a depository by said section 19 or a candidate seeking election as a member of a representative town meeting or of a town or city ward committee, and any non-elected political committee organized on behalf of such candidate, not later than: (A) the eighth day preceding a city or town preliminary or primary, including a caucus, the eighth day preceding a city or town election and, if a city election, as a final report, January 20 in the following year complete as to December 31 of the prior year and, if a town election, as a final report, the thirtieth day following the election; (B) the eighth day preceding a special primary, including a caucus, the eighth day preceding a special election and, as a final report, the thirtieth day following a special election;

(ii) by each candidate and each non-elected political committee required to designate a depository by said section 19, not later than: (A) the third business day following the designation of the depository; and (B) as a final report, January 20 of the year following the election, complete as to December 31 of the prior year; provided, however, that the reporting period of the initial report shall commence on the day following the preceding election for the office sought by the candidate or on the day following the end of the reporting period of the last report filed, if any, whichever period is shorter, and shall end as of the day the depository is designated; provided further, that the reporting period of the second report shall commence on the day following the designation of the depository and shall end as of December 31 of the year of the election;

(iii) by the treasurer of each state committee referred to in section 1 of chapter 52 and required to designate a depository by said section 19, not later than: (A) the third business day following the designation of the depository; and (B) as a final report, January 20 of the year following the election complete as to December 31 of the prior year; provided, however, that the reporting period of the initial report shall commence on the day following the preceding biennial state election or on the day following the end of the reporting period of the last report filed, if any, whichever period is shorter, and shall end as of the day the depository is designated; provided further, that the reporting period of the second report shall commence on the day following the designation of the depository and shall end as of December 31 of the year of the election;

(iv) by all other non-elected and elected political committees that are not required to file reports under clauses (i) to (iii), inclusive, other than political action committees and people’s committees as defined in section 1, independent expenditure PACs organized pursuant to section 18A and political committees organized under section 5 to favor or oppose a question submitted to the voters, if the question appears on the ballot at the state election, not later than: (A) the same days and in accordance with the same schedule as set forth in clause (ii), if the political committee is aiding or promoting the success or defeat of 1 or more candidates in a state primary, special or general election; or (B) the same days and in accordance with the same schedule as set forth in clause (i), if the political committee is aiding or promoting the success or defeat of 1 or more candidates or is favoring or opposing a question submitted to the voters in a city or town preliminary, primary, general or special election or for use on ballots in a city or town at a state election;

(v) by each political committee organized under said section 5 to favor or oppose a question submitted to the voters, if the question appears on the ballot at the state election, on: (A) the day of the organization; and (B) the sixtieth day before the election complete as of the preceding fifth day; on or before (C) the fifth and twentieth day of each month complete as of the preceding first and fifteenth day of the month, until the election, and thereafter; (D) November 20 following such election complete as of November 15; and (E) January 20 of each year complete as of December 31 of the prior year until all declared liabilities of the committee have been discharged; provided, however, that the reporting period of the initial report shall commence on the day following the preceding biennial state election or on the day following the end of the reporting period of the last report filed, if any, whichever period is shorter, and shall end as of the day of organization; provided further, that the reporting period of the second report shall commence on the day following the day of organization and shall end as of the sixtieth day before the election; provided further that the reporting period of all subsequent reports shall commence on the day following the end of the reporting period of the last report filed and shall end as of the first or fifteenth day of each month, as the case may be;

(vi) by all candidates and all political committees, except those candidates seeking election as members of a representative town meeting or of a city ward or town committee, and non-elected political committees organized on behalf of such candidates, not later than January 20 in each year in which they are not otherwise required to file a report not later than January 20.

(b) For candidates and non-elected political committees organized on behalf of such candidates for whom the report required pursuant to clause (vi) of subsection (a) would be an initial report, the reporting period shall commence on the day following the preceding election for the office sought by the candidate and shall end as of December 31 of the year before the last day for filing. For all other political committees for which the report required pursuant to said clause (vi) of said subsection (a) report would be an initial report, the reporting period shall commence on the day following the preceding state, city or town election, as the case may be, and in accordance with the provisions of this section governing the initial report of such committees and shall end as of December 31 of the year before the last day for filing the report. The reporting period for the report required to be filed not later than January 20 in each odd-numbered year shall commence on the day following the end of the reporting period of the last report filed and shall end as of December 31 of the prior year.

The reports required to be filed in accordance with clause (i) of said subsection (a), except for the report to be filed in accordance with said clause (i) of said subsection (a) not later than January 20 of the year following the election, shall not be required of a candidate, or of the non-elected political committee organized on behalf of the candidate, if the candidate is not a candidate as defined in clause (2) of the definition of candidate in section 1.

Notwithstanding clauses (i), (ii) and (iii) of said subsection (a) for contributions received subsequent to the end of the reporting period of the last report filed, which was identified in said clauses (i), (ii) and (iii) of said subsection (a) as a final report, by a candidate or political committee and intended for application to the preceding election of the candidate or reporting political committee, an additional report, which shall be the final report for such candidates and committees shall be required. This report shall be filed not later than January 20 following the last day for filing of the final report of said clauses (i), (ii) and (iii) of said subsection (a) and shall be complete as of December 31 of the prior year. The reporting period of the report shall commence on the day following the end of the reporting period of the last report or final report required to be filed by said clauses (i), (ii) and (iii) of said subsection (a).

(c) Except as otherwise provided, each candidate and the non-elected political committee organized on behalf of the candidate, shall, within the filing of the initial report, include all contributions received and expenditures made since the day of the preceding election for the office sought by the candidate or since the end of the reporting period of the last report filed, if any, whichever reporting period is shorter. All other political committees shall, within the filing of their initial report, include all contributions received and expenditures made since: (i) the day of the preceding biennial state election or the end of the reporting period of the last report filed, if any, whichever period is shorter, if the political committee is either aiding or promoting the success or defeat of 1 or more candidates or is favoring or opposing the adoption or rejection of a question submitted to the voters at a state primary or election; or (ii) the day of the preceding city or town election or the end of the reporting period of the last report filed, if any, whichever period is shorter, if the political committee is either aiding or promoting the success or defeat of 1 or more candidates or is favoring or opposing the adoption or rejection of a question submitted to the voters at a city or town preliminary, primary or election.

(d) Except as otherwise provided, the end of the reporting period of each report required to be filed under this section shall be as of the tenth day preceding the last day for filing. The beginning of the reporting period for each report subsequent to the initial report shall be the day following the end of the reporting period of the last report filed.             

The reports required to be filed under this section shall be cumulative during the calendar year to which they relate.

Where there has been no change in an item included in a previous report, only the amount of the item need be carried forward.

Whether or not a contribution has been received or an expenditure has been made during any reporting period as described in this section, a candidate or political committee shall file the required report for said reporting period.

(e) Each report required to be filed pursuant to this section by a candidate or political committee shall disclose:

(i) the amount of money on hand at the beginning of the reporting period;

(ii) the full name and residential address, listed alphabetically, of each person who has made a contribution, except for those contributions identified in clauses (iv), (v) and (vi) and which shall be reported therein, in an amount or value in excess of $50 in the reporting period and such information for each contribution of less than or equal to the sum of $50, if the aggregate of all contributions received from the same contributor within the reporting period is in excess of $50, as the case may be, and the amount or value and date of the contribution and the total of all contributions listed;

(iii) the total amount or value of contributions made in the reporting period and not otherwise reported under clause (ii);

(iv) the name and address, listed alphabetically, of each candidate or political committee from which was received any money or anything of value in a reporting period, together with the amount or value thereof and the date received;

(v) the name and address of the principal officers of any trust, foundation and association from which was received a contribution, as provided in section 10;

(vi) the amount or value and date of each loan to or from any person, in the reporting period, together with the name and residential address of the lender and endorser, if any, listed alphabetically;

(vii) the total sum of all contributions received in the reporting period, which shall be the sum of clauses (ii), (iii), (iv), (v) and (vi);

(viii) the full name and address, listed alphabetically, of each person to whom an expenditure is made in the reporting period, except for those identified in clause (x), and, for each amount or value in excess of $50, the amount and value, date and purpose of each expenditure and the total of all expenditures listed; provided, however, that for a political party committee organized in accordance with chapter 52 or a political committee supporting more than 1 candidate, the name and address, the elective office held, if any, and office sought by each candidate on whose behalf the expenditure was made shall also be disclosed;

(ix) the total amount or value of expenditures made in the reporting period and not otherwise reported under clause (viii);

(x) for a candidate or political committee, the name and address, listed alphabetically, of each candidate or political committee to which was transferred any money or anything of value in the reporting period, together with the amount or value thereof and the date of the transfer;

(xi) the total sum of expenditures made in the reporting period, which shall be the sum of clauses (viii), (ix) and (x);

(xii) the amount and date of each then existing liability remaining unfulfilled and in force when the report is made, the name and address of the person to whom the liability exists and a clear statement of the purpose for which it was incurred;

(xiii) a listing of all banks or other financial institutions used;

(xiv) if a political committee dissolves, a statement of the dissolution detailing the intended or actual disposition of any residual funds; and

(xv) if a political action committee dissolves, a statement that the political action committee has not received contributions pursuant to section 9A or, if it has received such contributions, a statement that the political action committee has given 60 days written notice of its intended dissolution to any contributor and the contributor’s bank or other financial institution currently making contributions pursuant to said section 9A.

(f) Each report required to be filed under this section shall include the name, residential address and amount contributed in the reporting period of each person whose contributions in the aggregate exceed more than $50 in the calendar year and for those contributions where such information does not otherwise appear on the report.

(g) Each report required to be filed under this section shall include the occupation and name of the employer for each person whose contributions in the aggregate equal or exceed the sum of $200 within any calendar year; provided, however, that no candidate or political committee shall be required to include a person’s occupation and employer if, upon compliance with the requirements of section 2 concerning the inclusion of such occupation and employer, the candidate or political committee has not been able to obtain such information.

(h) Each year-end campaign finance report filed by a candidate or non-elected political committee that is required to designate a depository by section 19 and  maintains or has maintained a savings account or money market account shall disclose, for each reporting period, all activity in any such account. Nothing in this section shall authorize a transfer made from any such savings or money market account to an account other than the depository account established by a candidate or committee in accordance with said section 19.

(i) Every political committee organized on behalf of a candidate that files with the director, and every ballot question committee that files with the director, that receives and deposits a contribution in the amount of $500 or more after the eighteenth day, but more than 72 hours, before the date of a special, preliminary, primary or general election, shall file a report to disclose the information required by this section within 72 hours of depositing such contribution.

(j) The report required to be filed not later than January 20 shall contain a statement detailing the intended or actual disposition of any residual funds. The residual funds shall not be converted to the personal use of the candidate or any other person except as provided in this subsection. The residual funds shall be donated to:

(i) the General Fund;

(ii) an entity subject to chapter 67 or section 8 of chapter 12; provided, however, that the candidate, treasurer or any official of the political committee shall not be related by consanguinity or affinity to any trustee, officer, principal or beneficiary of the entity at the time of the gift or within 10 years from the date of the gift; provided further, that no entity may employ as a trustee, officer, principal or beneficiary any person related by consanguinity or affinity to the candidate, treasurer or any official of the political committee either at the time of the gift or within 10 years from the date of the gift;

(iii) a scholarship fund; provided, however, that the candidate, treasurer or any official of the political committee shall not participate in the selection of the beneficiary of any scholarship awarded from the fund; provided further, the beneficiary of any scholarship awarded from such fund shall not be related by consanguinity or affinity to the candidate, treasurer or any official of the political committee; or

(iv) the General Fund of any city or town in the commonwealth.

(k) The director may petition the supreme judicial court for the dissolution of a political committee if: (i) the political committee fails to comply for 2 consecutive years with the provisions of this section that require the filing of reports of contributions received and expenditures made; (ii) the candidate on whose behalf the political committee has been organized has died; or (iii) the political committee was organized for the purpose of favoring or opposing the adoption or rejection of a question submitted to the voters and there has been a final determination made as to the adoption or rejection of such question.             

By such petition, the director may request the court to authorize the administration of any funds held by the political committee in accordance with the provisions of this section regarding residual funds. The court, after notice by mail or otherwise as it may order, may dissolve the political committee. The director may include more than 1 political committee in a single application.

(l) Any person nominated by the governor for a position that requires confirmation by the executive council shall, within 6 months of the date of confirmation, dissolve any political committee organized on behalf of the person and disperse all funds remaining in such committee’s account in accordance with this section.

(m) Violation of this section shall be punishable by imprisonment for not more than 1 year, by a fine of not more than $1,000 or both such fine and imprisonment.

(n) The provisions of this section requiring candidates to file reports shall not apply to candidates who, during any reporting period, have not received contributions, incurred any liabilities or made expenditures on their own behalf independent of the political committee organized on their behalf. Such candidates shall sign an affidavit under the pains and penalties of perjury that they have not received any contributions, incurred any liabilities or made any expenditures on their own behalf during the reporting period. The affidavit shall be included on the report filed by the candidate’s political committee for the reporting period.

(o) Candidates who do not have a political committee organized on their behalf and who have not received any campaign contributions, incurred any liabilities or expended money on their behalf during any reporting period shall sign an affidavit on a form provided by the director stating that they have not received a campaign contribution, incurred any liabilities or made any expenditures on their own behalf. This statement shall be signed under the pains and penalties of perjury.

(p) The provisions of this section requiring city, town and ward committees established under the provisions of chapter 52 to file reports shall not apply to a city, town or ward committee that has not received contributions or made expenditures in excess of $100 during any reporting period or incurred liabilities or acquired or disposed of assets in excess of $100 during any reporting period.

SECTION 4. Section 19 of said chapter 55, as so appearing, is hereby amended by striking out, in lines 1 to 6, inclusive, the words “Candidates for nomination or election to the offices of governor, lieutenant governor, state secretary, attorney general, state treasurer and receiver general, state auditor, governor’s council, district attorney, clerk of court, register of probate, registrar of deeds, county commissioner, county treasurer and sheriff, mayor or” and inserting in place thereof the following words:- Candidates for state office, county office or mayor and candidates for.

SECTION 5. Said section 19 of said chapter 55, as so appearing, is hereby further amended by striking out, in lines 38 and 39, the words: “and twentieth days” and inserting in place thereof the following word:- day.

SECTION 6. Said section 19 of said chapter 55, as so appearing, is hereby further amended by striking out, in lines 40 and 41, the words “first and fifteenth days of the month” and inserting in place thereof the following words:- last day of the preceding month.

SECTION 7. Said section 19 of said chapter 55, as so appearing, is hereby further amended by striking out, in line 75, the words “and twentieth day”.  

SECTION 8. Said section 19 of said chapter 55, as so appearing, is hereby further amended by striking out, in lines 76 and 77, the words “preceding first day or fifteenth day of the month” and inserting in place thereof the following words:- last day of the preceding month.

SECTION 9. (a) There shall be a special legislative commission to examine the feasibility of authorizing the use of campaign funds to pay for the provision of family care and child care services by candidates for state, county or municipal elected office.

(b) The special legislative commission shall consist of: the house and senate chairs of the joint committee on election laws, who shall serve as co-chairs; the house and senate chairs of the caucus of women legislators; 1 member of the house who shall be appointed by the minority leader; 1 member of the senate who shall be appointed by the minority leader; the director of campaign and political finance; the executive director of the commission on the status of women established under section 66 of chapter 3 of the General Laws; the executive director of Common Cause Massachusetts; 1 person appointed by the governor who shall have experience or expertise related to reducing gender, racial and economic disparities in civic engagement; and 1 person to be appointed by the commission on the status of women..

(c) The special legislative commission shall: (i) review and evaluate state and federal laws, regulations and legal advisories regarding the use of campaign funds to pay for the provision of family and child care services, by candidates for state, county or municipal elected office; (ii) analyze campaign finance laws in other states regarding the use of campaign funds for family care and child care services; (iii) examine the circumstances under which the expenditure of campaign funds for family care and child care services constitute a personal use of such funds under section 6 of chapter 55 of the General Laws; (iv) recommend definitions for the terms “family care” and “child care”, including, but not limited to, allowed and disallowed expenditures for family care and child care services; (v) determine whether family care and child care services expenses, occurring in the normal course of a candidate or elected official’s duties would exist irrespective of an individual running for elected office should be considered an authorized use of campaign funds under section 6 of chapter 55 of the General Laws; and (vii) determine whether the office of campaign and political finance has the capacity to scrutinize  expenditures of campaign funds for family care and child care services, to prevent unauthorized or impermissible uses of such funds.

(d) The commission shall submit its report together with recommendations for legislation, if any, to the clerks of the house of representatives and the senate not later than March 1, 2020.

SECTION 10. Notwithstanding any general or special law to the contrary, the office of campaign and political finance shall, pursuant to section 3 of chapter 55 of the General Laws, in consultation with the state ethics commission, promulgate regulations relative to the appropriate use of websites and social media for campaign purposes. The regulations may provide for exemptions to the prohibition on indirect solicitation in section 13 of said chapter 55. The office of campaign and political finance shall promulgate the regulations not later than July 1, 2020.

SECTION 11. Notwithstanding any general or special law to the contrary, the office of campaign and political finance shall promulgate regulations relative to the filing of reports required to be filed by candidates not subject to section 19 of chapter 55 of General Laws as of July 1, 2019 who will be subject to said section 19 of said chapter 55 after the effective date of this act. The regulations may provide that such candidates may continue to file in the non-depository system after the effective date of this act. 

SECTION 12. Section 11 is hereby repealed.

SECTION 13. Section 12 shall take effect on April 30, 2020.