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2013 - 2014 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 225
June 10, 2013 - Offered by Representatives Vos, Mason, Stone, Kessler and
Berceau.
AB225-ASA1,3,2 1An Act to repeal 11.20 (8) (c), 11.31, 67.05 (3) (a) 2. and 67.05 (3) (a) 4.; to
2renumber
6.79 (1m); to renumber and amend 9.20 (4), 11.20 (3) (a), 11.20 (3)
3(b), 11.20 (3) (c), 11.20 (3) (d), 11.20 (3) (f), 11.20 (3) (g), 11.20 (3) (h), 11.20 (3)
4(k), 11.20 (3) (L), 11.20 (4), 11.26 (9) (a), 11.26 (9) (b), 13.62 (1) and 67.05 (5) (b);
5to amend 5.02 (19), 5.056, 5.15 (6) (b), 5.90 (1), 6.24 (3), 6.275 (1) (b), 6.28 (1),
66.30 (1), 6.32, 6.33 (1), 6.33 (2) (a), 6.34 (2), 6.34 (3) (a) 8., 6.34 (3) (a) 9., 6.35 (1)
7(intro.), 6.36 (2) (a), 6.36 (2) (c), 6.40 (1) (a) 1., 6.40 (1) (c), 6.50 (10), 6.55 (2) (d),
86.79 (2) (c), 6.86 (2) (b), 6.86 (3) (c), 6.87 (4) (b) 1., 7.08 (1) (c), 7.15 (2) (d), 7.30
9(2) (a), 7.30 (2) (am), 7.30 (4) (b) 1., 7.30 (4) (b) 2., 7.30 (4) (e), 7.51 (3) (a), 7.52
10(8), 8.05 (3) (d), 8.05 (3) (e), 8.06, 9.01 (1) (ag) 1m., 11.05 (1), 11.05 (2), 11.05 (2r),
1111.05 (3) (c), 11.05 (12) (b), 11.06 (1) (intro.), 11.06 (1) (a), 11.06 (1) (d), 11.06 (1)
12(e), 11.06 (1) (f), 11.06 (1) (g), 11.06 (1) (h), 11.06 (11) (a), 11.07 (1), 11.12 (6), 11.20
13(8) (intro.) and (b), 11.20 (12), 11.21 (16), 11.23 (1), 11.26 (1) (a), 11.26 (1) (b),

111.26 (1) (c), 11.26 (1) (cn), 11.26 (1) (cw), 11.26 (2) (a), 11.26 (2) (b), 11.26 (2) (c),
211.26 (2) (cn), 11.26 (2) (cw), 11.26 (4), 11.26 (8) (a), 11.26 (8) (b), 11.26 (8) (c),
311.30 (4), 11.38 (1) (a) 1., 11.38 (1) (a) 3., 13.625 (1) (c) (intro.), 13.63 (1) (a), 13.67,
413.695 (1) (a), 13.695 (1) (b), 13.75 (5), 19.45 (8) (b) and (c), 24.66 (3) (b), 24.66
5(4), 32.72 (1), 38.15 (1), 38.16 (3) (br) 1., 59.08 (7) (b), 59.605 (3) (a) 1., 60.62 (2),
660.74 (5) (b), 61.187 (1), 61.46 (1), 62.09 (1) (a), 62.13 (6) (b), 64.03 (1), 64.39 (3),
766.0101 (8), 66.0211 (1), 66.0213 (6), 66.0215 (2), 66.0217 (3) (b), 66.0217 (7) (a)
83., 66.0217 (7) (d), 66.0219 (4) (b), 66.0225 (2), 66.0227 (3), 66.0305 (6) (b),
966.0307 (4) (e) 2., 66.0602 (4) (a), 66.0619 (2m) (b), 66.0815 (1) (c), 66.0921 (2),
1066.1103 (10) (d), 66.1113 (2) (g), 66.1113 (2) (h), 67.05 (3) (f), 67.05 (4), 67.05 (5)
11(a), 67.05 (6a) (a) 2. a., 67.05 (6m) (b), 67.10 (5) (b), 67.12 (12) (e) 2., 67.12 (12)
12(e) 5., 82.03 (2) (b), 85.61 (1), 86.21 (2) (a), 92.11 (4) (c), 117.20 (2), 119.48 (4) (b),
13119.48 (4) (c), 119.49 (1) (b), 119.49 (2), 121.91 (3) (a), 197.04 (1) (b), 197.04 (2),
14197.10 (2), 198.19 (1) and 343.027; to repeal and recreate 343.027; and to
15create
6.30 (5), 6.34 (2m), 6.34 (3) (a) 12., 6.34 (4), 6.35 (2), 8.065, 11.01 (6) (b)
168. and 9., 11.01 (7) (a) 5. to 7., 11.01 (7) (b) 6. to 8., 11.01 (12m), 11.05 (3) (q), 11.06
17(11) (d), 11.06 (13), 11.066, 11.185, 11.20 (1m), 11.20 (3) (a) 2., 11.20 (3) (b) 2.,
1811.20 (3) (c) 2., 11.20 (3) (d) 2., 11.20 (3) (f) 2., 11.20 (3) (g) 2., 11.20 (3) (h) 2., 11.20
19(3) (k) 2., 11.20 (3) (L) 2., 11.20 (4) (b), 11.26 (2) (ab), 11.26 (2) (ac), 11.26 (2) (ad),
2011.26 (9) (a) 1. to 12., 11.26 (9) (b) 1. to 12., 11.26 (18), 11.33 (2m), 13.025, 13.62
21(1) (b), 13.62 (12e), 13.68 (1) (bp), 19.42 (11s) and 227.52 (8) of the statutes;

1relating to: various changes in the campaign finance, election, ethics, and
2lobbying regulation laws and granting rule-making authority.
Analysis by the Legislative Reference Bureau
This substitute amendment makes the following changes to the campaign
finance, election, ethics, and lobbying regulation laws:
campaign finance
Expenditures made to solicit contributions to a segregated fund
Current law permits any corporation, including a foreign corporation and a
limited liability company, cooperative, or association, to establish, administer, and
solicit contributions to a separate segregated fund set up by the corporation,
cooperative, or association for the purpose of supporting or opposing a candidate for
state or local office. Although current law prohibits the corporation, association, or
cooperative from making a contribution to the segregated fund, the corporation,
cooperative, or association may expend up to $500 annually for the purpose of
soliciting contributions. Under this substitute amendment, the amount that a
corporation, association, or cooperative may annually expend to solicit contributions
to the segregated fund is the greater of $20,000 or 20 percent of the amount of
contributions in the previous year to a segregated fund.
Contributions by corporations or cooperatives for certain purposes
Currently, corporations and cooperatives are prohibited from making
contributions or disbursements (expenditures) generally in connection with
campaigns for state or local office. This prohibition specifically includes
contributions or disbursements to political parties. This substitute amendment
creates an exception to the prohibition that permits a corporation or cooperative to
make a contribution to a committee that is operated exclusively for the purpose of
financing the purchase, lease, or maintenance of space for exclusive use by a political
party or legislative campaign committee.
Contribution limits
Under current law, the limits for contributions by an individual or committee,
other than a political party or legislative campaign committee, to a candidate's
campaign are as follows:
1. For candidates for governor, lieutenant governor, secretary of state, state
treasurer, attorney general, state superintendent, or justice, $10,000, except that a
committee may contribute up to 4 percent of the disbursement level established
under current law.
2. For candidates for state senator, $1,000.
3. For candidates for state assembly representative, $500.
4. For candidates for circuit judge in circuits having a population of more than
300,000, or candidates for district attorney in prosecutorial units having a
population of more than 300,000, $3,000.

5. For candidates for circuit judge in other circuits or candidates for district
attorney in other prosecutorial units, $1,000.
This substitute amendment doubles the limits for contributions by an
individual or committee to candidates for governor, lieutenant governor, secretary
of state, state treasurer, attorney general, state superintendent, justice, state
senator, state assembly representative, circuit judge, and district attorney.
Under current law, the total amount that an individual may contribute
annually to all candidates for state and local offices, and to persons who are required
to register for campaign financing purposes, is $10,000. The substitute amendment
increases that amount to $20,000.
Under current law, a political party may not receive more than $150,000 in
value of its contributions in any biennium from committees, other than political
party or legislative campaign committees. The substitute amendment increases that
amount to $300,000.
Under current law, a political party may not receive more than $6,000 in value
of its contributions annually from any specific committee, excluding a political party
or legislative campaign committee. The substitute amendment increases that
amount to $12,000.
The substitute amendment also increases the total value of contributions that
a committee, other than a political party or legislative campaign committee, may
make to a political party from $6,000 each year to $12,000 each year.
Under current law, no individual who is a candidate for state or local office may
receive in contributions more than 65 percent of the value of the total disbursement
level for the office for which he or she is a candidate during any primary and election
campaign combined from all committees, including political party and legislative
campaign committees. In addition, no individual who is a candidate for state or local
office may receive in contributions more than 45 percent of the value of the total
disbursement level for the office for which he or she is a candidate during any
primary and election campaign combined from all committees other than political
party and legislative campaign committees. Consequently, the amount of the
contributions that a candidate may receive from political party or legislative
campaign committees is determined by subtracting the amount that represents 45
percent of the value of the total disbursement level from the amount that represents
65 percent of the disbursement level. The disbursement levels under current law do
not restrict the total amount of disbursements that may be made by any candidate
in any election, but are used only to calculate certain contribution limits.
This substitute amendment eliminates the disbursement levels and specifies
the contribution limits for contributions from committees for state and local offices
based on the 65 percent/45 percent formula under current law. In addition, the
substitute amendment doubles the contribution limits from committees for
candidates for governor, lieutenant governor, secretary of state, state treasurer,
attorney general, state superintendent, justice, state senator, state assembly
representative, circuit judge, and district attorney.
Finally, the substitute amendment provides that, beginning on July 1, 2015,
and every two years thereafter, the Government Accountability Board (GAB) will

modify the contribution limits under the campaign finance laws to adjust for the
change in the consumer price index for the preceding two-year period ending on
December 31.
Communications by legislators
Currently, with certain exceptions, no person who is elected to state or local
office and who becomes a candidate for national, state, or local office may use public
funds for the cost of materials or distribution of 50 or more pieces of substantially
identical material distributed during the period beginning on the first day for
circulation of nomination papers as a candidate (or certain other dates for candidates
who do not file nomination papers) and ending on the date of the election at which
the person's name appears on the ballot, or on the date of the primary election at
which the person's name so appears if the person is not nominated at the primary.
This substitute amendment provides that this prohibition does not apply to the
cost of materials or distribution of a communication made by a member of the
legislature to an address located within the legislative district represented by that
member during the 45-day period following declaration of a state of emergency by
the governor affecting any county in which the district is located if the
communication relates solely to the subject of the emergency.
Internet political activity; individual and public communications
Currently, with certain exceptions, payments for political communications are
subject to disclosure under the campaign finance law, regardless of the medium that
is used to conduct the communications. Payments for Internet communications are
treated like payments for other communications. Currently, the cost of news stories,
political interviews, editorial commentary, or endorsements, regardless of the
medium by which they are distributed, are not contributions or disbursements and
therefore are not reportable. The costs of communications by an organization other
than a political party or personal campaign committee that are limited to the
organization's members, shareholders, or subscribers are generally not reportable.
In addition, all services for a political purpose by an individual on behalf of a
campaign finance registrant are not reportable and are not subject to the current
prohibition on contributions and disbursements by corporations and cooperatives
unless the individual performing the services is compensated specifically for those
services.
This substitute amendment provides that any cost incurred to conduct Internet
activity is not a contribution or disbursement, and is therefore not reportable if it is
performed by an individual acting in his or her own behalf, or acting in behalf of
another person, and if the individual is not compensated specifically for his or her
services. This includes the cost or value of any equipment and services used by the
individual to conduct the activity, but does not include professional video production
services purchased by the individual. The substitute amendment similarly provides
that any cost incurred in covering a news story, commentary, or editorial by a
broadcasting station, cable television operator, producer, or programmer, Internet
site, or newspaper or other periodical publication, including an Internet or other
periodical publication, except the cost of a news story that appears in a medium that
is owned by a candidate, candidate's authorized committee, or political party, is not

a contribution or disbursement and is therefore not reportable. In addition, the
substitute amendment provides specifically that the following are disbursements,
and are therefore reportable: a) any payment for a communication to the general
public for a political purpose except an Internet communication that is not a
disbursement under the substitute amendment; b) any payment for the purchase or
rental of an electronic-mail address list that is made at the direction of a campaign
finance registrant for a political purpose; or c) any payment for an electronic-mail
address list that is transferred to a registrant for a political purpose. The substitute
amendment provides however, that the following are not disbursements, and are
therefore not reportable: a) a communication or Internet activity by an individual
acting in his or her own behalf, or acting in behalf of another person if the individual
is not compensated specifically for those services, including the cost or value of any
electronic equipment and services used by the individual to conduct the activity; or
b) a nominal fee paid for a communication to the general public.
Electronic filing
Under current law, GAB must require each registrant for whom GAB serves as
a filing officer under the campaign finance laws and who or which accepts
contributions of $20,000 or more during a campaign period to file campaign finance
reports electronically. In addition, GAB must accept campaign finance reports
electronically from any other registrant for whom GAB serves as a filing officer.
Current law requires GAB to specify, by rule, software that is suitable for complying
with the electronic filing requirement and must provide the software to registrants
at a price not to exceed its cost. Any registrant who or which files reports
electronically with GAB must also submit a copy of the report to GAB and the copy
must be signed by an authorized individual.
Under the substitute amendment, the software that GAB specifies for
electronic filing must allow a registrant to provide an electronic signature that is
subject to a security procedure. The substitute amendment also eliminates the
requirement that a registrant who or which files a report electronically must file a
copy with GAB. A registrant who or which files a report electronically may, however,
file with GAB that portion of the report signed by an authorized individual rather
than submit the electronic signature of that individual.
Itemized statement
Under current law, each person who is required to report under the campaign
finance laws must include in the report an itemized statement regarding each
contribution, disbursement, or obligation exceeding $20. The substitute amendment
increases this threshold to $40.
Campaign finance reporting
Generally, under current law, registrants participating in a primary or election
must file preprimary or preelection reports. Preprimary and preelection reports
must be received by a filing officer no earlier than 14 days and no later than 8 days
before the primary and election. Specifically, under current law: 1) a candidate or
personal campaign committee of a candidate at a primary must file preprimary and
preelection reports; 2) a candidate or personal campaign committee of a candidate
at an election must file a preelection report; 3) a registered committee or individual

other than a candidate or personal campaign committee making or accepting
contributions or disbursements in support of or in opposition to a candidate at a
primary or to a committee or individual engaging in such activities must file a
preprimary and preelection report; 4) a registered committee or individual other
than a candidate or personal campaign committee making or accepting contributions
or disbursements in support of or in opposition to a candidate at an election or to a
committee or individual engaging in such activities must file a preelection report; 5)
a registered group or individual making or accepting contributions or making
distributions in support of or in opposition to a referendum appearing on a primary
ballot must file a preprimary and preelection report; and 6) a registered group or
individual making or accepting contributions or making distributions in support of
or in opposition to a referendum appearing on an election ballot must file a
preelection report. Under current law, if any report is required to be filed on a
nonbusiness day, the report may be filed on the next business day thereafter.
The substitute amendment retains the preprimary and preelection reporting
requirements and the flexible filing date in the event that the filing date is a
nonbusiness day.
The substitute amendment requires registrants participating in a spring
primary or spring election to, annually, file reports on the fifteenth day of the month
in the months of January, April, July, and October.
The substitute amendment requires those registrants participating in a
partisan primary or general election to file reports on the fifteenth day of the month
in the months of January, April, July, and October in an odd-numbered (nonelection)
year and, in an even-numbered (election) year, on the fifteenth day of the month in
the months of April and July and on the fourth Tuesday of September.
Currently, individuals and committees supporting or opposing candidates for
office, and individuals, groups, and corporations supporting or opposing a
referendum, must submit reports of contributions received, contributions or
disbursements made, and obligations incurred to the appropriate filing officer twice
each year: on or after January 1 but no later than January 31; and on or after July
1 but no later than July 20. This substitute amendment changes the reporting
requirement as follows: 1) individuals and committees supporting or opposing
candidates in a spring primary or election and individuals, groups, and corporations
supporting or opposing a referendum appearing on a spring ballot must file reports
on the fifteenth day of the month in the months of January, April, July, and October;
2) individuals and committees supporting or opposing candidates in a partisan
primary or general election and individuals, groups, and corporations supporting or
opposing a referendum appearing on a general election ballot must, in an
odd-numbered (nonelection) year, file reports on the fifteenth day of the month in the
months of January, April, July, and October and, in an even-numbered (election)
year, file reports on the fifteenth day of the month in the months of April and July
and on the fourth Tuesday of September.
Conduits; campaign finance reporting
Current law defines a conduit as an individual or organization that receives a
contribution of money and transfers the contribution to another individual or

organization without exercising discretion as to either the amount transferred or the
individual to whom or organization to which the transfer is made. A transfer of
money from a conduit is considered to be a transfer of money from the individual or
organization that made the contribution to the conduit. Current law requires
conduits to register with GAB; as a registrant, current law also requires a conduit
to make financial reports related to contributions and distributions made or received
by the conduit. Generally, financial reports must include an itemized statement
giving the date, full name and street address of certain contributors, together with
the amount of the contribution and the cumulative total contributions made by that
contributor for the calendar year; the occupation and name and address of the
principal place of employment, if any, of certain individual contributors; cumulative
totals for the calendar year of contributions received by the registrant, and
disbursements made, including transfers of funds made to or received from other
registrants; and a statement of the registrant's cash balance on hand at the
beginning and end of the reporting period.
This substitute amendment modifies the reporting requirements for conduits
to conform with current GAB practice. Current GAB practice requires conduits to
file, at each required reporting period, a summary report listing the date of the
transfer of money, the complete name and address of each transferee, the total
amount transferred to each transferee within the reporting period, and the total
amount transferred during the calendar year. Current GAB practice also requires
conduits to submit, along with the summary report, a copy of documentation
submitted to each transferee. The documentation must: 1) clearly identify that the
contribution is from a conduit; 2) identify the name and address of the transferee to
whom contributions are transferred, the date the transfer was made, and the total
amount transferred; 3) provide the complete name and home address of each
individual contributor and the amount of his or her contributions, regardless of the
amount; and 4) under certain circumstances, identify the contributor's occupation
and the complete name and address of the contributor's principal place of
employment.
The substitute amendment also requires conduits to report the beginning and
ending balances of cash on hand for each reporting period.
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