House Bill No. 517

Introduced By vick, thomas, grinde, sliter, knox, beaudry, holland, r. johnson, rose, mcgee, wells, benedict, baer, simpkins, mood, wiseman, boharski, jore, ohs, m. hanson, l. taylor, ahner, tash, denny, masolo, barnett, bookout-reinicke, miller, bohlinger, walters, hayne, debruycker, bergman, bergsagel, devaney, zook, keenan, anderson, mercer, wagner, clark, cobb, story, soft, mohl, emerson, burnett, keating, feland, jenkins, aklestad, swysgood, grosfield, devlin, brainard, rehbein, mahlum, marshall, kasten

A Bill for an Act entitled: "An Act Requiring a Corporation, a Labor or Professional Organization, or an Employer Who Withholds and Diverts a Portion of the Wages or Salary of a Shareholder, AN Employee, or Member Who Voluntarily Contributes Money For Political Purposes to Inform Each Shareholder, Employee, or Member that Contributions May be Contributed to a Particular Political Party or, Political Committee, OR CANDIDATE; Requiring A Corporation, a Labor or Professional Organization, or an Employer to provide a Form for Each Shareholder, Employee, or Member to Earmark Contributions TO BE USED FOR POLITICAL PURPOSES TO OBTAIN PRIOR AUTHORIZATION FROM THE EMPLOYEE OR MEMBER; and amending section 13-35-227, MCA."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 13-35-227, MCA, is amended to read:

"13-35-227.   Prohibited contributions from corporations -- notification -- prescribed form for designation of contributions to separate segregated fund WITHHOLDING OF FUNDS FROM WAGES OR SALARIES BY CORPORATION, LABOR OR PROFESSIONAL ORGANIZATION, OR EMPLOYER -- DEFINING "FUNDS TO BE USED FOR POLITICAL PURPOSES". (1) A corporation may not make a contribution or an expenditure in connection with a candidate or a political committee which that supports or opposes a candidate or a political party.

(2)  A person, candidate, or political committee may not accept or receive a corporate contribution described in subsection (1).

(3)  This section does not prohibit the establishment or administration of a separate, segregated fund to be used for making political contributions or expenditures if the fund consists only of voluntary contributions solicited from an individual who is a shareholder, an employee, or a member of the corporation.

(4) A corporation, a labor or professional organization, or an employer, prior to withholding and diverting a portion of wages or salary for a shareholder, AN employee, or member who voluntarily chooses to contribute the money pursuant to this section, shall provide the shareholder, employee, or member with a form prescribed by THE COMMISSIONER OF POLITICAL PRACTICES AND PROVIDED BY the corporation, the labor or professional organization, or the employer that:

(a) informs each shareholder, employee, and member of the right to earmark political contributions pursuant to rules adopted by the commissioner of political practices; and

(b) provides spaces for the shareholder, employee, or member to specify whether the contribution:

(i) may be diverted to any political party or political committee OR CANDIDATE chosen by the corporation, the labor or professional organization, or the employer; OR

(ii) must be contributed to a recognized political party or political committee OR CANDIDATE identified by the employee; or

(iii) must be contributed to a nonprofit organization.

(5) WHEN A CONTRIBUTION IS MADE AND ANY PORTION OF THE CONTRIBUTION MAY BE USED FOR POLITICAL PURPOSES, SUBSECTION (4)(B) APPLIES MAY NOT WITHHOLD A PORTION OF AN EMPLOYEE'S OR MEMBER'S WAGES OR SALARY AS FUNDS TO BE USED FOR POLITICAL PURPOSES WITHOUT OBTAINING PRIOR AUTHORIZATION FOR THE WITHHOLDING FROM THE EMPLOYEE OR MEMBER.

(5) AS USED IN THIS SECTION, "FUNDS TO BE USED FOR POLITICAL PURPOSES" MEANS FUNDS USED TO ADVOCATE THE ELECTION OR DEFEAT OF ANY POLITICAL PARTY, POLITICAL COMMITTEE, OR CANDIDATE FOR AN ELECTED OFFICE OTHER THAN A FEDERAL OFFICE. THE TERM DOES NOT INCLUDE THE COST OF ANY COMMUNICATION BY ANY MEMBERSHIP ORGANIZATION OR CORPORATION TO ITS MEMBERS OR STOCKHOLDERS OR EMPLOYEES, AS LONG AS THE ORGANIZATION IS NOT A PRIMARY POLITICAL COMMITTEE.

(4)(5)(6)  A person who violates this section is subject to the civil penalty provisions of 13-37-128."

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