AN ACT GENERALLY REVISING CAMPAIGN CONTRIBUTION PROVISIONS; ELIMINATING LIMITATIONS ON CONTRIBUTIONS TO AND BY POLITICAL PARTY COMMITTEES; PROVIDING THAT THE LIMITS APPLY TO AN ELECTION CYCLE AND DEFINING "ELECTION CYCLE"; REVISING DISCLOSURE REQUIREMENTS; REQUIRING DISCLOSURE ON THE INTERNET; PROHIBITING ACCEPTANCE OR DEPOSIT OF CONTRIBUTIONS AFTER A CERTAIN NUMBER OF DAYS FOLLOWING A GENERAL ELECTION AND PROVIDING A PENALTY; REVISING REPORTING REQUIREMENTS; REQUIRING A CLOSING REPORT BEFORE AN ELECTED CANDIDATE MAY ASSUME OFFICE; PROVIDING FOR A TRANSFER OF FUNDS; PROVIDING AN APPROPRIATION FOR ONLINE INTERNET ACCESS TO INFORMATION COLLECTED BY THE COMMISSIONER OF POLITICAL PRACTICES; AND AMENDING SECTIONS 2-16-501, 13-37-117, 13-37-208, 13-37-216, 13-37-225, 13-37-226, 13-37-228, 13-37-230, AND 13-37-240, MCA.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 2-16-501, MCA, is amended to read:

"2-16-501. Vacancies created. (1) An office becomes vacant on the happening of any one of the following events before the expiration of the term of the incumbent:

(a) the death of the incumbent;

(b) a determination pursuant to Title 53, chapter 21, part 1, that the incumbent suffers from a mental disorder and is in need of commitment;

(c) resignation of the incumbent;

(d) removal of the incumbent from office;

(e) the incumbent's ceasing to be a resident of the state or, if the office is local, of the district, city, county, town, or township for which the incumbent was chosen or appointed or within which the duties of the incumbent's office are required to be discharged;

(f) absence of the incumbent from the state, without the permission of the legislature, beyond the period allowed by law;

(g) the incumbent's ceasing to discharge the duty of the incumbent's office for the period of 3 consecutive months, except when prevented by sickness or when absent from the state by permission of the legislature;

(h) conviction of the incumbent of a felony or of an offense involving moral turpitude or a violation of the incumbent's official duties;

(i) the incumbent's refusal or neglect to file the incumbent's official oath or bond within the time prescribed;

(j) the decision of a competent tribunal declaring void the incumbent's election or appointment.

(2) Subject to subsection (1) of this section and except as provided in 13-37-228(4), if the candidate elected to fill an office is ineligible under the terms specified in 13-37-228(4) to assume the office, the office is not vacant following the expiration of the incumbent's term and the incumbent shall remain in office."

Section 2. Section 13-37-117, MCA, is amended to read:

"13-37-117. Commissioner to provide forms, manuals, and election laws -- internet disclosure and electronic submission of financial reports. (1) The commissioner shall prescribe forms for reports and other information required to be filed pursuant to chapter 35, 36, or 37 of this title and furnish forms and appropriate information to persons required to file reports and other information.

(2) The commissioner shall prepare and publish a manual prescribing a uniform system for accounts for use by persons required to file reports pursuant to chapter 35, 36, or 37 of this title.

(3) The commissioner shall, at the expense of the state, furnish copies of the election laws relating to penalties, campaign practices, campaign finances, and contested elections to candidates and to any other persons required to file reports or other information pursuant to chapter 35, 36, or 37 of this title.

(4) (a) Within 48 hours after submission of a financial report required under part 2 of this chapter, a report by a statewide candidate or a state district candidate must be posted to an internet site in a manner prescribed by the commissioner.

(b) A financial report may be submitted in an electronic format specified by the commissioner."

Section 3. Section 13-37-208, MCA, is amended to read:

"13-37-208. Treasurer to keep records. (1) The campaign treasurer of each candidate and each political committee shall keep detailed accounts (current within not more than 10 days after the date of receiving a contribution or making an expenditure, except that accounts must be current as of the 5th day before the date of filing of a report as specified in 13-37-226(7)) of all contributions received and all expenditures made by or on behalf of the candidate or political committee that are required to be set forth in a report filed under this chapter.

(2) Accounts of a deputy campaign treasurer must be transferred to the treasurer of a candidate or political committee before the candidate or political committee finally closes its books or when the position of a deputy campaign treasurer becomes vacant and a successor is not appointed.

(3) Accounts kept by a campaign treasurer of a candidate or political committee must be preserved by the campaign treasurer for a period coinciding with the term of office for which the person was a candidate or for a period of 4 years, whichever is longer."

Section 4. Section 13-37-216, MCA, is amended to read:

"13-37-216. Limitations on contributions. (1) (a) Aggregate campaign contributions for each election cycle by a political committee, except a political party committee, or by an individual, other than the candidate, to a candidate are limited as follows:

(i) for candidates filed jointly for the offices of governor and lieutenant governor, not to exceed $400;

(ii) for a candidate to be elected for state office in a statewide election, other than the candidates for governor and lieutenant governor, not to exceed $200;

(iii) for a candidate for any other public office, not to exceed $100.

(b) A contribution to a candidate includes contributions made to the candidate's committee and to any political committee organized on the candidate's behalf.

(2) (a) A political committee that is not independent of the candidate is considered to be organized on the candidate's behalf. For the purposes of this section, an independent committee means a committee that is not specifically organized on behalf of a particular candidate or that is not controlled either directly or indirectly by a candidate or candidate's committee and that does not act jointly with a candidate or candidate's committee in conjunction with the making of expenditures or accepting contributions.

(b) A leadership political committee maintained by a political officeholder is considered to be organized on the political officeholder's behalf.

(3) A candidate may not accept any contributions in excess of the limits in this section.

(4) For purposes of this section, the following definitions apply:

(a) "Election cycle" means the time between the date when the candidate files pursuant to the provisions of this title to become a candidate and the general election .

(b) "Political party committee" means a committee formed by a political party organization.

(c) "Political party organization" means any political organization that was represented on the official ballot at the most recent gubernatorial election."

Section 5. Time period during which acceptance or deposit of contributions is prohibited -- exception. (1) A candidate may not accept a contribution or deposit a contribution later than 10 days after the general election. A candidate violating this section is subject to the penalty provided in 13-37-128.

(2) Subsection (1) does not apply to a contribution of the candidate's own money.

Section 6. Section 13-37-225, MCA, is amended to read:

"13-37-225. Reports of contributions and expenditures required. (1) Except as provided in 13-37-206, each candidate and political committee shall file periodic reports of contributions and expenditures made by or on the behalf of a candidate or political committee. All reports required by this chapter shall be filed with the commissioner in the manner required by 13-37-117 and with the election administrator of the county in which a candidate is a resident or the political committee has its headquarters. However, when residency within a district, county, city, or town is not a prerequisite for being a candidate, copies of all reports must be filed with the election administrator of the county in which the election is to be held or, if the election is to be held in more than one county, with the election administrator in the county that the commissioner specifies.

(2) In lieu of all contribution and expenditure reports required by this chapter, the commissioner shall accept copies of the reports filed by candidates for congress and president of the United States and their political committees pursuant to the requirements of federal law."

Section 7. Section 13-37-226, MCA, is amended to read:

"13-37-226. Time for filing reports. (1) Candidates for a state office filled by a statewide vote of all the electors of Montana and political committees that are organized to support or oppose a particular statewide candidate shall file reports:

(a) quarterly, due on the 5th day following a calendar quarter, beginning with the calendar quarter in which funds are received or expended during the year or years prior to the election year that the candidate expects to be on the ballot;

(b) on the 10th day of March and September in each year that an election is to be held and on the 15th and 5th days preceding the date on which an election is held and within 48 hours after receiving a contribution of $300 or more ;

(c) not more than 20 days after the date of the election; and

(d) on the 10th day of March and September of each year following an election until the candidate or political committee files a closing report as specified in 13-37-228(3).

(2) Political committees organized to support or oppose a particular statewide ballot issue shall file reports:

(a) quarterly, due on the 5th day following a calendar quarter, beginning with the calendar quarter in which funds are received or expended during the year or years prior to the election year that an issue subject to a referendum is or is expected to be on the ballot;

(b) on the 10th day of March and on the 10th day of each subsequent month through September;

(c) on the 15th and 5th days preceding the date on which an election is held;

(d) within 48 hours after receiving a contribution of $300 or more ;

(e) within 20 days after the election; and

(f) on the 10th day of March and September of each year following an election until the political committee files a closing report as specified in 13-37-228(3).

(3) Candidates for a state district office, including but not limited to candidates for the legislature, the public service commission, or district court judge, and political committees that are specifically organized to support or oppose a particular state district candidate or issue shall file reports:

(a) on the 12th day preceding the date on which an election is held and within 48 hours after receiving a contribution of $300 or more . The report under this subsection (3)(a) may be made by mail or by electronic communication to the election administrator and the commissioner .

(b) not more than 20 days after the date of the election; and

(c) whenever a candidate or political committee files a closing report as specified in 13-37-228(3).

(4) Candidates for any other public office and political committees that are specifically organized to support or oppose a particular local issue shall file the reports specified in subsection (3) only if the total amount of contributions received or the total amount of funds expended for all elections in a campaign, excluding the filing fee paid by the candidate, exceeds $500, except as provided in 13-37-206.

(5) For the purposes of this subsection, a committee that is not specifically organized to support or oppose a particular candidate or ballot issue and that receives contributions and makes expenditures in conjunction with an election is an independent committee. For the purpose of reporting, a political party committee is an independent committee. An independent committee shall file:

(a) a report on the 12th day preceding the date of an election in which it participates by making an expenditure;

(b) a report not more than 20 days after the date of the election in which it participates by making an expenditure; and

(c) a report on a date to be prescribed by the commissioner for a closing report at the close of each calendar year.

(6) The commissioner may promulgate rules regarding the extent to which organizations that are not primary political committees but are incidental political committees shall report their politically related activities in accordance with this chapter.

(7) All reports required by subsections (1) through (5) must be complete as of the 5th day before the date of filing as specified in 13-37-228(2) and this section."

Section 8. Section 13-37-228, MCA, is amended to read:

"13-37-228. Time periods covered by reports -- closing report required before assuming office. Reports filed under 13-37-225 and 13-37-226(1) through (5) must be filed to cover the following time periods even though no contributions or expenditures may have been received or made during the period:

(1) The initial report must cover all contributions received or expenditures made by a candidate or political committee prior to the time that a person became a candidate or a political committee, as defined in 13-1-101, until the 5th day before the date of filing of the appropriate initial report pursuant to 13-37-226(1) through (5).

(2) Subsequent periodic reports must cover the period of time from the closing of the previous report to 5 days before the date of filing of a report pursuant to 13-37-226(1) through (5).

(3) Closing reports must cover the period of time from the last periodic report to the final closing of the books of the candidate or political committee. Except as provided in subsections (4) and (5), a candidate or political committee shall file a closing report following an election in which the candidate or political committee participates whenever all debts and obligations are extinguished and no further contributions or expenditures will be received or made that relate to the campaign, unless the election is a primary election and the candidate or political committee will participate in the general election.

(4) An elected candidate shall file a closing report by no later than December 30 after the general election showing which debts have been retired, which debts have not been retired, that surplus funds have been disposed of in a manner consistent with 13-37-240(2) and (3), and that all campaign activity has ceased. An elected candidate may not assume office until the closing report is filed. If the report is not filed within 1 week after the date on which the candidate should have assumed office, the office must be considered vacated pursuant to 2-16-501 and filled as provided by law as if a vacancy had occurred in office.

(5) A candidate retiring campaign debt by using the candidate's own contributions shall retire that debt within 120 days of the filing of the closing report pursuant to this section."

Section 9. Section 13-37-230, MCA, is amended to read:

"13-37-230. Disclosure of expenditures made. Each report required by this chapter shall disclose the following information, except that a candidate shall only be required to report the information specified in this section if the transactions involved were undertaken for the purpose of influencing an election:

(1) the full name and mailing address (occupation and the principal place of business, if any) of each person to whom expenditures have been made by the committee or candidate during the reporting period, including the amount, date, and purpose of each expenditure and the total amount of expenditures made to each person;

(2) the full name and mailing addresses (occupation and the principal place of business, if any) of each person to whom an expenditure for personal services, salaries, and reimbursed expenses have been made, including the amount, date, and purpose of that expenditure and the total amount of expenditures made to each person;

(3) the total sum of expenditures made by a political committee or candidate during the reporting period;

(4) the total sum of financial obligations that were incurred by a political committee or candidate during the reporting period but have not yet been paid and that, when paid, must be reported as an expenditure pursuant to this chapter;

(5) the name and address of each political committee or candidate to which the reporting committee or candidate made any transfer of funds, together with the amount and dates of all transfers;

(6) the name of any person to whom a loan was made during the reporting period, including the full name and mailing address (occupation and principal place of business, if any) of that person, and the full name and mailing address (occupation and principal place of business, if any) of the endorsers, if any, and the date and amount of each loan;

(7) the amount , nature, and date of each debt and obligation owed by a political committee or candidate in the form prescribed by the commissioner;

(8) other information that may be required by the commissioner to fully disclose the disposition of funds used to support or oppose candidates or issues."

Section 10. Section 13-37-240, MCA, is amended to read:

"13-37-240. Surplus campaign funds. (1) Except as provided in 13-37-228(4), a candidate shall dispose of any surplus funds from the candidate's campaign within 120 days after the time of filing the closing campaign report pursuant to 13-37-228.

(2) In disposing of the surplus funds, a candidate may not contribute the funds to another campaign, including the candidate's own future campaign, or use the funds for personal benefit. The candidate shall provide a supplement to the closing campaign report to the commissioner showing the disposition of any surplus campaign funds.

(3) For purposes of this section, "personal benefit" means a use that will provide a direct or indirect benefit of any kind to the candidate or any member of the candidate's immediate family."

Section 11. Transfer of funds. The amount of $200,000 is transferred from the department of justice state special revenue account for miscellaneous grants and natural resources damage (02003) to an account in the state special revenue fund to the credit of the commissioner of political practices.

Section 12. Appropriation for online access to political practices information. There is appropriated from the account in the state special revenue fund to which money is transferred under [section 11] $200,000 to the commissioner of political practices for the purpose of providing online internet access to information collected by the commissioner of political practices.

Section 13. Codification instruction. [Section 5] is intended to be codified as an integral part of Title 13, chapter 37, part 2, and the provisions of Title 13, chapter 37, part 2, apply to [section 5].

Section 14. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].

- END -

I hereby certify that the within bill,

HB 0350, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE BILL NO. 350

INTRODUCED BY M. BRAINARD

AN ACT GENERALLY REVISING CAMPAIGN CONTRIBUTION PROVISIONS; ELIMINATING LIMITATIONS ON CONTRIBUTIONS TO AND BY POLITICAL PARTY COMMITTEES; PROVIDING THAT THE LIMITS APPLY TO AN ELECTION CYCLE AND DEFINING "ELECTION CYCLE"; REVISING DISCLOSURE REQUIREMENTS; REQUIRING DISCLOSURE ON THE INTERNET; PROHIBITING ACCEPTANCE OR DEPOSIT OF CONTRIBUTIONS AFTER A CERTAIN NUMBER OF DAYS FOLLOWING A GENERAL ELECTION AND PROVIDING A PENALTY; REVISING REPORTING REQUIREMENTS; REQUIRING A CLOSING REPORT BEFORE AN ELECTED CANDIDATE MAY ASSUME OFFICE; PROVIDING FOR A TRANSFER OF FUNDS; PROVIDING AN APPROPRIATION FOR ONLINE INTERNET ACCESS TO INFORMATION COLLECTED BY THE COMMISSIONER OF POLITICAL PRACTICES; AND AMENDING SECTIONS 2-16-501, 13-37-117, 13-37-208, 13-37-216, 13-37-225, 13-37-226, 13-37-228, 13-37-230, AND 13-37-240, MCA.