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Contact Us Address: Citizens’ Election Program State Elections Enforcement Commission 55 Farmington Ave Hartford, Connecticut 06105 Main Telephone: 860-256-2940 Toll Free (outside Hartford area): 866-SEEC-INFO Candidate Services Unit: 860-256-2985 Main Fax: 860-256-2981 Website: https://portal.ct.gov/seec E-Mail: [email protected] Cite this publication as: Understanding Connecticut Campaign Finance Laws: A Guide for 2020 General Assembly Candidates Participating in the Citizens’ Election Program (Connecticut State Elections Enforcement Commission. Hartford, Connecticut) February 2020. Table of Contents I. Overview 1 A. Purpose of this Guide 1 B. Changes in the Law 1 C. Changes in this Guide 1 D. Basics of the Program 1 E. Goals of the Program 2 F. Candidate Services Unit 2 G. eCRIS (Electronic Campaign Reporting Information System) 3 II. Getting Started 5 A. Before Joining the Program 5 B. Who is a Candidate? 5 C. What is an Exploratory Committee? 6 D. What is a Candidate Committee? 8 E. When and How to Amend a Registration Statement 9 F. Treasurers and Deputy Treasurers 10 G. Resignation and Replacement of the Treasurer 11 H. Designation of a Depository Institution for Committee Funds 11 I. Federal Employer Identification Number (EIN) Requirement 12 J. Joining the Program: Affidavits of Intent 12 K. Withdrawal from the Program 13 L. Spending Limits 14 M. Electronic Funds Transfer 15 N. Personal Funds 15 O. Reusing Campaign Materials from a Previous Campaign 16 1. Lawn Signs 16 2. Other Prior Assets 17 P. Using Exploratory Committee Material in Candidate Committee 18 Q. Loans to the Candidate Committee 18 III. Qualifying Contributions 19 A. Two Components of Qualifying Contributions 19 1. “In-District” Defined 19 2. Required Aggregate Dollar Amounts (Regular Election) 21 3. Required Aggregate Dollar Amounts (Special Election) 21 B. What Is a Qualifying Contribution? 21 C. Excess (“Buffer”) Qualifying Contributions 22 D. How to Calculate the Amount of the Buffer Check 23 i E. What Contributions are Non-Qualifying? 24 1. Contributions Lacking the Criteria for a Qualifying Contribution 24 a. Non-Monetary (“In-Kind”) Contributions 24 b. Portions of Contributions Over the $100 Aggregate Limit 25 c. Contributions from Party Committees and Political Committees 25 d. Contributions Lacking Adequate Documentation 26 e. The Candidate 26 2. Prohibited Sources 26 a. Business Entities and Unions 26 b. Lobbyists in any Amount During the Legislative Session and in Excess of $100 at any Time 27 c. Principals of Current and Prospective State Contractors 27 d. Retirement Security Authority Contribution and Solicitation Provisions 29 e. Anonymous Donations 29 f. Foreign Nationals 29 g. Contributions from Minors Under the Age of 12 or Over $30 29 F. Documentation for Qualifying Contributions 30 G. Raising Additional Qualifying Contributions 30 H. Raising Qualifying Contributions in Exploratory Committee 31 I. Solicitors 32 1. Solicitors Generally 32 2. Limitations on Who May Solicit Contributions 33 J. Fundraising in the Program 34 K. Joint Fundraising 35 L. Volunteers, Travel, House Parties, and Facility Space 36 M. Qualifying Contributions from a Joint Checking Account 39 N. Spending Qualifying Contributions 39 IV. Applying for Grants 41 A. Ballot Requirement 41 B. Completing a Grant Application 41 1. The Application Form (SEEC Form CEP 15) 42 2. Ballot Qualification 43 3. Cumulative Itemized Accounting – Initial Itemized Statement Accompanying Grant Application for Public Grant 44 4. Documentation of All Qualifying Contributions 45 5. The “Buffer” Qualifying Contributions 45 C. Initial Review of Disclosure Statement Before Submission with Grant Application 45 D. Grant Determinations 46 E. Continuance or Re-Application 46 F. No Deposits After Grant is Received 46 ii G. Deadlines for Receipt of Grant Applications 47 H. Grant Application Deadlines & Commission Meeting Dates 49 I. Grant Reduction Schedule 50 J. Checklist for Grant Application 55 V. Campaign Grants 56 A. Primary Campaign Grants 56 1. Primary Campaign Grant Amounts 57 2. Candidates in Party-Dominant Districts 57 B. General Election Campaign Grants 58 1. Grant Reduction Schedule 58 2. Major Party Candidates 58 3. Minor Party and Petitioning Candidates 59 4. Committees of General Assembly Candidates Who Received a Grant Who Face an Adjourned Primary or Election May Be Eligible for an Additional Grant 61 VI. Campaign Expenditures 63 A. Permissible Expenditures Generally 63 B. Reimbursement for Authorized Expenditures 64 C. Joint Expenditures with Another Committee 65 D. Impermissible Expenditures 66 1. Personal Use 66 2. Payments to Candidate or Candidate’s Family Members or their Businesses 66 3. Contributions to Other Committees or Gifts of Any Kind to Any Person 67 4. Payments for Goods or Services Above or Below Fair Market Value 68 5. Expenditures Lacking Sufficient Contemporaneous Documentation of a Campaign-Related Purpose 68 6. Other Improper Expenditures 68 E. Bank Interest 69 F. Expenditure Limits 69 1. Pre-Primary/Pre-General Election Campaign Period Expenditure Limits 69 2. Primary & General Election Campaign Expenditure Limits 70 G. Minor Party and Petitioning Candidates May Raise and Spend Additional Contributions 71 H. Supplemental Reporting 72 I. What Happens if a Campaign Makes an Excess Expenditure? 72 J. Advertising Expenditures and Attribution (Disclaimer) Requirements 73 1. Core Attribution Requirements 73 a. “Paid for By” 74 b. “Approved By” 74 2. Attribution Requirements for Television or Internet Video Advertising Communications 74 iii 3. Attribution Requirements for Radio or Internet Audio Advertising Communications 75 4. Attribution Requirements for Campaign “Robo” Telephone Calls 75 5. Exceptions to the Attribution Requirements 75 K. Post-Election Spending 76 VII. Expenditures by Outside Sources 77 A. Non-Independent (Coordinated) Expenditures 77 B. Organization Expenditures 79 C. Independent Expenditures 80 VIII. Treasurer’s Responsibilities and Recordkeeping 81 A. Monitors and Authorizes All Expenditures 81 B. Oversees and Authorizes the Deposits of All Monetary Receipts 81 C. Documents Payments for Work or Services 83 D. Files Periodic Financial Disclosure Statements 84 E. Appoints Solicitors 84 F. Obtains and Keeps All Committee Records 84 1. Internal Records 85 2. Contribution Records 85 3. Qualifying Contribution Documentation 86 4. Contribution Certification Documentation 87 a. Contribution Certification Forms 87 b. Procedure for Contributions over $50 not Accompanied by State Contractor Certification 87 c. Contribution ID Number 88 d. Documenting Cash and Money Order Contributions 89 e. Documenting Check Contributions 89 f. Documenting Debit Card and Credit Card Contributions 90 g. Treasurer’s Best Practice Checklist: Qualifying Contributions 94 5. Expenditure Documentation 96 a. Expenditure Records 96 b. What is “Contemporaneous Detailed Documentation”? 97 c. Documenting Payments to Personnel for Work or Services 98 d. Form of Payment for Committee Expenditures 99 1. Checks 99 2. Petty Cash 99 e. Reimbursements to Consultants, Committee Workers and Candidates 99 f. Disclosure of Secondary Payees 100 iv IX. Disclosure 103 A. Reporting Calendar and Filing Deadlines 103 B. Declaration of Excess Expenditures Statement 104 1. 48 Hours 104 2. 24 Hours 104 3. Excess Expenditure Triggers 105 a. Participating Candidates in the Primary 105 b. Participating Candidates in the General Election 105 4. Penalties for Exceeding Expenditure Limits 105 C. How to File Weekly Supplemental Statements 105 D. Organization Expenditure Disclosure Requirements 106 E. Expenses Incurred but Not Paid 107 X. Termination of the Committee: Distribution of Surplus and Elimination of Deficits 108 A. Termination of Exploratory Committees 108 1. Triggering Events Requiring Dissolution 108 2. Checklist for Dissolving the Exploratory Committee 109 3. Checklist for Forming the Candidate Committee 110 4. Distribution of Surplus Monies from Exploratory Committee to Candidate Committee that Intends to Participate 111 5. Carrying Forward Goods and Services from Exploratory Committee to Candidate Committee 112 6. Exploratory Committee Surplus Distribution Checklist 113 7. Exploratory Committee Deficit 114 8. Exploratory Candidates Deciding Not to Transition into Candidate Committee 114 B. Termination of Candidate Committees 115 1. Timing of Termination 115 2. Sale of Committee Furniture and Equipment 116 3. Distribution of Surplus Funds 117 a. Participating Candidates Who Received Grants 117 b. Participating Candidates Who Did Not Receive Grants 118 4. Treatment of Liabilities (Deficit) 118 5. Uncashed Checks 119 6. Obtaining Bank Records 119 v XI. Compliance and Enforcement 120 A. Potential Pitfalls Regarding Post-Election Activity 120 B. Prepare to Be Reviewed 121 C. Post-Election Review 121 1. Process 121 2. Post-Election Draft Summary of Examination 121 3. Post-Election Final Summary of Examination 122 D. Avoiding Violations 122 E. Points to Remember 122 F. Written Advice 122 1. Opinions of Counsel 123 2. Advisory Opinions 123 3. Declaratory Rulings 123 G. Violations 124 H. Penalties for Failure to File Supplemental Disclosure Statements 124 I. Who May File a Complaint? 125 J. Form of Complaint 125 XII. Glossary 126 vi I. OVERVIEW A. Purpose of this Guide This Guide is intended to clarify and summarize the most important provisions and requirements for participation in the Citizens’ Election Program (the “Program”), Connecticut’s voluntary public campaign financing program. The
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