SPONSOR:

Sen. Adams & Rep. Oberle

Sens. Blevins, Bunting, Marshall & Sokola; Reps. Lee, Spence, B. Ennis, Gilligan, Hall-Long & Van Sant

DELAWARE STATE SENATE

142nd GENERAL ASSEMBLY

SENATE BILL NO. 114

AN ACT TO AMEND TITLE 15 OF THE DELAWARE CODE TO PROVIDE FOR GREATER DISCLOSURE IN DELAWARE ELECTION CAMPAIGNS.

WHEREAS, Delaware voters have a legitimate interest in the identities of the persons and entities that are subsidizing the campaigns of Delaware political candidates; and

WHEREAS, disclosure of the identities of campaign donors will foster the type of open political process that is a hallmark of successful democratic systems; and

WHEREAS, disclosure of the identities of campaign donors will allow the state to more vigorously and accurately enforce its campaign contribution limit statutes; and

WHEREAS, the spread of anonymous ads in election campaigns in Delaware and around the country has distorted the political process, and may permit some candidates to evade the intent of statutory contribution limits;

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 8002, Title 15 of the Delaware Code, by deleting subsection (10) in its entirety and replacing it with the following:

"(10) ‘Independent expenditure’ means any expenditure made by any individual or other person (other than a candidate committee or a political party) which (a) is made without cooperation or consultation with any candidate, or any committee or agent of such candidate, (b) is not made in concert with, or at the request or suggestion of, any candidate or any committee or agent of such candidate, and (c) either (i) expressly advocates the election or defeat of a clearly identified candidate or (ii) promotes or supports a candidate for an office or attacks or opposes a candidate for an office and is suggestive of no plausible meaning other than an exhortation to vote for or against a specific candidate."

Section 2. Amend § 8002, Title 15 of the Delaware Code, by deleting subsection (12) as found therein, and replacing it with the following:

"(12) ‘Political committee’ means any organization or association, whether permanent or created for the purposes of a specific political campaign, which accepts contributions or makes expenditures (including in-kind expenditures), and has one or more of the following characteristics:

    1. Is controlled by a candidate;
    2. Is a political party or is controlled by a political party;
    3. Has as a major purpose to support or oppose the nomination or election of one or more clearly identified candidates. Supporting or opposing the election of clearly identified candidates includes supporting or opposing the candidates of a clearly identified political party. An entity is rebuttably presumed to have as a major purpose to support or oppose the nomination or election of one or more clearly identified candidates if it contributes or expends during an election period more than three thousand dollars ($3,000). The presumption may be rebutted by showing that the contributions and expenditures giving rise to the presumption were not a major part of activities of the organization during the election cycle."

Section 3. Amend §8006, Title 15, Delaware Code, by adding a new subsection (c) to read as follows:

"(c) No political committee which has received 25 percent or more of its contributions from other political committees since the last general election may make a contribution to another political committee, nor may a political committee accept such a prohibited contribution. Political committees other than candidate committees shall have an affirmative obligation to inform potential contributors of this subsection and to keep accurate internal records necessary to comply with this subsection."

Section 4. Amend § 8012, Title 15 of the Delaware Code, by deleting subsection (e) as found therein and substituting in lieu thereof a new subsection (e) to read as follows:

"(e) A corporation, partnership, or other entity (including a political committee) which makes a contribution to a political committee shall notify the receiving political committee in writing of the names and addresses of all persons who, directly or otherwise, own a legal or equitable interest of 25 percent or greater (whether in the form of stock ownership, percentage of partnership interest, liability for the debts of the entity, entitlement to the profits from the other entity or other indicia of interest) in such corporation, partnership or other entity, or that no such persons exist. A person who has contributed 25% or more of a political committee’s total contributions since the last general election at the time of that political committee’s contribution shall be considered to own a legal or equitable interest of 25 percent or greater in the political committee. The political committee receiving a contribution may rely on such notification, and should the notification provided by the representative of the entity be inaccurate or misleading, the person or persons responsible for the notification, and not the political committee which received the contribution, shall be liable therefore. A ratable portion of the contribution by the entity shall be deemed to be a contribution under this chapter to the receiving political committee by each person who owns a 25 percent or greater interest in the entity, shall be included within the limit imposed by this Section on individual contributions, and shall be so included in the reports filed by the candidate committee with the Commissioner under Section 8030 of this Title. Political committees other than candidate committees shall have an affirmative obligation to inform potential contributors of this subsection and to keep accurate internal records necessary to comply with this subsection."

Section 5. Amend § 8023, Title 15, Delaware Code, by deleting subsection (a) and replacing it with the following:

"(a) All campaign literature or advertising paid for by independent expenditures by political committees, including print ads with a surface of 30 square inches or more, radio advertising, and television advertising, shall prominently disclose the name of any political committee(s) that paid for the advertising or literature. If 25% or more of a political committee’s contributions since the last general election before the time that the literature or advertising is reserved have come from one person, such literature or advertising shall also disclose the identity of each such person(s)."

Section 6. Amend § 8030(d), Title 15, Delaware Code, by deleting paragraph (4) as found therein and replacing it with the following:

"(4) Name and address of each political committee from which the political committee received, or to which the political committee made, any transfer of funds, together with the amounts and dates of all transfers, no matter what the amount, and the identity of each person identified pursuant to Section 8012(e) as having a 25% or greater holding in a contributing political committee."

Section 7. If any provision of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and, to that end, the provisions of this Act are declared to be severable.

Section 8. This Act shall be effective retroactive to the date of its introduction in the Delaware State Senate.

SYNOPSIS

This legislation makes a number of important reforms in Delaware’s campaign finance statute, all of which are designed to increase the amount of information that Delawareans have about who is funding campaigns in this State. Among the specific changes:

  1. The Act changes the definition of "independent expenditure" to include ads which attack candidates for office and are susceptible of no plausible meaning other than as an exhortation to vote against the attacked candidate.
  2. The Act expands the definition of regulated "political committees" to include advocacy groups whose major purpose is the election or defeat of political candidates.
  3. The Act prevents political committees from concealing double contributions by creating "shell" political committees.
  4. The Act requires disclosure of the names of any person who has paid for 25% or more of a political ad paid for by an outside political committee set up for the purpose of electing or defeating candidates.
  5. The Act requires disclosure of the name of any person who has paid for 25% or more of the revenues of a political committee that makes a political donation.

Author: Senator Adams