BEFORE THE OFFICE OF THE COMMISSIONER OF POLITICAL PRACTICES

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 44.11.226, 44.11.227, 44.11.302, and 44.11.605 pertaining to campaign finance reporting, disclosure, and practices

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NOTICE OF PROPOSED AMENDMENT   NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

            1. The Office of the Commissioner of Political Practices proposes to amend the above-stated rules.

2. The Office of the Commissioner of Political Practices will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Office of the Commissioner of Political Practices no later than 5:00 p.m. on September 29, 2017, to advise us of the nature of the accommodation that you need. Please contact Jaime MacNaughton, Office of the Commissioner of Political Practices, P.O. Box 202401, Helena, Montana, 59620-2401; telephone (406) 444-2942; fax (406) 444-1643; or e-mail CPPRules@mt.gov. 

3.  The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:  

44.11.226  LIMITS ON RECEIPTS FROM POLITICAL COMMITTEES 

(1)  Based on the calculation specified in 13-37-218, MCA, limits on total combined contributions from political committees other than political party committees to candidates for the state legislature are as follows:

(a)  a candidate for the state house of representatives may receive no more than $1,700 $1,750;

(b)  a candidate for the state senate may receive no more than $2,800 $2,850.

(2)  These limits apply to total combined receipts for the entire election cycle of 2016 2018.

(3)  Pursuant to 13-37-218, MCA, in-kind contributions must be included in computing these limitation totals.

 

AUTH:  13-37-114, 13-37-218, MCA

IMP:  13-37-218, MCA

 

REASON:  The COPP is amending this rule to reflect the inflation factor change in aggregate contribution limits for candidates from political committees for the 2018 election cycle.  

 

44.11.227  LIMITATIONS ON INDIVIDUAL AND POLITICAL PARTY CONTRIBUTIONS TO A CANDIDATE (1)  Pursuant to the calculation specified in 13-37-216, MCA, limits on total combined contributions by a political committee, other than a political party committee, or by an individual to candidates are as follows:

(a)  candidates filed jointly for governor and lieutenant governor may receive no more than $660 $680;

(b)  a candidate for other statewide office may receive no more than $330 $340;

(c)  a candidate for all other public offices may receive no more than $170 $180.

(2)  Pursuant to the operation specified in 13-37-216, MCA, limits on total combined contributions from political party committees to candidates are as follows:

(a)  candidates filed jointly for governor and lieutenant governor may receive no more than $23,850 $24,500;

(b)  a candidate for other statewide offices may receive no more than $8,600 $8,850;

(c)  a candidate for Public Service Commission may receive no more than $3,450 $3,550;

(d)  a candidate for senate may receive no more than $1,400 $1,450;

(e)  a candidate for all other public offices may receive no more than $850 $900.

(3) and (4) remain the same. 

 

AUTH:  13-37-114, MCA

IMP:  13-37-216, 13-37-218, MCA

REASON: The COPP is amending this rule to reflect the inflation factor change in aggregate contribution limits to candidates from individuals or political parties for the 2018 election cycle.  The law is currently under review by the 9th Circuit Court of Appeals in Lair v. Motl.  Section (1) contribution limits will only be enforced if the 9th Circuit upholds the State′s individual and political committee contribution limits as enacted by citizen initiative in November 1994. Section (2) political party contribution limits will be effective the day after publication of the adoption notice. 

            44.11.302  STATEMENTS AND REPORTS, FILING (1) through (1)(b) remain the same.

(c)  Except as provided in (1)(d) and (2), the following candidates shall also file all reports electronically:

(i)  candidates for the legislature;

(ii)  candidates for the public service commission; and

(iii)  candidates for district court judge.

(d)  Candidates listed in (c) shall file all reports electronically only if the total amount of contributions received or the total amount of expenditures made exceeds $500, for all elections in a campaign, excluding the filing fee paid by an individual.

(2)  As provided by 13-37-226, MCA, electronic filing is mandatory for those candidates listed in (1) except for those qualifying under (1)(d). Candidates listed in (1)(c) may submit a written request for a waiver from the requirement that reports be filed electronically. Electronic filing is mandatory for committees who are required to file electronically by statute. Committees who are required to file electronically by this rule, may apply for a waiver. The commissioner may provide a waiver if the candidate or committee establishes that they cannot file electronically for reasons such as they do not have reasonable access to the technology necessary to file electronically.

(3) and (4) remain the same. 

 

AUTH:   13-37-114, MCA

IMP:   13-37-117, 13-37-225, 13-37-226, 13-37-231, MCA 

REASON: The 2017 Legislature passed SB 3 which makes candidate filing fees a campaign expenditure, and the source of the contributions which funded the expenditure subject to reporting and disclosure. Including candidate filing fees as a campaign expenditure makes the automatic electronic filing waiver found in (1)(d) irrelevant in all PSC and District Court Judge elections, and legislative candidates can request a waiver under (2). 

44.11.605 ELECTIONEERING COMMUNICATION (1) through (3)(c) remain the same.

(d) any other regular or normal communication by a local government or a state agency that includes information about a candidate, ballot issue, or election. A local government or state agency informational communication concerning a bond ballot issue by local government or a state agency is not a regular and normal communication and is subject to reporting and disclosure as an electioneering communication. For purposes of this rule the terms local government and state agency shall have the same meaning as the definitions of the terms in 2-2-102, MCA.

(4) through (8) remain the same.

 

AUTH: 13-37-114, MCA

IMP: 13-1-101, 13-37-225, 13-37-226, 13-37-229, 13-37-232, MCA 

REASON: Confusion has arisen for state and local agencies regarding whether informational ballot issue expenditures are required to be reported and disclosed under the law and rule. Examples of regular and normal communication would be a local election official posting a sample of the upcoming ballot for members of the public to access, the location of voting places, and the date and times the polls will be open. The language of the rule has been amended to clarify that when a state or local agency expends funds to communicate information to the public regarding an issue on the ballot, the communication is susceptible to no reasonable interpretation other than as an electioneering communication under (1), (3)(b) and (5) and is subject to reporting and disclosure.  

            4. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Jaime MacNaughton, Office of the Commissioner of Political Practices, 1209 Eighth Ave., P.O. Box 202401, Helena, Montana, 59620-2401; telephone (406) 444-2942; fax (406) 444-1643; or e-mail CPPRules@mt.gov, and must be received no later than 5:00 p.m., October 6, 2017. 

5. If persons who are directly affected by the proposed actions which to express their data, views, or arguments orally or in writing at a public hearing, they must make a written request for a hearing and submit this request along with any written comments to Jaime MacNaughton at the above address no later than 5:00 p.m., October 6, 2017. 

6. If the agency receives requests for a public hearing on the proposed actions from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed actions; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an associating having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those directly affected has been determined to be 143 persons based on the number of candidates in the 2016 and 2017 election cycles (1,435). 

7. The COPP maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 4 above or may be made by completing a request form at any rules hearing held by the COPP. 

8. For ARM 44.11.302, the bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. On July 27, 2017, Sen. Kary was contacted by e-mail and letter and on August 4, 2017 by phone by Jaime MacNaughton regarding SB 3. The proposed rule is not contrary to the primary sponsor's comments as received by the COPP pursuant to 2-4-110(2)(e), MCA.  For ARM 44.11.226, 44.11.227, and 44.11.605, the bill sponsor contact requirements of 2-4-302, MCA, do not apply. 

9. With regard to the requirements of 2-4-111, MCA, the COPP has determined that the amendment of the above-referenced rules will not significantly and directly impact small businesses.

 

/s/ Jaime MacNaughton                 /s/ Jeffrey Mangan             

Jaime MacNaughton                      Jeffrey Mangan

Rule Reviewer                                Commissioner of Political Practices

                                                       Office of the Commissioner of Political Practices

           

Certified to the Secretary of State August 28, 2017.