H. B. 2458
(By Delegates Brown, Manuel, Douglas,
Doyle and Petersen)
[Introduced March 3, 1993; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend chapter three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article eight-a, relating
to public financing of election campaigns for governor;
defining certain terms; providing for a voluntary tax check-
off system; setting out application procedures;
qualifications; limiting campaign contributions and
expenditures; providing that the secretary of state certify
eligible candidates and distribute funds to eligible
candidates; limiting the use of campaign grant funds;
allowing for the return of campaign grant funds; providing
for the lawful use of campaign grant funds; requiring a
report on the use of campaign grant funds; and allowing the
use of certain statements regarding campaign grant funds for
loan purposes.
Be it enacted by the Legislature of West Virginia:
That chapter three of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article eight-a, to read
as follows:
ARTICLE 8A. PUBLIC FINANCING OF ELECTION CAMPAIGNS FOR GOVERNOR.
§3-8A-1. Statement of intent and purpose.
The Legislature finds and declares the following:
(a) The enactment of a system of public financing of
election campaigns for governor is an essential means to protect
the integrity of the electoral process and ensure the maintenance
of free government.
(b) It is desirable to encourage the broadest possible
participation in financing campaigns by all citizens of the
state, and to enable candidates to have an equal opportunity to
present their programs to the voters.
(c) Our democratic system of government can be maintained
only if the electorate is informed.
(d) A publicly funded system of financing election campaigns
for governor in this state will encourage full discussion of
issues, provide a fair and equal opportunity for all candidates
for governor to participate in the election process, and reduce
the influence of special interests in election campaigns and the
daily affairs of government.
(e) Public financing provides a neutral source of revenue to
assist candidates in raising sufficient money to communicate
their views and positions adequately to the voters. Publicfinancing provides a level playing field to facilitate
competitive campaigns and promote public discussion of the
issues. By providing public financing of election campaigns, the
potential corrupting influence of special interests and large
contributions is diminished, and candidates can reduce their
reliance on these sources of funding. Public financing reduces
the fund raising advantages of incumbents while allowing all
candidates to devote less time to fund raising and more time to
discussion of the issues.
(f) Public funding of election campaigns permits the state
to regulate the escalating amount of expenditures on political
campaigns, while providing an equal opportunity for candidates to
present their views and to provide for a better informed
electorate.
§3-8A-2. Definitions.
(a) "Fund" means the election campaign fund.
(b) "Grant" means a contribution from the fund.
(c)(1) "Qualifying contribution" means:
(i) A contribution of five hundred dollars or less;
(ii) Made to a candidate;
(iii) By and from a qualified elector residing in this
state;
(iv) Received on or after the first day of January of an
election year in which the recipient is a candidate for office,
or, if a special election, after the date the special election is
called.
(2) A qualifying contribution does not include a loan,
pledge or nonmonetary contribution.
§3-8A-3. Election campaign fund.
(a) Each individual filing an income tax return for any
taxable year who has a tax liability or is entitled to a tax
refund or other payment from the department of tax and revenue
may designate an amount of not more than twenty dollars to be
deposited into the election campaign fund. If individuals filing
a joint return have a tax liability or are entitled to a tax
refund or other payment from the department of tax and revenue,
each individual may make a designation under this section.
(b) A designation does not increase a taxpayer's liability
or decrease a refund or other payment to the individual from the
department of tax and revenue.
(c) The department of tax and revenue shall place on the top
one third of the first page of all tax returns to be filed the
following language:
ELECTION OF
THE GOVERNORI designate $.... (not more than $20.00) to go to
the Governor's Election
CAMPAIGNCampaign Fund.
FUND
FUND NOTE: A designation will not increase the taxes you pay or
reduce your refund or other payment from the
department of tax and revenue.
(d)(1) During a fiscal year which contains an election forgovernor, the Legislature shall, in its final budget, appropriate
from the governor's election campaign fund an amount sufficient
to fully fund all candidates for governor eligible to receive a
grant from the election campaign fund.
(2) The secretary of state shall provide a written estimate
of the amount necessary to fully fund all eligible candidates for
governor no later than the first day of January preceding an
election year.
(3) General revenue moneys may be appropriated to meet any
shortfall in the governor's election campaign fund if the
estimate of the secretary of state clearly indicates a need for
additional funds.
§3-8A-4. Application and withdrawal procedures.
(a) Each candidate for governor shall file a statement of
intent to accept or to reject a grant from the election campaign
fund. The statement shall be filed no later than the deadline
for filing nomination papers.
(b) A candidate for governor who intends to accept a grant
shall swear or affirm that the candidate and the candidate's
authorized agents have complied with and will continue to comply
with all applicable contribution and expenditure limits at all
times.
(c) A candidate for governor shall designate in the
statement of acceptance whether the candidate will accept or
reject a grant in either the primary or the general election. A
candidate may designate both.
(d) A candidate for governor may rescind the statement of
acceptance:
(1) For a primary election grant no later than ten calendar
days after the last date for filing nomination papers; or
(2) For a general election grant no later than ten calendar
days after the primary election.
§3-8A-5. Qualification procedures.
The secretary of state shall approve the payment of a
primary or a general election grant or both a primary election
grant and a general election grant if an eligible candidate for
governor meets all of the following requirements:
(1) The candidate has filed a timely statement of
acceptance.
(2) The candidate is certified to appear on the ballot for
the election for which the grant is sought.
(3) The candidate is opposed by a candidate for the same
office:
(i) Who has qualified to receive a grant; or
(ii) Whose campaign finance reports indicate that the
opposing candidate has received, expended, or has cash on hand of
at least two hundred fifty thousand dollars.
(4) The financial reports filed by or on behalf of the
candidate as of the date of qualification indicate that the
candidate has received qualifying contributions equal to fifty
thousand dollars.
§3-8A-6. Contribution limits.
(a) A candidate for governor, filing a statement of
acceptance, may not receive a contribution or contributions from
the candidate's own funds or from those of the candidate's
immediate family that exceed five thousand dollars.
(b) A candidate for governor, filing a statement of
acceptance, may not receive a contribution or contributions from
a political committee other than a political party committee.
(c) An eligible candidate for governor, filing a statement
of acceptance, may receive a primary election grant, a general
election grant, or both a primary election grant and a general
election grant equal to five hundred thousand dollars for each
election.
(d) An eligible candidate for governor, filing a statement
of acceptance, may voluntarily limit the amount of the grant
received by designating a reduced grant amount in writing:
(1) For a primary election grant, no later than ten calendar
days after the deadline for filing nomination papers; or
(2) For a general election grant, no later than ten calendar
days after the primary election.
§3-8A-7. Expenditure limits.
(a) A candidate for governor who files a statement of
acceptance of a grant from the election campaign fund may not
make a qualified campaign expenditure or qualified campaign
expenditures in excess of one million dollars in the primary
election and one million dollars in the general election.
(b)(1) For the purpose of the expenditure limits, aqualified campaign expenditure made before the last day of the
month in which the primary election is held, shall be considered
a primary election expenditure.
(2) A qualified expenditure made from the first day of the
month following the month in which the primary election is held
through the thirty-first day of December of the general election
year shall be considered a general election expenditure.
(3) Notwithstanding the provisions of subdivisions (1) and
(2) above, in the event that payments are made, but the goods or
services are not used during the period purchased, the payments
shall be considered qualified campaign expenditures for the time
period when they are used or during which benefit is derived from
them. Payment for goods and services used in both time periods
shall be prorated.
(c) A candidate filing a rejection of a grant from the
election campaign fund may file an affidavit agreeing to
voluntarily comply with the applicable contribution and
expenditure limits no later than the deadline for filing
nomination papers. An affidavit filed under this section shall
be binding unless rescinded:
(1) No later than ten calendar days after the nomination
paper filing deadline in the case of primary expenditure limits;
or
(2) No later than ten calendar days after the primary
election in the case of general election expenditure limits.
(d)(1) If a candidate filing a statement of acceptance:
(i) Is opposed by a candidate who has declined to accept a
grant; and
(ii) The opposing candidate does not voluntarily agree to
limit the receipt of contributions and expenditures under section
four of this article; or
(iii) If an independent expenditure is made in an amount
greater than two hundred fifty thousand dollars in support of or
in opposition to a candidate for governor, the expenditure limits
are no longer applicable to all candidates.
(2) If an independent expenditure is made in an amount
greater than two hundred fifty thousand dollars in support of or
in opposition to a candidate for governor, each candidate who has
filed a statement of acceptance of a grant or an affidavit
voluntarily agreeing to abide by spending and contribution
limits, shall be permitted to receive an additional one hundred
thousand dollars for either the primary election or general
election, as appropriate, notwithstanding the contribution limits
otherwise applicable to the election.
(e) In computing applicable expenditure limits, a candidate
or campaign treasurer may exclude the following items:
(1) A contribution or contributions returned to the
contributor;
(2) A loan repayment;
(3) An expense incurred as a direct result of a recount; and
(4) A refund of a deposit paid.
§3-8A-8. Disbursement of funds.
(a) The secretary of state shall immediately review the:
(1) Statements of acceptance;
(2) Nomination papers; and
(3) Financial reports of candidates for governor filing a
statement of intent to accept a grant to determine the
eligibility of a candidate filing a statement of acceptance.
(b) The secretary of state shall certify whether a candidate
is eligible to receive a primary election grant no later than
seven calendar days before the deadline for certifying the
candidate for the primary election ballot.
(c) The secretary of state shall certify whether a candidate
is eligible to receive a general election grant no later than
seven calendar days after the certification of the primary
election results.
(d) A separate determination shall be made for a primary and
a general election grant.
(e) The certification by the secretary of state must
indicate:
(1) Whether a candidate is eligible to receive a grant; and
(2) The amount of grant the candidate is eligible to
receive.
(f) If a candidate who has filed a statement of intent to
accept a grant is not eligible to receive a grant, the
certification must:
(1) State the reasons why the candidate is not eligible to
receive a grant; and
(2) What action, if any, the candidate may take to qualify
for a grant.
(g) The secretary of state shall certify a candidate who
becomes eligible after the deadline in subsections (b) and (c) of
this section, if the candidate qualifies after the deadline, but
before the primary election or general election for which the
funds are sought.
(h) The grant check shall be included with the
certification.
(i) A candidate may file a written request to review the
determination of the secretary of state no later than seven
calendar days after the date of certification.
(j) The amount of the grant may not exceed fifty percent of
the applicable expenditure limit.
§3-8A-9. Use of grant funds.
(a) All grants must be deposited in the candidate
committee's campaign depository account.
(b) Grant funds may be expended only for one or more of the
following:
(1) Purchase of services from a communications medium,
including production costs;
(2) Printing, photography, graphic arts or advertising;
(3) Office supplies;
(4) Postage and other commercial delivery services; or
(5) Repayment of loans secured by a statement of intent to
accept a grant pursuant to section thirteen of this article.
(c) Grant funds may not be expended, directly or indirectly,
for the following items or services:
(1) Purchase of capital equipment;
(2) Purchase of computer software;
(3) Payment of fees for placement of political
advertisements; or
(4) Items or services otherwise prohibited under this
article or the laws of this state.
§3-8A-10. Return of grant funds.
(a)(1) Grant funds disbursed under this section remain the
property of the state until disbursed or encumbered for lawful
campaign purposes.
(2) Grant funds that are not spent or unencumbered by a
candidate on the date after the election in which the candidate
participates revert to the state. A deposit or refund derived
from grant funds that are received by a candidate after the day
of the election in which the candidate participates shall revert
to the state. All reversions shall be returned to the secretary
of state who shall deposit the money in the fund.
(b) Return of grant funds after the withdrawal date set
forth in section four of this article does not remove applicable
contribution and expenditure limits.
§3-8A-11. Lawful use of grant funds.
(a) For a purpose other than to advance the candidacy by
lawful means of the specific candidate or candidates who qualify
for the grant, a person may not:
(1) Expend;
(2) Authorize the expenditure of; or
(3) Incur an obligation to expend a grant.
(b) After the date of an election where the grant is
returnable to the state under section ten of this article, a
person may not:
(1) Expend;
(2) Authorize the expenditure of; or
(3) Incur an obligation to expend a grant.
(c) If the candidate violates the pledge required under
section four of this article, a candidate may not:
(1) Expend;
(2) Authorize the expenditure of; or
(3) Incur an obligation to expend a grant.
(d) A person may not prepare or transmit to the secretary of
state evidence that purports to demonstrate the amount or purpose
for which a grant has been used if such evidence specifies an
amount or purpose for which a payment is received other than the
true amount or purpose.
§3-8A-12. Proof of payment.
(a) The candidate or the candidate's campaign treasurer
shall deliver or transmit to the secretary of state sufficient
proof of payment of all disbursements made from grant funds no
later than the due date for the next campaign finance report
occurring at least thirty days after the election in which the
candidate received the grant.
(b) The secretary of state shall determine what constitutes
sufficient proof of payment and shall promulgate:
(1) Procedures;
(2) Reporting forms; and
(3) Administrative rules; necessary to implement this
responsibility.
(c) The secretary of state shall conduct a random audit of
the accounts and records of a candidate filing a statement of
intent to accept a grant.
§3-8A-13. Miscellaneous provisions.
(a) A candidate or a candidate's treasurer may use the
candidate's statement of intent to accept a grant as security for
a loan made for campaign purposes from an institution that
ordinarily makes loans in the course of its business.
(b) To the extent that proceeds of a loan obtained under the
provisions of subsection (a) of this section are used for a
purpose set forth in section nine of this article, repayment of
the loan may be made from grant funds.
NOTE: The purpose of this bill is to establish a system to
provide public financing of election campaigns for governor. The
bill allows taxpayers to designate up to twenty dollars on tax
returns to be used to establish a public campaign fund to be used
by eligible candidates in campaigns for governor. To qualify as
an eligible candidate, the bill requires that a candidate receive
not less than fifty thousand dollars in qualifying contributions
from other sources in addition to meeting other campaign
standards. The bill requires an eligible candidate for governor
to swear and affirm to abide by contribution and expenditure
limits. Expenditure limits are set at one million dollars in the
primary election and one million dollars in the general election. An eligible candidate may receive five hundred thousand dollars
from the fund for each election. The bill also provides that the
secretary of state certify eligible candidates and issue grant
moneys from the fund.
Article eight-a is new; therefore, strike-throughs and
underscoring have been omitted.