H. B. 4549


(By Mr. Speaker, Mr. Chambers, and Delegate Staton)
(Introduced February 22, 1994; referred to the
Committee on the Judiciary.)




A BILL to amend and reenact section five-f, article eight, chapter three of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to further amend said article by adding thereto a new section, designated section eight-a, all relating to the financing of political campaigns.
Be it enacted by the Legislature of West Virginia:

That section five-f, article eight, chapter three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and to further amend said article by adding thereto a new section, designated section eight-a, all to read as follows:
§ 3-8-5f. Loans to candidates, organizations or persons for election purposes; limitation on recovery of certain loans.

(a) Every candidate, financial agent, person or association of persons or organization advocating or opposing the nomination or election of any candidate or the passage or defeat of any issue or item to be voted upon, who receives money or any other thing of value as a loan toward election expenses shall execute, in writing, an agreement with the individual, lending institution or organization making the loan. Such The agreement shall state the date and amount of the loan, the terms, including interest and repayment schedule, and a description of the collateral, if any, and the full names and addresses of all parties to the agreement. A copy of the agreement shall be filed with the financial statement next required after the loan is executed.

(b) (1) For purposes of this chapter, a loan made to a candidate or a candidate committee is considered a contribution from the maker and the guarantor of the loan;
(2) The proceeds of a loan made to a candidate which meet the requirements of this subdivision are not subject to contribution limits if the loan is:
(A) By a commercial lending institution;
(B) Made in the regular course of business;
(C) Made on the same terms ordinarily available to members of the public; and
(D) One which is secured or guaranteed.
(c) The following limitations apply to the repayment of loans made by a candidate or the candidate's immediate family:
(1) A candidate for governor, or a member of the candidate's immediate family who has made a loan to the candidate's committee shall not recover more than fifty thousand dollars in the aggregate for such loans outstanding after the election.
(2) A candidate for nonfederal state-wide elective office other than governor, or a member of the candidate's immediate family who has made a loan to the candidate's committee shall not recover more than twenty-five thousand dollars in the aggregate for such loans outstanding after the election.
(3) A candidate for office other than those specified above, or a member of the candidate's immediate family who has made a loan to the candidate's committee shall not recover more than ten thousand dollars in the aggregate for such loans outstanding after the election.
(d) A campaign debt incurred on behalf of a candidate or candidate committee shall be considered a loan to the candidate or candidate committee subject to the repayment limitation of this subsection if the credit was extended based upon the personal reputation, standing in the community or wealth of the candidate, of a member of the candidate's immediate family, or of one or more of the members of the candidate's campaign committee.
The balance of debt shall be the responsibility of any consigner of the note. Any outstanding balance of a loan which is discharged shall be considered a contribution to the candidate.
 ARTICLE 8. REGULATION AND CONTROL OF ELECTIONS.
§ 3-8-8a. Limitation on use of political action committee contributions.

(a) No individual who is a candidate for state or local office may receive and accept more than fifty percent of the value of the maximum disbursement level, as described in the code of fair campaign practices contained in section three, article eight-a of this chapter, from political action committees during any primary and general election campaign.

(b) For purposes of this section, "political action committee" means:
(1) Any committee, club, association, or other group of persons which receives contributions aggregating in excess of one thousand dollars during a calendar year or which makes expenditures aggregating in excess of one thousand dollars during a calendar year; or
(2) Any separate segregated fund established under the provisions of paragraph (C), subdivision (1), subsection (b) section eight, article eight of this chapter.
(c) For purposes of this section, "political action committee" does not include:
(1) A candidate committee; or
(2) Any local committee of a political party.

NOTE: The purpose of this bill is to provide for limitations on lending to political campaigns and on contributions by political action committees to political candidates.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added. Section eight-a is new, and therefore any underscoring has been eliminated.