Chapter 3
AN ACT
The change to the existing
Be It Enacted by the People of the State of
The purpose of this Act
is to restore democracy in
Oregon can make consistent
progress in education, health care, economic development, living wage jobs, and
natural resource issues, only by curtailing the power of private economic
interests to unduly dominate our political process. We must restore fairness in
political campaigns and achieve a government that represents the views and
needs of all Oregonians instead of allowing only a powerful few to call the
tune by providing funds to enable some candidates to overwhelm others.
(1) Findings.
The people, acting in
their legislative capacity, find these facts:
(a) The democratic
process has not functioned properly in
(b) Because
(c) Large contributions
distort the political process and impair democracy, with these adverse effects:
(1) Corrupting public
officials and causing them to take actions that benefit large contributors at
the expense of the public interest;
(2) Causing public
officials to grant special access and accord undue influence to large
contributors;
(3) Significantly
impairing the opportunity for voters to hear from candidates who do not accept
large contributions and for those candidates to communicate with voters; and
(4) Fostering the
appearance of corruption and undermining the public’s faith in the integrity of
elected officials and the political process.
(d) Candidates engage in
the money “arms race” due to their accurate perception that expenditures
influence the outcome of elections. In contests for the
(e)
(f) Candidate campaigns
spent almost $15 million in the 2002 contest for Governor alone, easily
surpassing the $2.4 million spent in 1998, the $6.9 million spent in 1994, and
the $3.2 million spent in 1990. In 2002, each major party candidate spent over
$4 million, and the average spent in the primaries by the four losing candidates
taken seriously by the press was $1.5 million.
(g) Contributions are
given also to obtain access to and the favor of whichever candidate is elected.
In 2002, almost 40% of money contributed to the legislative leadership
political committees came from donors who contributed to both the Republican
leadership committees and to the Democratic leadership committees. Nearly
one-third of contributions to winning
(h) Contributions to and
expenditures for candidate campaigns in excess of those allowed by this Act are
considered to be large contributions and expenditures in
(i) Corporations have
been granted state-conferred advantages for the purpose of economic gain and
the amassing of wealth, including perpetual life, limited liability, and the
issuance of securities. The use of corporate treasury funds for political purposes
distorts the democratic process, threatens the integrity of the elections
process, and overwhelms the voices of ordinary citizens. Corporate spending on
politics does not necessarily reflect public support for the political agenda
of the corporation. Therefore, corporate use of treasury funds for political
purposes should be restricted to the maximum extent allowed by the
(j) Examples of the
undue influence exercised due to large campaign contributions include:
(1) In 2004, the
(2) Enron Corporation
took over PGE in 1997 and in 2001 got from the
(k) Even if corporate
contributions and expenditures were prohibited, corporations could channel
political spending through individuals (in the form of large salaries, bonuses,
or other compensation or gifts) and thereby continue to exercise undue
influence over candidates and public officeholders, who would be aware of the
sources of the funds.
(l) Allowing unlimited
individual contributions accords undue influence to wealthy individuals,
regardless of their sources of wealth, who can use that influence to obtain
access to public officeholders and benefits from government not available to
others. In the 2002 contest for Governor, one individual contributed $415,000
to the Republican candidate and another $125,000 to the
(m) Even if all other
contributions were prohibited or limited, large contributions by candidates to
their own campaigns would also have the adverse effects noted above, because it
would allow candidates with personal wealth to overwhelm the efforts of other
candidates and compel those candidates to become beholden to large contributors
and special interests in order to compete. Statewide campaigns in
(1) Regardless of the
source of wealth, allowing unlimited use of personal funds undermines the goal
of robust public debate by discouraging non-wealthy candidates from competing
for office, thereby depriving voters of the opportunity to support candidates
reflecting a full range of views and experiences.
(2) Candidates should be
banned from loaning money to their own campaigns, because solicitations of
campaign funds to repay the loans would result in direct financial gain for the
candidates.
(n) Contribution limits
can also be circumvented when adults use minors to make additional
contributions. It is thus necessary to further limit campaign contributions and
expenditures by persons under 16 years of age and to prohibit them by persons
under 12 years of age, as such contributions and expenditures are very likely
to be dictated by adults as a means of circumventing the limits.
(o) Candidates should
not be allowed to carry over campaign funds from one election cycle to another,
because the accumulation of such “war chests” distorts and corrupts the
election process by deterring other candidates from competing for public office
and thereby unfairly entrenching incumbents in future elections. One example:
In 2002, incumbent members of the
(p) Reasonable limits on
contributions to political committees and to political parties are also
necessary to avoid the adverse effects of large contributions noted above and
to ensure that contributors cannot evade the limits on contributions to
candidate committees by making unlimited contributions to political committees
and political parties that support or oppose their candidates.
(q) Contributions from
individuals of fifty dollars ($50) or less to small donor committees pose
little or no risk of corruption, because contributions to these committees will
reflect public support for the committee’s political positions and will not
enable the contributors to exercise undue influence over elected officials or
over the results of elections.
(r) In 1994, voters in
(s) When the Measure 9
limits were in effect during the 1996 election cycle, candidates were able to
amass sufficient funds to campaign effectively and have their voices rise to
the level of public notice, using the contributions allowed by Measure 9. A
more recent example shows that the contribution limits in this Act will allow
effective campaigns. In 2004, Tom Potter won the election for Mayor of
(t) Limiting
contributions will encourage candidates to spend more time in direct contact
with voters in their districts and less time raising funds from large
contributors, thus improving their understanding of public needs and policy
solutions.
(u) So-called “independent
expenditures” supporting or opposing one or more candidates must also be
regulated and disclosed, in order to avoid circumvention of the limits on
political contributions. In 2004, for example, these “independent expenditures”
supporting or opposing federal candidates amounted to more than $500 million
and provided conduits for corporations, unions, and wealthy individuals to
circumvent limits on contributions to candidates for federal office.
(v) When campaign
contribution limits were in place in
(w) The effective
exercise of the right to vote requires timely access to understandable
information about contributions and expenditures to influence the outcome of
elections. Therefore, this Act requires:
(1) More effective
reporting of campaign contributions and expenditures, including so-called “independent
expenditure” campaigns, which is particularly necessary in light of Oregon’s
distribution of vote-by-mail ballots weeks prior to election day; and
(2) Effective and prompt
disclosure of the identities of large donors in communications to voters by
independent expenditure campaigns (including the businesses of those donors).
(x) As all levels of
government in the United States are adopting more controls on political
campaign contributions and expenditures, the courts are issuing many new
decisions on whether the variety of new controls are consistent with the United
States Constitution. Drafting and enacting a ballot measure, and completing
judicial review of its provisions through all levels of the courts, takes a
minimum of several years. If any specific limitation or threshold or time
period or age limit in this Act is ultimately found to conflict with the United
States Constitution or with the Oregon Constitution, the public interest will
best be served by (1) swiftly adjusting the conflicting provision so that the
conflict is removed or, if that is not possible, then (2) severing the
conflicting provision so that the remainder of this Act remains fully in
effect.
(y) Under the limits in
this Act, the people of Oregon will have ample opportunities to express their
opinions and level of support for or opposition to candidates; to form and fund
effective organizations to express political views; and to enjoy the freedoms
of speech and association.
(2) Definitions.
Except for the
definitions provided in this section, the definitions in Chapter 260 of
(a) “Business entity”
means any corporation, partnership, limited liability company, proprietorship,
or other form of business organization which creates an entity which is legally
separate from individuals.
(b) “Campaign” means any
communication to voters for the purpose of influencing the outcome of any
contest.
(c) “Candidate” shall
have the meaning provided in Chapter 260, except that it includes a public
office holder against whom a prospective recall petition has been filed and has
not expired pursuant to ORS 249.875.
(d) “Candidate committee”
means any entity or any combination of individuals and/or entities, that
receives a contribution or makes an expenditure under the authority of a
candidate. Every candidate committee shall register with the Secretary of State
prior to receiving a contribution or making an expenditure. A candidate shall
control only one candidate committee.
(e) “Candidate
contribution” means any contribution made to support or oppose the nomination
or election of any candidate or candidates.
(f) “Candidate survey”
means a publication showing the positions of all candidates for a public office
on selected bills, proposals, or issues; provided, that:
(1) The sponsor timely
provides the survey questionnaire and a reasonable time for responding to all
candidates for the office; and
(2) The publication
consists of the questions posed and the responses of all responding candidates
and may include descriptions of the bills or proposals and the positions
thereon of the organization publishing the survey.
(g) “Cash” means
currency and any other means of payment that does not identify the payor on the
written or electronic instrument of payment.
(h) “Contest” means any
electoral contest among one or more candidates for a non-federal public office.
(i) Contributions and
Expenditures.
(1) “Contribution” or “contribute”
includes:
(A) The payment, loan,
gift, forgiving of indebtedness, or furnishing without equivalent compensation
or consideration, of money, services, supplies, equipment or any other thing of
value to or on behalf of, or for reducing the debt of, a candidate, candidate
committee, political committee, or political party; and
(B) Any unfulfilled
pledge, subscription, agreement or promise, whether or not legally enforceable,
to make a contribution.
(2) “Expenditure” or “expend”
includes:
(A) The payment or
furnishing to anyone of money or any thing of value in consideration for any
services, supplies, equipment or other thing of value performed or furnished
for any reason, or the incurring or repayment of indebtedness or obligation,
including the creation of an account payable:
1) For the purpose of
influencing the outcome of any contest; or
2) By or on behalf of,
or for reducing the debt of, a candidate, candidate committee, political
committee, political party, or independent expenditure campaign; and
(B) Any unfulfilled pledge,
subscription, agreement or promise, whether or not legally enforceable, to make
an expenditure.
(3) Any expenditure of
personal funds by a candidate to influence the outcome of the candidate’s
contest constitutes both a contribution to the candidate committee and an
expenditure by the candidate committee.
(4) “Contribution” and “Expenditure”
do not include:
(A) Volunteer personal
services (including those of the candidate) for which no compensation is asked
or given, including unreimbursed travel expenses incidental thereto;
(B) Any bona fide news
story, commentary or editorial distributed through the facilities of any media
organization, including any television or radio station, newspaper, magazine or
other regularly published periodical; provided, that the media organization:
1) Is not paid by any
individual or entity for distributing the news story, commentary or editorial,
apart from normal advertisers;
2) Is not owned or
controlled by one or more candidates, political committees, or political
parties; and
3) Does not distribute
the news story, commentary, or editorial to voters by unsolicited mailings or
other means of distribution not sought by the recipient, including any paid
advertisement in any other medium.
(C) Nonpartisan activity
solely to encourage individuals to vote or to register to vote, without
expressing a preference regarding the outcome of any election;
(D) Communication to its
members, and not to the public, by a membership organization not organized
primarily for the purpose of influencing the outcome of contests, including
communication of an officeholder scorecard or candidate survey; or
(E) Production of an
officeholder scorecard or candidate survey and its distribution by paper or
electronic copies (but not by paid advertising on television or radio) at a
cost of less than twenty thousand dollars ($20,000) for distribution to the
public.
(F) Funds provided to
candidate committees by entities of government pursuant to a system of public
funding.
(j) “Coordinated Expenditure”
means an expenditure coordinated with a candidate, candidate committee,
political committee, or political party (hereinafter “coordinated entity”),
including:
(1) An expenditure made
with the cooperation or with the prior consent of, or in consultation with, or
at the request or suggestion of, the coordinated entity or its agent;
(2) An expenditure for
the production, dissemination, distribution, or publication of any broadcast or
any written, graphic, or other form of political advertising or campaign
communication prepared by or for the coordinated entity or its agent;
(3) An expenditure based
on information, provided to the expender by the coordinated entity or its
agent, about the coordinated entity’s plans, projects, or needs; or
(4) An expenditure by a
person who, in the election cycle during which the expenditure is made:
(A) Has served as a
member, employee, fundraiser, agent, or advisor to the coordinated entity; or
(B) Has received any
form of compensation or reimbursement from the coordinated entity or its agent;
(C) Has retained the
professional services of any person who has provided campaign-related services
to the coordinated entity.
(k) “Dominant
contributor” means any individual or entity which contributes more than five
hundred dollars ($500) during an election period to any candidate committee,
political committee, political party, or independent expenditure campaign.
(l) “Election cycle”
means the period of time between one biennial general election and the next
biennial general election, including any primary or other preliminary elections
to select candidates. For any contest which does not occur at a biennial
general election, “election cycle” means the period of time between an election
at which a candidate is elected and the next election for that same office,
disregarding any intervening primary or nominating election, any recall
election, and any special election called to fill vacancies.
(m) “Election period”
means:
(1) The period beginning
the day after a biennial general election and ending on the day of the next
biennial primary election; and
(2) The period beginning
the day after a biennial primary election and ending on the day of the next
biennial general election; and
(3) For any recall
election:
(A) The period beginning
the day that the prospective recall petition is approved for circulation and
ending on the day that the completed recall petition is filed; and
(B) The period beginning
the day that the recall election is called or declared and ending on the day of
the recall election.
(4) For any special
election called to fill a vacancy, the period beginning the day that the
election is called or declared and ending on the day of the election.
(n) “Electioneering
communication” means any communication (other than a tax-exempt informational
communication) which:
(1) Is distributed
within thirty (30) days before regular ballots are distributed to voters in a
primary election or sixty (60) days before regular ballots are distributed to
voters in a general election or any other election at which a public office is
filled;
(2) Unambiguously refers
to a candidate running in that election or to a political party with at least
one candidate running in that election;
(3) Is distributed so as
to include voters who are eligible to vote for the candidate or for one or more
of the candidates of the political party referenced in subsection (2) above;
(4) Is distributed by
means of payment to any communication medium, including television, radio,
magazine, newspaper, outdoor advertising, direct mail, door-to-door delivery,
or any other medium that receives actual or promised payment from the sponsor
in excess of one thousand dollars ($1,000) for distributing one or more such
communications; and
(5) Either:
(A) Includes the
candidate’s image; or
(B) Refers to the
candidate’s prior or current position on a public policy issue (including
votes, statements, or actions), or the position of the political party of the
candidate, when such position has been raised in any public communication as
distinguishing the candidate from others in the campaign; or
(C) Refers to the
candidate’s personal history or activities, when such subjects have been raised
in any public communication distinguishing the candidate from others in the campaign;
or
(D) Promotes or supports
a candidate or political party or attacks or opposes a candidate or political
party.
(o) “Entity” means a
corporation, limited liability company, labor organization, association, firm,
partnership, joint stock company, club, organization or other combination of
individuals and/or organization which has collective capacity.
(p) “Express advocacy
communication” means any communication to voters expressly advocating the
election or defeat of one or more clearly identified candidates, including but
not limited to expressions such as “vote for,” “vote against,” “elect,” “re-elect,”
“retain,” “return,” “choose,” “defeat,” “reject,” “send home,” “support,” “oppose,”
“should be in office,” “should not be in office,” or “deserves your vote.”
(q) “Independent
expenditure” means an expenditure, by an individual or entity other than a
candidate committee, on express advocacy communication or electioneering
communication that is not a “coordinated expenditure” as defined in this Section
(2).
(r) “Independent
expenditure campaign” means the use of independent expenditures to engage in
express advocacy communication or electioneering communication.
(s) “Individual” means a
citizen or resident alien of the
(t) “Measure committee”
means any entity, or any combination of individuals and/or entities, that
receives a contribution or makes an expenditure in excess of two hundred
dollars ($200) in any calendar year to support or oppose a ballot measure. A
measure committee shall make no contributions or expenditures supporting or
opposing any candidate for public office.
(u) “Membership organization”
means a nonprofit organization having individual members who have paid dues to
join or maintain membership in the organization.
(1) It can be
incorporated or unincorporated but cannot be formed or operated for the purpose
of commercial enterprise.
(2) It can transfer to
one and only one small donor committee not more than forty percent of the dues
paid by each individual member of the organization, with a limit of fifty
dollars ($50) transferred per individual member per calendar year, with such
transfers treated as having been contributed by each individual dues-paying
member
(3) It shall within
thirty (30) days of such transfer notify each dues-paying member of the amount
or percentage of dues transferred. Such notice may be provided by regular mail
or electronic mail to each affected member or by posting the information on an
Internet site. If the amount or percentage of dues transferred is the same for
each member or category of members, the posting may state that amount or
percentage and need not identify any member.
(v) “Officeholder
scorecard” means a publication showing the votes on selected bills or proposals
of all of the members of a government body that takes recorded votes. It can
include descriptions of the bills or proposals and the positions thereon of the
organization publishing the scorecard. It must include the votes of all of the
members of the government body on these bills or proposals.
(w) “Political committee”
means any entity or any combination of individuals and/or entities, that in any
calendar year receives a contribution in excess of two hundred dollars ($200)
or makes an expenditure in excess of one thousand dollars ($1,000) to support
or oppose one or more candidates and/or political parties.
(1) It does not include
a candidate committee or any committee which does not support or oppose one or
more candidates or political parties, such as a measure committee or committee
seeking to place a measure on the ballot (other than a recall measure).
(2) The following shall be
treated as a single political committee: All political committees (except small
donor committees) established, financed, maintained, or controlled by:
(A) For corporations:
the same corporation (including all corporate affiliates and subsidiaries) or substantially
the same group of corporations;
(B) For unions: the same
labor organization unit, at any level, if the unit has authority to make an
independent decision as to which candidates to support or oppose; or
(C) For others,
substantially the same group of individuals or entities or combinations
thereof.
(x) “Political nonprofit
organization” means a nonprofit corporation or association which:
(1) Was formed for the
express purpose of promoting political ideas;
(2) Was not formed by
one or more business entities or labor unions;
(3) Cannot engage in
business activities except those incidental to its political purpose, such as
the sale of campaign buttons;
(4) Has no shareholders
or other individuals or entities affiliated so as to have a claim on its assets
or income;
(5) Cannot serve as a
conduit for contributions or expenditures by corporations, other business
entities or labor unions.
(6) Has not, directly or
indirectly, accepted any donation of money or any thing of value (including
discounts on products or services) from any corporation, other business entity,
or labor union.
(7) Has not received any
payment for providing products or services to corporations, other business
entities, or labor unions.
(y) “Political party”
means an assembly of electors qualified by law to nominate candidates for
election to public office in
(z) “Political party finance
committee” means a political committee maintained by an
(aa) “Prominently
disclose” means that the communication states the following information about
the dominant contributor or the self-funded candidate on all communications
other than small campaign items: name, primary businesses engaged in, and total
contributions and expenditures for the campaign at issue since the most recent
biennial general election, with such statement:
(1) Current to within ten
(10) days of the printing of printed material or within five (5) days of the
transmitting of a video or audio communication; and
(2) Comprehensible to a
person with average reading, vision, and hearing abilities, with any printed
disclosure appearing in type not smaller than 8 points, any video disclosure
remaining readable on the regular screen (not closed captioning) for a
sufficient time to be read by a person with average vision and reading ability,
and with any auditory disclosure spoken at a maximum rate of five words per
second.
(ab) “Public office”
means any state, county, district, city, or other non-federal governmental
office or position that is filled by the votes of electors, not including any
political party office.
(ac) “Small campaign items”
means:
(1) Small items worn or
carried by individuals, such as buttons, pins, stickers, bracelets, and pens;
(2) Signs smaller than 6
square feet;
(3) Any communication
where the required prominent disclosure would violate any federal law or regulation;
or
(4) A distribution of
one hundred (100) or fewer substantially similar pieces of literature.
(ad) “Small donor
committee” means a political committee established to accept only contributions
from individuals and which cannot accept such contributions in amounts
exceeding fifty dollars ($50) per individual per calendar year. The following
shall be treated as a single small donor committee: All small donor committees
established, financed, maintained, or controlled by:
(A) For corporations:
the same corporation (including all corporate affiliates and subsidiaries) or
substantially the same group of corporations;
(B) For unions: the same
labor organization unit, at any level, if the unit has authority to make an
independent decision as to which candidates to support or oppose; or
(C) For others,
substantially the same group of individuals or entities or combinations
thereof.
(ae) “Tax-exempt
informational communication” is a communication that would otherwise be an
electioneering communication but which is undertaken by an organization which:
(1) Has received a
determination letter from the Internal Revenue Service, designating it exempt
from taxation under Internal Revenue Service Code § 501(c)(3), and which has
maintained such status;
(2) Does not “participate
in, or intervene in (including the publishing or distributing of statements),
any political campaign on behalf of (or in opposition to) any candidate for
public office,” as prohibited by Internal Revenue Service Code § 501(c)(3);
and
(3) Spends less than
twenty thousand dollars ($20,000) in any calendar year to distribute such
communications in
(3) Limits on
Contributions relating to Candidates.
(a) No corporation or
labor union shall make any contribution to a candidate committee, political
committee, or political party.
(b) No individual or
entity shall make a contribution to a candidate committee, political committee
or political party, except as specifically allowed in this Act.
(c) No candidate
committee, political committee, political party, or other entity shall accept a
contribution or make a contribution, except from funds obtained from the
sources and in accordance with the contribution limits set forth in this Act.
(d) An individual may
make only the following contributions:
(1) During any election
period, to candidate committees, not more than:
(A) Five hundred dollars
($500) to support or oppose candidates contesting for any particular statewide
public office; and
(B) One hundred dollars
($100) to support or oppose candidates contesting for any other particular
public office.
(2) During any calendar
year, not more than:
(A) Fifty dollars ($50)
to any small donor committee;
(B) Five hundred dollars
($500) to any other political committee;
(C) Two thousand dollars
($2,000) in the aggregate to a political party, including all subdivisions
thereof; and
(D) Two thousand five
hundred dollars ($2,500) in the aggregate to all candidate committees,
political committees (including small donor committees), political parties, and
political nonprofit organizations.
(e) A political
committee (other than a small donor committee or a political party finance
committee) may make only the following contributions:
(1) During any election
period, to candidate committees, not more than:
(A) Two thousand dollars
($2,000) to support or oppose candidates contesting for any particular
statewide public office;
(B) Four hundred dollars
($400) to support or oppose candidates contesting for any other particular
public office.
(2) During any calendar
year, not more than two thousand dollars ($2,000) in the aggregate to a
political party, including all subdivisions thereof.
(f) A small donor
committee may contribute to candidate committees, political committees, and
political parties any amounts contributed to the small donor committee by
individuals in amounts not exceeding $50 per individual per year.
(g) A political party
finance committee may contribute, during any election period, to candidate
committees, not more than:
(1) Fifty thousand
dollars ($50,000) to support or oppose candidates contesting for any particular
statewide public office;
(2) Ten thousand dollars
($10,000) to support or oppose candidates contesting for any other particular
public office.
(h) A contribution to a candidate
shall be deemed a contribution to the candidate’s candidate committee.
(i) No individual under
sixteen (16) years of age shall make:
(1) A contribution in
excess of fifty dollars ($50) per election period to any candidate committee,
political committee, or political party; or
(2) Aggregate
contributions per election period in excess of five hundred dollars ($500).
(j) No individual under
twelve (12) years of age shall make any contributions.
(4) Candidate Personal
Contributions and Expenditures.
(a) A candidate may
contribute to the candidate’s own committee during any election period not more
than:
(1) Fifty thousand
dollars ($50,000), if a candidate for any statewide public office; or
(2) Ten thousand dollars
($10,000), if a candidate for any other public office; and
(3) An additional fifty
percent (50%) of these limits, if the candidate is not the incumbent for the
public office sought.
(b) Once a candidate has
contributed more than $5,000 in the aggregate to the candidate’s own committee
during any election cycle:
(1) The candidate
committee shall report to the appropriate filing officer pursuant to ORS
Chapter 260, within three (3) business days of its receipt, every subsequent
contribution by the candidate during the election cycle; and
(2) Every paid
communication by the candidate committee shall prominently disclose the amount
that the candidate has contributed to the candidate’s committee during the
election cycle.
(c) If for any reason
the limits in Section (4)(a) are not in effect and a candidate contributes more
than the otherwise applicable limit stated in Section (4)(a):
(1) The filing officer
who receives reports under Section (4)(b) shall immediately notify all other
candidates for the same particular nomination or public office; and
(2) All limits on
contributions to candidate committees under Section (3)(d)-(g) shall be
increased for all other candidates seeking the same particular nomination or
public office by the following factor: The amount contributed by the candidate
to the candidate’s committee divided by the limit stated in Section (4)(a) for
that candidate, but not less than a factor of two.
(d) A candidate shall
make no loans to the candidate’s own committee.
(e) If for any reason
subsection (d) above is not in effect, then every loan by a candidate to the
candidate’s own committee outstanding at the close of the election period shall
be considered a contribution and shall not be repaid from committee funds.
(f) All expenditures by
a candidate regarding his or her candidacy shall be deemed a contribution to
the candidate’s committee.
(5) Expenditures by or
Coordinated with Candidates, Political Committees, or Political Parties.
(a) No candidate
committee, political committee, or political party shall expend funds to
support or oppose a candidate, except those collected from the sources and in
accordance with the contribution limits set forth in Section (3) of this Act.
(b) A coordinated
expenditure shall constitute both (1) a contribution to the relevant coordinated
entity by the maker of the expenditure and (2) an expenditure by the relevant
coordinated entity.
(c) A candidate or
political party may seek a determination that an expenditure is a coordinated
expenditure benefitting an opposing candidate or political party by filing a
petition with the Circuit Court of the county in which either candidate resides
or in which the expenditure was made. The court shall schedule the petition for
hearing not later than the third business day after its filing and service upon
the benefitting candidate or party. The courts shall accord such petitions, and
appeals therefrom, precedence on their dockets.
(6) Independent
Expenditures regarding Candidates.
(a) No corporation or
labor union shall make an independent expenditure to support or oppose any
candidate or political party.
(b) No individual or
entity shall make an independent expenditure to support or oppose any candidate
or political party, except as specifically allowed in this Act .
(c) An individual in any
calendar year shall make no independent expenditures in excess of :
(1) Ten thousand dollars
($10,000) in the aggregate; and
(2) An additional amount
not greater than twenty percent (20%) of the amount of candidate personal
contributions reported by another candidate for the same public office pursuant
to Section (4)(b)(1) of this Act.
(d) No individual under
sixteen (16) years of age in any calendar year shall make independent
expenditures in excess five hundred dollars ($500), and no individual under twelve
(12) years of age shall make any independent expenditures.
(e) Political committees
(including small donor committees) and political parties may make independent
expenditures from amounts received in compliance with the contribution limits
of Section (3)(d) of this Act.
(f) A political
nonprofit organization may make independent expenditures from its
organizational treasury; provided, that:
(1) It spends only funds
contributed to the organization by individuals in amounts that comply with the
contribution limits applicable to a political committee;
(2) It reports these
expenditures in compliance with the disclosure requirements of Section (6)(g)
and the reporting requirements of Section (6)(h).
(g) Every communication
funded by an independent expenditure campaign which has spent more than two
thousand dollars ($2,000) since the most recent biennial general election shall
prominently disclose all contributors who have contributed amounts equal to or
more than the fifth largest dominant contributor to the independent expenditure
campaign.
(h) In addition to the
reporting requirements set forth in ORS Chapter 260, an individual or entity
making independent expenditures during any election cycle in excess of the
threshold amount stated in any subsection below shall report to the appropriate
filing officer under ORS Chapter 260 its independent expenditures and the
sources of funding for those expenditures in the same manner and format as a
political committee must report contributions and expenditures pursuant to ORS
Chapter 260. The reports shall identify the candidate(s) each independent
expenditure sought to support or oppose.
(1) An individual or
entity making or obligating such expenditures in excess of two hundred dollars
($200) shall report to the appropriate filing officer on the same schedule
applicable to a political committee under ORS Chapter 260.
(2) An individual or
entity making or obligating such expenditures in excess of one thousand dollars
($1,000) shall report to the appropriate filing officer within five (5)
business days of making or obligating the independent expenditure which causes
this threshold to be exceeded. Subsequent independent expenditures by the same
individual or entity shall again be reported within five (5) business days
after each time its unreported expenditures exceeds this threshold.
(3) If the level of
unreported independent expenditures exceeds one thousand dollars ($1,000)
during the period within 45 days before an election, the individual or entity
shall report to the appropriate filing officer not later than 5 p.m. on the
next business day after the making or obligating of the independent expenditure
which causes this threshold to be exceeded.
(7) Separate Segregated
Political Committee Funds.
Nothing in this Act shall prohibit any corporation, other business
entity, or labor union from establishing or administering a separate,
segregated fund that operates as a political committee; provided, that:
(a) The fund consists
solely of voluntary contributions from the employees, officers, shareholders,
or members of the organization within the limits established by Section (3) of
this Act for contributions by individuals to a political committee;
(b) The fund is
registered as a political committee with the appropriate registrar in the State
of
(c) The corporation,
other business entity, or labor union uses not more than five hundred dollars
($500) per year of treasury funds to create and administer the fund, with such
expenditures reported as a specifically allowed contribution to the political
committee; and
(d) Any solicitation for
contributions directed to employees of a corporation or other business entity
states that there is no required contribution and that the employee’s response
shall not affect the employee’s employment, shall not be provided to the
employee’s supervisors or managers, and shall remain confidential to the extent
allowed by law.
(8) Reporting of
Contributions and Expenditures.
(a) The Secretary of
State shall maintain a system of political campaign contributor handle
registration.
(1) Any individual or
entity may apply for a handle, which shall consist of a simple, unique
combination of letters and numbers for each registrant, such as the individual’s
initials and a number.
(2) The handle
application shall identify:
(A) An individual
applicant by name, residence address, year of birth, occupation, and employer;
or
(B) An entity applicant
by name, type of business entity, business address, business phone number,
business Internet web address (if any), and all types of businesses engaged in.
(3) Any individual who
makes aggregate contributions exceeding five hundred dollars ($500) in any
election cycle shall obtain a handle and provide it to the recipient of any
subsequent contribution by that individual.
(4) Any individual or
entity using a handle shall update the applicable information on file with the
Secretary of State within thirty (30) days of any change to the information.
(b) The Secretary of
State shall accept campaign contribution and expenditure reports in a simple
spreadsheet, database or web-based format that identifies each contribution by
date of contribution and either:
(1) Name, residence
address, year of birth, occupation, and employer of the contributor, or
(2) The contributor’s
handle on file.
Such formats shall not require separately calculated subtotals.
(c) Within five (5)
business days of receipt, the Secretary of State shall report and make
available on the Internet in an interactive database format all contribution
and expenditure reports and all handle registrations. The format shall enable
the user to determine the sources and amounts of reported contributions:
(1) For each candidate
committee, political committee, political party, and independent expenditure
campaign; and
(2) From each
contributor who has contributed at least five hundred dollars ($500) during the
election cycle.
(9) Other Provisions.
(a) No individual or
entity shall make a contribution or expenditure in any name other than that of
the individual or entity which in truth provides the contribution.
(b) No corporation or
other entity or employer shall, directly or indirectly:
(1) Require any employee
or contractor to make any contribution or independent expenditure to support or
oppose any candidate; or
(2) Provide or promise
any benefit or impose or threaten any detriment due to the fact that an
employee or contractor did or did not make such contributions or expenditures.
(c) Within sixty (60)
days after the close of the election cycle for the office sought, the
unexpended funds of a candidate committee at the close of the election cycle
for the office sought shall revert to the State of Oregon to offset the cost of
producing the Voters’ Pamphlet, except for those funds reasonably necessary to
pay the obligations of the committee and to terminate its operations. A
candidate elected to the
(d) If, in the absence
of this Section (9)(d), there would be entered in any court any order impairing
the effectiveness of any provision of this Act on the ground that any of the
numeric limits or thresholds, percentage limits or thresholds, time periods, or
age limits specified in this Act conflict with the United States Constitution
or Oregon Constitution, then we, the electors of Oregon, acting in our legislative
capacity, hereby:
(1) Increase the
conflicting numeric limit or threshold by increments of one hundred dollars
($100) as many times as necessary to render it consistent with the constitution
at issue;
(2) Increase the
conflicting percentage limit or threshold by increments of one percent as many
times as necessary to render it consistent with the constitution at issue;
(3) Increase or decrease
the conflicting time period by increments of one day as many times as necessary
to render that time period consistent with the constitution at issue; and
(4) Decrease the
conflicting age limit by increments of one year as many times as necessary to
render it consistent with the constitution at issue;
A prohibition shall be considered a numeric limit of zero.
(e) If, in the absence
of this Section (9)(e), there would be entered in any court any order impairing
the effectiveness of any part of this Act on the ground that the United States
Constitution or Oregon Constitution requires that any type of individual or
entity be wholly or partially exempt from any of the prohibitions or
limitations in this Act, then we, the electors of Oregon, acting in our
legislative capacity, hereby declare that the provisions of this Act shall be
given a narrowing interpretation so as to avoid invalidation of any provision
of this Act and to preserve its effectiveness to the maximum degree consistent
with the constitutions.
(f) If, on the effective
date of this Act, the Oregon Constitution does not allow limitations on political
campaign contributions or expenditures, this Act shall nevertheless be codified
and shall become effective at the time that the Oregon Constitution is found to
allow, or is amended to allow, such limitations.
(10) Enforcement
provisions.
(a) The provisions of
this Act shall be administered and enforced by the Secretary of State and the
Attorney General.
(b) Each violation of
any provision in this Act shall be punishable by imposition of a civil fine
which is not less than five times, nor more than twenty times, the amount of
the unlawful contribution or expenditure.
(c) Any person subjected
to a violation of Section (7)(d), (9)(b)(1), or (9)(b)(2) shall have a civil
cause of action against the violator and shall, upon proof of violation,
recover a civil penalty of not less than $50,000 per incident of violation.
(d) Any person may file
a written complaint of a violation of any of the provisions of this Act with
the Secretary of State, who shall immediately refer the complaint to an
administrative law judge. The administrative law judge shall hold a hearing on
the complaint within fifteen (15) days and shall render a final decision within
fifteen (15) days of the hearing. The decision shall include any appropriate
order, sanction, or relief authorized by statute. Upon motion, the complainant
or defendant shall be granted extensions of up to thirty (30) days or longer
upon showing of good cause. The decision of the administrative law judge shall
be final and subject to review by the Court of Appeals as an agency decision in
a contested case. The decision shall be enforced by the Secretary of State or
the Attorney General. If neither of them enforces the decision within thirty
(30) days of the decision becoming final, the complainant may bring a civil action
in a representative capacity for the collection of the applicable civil
penalty, payable to the State of
(11) Supersession and
Severability.
The provisions of this Act shall supersede any provision of law with
which they may conflict. For the purpose of determining constitutionality,
every section, subsection, and subdivision thereof of this Act, at any level of
subdivision, shall be evaluated separately. If any section, subsection or
subdivision at any level is held invalid, the remaining sections, subsections
and subdivisions shall not be affected and shall remain in full force and
effect. The courts shall sever those sections, subsections, and subdivisions
necessary to render this Act consistent with the
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The Act set forth above
(Ballot Measure No. 47) was proposed by initiative petition and was approved by
the voters at the regular general election on November 7, 2006. By proclamation
of the Governor dated December 7, 2006, the Act was declared to have received
an affirmative majority of the total number of votes cast thereon and to be in
full force and effect as provided in section 1, Article IV, Oregon Constitution
(i.e., on December 7, 2006). However, on November 17, 2006, the Secretary of
State interpreted section 9 (f) of the Act to mean that the Approved by the
Governor Act is not presently enforceable. That interpretation is the subject
of litigation in the Marion County Circuit Court.
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NOTE: The Legislative Counsel Committee has not
adjusted the format Effective date of the text that was proposed by initiative
petition and approved by the voters.
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