75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1323
 
                         House Bill 3404
 
Sponsored by Representative CANNON
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Establishes Voter Owned Elections Fund to provide public
financing to candidates for certain public offices. Requires
candidates who receive public financing to comply with
contribution and expenditure limitations. Establishes Voter Owned
Elections Commission to administer fund. Continuously
appropriates moneys in fund to commission to distribute to
candidates.
 
                        A BILL FOR AN ACT
Relating to the public financing of campaigns for state public
  offices; and appropriating money.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 1 to 14 of this 2009 Act are added to
and made a part of ORS chapter 260. + }
  SECTION 2.  { + As used in sections 1 to 14 of this 2009 Act:
  (1) 'Certified candidate' means a candidate who has received
public financing certification under section 4 of this 2009 Act.
  (2) 'Election period' means the primary and general election
periods during which candidates may receive public financing.
  (3) 'General election period' means the period of time between
September 1 and the day on which the general election is held.
  (4) 'Nonparticipating candidate' means a candidate who is not
receiving public financing under sections 3, 4, 5 and 6 of this
2009 Act.
  (5) 'Primary election period' means the period of time between
the date established by the Voter Owned Elections Commission
under section 11 of this 2009 Act and the date on which the
primary election is held.
  (6) 'Same office' means:
  (a) The office of the:
  (A) Governor;
  (B) Secretary of State;
  (C) Attorney General;
  (D) State Treasurer;
  (E) Commissioner of the Bureau of Labor and Industries;
  (F) Superintendent of Public Instruction; or
  (G) Supreme Court Judge;
  (b) The seat of the legislative district for which a candidate
for:
  (A) State Senator is campaigning; or
  (B) State Representative is campaigning; or
  (c) Any other individual statewide office that the commission
designates as an office for which candidates may receive public
financing when they are campaigning for that office. + }
  SECTION 3.  { + (1) The Voter Owned Elections Commission shall
draw funds from the Voter Owned Elections Fund and distribute
those funds to candidates who have received public financing
certification under section 4 of this 2009 Act.
  (2) For a primary election period, the commission by rule shall
determine the date on which it will distribute funds to certified
candidates. For a general election period, the commission shall
distribute funds to certified candidates on September 1.
  (3) The commission shall distribute an equal amount of funds to
each certified candidate running for the same office during the
same election period. The commission by rule shall determine the
amount of funds that it will distribute to certified candidates.
  (4) During a calendar year, the commission may not draw from
the fund an amount that exceeds $5 times the number of Oregon
personal income tax returns that were filed during the previous
calendar year.
  (5) The commission may use up to 10 percent of the amount
described in subsection (4) of this section to administer the
fund and enforce sections 4, 5 and 6 of this 2009 Act. Any
portion of the 10 percent that the commission does not use for
administrative or enforcement purposes must remain in the fund
for the remainder of the calendar year.
  (6) The commission may use up to five percent of the amount
described in subsection (4) of this section to educate electors
pursuant to section 11 of this 2009 Act. Any portion of the five
percent that the commission does not use for educating electors
must remain in the fund for the remainder of the calendar
year. + }
  SECTION 4.  { + (1) Candidates for the following offices are
eligible to receive public financing certification:
  (a) State Representative, state Senator, Governor, Secretary of
State, Attorney General, State Treasurer, Commissioner of the
Bureau of Labor and Industries, Superintendent of Public
Instruction and Supreme Court Judge; and
  (b) A statewide office that the Voter Owned Elections
Commission designates as an office for which candidates may
receive public financing when they are campaigning for that
office.
  (2) To receive public financing certification, a candidate,
before the beginning of the election period for which the
candidate seeks public financing, must:
  (a) Obtain the number of qualifying contributions that the
commission requires by rule pursuant to section 11 of this 2009
Act. A contribution is a qualifying contribution if:
  (A) The contributor contributes an amount that does not exceed
$5;
  (B) The contributor does not exchange the contribution for
anything of value;
  (C) The contributor does not make, during the same election
period, more than one contribution to the campaign of the
candidate who receives the contribution; and
  (D)(i) The candidate is running for the office of state
Representative or state Senator and the contributor is registered
to vote in the electoral district of the office for which the
candidate is running at the time that the contributor makes the
contribution; or
  (ii) The candidate is running for a statewide office and the
contributor is registered to vote in this state at the time that
the contributor makes the contribution.
  (b) Submit to the commission a list of persons who made a
qualifying contribution to the candidate's campaign. The list
must record:
  (A) The name of each contributor;
  (B) The phone number or electronic mail address of each
contributor; and
  (C) The county in which each contributor is registered to vote.
  (c) File with the commission and the Secretary of State a
statement of contributions and expenditures as described in ORS
260.083.
  (d) File a public financing application with the commission.
In the application, the candidate shall certify under oath that
the candidate agrees to the contribution and expenditure
limitations that are required by section 5 of this 2009 Act. The
commission shall determine the other contents of the application
by rule.
  (e) Meet any other requirement that the commission requires by
rule. + }
  SECTION 5.  { + (1) After a candidate receives public financing
certification under section 4 of this 2009 Act, a candidate:
  (a) Shall accept only qualifying contributions, as described in
section 4 of this 2009 Act, during election periods.
  (b) May not expend personal funds for the purpose of
campaigning in an amount that exceeds:
  (A) $500 if the candidate is running for the office of state
Representative or state Senator; or
  (B) $1,000 if the candidate is running for a statewide office.
  (c) May not expend an amount of funds during an election period
that exceeds the amount of funds that the Voter Owned Elections
Commission distributes to the candidate under section 3 of this
2009 Act, except that a candidate may expend in excess of that
amount:
  (A) Any amount of qualifying contributions that the candidate
receives pursuant to paragraph (a) of this subsection; and
  (B) Personal funds pursuant to paragraph (b) of this
subsection.
  (d) Shall return all unspent public financing funds to the
Voter Owned Elections Fund no later than 30 days after an
election period, except for funds that are necessary to pay the
unpaid bills for campaign expenditures that the candidate made
during the election period.
  (2) The commission by rule may require a candidate to submit to
the commission documentation of campaign contributions and
expenditures, including copies of campaign-related receipts,
books, records and accounts, to ensure that candidates who
receive public financing are in compliance with the requirements
of this section.
  (3) If the commission reasonably believes that a candidate is
not in compliance with the requirements of this section, the
commission may conduct an audit of the candidate's
campaign-related receipts, books, records and accounts. + }
  SECTION 6.  { + (1) During an election period, if a statement
of expenditures filed pursuant to ORS chapter 260 establishes
that a candidate who is not receiving public financing under
sections 3, 4, 5 and 6 of this 2009 Act is expending more funds
than the Voter Owned Elections Commission distributed to a
candidate who received public financing certification, and if the
nonparticipating candidate and the certified candidate are
running for the same office, the commission, if the commission
has sufficient funds, shall distribute additional funds to each
certified candidate running for that same office in an amount
that equals the difference between the expenditures of the
nonparticipating candidate and the amount distributed to each of
the certified candidates.
  (2) During an election period, if two or more nonparticipating
candidates are each expending more funds than the commission
distributed to a certified candidate running for the same office,
the commission, if the commission has sufficient funds, shall
distribute additional funds to each certified candidate running
for that same office in an amount that equals the difference
between the expenditures of the nonparticipating candidate who is
expending the most funds and the amount distributed to each of
the certified candidates.
  (3) For purposes of this section, the commission shall
consider:
  (a) An independent expenditure made in support of a
nonparticipating candidate as an expenditure of the
nonparticipating candidate.
  (b) An independent expenditure made in opposition to a
nonparticipating candidate as part of the amount that the
commission initially distributed to a certified candidate.
  (c) An independent expenditure made in support of a certified
candidate as part of the amount that the commission initially
distributed to the certified candidate.
  (d) An independent expenditure made in opposition to a
certified candidate as an expenditure of a nonparticipating
candidate. + }
  SECTION 7.  { + (1) The Voter Owned Elections Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Voter Owned Elections Fund
shall be credited to the fund. All moneys in the fund are
continuously appropriated to the Voter Owned Elections Commission
for the purpose of administering sections 1 to 15 of this 2009
Act.
  (2) The fund consists of moneys appropriated to the fund by the
Legislative Assembly and moneys that the Voter Owned Elections
Commission collects pursuant to the imposition of civil penalties
under section 14 of this 2009 Act.
  (3) To facilitate the financing of the fund, the commission
shall:
  (a) Estimate the expenses that it will incur during a biennium
in carrying out its duties;
  (b) Determine the amount of public financing funds that
certified candidates will need to conduct competitive campaigns
for each election period that occurs during a biennium; and
  (c) Report its findings annually to the Governor and to the
Legislative Assembly. + }
  SECTION 8.  { + (1) There is established a Voter Owned
Elections Commission consisting of five members appointed by the
Governor.
  (2) The term of office of a member is four years, but a member
serves at the pleasure of the Governor. Before the expiration of
the term of a member, the Governor shall appoint a successor
whose term shall begin on January 1. A member is not eligible for
reappointment. If there is a vacancy for any cause, the Governor
shall make an appointment to become immediately effective for the
unexpired term.
  (3) The appointment of a member to the commission is subject to
confirmation by the Senate in the manner prescribed in ORS
171.562 and 171.565.
  (4) Members of the commission must be registered to vote in
this state and must never have been appointed or elected to, or a
candidate for, a public office. The commission may not have more
than two members who belong to the same political party.
  (5) A member of the commission is entitled to compensation and
expenses as provided in ORS 292.495. + }
  SECTION 9.  { + Notwithstanding the term of office specified by
section 9 of this 2009 Act, of the members first appointed to the
Voter Owned Elections Commission:
  (1) Two members shall serve for terms ending January 1, 2014.
  (2) One member shall serve for a term ending January 1, 2013.
  (3) One member shall serve for a term ending January 1, 2012.
  (4) One member shall serve for a term ending January 1,
2011. + }
  SECTION 10.  { + (1) The Voter Owned Elections Commission shall
select one of its members as chairperson and another as vice
chairperson for an annual term. The commission by rule shall
determine the duties and powers of the chairperson and the vice
chairperson.
  (2) A majority of the members of the commission constitutes a
quorum for the transaction of business.
  (3) The commission shall meet at least once every month at a
place, day and hour determined by the commission. The commission
may also meet at other times and places specified by the call of
the chairperson or of a majority of the members of the
commission. + }
  SECTION 11.  { + (1) The Voter Owned Elections Commission shall
establish by rule:
  (a) The required number of qualifying contributions, as
described in section 4 of this 2009 Act, for the primary and
general election periods for each type of office for which
candidates may receive public financing when they campaign for
that office. If the commission determines that requiring
qualifying contributions will inhibit the general election
campaigns of candidates who received public financing
certification for the primary election period, the commission may
waive the qualifying contributions requirement for the general
election period.
  (b) The date on which the primary election period begins.
  (c) Bookkeeping and reporting requirements to ensure that
candidates who receive or who seek to receive public financing
comply with sections 4, 5 and 6 of this 2009 Act.
  (d) Procedures for enforcing sections 4, 5 and 6 of this 2009
Act, including procedures for:
  (A) Reporting certified candidates who violated or are
suspected of violating the contribution and expenditure
limitations specified in section 5 of this 2009 Act; and
  (B) Notifying those candidates that they have been accused of
violating a contribution or expenditure limitation.
  (e) Any other rule necessary to administer sections 1 to 14 of
this 2009 Act.
  (2) If the commission reasonably believes on the basis of all
available evidence, including statements of contributions and
expenditures and information obtained during an audit, that a
candidate has violated a contribution or expenditure limitation,
the commission shall provide for the candidate a contested case
hearing as described in ORS chapter 183. If the commission
determines after the hearing that the candidate violated a
contribution or expenditure limitation, the commission may impose
a civil penalty against the candidate as described in section 14
of this 2009 Act.
  (3) To educate electors about public financing the commission
shall:
  (a) File statements with the Secretary of State for publication
in the voters' pamphlet.
  (b) Publish and distribute information about the commission,
its use of the Voter Owned Elections Fund to publicly finance
political campaigns and the candidates who receive public
financing.
  (c) Sponsor debates between candidates, including debates
between candidates who are not receiving public financing and
certified candidates.
  (4) The commission by rule shall prescribe forms for reports,
statements and other documents required by sections 1 to 14 of
this 2009 Act. + }
  SECTION 12.  { + The Voter Owned Elections Commission and its
authorized representatives may administer oaths, take depositions
and issue subpoenas to compel the attendance of witnesses and the
production of documents or other written information that are
necessary to carry out the provisions of sections 1 to 14 of this
2009 Act. If a person fails to comply with a subpoena that the
commission issues under this section or refuses to testify on
matters on which the person lawfully may be interrogated, the
commission shall follow the procedure set out in ORS 183.440 to
compel obedience. + }
  SECTION 13.  { + (1) The Voter Owned Elections Commission may
establish such advisory and technical committees as it considers
necessary to aid and advise the commission in the performance of
its functions. These committees may be continuing or temporary
committees. The commission shall determine the representation,
membership, terms and organization of the committees and shall
appoint their members.
  (2) Members of the committees are not entitled to compensation,
but at the discretion of the commission may be reimbursed from
funds available to the commission for actual and necessary travel
and other expenses incurred by them in the performance of their
official duties, in the manner and amount provided in ORS
292.495. + }
  SECTION 14.  { + (1) If a candidate who has received public
financing certification or a person acting on behalf of a
certified candidate violates a contribution or expenditure
limitation, as described in section 5 of this 2009 Act, the Voter
Owned Elections Commission may impose a civil penalty against the
candidate that is 10 times the amount by which the contribution
or expenditure exceeds the applicable limit.
  (2)(a) In addition to any other penalty imposed by law, if a
certified candidate violates a reporting requirement imposed by
the commission pursuant to sections 1 to 14 of this 2009 Act, the
commission may impose a civil penalty of $100 per day against a
candidate for the office of state Representative or state Senator
and a civil penalty of $300 per day against a candidate for a
statewide office.
  (b) The commission may increase the penalty imposed by this
subsection if the amount that the candidate did not report for an
election period exceeds 10 percent of the amount that the
commission distributed to a certified candidate for that election
period.
  (c) The commission may not impose a civil penalty pursuant to
this subsection that exceeds twice the amount of contributions or
expenditures that the candidate did not report.
  (d) The commission may recover a civil penalty imposed under
this subsection from either the candidate or the campaign account
of the candidate.
  (3) The commission shall deposit all civil penalties collected
pursuant to this section into the Voter Owned Elections Fund. + }
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