Vermont Business Magazine On a vote of 22-8, the Vermont Senate gave its final approval today to legislation (S51) that would make important changes to state campaign finance law. Most significantly under S51, only individuals, political committees, and political parties would be allowed make political contributions to candidates. The bill would increase transparency in campaign finance as well, by requiring political committees (a.k.a. PACs) to include the name of any connected organization in the name of the PAC. Finally, the bill also calls for a study to identify ways of improving Vermont’s public financing system.
The Vermont Public Interest Research Group (VPIRG) has been a longtime champion of this legislation. Executive Director Paul Burns issued this statement:
“VPIRG applauds the Vermont Senate for taking another important step to strengthen our democracy and lift the voices of working Vermonters who rarely make large political contributions. These are the people who should decide the outcome of elections, not faceless corporations.
“Vermont’s current campaign finance law allows corporations to contribute to candidates and parties just as human beings can. Corporations are not people, however, and they should not have the same rights when it comes to supporting candidates and influencing elections.
“Twenty-two states already prohibit corporations from contributing to political campaigns. The federal government has also banned direct corporate contributions to federal candidates for more than 100 years. It’s time for Vermont to do the same.”
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S.51 1
Introduced by Senators Pearson, Perchlik and Pollina 2
Referred to Committee on 3
Date: 4
Subject: Elections; campaign finance; contribution limitations; contributions to 5 candidates and political parties; authorized contributors 6
Statement of purpose of bill as introduced: This bill proposes to provide that 7 only individuals, political committees, and political parties may make a 8 contribution to a candidate or to a political party. 9
An act relating to the persons authorized to make contributions to 10 candidates and political parties and to political committee names 11
It is hereby enacted by the General Assembly of the State of Vermont: 12
Sec. 1. 17 V.S.A. § 2901 is amended to read: 13
§ 2901. DEFINITIONS 14
As used in this chapter: 15
* * * 16
(13) “Political committee” or “political action committee” means any 17 formal or informal committee of two or more individuals or a corporation, 18 labor organization, public interest group, or other entity, not including a 19 political party, that accepts contributions of $1,000.00 or more and makes 20
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expenditures of $1,000.00 or more in any two-year general election cycle for 1 the purpose of supporting or opposing one or more candidates, influencing an 2 election, or advocating a position on a public question in any election, or any 3 such entity that registers as a political committee pursuant to section 2922 of 4 this chapter prior to reaching those $1,000.00 thresholds, and includes an 5 independent expenditure-only political committee and a legislative leadership 6 political committee. 7
* * * 8
Sec. 2. 17 V.S.A. § 2922 is amended to read: 9
§ 2922. POLITICAL COMMITTEES; REGISTRATION; CHECKING 10
ACCOUNT; TREASURER 11
(a)(1)(A) Each political committee shall register with the Secretary of State 12 within 10 days of making expenditures of $1,000.00 or more and accepting 13 contributions of $1,000.00 or more stating, and any other political committee 14 may register with the Secretary of State prior to reaching those $1,000.00 15 thresholds. 16
(B) A political committee’s name shall include the full name of its 17 connected organization, if applicable, or any clearly recognized abbreviation or 18 acronym by which the connected organization is commonly known. 19
(C) In its registration, a political committee shall state: 20
(i) its full name and address; 21
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(ii) the name and address of the bank in which it maintains its 1 campaign checking account; and 2
(iii) the name and address of the treasurer responsible for 3 maintaining the checking account; and 4
(iv) if applicable, the full name of its connected organization and 5 any clearly recognized abbreviation or acronym by which the connected 6 organization is commonly known. 7
(2)(A) In addition to the requirements of subdivision (1) of this 8 subsection, a legislative leadership political committee shall designate in its 9 registration that it is established as a legislative leadership political committee. 10
(B) The Secretary of State shall provide on his or her website a list of 11 all legislative leadership political committees that have been designated as 12 provided in this subdivision (2). 13
(b)(1) All expenditures by a political committee shall be paid by either a 14 credit card or a debit card, check, or other electronic transfer from the single 15 campaign checking account in the bank designated by the political committee 16 under subsection (a) of this section, or, if under $250.00, the political 17 committee may make the expenditure from cash from that campaign checking 18 account if accompanied by a receipt, a copy of which shall be maintained by 19 the political committee for at least two years from the end of the two-year 20 general election cycle in which the expenditure was made. 21
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(2) Nothing in this subsection shall be construed to prohibit the payment 1 of fees required to be made from a separately held online account designated 2 solely to collect campaign contributions made to the political committee. 3
(c) A political committee whose principal place of business or whose 4 treasurer is not located in this State shall file a statement with the Secretary of 5 State designating a person who resides in this State upon whom may be served 6 any process, notice, or demand required or permitted by law to be served upon 7 the political committee. This statement shall be filed at the same time as the 8 registration required in subsection (a) of this section. 9
(d) As used in this section, “connected organization” means the formal or 10 informal committee of two or more individuals, corporation, labor 11 organization, public interest group, or other entity that directly or indirectly 12 establishes, administers, or financially supports a political committee. For 13 purposes of this subsection: 14
(1) “Financially supports” does not include contributions to the political 15 committee but does include the payment of establishment, administration, and 16 solicitation costs of the political committee; and 17
(2) Members of a connected organization, such as organizations that or 18 individuals who are members of a trade association, labor organization, or 19 public interest group that is a connected organization, shall not be considered 20
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to have directly or indirectly established, administered, or financially supported 1 the connected organization’s political committee. 2
Sec. 3. 17 V.S.A. § 2941 is amended to read: 3
§ 2941. LIMITATIONS OF CONTRIBUTIONS 4
(a) In any election cycle: 5
(1)(A) A candidate for State Representative or for local office shall not 6 accept contributions totaling more than: 7
(i) $1,000.00 from a single source; or 8
(ii) $1,000.00 from a political committee. 9
(B) Such a candidate may accept unlimited contributions from a 10 political party. 11
(2)(A) A candidate for State Senator or for county office shall not accept 12 contributions totaling more than: 13
(i) $1,500.00 from a single source; or 14
(ii) $1,500.00 from a political committee. 15
(B) Such a candidate may accept unlimited contributions from a 16 political party. 17
(3)(A) A candidate for the office of Governor, Lieutenant Governor, 18 Secretary of State, State Treasurer, Auditor of Accounts, or Attorney General 19 shall not accept contributions totaling more than: 20
(i) $4,000.00 from a single source; or 21
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(ii) $4,000.00 from a political committee. 1
(B) Such a candidate may accept unlimited contributions from a 2 political party. 3
(4) A political committee shall not accept contributions totaling more 4 than: 5
(A) $4,000.00 from a single source; 6
(B) $4,000.00 from a political committee; or 7
(C) $4,000.00 from a political party. 8
(5) A political party shall not accept contributions totaling more than: 9
(A) $10,000.00 from a single source; 10
(B) $10,000.00 from a political committee; or 11
(C) $60,000.00 from a political party. 12
(6) [Repealed.] 13
(b) A single source, political committee, or political party shall not 14 contribute more to a candidate, political committee, or political party than the 15 candidate, political committee, or political party is permitted to accept under 16 this section. 17
(c)(1)(A) Notwithstanding any provision of law to the contrary, only an 18 individual, a political committee, or a political party may make a contribution 19 to a candidate or to a political party. 20
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(B) In accordance with the provisions of subdivision (A) of this 1 subdivision (1), an individual may make a contribution as follows, which in 2 either case shall be considered a contribution from the individual: 3
(i) in the individual’s capacity as an unincorporated sole 4 proprietorship; or 5
(ii) from his or her revocable trust, if the individual is a named 6 trustee. 7
(2) A candidate or a political party shall not accept a contribution from 8 any person other than those permitted to make such a contribution under 9 subdivision (1) of this subsection. 10
(d) As used in this section: 11
(1) For a candidate described in subdivisions (a)(1)-(3) of this section, 12 an “election cycle” means: 13
(A) in the case of a general or local election, the period that begins 38 14 days after the previous general or local election for the office and ends 38 days 15 after the general or local election for the office for which that person is a 16 candidate, and includes any primary or run-off runoff election related to that 17 general or local election; or 18
(B) in the case of a special election, the period that begins on the date 19 the special election for the office was ordered and ends 38 days after that 20
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special election, and includes any special primary or run-off runoff election 1 related to that special election. 2
(2) For a political committee, political party, or single source described 3 in subdivisions (4)–(6) of subsection (a), an “election cycle” means a two-year 4 general election cycle. 5
Sec. 4. EFFECTIVE DATE 6
This act shall take effect on December 11, 2022.
Source: Montpelier, VT – VPIRG 3.24.2021