Bill Text: FL S0884 | 2024 | Regular Session | Comm Sub


Bill Title: Audits of Campaign Finance Reports

Spectrum: Bipartisan Bill

Status: (Failed) 2024-03-08 - Died in Rules [S0884 Detail]

Download: Florida-2024-S0884-Comm_Sub.html
       Florida Senate - 2024                              CS for SB 884
       
       
        
       By the Committee on Ethics and Elections; and Senator Hutson
       
       
       
       
       
       582-02131-24                                           2024884c1
    1                        A bill to be entitled                      
    2         An act relating to audits of campaign finance reports;
    3         amending s. 106.141, F.S.; authorizing certain
    4         candidates to request the Division of Elections of the
    5         Department of State to audit a specified report;
    6         providing that the period for a candidate to dispose
    7         of funds and file a report is tolled for a specified
    8         timeframe; authorizing candidates to maintain a
    9         campaign account during the audit for a specified
   10         purpose; amending s. 106.22, F.S.; requiring the
   11         division to conduct audits and field investigations
   12         with respect to candidates’ alleged failures to file
   13         certain reports or statements; requiring the division
   14         to conduct random audits of specified reports after
   15         each general election cycle; providing that the
   16         auditing must consist of a certain percentage of all
   17         qualified candidates in specified office groups;
   18         requiring the division to adopt specified rules by a
   19         certain date; requiring the division to complete the
   20         selection process within a specified timeframe and
   21         promptly notify treasurers of specified entities
   22         selected; requiring such treasurers to maintain valid
   23         contact information with the division for a specified
   24         timeframe; exempting aspects of the auditing process
   25         from the Administrative Procedure Act; providing that
   26         the period for candidates to dispose of funds and file
   27         a report is tolled for a specified timeframe under
   28         specified conditions; authorizing candidates to
   29         maintain a campaign account for a specified purpose
   30         during an audit; amending s. 106.021, F.S.; conforming
   31         a cross-reference; reenacting and amending s. 106.07,
   32         F.S.; conforming a cross-reference; reenacting ss.
   33         106.11(5)(d) and 717.1235, F.S., relating to
   34         disposition of surplus funds for individuals who
   35         withdrew, became unopposed, or were eliminated as
   36         candidates and the disposition of funds in certain
   37         dormant campaign accounts, respectively, to
   38         incorporate the amendment made to s. 106.141, F.S., in
   39         references thereto; providing an effective date.
   40          
   41  Be It Enacted by the Legislature of the State of Florida:
   42  
   43         Section 1. Present subsections (2) through (11) of section
   44  106.141, Florida Statutes, are redesignated as subsections (3)
   45  through (12), respectively, a new subsection (2) is added to
   46  that section, and subsection (1), present subsection (5),
   47  paragraph (b) of present subsection (6), present subsection (7),
   48  paragraph (a) of present subsection (8), and present subsection
   49  (9) are amended, to read:
   50         106.141 Disposition of surplus funds by candidates.—
   51         (1) Except as provided in subsection (7) (6), each
   52  candidate who withdraws his or her candidacy, becomes an
   53  unopposed candidate, or is eliminated as a candidate or elected
   54  to office shall, within 90 days, dispose of the funds on deposit
   55  in his or her campaign account and file a report reflecting the
   56  disposition of all remaining funds. Such candidate may not
   57  accept any contributions, nor may any person accept
   58  contributions on behalf of such candidate, after the candidate
   59  withdraws his or her candidacy, becomes unopposed, or is
   60  eliminated or elected. However, if a candidate receives a refund
   61  check after all surplus funds have been disposed of, the check
   62  may be endorsed by the candidate and the refund disposed of
   63  under this section. An amended report must be filed showing the
   64  refund and subsequent disposition.
   65         (2) A candidate required to dispose of funds pursuant to
   66  this section may, before such disposition, request that the
   67  division audit the report required by subsection (1). The 90-day
   68  period to dispose of funds and file the report is tolled until
   69  10 business days after the division completes an audit conducted
   70  pursuant to this subsection or s. 106.22(10). The candidate may
   71  maintain the campaign account during such an audit for the sole
   72  purpose of making expenditures to correct audit findings.
   73         (6)(5) A candidate elected to office or a candidate who
   74  will be elected to office by virtue of his or her being
   75  unopposed may, in addition to the disposition methods provided
   76  in subsection (5) (4), transfer from the campaign account to an
   77  office account any amount of the funds on deposit in such
   78  campaign account up to:
   79         (a) Fifty thousand dollars, for a candidate for statewide
   80  office. The Governor and Lieutenant Governor shall be considered
   81  separate candidates for the purpose of this section.
   82         (b) Ten thousand dollars, for a candidate for multicounty
   83  office.
   84         (c) Ten thousand dollars multiplied by the number of years
   85  in the term of office for which elected, for a candidate for
   86  legislative office.
   87         (d) Five thousand dollars multiplied by the number of years
   88  in the term of office for which elected, for a candidate for
   89  county office or for a candidate in any election conducted on
   90  less than a countywide basis.
   91         (e) Six thousand dollars, for a candidate for retention as
   92  a justice of the Supreme Court.
   93         (f) Three thousand dollars, for a candidate for retention
   94  as a judge of a district court of appeal.
   95         (g) Three thousand dollars, for a candidate for county
   96  court judge or circuit judge.
   97  
   98  The office account established pursuant to this subsection shall
   99  be separate from any personal or other account. Any funds so
  100  transferred by a candidate shall be used only for legitimate
  101  expenses in connection with the candidate’s public office. Such
  102  expenses may include travel expenses incurred by the officer or
  103  a staff member; personal taxes payable on office account funds
  104  by the candidate or elected public official; professional
  105  services provided by a certified public accountant or attorney
  106  for preparation of the elected public official’s financial
  107  disclosure filing pursuant to s. 112.3144 or s. 112.3145; costs
  108  to prepare, print, produce, and mail holiday cards or
  109  newsletters about the elected public official’s public business
  110  to constituents if such correspondence does not constitute a
  111  political advertisement, independent expenditure, or
  112  electioneering communication as provided in s. 106.011; fees or
  113  dues to religious, civic, or charitable organizations of which
  114  the elected public official is a member; items of modest value
  115  such as flowers, greeting cards, or personal notes given as a
  116  substitute for, or in association with, an elected public
  117  official’s personal attendance at a constituent’s special event
  118  or family occasion, such as the birth of a child, graduation,
  119  wedding, or funeral; personal expenses incurred by the elected
  120  public official in connection with attending a constituent
  121  meeting or event where public policy is discussed, if such
  122  meetings or events are limited to no more than once a week; or
  123  expenses incurred in the operation of the elected public
  124  official’s office, including the employment of additional staff.
  125  The funds may be deposited in a savings account; however, all
  126  deposits, withdrawals, and interest earned thereon shall be
  127  reported at the appropriate reporting period. If a candidate is
  128  reelected to office or elected to another office and has funds
  129  remaining in his or her office account, he or she may transfer
  130  surplus campaign funds to the office account. At no time may the
  131  funds in the office account exceed the limitation imposed by
  132  this subsection. Upon leaving public office, any person who has
  133  funds in an office account pursuant to this subsection remaining
  134  on deposit shall use such funds to pay for professional services
  135  provided by a certified public accountant or attorney for
  136  preparation of the elected public official’s final financial
  137  disclosure filing pursuant to s. 112.3144 or s. 112.3145, or
  138  give such funds to a charitable organization that meets the
  139  requirements of s. 501(c)(3) of the Internal Revenue Code or, in
  140  the case of a state officer, to the state to be deposited in the
  141  General Revenue Fund or, in the case of an officer of a
  142  political subdivision, to the political subdivision to be
  143  deposited in the general fund thereof.
  144         (7)(6)
  145         (b) A candidate elected to state office or a candidate who
  146  will be elected to state office by virtue of his or her being
  147  unopposed after candidate qualifying ends, may retain up to
  148  $20,000 in his or her campaign account, or in an interest
  149  bearing account or certificate of deposit, for use in his or her
  150  next campaign for the same office, in addition to the
  151  disposition methods provided in subsections (5) (4) and (6) (5).
  152  All requirements applicable to candidate campaign accounts under
  153  this chapter, including disclosure requirements applicable to
  154  candidate campaign accounts, limitations on expenditures, and
  155  limitations on contributions, apply to any retained funds.
  156         (8)(7) Before disposing of funds pursuant to subsection (5)
  157  (4), transferring funds into an office account pursuant to
  158  subsection (6) (5), or retaining funds for reelection pursuant
  159  to subsection (7) (6), any candidate who filed an oath stating
  160  that he or she was unable to pay the fee for verification of
  161  petition signatures without imposing an undue burden on his or
  162  her personal resources or on resources otherwise available to
  163  him or her shall reimburse the state or local governmental
  164  entity, whichever is applicable, for such waived fee. If there
  165  are insufficient funds in the account to pay the full amount of
  166  the fee, the remaining funds shall be disbursed in the above
  167  manner until no funds remain. All funds disbursed pursuant to
  168  this subsection shall be remitted to the qualifying officer. Any
  169  reimbursement for petition verification costs which are
  170  reimbursable by the state shall be forwarded by the qualifying
  171  officer to the state for deposit in the General Revenue Fund.
  172         (9)(a)(8)(a) Any candidate required to dispose of campaign
  173  funds pursuant to this section shall do so within the time
  174  required by this section and, on or before the date by which
  175  such disposition is to have been made, shall file with the
  176  officer with whom reports are required to be filed pursuant to
  177  s. 106.07 a form prescribed by the Division of Elections
  178  listing:
  179         1. The name and address of each person or unit of
  180  government to whom any of the funds were distributed and the
  181  amounts thereof;
  182         2. The name and address of each person to whom an
  183  expenditure was made, together with the amount thereof and
  184  purpose therefor;
  185         3. The amount of such funds transferred to an office
  186  account by the candidate, together with the name and address of
  187  the bank, savings and loan association, or credit union in which
  188  the office account is located; and
  189         4. The amount of such funds retained pursuant to subsection
  190  (7) (6), together with the name and address of the bank, savings
  191  and loan association, or credit union in which the retained
  192  funds are located.
  193  
  194  Such report shall be signed by the candidate and the campaign
  195  treasurer and certified as true and correct pursuant to s.
  196  106.07.
  197         (10)(9) Any candidate elected to office who transfers
  198  surplus campaign funds into an office account pursuant to
  199  subsection (6) (5) shall file a report on the 10th day following
  200  the end of each calendar quarter until the account is closed.
  201  Such reports shall contain the name and address of each person
  202  to whom any disbursement of funds was made, together with the
  203  amount thereof and the purpose therefor, and the name and
  204  address of any person from whom the elected candidate received
  205  any refund or reimbursement and the amount thereof. Such reports
  206  shall be on forms prescribed by the Division of Elections,
  207  signed by the elected candidate, certified as true and correct,
  208  and filed with the officer with whom campaign reports were filed
  209  pursuant to s. 106.07(2).
  210         Section 2. Subsections (6) and (10) of section 106.22,
  211  Florida Statutes, are amended to read:
  212         106.22 Duties of the Division of Elections.—It is the duty
  213  of the Division of Elections to:
  214         (6) Conduct Make, from time to time, audits and field
  215  investigations with respect to reports and statements filed
  216  under the provisions of this chapter and with respect to alleged
  217  failures to file any report or statement required under the
  218  provisions of this chapter. The division shall conduct a
  219  postelection audit of the campaign accounts of all candidates
  220  receiving contributions from the Election Campaign Financing
  221  Trust Fund.
  222         (10) After each general election cycle, conduct random
  223  audits of with respect to reports and statements filed under
  224  this chapter during that cycle and with respect to alleged
  225  failure to file any reports and statements required under this
  226  chapter.
  227         (a)The audits must be of a random sample of 3 percent of:
  228         1.All qualified candidates in each of the following office
  229  groups:
  230         a.State.
  231         b.Judicial.
  232         c.Multicounty.
  233         d.Special district.
  234         2.All political committees.
  235         3.All electioneering communication organizations.
  236         (b)The division shall adopt rules governing the sample
  237  selection process by October 1, 2024.
  238         (c)The division shall complete the sample selection
  239  process no later than 30 days after each general election and
  240  shall promptly notify the treasurer of each candidate, political
  241  committee, and electioneering communication organization
  242  selected.
  243         (d)The treasurer of each candidate, political committee,
  244  or electioneering communication organization shall maintain
  245  valid contact information with the division until the division
  246  determines that the candidate, political committee, or
  247  electioneering communication organization has not been selected
  248  for an audit, or, if selected, until completion of the audit.
  249         (e)The selection of a candidate, a political committee, or
  250  an electioneering communication organization for audit and the
  251  process by which the candidate, political committee, or
  252  electioneering communication organization was selected are
  253  exempt from chapter 120.
  254         (f)The 90-day period within which a candidate must dispose
  255  of funds and file a report pursuant to s. 106.141(1) is tolled
  256  until 10 business days after the division completes an audit
  257  pursuant to this subsection. The candidate may maintain the
  258  campaign account during such an audit for the sole purpose of
  259  making expenditures to correct audit findings.
  260         Section 3. Paragraph (a) of subsection (1) of section
  261  106.021, Florida Statutes, is amended to read:
  262         106.021 Campaign treasurers; deputies; primary and
  263  secondary depositories.—
  264         (1)(a) Each candidate for nomination or election to office
  265  and each political committee shall appoint a campaign treasurer.
  266  Each person who seeks to qualify for nomination or election to,
  267  or retention in, office shall appoint a campaign treasurer and
  268  designate a primary campaign depository before qualifying for
  269  office. Any person who seeks to qualify for election or
  270  nomination to any office by means of the petitioning process
  271  shall appoint a treasurer and designate a primary depository on
  272  or before the date he or she obtains the petitions. At the same
  273  time a candidate designates a campaign depository and appoints a
  274  treasurer, the candidate shall also designate the office for
  275  which he or she is a candidate. If the candidate is running for
  276  an office that will be grouped on the ballot with two or more
  277  similar offices to be filled at the same election, the candidate
  278  must indicate for which group or district office he or she is
  279  running. This subsection does not prohibit a candidate, at a
  280  later date, from changing the designation of the office for
  281  which he or she is a candidate. However, if a candidate changes
  282  the designated office for which he or she is a candidate, the
  283  candidate must notify all contributors in writing of the intent
  284  to seek a different office and offer to return pro rata, upon
  285  their request, those contributions given in support of the
  286  original office sought. This notification shall be given within
  287  15 days after the filing of the change of designation and shall
  288  include a standard form developed by the Division of Elections
  289  for requesting the return of contributions. The notice
  290  requirement does not apply to any change in a numerical
  291  designation resulting solely from redistricting. If, within 30
  292  days after being notified by the candidate of the intent to seek
  293  a different office, the contributor notifies the candidate in
  294  writing that the contributor wishes his or her contribution to
  295  be returned, the candidate shall return the contribution, on a
  296  pro rata basis, calculated as of the date the change of
  297  designation is filed. Up to a maximum of the contribution limits
  298  specified in s. 106.08, a candidate who runs for an office other
  299  than the office originally designated may use any contribution
  300  that a donor does not request be returned within the 30-day
  301  period for the newly designated office, provided the candidate
  302  disposes of any amount exceeding the contribution limit pursuant
  303  to the options in s. 106.11(5)(b) and (c) or s. 106.141(5)(a)1.,
  304  2., or 4. s. 106.141(4)(a)1., 2., or 4.; notwithstanding, the
  305  full amount of the contribution for the original office shall
  306  count toward the contribution limits specified in s. 106.08 for
  307  the newly designated office. A person may not accept any
  308  contribution or make any expenditure with a view to bringing
  309  about his or her nomination, election, or retention in public
  310  office, or authorize another to accept such contributions or
  311  make such expenditure on the person’s behalf, unless such person
  312  has appointed a campaign treasurer and designated a primary
  313  campaign depository. A candidate for an office voted upon
  314  statewide may appoint not more than 15 deputy campaign
  315  treasurers, and any other candidate or political committee may
  316  appoint not more than 3 deputy campaign treasurers. The names
  317  and addresses of the campaign treasurer and deputy campaign
  318  treasurers so appointed shall be filed with the officer before
  319  whom such candidate is required to qualify or with whom such
  320  political committee is required to register pursuant to s.
  321  106.03.
  322         Section 4. Paragraph (b) of subsection (8) of section
  323  106.07, Florida Statutes, is amended, and paragraph (c) of
  324  subsection (1) of that section is reenacted, to read:
  325         106.07 Reports; certification and filing.—
  326         (1) Each campaign treasurer designated by a candidate or
  327  political committee pursuant to s. 106.021 shall file regular
  328  reports of all contributions received, and all expenditures
  329  made, by or on behalf of such candidate or political committee.
  330  Except for the third calendar quarter immediately preceding a
  331  general election, reports must be filed on the 10th day
  332  following the end of each calendar quarter from the time the
  333  campaign treasurer is appointed, except that, if the 10th day
  334  following the end of a calendar quarter occurs on a Saturday,
  335  Sunday, or legal holiday, the report must be filed on the next
  336  following day that is not a Saturday, Sunday, or legal holiday.
  337  Quarterly reports must include all contributions received and
  338  expenditures made during the calendar quarter which have not
  339  otherwise been reported pursuant to this section.
  340         (c) Following the last day of qualifying for office, any
  341  unopposed candidate need only file a report within 90 days after
  342  the date such candidate became unopposed. Such report shall
  343  contain all previously unreported contributions and expenditures
  344  as required by this section and shall reflect disposition of
  345  funds as required by s. 106.141.
  346         (8)
  347         (b) Upon determining that a report is late, the filing
  348  officer shall immediately notify the candidate or chair of the
  349  political committee as to the failure to file a report by the
  350  designated due date and that a fine is being assessed for each
  351  late day. The fine is $50 per day for the first 3 days late and,
  352  thereafter, $500 per day for each late day, not to exceed 25
  353  percent of the total receipts or expenditures, whichever is
  354  greater, for the period covered by the late report. However, for
  355  the reports immediately preceding each special primary election,
  356  special election, primary election, and general election, the
  357  fine is $500 per day for each late day, not to exceed 25 percent
  358  of the total receipts or expenditures, whichever is greater, for
  359  the period covered by the late report. For reports required
  360  under s. 106.141(9) s. 106.141(8), the fine is $50 per day for
  361  each late day, not to exceed 25 percent of the total receipts or
  362  expenditures, whichever is greater, for the period covered by
  363  the late report. Upon receipt of the report, the filing officer
  364  shall determine the amount of the fine which is due and shall
  365  notify the candidate or chair or registered agent of the
  366  political committee. The filing officer shall determine the
  367  amount of the fine due based upon the earliest of the following:
  368         1. When the report is actually received by such officer.
  369         2. When the report is postmarked.
  370         3. When the certificate of mailing is dated.
  371         4. When the receipt from an established courier company is
  372  dated.
  373         5. When the electronic receipt issued pursuant to s.
  374  106.0705 or other electronic filing system authorized in this
  375  section is dated.
  376  
  377  Such fine shall be paid to the filing officer within 20 days
  378  after receipt of the notice of payment due, unless appeal is
  379  made to the Florida Elections Commission pursuant to paragraph
  380  (c). Notice is deemed complete upon proof of delivery of written
  381  notice to the mailing or street address on record with the
  382  filing officer. In the case of a candidate, such fine is not an
  383  allowable campaign expenditure and shall be paid only from
  384  personal funds of the candidate. An officer or member of a
  385  political committee is not personally liable for such fine.
  386         Section 5. For the purpose of incorporating the amendment
  387  made by this act to section 106.141, Florida Statutes, in a
  388  reference thereto, paragraph (d) of subsection (5) of section
  389  106.11, Florida Statutes, is reenacted to read:
  390         106.11 Expenses of and expenditures by candidates and
  391  political committees.—Each candidate and each political
  392  committee which designates a primary campaign depository
  393  pursuant to s. 106.021(1) shall make expenditures from funds on
  394  deposit in such primary campaign depository only in the
  395  following manner, with the exception of expenditures made from
  396  petty cash funds provided by s. 106.12:
  397         (5) A candidate who withdraws his or her candidacy, becomes
  398  an unopposed candidate, or is eliminated as a candidate or
  399  elected to office may expend funds from the campaign account to:
  400         (d) Dispose of surplus funds as provided in s. 106.141.
  401         Section 6. For the purpose of incorporating the amendment
  402  made by this act to section 106.141, Florida Statutes, in a
  403  reference thereto, section 717.1235, Florida Statutes, is
  404  reenacted to read:
  405         717.1235 Dormant campaign accounts; report of unclaimed
  406  property.—Unclaimed funds reported in the name of a campaign for
  407  public office, for any campaign that must dispose of surplus
  408  funds in its campaign account pursuant to s. 106.141, after
  409  being reported to the department, shall be deposited with the
  410  Chief Financial Officer to the credit of the State School Fund.
  411         Section 7. This act shall take effect upon becoming a law.

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