Campaign Finance Basics for 2023
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Campaign Finance
Basics for 2023
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Triggering Events for Opening
Candidate Committees in 2023
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Disclaimers & Yard Signs
•
Campaign Finance Enforcement
Presented by Angie Nussmeyer, Co-Director
2022 Indiana Election Administrator’s Conference
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CEB = County Election Board
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CFA = Campaign Finance Act
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CFA-1 = Statement of Organization for Candidate Committees
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CFA-2 = Statement of Organization for Political Action
Committees
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CFA-3 = Statement of Organization for Regular Party
Committees
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CFA-4 = Report of Receipts & Expenditures
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NOTE: This report is used by ALL committee types
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CFA-11 = Supplemental Contribution Report (AKA 48-Hour
Report
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NOTE: This report is ONLY used by
candidate
committees
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FEC = Federal Election Commission
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NOTE: This presentation does NOT apply to candidates for US President, US Senate, or US House,
as the FEC enforces the federal laws related to campaign finance for federal candidates
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IEC = Indiana Election Commission
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IED = Indiana Election Division
Candidates for statewide OR federal office should NOT rely on the
information in this presentation. Federal candidates should
consult with the FEC; statewide candidates should contact IED.
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In Indiana, a person becomes a candidate when he or she:
1/ announces they are running for office; OR
2/ files the necessary paperwork to appear on the ballot
(or be a write-in candidate); OR
3/ raises or spends a threshold amount that requires
opening a campaign finance committee (even if the
person does
NOT
do #1 or #2)
BUT the campaign finance act does not require a person to
open a committee if they only announce as in #1
IC 3-5-2-6
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1)
Raise or spend a threshold dollar amount toward
running for office, even if no election is being held
for that office that year
2)
Submit candidate filing paperwork to appear on the
ballot as a candidate (or to be a declared write-in
candidate) for offices paying
more than
$5000 in
calendar year
IC 3-5-2-6 | IC 3-9-1-1
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If office pays
LESS
than $5,000 per calendar year…
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Candidate is required to open a committee when
she raises or spends $500 toward running for office
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NOTE: This rule also applies to school board offices
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If office pays
MORE
than $5,000 per calendar year…
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Candidate is required to open a committee when she raises
or spends $100 toward running for office
OR
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Files paperwork in an election year to be on the ballot
IC 3-9-1-5 | IC 3-9-1-5.5
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Where do we find salary information? Is
there a master database somewhere?
Salaries of elected officials are public
information. The Indiana Department of
Local Government Finance has a
“Gateway” for certain salary information
on in.gov/dlgf
If a question arises whether a person is
raising or spending money to run for
office has met the threshold
requirements to open a committee, then
it may be in the candidate’s interest to
find out how much the office pays
annually.
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CFA-1 MUST be filed not later than noon, 10-days after
raising or spending threshold amount ($100 or $500)
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Applies universally, whether an election is being held for
that office or not
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CFA-1 MUST be filed not later than noon, 7-days after
the candidate filing period ends,
IF
office pays more
than $5,000
AND
person files paperwork to run for an
office on the ballot in that election year
So what does raise or spend money mean?
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C
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Direct
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Receive money (cash, check, credit card) to deposit directly
into campaign’s bank account
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In-Kind
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Goods or service donated to the committee
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Receipts or a document with fair market value of good or
services must be maintained by committee
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Must also be reported as an expenditure
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Loans
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Can be direct or in-kind, BUT must be reported on the
appropriate schedule to be repaid by the committee
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E
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Direct
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Campaign pays directly for a purchase or reimburses for
costs incurred by the committee
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In-Kind
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Goods or service “donated” to the committee
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See previous slide for more details
All count toward the $100 or $500 threshold
amount that would require committee to be organized,
even if the candidate is using their own personal money
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What are we required to do if a person
files to run for an office paying more
than $5000 but doesn’t open their
candidate’s committee?
The CEB must administratively open a
candidate’s committee, if candidate does
not open a committee by noon, 7-days
after filing closes. The candidate would
serve as the chair/treasurer; other
information such as office sought or
address is found on declaration of
candidacy. The committee would be
marked as “principal.” The candidate is
required to file reports, even if it is a $0
amount, and CEB must enforce the CFA if
report is delinquent or defective.
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Principal Candidate’s Committee
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Person intends to run for a specific office
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Should disclose on CFA-1
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Exploratory Candidate’s Committee
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Person looking at running for one or more offices; isn’t sure
which one
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Would mark exploratory
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MUST amend CFA-1 once candidate decides on the office &
move to a principal committee
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Can a candidate serve as the chair
AND treasurer of their own
candidate’s committee?
Yes. And this is the only scenario
where a person can be the chair
AND treasurer of a committee.
NOTE: County clerks can only be
the chair or treasurer (or both) of
their own candidate’s committee;
they cannot chair or serve as
treasurer of any other
candidate
committee while in office.
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IC 3-9-1-7 | IC 3-6-5-3(d)
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SCENARIO 1
Sally announces she wants to run for dogcatcher
but has not raised or spent money toward
running for office.
Does she need to open a candidate’s
committee?
No. But, she can file a CFA-1 anyway, even if she
hasn’t raised or spent any money yet.
SCENARIO 2
It’s December 2022. Paul is also considering a
run for dogcatcher, an office paying $25K a year
and is on the ballot in 2023. He held a
fundraiser on December 15 and raised $1000.
Does he need to file a CFA-1?
Yes!
Office pays more than $5K
Raised or spent $1000 toward running for
local office
He has until noon, 10-days after raising the
funds to open the committee.
SCENARIO 3
Lauren decides to throw her name into the hat
to run for dogcatcher, too. She files her CAN-
42/CAN-12 with CEB when candidate filing
opens in January. She has not yet filed a CFA-1.
Does she need to file a CFA-1?
Yes!
Office pays more than $5K
Filed her candidacy paperwork
She has until noon, 7-days after the
candidate filing deadline to file CFA-1.
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Not in a municipality?
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Open candidate committees for non-municipal offices only need to file annual report
for 2023 in Jan. 2024
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PAC & regular party committees have a pre-primary, pre-elect & annual report due in
2023
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Candidate unopposed in primary or municipal election?
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Will still need to file a pre-primary & pre-elect report + 2023 annual, if committee is
required to be open
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In a municipality, but it is determined primary or municipal election is not
needed?
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Will still need to file a pre-primary & pre-election report + 2023 annual, if committee
is required to be open
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What about “small” towns with nominating conventions or other candidates
nominated by convention? Or candidates filling a ballot vacancy?
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CFA has requirements for each of these, but are fact sensitive
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Reach out to IED with questions & look for future training
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“Paid for by” Language
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Required when certain political material clearly identifies a
candidate or party and expressly advocates for the election
or defeat of a clearly identified candidate
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Examples where a disclaimer is required include:
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direct mail pieces sent to more than 100 persons
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newspaper advertisements
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yard signs (whether homemade or commercially printed)
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brochures, leaflets, circulars
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letterhead
IC 3-9-3-2.5
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Paid for by Sally for Dogcatcher Committee
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Candidate’s committee directly paid for the material
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Paid for by Mia Smith and authorized by Sally for
Dogcatcher Committee
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In-Kind contribution paid for by Mia, but Sally’s committee
coordinated with her on the political material
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Paid for by Lucy Jones and not authorized by any candidate
or candidate’s committee.
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Lucy paid for the political material and did not coordinate with
any committee
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NO state law prohibits political yard signs from being
up year-round
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BUT! Local ordinances CAN place restrictions on when
yard signs can be “planted” in a yard, for example, as
can homeowner associations (that is, HOAs)
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Local ordinance restrictions on signs up to 32 sq. ft. cannot
be enforced 60-days before an election and five days after
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HOA restrictions cannot be enforced 30-days before an
election and five days after
IC 36-1-3-11 | IC 32-21-13-4
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Campaign Finance Enforcement
Conversation with Abbey Taylor & Michelle Thompson,
Directors of Campaign Finance with IED
Money photo created by wirestock - www.freepik.com
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Delinquent & Defective Reports
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Audits
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Penalty Schedule
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Enforcement Proceedings
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Proxies
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Collecting Fines
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AOPA = Administrative Orders and
Procedures Act
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CEB = County Election Board
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CFA = Campaign Finance Act
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Committee failed to file required campaign finance report by
NOON deadline
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Applies to ALL committees
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MUST send committee notice of delinquent report not later
than 30 days after the report was required to be filed
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See Form 1 in tool kit found in 2023 Campaign Finance Manual
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CEB not required to send “reminder” notice before deadline, but
may do so uniformly
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MUST post list of delinquent committees on clerk’s public
notice board
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MUST conduct a campaign finance hearing, providing best
possible notice to the delinquent committee (covered later)
IC 3-9-4-14 | IC 3-9-4-17 | IC 3-9-4-19
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What makes a report defective?
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Omission of required elements on a CFA-1, CFA-2, CFA-
3, CFA-4, CFA-11, et al
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Examples, include but are not limited to:
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Missing dates or using date range
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Omitted expenditure classification codes
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Not including full name, address of itemized contributions,
expenditures
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Not using current version of CFA forms
Campaign finance filings are NOT rejected, if submitted on
an approved form! Instead, the committee’s filing may be
found defective or delinquent and subject to civil penalties
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A report appears to be defective, what’s next?
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If the CEB agrees that a campaign finance filing
appears to be defective, then:
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Notice is sent to the committee
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NOTE: Tracking date the notice was received is important
for enforcement as…
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Committee has five days
after
the receipt of the
notice to cure defects and file corrected report
IC 3-9-4-14 | IC 3-9-4-17
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How should CEB manage defective
reports?
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Investigate upon filing of a written complaint
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Conduct an audit from time-to time
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Ascertain whether the report is defective after
it’s filed
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Any review should not delay or prevent a person
from filing their campaign finance document
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Any review should be uniform and non-
discriminatory
IC 3-9-4-13 | IC 3-9-4-14
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State law is NOT specific on campaign finance
audits:
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Must be performed from “time-to-time”
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Best practice
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Establish a CEB policy on audit procedures to ensure
uniform application
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Will audit be performed after every filing period? Annually? During
off-years?
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Will policy just check the math? Look for all missing required
elements?
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Delinquent Reports
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$50 per calendar day, up to $1,000
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Starts at noon (12:00:01) on filing deadline day
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Includes all days (weekends and weekdays)
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Must conduct a hearing to waive or reduce
fine
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Defective Reports
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$10 per calendar day, up to $100
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Committee has five days
after receiving notice
to respond to
notice or cure defects before fine can be assessed
IC 3-9-4-17
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C
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Applicable Law
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Indiana Open Door Law (IC 5-14-1.5)
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Administrative Orders and Procedures Act (AOPA) (4-21.5-3)
–
Indiana Election Law (IC 3-9-4)
Campaign Finance Enforcement Tool
Kit is found in the Appendix of the
2023 Campaign Finance Manual
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Public Notice Requirement
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Meeting notice must be
posted
48 hours before (excluding
weekends and holidays)
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Notice should include date, time & location
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See Form 2 in tool kit found in 2023 Campaign Finance Manual
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Notices must also be mailed, emailed or Faxed to media, if
requested in writing by Jan. 1 of the year
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Generally, notice is not required to be published in newspaper
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Publication of notice is not required for a campaign finance
enforcement hearing unless the meeting also contains agenda items
that require published notice
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Agenda, if used, must be posted at entrance
prior to meeting
IC 5-14-1.5-4 | IC 5-14-1.5-5
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A
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Administrative Orders & Procedures Act (AOPA)
applies to finance hearings
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Requires Individual Notice to Committee
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At Least
5 Days Notice
(excluding Sat, Sun, and holiday)
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(IC 4-21.5-3-20)
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Content of Notice
a)
Time, Place, and Nature of Hearing;
b)
Possibility of default for not appearing, and
c)
Contact information (IC 4-21.5-3-20(c))
»
See form 3 in tool kit
–
Issue Order
•
See form 5 in tool kit
IC 3-9-4-17(j)
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A
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AOPA requires testimony of witnesses be given
under oath
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Any CEB member may administer
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See Form 4 in tool kit
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CEB may subpoena persons and papers
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Proceedings may be informal without resorting
to rules of evidence applicable to courts
IC 4-21.5-3-26(b) | IC 4-21.5-3-25(b)
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CEB Must:
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Conduct a public fact-finding hearing
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Give “notice” (see form 3 in tool kit)
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Provide an “opportunity to be heard”
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Vote in public meeting whether to waive, reduce, or assess
penalty
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Vote must be unanimous to waive or reduce penalty
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Adopt written order (see form 5 in tool kit)
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Parties have 30 days to appeal decision
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Requires civil case to be filed in circuit, superior or
probate court
IC
3-6-5-34
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Delinquent (Late) reports require various
notices be sent to committees
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Delinquency Notice (see form 1 in tool kit)
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Audit for late reports
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Mail notice not later than 30 days after deadline
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Does not need to be sent via certified letter
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Refer to form 1 in tool kit
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Hearing Notice
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See form 3 in tool kit
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Refer to AOPA requirements
IC 3-9-4-14
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H
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CEB presents evidence against committee
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Committee given opportunity to defend
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CEB may ask questions
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CEB can waive or reduce penalty by unanimous vote if
“unjust under the circumstances”
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IC 3-9-4-17; IC 3-9-4-19
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See Form 5 in tool kit
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CEB must vote to assess penalty
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F
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Committees MUST* be assessed a fine based on the
schedule outlined in law
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$50 per calendar day, up to $1,000 for delinquent reports
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$10 per calendar day, up to $100 for defective reports
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*IC 3-9-4-17 uses “shall” in some subsections, but “may” in other subsections
when it comes to the Board imposing a civil penalty
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CEB should read this statute carefully to decide under which circumstances they will
impose a civil penalty
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Any reduction or waiver of a campaign finance fine
MUST be unanimously agreed to by the CEB at the
campaign finance hearing
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P
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Proxy for CEB Members
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An individual may serve as proxy if a member has a
conflict of interest and is unable to remain impartial
during a campaign finance hearing or any other
hearing
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Proxy may not be an elected official or the chair or
treasurer of a candidate’s committee
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Notice of proxy should be filed ahead of meeting
•
See form 6 in tool kit
IC 3-6-5-4.5
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How do we enforce collection of a fine?
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Check with county attorney to determine if a collection agency works on
behalf of the county and county election board to collect overdue fines
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Suggestion: Set a policy as to what constitutes an “overdue” fine and at a CEB
meeting, pass a motion to send committees with an “overdue” fine to the
collection agency
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If person has a civil penalty assessed AND is elected to an office in the
subsequent election, then CEB may ask fiscal officer to withhold the
amount of the civil penalty from the elected official’s paycheck
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Treasurer of the committee & the candidate may be held personally
liable for any debts of the committee
•
Victory Committee v. Genesis Convention Cente
r, 597 N.E.2d 361 (Ind. App
1992)
IC 3-9-4-17 | IC 3-9-4-18
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Fines collected for campaign finance
enforcement go into a separate county fund that
does not revert
–
Funds available, with the approval of the county
council, to supplement funds appropriated for any
election-related purposes
–
Contact county auditor if information needed
regarding campaign finance enforcement account
IC 3-6-5-4.5 | IC 3-9-4-17(j)(k)
39
The basics of campaign finance for the year 2023, including triggering events for opening candidate committees, disclaimers, yard signs, and campaign finance enforcement.
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Presentation Transcript
Campaign Finance Basics for 2023 Triggering Events for Opening Candidate Committees in 2023 Disclaimers & Yard Signs Campaign Finance Enforcement Business photo created by freepik - www.freepik.com Presented by Angie Nussmeyer, Co-Director 2022 Indiana Election Administrator s Conference
Acronyms Acronyms CEB = County Election Board CFA = Campaign Finance Act CFA-1 = Statement of Organization for Candidate Committees CFA-2 = Statement of Organization for Political Action Committees CFA-3 = Statement of Organization for Regular Party Committees CFA-4 = Report of Receipts & Expenditures NOTE: This report is used by ALL committee types CFA-11 = Supplemental Contribution Report (AKA 48-Hour Report NOTE: This report is ONLY used by candidate committees Background photo created by kstudio - www.freepik.com 2
Acronyms Acronyms FEC = Federal Election Commission NOTE: This presentation does NOT apply to candidates for US President, US Senate, or US House, as the FEC enforces the federal laws related to campaign finance for federal candidates IEC = Indiana Election Commission IED = Indiana Election Division Background photo created by kstudio - www.freepik.com Candidates for statewide OR federal office should NOT rely on the information in this presentation. Federal candidates should consult with the FEC; statewide candidates should contact IED. 3
Background photo created by kstudio - www.freepik.com In Indiana, a person becomes a candidate when he or she: 1/ announces they are running for office; OR 2/ files the necessary paperwork to appear on the ballot (or be a write-in candidate); OR 3/ raises or spends a threshold amount that requires opening a campaign finance committee (even if the person does NOT do #1 or #2) BUT the campaign finance act does not require a person to open a committee if they only announce as in #1 IC 3-5-2-6
TWO WAYS TO BECOME A TWO WAYS TO BECOME A CANDIDATE UNDER CFA CANDIDATE UNDER CFA 1) Raise or spend a threshold dollar amount toward running for office, even if no election is being held for that office that year 2) Submit candidate filing paperwork to appear on the ballot as a candidate (or to be a declared write-in candidate) for offices paying more than $5000 in calendar year Background photo created by kstudio - www.freepik.com IC 3-5-2-6 | IC 3-9-1-1 5
TWO SALARY TIERS DETERMINE TWO SALARY TIERS DETERMINE WHEN CFA WHEN CFA- -1 IS FILED 1 IS FILED If office pays LESS than $5,000 per calendar year Candidate is required to open a committee when she raises or spends $500 toward running for office NOTE: This rule also applies to school board offices Background photo created by kstudio - www.freepik.com If office pays MORE than $5,000 per calendar year Candidate is required to open a committee when she raises or spends $100 toward running for office OR Files paperwork in an election year to be on the ballot IC 3-9-1-5 | IC 3-9-1-5.5 6
Business photo created by freepik - www.freepik.com Where do we find salary information? Is there a master database somewhere? Salaries of elected officials are public information. The Indiana Department of Local Government Finance has a Gateway for certain salary information on in.gov/dlgf If a question arises whether a person is raising or spending money to run for office has met the threshold requirements to open a committee, then it may be in the candidate s interest to find out how much the office pays annually. 7
DEADLINES TO FILE CFA DEADLINES TO FILE CFA- -1 1 (CANDIDATE COMMITTEE) (CANDIDATE COMMITTEE) CFA-1 MUST be filed not later than noon, 10-days after raising or spending threshold amount ($100 or $500) Applies universally, whether an election is being held for that office or not Background photo created by kstudio - www.freepik.com CFA-1 MUST be filed not later than noon, 7-days after the candidate filing period ends, IF office pays more than $5,000 AND person files paperwork to run for an office on the ballot in that election year So what does raise or spend money mean? 8
CONTRIBUTIONS CONTRIBUTIONS Direct Receive money (cash, check, credit card) to deposit directly into campaign s bank account In-Kind Goods or service donated to the committee Receipts or a document with fair market value of good or services must be maintained by committee Must also be reported as an expenditure Loans Can be direct or in-kind, BUT must be reported on the appropriate schedule to be repaid by the committee Background photo created by kstudio - www.freepik.com 9
EXPENDITURES EXPENDITURES Direct Campaign pays directly for a purchase or reimburses for costs incurred by the committee In-Kind Goods or service donated to the committee See previous slide for more details Background photo created by kstudio - www.freepik.com All count toward the $100 or $500 threshold amount that would require committee to be organized, even if the candidate is using their own personal money 10
Business photo created by freepik - www.freepik.com What are we required to do if a person files to run for an office paying more than $5000 but doesn t open their candidate s committee? The CEB must administratively open a candidate s committee, if candidate does not open a committee by noon, 7-days after filing closes. The candidate would serve as the chair/treasurer; other information such as office sought or address is found on declaration of candidacy. The committee would be marked as principal. The candidate is required to file reports, even if it is a $0 amount, and CEB must enforce the CFA if report is delinquent or defective. 11
PRINCIPAL OR EXPLORATORY PRINCIPAL OR EXPLORATORY Principal Candidate s Committee Person intends to run for a specific office Should disclose on CFA-1 Background photo created by kstudio - www.freepik.com Exploratory Candidate s Committee Person looking at running for one or more offices; isn t sure which one Would mark exploratory MUST amend CFA-1 once candidate decides on the office & move to a principal committee 12
Business photo created by freepik - www.freepik.com Can a candidate serve as the chair AND treasurer of their own candidate s committee? Yes. And this is the only scenario where a person can be the chair AND treasurer of a committee. NOTE: County clerks can only be the chair or treasurer (or both) of their own candidate s committee; they cannot chair or serve as treasurer of any other candidate committee while in office. 13 IC 3-9-1-7 | IC 3-6-5-3(d)
Background photo created by kstudio - www.freepik.com SCENARIO 1 Sally announces she wants to run for dogcatcher but has not raised or spent money toward running for office. Does she need to open a candidate s committee? No. But, she can file a CFA-1 anyway, even if she hasn t raised or spent any money yet.
Background photo created by kstudio - www.freepik.com SCENARIO 2 It s December 2022. Paul is also considering a run for dogcatcher, an office paying $25K a year and is on the ballot in 2023. He held a fundraiser on December 15 and raised $1000. Does he need to file a CFA-1? Yes! Office pays more than $5K Raised or spent $1000 toward running for local office He has until noon, 10-days after raising the funds to open the committee.
Background photo created by kstudio - www.freepik.com SCENARIO 3 Lauren decides to throw her name into the hat to run for dogcatcher, too. She files her CAN- 42/CAN-12 with CEB when candidate filing opens in January. She has not yet filed a CFA-1. Does she need to file a CFA-1? Yes! Office pays more than $5K Filed her candidacy paperwork She has until noon, 7-days after the candidate filing deadline to file CFA-1.
Things to Look Out for in 2023 Things to Look Out for in 2023 Not in a municipality? Open candidate committees for non-municipal offices only need to file annual report for 2023 in Jan. 2024 PAC & regular party committees have a pre-primary, pre-elect & annual report due in 2023 Candidate unopposed in primary or municipal election? Will still need to file a pre-primary & pre-elect report + 2023 annual, if committee is required to be open In a municipality, but it is determined primary or municipal election is not needed? Will still need to file a pre-primary & pre-election report + 2023 annual, if committee is required to be open What about small towns with nominating conventions or other candidates nominated by convention? Or candidates filling a ballot vacancy? CFA has requirements for each of these, but are fact sensitive Reach out to IED with questions & look for future training Background photo created by kstudio - www.freepik.com 17
DISCLAIMERS DISCLAIMERS Paid for by Language Required when certain political material clearly identifies a candidate or party and expressly advocates for the election or defeat of a clearly identified candidate Examples where a disclaimer is required include: direct mail pieces sent to more than 100 persons newspaper advertisements yard signs (whether homemade or commercially printed) brochures, leaflets, circulars letterhead Background photo created by kstudio - www.freepik.com IC 3-9-3-2.5 18
TYPES OF DISCLAIMERS TYPES OF DISCLAIMERS Paid for by Sally for Dogcatcher Committee Candidate s committee directly paid for the material Paid for by Mia Smith and authorized by Sally for Dogcatcher Committee In-Kind contribution paid for by Mia, but Sally s committee coordinated with her on the political material Background photo created by kstudio - www.freepik.com Paid for by Lucy Jones and not authorized by any candidate or candidate s committee. Lucy paid for the political material and did not coordinate with any committee 19
YARD SIGNS YARD SIGNS NO state law prohibits political yard signs from being up year-round BUT! Local ordinances CAN place restrictions on when yard signs can be planted in a yard, for example, as can homeowner associations (that is, HOAs) Local ordinance restrictions on signs up to 32 sq. ft. cannot be enforced 60-days before an election and five days after HOA restrictions cannot be enforced 30-days before an election and five days after Background photo created by kstudio - www.freepik.com IC 36-1-3-11 | IC 32-21-13-4 20
Campaign Finance Enforcement Conversation with Abbey Taylor & Michelle Thompson, Directors of Campaign Finance with IED Delinquent & Defective Reports Audits Penalty Schedule Enforcement Proceedings Proxies Collecting Fines Money photo created by wirestock - www.freepik.com
Acronyms Acronyms AOPA = Administrative Orders and Procedures Act CEB = County Election Board CFA = Campaign Finance Act 22 Business vector created by rawpixel.com - www.freepik.com
Delinquent or Late Reports Delinquent or Late Reports Committee failed to file required campaign finance report by NOON deadline Applies to ALL committees MUST send committee notice of delinquent report not later than 30 days after the report was required to be filed See Form 1 in tool kit found in 2023 Campaign Finance Manual CEB not required to send reminder notice before deadline, but may do so uniformly MUST post list of delinquent committees on clerk s public notice board MUST conduct a campaign finance hearing, providing best possible notice to the delinquent committee (covered later) 23 IC 3-9-4-14 | IC 3-9-4-17 | IC 3-9-4-19 Business vector created by rawpixel.com - www.freepik.com
Defective Reports Defective Reports What makes a report defective? Omission of required elements on a CFA-1, CFA-2, CFA- 3, CFA-4, CFA-11, et al Examples, include but are not limited to: Missing dates or using date range Omitted expenditure classification codes Not including full name, address of itemized contributions, expenditures Not using current version of CFA forms Campaign finance filings are NOT rejected, if submitted on an approved form! Instead, the committee s filing may be found defective or delinquent and subject to civil penalties 24 Business vector created by rawpixel.com - www.freepik.com
Defective Reports Defective Reports A report appears to be defective, what s next? If the CEB agrees that a campaign finance filing appears to be defective, then: Notice is sent to the committee NOTE: Tracking date the notice was received is important for enforcement as Committee has five days after the receipt of the notice to cure defects and file corrected report 25 IC 3-9-4-14 | IC 3-9-4-17 Business vector created by rawpixel.com - www.freepik.com
Defective Reports Defective Reports How should CEB manage defective reports? Investigate upon filing of a written complaint Conduct an audit from time-to time Ascertain whether the report is defective after it s filed Any review should not delay or prevent a person from filing their campaign finance document Any review should be uniform and non- discriminatory 26 IC 3-9-4-13 | IC 3-9-4-14 Business vector created by rawpixel.com - www.freepik.com
Audits Audits State law is NOT specific on campaign finance audits: Must be performed from time-to-time Best practice Establish a CEB policy on audit procedures to ensure uniform application Will audit be performed after every filing period? Annually? During off-years? Will policy just check the math? Look for all missing required elements? 27 Business vector created by rawpixel.com - www.freepik.com
Penalty Schedule Penalty Schedule Delinquent Reports $50 per calendar day, up to $1,000 Starts at noon (12:00:01) on filing deadline day Includes all days (weekends and weekdays) Must conduct a hearing to waive or reduce fine Defective Reports $10 per calendar day, up to $100 Committee has five days after receiving notice to respond to notice or cure defects before fine can be assessed 28 IC 3-9-4-17 Business vector created by rawpixel.com - www.freepik.com
CFA Enforcement Proceedings CFA Enforcement Proceedings Applicable Law Indiana Open Door Law (IC 5-14-1.5) Administrative Orders and Procedures Act (AOPA) (4-21.5-3) Indiana Election Law (IC 3-9-4) Campaign Finance Enforcement Tool Kit is found in the Appendix of the 2023 Campaign Finance Manual 29 Business vector created by rawpixel.com - www.freepik.com
Open Door Law Requirements Open Door Law Requirements Public Notice Requirement Meeting notice must be posted 48 hours before (excluding weekends and holidays) Notice should include date, time & location See Form 2 in tool kit found in 2023 Campaign Finance Manual Notices must also be mailed, emailed or Faxed to media, if requested in writing by Jan. 1 of the year Generally, notice is not required to be published in newspaper Publication of notice is not required for a campaign finance enforcement hearing unless the meeting also contains agenda items that require published notice Agenda, if used, must be posted at entrance prior to meeting 30 IC 5-14-1.5-4 | IC 5-14-1.5-5 Business vector created by rawpixel.com - www.freepik.com
AOPA Requirements AOPA Requirements Administrative Orders & Procedures Act (AOPA) applies to finance hearings Requires Individual Notice to Committee At Least 5 Days Notice (excluding Sat, Sun, and holiday) (IC 4-21.5-3-20) Content of Notice a) Time, Place, and Nature of Hearing; b) Possibility of default for not appearing, and c) Contact information (IC 4-21.5-3-20(c)) See form 3 in tool kit Issue Order See form 5 in tool kit 31 IC 3-9-4-17(j) Business vector created by rawpixel.com - www.freepik.com
AOPA Requirements AOPA Requirements AOPA requires testimony of witnesses be given under oath Any CEB member may administer See Form 4 in tool kit CEB may subpoena persons and papers Proceedings may be informal without resorting to rules of evidence applicable to courts 32 IC 4-21.5-3-26(b) | IC 4-21.5-3-25(b) Business vector created by rawpixel.com - www.freepik.com
Enforcement Proceeding Overview Enforcement Proceeding Overview CEB Must: Conduct a public fact-finding hearing Give notice (see form 3 in tool kit) Provide an opportunity to be heard Vote in public meeting whether to waive, reduce, or assess penalty Vote must be unanimous to waive or reduce penalty Adopt written order (see form 5 in tool kit) Parties have 30 days to appeal decision Requires civil case to be filed in circuit, superior or probate court 33 IC 3-6-5-34 Business vector created by rawpixel.com - www.freepik.com
Enforcement Proceeding Enforcement Proceeding Delinquent (Late) reports require various notices be sent to committees Delinquency Notice (see form 1 in tool kit) Audit for late reports Mail notice not later than 30 days after deadline Does not need to be sent via certified letter Refer to form 1 in tool kit Hearing Notice See form 3 in tool kit Refer to AOPA requirements 34 IC 3-9-4-14 Business vector created by rawpixel.com - www.freepik.com
Hearing Overview Hearing Overview CEB presents evidence against committee Committee given opportunity to defend CEB may ask questions CEB can waive or reduce penalty by unanimous vote if unjust under the circumstances IC 3-9-4-17; IC 3-9-4-19 See Form 5 in tool kit CEB must vote to assess penalty 35 Business vector created by rawpixel.com - www.freepik.com
Fines Fines Committees MUST* be assessed a fine based on the schedule outlined in law $50 per calendar day, up to $1,000 for delinquent reports $10 per calendar day, up to $100 for defective reports *IC 3-9-4-17 uses shall in some subsections, but may in other subsections when it comes to the Board imposing a civil penalty CEB should read this statute carefully to decide under which circumstances they will impose a civil penalty Any reduction or waiver of a campaign finance fine MUST be unanimously agreed to by the CEB at the campaign finance hearing 36 Business vector created by rawpixel.com - www.freepik.com
Proxies Proxies Proxy for CEB Members An individual may serve as proxy if a member has a conflict of interest and is unable to remain impartial during a campaign finance hearing or any other hearing Proxy may not be an elected official or the chair or treasurer of a candidate s committee Notice of proxy should be filed ahead of meeting See form 6 in tool kit 37 IC 3-6-5-4.5 Business vector created by rawpixel.com - www.freepik.com
Fine Collection Fine Collection How do we enforce collection of a fine? Check with county attorney to determine if a collection agency works on behalf of the county and county election board to collect overdue fines Suggestion: Set a policy as to what constitutes an overdue fine and at a CEB meeting, pass a motion to send committees with an overdue fine to the collection agency If person has a civil penalty assessed AND is elected to an office in the subsequent election, then CEB may ask fiscal officer to withhold the amount of the civil penalty from the elected official s paycheck Treasurer of the committee & the candidate may be held personally liable for any debts of the committee Victory Committee v. Genesis Convention Center, 597 N.E.2d 361 (Ind. App 1992) 38 IC 3-9-4-17 | IC 3-9-4-18 Business vector created by rawpixel.com - www.freepik.com
Fine Collection Fine Collection Fines collected for campaign finance enforcement go into a separate county fund that does not revert Funds available, with the approval of the county council, to supplement funds appropriated for any election-related purposes Contact county auditor if information needed regarding campaign finance enforcement account 39 IC 3-6-5-4.5 | IC 3-9-4-17(j)(k) Business vector created by rawpixel.com - www.freepik.com
