Source: http://www.mass.gov/ocpf/cmr9701.htm
Timestamp: 2014-03-09 20:17:54
Document Index: 721063755

Matched Legal Cases: ['§ 3', '§ 6', '§ 2', '§ 18', '§ 8', '§ 8', '§ 8', '§ 18', '§ 8']

970 CMR 1.00: CAMPAIGN FINANCE ACTIVITY
1.01: Scope and Purpose
1.02: General Provisions
1.03: Debts
1.04: Contributions
1.05: Loans 1.06: Limitations on Contributions by Political Committees
1.07: Contributions by Conduits and Intermediaries 1.08: Reporting of Contributor's Occupation and Employer
1.09: Contributions by Credit or Debit Card
1.10: Record Keeping
1.11: Electronic Filing
1.12: Transfer of Candidate Political Committee From Municipal Level to State Level 1.13: Transfer of Candidate Political Committee From State Level to Municipal Level
1.14: Electioneering Communications
1.15: Posting of Campaign Finance Reports by Local Election Officials
1.16: Disclosure Required of Candidates for Mayor in Municipalities with a Total
Population of Between 40,000 and 100,000
1.17: Mid-year Campaign Finance Reports
1.18: Reports of Late Contributions Received
1.19: Contributions from Gaming License Applicants and Persons Holding Such Licenses
1.20: Legal Defense, Inauguration and Recount Funds
1.21: Municipal Candidates Filing of Pre-preliminary Reports
M.G.L. c. 55 regulates all campaign finance activity for state, county, city and town elections and regional school and other district elections in the Commonwealth. 970 CMR 1.00 provides for the regulation of activity which is often engaged in by political committees. It establishes specific guidelines for transactions such as debt settlements, the acceptance and reporting of campaign contributions and loans from candidates to their political committees.
(1) Authority. 970 CMR 1.00 is promulgated under authority and in conformity with M.G.L. c. 55, §§ 3 and 6 and M.G.L. c. 30A.
(2) Amendments. 970 CMR 1.00 may be amended at any time, and such amendments shall take effect in accordance with M.G.L. c. 30A, § 6.
(3) The term political committee as used in 970 CMR shall, unless the context otherwise requires, also apply to a candidate's account, as provided for in M.G.L. c. 55, § 2, and shall apply to all transactions and activities of said account.
(4) The term candidate as used in 970 CMR shall, unless the context otherwise requires, also apply to the candidate committee organized on behalf a candidate in accordance with M.G.L. c. 55.
(5) In any town having elections in November, candidates and committees required to file reports relating to such elections shall file reports in accordance with the schedule established in M.G.L. c. 55, § 18(b) for cities.
(1) Corporate Debts. Debts owed to business corporations or other entities subject to M.G.L. c. 55, § 8 for goods and services may not be settled by candidates or political committees other than ballot question committees for less than the amount owed unless both the business corporation or other entity subject to M.G.L. c. 55, § 8 and political committee treat the debt in a commercially reasonable manner. A corporation which settles a debt for less than the amount owed has made an in-kind contribution to the ballot question committee, and the ballot question committee must disclose the receipt of the in-kind contribution on its campaign finance reports. 970 CMR 1.03 shall not apply to a debt which is the subject of a dispute between a political committee and a creditor involving questions of satisfactory delivery of goods or services, or the amount owed. In order for a settlement of such a debt to occur all of the following requirements must be met:
(a) Credit was extended in the ordinary course of business similar to terms granted to other political and non-political debtors.
(b) The committee has made commercially reasonable efforts to satisfy the debt.
(c) The creditor has pursued remedies to seek payment in the same manner it normally takes against debtors in a financial condition similar to the committee.
(d) The settlement is similar to others the creditor has made with other debtors, and similar to settlements the committee has proposed to its other creditors.
(e) The length of time prior to settlement is consistent with normal business and trade practice.
(f) A political committee or candidate must file with this office a Statement of Settlement, which is subject to review, within 30 days of any such settlement. All Statements of Settlement must be signed by the Treasurer and Candidate of the political committee, and a duly authorized agent of the corporation.
(2) Noncorporate Debts. Debts to individuals or unincorporated proprietors not subject to M.G.L. c. 55, § 8 may be settled for less than the amount owed in the same manner as provided in 970 CMR 1.03(1), or by meeting each of the following requirements:
(a) The amount forgiven is set forth in a letter of forgiveness and when considered together with amounts contributed from the same individual, is no more than the amount said individual may contribute in accordance with M.G.L. c. 55 or 970 CMR.
(b) The political committee must report any debt which is forgiven as an in-kind contribution.
(3) Definition of "Liability". For purposes of M.G.L. c. 55, a "liability" is an obligation to make an expenditure which arises when a candidate or political committee, or person acting on behalf of a candidate or political committee, receives the proceeds of a loan or a good or service for the purpose of influencing the nomination or election of a candidate or for the purpose of promoting or opposing a question submitted to the voters, or is otherwise legally obligated to make a payment.
(4) Where a debt has been reported as a liability by a candidate or political committee for at least six years, and the candidate or committee does not have funds to make a payment and does not expect to have such funds available, an affidavit may be submitted to OCPF by the candidate or treasurer, to indicate that the liability is no longer in effect. In order for a debt to no longer be in effect after six years, the following requirements must be met:
(a) At the time the liability was incurred, the candidate and committee treasurer intended that the amount due would be paid in full; (b) Credit was extended in the ordinary course of business similar to terms granted to other political and non-political debtors; (c) The committee has made commercially reasonable efforts to satisfy the debt;
(d) The creditor has pursued remedies to seek payment in the same manner it normally takes against debtors in a financial condition similar to the committee;
(e) The goods or services provided by the creditor were not intended by the creditor as an in-kind contribution to the candidate or committee; and
(f) Payment on the full amount owed has not been made because the candidate or committee has no funds to make such payment and has no reasonable expectation of being able to make such payment in the future.
(1) A contribution which is made by a check which reflects a joint checking account of two individuals shall be presumed to be from the individual whose signature appears on the check, unless other information is provided, in writing, by either individual whose names appear on the check, that the true contributor(s) is different than the signature that appears on the check.
(2) No check reflecting the name of a business corporation may be solicited or received by any candidate or political committee, other than a ballot question committee.
(3) Political contributions by corporations, partnerships, limited liability companies and limited liability partnerships. Section 8 of Chapter 55 prohibits contributions to candidates and committees (other than ballot question committees) from business or professional corporations, partnerships, limites liability companies, and limited liability partnerships incorporated of formed under the laws of the commonwealth, or doing business in the commonwealth. Where accounts are created by a partnership to hold the equity interest of individual partners, however, such accounts may be used by partners to make individual contributions.
(4) Contributions which are received by ticket sellers must be disclosed as contributions from original and true contributors in the amount given by them.
(5) Anonymous contributions may not be accepted and shall, if unable to be returned to the contributor, be donated within 30 days of receipt, to an entity or entities specified in the residual funds clause, M.G.L. c. 55, § 18, or in a manner consistent with 970 CMR 2.05(2)(w) or 970 CMR 2.06(3)(a). Candidates and political committees must keep records reflecting such contributions.
(6) Any corporation or any other entity which is prohibited from making a particular contribution may not reimburse an individual for any contribution made by that individual.
(7) Any contribution received by a candidate or political committee, which is returned to the contributor in its original form, is deemed to have not been accepted and therefore need not be reported.
(8) Candidates and committees shall exercise their best efforts to determine whether contributions are legal at the time of receipt. Any contribution which is believed by a candidate or committee to be illegal under M.G.L. c. 55 or any other law prior to its deposit into the account of a political committee or candidate shall be returned to the contributor in its original form. Any contribution which is believed by a candidate or committee to be illegal, subsequent to its deposit, shall be purged immediately either by refund to a contributor or payment pursuant to the residual funds clause. This refund shall be in the form of a check written to the contributor on the account of the candidate or political committee into which the original contribution was deposited. When the director determines a contribution to be illegal, the director may either require the contribution to be refunded to the contributor, or alternatively, he may require the contribution to be disgorged through a payment by the candidate or committee to the Commonwealth.
(9) A political committee or candidate may elect to refund a contribution, subsequent to its deposit, under the following circumstances:
(a) The political committee or candidate determines that the receipt of the particular contribution creates an appearance of a conflict of interest or other possible impropriety. Such a refund would be appropriate, for example, where the receipt of a particular contribution might reasonably be interpreted to create an impression that a contributor can improperly influence or unduly enjoy official favor, or exercise undue influence.
(b) The political committee or candidate has established, or establishes, a refund policy regarding contributions from a particular category or type of contributor. This policy, and the refund of such contributions, must be stated and applied in an open and consistent manner.
(c) Except as provided in 970 CMR 1.04(9)(d), contributions may be refunded to some or all contributors
making contributions to a candidate or committee for any reason if refunds are made within 90 days of receipt of such contributions.
(d) Contributions may be refunded within 90 days of receipt because of the termination of a particular candidacy. Such refunds shall be calculated in accordance with 970 CMR 1.04(9)(d)1. or 2.:
1. refunds may be made on a pro rata basis; or
2. refunds may be made on a "last in, first out" basis, i.e., the most recent contribution will be refunded in full and the remaining balance will be used to refund each contribution in the reverse order of receipt.
(e) Except as expressly provided, 970 CMR 1.04 shall not be construed to affect the requirements of 970 CMR relating to the disposition of residual funds by candidates and political committees.
(f) The contributions have been given to a ballot question committee that was organized to support an anticipated ballot question and the question the committee was organized to support was not placed on the ballot. If some of the contributions received by the committee have been spent and are not available when refunds are to be made, refunds shall be made on a pro rata basis or on a last in, first out basis.
(g) If a candidate or committee has issued a refund check to a contributor but the refund check is not negotiated within three months of issuance, the candidate or committee shall instead disgorge the funds by making a payment to a charitable entity or entities or otherwise pursuant to the residual funds clause.
(10) Membership Communications. Communications from membership organizations, not including a corporation subject to M.G.L. c. 55, § 8, to its members and their families, on any subject, shall not be understood to be a contribution or expenditure.
(11) Money Orders. No person, candidate or political committee shall make a contribution of money, if the aggregate amount contributed in a calendar year exceeds $50.00, except by check, or by credit or debit card in accordance with 970 CMR 1.09. For the purposes of 970 CMR, the word "check" shall, unless the context otherwise requires, mean a check on which the contributor is directly liable or which is written on a personal, escrow, trust, partnership, business or other account which represents or contains the contributor's funds and shall not mean a certified check, cashier's check, treasurer's check, registered check, money order, traveler's check or other similar negotiable instrument.
(12) Contribution Limitations. Contributions from individuals, candidates and political committees to candidates and political committees shall comply with the contribution limitations set forth in the following chart:
(M.G.L. c. 55, AS AMENDED BY St. 1994, chs. 43 AND 292)
=======Limits on contributions to:
Const.candidate1========
Othercandidate========
PAC2=======
"People'scommittee"2=========
Statepartycomm.======
Ward, towncity partycommittees========
Ballotquestioncommittees=======
Contributionfrom:
$500/yr$12,500,total tocandidatecommittees
$100/yr4
[----$5,000/yr----]5
-------------Legislativeandexecutiveagents (i.e.,registeredlobbyists)
---------------$200/yr6
-----------$200/yr
---------------$100/yr4
-------------$200/yr
-------------No limit
-------------Const.CandidateCommittee
--------------$0
-----------$100/yr.$1,500/yr.(total)
--------------$100/yr.$1,500/yr.(total)
-------------$0
-------------OtherCandidateCommittee
--------------$100/cand.$1,500total to all
candidates11
-----------No limit7
--------------No limit7
-------------No limit7
-------------PAC
--------------$500/yr(Limits onaggreg.amounts
receivedfrom PACs:Gov: $150,000LtGov: $31,250
Atty Genl: $62,500State Secy: $37,500
Treasurer: $37,500Auditor: $37,500)
receivedfrom PACs:Senator:$18,750
Rep:$7,500CountyOfficers:$18,750
GovernorsCouncil:$18,750)
-----------$500/yr.
--------------------------[----$5,000/yr----]5