Campaign Finance Administration & Enforcement

1. Disclaimer: This presentation is intended as a general interpretive resource only. Where important legal rights are concerned, you should consult with your own attorney to be fully and properly advised. Campaign Finance Administration & Enforcement Presented by:Abbey Taylor Michelle Thompson Campaign Finance Coordinators Indiana Election Division

2. Campaign Finance Forms • Statement of Organization • CFA-1 (Candidate Committees) • CFA-2 (Political Action Committees) • CFA-3 (Regular Party Committees) • Report of Receipts & Expenditures (CFA-4) • All committee types use this form • Large Contribution Report (CFA-11) • Commonly referred to as “48-Hour” report • Only candidate committees required to file

3. When to File a CFA-1 • For offices paying LESS THAN $5,000 in a calendar year • File CFA-1 by noon, ten days after: • Raising or spending $500 toward running for office • Rule also applies to school board candidates • For offices paying MORE THAN $5,000 in a calendar year: • In 2017, all candidates file a CFA-1: • by noon, ten days after raising or spending $100 toward running for office. IC 3-9-1-3 | IC 3-9-1-5 | IC 3-9-1-5.5

4. When to File a CFA-1 • For offices paying MORE THAN $5,000 in a calendar year (continued): • In 2018, a Democratic or Republican candidate must open a campaign finance committee: • by noon, ten days after raising or spending $100 toward running for office; OR • by noon, February 16, 2018, if filing a declaration of candidacy to run in the primary election – even if the candidate does not intend to raise or spend any money! Libertarian, Independent, and minor party candidates follow a different timeline, though the “ten day rule” on the raise/spend threshold based on salary of office still applies. IC 3-9-1-3 | IC 3-9-1-5

5. When to File a CFA-1: Administrative Open • What happens when candidate doesn’t open a committee? • CEB MUST open a campaign finance committee for delinquent candidates by February 23, 2018 • File a CFA-1 on the candidate’s behalf • Use contact information from CAN-2 to complete the top portion • Enter office sought • Name candidate treasurer AND chairperson of the committee • No signature required • Might write a note in the “Office Only” space the committee was administratively opened on <INSERT DATE> IC 3-8-1-1.6 | IC 3-9-1-6

6. What is a CFA-11? • Notes large contributions of at least $1000 in a specific time period before each election • $1000 is aggregate, by contributor, in the period • ex. Joe gives candidate A $500 on October 15 and $500 on November 3, candidate A must filed CFA-11 noting $1,000 aggregate by November 5 • Must be filed within 48-hours of receiving the contribution • Must be assessed $50 per calendar day fine, if late • Supplemental filing period for 2018 • April 4, 2018 – May 6, 2018 • October 13, 2018 – November 4, 2018 Only candidate committees file a CFA-11! IC 3-9-5-20.1 | IC 3-9-4-17(b)

7. Contributions • A contribution is considered made when: • deposited in the mail OR • transferred to another person • A contribution is received and acceptedwhen: • a person has physical possession of the contribution AND • intends to keep it • Itemizing Contributions for Reporting Purposes • Must itemize contributions IF more than $100 in cumulative contributions from single source • More than $100 is $100.01 • If itemized must include: • Date and amount of contribution; • Full name and full mailing address of entity making contribution; and • Must identify the individual’s occupation if contributions from individual total $1,000 or more IC 3-9-1-25 | IC 3-9-1-25.5 | IC 3-9-5-14

8. In-Kinds & Contribution Limits • In-Kind Contribution • Good or service received in lieu of cash contribution • Reported as a contribution on Schedule A & expenditure on CFA-4 Schedule B • Contribution Limitations • Individual contributions from foreign nationals are prohibited • There are no further limits placed on contributions from individuals • Corporations or labor organizations have maximum contribution limits • See campaign finance manual for details IC 3-5-2-15 | IC 3-9-2-4 | IC 3-9-2-11

9. Committee ABCs ACTIVE and OPEN committees are responsible for TIMELY FILING ALL campaign finance reports, according to the state’s filing schedule

10. 2018 Reporting Deadlines NOON 2017 Annual ReportWednesday, January 17, 2018 (NOON) ALL Candidates and PACs Regular Party Committees Thursday, March 1, 2018 (NOON) Pre-Primary Report Friday, April 20, 2018 (NOON) Candidates on the ballot for reporting period ending Friday, April 13, 2018 PACs and Party Committees Pre-General Report Friday, October 19, 2018 (NOON) Candidates on the ballot for reporting period ending Friday, PACs and Party Committees October 12, 2018 2018 Annual Report Wednesday, January 16, 2019 (NOON) ALL Candidates and PACs for reporting ending December 31, 2018 Regular Party Committees Friday, March 1, 2019 (NOON) IC 3-9-5-6 | IC 3-9-5-10

11. Where to File State Legislative Office: • Candidates file only with the Indiana Election Division County, City, Town or Township Office (includes prosecutors and judges): • Candidates file with the County Election Board PACs and Legislative Caucus Committees: • Support Statewide or State Legislative Candidates • File with the Election Division • Support County, City, Town or Township Candidates • File with County Election Board • Supporting more than one of these categories • File with the Election Division IC 3-9-5-2 | IC 3-9-5-3 | IC 3-9-5-4

12. 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 appear at hearing to waive or reduce fine • Defective Reports • $10 per calendar day, up to $100 • CEB must give committee 5 calendar days to cure defective report before assessing fine • 5 days after receipt of notice of defective report, delivered by certified mail IC 3-9-4-17

13. CF 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) NEW! Campaign Finance Enforcement Tool Kit is now found in the Appendix of the 2018 Campaign Finance Manual

14. 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 2018 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 IC 5-14-1.5-4 | IC 5-14-1.5-5

15. 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 • Time, Place, and Nature of Hearing; • Possibility of default for not appearing, and • 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)

16. 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 IC 4-21.5-3-26(b) | IC 4-21.5-3-25(b)

17. 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 IC 3-6-5-34

18. Enforcement Proceeding • 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 IC 3-9-4-14

19. 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

20. Fines • Committees MUST* be assessed a fine based on the schedule outlined in law • $50 per calendar day, up to $1,000 • *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

21. Proxies and Collecting Fines • Proxy • An individual may serve as proxy if a member has a conflict of interest and is unable to remain impartial • Should be filed ahead of meeting • See form 6 in tool kit • Collecting Fines • Non-reverting finance account • Funds available, with the approval of the county council, to supplement funds appropriated for any election-related purposes • County attorney may be able to assist you with the collection of unpaid fines IC 3-6-5-4.5 | IC 3-9-4-17(j)(k)

22. TIP: Administrative Disband • CEB can disband a committee if all of the following are true: • No reports filed in 3 years • Less than $1,000 cash on hand; and • No debts to or from the committee • Steps • Must decide to take action by January 31 • Notice sent to last known address of both chairman and treasurer • At hearing, board makes specific findings • May waive any penalty previously imposed • Must publish notice of action in paper This is a discretionary action for the CEB; not a requirement (IC 3-9-1-12)

23. TIP: CEB Committee Inventory • Create database to track campaign finance issues • Create columns: • Committee Name • Address • Contact Info • E-mail is a great (and cheap!) way to communicate • Dates of each filing • Date committee was opened/closed Organizing campaign finance information in one source is helpful in minimizing long-term efforts to mail notices, administratively disband, enforce law, etc.

24. TIP: Advice for Candidates • File on time even if you are unsure if accurate or incomplete • You will avoid fine • You will be able to amend • Close the Committee if you are defeated or you are finished with it • Committees do not automatically close! • Remain open until final/disband report is filed • Must have a $0 balance and all debts paid or forgiven • Open committees must adhere to the state’s campaign finance reporting schedule • Until closed, subject to fines if deliquent!

25. Questions?