Campaign Finance 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 Enforcement Presented by:Brad King & Angie Nussmeyer Co-Directors, Indiana Election Division

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

3. 2019 Reporting Deadlines NOON 2018 Annual ReportWednesday, January 16, 2019 (NOON) ALL Candidates and PACs Regular Party Committees Friday, March 1, 2019 (NOON) Pre-Primary Report Monday, April 22, 2019 (NOON) Candidates on the ballot for reporting period ending Friday, April 12, 2019 PACs and Party Committees Pre-General Report Friday, October 18, 2019 (NOON) Candidates on the ballot for reporting period ending Friday, PACs and Party Committees October 11, 2019 2019 Annual Report Wednesday, January 15, 2020 (NOON) ALL Candidates and PACs for reporting ending December 31, 2019 Regular Party Committees Monday, March 2, 2020 (NOON) IC 3-9-5-6 | IC 3-9-5-10

4. 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

5. 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

6. 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

7. 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 2019 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

8. 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)

9. 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)

10. 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

11. 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

12. 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

13. 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

14. 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 fun; work with county auditor • 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)

15. 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)

16. 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.

17. 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 and 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!

18. Questions?