First Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 11-0149.01 Bob Lackner HOUSE BILL 11-1229 HOUSE SPONSORSHIP Court, Acree, Hullinghorst, Kagan, Levy, Liston, Miklosi, Pabon, Todd, Tyler SENATE SPONSORSHIP Carroll, House Committees Senate Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning requirements affecting the creation of issue committees under Colorado law governing campaign finance. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill excludes from the definitions of "ballot issue" and "ballot question" under the "Uniform Election Code of 1992" and the "Fair Campaign Practices Act" (FCPA) the nomination or election of a candidate, including the retention of a candidate. In the 2010 decision of the United States tenth circuit court of appeals titled Sampson v. Buescher, the court struck down as unconstitutional under the first amendment to the United States constitution the threshold amount of contributions raised or expenditures made ($200) that constitutes part of the determination of whether an issue committee has been formed under the campaign finance provisions of the state constitution. Upon formation, an issue committee is subject to various record-keeping, registration, and disclosure requirements. The bill raises this threshold amount in the FCPA to $1,000. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) Under article XXVIII of the state constitution, which was passed by the people of the state as a citizens' initiative in 2002, an issue committee is formed upon the satisfaction of specified requirements, including a requirement, specified in section 2 (10) (a) (II) of said article, that an issue committee "has accepted or made contributions or expenditures in excess of two hundred dollars to support or oppose any ballot issue or ballot question."; (b) Once an issue committee is established, it is subject to a number of record-keeping, registration, and disclosure requirements, the violation of which may result in the imposition of civil penalties; (c) In the case of Sampson v. Buescher, 625 F.3d 1247 (10th Cir. 2010), the United States tenth circuit court of appeals held that: (I) The two hundred dollar threshold requirement under Colorado law unconstitutionally burdens the first amendment rights of association of those citizens desirous of supporting or opposing ballot issues or ballot questions who raise and expend relatively de minimus amounts of money as the financial burden of such regulation on freedom of association approaches or exceeds the value of these citizens' financial contributions to their political effort; (II) The court would not attempt to draw a bright line below which an issue committee may not be required to report contributions and expenditures except to state only that the contributions and expenditures at issue in the case fell well below such a line; (d) As a result of the Sampson decision, the existing threshold amount in section 2 (10) (a) (II) of article XXVIII of the state constitution has now been struck down, at least with respect to the factual circumstances presented in the case, leading to a situation in which there is widespread uncertainty across the state as to the amount of contributions or expenditures that must be reported; (e) In the absence of legislation addressing questions raised by the Sampson case, citizen groups may be uncertain as to the amount that requires reporting; and (f) In accordance with its plenary power to take all such action unless prohibited by the federal or state constitution, the general assembly elects to impose a new threshold amount of one thousand dollars as the amount of contributions raised or expenditures made that is to be used under section 2 (10) (a) (II) of article XXVIII of the state constitution for assisting in the determination of whether an issue committee exists. This amount is set at a level that protects the citizens' rights to freely coordinate their efforts in contributing to issue campaigns without the burden imposed by regulation while ensuring meaningful disclosure of large contributions to issue campaigns where justified by the public interest. SECTION 2. 1-1-104 (2.3) and (2.7), Colorado Revised Statutes, are amended to read: 1-1-104. Definitions. As used in this code, unless the context otherwise requires: (2.3) "Ballot issue" means a state or local government matter arising under section 20 of article X of the state constitution, as defined in sections 1-41-102 (4) and 1-41-103 (4), respectively. "Ballot issue" shall exclude the nomination or election of a candidate, including the retention of a candidate. (2.7) "Ballot question" means a state or local government matter involving a citizen petition or referred measure, other than a ballot issue. "Ballot question" shall exclude the nomination or election of a candidate, including the retention of a candidate. SECTION 3. 1-45-103 (12) (a), Colorado Revised Statutes, is amended to read: 1-45-103. Definitions. As used in this article, unless the context otherwise requires: (12) (a) "Issue committee" shall have the same meaning as set forth in section 2 (10) of article XXVIII of the state constitution; except that, in accordance with the decision of the United States tenth circuit court of appeals in Sampson v. Buescher, 625 F.3d 1247 (10th Cir. 2010), the threshold amount of contributions or expenditures that constitutes part of the determination of whether an issue committee has been formed under section 2 (10) (a) (II) of article XXVIII of the state constitution and is, therefore, subject to all legal requirements thereunder, shall be one thousand dollars. SECTION 4. Effective date - applicability. This act shall take effect July 1, 2011, and shall apply to the portion of any election cycle or for the portion of the calendar year remaining after such date and for any election cycle or calendar year commencing after such date, whichever is applicable. SECTION 5. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.