COLORADO SECRETARY OF STATE
[8 CCR 1505-6]
RULES CONCERNING CAMPAIGN AND POLITICAL FINANCE

Preliminary Draft of Proposed Rules

April 2, 2010

Disclaimer:  This draft is not yet final.  The proposed changes to be considered at the public rulemaking hearing may be different than the proposed changes in this draft.  This draft is submitted to the Department of Regulatory Agencies for the purpose of complying with section 24-4-103(2.5), C.R.S., which requires that a draft be submitted to the Department at the time that a notice of proposed rulemaking is filed with the Secretary of State.

A final copy of the proposed rule changes will be available to the public no later than May 13th, 2010, and a copy will be posted on the Department of State’s web site, in compliance with the requirement of section 24-4-103(4)(a), C.R.S., that “[a]ny proposed rule or revised proposed rule by an agency which is to be considered at the public hearing . . . shall be made available to any person at least five days prior to said hearing.”

Proposed additions to the current rules are reflected in small caps.  Proposed deletions from current rules are shown in stricken type.   Annotations may be included.

Rule 4.12 would be repealed as follows:
4.12	Article XXVIII, Section 6(2), concerning the prohibition against funding by corporations and labor organizations for electioneering communications, shall not apply to any corporation that:
	a.	Was formed for the purpose of promoting political ideas and cannot engage in business activities
	b.	Has no shareholders with a claim on its assets or other income
	c.	Was not established by, and does not accept contributions from business corporations or labor organizations. Repealed.
Rule 4.22 would be repealed as follows:
4.22	In accordance with Article XXVIII, sections 2(8), 2(9), and 3(4)(a) of the Colorado Constitution, corporations or labor organizations shall not make expenditures, including independent expenditures, that expressly advocate the election or defeat of a candidate. Repealed.
New rule 4.26 would be adopted as follows:	
4.26	For disclosure required pursuant to section 1-45-108(1)(a)(III), C.R.S., if the person making the expenditure for electioneering communications is a corporation or labor organization, disclosure of the names and addresses of persons contributing $250 or more used to make electioneering communications shall only be required if such moneys are specifically intended to be used for electioneering communications.
New Rule 9.6 would be adopted as follows:
9.6	In accordance with the decision of the Supreme Court of Colorado in In re: Interrogatories Propounded by Governor Bill Ritter, Jr., Concerning the Effect of Citizens United v. Federal Election Commission, 558 U.S.          (2010) on Certain Provisions of Article XX[V]III of the Constitution of the State of Colorado,  notwithstanding Article XXVIII, section 3(4)(a) and section 6(2) of the Colorado Constitution, corporations and labor organizations shall not be prohibited from making independent expenditures or from providing funding for electioneering communications.  Such expenditures shall be reported in accordance with section 1-45-108(2), C.R.S., and this rule.	 
Rule 14.3 would be amended as follows:
14.3	For the purposes of section 5, article XXVIII, any person, including a corporation or labor organization, who is otherwise not required to file reports with the Secretary of State or county clerk and who obligates funds exceeding $1,000 for any single independent expenditure more than 30 days prior to a primary or general election shall deliver notice to the Secretary of State in accordance with the reporting schedule established for political parties in section 1-45-108 (2), C.R.S. [In re: Interrogatories Propounded by Governor Bill Ritter, Jr., Concerning the Effect of Citizens United v. Federal Election Commission, 558 U.S.           (2010) on Certain Provisions of Article XX[V]III of the Constitution of the State of Colorado, No. 10SA43 (Colo. Mar. 22, 2010)]
Rule 14.4 would be amended as follows:
14.4	Notwithstanding rules 14.1 and 14.2, any person (including a natural person, entity, candidate committee, political committee, small donor committee, political party, or 527 political organization, corporation, or labor organization) who obligates funds in any amount for an independent expenditure, fewer than 31 days before a primary or general election, shall deliver notice to the Secretary of State within 48 hours of obligating funds for such expenditure. [In re: Interrogatories Propounded by Governor Bill Ritter, Jr., Concerning the Effect of Citizens United v. Federal Election Commission, 558 U.S.           (2010) on Certain Provisions of Article XX[V]III of the Constitution of the State of Colorado, No. 10SA43 (Colo. Mar. 22, 2010)]