Preliminary Draft of Proposed Rules

Office of the Colorado Secretary of State
Rules Concerning Campaign and Political Finance
8 CCR 1505-6

October 15, 2018

Disclaimer:
In accordance with the State Administrative Procedure Act, this draft is filed with the Secretary of State and submitted to the Department of Regulatory Agencies.
This is a preliminary draft of the proposed rules that may be revised before the November 14, 2018 rulemaking hearing. If changes are made, a revised copy of the proposed rules will be available to the public and a copy will be posted on the Department of State’s website no later than November 9, 2018.
Please note the following formatting key:
Font effect	Meaning	
Sentence case	Retained/modified current rule language	
Small caps	New language	
Strikethrough	Deletions	
Italic blue font text	Annotations	

Amendments to 8 CCR 1505-6:
Amendments to Rule 2.2.4 concerning candidate committees:
2.2.4	Managing unexpended campaign contributions 
(a)	A candidate committee must report its unexpended balance as the ending balance throughout at the end of the election cycle. A candidate committee must report its unexpended balance from the report filed 30 days after the major election as the beginning balance in the next election cycle. The candidate committee’s beginning balance must reflect what amount is retained for use in a subsequent election cycle and what amount is retained for use as unexpended funds. 
(b)	Candidates seeking re-election to the same office 
(1)	A candidate committee may retain contributions to use in a subsequent election cycle for the same public office, in an amount not to exceed the political party contribution limit in Colo. Const. Article XXVIII, Section 3(3) (as adjusted by Rule 10.16). 
(2)	If a candidate committee retains contributions to use in a subsequent election cycle for the same office, the amount retained counts toward the limit on contributions from a political party. A candidate committee must return contributions it receives in excess of the political party limit within ten days. 
(3)	If a candidate committee retains contributions from a prior election cycle in excess of the political party contribution limit, the candidate committee may not use those funds for any subsequent election cycle but may retain them for use in accordance with section 1-45-106(1)(b), C.R.S., if applicable. The committee may also contribute the funds to a political party, donate the funds to a charitable organization recognized by the Internal Revenue Service, or return the funds to contributors.
(c)	Candidates seeking election to a different office 
(1)	A candidate committee may transfer funds to a candidate committee established by the same candidate for a different public office, subject to the political party contribution limit for the new office sought. [Colo. Const. Article XXVIII, Section 3] 
(2)	Contributions from persons or committees made to the prior candidate committee do not apply toward the contribution limits for the new candidate committee. 
(3)	A candidate committee transferring funds to a candidate committee for a different office must terminate within ten days of registering the new candidate committee. 
(4)	A candidate seeking election to a state, county, or local office may not transfer funds from a federal candidate committee to a Colorado candidate committee that is subject to the provisions of the Fair Campaign Practices Act.
(5)	If a candidate committee transfers funds in excess of the political party contribution limit, the candidate committee may only retain them for use in accordance with section 1-45-106(1)(b), C.R.S. if applicable. The committee may also contribute the funds to a political party, donate the funds to a charitable organization recognized by the Internal Revenue Service, or return the funds to contributors. 
(d)	Not Candidates not seeking re-election or election to a new office
(1)	A candidate committee that wishes to terminate and will not transfer funds to a new candidate committee may give remaining contributions to: 
(A)	A political party, in an amount not to exceed the limit in Colo. Const. Article XXVIII Section 3(3) (as adjusted by Rule 10.17); 
(B)	A charitable organization recognized by the I.R.S.; 
(C)	the The original contributors; or 
(D)	If elected to office, the candidate may use the remaining contributions for voter registration, political issue education, postsecondary educational scholarships, communication with constituents, or for expenses directly related to the officeholder’s official duties. 
[Section 1-45-106(1)(a)(I) and (b), C.R.S.]
Amendments to Rule 18.2 concerning complaints:
Amendments to Rule 18.2.6(b)(1):
18.2.6 	Initial review
(b)	Within 10 business days of receiving the complaint, the elections division must take one or more of the following actions:
(1)	If the elections division determines that the complaint was not timely filed, has not specifically identified one or more violations, or that the complainant did not assert facts sufficient to support the alleged violations, the elections division will dismiss the complaint file a motion to dismiss and recommended order with the Secretary of State’s designated hearing officer for review under section 24-4-105, C.R.S. and notify the complainant and respondent of the reasons for dismissal. The dismissal is a final agency action, and subject to review under section 24-4-106, C.R.S.
Amendments to Rule 18.2.7(e)(1) and repeal of Rule 18.2.7(e)(3):
18.2.7 	Curing violations
(e)	After the period for cure, the elections division will determine whether the respondent cured the violations, and if so, whether the respondent substantially complied or acted in good faith under Rules 18.2.7(f) and 18.2.7(g).
(1)	If the elections division determines that the respondent substantially complied or acted in good faith, the elections division will dismiss the complaint file a motion to dismiss and recommended order with the Secretary of State’s designated hearing officer for review under section 24-4-105, C.R.S.
 (3)	The election division’s determination under this subsection is a final agency action, subject to review under section 24-4-106, C.R.S.