MISSISSIPPI LEGISLATURE

2022 Regular Session

To: Elections

By: Senator(s) Tate

Senate Bill 2306

(As Passed the Senate)

AN ACT TO AMEND SECTION 23-15-813, MISSISSIPPI CODE OF 1972, TO TRANSFER THE AUTHORITY OF THE MISSISSIPPI ETHICS COMMISSION TO ASSESS A CIVIL PENALTY AGAINST ANY CANDIDATE OR POLITICAL COMMITTEE FOR FAILURE TO FILE A REPORT TO THE SECRETARY OF STATE; TO DELETE THE PROVISIONS THAT PROVIDES FOR A HEARING FOR A CANDIDATE OR POLITICAL COMMITTEE BEFORE THE STATE BOARD OF ELECTION COMMISSIONERS; TO PROVIDE FOR AN APPEAL PROCEDURE FOR THOSE CANDIDATES WHO ARE ASSESSED A CIVIL PENALTY BY THE SECRETARY OF STATE; TO AMEND SECTION 23-15-807, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FOR REPORTS THAT WOULD OTHERWISE BE DUE ON A WEEKEND OR LEGAL HOLIDAY SHALL BE DUE ON THE NEXT WORKING DAY AFTER THE DUE DATE; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 23-15-813, Mississippi Code of 1972, is amended as follows:

     23-15-813.  (a)  In addition to any other penalty permitted by law, the * * * Mississippi Ethics Commission Secretary of State shall * * * require assess a civil penalty against any candidate or political committee, as identified in Section 23-15-805(a), and any other political committee registered with the Secretary of State, who fails to file a campaign finance disclosure report as required under Sections 23-15-801 through 23-15-813, or Sections 23-17-47 through 23-17-53, or who shall file a report that fails to substantially comply with the requirements of Sections 23-15-801 through 23-15-813, or Sections 23-17-47 through 23-17-53, * * * to be assessed a civil penalty as follows:

          (i)  Within five (5) calendar days after any deadline for filing a report pursuant to Sections 23-15-801 through 23-15-813, or Sections 23-17-47 through 23-17-53, the Secretary of State shall compile a list of those candidates and political committees who have failed to file a report. * * *  The list shall be provided to the Mississippi Ethics Commission.  The Secretary of State shall provide each candidate or political committee, who has failed to file a report, notice of the failure by first-class mail.

          (ii)  Beginning with the tenth calendar day after which any report is due, the * * * Mississippi Ethics Commission Secretary of State shall assess the delinquent candidate and political committee a civil penalty of Fifty Dollars ($50.00) for each day or part of any day until a valid report is delivered to the Secretary of State, up to a maximum of ten (10) days.  In the discretion of the * * * Mississippi Ethics Commission Secretary of State, the assessing of the fine may be waived, in whole or in part, if the * * * Commission Secretary of State determines that unforeseeable mitigating circumstances, such as the health of the candidate, interfered with the timely filing of a report.  Failure of a candidate or political committee to receive notice of failure to file a report from the Secretary of State is not an unforeseeable mitigating circumstance, and failure to receive the notice shall not result in removal or reduction of any assessed civil penalty.

          (iii)  Filing of the required report and payment of the fine within ten (10) calendar days of notice by the Secretary of State that a required statement has not been filed constitutes compliance with Sections 23-15-801 through 23-15-813, or Sections 23-17-47 through 23-17-53.

          (iv)  Payment of the fine without filing the required report does not excuse or exempt any person from the filing requirements of Sections 23-15-801 through 23-15-813, and Sections 23-17-47 through 23-17-53.

          (v)  If any candidate or political committee is assessed a civil penalty, and the penalty is not subsequently waived by the * * * Mississippi Ethics Commission Secretary of State, the candidate or political committee shall pay the fine to the * * * Commission Secretary of State within ninety (90) days of the date of the assessment of the fine.  If, after one hundred twenty (120) days of the assessment of the fine the payment for the entire amount of the assessed fine has not been received by the * * * Commission Secretary of State, the * * * Commission Secretary of State shall notify the Attorney General of the delinquency, and the Attorney General shall file, where necessary, a suit to compel payment of the civil penalty.

     (b) * * *  (i)  Upon the sworn application, made within sixty (60) calendar days of the date upon which the required report is due, of a candidate or political committee against whom a civil penalty has been assessed pursuant to subsection (a) of this section, the Secretary of State shall forward the application to the State Board of Election Commissioners.  The State Board of Election Commissioners shall appoint one or more hearing officers who shall be former chancellors, circuit court judges, judges of the Court of Appeals or justices of the Supreme Court, to conduct hearings held pursuant to this article.  The hearing officer shall fix a time and place for a hearing and shall cause a written notice specifying the civil penalties that have been assessed against the candidate or political committee and notice of the time and place of the hearing to be served upon the candidate or political committee at least twenty (20) calendar days before the hearing date.  The notice may be served by mailing a copy of the notice by certified mail, postage prepaid, to the last‑known business address of the candidate or political committee. Within thirty (30) calendar days of the assessment of a fine by the Secretary of State, the candidate or political committee against whom the fine was assessed may appeal the decision of the Secretary of State to the Circuit Court for the First Judicial District of Hinds County in accordance with the applicable rules of the court.

* * *  (ii)  The hearing officer may issue subpoenas for the attendance of witnesses and the production of documents at the hearing.  Process issued by the hearing officer shall extend to all parts of the state and shall be served by any person designated by the hearing officer for the service.

  (iii)  The candidate or political committee has the right to appear either personally, by counsel or both, to produce witnesses or evidence in his or her behalf, to cross‑examine witnesses and to have subpoenas issued by the hearing officer.

  (iv)  At the hearing, the hearing officer shall administer oaths as may be necessary for the proper conduct of the hearing.  All hearings shall be conducted by the hearing officer, who shall not be bound by strict rules of procedure or by the laws of evidence, but the determination shall be based upon sufficient evidence to sustain it.  The scope of review at the hearing shall be limited to making a determination of whether failure to file a required report was due to an unforeseeable mitigating circumstance.

  (v)  In any proceeding before the hearing officer, if any witness fails or refuses to attend upon a subpoena issued by the commission, refuses to testify, or refuses to produce any documents called for by a subpoena, the attendance of the witness, the giving of his or her testimony or the production of the documents shall be enforced by a court of competent jurisdiction of this state in the manner provided for the enforcement of attendance and testimony of witnesses in civil cases in the courts of this state.

  (vi)  Within fifteen (15) calendar days after conclusion of the hearing, the hearing officer shall reduce his or her decision to writing and forward an attested true copy of the decision to the last‑known business address of the candidate or political committee by way of United States first‑class, certified mail, postage prepaid.

(c)  (i)  The right to appeal from the decision of the hearing officer in an administrative hearing concerning the assessment of civil penalties authorized pursuant to this section is granted.  The appeal shall be to the Circuit Court of Hinds County and shall include a verbatim transcript of the testimony at the hearing.  The appeal shall be taken within thirty (30) calendar days after notice of the decision of the commission following an administrative hearing.  The appeal shall be perfected upon filing notice of the appeal and the prepayment of all costs, including the cost of preparing the record of the proceedings by the hearing officer, and filing a bond in the sum of Two Hundred Dollars ($200.00), conditioned that if the decision of the hearing officer is affirmed by the court, the candidate or political committee will pay the costs of the appeal and the action in court.  If the decision is reversed by the court, the Mississippi Ethics Commission will pay the costs of the appeal and the action in court.

  (ii)  If there is an appeal, the appeal shall act as a supersedeas.  The court shall dispose of the appeal and enter its decision promptly.  The hearing on the appeal may be tried in vacation, in the court's discretion.  The scope of review of the court shall be limited to a review of the record made before the hearing officer to determine if the action of the hearing officer is unlawful for the reason that it was 1. not supported by substantial evidence, 2. arbitrary or capricious, 3. beyond the power of the hearing officer to make, or 4. in violation of some statutory or constitutional right of the appellant.  The decision of the court may be appealed to the Supreme Court in the manner provided by law.

(d)  If, after forty‑five (45) calendar days of the date of the administrative hearing procedure set forth in subsection (b), the candidate or political committee identified in subsection (a) of this section fails to pay the monetary civil penalty imposed by the hearing officer, the Secretary of State shall notify the Attorney General of the delinquency.  The Attorney General shall investigate the offense in accordance with the provisions of this chapter, and where necessary, file suit to compel payment of the unpaid civil penalty.

(e)  If, after twenty (20) calendar days of the date upon which a campaign finance disclosure report is due, a candidate or political committee identified in subsection (a) of this section shall not have filed a valid report with the Secretary of State, the Secretary of State shall notify the Attorney General of those candidates and political committees who have not filed a valid report, and the Attorney General shall prosecute the delinquent candidates and political committees.

     SECTION 2.  Section 23-15-807, Mississippi Code of 1972, is amended as follows:

     23-15-807.  (a)  Each candidate or political committee shall file reports of contributions and disbursements in accordance with the provisions of this section.  All candidates or political committees required to report such contributions and disbursements may terminate the obligation to report only upon submitting a final report that contributions will no longer be received or disbursements made and that the candidate or committee has no outstanding debts or obligations.  The candidate, treasurer or chief executive officer shall sign the report.

     (b)  Candidates seeking election, or nomination for election, and political committees making expenditures to influence or attempt to influence voters for or against the nomination for election of one or more candidates or balloted measures at such election, shall file the following reports:

          (i)  In any calendar year during which there is a regularly scheduled election, a pre-election report shall be filed no later than the seventh day before any election in which the candidate or political committee has accepted contributions or made expenditures and shall be completed as of the tenth day before the election;

          (ii)  In 1987 and every fourth year thereafter, periodic reports shall be filed no later than the tenth day after April 30, May 31, June 30, September 30 and December 31, and shall be completed as of the last day of each period;

          (iii)  In any calendar years except 1987 and except every fourth year thereafter, a report covering the calendar year shall be filed no later than January 31 of the following calendar year; and

          (iv)  Except as otherwise provided in the requirements of paragraph (i) of this subsection (b), unopposed candidates are not required to file pre-election reports but must file all other reports required by paragraphs (ii) and (iii) of this subsection (b).

     (c)  All candidates for judicial office as defined in Section 23-15-975, or their political committees, shall file periodic reports in the year in which they are to be elected no later than the tenth day after April 30, May 31, June 30, September 30 and December 31.

     (d)  Each report under this article shall disclose:

          (i)  For the reporting period and the calendar year, the total amount of all contributions and the total amount of all expenditures of the candidate or reporting committee, including those required to be identified pursuant to paragraph (ii) of this subsection (d) as well as the total of all other contributions and expenditures during the calendar year.  The reports shall be cumulative during the calendar year to which they relate;

          (ii)  The identification of:

               1.  Each person or political committee who makes a contribution to the reporting candidate or political committee during the reporting period, whose contribution or contributions within the calendar year have an aggregate amount or value in excess of Two Hundred Dollars ($200.00) together with the date and amount of any such contribution;

              2.  Each person or organization, candidate or political committee who receives an expenditure, payment or other transfer from the reporting candidate, political committee or its agent, employee, designee, contractor, consultant or other person or persons acting in its behalf during the reporting period when the expenditure, payment or other transfer to the person, organization, candidate or political committee within the calendar year have an aggregate value or amount in excess of Two Hundred Dollars ($200.00) together with the date and amount of the expenditure;

          (iii)  The total amount of cash on hand of each reporting candidate and reporting political committee;

          (iv)  In addition to the contents of reports specified in paragraphs (i), (ii) and (iii) of this subsection (d), each political party shall disclose:

              1.  Each person or political committee who makes a contribution to a political party during the reporting period and whose contribution or contributions to a political party within the calendar year have an aggregate amount or value in excess of Two Hundred Dollars ($200.00), together with the date and amount of the contribution;

              2.  Each person or organization who receives an expenditure or expenditures by a political party during the reporting period when the expenditure or expenditures to the person or organization within the calendar year have an aggregate value or amount in excess of Two Hundred Dollars ($200.00), together with the date and amount of the expenditure;

          (v)  Disclosure required under this section of an expenditure to a credit card issuer, financial institution or business allowing payments and money transfers to be made over the Internet must include, by way of detail or separate entry, the amount of funds passing to each person, business entity or organization receiving funds from the expenditure.

     (e)  The appropriate office specified in Section 23-15-805 must be in actual receipt of the reports specified in this article by 5:00 p.m. on the dates specified in subsection (b) of this section.  If the date specified in subsection (b) of this section shall fall on a weekend or legal holiday then the report shall be due in the appropriate office at 5:00 p.m. on the * * * first next working day * * * before after the date specified in subsection (b) of this section.  The reporting candidate or reporting political committee shall ensure that the reports are delivered to the appropriate office by the filing deadline.  The Secretary of State may approve specific means of electronic transmission of completed campaign finance disclosure reports, which may include, but not be limited to, transmission by electronic facsimile (FAX) devices.

     (f)  (i)  If any contribution of more than Two Hundred Dollars ($200.00) is received by a candidate or candidate's political committee after the tenth day, but more than forty-eight (48) hours before 12:01 a.m. of the day of the election, the candidate or political committee shall notify the appropriate office designated in Section 23-15-805, within forty-eight (48) hours of receipt of the contribution.  The notification shall include:

               1.  The name of the receiving candidate;

              2.  The name of the receiving candidate's political committee, if any;

              3.  The office sought by the candidate;

              4.  The identification of the contributor;

              5.  The date of receipt;

              6.  The amount of the contribution;

              7.  If the contribution is in-kind, a description of the in-kind contribution; and

               8.  The signature of the candidate or the treasurer or chair of the candidate's political organization.

          (ii)  The notification shall be in writing, and may be transmitted by overnight mail, courier service, or other reliable means, including electronic facsimile (FAX), but the candidate or candidate's committee shall ensure that the notification shall in fact be received in the appropriate office designated in Section 23-15-805 within forty-eight (48) hours of the contribution.

     SECTION 3.  This act shall take effect and be in force from and after July 1, 2022.

---