HB 250: Ohio Anti-Corruption Act

Ohio House Bill 250, also referred to as the “Ohio Anti-Corruption Act,” aims to amend several sections of the Revised Code related to campaign finance regulations, the definition and operation of political entities, restrictions on contract awards based on political contributions, and the appointment of deputy registrars. The excerpts provided focus primarily on definitions of terms, reporting requirements for contributions and expenditures, limitations on contributions, restrictions on using campaign funds for personal use, prohibitions on certain contributions and contract awards, and regulations concerning deputy registrars.

Key Themes and Most Important Ideas/Facts:

1. Definitions and Scope of Regulation: The bill significantly expands and clarifies definitions related to political activities subject to regulation.

• Political Party: Defined as a group of voters meeting specific vote thresholds in the most recent gubernatorial or presidential election. (Lines 43-48)
• Candidate: The definition is broadened to include anyone who receives contributions or makes expenditures “for the purpose of bringing about the person’s nomination or election to public office,” even before or after an election. It also includes persons giving consent for others to do so or appointing a campaign treasurer. Joint candidates for governor and lieutenant governor are considered a single candidate. Exclusions include candidates for county/state central committee, presidential elector, and national convention delegates. (Lines 52-62, 694-700)
• Continuing Association: This term is defined, but the provided excerpt does not detail the definition. (Line 63)
• Contribution: Broadly defined to include various forms of financial or in-kind support, including loans, gifts, forgiveness of indebtedness, and payments for personal services. Specific inclusions are donations to state or county political parties (except those in Levin accounts) and contributions to political contributing entities. (Lines 116-137)
• Expenditure: Defined as the disbursement or use of a contribution to influence an election or make a charitable donation. (Lines 165-168)
• Personal Expenses: Defined to include ordinary expenses for accommodations, clothing, and food. (Lines 186-188)
• Public Office: Defined to include various elected and appointed positions at the state, county, municipal, township, or district level, as well as US Senator and Representative. (Lines 195-202)
• Anything of Value: Defined with the same meaning as in section 1.03 of the Revised Code. (Lines 203-205)
• Beneficiary of a Campaign Fund: Defined as a candidate, public official/employee for whose benefit a campaign fund exists, or other individuals using the fund. (Lines 206-211)
• Independent Expenditure: Defined as an expenditure advocating for the election or defeat of an identified candidate that is not made in coordination, cooperation, or consultation with the candidate or their campaign. The bill establishes presumptions for when an expenditure is considered coordinated. (Lines 248-274)
• Separate Segregated Fund and Federal Election Campaign Act: Definitions are provided, aligning with federal law. (Lines 300-307)
• Restricted Fund: Defines a specific fund state or county political parties must establish under division (A)(1) of 3517.1013. (Lines 308-311)
• Lawfully: Defined as “not prohibited by any section of the Revised Code, or authorized by a final judgment of a court of competent jurisdiction.” (Lines 326-329)
• Internet Identifier of Record: Defined with the same meaning as in section 9.312 of the Revised Code. (Lines 338-340)
• Address: Clarified to mean standard postal address components, with exceptions for political contributing entities which can use their treasurer’s address or a PO Box. (Lines 914-932)
• Statewide Candidate: Defined for contribution limit purposes, including Governor/Lt. Governor (jointly) and other specified state offices. (Lines 978-984, 1000-1006)
• Senate Candidate and House Candidate: Defined as candidates for state senator and state representative, respectively. (Lines 1007-1010)
• Primary Election Period and General Election Period: Defined for candidates, establishing specific timeframes for contribution limits. (Lines 1011-1039)
• Member (of PAC/PCE): Defined for purposes of independent expenditures, including those who contribute to the entity. (Lines 1662-1669)
• State Elective Office: Defined for specific sections, aligning with section 3517.092. (Lines 2566-2568)
• Foreign National: Redefined to include not only those under federal law but also corporations 20% or more owned by foreign individuals or entities. (Lines 2609-2627)

1. Campaign Finance Reporting Requirements (Section 3517.10): The bill outlines detailed reporting requirements for various political entities.

• Who Must File: “Every campaign committee, political action committee, legislative campaign fund, political party, and political contributing entity” must file statements of contributions and expenditures. (Lines 399-402)
• Contents of Statements: Statements must include detailed information about contributions (month, day, year, donor name/address/employer/occupation) and expenditures (month, day, year, recipient name/address, purpose). (Lines 505-560, 671-679)
• Special Reporting for “Doing Business” Persons: For entities “doing business” with state elected officers (receiving over $5000 in payments), the reporting requirements include identifying officers, directors, principal shareholders, partners, owners, or members. (Lines 561-580)
• Electronic Filing and Signatures: Statements can be filed electronically with the Secretary of State or board of elections. Electronic signatures meeting specific criteria (unique to signer, verifiable, etc.) are required for electronic filings. (Lines 685-693, 872-879, 1997-2014)
• Statement Frequency: The bill mentions monthly and two-business-day statements. (Lines 787-790)
• Record Preservation: The Secretary of State must preserve contribution and expenditure information from electronic filings for at least ten years. (Lines 880-890)

1. Contribution Limitations (Section 3517.102): The bill sets specific limits on contributions between different types of political entities and to candidates.

• Political Action Committee Limits: A PAC cannot contribute more than $10,000 to another PAC or political contributing entity per calendar year, unless affiliated. (Lines 1199-1205)
• State Political Party Limits: A state political party cannot contribute more than $10,000 to a statewide candidate in a primary or general election period, $10,000 to a senate candidate per election period, and $10,000 to a house candidate per election period. They can contribute up to $15,000 to a county political party per election period, unless the county party has a state candidate fund, in which case the limit is $10,000 per election period. They also cannot contribute more than $10,000 to a PAC or political contributing entity annually unless affiliated. (Lines 1264-1289)
• County Political Party Limits: County political parties have limits on contributions to campaign committees of senate and house candidates whose districts overlap with the county. They also cannot contribute more than $10,000 to a statewide candidate in a primary or general election period, $10,000 to another county political party per election period, and $10,000 to a PAC or political contributing entity annually unless affiliated. (Lines 1293-1322)
• Political Contributing Entity Limits: Similar to PACs, a political contributing entity cannot contribute more than $10,000 to another political contributing entity or PAC per calendar year, unless affiliated. They also have the same limits as state political parties for contributions to statewide, senate, and house candidates ($10,000 per election period). (Lines 1347-1352, 1374-1380)
• Acceptance Limits: Entities are prohibited from knowingly accepting contributions that exceed these limits. (Lines 1404-1419, 1462-1470, 1547-1555)
• Affiliation and Aggregation Rules: Contributions made by or accepted from affiliated PACs/PCEs are treated as coming from a single entity for limit purposes. Similarly, contributions from national, state, and county political parties are aggregated for limitation purposes. (Lines 1206-1212, 1380-1386, 1565-1577, 1590-1607)

1. Independent Expenditures (Section 3517.105): Regulations for reporting expenditures made independently of a candidate’s campaign.

• Reporting Thresholds: Independent expenditures trigger reporting requirements based on the type of entity and the office of the candidate being supported or opposed. The threshold is $100 for local candidates, $250 for General Assembly candidates, and $500 for statewide candidates. (Lines 1670-1678)
• Statement Requirements: Reports must include the date and amount of each independent expenditure and the candidate involved. (Lines 1725-1728)
• Judicial Candidates: Expenditures by political parties for communications advocating for or against a judicial candidate are considered independent expenditures subject to this section. (Lines 1789-1796)

1. Use of Campaign Funds for Personal Use (Section 3517.13(O)): The bill explicitly prohibits the conversion of campaign funds for personal use by the beneficiary or any other person. It also prohibits knowingly giving campaign funds to a beneficiary or other person for personal use. (Lines 2450-2456)

• Allowable Expenses: The bill outlines specific categories of expenses that may be paid or reimbursed by a campaign fund, provided they are a “necessary and ordinary expense, consistent with generally accepted campaign practices.” These include expenses related to candidate travel, food, and necessary care of dependents during campaigning or elected service. (Lines 2460-2530)
• Expense Allocation: For mixed expenses, the bill allows for separation using “any reasonable accounting method.” (Lines 2540-2546)
• Mileage Reimbursement: Allows for mileage reimbursement at a rate not exceeding the IRS rate. (Lines 2555-2558)

1. Restrictions on Contract Awards Based on Contributions (Section 3517.13(I), (J), (K), (L), (M), (N)): The bill introduces prohibitions on state and political subdivision agencies awarding certain contracts to individuals or businesses who have made contributions above a threshold to the public officer with ultimate responsibility for the award.

• Individual Contributions: Prohibits contracts (other than those let by competitive bidding or incidental to such contracts) to individuals who have made contributions exceeding $1000 to the awarding officer or their campaign committee within the previous two calendar years. (Lines 2333-2342)
• Business Contributions: Prohibits contracts (other than competitive bidding or incidental) to a corporation or unincorporated business where an owner of more than 20% has made contributions exceeding $1000 to the awarding officer or their campaign committee within the previous two calendar years. (Lines 2371-2383)
• Defining “Ultimate Responsibility”: Specifies that for officers appointed by the governor (excluding board/commission members), the Governor’s office holds ultimate responsibility. For other multi-member entities, the ultimate responsibility is with the entity collectively. (Lines 2384-2402)
• Exemptions: Exemptions to these restrictions include contracts awarded by certain boards and courts acting collectively, and actions of the controlling board. (Lines 2409-2422)
• Applicability Period: The restrictions apply to contributions made while the officer holds the office and while they were a candidate for that office. They do not apply to contributions made to other candidates or officeholders. They also have specific rules regarding contributions by spouses, partners, shareholders, etc., made before or after their association with the entity or marriage. (Lines 2423-2448)

1. Prohibition on Foreign National Contributions (Section 3517.13(W)): The bill explicitly prohibits foreign nationals from making contributions, expenditures, or independent expenditures.

• Solicitation and Acceptance: Prohibits candidates, committees, entities, funds, or parties from soliciting or accepting such contributions. (Lines 2605-2609)
• Remedies: The Secretary of State may direct entities to return or refund the value of prohibited foreign national contributions. (Lines 2609-2614)
• Expanded Definition of Foreign National: As noted in point 1, the definition goes beyond federal law to include corporations with significant foreign ownership. (Lines 2615-2627)

1. Restrictions on Political Party and Corporate/Labor Organization Contributions (Section 3517.13(X)):

• Restricted Funds: Prohibits state or county political parties from depositing contributions into or making contributions/expenditures from their restricted funds. (Lines 2634-2641)
• Corporate/Labor Contributions: Generally prohibits corporations and labor organizations from making contributions to or expenditures on behalf of political parties, campaign committees, legislative campaign funds, PACs, or political contributing entities. (Lines 2642-2645)
• Exceptions: Explicitly states that gifts made pursuant to sections 3517.1012 (deposit and disbursement statements) and 3517.1013 (gift and disbursement statements for Levin accounts) and donations to transition funds (3517.1014) are not violations of this prohibition. (Lines 2736-2745)
• Internal Communications Exception: This prohibition does not apply to communications sent exclusively to members, employees, officers, or trustees of the organization/corporation or their immediate families, or if an unintended wider distribution occurs. (Lines 2761-2771)

1. Deputy Registrar Appointments (Section 4503.03): The bill amends the process and restrictions for appointing deputy registrars.

• Who Can Be Deputy Registrar: Allows for county auditors, clerks of court, individuals, and nonprofit corporations to be designated. (Lines 2828-2833)
• Consideration of Performance: Requires the registrar to consider customer service performance in the competitive selection process. (Lines 2851-2854)
• Requirement for At Least One: Generally requires at least one deputy registrar in each county, with specific exceptions if no eligible entities agree to serve. (Lines 2855-2873)
• Restrictions Based on Contributions: Crucially, the bill prohibits the registrar from designating a person as a deputy registrar if that person or their spouse or immediate family member has made contributions exceeding $100 to the registrar within the current or previous three calendar years. This applies unless the person is an elected official (county auditor or clerk of court) already acting in an official capacity. Existing contracts with deputies subsequently elected to local office may be renewed. (Lines 2883-2895, 2899-2904)
• Other Restrictions: Prohibits persons with current contracts for motor vehicle inspections from being deputy registrars. (Lines 2905-2908)
• Rules Governing Deputy Registrars: The registrar is required to adopt rules covering contract terms, bond amounts, office requirements, equipment leasing, office hours, allowing nonprofit corporations, procedures for collecting reinstatement fees, allowing advertising and vending machines in offices, and other service standards. (Lines 2945-3004)
• Contract Duration and Renewal: Contracts are generally for five years (since June 29, 2014), with exceptions for shorter terms or one-year extensions for exemplary service. (Lines 3055-3064)
• Removal of Deputy Registrars: The registrar, with director approval, must remove deputies who violate the Revised Code, rules, or contract terms, or who engage in unbecoming conduct or conduct inconsistent with efficient operation. The registrar has investigatory powers, including issuing subpoenas. A hearing is not required for termination for cause. (Lines 3065-3115)

Summary of Main Points:

• HB 250, the “Ohio Anti-Corruption Act,” proposes significant amendments to Ohio’s campaign finance laws and related statutes.
• It broadens definitions of “candidate” and “contribution,” and establishes a new definition for “independent expenditure” with coordination presumptions.
• Detailed reporting requirements for contributions and expenditures are maintained and expanded, with an emphasis on electronic filing and the identification of individuals associated with entities “doing business” with state officials.
• Specific contribution limits are imposed on political parties, political action committees, and political contributing entities, both in making and accepting contributions to candidates and other entities.
• Strict rules are established regarding the personal use of campaign funds, defining allowable expenses and prohibiting conversion for personal benefit.
• The bill creates a significant new restriction on the awarding of state and political subdivision contracts, prohibiting contracts with individuals or businesses (with significant ownership) who have contributed above a threshold to the awarding public officer. This includes detailed exceptions and applicability rules.
• A clear prohibition is introduced on foreign national contributions and solicitation/acceptance of such contributions, with a broad definition of “foreign national.”
• Restrictions are placed on the use of political party “restricted funds” and generally prohibit corporate and labor organization contributions, with specific exceptions for certain types of lawful gifts and internal communications.
• The bill amends the regulations for appointing deputy registrars, notably adding a restriction based on contributions to the Registrar of Motor Vehicles and outlining the process and rules for deputy registrar operations and oversight.

This briefing document provides an overview of the major provisions and changes proposed in the provided excerpts of Ohio House Bill 250 as introduced. Further analysis of the full bill text would be required for a comprehensive understanding of all proposed changes and their potential implications.