M.G.L. c. 55 regulates all campaign finance activity for state, county, city and town elections and regional school and other district elections in the Commonwealth. 970 CMR 1.00 provides for the regulation of activity which is often engaged in by political committees. It establishes specific guidelines for transactions such as debt settlements, the acceptance and reporting of campaign contributions and loans from candidates to their political committees.

(1) Authority. 970 CMR 1.00 is promulgated under authority and in conformity with M.G.L. c. 55, §§ 3 and 6 and M.G.L. c. 30A.

(2) Amendments. 970 CMR 1.00 may be amended at any time, and such amendments shall take effect in accordance with M.G.L. c. 30A, § 6.

(3) The term political committee as used in 970 CMR shall, unless the context otherwise requires, also apply to a candidate's account, as provided for in M.G.L. c. 55, § 2, and shall apply to all transactions and activities of said account.

(4) The term candidate as used in 970 CMR shall, unless the context otherwise requires, also apply to the candidate committee organized on behalf a candidate in accordance with M.G.L. c. 55.

(5) In any town having elections in November, candidates and committees required to file reports relating to such elections shall file reports in accordance with the schedule established in M.G.L. c. 55, § 18(b) for cities.

(1) Corporate Debts. Corporate debts for goods and services may not be settled for less than the amount owed unless both the business corporation and political committee treat the debt in a commercially reasonable manner. 970 CMR 1.03 shall not apply to a debt which is the subject of a dispute between a political committee and a creditor involving questions of satisfactory delivery of goods or services, or the amount owed. In order for a settlement of such a debt to occur all of the following requirements must be met:

(a) Credit was extended in the ordinary course of business similar to terms granted to other political and non-political debtors.

(b) The committee has made commercially reasonable efforts to satisfy the debt.

(c) The creditor has pursued remedies to seek payment in the same manner it normally takes against debtors in a financial condition similar to the committee.

(d) The settlement is similar to others the creditor has made with other debtors, and similar to settlements the committee has proposed to its other creditors.

(e) The length of time prior to settlement is consistent with normal business and trade practice.

(f) A political committee or candidate must file with this office a Statement of Settlement, which is subject to review, within 30 days of any such settlement. All Statements of Settlement must be signed by the Treasurer and Candidate of the political committee, and a duly authorized agent of the corporation.

(2) Noncorporate Debts. Debts to individuals or unincorporated proprietors may be settled for less than the amount owed in the same manner as provided in 970 CMR 1.03(1), or by meeting each of the following requirements:

(a) The amount forgiven is set forth in a letter of forgiveness and when considered together with amounts contributed from the same individual, is no more than the amount said individual may contribute in accordance with M.G.L. c. 55 or 970 CMR.

(b) The political committee must report any debt which is forgiven as an in-kind contribution.

(3) Definition of "Liability". For purposes of M.G.L. c. 55, a "liability" is an obligation to make an expenditure which arises when a candidate or political committee, or person acting on behalf of a candidate or political committee, receives the proceeds of a loan or a good or service for the purpose of influencing the nomination or election of a candidate or for the purpose of promoting or opposing a question submitted to the voters, or is otherwise legally obligated to make a payment.

(1) A contribution which is made by a check which reflects a joint checking account of two individuals shall be presumed to be from the individual whose signature appears on the check, unless other information is provided, in writing, by either individual whose names appear on the check, that the true contributor(s) is different than the signature that appears on the check.

(2) No check reflecting the name of a business corporation may be solicited or received by any candidate or political committee, other than a ballot question committee.

(3) A contribution by a partnership shall be attributed to each partner of the partnership:

(a) In direct proportion to his or her share of the partnership profits, according to instructions which shall be provided by the partnership to the political committee or candidate; or

(b) By agreement of the partners, as long as:

1. Only the profits of the partners to whom the contribution is attributed are reduced (or losses increased), and

2. These partners' profits are reduced (or losses increased) in proportion to the contribution attributed to each of them.

A contribution by a partnership shall not exceed the limitations on contributions by individuals established by M.G.L. c. 55. No portion of such contribution, except a contribution to a ballot question committee, may be made from a corporation subject to M.G.L. c. 55, § 8 that is a partner.

(4) Contributions which are received by ticket sellers must be disclosed as contributions from original and true contributors in the amount given by them.

(5) Anonymous contributions may not be accepted and shall, if unable to be returned to the contributor, be donated within 30 days of receipt, to an entity or entities specified in the residual funds clause, M.G.L. c. 55, § 18, or in a manner consistent with 970 CMR 2.05(2)(w) or 970 CMR 2.06(3)(a). Candidates and political committees must keep records reflecting such contributions.

(6) Any corporation or any other entity which is prohibited from making a particular contribution may not reimburse an individual for any contribution made by that individual.

(7) Any contribution received by a candidate or political committee, which is returned to the contributor in its original form, is deemed to have not been accepted and therefore need not be reported.

(8) Candidates and committees shall exercise their best efforts to determine whether contributions are legal at the time of receipt. Any contribution which is believed by a candidate or committee to be illegal under M.G.L. c. 55 or any other law prior to its deposit into the account of a political committee or candidate shall be returned to the contributor in its original form. Any contribution which is believed by a candidate or committee to be illegal, subsequent to its deposit, shall be refunded to the contributor immediately. This refund shall be in the form of a check written to the contributor on the account of the candidate or political committee into which the original contribution was deposited. When the director determines a contribution to be illegal, the director may either require the contribution to be refunded to the contributor, or alternatively, he may require the contribution to be disgorged through a payment by the candidate or committee to the Commonwealth.

(9) A political committee or candidate may elect to refund a contribution, subsequent to its deposit, under the following circumstances:

(a) The political committee or candidate determines that the receipt of the particular contribution creates an appearance of a conflict of interest or other possible impropriety. Such a refund would be appropriate, for example, where the receipt of a particular contribution might reasonably be interpreted to create an impression that a contributor can improperly influence or unduly enjoy official favor, or exercise undue influence.

(b) The political committee or candidate has established, or establishes, a refund policy regarding contributions from a particular category or type of contributor. This policy, and the refund of such contributions, must be stated and applied in an open and consistent manner.

(c) Except as provided in 970 CMR 1.04(9)(d), contributions may be refunded to some or all contributors making contributions to a candidate or committee for any reason if refunds are made within 90 days of receipt of such contributions.

(d) Contributions may be refunded within 90 days of receipt because of the termination of a particular candidacy. Such refunds shall be calculated in accordance with 970 CMR 1.04(9)(d)1. or 2.:

1. refunds may be made on a pro rata basis; or

2. refunds may be made on a "last in, first out" basis, i.e., the most recent contribution will be refunded in full and the remaining balance will be used to refund each contribution in the reverse order of receipt.

(e) Except as expressly provided, 970 CMR 1.04 shall not be construed to affect the requirements of 970 CMR relating to the disposition of residual funds by candidates and political committees.

(10) Membership Communications. Communications from membership organizations, not including a corporation subject to M.G.L. c. 55, § 8, to its members and their families, on any subject, shall not be understood to be a contribution or expenditure.

(11) Money Orders. No person, candidate or political committee shall make a contribution of money, if the aggregate amount contributed in a calendar year exceeds $50.00, except by check, or by credit or debit card in accordance with 970 CMR 1.09. For the purposes of 970 CMR, the word "check" shall, unless the context otherwise requires, mean a check on which the contributor is directly liable or which is written on a personal, escrow, trust, partnership, business or other account which represents or contains the contributor's funds and shall not mean a certified check, cashier's check, treasurer's check, registered check, money order, traveler's check or other similar negotiable instrument.

(12) Contribution Limitations. Contributions from individuals, candidates and political committees to candidates and political committees shall comply with the contribution limitations set forth in the following chart:

¹ "Constitutional candidates" include candidates for governor, lieutenant governor, attorney general, state secretary, treasurer and receiver general, and auditor.

² PACs are committees that are not candidate committees, political party committees or ballot question committees. However, if the PAC (1) only receives contributions from individuals in an amount of $100* or less in any calendar year, (2) has been in existence for at least six months, and (3) contributes to five or more candidates, it may request a change in its status to that of a "people's committee."

³ Individuals under 18 years of age have a $25 annual aggregate contribution limit.

⁴ People's committees are prohibited from receiving more than $100* in a calendar year from any individual.

⁵ The maximum aggregate contribution which may be made to all political party committees of one party, including committees organized on the state, ward, town, and city level, is $5,000.

⁶ Legislative and executive agents are also subject to the aggregate limitation on contributions placed on individual contributors.

⁷ Contributions only for "enhancement of the political future of the candidate."

⁸ M.G.L. c. 55, § 6B does not specify a limit on how much can be donated to another ballot question committee, except to state that such contributions must be "consistent with the purpose for which [the committee was] organized."

⁹ A PAC, people's committee, or party committee is not subject to the $500 limit on contributions to a ballot question committee during a calendar year if such contributions "enhance the principle for which the committee was organized."

¹⁰ This limit is only on contributions made in money. There is no limit on in-kind contributions by party committees to candidates.

¹¹ A candidate contributing from the candidate's own funds is subject to the $500 individual limit, not the $100 limit.

* Subject to biennial indexing.

(13) A candidate or ballot question committee may establish a separate account to receive money to pay for legal expenses arising from a recount. The funds received, if deposited into this separate account and not raised through the use of funds in the candidate's or ballot question committee's campaign account, are not "contributions" subject to the restrictions and reporting requirements of M.G.L. c. 55.

(1) All loans by a candidate to the political committee organized on behalf of that candidate are subject to the following:

(a) If the candidate borrows money with interest from a banking institution in the ordinary course of business, and if he lends those same funds to his political committee, he may charge his committee the exact terms he is being charged by the banking institution, provided however, that he may do so only on the exact amount he has loaned to his committee from funds loaned to him by the banking institution.

(b) If a candidate makes a loan to his political committee from his own personal funds without having secured a bank loan he may not charge his committee interest or any other costs.

(2) Statutory Limitations.

(a) Candidates for any statewide office and for the offices of state senator and state representative shall not loan, per election, more than the following amounts to their committee:

(b) For the purpose of 970 CMR 1.05, the phrase "per election" shall mean any regular or special preliminary or primary election, or any regular or special general election and shall include the period between the prior relevant primary or election and the following primary or election.� For example, a state senator may loan his committee $50,000 for the period between the prior November election and the following September primary which occurs approximately 22 months later, and loan an additional $50,000 for the period between that September primary and the following November election.

(c) All other candidates may make loans to their committees in unlimited amounts.

(1)(a) Pursuant to and only for the purposes of the contribution limitations in M.G.L. c. 55, § 6, contributions shall be considered to be made by a single political committee if made by more than one political committee established, financed, maintained, or controlled by any person, including any parent committee of a subsidiary committee or any person other than a natural person.

(b) Two or more political committees may be considered to be a single political committee for the purposes of the contribution limitations in M.G.L. c. 55, § 6, if such committees make contributions to one or more of the same candidates or political committees and if at least one of the following indicia of a person establishing, financing, maintaining or controlling such committees exist:

1. Such person possesses one or more of the following with respect to each of the political committees:

a. Ownership of a controlling interest in voting rights, shares or securities of one or more of the political committees in question or of a person having control over such committee or committees, if any;

b. The authority, power, or ability to direct or control the activities of one or more of the political committees in question or of a person having control over such committee or committees, if any; or

c. The authority, power, or ability to hire, appoint, discipline, discharge, demote, or remove or otherwise influence the decision of the officers or members of one or more of the political committees in question or of a person having control over such committee or committees, if any.

2. Each of the political committees having the same, or substantially the same, persons as principal officers or members;

3. Each of the political committees reach decisions regarding expenditures made to one or more candidates or political committees in cooperation, consultation or concert with, or at the request or suggestion of, each other or of a person having control over such committees, if any;

4. The transfer of funds between the political committees which represent a substantial portion of the funds of either the transferor or transferee political committee;

5. Contributions to the political committees by the same person or persons, which contributions represent a substantial portion of the contributions received by each of said political committees; or

6. The use of shared administrative resources, including but not limited to office space, equipment or personnel, by the political committees.

(2)(a) Pursuant to and only for the purposes of the contribution limitations in M.G.L. c. 55, § 6, contributions made by the state committee of a political party and contributions made by any ward or town political committee of the same political party shall be considered to be made by separate political committees.

(b) Pursuant to and only for the purposes of the contribution limitations in M.G.L. c. 55, § 6, contributions made by a political committee established, financed, maintained, or controlled by one or more ward or town political committee of a political party, including but not limited to a city political committee, and contributions made by such ward or town political committee(s) shall be presumed to be made by one political committee.

(c) Pursuant to and only for the purposes of the contribution limitations in M.G.L. c. 55, § 6, contributions shall be presumed to be made by one political committee if made by political committees established, financed, maintained, or controlled by:

1. a single corporation or its subsidiaries (to the extent such political committees are permitted pursuant to M.G.L. c. 55);

2. an organization of national or international unions or local central bodies;

3. a single national or international union or any of its local unions or other subordinate organizations; or

4. a membership organization, including but not limited to a trade or professional association or any state or local entities related to such organization or association.

(d) The presumptions contained in 970 CMR 1.06(2)(b) and 970 CMR 1.06(2)(c) may be rebutted if the political committees in question present credible evidence that they have not made contributions in cooperation, consultation or concert with, or at the request or suggestion of each other or of any person who has established, financed, maintained or controlled such political committees. If the presumptions contained in either 970 CMR 1.06(2)(b) or 970 CMR 1.06(2)(c) are rebutted by credible evidence, the political committees in question nevertheless remain subject to the provisions of 970 CMR 1.06(1)(b).

(1) Generally. Contributions gathered and delivered to a candidate through an intermediary or conduit ("bundled" contributions) are treated not only as contributions from the person making the contribution but also as contributions from the intermediary or conduit, if the intermediary or conduit is a "regulated intermediary," and at least one of the contributions is greater than $100, subject to biennial indexing.

(2) Regulated Intermediaries. Regulated intermediaries include:

(a) political action committees and their officers, employees and agents;

(b) legislative agents and executive agents, and employees or agents acting on their behalf;

(c) lobbying organizations and their officers, employees or agents acting on behalf of the organization; and

(d) persons responsible for delivering "pooled contributions" from a corporation's officers or employees.

(3) Contributions "Through an Intermediary or Conduit."

(a) contributions "through an intermediary or conduit" include either:

1. contributions delivered, in person or by mail, to a particular candidate or candidate's committee; or

2. contributions to a particular candidate or candidate's committee made in a manner that identifies in writing the person who arranged the making of the contributions.

(b) personal contributions made by a regulated intermediary are not made "through an intermediary or conduit."

(c) contributions from a political action committee or lobbying organization which are delivered by an officer or agent of the political action committee or lobbying organization are not made "through an intermediary or conduit."

(d) the reporting and attribution requirements of M.G.L. c. 55, § 10A apply only if two or more contributions are made through a regulated intermediary.

(e) contributions received by a candidate pursuant to a written or oral solicitation by a regulated intermediary are not subject to the provisions of M.G.L. c. 55, § 10A unless the regulated intermediary delivers the contributions to a candidate or the contributions are made in a manner that indicates, in writing, that the contributions were arranged by the regulated intermediary.

(4) Reporting of bundled contributions.

(a) Regulated intermediaries who deliver or arrange for the making of contributions to a candidate shall file reports, on a form prepared by the director, with the office, or a city or town election official, if applicable, and shall provide a copy of the completed report to the candidate, identifying the original source and the intended recipient of each contribution. A copy of the report shall be delivered to the candidate on the date the candidate receives the contribution, and within ten days thereafter, the original report shall be filed with the director, or with a city or town election official, if applicable.

(b) The report of bundled contributions shall set forth the following information:

1. The name and residential address of the original contributors;

2. The occupation and employer of the original contributors, if the contribution is $200 or more;

3. The amount of each contribution;

4. The intended recipient;

5. The name and residential address of the regulated intermediary; and

6. The basis for the regulated intermediary's being regulated by M.G.L. c. 55, § 10A, (whether the intermediary is a PAC, legislative agent, person arranging pooled corporate contributions, or other regulated intermediary);

7. The dates contributions are delivered to a candidate;

(c) Candidates receiving contributions through regulated intermediaries shall report only the original source of the contributions on their candidate reports and attach a copy of the report required to be filed with the candidate by 970 CMR 1.07(4)(a) and (b).

(d) Candidates shall keep copies of the reports received from regulated intermediaries for six years from the date of the relevant election, together with other records required to be kept by M.G.L. c. 55, § 2.

(1) Generally. All candidates and political committees must report both the occupation and the employer or employers of each person whose contribution or contributions in the aggregate equal or exceed the sum of $200 within any one calendar year. Contributions received after the first $200 is received during a calendar year must be refunded if occupation and employer information is not obtained and reported after the exercise of a candidate or committee's best efforts, as defined in 970 CMR 1.08(2).

(2) Exception to Obligation to Disclose - Best Efforts. Contributions may be kept by a committee if the committee, after exercising best efforts to obtain the information, is not able to obtain the information from a contributor after making a request when the contribution is solicited and an additional written request. For the purposes of 970 CMR 1.08, best efforts shall include the following:

(a) The first request for such information must be made, orally or in writing, at the time the contribution is solicited, if a contribution is $200 or more.

(b) If the required information regarding both occupation and employer is not provided at the time of receipt of the contribution, an additional written request addressed to the contributor must be made within 45 days of a committee's receipt of any contribution which brings the total received to $200 or more during a calendar year. The written request must specifically identify the contributor.

(c) If the initial request is made at the time of solicitation and the subsequent written request is made in a timely manner as provided in 970 CMR 1.08(2)(b) and the requested information is not provided by the contributor, the committee may keep the contribution without reporting the occupation and employer information to the director or the city, town or district election official. Committees should note on their campaign finance reports, however, that a letter was sent in compliance with 970 CMR 1.08(2)(b).

(d) If a candidate or treasurer of a committee determines that information provided by a contributor is incomplete, but wishes to keep the contribution, the committee must keep records reflecting all attempts made by the committee to obtain the required information.

(3) Obligation to Report Additional Information. If a committee files a campaign finance report which contains incomplete occupation and employer information regarding a contributor and subsequently obtains the required information, the committee must submit written notification to the director� or city, town or district election official reflecting receipt of the correct information, and supplementing the information previously filed. Such supplemental information must be submitted within 30 days of its receipt by the committee.

(1) Definitions. For the purpose of making and receiving contributions by credit or debit card pursuant to M.G.L. c. 55, § 9 and 970 CMR 1.09, the following terms shall have the following meanings:

Cardholder means the person or political committee whose name appears on a credit or debit card and who is directly liable for the payment of any credit extended or funds expended.

Card Issuing Bank means the bank or other financial institution that issues a credit or debit card.

Credit or Debit Card means a card or other similar device issued by a card issuing bank or other business authorizing the cardholder to buy goods or services.

Merchant Provider means a bank or other business authorized to process credit or debit card transactions.

Paper Record means a credit or debit card receipt or other printed record documenting a credit or debit card transaction.

Vendor means an individual or entity other than a merchant provider that provides services for campaign fundraising on the Internet to candidates and political committees.

(2) Contributions by Credit or Debit Card Made Over the Internet.

(a) Credit or Debit Card and Internet Agreements. A candidate or political committee may enter into an agreement with a vendor or merchant provider in order to receive contributions by credit or debit card over the Internet. Any such agreement must comply with M.G.L. c. 55, § 9 and 970 CMR 1.09. In addition to any other requirements of 970 CMR 1.09, such agreement must demonstrate compliance with the following:

1. The financial agreement between the candidate or political committee and the vendor or merchant provider must be consistent with customary and usual business practices.

2. The vendor or merchant provider may not provide a discount or other financial incentive to a candidate or political committee that is not available to any other candidate, political committee or the general public.

3. The candidate or committee must, in addition to being responsible for any portion of contributions deducted during processing by the vendor or merchant provider, also pay any applicable additional fees established by the vendor or merchant provider.

(b) Web Site: Screening and Compliance. The vendor or merchant provider, or the candidate or political committee, shall cause to be displayed on the contributor's computer screen appropriate questions requiring a response from the contributor to determine whether the source and amount of a contribution complies with M.G.L. c. 55 and 970 CMR 1.09. Such questions shall require the contributor to answer with an affirmative act such as clicking the cursor in a box or pressing the enter key on the computer keyboard. In addition, a Web site that is used to solicit contributions by credit or debit card must:

1. clearly identify the name of the candidate or political committee that is using the Web site to solicit such contributions via the Internet,

2. require that contributors certify by making an affirmative action that the contributor is responsible for paying all charges incurred in using the credit or debit card to make a contribution and that the contributor's personal funds will be the true source of the contribution in accordance with M.G.L. c. 55, § 10, and

3. make a clear distinction between information that is required by law or regulation and information that is optional, if any. For example, a Web site could indicate required information such as a contributor's name and residential address in red and optional information such as a contributor's interest in working as a volunteer in green.

(c) Confirmation of Contribution. The vendor or merchant provider, or the candidate or political committee must promptly send written confirmation of each credit or debit card contribution made over the Internet to the contributor by electronic mail or, if the contributor does not have an email address, by first class mail, postage prepaid.

(3) Credit or Debit Card Contributions Not Made Via the Internet - Credit or Debit Card Agreements. A candidate or political committee may enter into an agreement with a merchant provider in order to receive contributions by credit or debit card other than via the Internet except as prohibited in 970 CMR 1.09(4). All contributions received pursuant to 970 CMR 1.09(3) must be documented by a paper record signed by the contributor at or before the time the committee processes the contribution. Any such agreement between a candidate or political committee and a merchant provider must comply with M.G.L. c. 55, § 9 and 970 CMR 1.09, including, but not limited to 970 CMR 1.09(2)(a)1. through 3.

(4) Credit or Debit Card Contributions by Phone. Such contributions are prohibited.

(5) Recordkeeping and Disclosure.

(a) A candidate or political committee soliciting or receiving contributions by credit or debit card shall maintain printed and, if a contribution is received over the Internet, electronic and back-up printed records of each contribution. Such records shall include the:

1. name and residential address of an individual contributor;

2. date received and amount of the contribution;

3. occupation and employer if the contribution is equal to or greater than $200 or if the aggregate of all contributions received from a contributor within any one calendar year is equal to or greater than $200;

4. any costs or fees deducted by or paid to the vendor or the merchant provider;

5. credit or debit card number and expiration date of the contributor's credit or debit card, unless pursuant to a written agreement a vendor or merchant provider has agreed to maintain such records on behalf of the candidate or committee; and

6. the billing address used by the contributor for receipt of credit or debit card bills, if different from the residential or business address of the contributor.

(b) Contributions made by credit or debit card shall be disclosed as received by a candidate or political committee on the day that the contribution is transmitted to the vendor or the merchant provider by the issuing bank.

(c) A candidate or political committee receiving contributions by credit or debit card must report as receipts, on the candidate or committee's campaign finance reports, the full (gross) amount of each contribution before the payment of any fees or deductions to the vendor, card issuing bank or the merchant provider. In addition, all fees paid to or deducted from contributions by a vendor or merchant provider for processing such contributions are expenditures which must be reported in accordance with M.G.L. c. 55 and 970 CMR 1.09.

(d) In accordance with 970 CMR 1.04(8), candidates and political committees must review all contributions received by credit or debit card to determine that such contributions comply with both the source and limitation requirements of the campaign finance law. Any contribution determined to be illegal or in excess of the limits of M.G.L. c. 55 shall be refunded in accordance with 970 CMR 1.04(8) to the contributor.

(e) Candidates and political committees that receive credit card or debit card contributions must obtain processing information from the vendor or merchant provider reflecting contributions received, which itemizes actual deposits made by the merchant provider or vendor to the candidate or committee's account, and lists all contributions that cleared or were declined by the issuing bank and also must obtain all information required by 970 CMR 1.09(5)(a);

(f) After receiving the processing information from the merchant provider or vendor, the candidate or political committee must reconcile the information to the information provided by the candidate or committee's bank regarding actual deposits, to ensure the accuracy of information the candidate or committee will file with OCPF.

(6) Depository Candidates/Committees.

(a) Within seven business days of receipt of the contribution from the card issuing bank, the vendor or merchant provider shall deposit the amount of the contribution into the candidate or political committee's depository account, unless the agreement between the candidate or political committee and the vendor or merchant provider authorizes the vendor or merchant provider to deduct transaction costs or fees from a credit or debit card contribution(s) received in which case the vendor or merchant provider may deposit the net proceeds of such contribution(s) into the candidate or political committee's depository account.

(b) Each candidate and each treasurer of a political committee required to designate a depository account shall file reports of credit or debit card receipts with the director. These reports shall be filed on the fifth day of each month, complete as of the first day of that month and, during the last six months of an election year, on the 20^th day of each month complete as of the 15^th day of that month, if during such reporting period a credit or debit card contribution(s) is deposited into the candidate or political committee's depository account. The reports shall contain the following information regarding the credit or debit card contributions deposited in the candidate or committee's account during the reporting period:

1. The full name and residential address of each contributor where the contribution was in excess or $50.00 or where the aggregate of all contributions received from that contributor within the calendar year has exceeded $50.00, along with the date of the deposit and amount of contribution, and the contributor's occupation and employer if aggregate contributions by that contributor has exceeded $200.00 for the calendar year. In the case of a credit or debit card contribution by a trust, foundation or association, other than a political committee, the names and addresses of its principal officers shall also be disclosed as required by M.G.L. c. 55, § 10;

2. The total amount of contributions itemized pursuant to 970 CMR 1.09(6)(b)(1);

3. The total amount of contributions $50.00 and under;

4. The total amount of credit and debit card receipts; and

5. The total proceeds of credit and debit card contributions deposited in the committee account. If this amount is less than total amount of credit or debit card receipts for the reporting period due to a vendor or merchant provider having deducted a fee prior to depositing a contribution(s) into the candidate or committee's depository account in accordance with 970 CMR 1.09(6)(a), then the total amount of transactions costs or fees deducted by the vendor or merchant provider during the reporting period shall also be disclosed. This figure should be calculated by subtracting the aggregate proceeds of credit and debit card contributions deposited during the reporting period from the total amount of credit and debit card receipts reported pursuant to 970 CMR 1.09(6)(b)4.

(c) The information required to be forwarded in accordance with 970 CMR 1.09(6)(b) shall be submitted on forms approved by the director or electronically in compliance with M.G.L. c. 55, § 18C.

(d) Depository candidates and political committees that receive contributions by credit or debit card must request information from merchant providers or vendors and obtain information regarding contributions received in accordance with 970 CMR 1.09(5)(e) and perform the reconciliation required by 970 CMR 1.09(5)(f) prior to filing each report of contributions received with OCPF.

(1) Candidates and treasurers of political committees shall keep and preserve detailed accounts as required by M.G.L. c. 55, §§ 2 and 5 and 970 CMR 1.10.

(2) For the purpose of 970 CMR 1.10, the word "accounts" shall include all accounts, records and other documents, including but not limited to correspondence and fund raising materials, maintained or required by M.G.L. c. 55, M.G.L. c. 55C or 970 CMR by the candidate or candidate committee whether in written, electronic or other form. In addition, accounts shall include, but not limited to:

(a) bank accounts, bank statements, ledgers, canceled checks or other information relative to such bank accounts,

(b) bills, receipts, and other vendor information received in connection with any expenditure made or liability incurred for goods and services,

(c) copies of all contributor checks, contributor lists, card files, and other contributor information.

(3) Candidates and political committees shall keep all accounts required to be maintained under 970 CMR 1.00 separate and distinct from all other accounts and shall preserve such accounts for a period of six years from the date of the general election.

(4) The specific purpose of each expenditure made by check shall provide sufficient detail to demonstrate that an expenditure complies with the campaign finance law. Examples of such detail include the following:

(a) "Candidate radio ads" instead of "Ads."

(b) "5,000 bumper stickers" instead of "Printing."

(c) "Auto reimbursement" instead of "Travel."

(5) Candidates and treasurers of political committees which do not keep and preserve detailed accounts as required by 970 CMR 1.10 shall, at the director's request, exercise their best efforts to arrange with the candidate or committee's bank and vendors or other persons providing goods or services to the candidate or committee to provide the director with copies of all such accounts. The costs to arrange and provide copies of such accounts shall be paid by the committee.

(6) Candidates and treasurers of political committees must keep paper copies of all reports, correspondence, or other items filed electronically with OCPF for six years from the date of the general election.

(1) Definitions. For the purposes of M.G.L. c. 55, § 18C and 970 CMR 1.11, the following words shall have the following meanings:

Authentication shall mean the method used to identify a person signing and creating electronic signatures and records.

CPF ID Number shall mean the unique identification number assigned to a candidate or political committee by the Director pursuant to 970 CMR 2.07(10) and the unique identification number assigned to depository banks pursuant to M.G.L. c. 55, §§ 18C(c) and 19(e).

Depository Bank shall mean a financial institution which a candidate or political committee has designated as a depository for the campaign funds of such candidate or political committee in accordance with M.G.L. c. 55, §19(a).

EFS shall mean the OCPF Electronic Filing & Campaign Disclosure System that is the electronic reporting system developed for the submission, retrieval, storage and public disclosure of campaign finance reports and financial activity statements required to be filed with the Director pursuant to M.G.L. c. 55, §18C(a).

Election Cycle shall mean, for candidates seeking election in a regularly scheduled biennial state election, the period beginning on the first day of January following the most recent regularly scheduled biennial state election for that elected office and ending on the 31^st day of December following the next state election for that office, inclusive. For candidates seeking election in a legislative special election, election cycle shall mean the period beginning on the day the election is ordered by the Senate or House of Representatives and ending on the 20^th day after the special election. For political committees not organized on behalf of a candidate, election cycle shall mean the period beginning on the first day of January following the most recent biennial state election and ending on the 31^st day of December following the next biennial state election.

Electronic Record shall mean a record created, generated, sent, communicated, received or stored by electronic means.

Electronic Signature shall mean an electronic process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the record.

User shall mean a candidate, duly appointed treasurer of a political committee or the cashier or treasurer of a depository bank to whom a CPF ID number and password have been assigned or a person acting under the authority or on behalf of the candidate, political committee or depository bank to whom a CPF ID number and password have been assigned.

(2) Pursuant to M.G.L. c. 55, § 18C(h), electronic campaign finance reports and financial activity statements created and filed with the Director shall be electronically signed by means of the following process:

(a) Authentication. The EFS shall be maintained on secure servers. Access to the EFS servers for the purpose of creating and submitting electronic records shall be accomplished by a login protocol requiring users to input both their CPF ID number and a unique eight-digit, alpha-numeric password.

(b) Demonstration of Intent to Sign the Record. A user shall demonstrate his or her intent to electronically sign an electronic campaign finance report or financial activity statement by the affirmative act of clicking through an electronic interface to file an electronic record with this office. The electronic interface that this office shall employ for electronically signing records will provide written notice upon the web page presented to the user for electronic signature that clearly indicates to the user that the click-through method used is a binding signature and the pages or data to which the user is agreeing when he or she signs electronically.

(c) Binding. The electronic signature shall be bound to the electronic record(s) by two means: the candidate's, committee's or depository bank's CPF ID number shall be encoded into the electronic record(s) at the time of its creation; and at submission, each signed electronic record shall be assigned a unique transaction identification number maintained on the EFS secure server. Proof of electronic signature shall be provided to the user at the time of signing the record(s) in the form of a file submission receipt that shall clearly identify the user's CPF ID number and the transaction number for the electronic record(s) submitted.

(d) Data Integrity. The Director shall ensure the data integrity of the signed electronic records submitted, stored and maintained in the EFS by:

1. employing encryption technology for the transmission of data from remote locations to the EFS secure servers;

2. managing the servers so that the EFS provides an audit trail for every electronic record created, submitted and stored in the EFS; and

3. by immediately electronically locking electronic records at signing so that they cannot be subsequently altered.

(e) Notice. Pursuant to M.G.L. c. 55, § 18C(h), notice shall be provided on the web page presented to the user for electronic signature that electronic records shall be signed under penalties of perjury as required by M.G.L. c. 55, § 24 and 970 CMR 2.14(6). Such electronic signature shall, in the case of a candidate's committee report, be attributable to both the candidate and the duly appointed treasurer of the candidate's political committee, in the case of other types of committees, to the duly appointed treasurer of the political committee or, in the case of depository banks, to the cashier or treasurer of the bank.

(3) The requirement to file electronically commences at the start of the election cycle and not when the statutory thresholds provided in M.G.L. c. 55, § 18C(b) are exceeded. Candidates and political committees required to electronically file must commence electronic filing at the beginning of an election cycle if they anticipate raising or spending more than the statutory thresholds provided in M.G.L. c. 55, § 18C(b) during that election cycle. Candidates and political committees that do not commence electronic filing at the start of an election cycle and who subsequently exceed the statutory thresholds provided in M.G.L. c. 55, § 18C(b) during the election cycle shall be required to immediately commence filing campaign finance reports electronically. Said candidates and political committees shall further be required to electronically file all campaign finance reports required to be filed in accordance with the campaign finance reporting schedules set forth in M.G.L. c. 55, §§ 18 and 19 from the start of the election cycle.

(4) Once a candidate or political committee exceeds the electronic filing threshold and therefore is required to file electronically, the candidate or committee must continue to file all subsequent campaign finance reports electronically, including all reports due in future election cycles, regardless of the amounts raised or spent in future election cycles.

(5) All electronic reports shall be filed in the EFS via the Internet using software approved by the Director. If the Director determines that a candidate, political committee or depository bank is not able otherwise to file electronically, the Director may, in his discretion, allow the candidate, political committee or depository bank to file an electronic report by disk or e-mail attachment. If a candidate or committee files by disk or e-mail attachment, the candidate or committee will be required to file with the Director a written attestation of the report signed under the penalties of perjury as required by M.G.L. c. 55, § 24 and 970 CMR 2.14(6).

(6) Candidates and treasurers required to designate a depository account who are required to file electronically shall report information regarding contributions to the director electronically on the schedule specified in M.G.L. c. 55, § 19(e).

(7) All candidates for county office, and all candidates for city-wide office who are required to designate a depository, must file all disclosure reports required by M.G.L. c. 55 electronically.

(1) A candidate or candidate committee that files reports with a city or town clerk or election commission must, if the candidate intends to seek state or county elective office, or will otherwise be required to file with OCPF in accordance with M.G.L. c. 55, § 19 because of the new office being sought, transfer by registering with the Office of Campaign and Political Finance as provided in 970 CMR 1.12.

(2) A Change of Purpose form (OCPF Form CPF P101) must be filed with the Office of Campaign and Political Finance to indicate the state or county office the candidate is seeking. A copy of the form also must be filed with the candidate's local election official.

(3) If the candidate has a political committee at the municipal level, a copy of the original Statement of Organization of the Candidate's Committee (OCPF Form CPF M101) currently on file with the local election official must be filed with the Office of Campaign and Political Finance. If the candidate's committee has a new treasurer, a Change of Treasurer form (OCPF Form CPF T 101) must also be filed with the Office of Campaign and Political Finance, and a copy must be filed with the local election official.

(4) A copy of the candidate's most recent Campaign Finance Report (OCPF Form CPF M102) as filed with the local election official must also be filed with the Office of Campaign and Political Finance. The next filing with OCPF will report activity from the day following the ending date of such report.

(5) If at the time of transfer the candidate's account shows a cash balance or any outstanding liabilities, copies of all campaign finance reports subsequently filed with the Office of Campaign and Political Finance must also be filed with the local election official. Copies of such campaign finance reports must continue to be filed with the local election official until the liabilities indicated at the time of transfer have been satisfied and any cash balance shown at the time of the transfer has been exhausted.

(6) While a candidate continues to seek or hold office at both the state or county and municipal level, reporting requirements with both the Office of Campaign and Political Finance and the local election official will continue.

(7) A candidate not initially required to appoint a depository under M.G.L. c. 55, § 19 who later seeks an office which causes the candidate to be required to appoint a depository in accordance with M.G.L. c. 55, § 19, shall become subject to depository reporting requirements on whichever of the following dates is the earliest:

(a) on the date a change of purpose form is filed for such candidate;

(b) on the date the candidate first raises or spends money for the purposes of influencing the nomination or election for such office; or

(c) on January 1^st of the election year in which the candidate seeks election to such office.

(1) A candidate or candidate committee that files reports with the Office of Campaign and Political Finance must, if the candidate intends to seek elected office in a city or town, and provided the candidate or candidate committee will not otherwise still be required to file with the Office of Campaign and Political Finance in accordance with M.G.L. c. 55, § 19 because of the new office being sought, transfer by registering with the local election official as provided in 970 CMR 1.13.

(2) A Change of Purpose form (OCPF Form CPF P101) must be filed with the local election official to indicate the city or town office the candidate is seeking. A copy of the form also must be filed with the Office of Campaign and Political Finance.

(3) If the candidate has a political committee at the state level, a copy of the original Statement of Organization of the Candidate's Committee (OCPF Form CPF 101) currently on file with the Office of Campaign and Political Finance must be filed with the local election official. If the candidate's committee has a new treasurer, a Change of Treasurer form (OCPF Form CPF T 101) must be filed with the local election official, and a copy must be filed with the Office of Campaign and Political Finance.

(4) A copy of the candidate's most recent Campaign Finance Report (OCPF Form CPF 102) as filed with the Office of Campaign and Political Finance must be filed with the local election official. The next filing with the local election official will report activity from the day following the ending date of such report.

(5) A committee's filing requirements with OCPF will be discontinued and no further concurrent filings will be required with OCPF, if at the time of transfer:

(a) the candidate's account shows a cash balance of $500 or less; and

(b) the committee has no liabilities or has outstanding liabilities only to the candidate; and

(c) the committee has filed Form CPF P101 with OCPF indicating that the candidate is seeking a specified municipal office.

In all other instances, copies of all campaign finance reports filed with the local election official after transfer must be filed with OCPF until the cash balance shown at the time of transfer has been exhausted and any liabilities existing to persons other than the candidate at the time of transfer have been satisfied.

(6) While a candidate continues to seek or hold office at both the state or county and municipal level, reporting requirements with both the Office of Campaign and Political Finance and the local election official will continue.

(7) A candidate not initially required to appoint a depository under M.G.L. c. 55, § 19 who later seeks an office which causes the candidate to be required to appoint a depository in accordance with M.G.L. c. 55, § 19, shall become subject to depository reporting requirements on whichever of the following dates is the earliest:

(a) on the date a change of purpose form is filed for such candidate;

(b) on the date the candidate first raises or spends money for the purposes of influencing the nomination or election for such office; or

(c) on January 1^st of the election year in which the candidate seeks election to such office.

(8) A candidate who seeks municipal office and maintains filing requirements with the Office of Campaign and Political Finance shall also file reports as required by M.G.L. c. 55, § 18C.

REGULATORY AUTHORITY
970 CMR 1.00: M.G.L. c. 55, §§ 3, 6 and 10A.