AB79 - Revises provisions relating to governmental administration. (BDR 24-483)

- 83rd Session (2025) Assembly Bill No. 79–Committee on Legislative Operations and Elections CHAPTER.......... AN ACT relating to governmental administration; establishing a limit on contributions to the campaign of a candidate in certain special elections; requiring, with certain exceptions, a candidate to file a notice of intent to file for candidacy with the Secretary of State; revising provisions relating to the personal use of contributions or unspent contributions; revising provisions relating to the investigation and enforcement of provisions of law relating to campaign finance and financial disclosure statements; providing that a labor union and certain corporations and business organizations are not a committee for political action for purposes of campaign finance requirements; requiring such entities to report certain expenditures; making various other changes relating to campaign finance; providing penalties; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law sets forth limitations on making, soliciting and accepting a campaign contribution for a primary election, a general election or a special election to recall a public officer. (Nev. Const. Art. 2, § 10; NRS 294A.100, 294A.115) Section 6.5 of this bill clarifies that these limits apply regardless of the number of candidates for the office at the primary or general election. Section 2.5 of this bill: (1) establishes a contribution limit of $5,000 for a special election that is not a special election to recall a public officer; and (2) sets forth the period during which such contributions may be made, solicited or accepted. Existing law provides that, except in certain circumstances, certain corporations and business organizations as well as labor unions are excluded from the definition of a “committee for political action.” (NRS 294A.0055) Section 6.3 of this bill revises the definition of a “committee for political action” to remove such exceptions, thereby excluding such entities from being considered a committee for political action under any circumstances. Existing law requires certain persons, committees for political action and political parties to report certain independent expenditures or other expenditures. (NRS 249A.210) Section 10.3 of this bill requires any entity excluded from the definition of “committee for political action” pursuant to section 6.3 that makes certain expenditures in excess of $1,000 to report such expenditures. Under existing law, it is unlawful for: (1) a candidate to spend money received as a contribution for the candidate’s personal use; or (2) a public officer to spend unspent contributions for the public officer’s personal use. (NRS 294A.160) Section 8.5 of this bill clarifies that these provisions do not prohibit a candidate or public officer from using contributions or unspent contributions, as applicable, to pay for any ordinary and necessary expense that is incurred in connection with the duties of a campaign or public office, as applicable. Existing law requires every candidate, not later than 1 week after receiving minimum contributions of $100, to open and maintain a separate account in a – 2 – - 83rd Session (2025) financial institution located in the United States for the deposit of any contributions received. (NRS 294A.130) Section 7 of this bill requires every candidate, except a public officer running for reelection, to also file with the Secretary of State a notice of intent to file for candidacy. Under existing law, if it appears that the provisions of law relating to campaign finance have been violated, the Secretary of State may: (1) conduct an investigation concerning the alleged violation and cause the appropriate proceedings to be instituted and prosecuted in the First Judicial District Court; or (2) refer the alleged violation to the Attorney General for investigation. The Attorney General is required to investigate and institute and prosecute the appropriate proceedings in the First Judicial District Court. (NRS 294A.410) Section 11 of this bill: (1) eliminates provisions relating to instituting any such proceedings in the First Judicial District Court; (2) authorizes the Office of the Secretary of State to conduct an investigation; (3) requires a person who receives a notice of an alleged violation to submit a response to the Office of the Secretary of State within 15 calendar days after receiving the notice, subject to certain exceptions; and (4) authorizes the Office of the Secretary of State to bring the matter before a hearing officer upon the expiration of such a period of time if the person does not submit such a response. Existing law authorizes a person who believes that any provisions of law relating to campaign finance have been violated to notify the Secretary of State, in writing, of the alleged violation. Under certain circumstances, the Secretary of State may conduct an investigation of the alleged violation. (NRS 294A.410) Section 11 provides instead that the Office of the Secretary of State may conduct such an investigation. Existing law authorizes, under certain circumstances, the Secretary of State to cause proceedings to be instituted in the First Judicial District Court to recover certain civil penalties for certain violations of provisions relating to campaign finance. (NRS 294A.420) Section 12 of this bill provides instead that the Secretary of State may, after notice and a hearing, impose certain administrative fines for certain violations relating to campaign finance. Section 4.5 of this bill sets forth certain powers and duties of the Secretary of State or certain officers or employees designated by the Secretary of State relating to investigations or proceedings relating to campaign finance. Section 4.5 also requires the Secretary of State or certain officers or employees designated by the Secretary of State to provide certain notice by certified mail to a person who is the subject of an investigation or proceeding if the Secretary of State or such an officer or employee intends to issue a subpoena for certain records to permit such a person to object to and seek issuance of a protective order against the subpoena. Sections 12 and 13.5 of this bill authorize the Secretary of State, for good cause, to reduce certain administrative fines and civil penalties relating to campaign finance and statements of financial disclosure. Sections 12 and 13.5 also: (1) authorize the Secretary of State to enter into payment agreements relating to administrative fines and civil penalties; and (2) require the Secretary of State to maintain on the Internet website of the Office of the Secretary of State a list of persons who have not paid within 90 days any such administrative fine or civil penalty. Section 10.5 of this bill makes a conforming change to provide that the Secretary of State may impose an administrative fine for certain violations. – 3 – - 83rd Session (2025) EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 294A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act. Sec. 2. (Deleted by amendment.) Sec. 2.5. 1. A person shall not make or commit to make a contribution or contributions to a candidate for any office, except a federal office, in a special election in an amount which exceeds $5,000, regardless of: (a) The number of candidates for the office; or (b) Whether the special election is held on the same day as a primary election or general election. 2. No contribution to a candidate in a recall election may be given or received except during the period: (a) Beginning on the date that the declaration of a special election is made; and (b) Ending on the date of the special election. 3. No contribution made, committed to be made or accepted pursuant to this section for a special election affects the limitations on the amount of contributions that may be committed, contributed or accepted pursuant to NRS 294A.100 for a primary election or general election. 4. A candidate shall not accept a contribution or commitment to make a contribution made in violation of this section. 5. A person who willfully violates any provision of this section is guilty of a category E felony and shall be punished as provided in NRS 193.130. 6. The provisions of this section apply to any special election other than a special election to recall a public officer. Secs. 3 and 4. (Deleted by amendment.) Sec. 4.5. 1. For the purposes of an investigation or proceeding under this chapter, the Secretary of State or any officer or employee designated by the Secretary of State by regulation, order or written direction may conduct hearings, administer oaths and affirmations, render findings of fact and conclusions of law, subpoena witnesses, compel their attendance, take evidence and require the production, by subpoena or otherwise, of books, papers, correspondence, memoranda, agreements or other records which the Secretary of State – 4 – - 83rd Session (2025) determines to be relevant or material to the investigation or proceeding. 2. If the Secretary of State or any officer or employee designated by the Secretary of State plans to require the production by subpoena of any books, papers, correspondence, memoranda, agreements or other records pursuant to subsection 1, the Secretary of State or designated officer or employee shall, at least 7 days before issuing the subpoena, provide to the person who is the subject of the investigation or proceeding notice by certified mail of the intent of the Secretary of State or the designated officer or employee to issue the subpoena to permit such a person to object to and seek issuance of a protective order against the subpoena. 3. A person whom the Secretary of State does not consider to be the subject of an investigation is entitled to reimbursement at the rate of 25 cents per page for copies of records which the person is required by subpoena to produce. The Secretary of State may require or permit a person to file a statement, under oath or otherwise as the Secretary of State determines, as to the facts and circumstances concerning the matter to be investigated. 4. If a person does not testify or produce the records required by the Secretary of State or a designated officer or employee pursuant to subpoena, the Secretary of State or designated officer or employee may apply to a court of competent jurisdiction for an order compelling compliance. The court shall give this matter priority over other civil matters to which priority is not given by other statutes. 5. Any decision of the Secretary of State or any officer or employee is a final decision for the purposes of judicial review. Sec. 5. (Deleted by amendment.) Sec. 5.5. NRS 294A.0035 is hereby amended to read as follows: 294A.0035 “Campaign expenses” means: 1. All expenses incurred by a candidate for a campaign, including, without limitation: (a) Office expenses; (b) Expenses related to volunteers; (c) Expenses related to travel; (d) Expenses related to advertising; (e) Expenses related to paid staff; (f) Expenses related to consultants; (g) Expenses related to polling; (h) Expenses related to special events; – 5 – - 83rd Session (2025) (i) Expenses related to a legal defense fund; (j) Except as otherwise provided in NRS 294A.362, goods and services provided in kind for which money would otherwise have been paid; (k) Contributions made to another candidate, a nonprofit corporation that is registered or required to be registered pursuant to NRS 294A.225, a committee for political action that is registered or required to be registered pursuant to NRS 294A.230 or a committee for the recall of a public officer that is registered or required to be registered pursuant to NRS 294A.250; [(k)] (l) Fees for filing declarations of candidacy; and [(l)] (m) Repayment or forgiveness of a loan. 2. Expenditures, as defined in NRS 294A.0075. 3. The disposal of any unspent contributions pursuant to NRS 294A.117 or 294A.160. Sec. 6. (Deleted by amendment.) Sec. 6.3. NRS 294A.0055 is hereby amended to read as follows: 294A.0055 1. “Committee for political action” means: (a) Any group of natural persons or entities that solicits or receives contributions from any other person, group or entity and: (1) Makes or intends to make contributions to candidates or other persons; or (2) Makes or intends to make expenditures,  designed to affect the outcome of any primary election, general election, special election or question on the ballot. (b) [Any] Except as otherwise provided in subsection 2, any business or social organization, corporation, partnership, association, trust [,] or unincorporated organization : [or labor union:] (1) Which has as its primary purpose affecting the outcome of any primary election, general election, special election or any question on the ballot and for that purpose receives contributions in excess of $1,500 in a calendar year or makes expenditures in excess of $1,500 in a calendar year; or (2) Which does not have as its primary purpose affecting the outcome of any primary election, general election, special election or any question on the ballot, but for the purpose of affecting the outcome of any election or question on the ballot receives contributions in excess of $5,000 in a calendar year or makes independent expenditures in excess of $5,000 in a calendar year. 2. “Committee for political action” does not include: – 6 – - 83rd Session (2025) (a) An organization made up of legislative members of a political party whose primary purpose is to provide support for their political efforts. (b) An entity solely because it provides goods or services to a candidate or committee in the regular course of its business at the same price that would be provided to the general public. (c) An individual natural person. (d) [Except as otherwise provided in paragraph (b) of subsection 1, an] An individual corporation or other business organization who has filed articles of incorporation or other documentation of organization with the Secretary of State pursuant to title 7 of NRS. (e) [Except as otherwise provided in paragraph (b) of subsection 1, a] A labor union. (f) A personal campaign committee or the personal representative of a candidate [Text truncated for display. Full text available on LegiScan.]