General Laws of Massachusetts - Chapter 55 Disclosure and Regulation of Campaign Expenditures and Contributions - Section 19 Campaign funds; designation of depository
Section 19. (a) Candidates for nomination or election to the offices of governor, lieutenant governor, secretary of state, attorney general, state treasurer and receiver general, auditor, governor’s council, district attorney, clerk of court, register of probate, registrar of deeds, county commissioner, county treasurer, and sheriff, mayor or, city council or alderman in a city with a total population, as determined by the most recent decennial federal census, of one hundred thousand or more persons and the treasurer of each state committee referred to in section one of chapter fifty-two, and the treasurer of the nonelected political committee authorized by any of the aforesaid candidates shall forthwith, upon the organization of said political committee, or upon becoming a candidate in accordance with the provision of clauses (1) and (2) of the definition of candidate in section one, designate a financial institution as a depository for the campaign funds of such candidate or political committee. The financial institution so designated shall be a national bank, federal savings bank, federal savings and loan association or federal credit union, if such bank, association or credit union is authorized to transact business and has its main office or a branch office in the commonwealth; or a trust company, credit union, co-operative bank or savings bank, if such company, credit union or bank is organized and exists under the laws of the commonwealth or any other state of the United States or is otherwise authorized to transact business in the commonwealth and has its main office or a branch office in the commonwealth. Each such candidate, and the treasurer of each such political committee shall file with the director, no later than the third business day following the designation of such depository, a certificate of appointment containing the name of the financial institution so designated, and the name of the candidate or political committee, and shall authorize the financial institution so designated to submit the reports required by subsection (e).
(b) Every candidate and the treasurer of every committee required to designate a depository shall, by the end of the seventh day after receipt of any contribution deposit it in the form received in the designated depository. No such deposit shall be made or received to the credit of any account designated as provided for in this section unless such deposit shall be accompanied by a deposit slip containing for each contribution in excess of the sum of fifty dollars the name and address of the contributor in the case of an individual or political committee and in addition in the case of a trust, foundation or other association the data required by section ten; provided that such information shall also be listed for each contribution of less than or equal to the sum of fifty dollars if the aggregate of all contributions deposited from such contributor during the preceding fourteen days is in excess of fifty dollars. If any deposits represent the proceeds of borrowings, the deposit slip shall indicate the names and addresses of the lender, those persons liable either primarily or secondarily for any portion of such borrowings and those persons providing collateral, if any, for such borrowings. In addition, each such deposit slip shall include the name and address, together with the amount of the contribution for that reporting period of each person whose contributions in the aggregate exceeds fifty dollars or more in the calendar year and, if such contribution is in an amount or value of two hundred dollars or more in the calendar year, such person’s occupation and name of employer or employers, for those contributions where said information does not otherwise appear on said deposit slip.
(c) Except as otherwise provided in this section, all payments for campaign purposes made by or for the benefit of a candidate or by the treasurer of a committee required to designate a depository after the date such depository is required to be designated which are in excess of fifty dollars shall be made only from funds on deposit in said depository through checks drawn on such depository and indicating that such checks are drawn on the campaign account of the candidate or the political committee involved. All checks drawn on such campaign accounts shall be payable either to the order of a named payee not the candidate or treasurer or, if for no more than fifty dollars, may be payable to the candidate or treasurer, except that the total of checks payable to the candidate or treasurer for each period under subsection (e) hereof shall not exceed five hundred dollars, and shall contain printed thereon a statement of purposes as follows:—
PURPOSES OF PAYMENT.
(Check One and Fill in Specific Purpose)
Such checks shall also contain thereon for signature by the named payee, the certificate required by section seven.
A candidate or treasurer of a political committee required to designate a depository may make expenditures by wire transfer or other electronic means for broadcast, cablecast or other media services and for payroll services made in connection with employee deductions and withholdings. A candidate or treasurer making an expenditure by wire or other electronic transfer shall file a report with the director within three business days of any such expenditure. Such report shall include a statement of the reason the expenditure was made by wire transfer or other electronic means and the other information required by this section. In addition, for any expenditure made for media services, such report shall contain thereon for signature by the person providing such media services, a certificate prepared by the director similar to the certificate required by section 7.
(d) No candidate or committee treasurer required to designate a depository for campaign funds shall authorize the incurring of any expenditure in behalf of the candidate or a committee unless there are monies on deposit in the depository designated in accordance with the provisions of this section to the credit of the campaign account of such candidate or committee sufficient to pay the amount of expenditures so authorized, together with all unpaid obligations outstanding, or unless such candidate or treasurer files with the director on the dates indicated in subsection (e) a complete statement of all unpaid obligations then outstanding, the terms of payment, purpose of the expenditure by which the obligation was created and name and address of the person holding the obligation.
(e) The cashier or treasurer of the bank, selected by any candidate or committee as above provided, shall file with the director and, if a candidate for nomination or election to the office of city council, aldermen or mayor, shall also file a copy with the city clerk (1) during the last six months of an election year by the fifth day and twentieth day of each month while such account is in existence, and (2) during the first six months of an election year and during non-election years by the fifth day of each month while such account is in existence, the following information, a statement of the balance as of the preceding first day or fifteenth day of the month or as of the last report filed pursuant to this paragraph, whichever is applicable, together with a summary of all of the deposit slips presented to the bank since the last such statement with any deposit of monies to the campaign account of such candidate or committee, listing the names alphabetically and other data as to all donors as it appeared on the deposit slip, and a list of all the checks presented to the bank since the last such statement upon which any funds were withdrawn from any such account with the names and addresses of the payees and the amount of each check, and the purposes for which the money was paid as thereon indicated. For the purposes of this subsection, the term “election year” shall mean the calendar year in which a primary, special or general election is scheduled for the office sought or held by the candidate or political committee maintaining such account and the term “non-election year” shall mean all other years.
(f) Such accounts shall remain in existence until the election and so long thereafter as a candidate or political committee has unpaid obligations still outstanding. A candidate or the treasurer of a political committee which has such obligations shall file with the director by the fifth of each month a summary of all campaign contributions (including campaign contributions in the form of forgiveness of indebtedness) received during the preceding month together with the name and address and all other data as to each such contributor required by section ten.
(g) Each committee required to designate a depository on behalf of a candidate that files with the director in accordance with this section and which receives and deposits a contribution of $500 or more after the eighteenth day but more than 72 hours before the date of a special, preliminary, primary or general election shall file a report to disclose the information required by this section within 72 hours of depositing such contribution. In addition, each state committee referred to in section 1 of chapter 52 required to designate a depository pursuant to this section and which receives a contribution of $500 or more after the eighteenth day, but more than 24 hours, before the date of a special, preliminary, primary or general election, shall file a report to disclose the information required by this section, within 72 hours of depositing such contribution.
Any candidate or political committee which fails to file any report required by this section shall be assessed, and shall pay to the state treasurer, a penalty not greater than ten dollars for each day such candidate or political committee has not filed such report.
Violation of any provision of this section shall be punished by imprisonment for not more than six months or by a fine of not more than five hundred dollars.
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