Title of Regulation: 1VAC20-90. Campaign Finance and Political Advertisements (repealing 1VAC20-90-20).

Statutory Authority: § 24.2-103 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: February 20, 2020.

Effective Date: April 1, 2020.

Agency Contact: Arielle Schneider, Policy Analyst, Department of Elections, 1100 Bank Street, Floor 1, Richmond, VA 23220, telephone (804) 864-8933, or email arielle.schneider@elections.virginia.gov.

Basis: The Virginia Department of Elections is promulgating this regulation on behalf of the State Board of Elections, which is authorized under the § 24.2-103 of the Code of Virginia, to make rules and regulations and issue instructions and provide information to promote the proper administration of election laws.

Purpose: The rationale for the regulatory change is compliance with the Campaign Finance Disclosure Act (§ 24.2-945 et seq.) of the Code of Virginia, in which the General Assembly has determined that the means by which campaign finance reports submitted to the State Board of Elections is electronic. The department's goal of protecting the health and safety of the public must be supported by its regulatory instructions to candidates and committees.

Rationale for Using Fast-Track Rulemaking Process: The State Board of Elections is the policy-making board responsible for election law regulations. This repeal is expected to be noncontroversial because the regulation under consideration applies to law that no longer exists.

Substance: The amendments repeal the obsolete filing provision and associated fee.

Issues: There are no primary advantages or disadvantages to the public. The primary advantage to the department is conformity with the Code of Virginia so that agency guidelines and regulations support existing law. There are no disadvantages to the agency or the Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The State Board of Elections (Board) seeks to eliminate section 1VAC20-90-20 (Filing Fee) for campaign finance reports that are not filed electronically. This section was promulgated when campaign committees had the option to file nonelectronic campaign finance reports, upon payment of a $25 administrative fee to the Department of Elections to have the report transcribed. However, the Board has since transitioned to using electronic submissions exclusively, making the fee redundant.

Background. Section 24.2-947.5 of the Code of Virginia contains the campaign finance reporting requirements, including electronic submissions. The language in 1VAC20-90-20 directs campaign committees that file a nonelectronic campaign finance report with the Board under § 24.2-947.5 to pay a $25 administrative fee per report to the Board. It further says that the fee shall be paid by the filing deadline or upon filing the report, whichever is later, and that committees that are indigent may request a waiver from the Board.

The 2018 Acts of Assembly (Chapter 538) revised the Code of Virginia such that all regulants who would be required to file the report with the Board would have to do so electronically. Specifically, § 24.2-947.5 now says that candidates for statewide office and the General Assembly, as well as candidates for a local or constitutional office in any locality whose population exceeds 70,000, shall file campaign finance reports with the Board electronically. Candidates for local or constitutional offices in localities with fewer than 70,000 people may file electronically with the Board or file paper reports with the general registrar of the locality in which the candidate resides. Since candidates no longer have the option to file paper copies of the required reports with the Board, any associated administrative fees no longer apply. Hence the Board seeks to repeal the fee.

Estimated Benefits and Costs. The proposed amendment appears to benefit the public by aligning the Virginia Administrative Code with the Code of Virginia, and potentially reducing confusion for readers of the regulation. The proposed amendment does not create any new initial or ongoing cost to the public.

Businesses and Other Entities Affected. The proposed amendment does not appear to particularly affect any business or other entities.

Localities² Affected.³ The proposed amendment does not appear to affect particular localities or introduce new costs for local governments. Accordingly, no additional funds would be required.

Projected Impact on Employment. The proposed amendment does not appear to affect total employment.

Effects on the Use and Value of Private Property. The proposed amendment has no effect on the use and value of private property, nor does it affect real estate development costs.

Adverse Effect on Small Businesses:⁴ The proposed amendment does not adversely affect small businesses.

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²"Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

³§ 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

⁴Pursuant to § 2.2-4007.04 of the Code of Virginia, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

Agency's Response to Economic Impact Analysis: The Virginia Department of Elections concurs with the economic impact analysis of the Department of Planning and Budget.

Summary:

The action repeals a fee associated with staff transcribing any nonelectronic campaign finance report submitted to the State Board of Elections by a candidate who opted to use the paper filing provision during the years that submitting campaign finance reports electronically was optional. Chapter 538 of the 2018 Acts of Assembly made electronic filing with the board mandatory, making the fee unnecessary.

1VAC20-90-20. Filing fee. (Repealed.)

Any campaign committee that files a nonelectronic, campaign finance report with the State Board of Elections under § 24.2-947.5 of the Code of Virginia shall pay a $25 administrative fee per report to the State Board of Elections. Such payment shall be due by the filing deadline for the report or upon filing the report, whichever is later. Any committee that is indigent may request a waiver from the State Board of Elections.