AN ACT TO AMEND TITLE 15 OF THE DELAWARE CODE RELATING TO ELECTION CAMPAIGNS AND PUBLIC DISCLOSURES.

Plain English Breakdown

The bill text does not specify a detailed amount that third-party advertisers must disclose, only that contributions over $100 must be listed and their funding sources disclosed.

Campaign Finance Transparency Act

This act updates Delaware's campaign finance rules to require more detailed disclosures from out-of-state groups, third-party advertisers, and foreign entities involved in state elections.

What This Bill Does

• Requires out-of-state political committees that give over $2,000 to register with the State Election Commissioner if they are not giving money directly to candidates or parties.
• Makes political committees list any companies or groups that control them when they register.
• Adds more details to third-party ads about who paid for them and where the money came from.
• Requires all campaign finance reports to show exactly how much money was given, without showing negative balances.
• Prohibits foreign nationals and foreign-controlled entities from making contributions or spending money in state elections.

Who It Names or Affects

• Political committees that give more than $2,000 to Delaware elections
• Third-party advertisers who run political ads
• Foreign individuals and organizations trying to influence Delaware elections

Terms To Know

Affiliated controlling entities

Companies or groups that have a lot of control over another company or group.

Third-party advertisers

People or companies who make ads for political campaigns but are not part of the campaign team.

Limits and Unknowns

• The bill does not specify how much money third-party advertisers must disclose.
• It is unclear what specific information will be on the website determined by the Election Commissioner.
• The exact details about modern modes of communication are not defined in the summary.

Official Summary Text

AN ACT TO AMEND TITLE 15 OF THE DELAWARE CODE RELATING TO ELECTION CAMPAIGNS AND PUBLIC DISCLOSURES.
This Act expands Delaware’s campaign finance disclosure requirements to provide more transparency regarding the source of funding for contributions to and expenditures made from political committees in the State. To that end this Act does the following:
1. Requires out-of-state committees that contribute more than $2,000 to a Delaware election (exempting contributions to candidates and political parties) to register with the State Election Commissioner (Commissioner).
2. Requires political committees to list any affiliated controlling entities on its statement of registration.
3. Increases the disclosure requirements to be placed on third-party advertisements by requiring the advertisement to display, if applicable, the name of a majority owner of the third-party advertiser, the responsible party, affiliated controlling entities, and the 5 persons who made the 5 largest aggregate transfers to the entity in the last 12 months.
4. Requires third-party advertisers to display a link to a website that lists all contributions to the third-party advertisement in excess of $100. Any contribution that is greater than $100 that is not from an individual must also include information on the contribution’s underlying funding source.
4. Prohibits all reports filed with the Commissioner from containing a negative balance so that the source of all funds are disclosed, including any loans.

Substitute 1 to HB 216 makes the following changes:
1. Prohibits a foreign national or foreign-controlled entity from making a contribution, expenditure, independent expenditure, or electioneering communication in connection with any state or local election in the State.
2. Requires that all campaign finance reports disclose specific information about advertisements, including the name of the vendor or platform used, the medium used, a description of the advertisement, and the target audience.
3. Replaces the current link to the Election Commissioner’s website on third-party advertisements with a website to be “determined” by the Election Commissioner.
4. Requires that third-party party advertisements display the state of residence, incorporation, or registration of all persons disclosed on the advertisement itself and on the linked website containing additional disclosures.
5. Updates definitions to include modern modes of communication.
6. Changes the implementation date to July 1, 2028.
7. Makes technical changes to conform existing law to the standards of the Delaware Legislative Drafting Manual.