Official Summary Text
POLITICAL CAMPAIGN COMMITTEES
Registration
Present law requires each candidate and each political campaign committee to certify the name and address of the candidate's or committee's political treasurer to the registry of election finance
or the county election commission, where appropriate, before the candidate or committee may receive a contribution or make an expenditure in a state or local election. This bill requires, if a local election covers more than one county, that the local ca
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didate file the certification of a political treasurer with the local election commission in each county in which the local election occurs.
Registration Fees
This bill requires all political campaign committees registered with the registry of election
finance ("registry") to pay an annual registration fee of $150 to the registry upon registration and by no later than January 31 of each successive year. However, candidates for elective office are not required to pay a registration fee.
Contributions
Present law provides that a "contribution" generally means any transfer of funds, and generally any contract or promise made, for the purpose of influencing a measure or nomination for election. A "contribution" is not the use of real or personal proper
ty and the cost of invitations, food and beverages not exceeding $100, voluntarily provided on an individual's residential premises for candidate-related activities. This bill revises this provision to include such use of an entity's commercial property
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nd changes the maximum amount from $100 to $250.
Statements
Present law requires each candidate for state public office and political campaign committee in a state election to file with the registry a statement of all contributions received and all exp
enditures made by or on behalf of such candidate or committee. All statements must be signed by the person filing such statement in the presence of one witness who must also sign the statement as a witness. This bill removes the need for a witness signa
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ure but adds that all statements must be signed by the person filing such statement under penalty of perjury. This bill further adds that all required statements filed electronically must be filed under penalty of perjury, and each filer is required to a
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knowledge such as part of the electronic filing process.
Complaints
Present law authorizes a registered voter of this state to file a sworn complaint alleging that a statement filed regarding an election for which that voter was qualified to vote does
not conform to law or to the truth or that a person has failed to file a statement required by law. The registry must conduct a preliminary review to determine if the complaint is factually and legally sufficient and has alternative procedures depending
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n if the complaint is found to be factually and legally sufficient or not and the circumstances surrounding the complaint. One such procedure is that the registry may order the registry's staff to conduct an investigative audit of the alleged violator's
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ampaign finance disclosure reports. In such instances, the alleged violator is obligated to produce all documentation required and to comply in good faith and with total candor with all requests for documentation or clarification properly requested by th
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registry's auditor or counsel. This bill adds that the registry may also conduct an investigation, as opposed to an investigative audit, which uses an investigator instead of an auditor. This bill creates another alternative procedure that allows the r
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gistry, in lieu of conducting any investigation or audit, to proceed directly to a show cause hearing on the sworn complaint.
Unexpended Contributions
Present law regulates how a candidate for public office may or must not allocate an unexpended
balance of contributions after the election. Generally, the disbursement of campaign funds for a candidate's own personal use is not permitted. "Personal use" means any use by which the candidate for public office or elected public official would be req
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ired to treat the amount of the expenditure as gross income. This bill provides that expenditures of campaign funds for the purposes of litigation to advance or support the candidate's nomination for election or election to office or to challenge the leg
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timacy of a potential opponent's candidacy is deemed not for personal use. However, expenditures of campaign funds for the purposes of litigation to defend the candidate's standing or reputation in the community is deemed a personal use and is prohibited.
CAMPAIGN CONTRIBUTIONS
Deadline to Accept Contributions
Present law provides that required statements of all contributions received and all expenditures made must be filed quarterly during an election year, within 10 days following the conclusion of
the quarterly reports ending March 31, June 30, September 30, and January 15. A candidate or an elected state or local official may continue to accept contributions in excess of outstanding debts and obligations relating to an election until the close of
the reporting period immediately following the reporting period in which the election occurred. However, this bill prohibits a candidate from accepting an in-kind contribution relating to an election after the date of the election, unless such in-kind co
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tribution is of a nature that allows such contribution to be converted to a monetary value for the purpose of defraying outstanding debts and obligations incurred during that election.
Present law authorizes a successful candidate for state or local publ
ic office who reports no outstanding loans or obligations to continue to accept contributions for the purpose of defraying officeholder expenses until the close of the reporting period following the date of the election, not including the reporting period
in which the election occurs. This bill extends the period during which a successful candidate may continue to accept such contributions to until the close of the reporting period following the date of the election of the officeholder's successor, not in
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luding the reporting period in which the election occurs.
Limits
Present law requires that all contributions made by political campaign committees controlled by a political party on the national, state, or local level or by a caucus of such political
party established by members of either house of the general assembly must be considered to have been made by a single committee. Such contributions must not, in the aggregate, exceed:
$250,000 per election to a candidate in a statewide election.
$40,000 per election to a candidate for the senate.
$20,000 per election to a candidate for any other state or local public office.
Present law requires such limits to be adjusted every two years to reflect the percentage of change in the average consumer pri
ce index. Certain contributions are exempt from these limits. This bill removes these limits and exemptions.
Political Campaign Committees
Present law prohibits a multicandidate political campaign committee from making contributions to a candidate
with respect to any election which, in the aggregate, exceed $7,500 for an office elected by statewide election, the senate, or the house of representatives, and $5,000 for any other state or local public office. This bill provides that political campaig
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committees controlled by a political party or a caucus of such political party established by members of either house of the general assembly are not subject to these contribution limits. However, a political campaign committee that is associated with a
political party or a caucus of such political party established by members of either house of the general assembly, but not directly established, financed, maintained, or controlled by such political party or caucus, is subject to these limits.
ETHICS AND
LOBBYING
Annual Ethics Course
Present law requires the Tennessee ethics commission ("commission") to provide an annual orientation ethics course concerning compliance with the laws administered and enforced by the commission for members of the general
assembly who have not yet taken the orientation ethics course. The commission must offer an annual current issues course for members of the general assembly who have taken the orientation course. Such courses must be offered on a date or dates when the
general assembly is in session and the commission must notify members in advance of the time and location of the courses.
This bill requires the annual ethics training to also be provided to all department commissioners in the executive branch and all of
the governor's cabinet level staff. Staff of the ethics commission must coordinate with the governor's ethics counsel to identify all executive staff required to receive this annual training and to establish the location for this training. Such trainin
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must be offered on a date when the general assembly is in session, and the governor's ethics counsel must notify impacted executive branch members of the time and location of this annual training.
Ethics Manual
Present law requires the commission to
provide a manual for members of the general assembly that includes ethics statutes and administrative regulations relevant to members, explanations of purposes and principles underlying the laws, explanations of technical and specific legal requirements,
examples of practical applications of the laws and principles, a question-and-answer section regarding common problems and situations, summaries of advisory opinions, and any other information that would inform members about ethics laws and regulations an
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assist them in applying those laws and regulations to specific situations. The manual may be distributed to members of the general assembly, and must be made available to the public, by posting the manual in pdf format on the commission's website. This
bill requires the manual to be made available to all executive branch officials taking this annual training.
Confidentiality
Present law requires members and staff of the commission to preserve confidentiality of all commission proceedings. Such recor
ds are exempt from public records laws and must remain confidential until (i) the alleged violator requests in writing that the investigation and associated records and meetings be made public, (ii) the commission finds that probable cause exists to belie
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e that a violation has occurred, or (iii) the commission determines that no probable cause exists to believe that a violation has occurred. This bill removes this provision and, instead, provides that all commission proceedings regarding a sworn complain
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are public records and are open to public inspection under public records laws, with certain exemptions that are also available under present law.
Present law provides that a member of the commission or member of the commission staff who knowingly discl
oses confidential information commits a Class C misdemeanor, subject to up to 30 days in prison or a fine not to exceed $50. A violation also subjects the person to a maximum civil penalty of $10,000. Violation by a member of the commission is grounds f
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r removal from office. This bill removes this provision and, instead, provides that such a knowing disclosure is grounds for immediate termination of a staff member's employment or immediate removal of a commission member from office.
Ethics Complaints
Present law authorizes a state citizen to file a sworn complaint alleging a violation of laws or rules within the jurisdiction of the commission. The commission must refer a factually and legally sufficient complaint to the office of the attorney genera
l and reporter, who must conduct a preliminary investigation. This bill makes referring the complaint and its subsequent investigation permissive, providing that the commission may refer a factually and legally sufficient complaint to the office of the a
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torney general, who may conduct a preliminary investigation. This bill authorizes the commission to alternatively conduct its own investigation, or the commission may conduct a probable cause determination without first investigating. If an investigatio
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is requested, the commission must make a probable cause determination after the office of the attorney general completes its investigation and reports its findings to the commission.
OCCUPATION TAX
Present law requires a tax be levied on the privilege
of engaging in the following vocations, professions, businesses, or occupations: (i) registered lobbyists, (ii) licensed or registered agents, broker-dealers and investment advisers involved in the purchase or sale of securities, and (iii) persons license
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as attorneys by the state supreme court. Beginning in fiscal year 2025, this bill requires 80% of the privilege tax paid by registered lobbyists to be allocated to the budget of the bureau of ethics and campaign finance for purposes of replacing and up
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ating its current information technology platforms and website and to further offset the costs of the bureau in performing its statutory responsibilities.
ON APRIL 22, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 229, AS AMENDED.
AMENDMENT #1 makes the following revisions:
Removes the provision providing that (i) expenditures of campaign funds for the purposes of litigation to advance or support the candidate's nomination for election or election to office or to challenge the legitimacy of a potential opponent's candidacy is deemed not for personal use, and (ii) expenditures of campaign funds for the purposes of litigation to defend the candidate's standing or reputation in the community is deemed a personal use and is prohibited.
Instead, provides that expenditures of campaign funds to defend litigation involving the candidate's nomination for election or election to office is deemed not for personal use.
Removes the provision requiring 80% of the privilege tax paid by registered lobbyists, beginning in fiscal year 2025, to be allocated to the budget of the bureau of ethics and campaign finance for purposes of replacing and updating its current information technology platforms and website and to further offset the costs of the bureau in performing its statutory responsibilities.
ON APRIL 22, 2025, THE HOUSE SUBSTITUTED SENATE BILL 229 FOR HOUSE BILL 653, ADOPTED AMENDMENT #1, AND PASSED SENATE BILL 229, AS AMENDED.
AMENDMENT #1 incorporates the changes made by Senate Amendment
#1 and makes changes to present law concerning multicandidate political campaign committees.
Present law requires that a multicandidate political campaign committee certify the name and address of all officers of such committee and of all persons who dir
ectly control expenditures to the registry of election finance. This amendment instead requires that such a committee certify at least one officer to the registry.
Present law requires that, during the period beginning at 12:00 midnight of the tenth day
prior to a primary, general, runoff or special election or a referendum and extending 12:00 midnight of such election or referendum day, each candidate or political campaign committee file a report with the registry of election finance or the county elec
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ion commission of contributions, loans, transfers, and expenditures that, in the aggregate, equal or exceed the following amounts:
(1) For a committee participating in the election of a candidate for any statewide office, $5,000;
(2) For a committee p
articipating in the election of a candidate for senate, $3,000; and
(3) For a committee participating in the election of any other state or local public office, $1,000.
This amendment replaces (1)-(3) with the following:
(1) For a committee particip
ating in the election of a candidate for any statewide office, $5,000; and
(2) For a committee participating in the election of any other state or local public office, $3,000.
ON APRIL 22, 2025, THE SENATE NON-CONCURRED IN HOUSE AMENDMENT #1.
ON
APRIL 22, 2025, THE HOUSE REFUSED TO RECEDE IN ITS ACTIONS IN ADOPTING HOUSE AMENDMENT #1.
ON APRIL 22, 2025, THE SENATE REFUSED TO RECEDE FROM ITS NON-CONCURRENCE IN HOUSE AMENDMENT #1 AND APPOINTED A CONFERENCE COMMITTEE.
ON APRIL 22, 2025, THE HOUSE
APPOINTED A CONFERENCE COMMITTEE.
ON APRIL 22, 2025, THE SENATE ADOPTED THE CONFERENCE COMMITTEE REPORT.
ON APRIL 22, 2025, THE HOUSE ADOPTED THE CONFERENCE COMMITTEE REPORT.
Current Bill Text
Read the full stored bill text
SENATE BILL 229
By Briggs
HOUSE BILL 653
By Hicks T
HB0653
001629
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AN ACT to amend Tennessee Code Annotated, Title 2;
Title 3 and Title 67, relative to the bureau of ethics
and campaign finance.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 2-10-105(e)(1), is amended by
adding the following after the first sentence:
If a local election covers more than one (1) county, then the local candidate shall
file the certification of a political treasurer with the local election commission in
each county in which the local election occurs.
SECTION 2. Tennessee Code Annotated, Title 2, Chapter 10, Part 1, is amended by
adding the following new section:
All political campaign committees registered with the registry of election finance
shall pay an annual registration fee of one hundred fifty dollars ($150) to the registry of
election finance upon registration and by no later than January 31 of each successive
year to partially offset the costs incurred by the registry of election finance in regulating
political campaign committees. Candidates for elective office are not required to pay a
registration fee in order to encourage persons to run for elective office.
SECTION 3. Tennessee Code Annotated, Section 2-10-102(4)(E), is amended by
deleting the language "one hundred dollars ($100)" and substituting instead "two hundred fifty
dollars ($250)", and by adding the words "or an entity's commercial" before the word "premises".
SECTION 4. Tennessee Code Annotated, Section 2-10-104, is amended by deleting the
section and substituting instead:
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All statements required by this part must be signed by the person filing such
statement under penalty of perjury. All statements required by this part to be filed
electronically must be filed under penalty of perjury, and each filer is required to
acknowledge such as part of the electronic filing process.
SECTION 5. Tennessee Code Annotated, Section 2-10-108(b)(1), is amended by
deleting the last two sentences of the subdivision and substituting instead:
Alternatively, if the registry determines that the complaint is factually and legally
sufficient and that the circumstances are appropriate, then the registry may order
the registry's staff to conduct an investigation or investigative audit of the alleged
violator's campaign finance disclosure reports. In such instances, the alleged
violator is obligated to produce all documentation required to be maintained by §
2-10-105(f) and to comply in good faith and with total candor with all requests for
documentation or clarification properly requested by the registry's investigator,
auditor, or counsel. Alternatively, the registry, in lieu of conducting any
investigation or audit, may proceed directly to a show cause hearing on the
sworn complaint.
SECTION 6. Tennessee Code Annotated, Section 2-10-108(b)(2), is amended by
deleting in the first sentence the language "either the attorney general’s investigation or the
audit" and substituting instead the language "a show cause hearing is ordered by the registry, or
any investigation or audit".
SECTION 7. Tennessee Code Annotated, Section 2-10-114(b), is amended by adding
the following as a new subdivision (3) and redesignating the existing subdivision (3) accordingly:
(3) Expenditures of campaign funds for the purposes of litigation to advance or
support the candidate's nomination for election or election to office or to challenge the
legitimacy of a potential opponent's candidacy is deemed not for personal use.
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However, expenditures of campaign funds for the purposes of litigation to defend the
candidate's standing or reputation in the community is deemed a personal use and is
prohibited.
SECTION 8. Tennessee Code Annotated, Section 2-10-302(e)(1), is amended by
deleting the second sentence and substituting instead:
A successful candidate for state or local public office who reports no outstanding
loans or obligations may continue to accept contributions for the purpose of
defraying officeholder expenses until the close of the reporting period following
the date of the election of the officeholder's successor, not including the reporting
period in which the election occurs.
SECTION 9. Tennessee Code Annotated, Section 2-10-302(e)(1), is amended by
designating the existing language as subdivision (e)(1)(A) and adding the following as new
subdivisions:
(B) A candidate for state or local public office, or an elected state or local official,
may continue to accept contributions in excess of outstanding debts and obligations
relating to an election between the date of the election and the close of the reporting
period immediately following the reporting period in which the election occurred.
(C) Notwithstanding subdivision (e)(1)(B), a candidate shall not accept an in-kind
contribution relating to an election after the date of the election, unless such in-kind
contribution is of a nature that allows such contribution to be converted to a monetary
value for the purpose of defraying outstanding debts and obligations incurred during that
election.
SECTION 10. Tennessee Code Annotated, Section 2-10-306, is amended by deleting
the section and substituting instead:
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(a) It is the intent of the general assembly to recognize that political campaign
committees controlled by a political party serve different and distinct purposes than other
registered political campaign committees.
(b)
(1) Political campaign committees controlled by a political party or a
caucus of such political party established by members of either house of the
general assembly are not subject to the contribution limits established by § 2-10-
302(b).
(2) A political campaign committee that is associated with a political party
or a caucus of such political party established by members of either house of the
general assembly, but not directly established, financed, maintained, or
controlled by such political party or caucus, is subject to the limits established by
§ 2-10-302(b).
SECTION 11. Tennessee Code Annotated, Section 3-6-113, is amended by adding the
following new subsection:
(d) The annual ethics training referenced in subsection (a) must also be provided
by the Tennessee ethics commission to all department commissioners in the executive
branch and all of the governor's cabinet level staff. Staff of the ethics commission shall
coordinate with the governor's ethics counsel to identify all executive staff required to
receive this annual training and to establish the location for this training. Such training
must be offered on a date when the general assembly is in session, and the governor's
ethics counsel shall notify impacted executive branch members of the time and location
of this annual training. The manual referenced in subsection (c) must be made available
to all executive branch officials taking this annual training.
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SECTION 12. Tennessee Code Annotated, Section 3-6-202, is amended by deleting the
section and substituting instead:
(a) Except as provided in subsections (b)-(d), all commission proceedings
regarding a sworn complaint, including records relating to a preliminary investigation, are
public records and are open to public inspection under title 10, chapter 7.
(b) All personal or professional financial records of the alleged violator are
confidential and not subject to public inspection.
(c) All information related to a sworn complaint against a candidate in an
election, as defined in § 2-10-102, is confidential and not subject to public inspection
during the period from thirty (30) days immediately preceding the commencement of
voting for that election through election day, unless the candidate requests in writing the
disclosure of the information.
(d) If a member of the commission or member of the commission staff knowingly
discloses information in violation of this section, then such disclosure is grounds for
immediate termination of a staff member's employment or immediate removal of a
commission member from office.
SECTION 13. Tennessee Code Annotated, Section 3-6-203(b)(1), is amended by
deleting the first two sentences and substituting instead:
The commission may refer a factually and legally sufficient complaint to
the office of the attorney general and reporter, who may conduct a preliminary
investigation, or the commission may conduct its own investigation, or the
commission may conduct a probable cause determination without first conducting
an investigation. If an investigation is requested, the commission shall make a
probable cause determination after the office of the attorney general and reporter
completes its investigation and reports its findings to the commission.
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SECTION 14. Tennessee Code Annotated, Section 67-4-1702, is amended by
designating the existing language as subsection (a) and adding the following as a new
subsection (b):
(b) Eighty percent (80%) of the privilege tax paid by registered lobbyists under
subdivision (a)(1), beginning in fiscal year 2025, must be allocated to the budget of the
bureau of ethics and campaign finance for purposes of replacing and updating its current
information technology platforms and website and to further offset the costs of the
bureau in performing its statutory responsibilities.
SECTION 15. Sections 2 and 11 of this act take effect on January 1, 2026, the public
welfare requiring it. All other provisions of this act take effect upon becoming law, the public
welfare requiring it.