970 CMR, § 1.09

Current through Register 1533, October 25, 2024

Section 1.09 - Contributions by Credit or Debit Card

(1)Definitions. For the purpose of making and receiving contributions by credit or debit card pursuant to M.G.L. c. 55, § 9 and 970 CMR 1.09, the following terms shall have the following meanings:

Cardholder means the person or political committee whose name appears on a credit or debit card and who is directly liable for the payment of any credit extended or funds expended.

Card Issuing Bank means the bank or other financial institution that issues a credit or debit card.

Credit Card means a credit or debit card or other similar device issued by a card issuing bank or other business authorizing the cardholder to buy goods or services. For purposes of 970 CMR 1.00, credit card contributions also include contributions made from a contributor's bank account by electronic transfer.

Internet Transactions include transactions made via a committee website, a committee vendor's website, a mobile application "app", crowd funding website or social media.

Paper Record means a credit card receipt or other printed record documenting a credit card transaction.

Vendor means a bank or other business authorized to process credit card transactions, or an individual or entity that provides services for campaign fundraising on the Internet to political committees.

(2)Internet Transactions. Except as provided in 970 CMR 1.09(2)(d), internet transactions may be received only if the contributor, contemporaneously with the making of the contribution, certifies that the contributor is using the contributor's own credit card, which is in the contributor's name, and also certifies that the contributor's personal funds are the true source of the contribution. In addition, the contribution may be accepted only if the contributor, contemporaneously with the making of the contribution, provides his or her name and residential address, and if the amount contributed by a single contributor is $200 or more in the aggregate during the calendar year, their occupation and employer. A political committee may not, except as provided in 970 CMR 1.09(2)(d), process a credit card transaction made via the Internet if the required acknowledgment and contributor information is not provided contemporaneously with the contribution.

(a)Agreements with Vendors. A political committee must enter into an agreement with a vendor i.e., a "user agreement" in order to receive contributions by credit card over the Internet. Any such agreement must include procedures that the vendor will follow to ensure compliance with M.G.L. c. 55, § 9, and 970 CMR 1.09. In addition to any other requirements of 970 CMR 1.09, such agreement must demonstrate compliance with the following:

1. The financial agreement between the political committee and the vendor must be consistent with customary and usual business practices.

2. The vendor may not provide a discount or other financial incentive to a political committee that is not available to any other candidate, political committee or the general public.

3. The committee must, in addition to being responsible for any portion of contributions deducted during processing by the vendor, also pay any applicable additional fees established by the vendor.

(b)Screening and Compliance. Except as provided in 970 CMR 1.09(2)(d), the vendor, or the political committee, shall cause to be displayed on the contributor's computer screen, or otherwise display, appropriate questions requiring a response from the contributor to determine whether the source and amount of a contribution complies with M.G.L. c. 55 and 970 CMR 1.09. Such questions shall require the contributor to answer with an affirmative act such as clicking or tapping the cursor in a box or pressing the enter key on the computer keyboard. In addition, a Website or other Internet site or app that is used to solicit contributions by credit card must:

1. clearly identify the name of the political committee that is soliciting such contributions;

2. require that contributors certify by making an affirmative action that the contributor is responsible for paying all charges incurred in using the credit card to make a contribution and that the contributor's personal funds will be the true source of the contribution in accordance with M.G.L. c. 55, § 10; and

3. make a clear distinction between information that is required by law or regulation and information that is optional, if any. For example, a Website could indicate required information such as a contributor's name and residential address in red and optional information such as a contributor's interest in working as a volunteer in green.

(c)Confirmation of Contribution. The vendor, or the political committee, must promptly send written confirmation of each contribution made over the Internet to the contributor by email or, if the contributor does not have or does not provide an email address, by first class mail, postage prepaid.

(d)Contributions Made Using Peer-to-Peer Payment ("P2P") Applications. Contributions may be received through the use of P2P applications without contemporaneously obtaining contributor certifications required by 970 CMR 1.09(2), or the name and residential address of the contributor at the time of receipt, in the following circumstances:

1. the amount contributed by the contributor to the candidate or committee through P2P payment is no more than $50 during a calendar year;

2. the contribution was authorized and withdrawn from the contributor's personal funds; and

3. the candidate or committee receiving the contribution knows the identity of the contributor at the time the contribution is received and obtains, within seven days after the receipt of the contribution, the residential address of the contributor. The candidate or committee must maintain records regarding all contributions, regardless of amount, and anonymous contributions are prohibited. Recipient candidates and committees must keep records of all contributions received, and such records must include the residential address of all contributors, regardless of amount.

(e)Anonymous Contributions. If unable to determine or verify the identity of a contributor, funds received must be purged in accordance with the residual funds clause of M.G.L. c. 55, § 18.

(3)Credit Card Contributions Not Made via the Internet - Credit Card Agreements. A political committee may enter into an agreement with a vendor in order to receive contributions by credit card other than via the Internet, except as prohibited in 970 CMR 1.09(4). All contributions received pursuant to 970 CMR 1.09(3) must be documented by an electronic or back-up paper record. Any such agreement between a political committee and a vendor must comply with 970 CMR 1.09 including, but not limited to, 970 CMR 1.09(2).

(4)Credit Card Contributions by Verbal Communication by Phone. Such contributions are prohibited.

(5)Recordkeeping and Disclosure.

(a) A political committee soliciting or receiving contributions by credit card shall maintain printed and, if a contribution is received over the Internet, electronic and back-up printed records of each contribution. Such records, which shall be maintained for six years from the date of the relevant election, shall include the:

1. name and residential address of an individual contributor;

2. date received and amount of the contribution;

3. occupation and employer if the contribution is equal to or greater than $200 or if the aggregate of all contributions received from a contributor within any one calendar year is equal to or greater than $200;

4. any costs or fees deducted by or paid to the vendor; and

5. the billing address used by the contributor for receipt of credit or card bills, if different from the residential address of the contributor.

(b) For credit card contributions authorized in any month other than December that are received by a non-depository committee, contributions made by credit card shall be disclosed as received by a political committee on the day that the committee has access to the funds. Credit card contributions authorized in December, but not received until the following calendar year, are considered "received" in the year in which the contributions were authorized, and are reported in the year-end report for that calendar year.

(c) A political committee receiving contributions by credit card must report as receipts, on the committee's campaign finance reports, the full (gross) amount of each contribution before the payment of any fees or deductions to the vendor, or card issuing bank. In addition, all fees paid to or deducted from contributions by a vendor for processing such contributions must be reported by the committee as expenditures in accordance with M.G.L. c. 55, and 970 CMR 1.09.

(d) In accordance with 970 CMR 1.04(8), political committees must review all contributions received by credit card to determine that such contributions comply with both the source and limitation requirements of the campaign finance law. Any contribution determined to be illegal or in excess of the limits of M.G.L. c. 55 shall be refunded in accordance with 970 CMR 1.04(8) to the contributor.

(e) Political committees that receive credit card contributions must obtain processing information from the vendor reflecting contributions received, which itemizes actual deposits made by the vendor to the committee's account, and lists all contributions that cleared or were declined by the issuing bank and also must obtain all information required by 970 CMR 1.09(5)(a);

(f) After receiving the processing information from the vendor, the political committee must reconcile the information to the information provided by the committee's bank regarding actual deposits, to ensure the accuracy of information the committee will file with OCPF.

(6)Depository Committees.

(a) Within seven business days of receipt of the contribution from the card issuing bank, the vendor or committee shall deposit the total amount of the contribution into the political committee's depository account, unless the agreement between the political committee and the vendor authorizes the vendor to deduct transaction costs or fees from a credit card contribution received in which case the vendor may deposit the net proceeds of such contribution into the political committee's depository account. For purposes of filing disclosure reports required by the campaign finance law, a deposit of a contribution made by credit card is deemed to take place on the day the funds are received into the committee's account either by check or electronic transfer, if the contribution was authorized in any month other than December. A credit card contribution authorized in December but not received until the following calendar year is considered a "receipt in transit" and is reported in the previous year's year-end report.

(b) Each candidate and each treasurer of a political committee required to designate a depository account shall file reports of credit card receipts with the Director. These reports shall be filed no later than the fifth day of each month, complete as of the first day of that month. The reports shall contain the following information regarding the credit card contributions deposited in the committee's account during the reporting period:

1. The full name and residential address of each contributor where the contribution was in excess of $50.00 or where the aggregate of all contributions received from that contributor within the calendar year has exceeded $50.00, along with the date of the deposit and amount of contribution, and the contributor's occupation and employer if aggregate contributions by that contributor has equaled or exceeded $200.00 for the calendar year. In the case of a credit card contribution by a trust, foundation or association, other than a political committee, the names and addresses of its principal officers shall also be disclosed as required by M.G.L. c. 55, § 10;

2. The total amount of contributions itemized pursuant to 970 CMR 1.09(6)(b)1.;

3. The total amount of contributions $50.00 and under;

4. The total amount of credit card receipts; and

5. The total proceeds of credit card contributions deposited in the committee account. If this amount is less than total amount of credit card receipts for the reporting period due to a vendor having deducted a fee prior to depositing a contribution into the committee's depository account in accordance with 970 CMR 1.09(6)(a), then the total amount of fees deducted by the vendor during the reporting period shall also be disclosed. This figure should be calculated by subtracting the aggregate proceeds of credit card contributions deposited during the reporting period from the total amount of credit card receipts reported pursuant to 970 CMR 1.09(6)(b)4, and entered on the deposit report as a "merchant provider fee".

(c) The information required to be forwarded in accordance with 970 CMR 1.09(6)(b) shall be submitted electronically in compliance with M.G.L. c. 55, § 18C.

(d) Depository committees that receive contributions by credit card must request information from vendors and obtain information regarding contributions received in accordance with 970 CMR 1.09(5)(e) and perform the reconciliation required by 970 CMR 1.09(5)(f) prior to filing each report of contributions received with OCPF.