Section 410-RICR-10-00-6.2 - Purpose and ScopeA. The following regulation is proposed by the State Board of Elections under the authority of R.I. Gen. Laws Chapter 17-25 and is promulgated for the purpose of clarifying the reporting requirements for independent and coordinated expenditures in the aftermath of the United States Supreme Court decision rendered in Citizens United v. Federal Elections Commission, 130 S. Ct. 876, - U.S. - (2010). That Supreme Court decision struck down portions of Congress' Bipartisan Campaign Reform Act of 2002 ("BCRA"), which prohibited corporations and unions from using their general funds to make independent expenditures for speech that is an "electioneering communication" or for speech that expressly advocates the election or defeat of a candidate. In light of First Amendment protection that extends to corporations, the Supreme Court held that there is "no basis for allowing the government to limit corporate independent expenditures." (slip op. at 50). However, the Supreme Court likewise upheld the constitutionality of the disclaimer and disclosure and disclaimer provisions of BCRA. Under that Act, a person who makes a disbursement for producing and airing electioneering communications must file a report with the Federal Elections Commission which identifies the person making the disbursement, with related information, including the identities of those persons who shared or exercised direction or control over the activities of the person making the disbursement. BGRA also requires televised electioneering communications funded by anyone other than the candidate to include a disclaimer that the person funding the communication is responsible for the content of the advertisement. The disclaimer must be both audible and visibly displayed on the screen in a clearly readable manner. It must also display the name and address of the person or group that funded the advertisement.B. These "disclaimer and disclosure requirements may burden the ability to speak, but they 'impose no ceiling on campaign related activities,' Buckley, 424 U.S. at 64 and 'do not prevent anyone from speaking,' McConnell, 540 U.S. at 201." Disclosure requirements are justified based upon a valid governmental interest in "providing the electorate with information" about the sources of election-related spending. Buckley, 424 at 66. Such disclosure requirements help citizens "make informed choices in the political marketplace." 540 U.S. at 197 (internal quotations omitted). Indeed, the Supreme Court found that "there was evidence in the record that independent groups were running election-related advertisements 'while hiding behind dubious and misleading names.'" McConnell, 540 U.S. at 197 (quoting McConnell I, 251 F. Supp. 2nd at 237).C. Rhode Island law currently does not prohibit corporations from making independent expenditures. R.I. Gen. Laws § 17-25-10.1(h)(l) states, in part, that: 1. It shall be unlawful for any corporation, whether profit or non-profit, domestic corporation or foreign corporation, as defined in § 7-1.1-2, or other business entity to make any campaign contribution or expenditure, as defined in R.I. Gen. Laws § 17-25-3, to or for any candidate, political action committee, or political party committee, or for any candidate, political action committee, or political party committee to accept any campaign contribution or expenditure from a corporation or other business entity.D. The terms "contributions" and "expenditures" are defined under RI. Gen. Laws § 17-25-3 and do not include independent expenditures: 1. "Contributions" and "expenditures" include all transfers of money, credit or debit card transactions on-line or electronic payment systems such as "PayPal," paid personal services, or other things of value to or by any candidate, committee of a political party, or political action committee or ballot question advocate. A loan shall be considered a contribution of money until it is repaid.E. Thus, the existing statute on prohibitions for corporate expenditures does not reach independent expenditures, but only payments and expenditures to or on behalf of a candidate, committee of a political party or political action committee or ballot question advocate.410 R.I. Code R. 410-RICR-10-00-6.2