To repeal section 130.037, RSMo Supp. 1996, relating to elections, and to enact in lieu thereof one new section relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Section 130.037, RSMo Supp. 1996, is repealed and one new section enacted in lieu thereof, to be known as section 130.037, to read as follows:

     130.037. 1. [Notwithstanding other provisions of the law to the contrary, any person who was a candidate at an election held on or before November 8, 1994,] Any candidate for statewide office, state senator or state representative may form two candidate committees if that person's candidate committee reported outstanding obligations in excess of moneys on hand on the first report submitted after a general election pursuant to section 130.041 [after November 8, 1994]. One such committee shall be dedicated solely to raising moneys to pay off outstanding obligations of the candidate. The committee may accept funds from the candidate committee to pay off outstanding obligations. The committee may not engage in activities in support of the candidate for which it was formed, other than activities directly related to the retirement of debt. The committee may not contribute moneys to any other committee and may not make direct expenditures on behalf of any ballot issue. It may raise funds to retire the candidate's debt under the provisions of law in effect prior to November 8, 1994, so long as those contributions are expressly made to retire outstanding debt and are applied toward retiring such debt, but otherwise the provisions of this chapter apply. The treasurer and the candidate shall terminate the committee pursuant to section 130.021 within thirty days of its payment of the outstanding debt, provided however, that such termination shall take place no later than thirty-six months from the date of the election for a candidate for statewide office or state senator, or eighteen months from the date of the election for a candidate for state representative.

     2. If a candidate has formed or forms a candidate committee to raise funds for a future election, that committee may accept contributions in the amount authorized by law and may use any contributions received for any purpose lawful under this chapter, except the payment of debt [incurred before November 8, 1994]. Moneys in the official depository accounts of the two committees cannot be commingled.

     3. [The provisions of this section shall expire December 31, 1996.] Any political subdivision may adopt appropriate ordinances or regulations for the formation of a second candidate committee by a candidate for office within the political subdivision for the purpose of raising moneys to pay off outstanding obligations of the candidate; provided that such ordinances or regulations shall not apply to candidates for statewide office, state senator or state representative.