On April 14, 2025, the Connecticut State Legislature introduced Substitute Bill No. 1517, aimed at reforming campaign finance regulations specifically related to referendum questions. The bill seeks to address concerns over transparency and the influence of money in political campaigns, particularly in the context of referendums.

One of the key provisions of Senate Bill 1517 is the establishment of strict limits on contributions to political committees formed to support or oppose referendum questions. The bill stipulates that no individual or committee may contribute more than ten cents for each resident of the state or political subdivision where the referendum is being voted on, based on the most recent federal decennial census. This measure is designed to prevent large donations from skewing the democratic process and to ensure that local voices are not drowned out by outside interests.

Additionally, the bill includes regulations requiring that any written communication promoting or opposing a referendum must clearly disclose its funding sources. Specifically, it mandates that such communications must state "paid for by" followed by the name of the contributing business entity or organization, along with the name of its chief executive officer. This requirement aims to enhance accountability and allow voters to understand who is financially backing referendum campaigns.

The introduction of Senate Bill 1517 has sparked notable debate among lawmakers and advocacy groups. Proponents argue that the bill is a necessary step toward greater electoral integrity and public trust in the referendum process. They contend that limiting contributions will help level the playing field for grassroots organizations and local citizens who may lack the financial resources of larger entities.

Opponents, however, raise concerns about the potential chilling effect on free speech and the ability of organizations to advocate for their positions. Some critics argue that the contribution limits may hinder legitimate efforts to mobilize support for important issues, particularly those that require substantial funding for outreach and education.

The implications of Senate Bill 1517 extend beyond campaign finance reform. Economically, the bill could reshape how referendum campaigns are funded, potentially leading to a shift in the dynamics of local governance and community engagement. Politically, it may influence the outcomes of future referendums by altering the landscape of financial support for various initiatives.

As the legislative process unfolds, the future of Senate Bill 1517 remains uncertain. Lawmakers will continue to debate its provisions, and potential amendments may emerge as stakeholders weigh the balance between transparency and free expression in the political arena. The bill's progress will be closely monitored, as its passage could set a precedent for similar reforms in other states.