AN ACT relating to campaign finance.

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AN ACT relating to campaign finance. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 121.175 is amended to read as follows: 3
(1) (a) No candidate, committee, or contributing organization shall permit funds in a 4
campaign account to be expended for any purpose other than for allowable 5
campaign expenditures. 6
(b) As used in this section, "allowable campaign expenditures": 7
1. Means expenditures including reimbursement for actual expenses, made 8
directly and primarily in support of or opposition to a candidate, 9
constitutional amendment, or public question which will appear on the 10
ballot and includes, but is not limited to, expenditures for staff salaries, 11
gifts and meals for volunteer campaign workers and fundraisers, food 12
and beverages provided at a campaign rally, advertising, office space, 13
necessary travel if reported, c ampaign paraphernalia, purchases of 14
advertisements in athletic and scholastic publications, communications 15
with constituents or prospective voters, polling and consulting, printing, 16
graphic arts, or advertising services, postage, office supplies, stationer y, 17
newsletters, and equipment which is used primarily for the 18
administration of the campaign, or for fees incurred from legal services 19
while defending a matter before the Kentucky Legislative Ethics 20
Commission in which the final adjudication is rendered in favor of the 21
candidate; and[.] 22
2. ["Allowable campaign expenditures" ] Does not include necessary travel 23
unless reported, expenditures o f funds in a campaign account for any 24
purpose made unlawful by other provisions of the Kentucky Revised 25
Statutes or which would bestow a private pecuniary benefit, except for 26
payment of the reasonable value of goods and services provided upon a 27
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candidate, member of the candidate's family, committee, or contributing 1
organization, or any of their employees, paid or unpaid, including: 2
tickets to an event which is unrelated to a political campaign or 3
candidacy; items of personal property for distribution to pro spective 4
voters except items bearing the name, likeness, or logo of a candidate or 5
a campaign-related communication; expenditures to promote or oppose 6
a candidacy for a leadership position in a governmental, professional, or 7
political organization, or othe r entity; and equipment or appliances the 8
primary use of which is for purposes outside of the campaign. 9
(c) The provisions of KRS 121.190 notwithstanding, a candidate shall not be 10
required to include a disclaimer on campaign stationery purchased with fund s 11
from his campaign account. 12
(2) A member of the General Assembly may utilize funds in his or her campaign 13
account to: 14
(a) Contribute up to five thousand dollars ($5,000) per year to a political party or 15
caucus campaign committee; 16
(b) Contribute directly to another candidate, slate of candidates, political party, or 17
caucus campaign committee until his or her campaign funds have been 18
exhausted and the account has been closed, if the amount of the contribution 19
does not exceed the contribution limits contained in KRS 121.150(6) and (11); 20
(c) Make allowable campaign expenditures in both election years and nonelection 21
years; 22
(d) Upon approval by the President of the Senate or the Speaker of the House of 23
Representatives, depending on the member's chamber: 24
1. Attend a conference, meeting, reception, or similar event; or 25
2. Attend an educational course or seminar that maintains or improves 26
skills employed by the member in carrying out the duties of his or her 27
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elective office; and 1
(e) Pay for fees incurred from legal services while defending a matter arising 2
from his or her campaign or election or the performance of his or her official 3
duties. 4
(3) (a) The use of campaign funds to pay for the reasonable costs of security 5
measures for a state candidate, officeholder, me mber of his or her family, 6
and employees of the candidate's campaign or the officeholder's office is an 7
allowable campaign expenditure, so long as the security measures address 8
ongoing dangers or threats that would not exist irrespective of the 9
individual's status or duties as a candidate or officeholder. Disbursements 10
for security measures shall be for the usual and normal charge for such 11
goods or services. 12
(b) As used in this subsection: 13
1. "Security measure" includes but is not limited to: 14
a. Nonstructural security devices, such as security hardware, locks, 15
alarm systems, motion detectors, and security camera systems; 16
b. Structural security devices, such as wiring, lighting, gates, doors, 17
and fencing, so long as such devices are intended solely to 18
provide security and not to improve the property or increase its 19
value; 20
c. Security personnel and services that are bona fide, legitimate, 21
and professional; and 22
d. Cybersecurity software, devices, and services; and 23
2. "Usual and normal charge" means: 24
a. In the ca se of goods, the price of those goods in the market in 25
which they are ordinarily purchased; and 26
b. In the case of services, the hourly or piecework charge for the 27
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services at a commercially reasonable rate prevailing at the time 1
the services are rendered. 2
(4)[(3)] The registry shall promulgate administrative regulations to implement and 3
enforce the provisions of subsection (1) of this section. 4
(5)[(4)] In lieu of the penalties provided in KRS 121.140 and 121.990 for a violation 5
of this section, the registry may, after hearing: 6
(a) For a violation which was not committed knowingly, order the violator to 7
repay the amount of campaign funds which were expended for other than 8
allowable campaign expenditures, and if not repaid within thirty (30) days, 9
may impose a fine of up to one hundred dollars ($100) for each day the 10
amount is not repaid, up to a maximum fine of one thousand dollars ($1,000); 11
and 12
(b) For a violation which was committed knowingly, in addition to referring the 13
matter for criminal prosecution, ord er the violator to repay the amount of 14
campaign funds which were expended for other than allowable campaign 15
expenditures, and if not repaid within thirty (30) days, may impose a fine of 16
up to one hundred dollars ($100) for each day the amount is not repaid , up to 17
a maximum fine of one thousand dollars ($1,000). 18