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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 121.015 is amended to read as follows: 3
As used in this chapter: 4
(1) "Registry" means the Kentucky Registry of Election Finance; 5
(2) "Election" means any primary, regular, or special election to fill vacancies 6
regardless of whether a candidate or sl ate of candidates is opposed or unopposed in 7
an election. Each primary, regular, or special election shall be considered a separate 8
election; 9
(3) "Committee" includes the following: 10
(a) "Campaign committee," which means one (1) or more persons who receive 11
contributions and make expenditures to support or oppose one (1) or more 12
specific candidates or slates of candidates for nomination or election to any 13
state, county, city, or district office, that is authorized by the candidate or slate 14
of candidates to receive contributions, make expenditures, and generally 15
conduct a campaign for the candidate or slate of candidates, but does not 16
include an entity established solely by a candidate which is managed solely by 17
a candidate and a campaign treasurer and whose name is generic in nature, 18
such as "Friends of (the candidate)," and does not reflect that other persons 19
have structured themselves as a committee, designated officers of the 20
committee, an d assigned responsibilities and duties to each officer with the 21
purpose of managing a campaign to support or oppose a candidate in an 22
election; 23
(b) "Independent expenditure -only committee," which means one (1) or more 24
persons who receive unlimited contribu tions for the purpose of making only 25
independent expenditures to support or oppose one (1) or more specific 26
candidates or slates of candidates for nomination or election to any state, 27
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county, city, or district office; 1
(c) "Caucus campaign committee," which means members of one (1) of the 2
following caucus groups who receive contributions and make expenditures to 3
support or oppose one (1) or more specific candidates or slates of candidates 4
for nomination or election, or a committee: 5
1. House Democratic caucus campaign committee; 6
2. House Republican caucus campaign committee; 7
3. Senate Democratic caucus campaign committee; 8
4. Senate Republican caucus campaign committee; or 9
5. Subdivisions of the state executive committee of a minor political party, 10
which serve the same function as the above -named committees, as 11
determined by regulations promulgated by the registry; 12
(d) "Political issues committee," which means three (3) or more persons joining 13
together to advocate or oppose a ballot measure if that committee rec eives or 14
expends money in excess of one thousand dollars ($1,000); 15
(e) "Permanent committee," which means a group of individuals, including an 16
association, committee, or organization, other than a campaign committee, 17
independent expenditure -only committee, federally registered political 18
committee, political issues committee, inaugural committee, caucus campaign 19
committee, or party executive committee, which is established as, or intended 20
to be, a permanent organization having as a primary purpose expressly 21
advocating the election or defeat of one (1) or more clearly identified 22
candidates, slates of candidates, or political parties, which functions on a 23
regular basis throughout the year; 24
(f) An executive committee of a political party; and 25
(g) "Inaugural comm ittee," which means one (1) or more persons who receive 26
contributions and make expenditures in support of inauguration activities for 27
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any candidate or slate of candidates elected to any state, county, city, or 1
district office; 2
(4) "Contributing organization" means a group which merely contributes to candidates, 3
slates of candidates, campaign committees, caucus campaign committees, or 4
executive committees from time to time from funds derived solely from within the 5
group, and which does not solicit or receive funds from sources outside the group 6
itself. Any contributions made by the groups in excess of one hundred dollars 7
($100) shall be reported to the registry; 8
(5) "Testimonial affair" means an affair held in honor of a person who holds or who is 9
or was a ca ndidate for nomination or election to a political office in this state 10
designed to raise funds for any purpose not charitable, religious, or educational; 11
(6) "Contribution" means any: 12
(a) Payment, distribution, loan, deposit, or gift of money or other thin g of value, 13
to a candidate, his or her agent, a slate of candidates, its authorized agent, a 14
committee, or contributing organization. As used in this subsection, "loan" 15
shall include a guarantee, endorsement, or other form of security where the 16
risk of non payment rests with the surety, guarantor, or endorser, as well as 17
with a committee, contributing organization, candidate, slate of candidates, or 18
other primary obligor. No person shall become liable as surety, endorser, or 19
guarantor for any sum in any one (1) election which, when combined with all 20
other contributions the individual makes to a candidate, his or her agent, a 21
slate of candidates, its agent, a committee, or a contributing organization, 22
exceeds the contribution limits provided in KRS 121.150; 23
(b) Payment by any person other than the candidate, his or her authorized 24
treasurer, a slate of candidates, its authorized treasurer, a committee, or a 25
contributing organization, of compensation for the personal services of 26
another person which are rendered to a candidate, slate of candidates, 27
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committee, or contributing organization, or for inauguration activities; 1
(c) Goods, advertising, or services with a value of more than one hundred dollars 2
($100) in the aggregate in any one (1) election which are furnis hed to a 3
candidate, slate of candidates, committee, or contributing organization or for 4
inauguration activities without charge, or at a rate which is less than the rate 5
normally charged for the goods or services; or 6
(d) Payment by any person other than a c andidate, his or her authorized treasurer, 7
a slate of candidates, its authorized treasurer, a committee, or contributing 8
organization for any goods or services with a value of more than one hundred 9
dollars ($100) in the aggregate in any one (1) election wh ich are utilized by a 10
candidate, slate of candidates, committee, or contributing organization, or for 11
inauguration activities; 12
(7) Notwithstanding the foregoing meanings of "contribution," the word shall not be 13
construed to include: 14
(a) Services provided without compensation by individuals volunteering a portion 15
or all of their time on behalf of a candidate, a slate of candidates, committee, 16
or contributing organization; 17
(b) A loan of money by any financial institution doing business in Kentucky 18
made in acc ordance with applicable banking laws and regulations and in the 19
ordinary course of business; or 20
(c) An independent expenditure by any individual or permanent committee; 21
(8) "Candidate" means any person who has received contributions or made 22
expenditures, has appointed a campaign treasurer, or has given his or her consent 23
for any other person to receive contributions or make expenditures with a view to 24
bringing about his or her nomination or election to a nonfederal public office, 25
except as provided in KRS 121.180(10)(b); 26
(9) "Slate of candidates" means: 27
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(a) Between the time a certificate or petition of nomination has been filed for a 1
candidate for the office of Governor under KRS 118.365 and the time the 2
candidate designates a running mate for the office of Lieutenant Governor 3
under KRS 118.126, a slate of candidates consists of the candidate for the 4
office of Governor; and 5
(b) After that candidate has designated a running mate under KRS 118.126, that 6
same slate of candidates consists of that same candidate for the office of 7
Governor and the candidate's running mate for the office of Lieutenant 8
Governor. Unless the context requir es otherwise, any provision of law that 9
applies to a candidate shall also apply to a slate of candidates; 10
(10) "Knowingly" means, with respect to conduct or to a circumstance described by a 11
statute defining an offense, that a person is aware or should have been aware that 12
his or her conduct is of that nature or that the circumstance exists; 13
(11) "Fundraiser" means an individual who directly solicits and secures contributions on 14
behalf of a candidate or slate of candidates for a statewide -elected state office or an 15
office in a jurisdiction with a population in excess of two hundred thousand 16
(200,000) residents; 17
(12) "Independent expenditure" means: 18
(a) The expenditure of money or other things of value for a communication which 19
expressly advocates the election or defeat of a clearly identified candidate or 20
slate of candidates, and which: 21
1. Is made without any coordination, consultation, or cooperation with any 22
candidate, slate of candidates, campaign committee, or any authorized 23
person acting on behalf of any of them; and 24
2. Is not made in concert with, or at the request or suggestion of any 25
candidate, slate of candidates, campaign committee, or any authorized 26
person acting on behalf of any of them; or 27
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(b) The expenditure of money or other things of value for a communication which 1
expressly advocates or opposes a ballot measure, and which: 2
1. Is made without any coordination, consultation, or cooperation with any 3
political issues committee, or any authorized person acting on behalf of 4
a political issues committee; and 5
2. Is not made in concert with, or at the request or suggestion of, any 6
political issues committee, or any authorized person acting on behalf of 7
a political issues committee; 8
(13) "Electronic reporting" means the use of technology, having electrical , digital, 9
magnetic, wireless, optical, electromagnetic, or similar capabilities, by which an 10
individual or other entity submits, compiles, or transmits campaign finance reports 11
to the registry, or by which the registry receives, stores, analyzes, or discl oses the 12
reports; 13
(14) "Security procedure" means a procedure employed for the purpose of verifying that 14
an electronic signature, record, or performance is that of a specific person or for 15
detecting changes or errors in the information in an electronic rec ord. The term 16
includes a procedure that requires the use of algorithms or other codes, identifying 17
words or numbers, encryption, or callback or other acknowledgment procedures; 18
(15) "Electronic signature" means an electronic sound, symbol, or process attac hed to or 19
logically associated with a record and executed or adopted by a person with the 20
intent to sign the record; 21
(16) "Filer" means any candidate, a slate of candidates, committee, or other individual or 22
entity required to submit financial disclosure reports to the registry; 23
(17) "Filer-side software" means software provided to or used by the filer that enables 24
transmittal of financial reports to the registry; 25
(18) "Form" means an online web page or an electronic document designed to capture, 26
validate, and submit data for processing to the registry, unless the context otherwise 27
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prescribes; 1
(19) "Reasonable cause" means an event, happening, or circumstance entirely beyond 2
the knowledge or control of the candidate, slate of candidates, or committee, which 3
has exercised due care and prudence in maintaining the records of the campaign or 4
committee pursuant to statute or administrative regulation; 5
(20) "Foreign national" means: 6
(a) An individual who is not a citizen or lawful permanent resident of the United 7
States; 8
(b) A government, political subdivision, or municipality of a foreign country; 9
(c) A foreign political party; 10
(d) Any entity, including but not limited to a partnership, association, corporation, 11
organization, or other combination of persons, that i s organized under the 12
laws of or has its principal place of business in a foreign country; or 13
(e) Any entity in the United States, including but not limited to a partnership, 14
association, corporation, or organization that is wholly or majority owned by 15
any foreign national, unless: 16
1. Any contribution or expenditure the entity makes derives entirely from 17
funds generated by the entity's United States operations; and 18
2. All decisions concerning the contribution or expenditure, except for 19
setting overall budget amounts, are made by individuals who are United 20
States citizens or permanent residents; 21
(21) "Ballot measure" means a question, other than the nomination or election of a 22
candidate for public office, which has been: 23
(a) Approved by a political subdivisio n or the General Assembly and is required 24
by law to be placed before the voters of the territory affected; or 25
(b) Initiated or referred by citizen petition as authorized by KRS 242.020 and 26
placed before the voters of the territory affected; 27
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(22) "Preliminary activity" includes but is not limited to: 1
(a) Participating in focus groups; 2
(b) Making telephone calls; 3
(c) Traveling; 4
(d) Conducting polls; and 5
(e) Drafting ballot measure language;[ and] 6
(23) "Tax-exempt organization" means an organization described in 26 U.S.C. sec. 7
501(c) and exempt from federal taxation under 26 U.S.C. sec. 501(a). This 8
subsection shall not b e construed to treat a political organization under 26 U.S.C. 9
sec. 527 as a tax-exempt organization for purposes of this chapter; and 10
(24) "Expenditure" means a payment, contribution, loan, or promise of payment of 11
money or anything of ascertainable monetary value for goods, materials, services, 12
or facilities in assistance of, or in opposition to, the nomination or election of a 13
candidate, or the passage or defeat of a ballot question. For reporting purposes, 14
an expenditure is considered to be made at the t ime the payment, contribution, 15
loan, or promise of payment of money is obligated. 16
Section 2. KRS 121.150 is amended to read as follows: 17
(1) No contribution shall be made or received, directly or indirectly, other than an 18
independent expenditure, to support inauguration activities or to support or defeat a 19
candidate, slate of candidates, constitutional amendment, or public question which 20
will appear on the ballot in an election, except through the duly appointed campaign 21
manager, or campaign treasurer of the candidate, slate of candidates, or registered 22
committee. Any person making an independent expenditure, shall report these 23
expenditures when the expenditures by that person exceed five hundred dollars 24
($500) in the aggre gate in any one (1) election, on a form provided or using a 25
format approved by the registry and shall sign a statement on the form, under 26
penalty of perjury, that the expenditure was an actual independent expenditure and 27
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that there was no prior communicati on with the campaign on whose behalf it was 1
made. 2
(2) Except as provided in KRS 121.180(10), the solicitation from and contributions by 3
campaign committees, independent expenditure -only committees, caucus campaign 4
committees, political issues committees, p ermanent committees, and party 5
executive committees to any religious, charitable, civic, eleemosynary, or other 6
causes or organizations established primarily for the public good is expressly 7
prohibited; except that it shall not be construed as a violation of this section for a 8
candidate or a slate of candidates to contribute to religious, civic, or charitable 9
groups. 10
(3) No candidate, slate of candidates, committee, or contributing organization, nor 11
anyone acting on their behalf, shall accept any anonymous contribution in excess of 12
one hundred dollars ($100), and all anonymous contributions in excess of one 13
hundred dollars ($100) shall be returned to the donor, if the donor can be 14
determined. If no donor is found, the contribution shall escheat to the state. No 15
candidate, slate of candidates, committee, or contributing organization, nor anyone 16
acting on their behalf shall accept anonymous contributions in excess of two 17
thousand dollars ($2,000) in the aggregate in any one (1) election. Anonymous 18
contributions in excess of two thousand dollars ($2,000) in the aggregate which are 19
received in any one (1) election shall escheat to the state. 20
(4) No candidate, slate of candidates, committee, or contributing organization, nor 21
anyone on their behalf, shall accept a c ash contribution in excess of one hundred 22
dollars ($100) in the aggregate from each contributor in any one (1) election. No 23
candidate, slate of candidates, committee, or contributing organization, nor anyone 24
on their behalf, shall accept a cashier's check or money order in excess of the 25
maximum cash contribution limit unless the instrument clearly identifies both the 26
payor and the payee. A contribution made by cashier's check or money order which 27
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identifies both the payor and payee shall be treated as a con tribution made by check 1
for purposes of the contribution limits contained in this section. No person shall 2
make a cash contribution in excess of one hundred dollars ($100) in the aggregate 3
in any one (1) election to a candidate, slate of candidates, commit tee, or 4
contributing organization, nor anyone on their behalf. 5
(5) No candidate, slate of candidates, committee, contributing organization, nor anyone 6
on their behalf, shall accept any contribution in excess of one hundred dollars 7
($100) from any person wh o shall not become eighteen (18) years of age on or 8
before the day of the next general election. 9
(6) Except as provided in subsection (23)[(22)] of this section, no candidate, slate of 10
candidates, campaign committee, nor anyone acting on their behalf, shal l accept a 11
contribution of more than two thousand dollars ($2,000) as indexed for inflation 12
every odd -numbered year using the preceding year's percent increase in the non -13
seasonally adjusted annual average Consumer Price Index for all Urban Consumers 14
(CPI-U), U.S. City Average, All Items, for that year as published by the United 15
States Bureau of Labor Statistics and rounded to the nearest hundred dollars, from 16
any person, permanent committee, or contributing organization in any one (1) 17
election. No person, permanent committee, or contributing organization shall 18
contribute more than two thousand dollars ($2,000) as indexed for inflation every 19
odd-numbered year using the preceding year's percent increase in the non -20
seasonally adjusted annual average Consumer P rice Index for all Urban Consumers 21
(CPI-U), U.S. City Average, All Items, as published by the United States Bureau of 22
Labor Statistics and rounded to the nearest hundred dollars, to any one (1) 23
candidate, campaign committee, nor anyone acting on their beha lf, in any one (1) 24
election. 25
(7) Permanent committees or contributing organizations affiliated by bylaw structure or 26
by registration, as determined by the Registry of Election Finance, shall be 27
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considered as one (1) committee for purposes of applying the c ontribution limits of 1
subsection (6) of this section. 2
(8) No permanent committee shall contribute funds to another permanent committee for 3
the purpose of circumventing contribution limits of subsection (6) of this section. A 4
permanent committee or independ ent expenditure -only committee may make 5
unlimited contributions to an independent expenditure -only committee, or as 6
allowed by federal law to a federally registered political committee, provided that if 7
a contribution is earmarked for a particular independ ent expenditure, the person 8
making the independent expenditure shall disclose the contribution when reporting 9
the independent expenditure pursuant to subsection (1) of this section. 10
(9) No person shall contribute funds to a permanent committee, political i ssues 11
committee, or contributing organization for the purpose of circumventing the 12
contribution limits of subsection (6) of this section. 13
(10) No person shall contribute more than two thousand dollars ($2,000) as indexed for 14
inflation every odd -numbered ye ar using the preceding year's percent increase in 15
the non -seasonally adjusted annual average Consumer Price Index for all Urban 16
Consumers (CPI-U), U.S. City Average, All Items, for that year as published by the 17
United States Bureau of Labor Statistics and rounded to the nearest hundred dollars, 18
to a permanent committee or contributing organization in any one (1) year. 19
(11) (a) No person shall contribute more than five thousand dollars ($5,000) to the 20
state executive committee of a political party in any one (1) year. The 21
contribution limit in this paragraph shall not apply to a contribution 22
designated exclusively for a state executive committee's building fund account 23
established under KRS 121.172. 24
(b) No person shall contribute more than five thousand dolla rs ($5,000) to a 25
subdivision or affiliate of a state political party in any one (1) year. 26
(c) No person shall contribute more than five thousand dollars ($5,000) to a 27
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caucus campaign committee in any one (1) year. 1
(12) No person shall make a payment, distr ibution, loan, advance, deposit, or gift of 2
money to another person to contribute to a candidate, a slate of candidates, 3
committee, contributing organization, or anyone on their behalf. No candidate, slate 4
of candidates, committee, contributing organizatio n, nor anyone on their behalf 5
shall accept a contribution made by one (1) person who has received a payment, 6
distribution, loan, advance, deposit, or gift of money from another person to 7
contribute to a candidate, a slate of candidates, committee, contribu ting 8
organization, or anyone on their behalf. 9
(13) No candidate, slate of candidates, committee, contributing organization, or 10
anyone on their behalf shall make an expenditure to an intermediary, including 11
subcontractors, for the purpose of making a paymen t to another person. 12
Expenditures shall be made directly to the provider of goods or personal services. 13
(14) Subject to the provisions of subsection (18)[(17)] of this section, no candidate or 14
slate of candidates for nomination to any state, county, city, or district office, nor 15
their campaign committees, nor anyone on their behalf, shall solicit or accept 16
contributions for primary election expenses after the date of the primary. No person 17
other than the candidate or slate of candidates shall contribute for primary election 18
expenses after the date of the primary. 19
(15)[(14)] Subject to the provisions of subsection (18)[(17)] of this section, no candidate 20
or slate of candidates for any state, county, city, or district office at a regular 21
election, nor their campaign committees, nor anyone on their behalf, shall solicit or 22
accept contributions for regular election expenses after the date of the regular 23
election. No pers on other than the candidate or slate of candidates shall contribute 24
for regular election expenses after the date of the regular election. 25
(16)[(15)] Subject to the provisions of subsection (18)[(17)] of this section, no candidate 26
or slate of candidates for nomination or election to any state, county, city, or district 27
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office, nor their campaign committees, nor anyone on their behalf, shall solicit or 1
accept contributions for special election expenses after the date of the special 2
election. No person other t han the candidate or slate of candidates shall contribute 3
for special election expenses after the date of the special election. 4
(17)[(16)] The provisions of subsections (14)[(13)] and (15)[(14)] of this section shall 5
apply only to those candidates in a pri mary or regular election which shall be 6
conducted subsequent to January 1, 1989. The provisions of subsection (16)[(15)] 7
of this section shall apply only to those candidates or slates of candidates in a 8
special election which shall be conducted subsequent to January 1, 1993. 9
(18)[(17)] A candidate, slate of candidates, or a campaign committee may solicit and 10
accept contributions after the date of a primary election, regular election, or special 11
election to defray necessary expenses that arise after the date of the election 12
associated with election contests, recounts, and recanvasses of a specific election, 13
complaints regarding alleged campaign finance violations that are filed with the 14
registry pertaining to a specific election, or other legal actions pertai ning to a 15
specific election to which a candidate, slate of candidates, or campaign committee 16
is a party, and for repayment of debts and obligations owed by the campaign or 17
previous campaign for the same office. Reports of contributions received and 18
expenditures made after the date of the specific election shall be made in 19
accordance with KRS 121.180. 20
(19)[(18)] No candidate, slate of candidates, committee, except a political issues 21
committee, independent expenditure -only committee, or contributing organizat ion, 22
nor anyone on their behalf, shall knowingly accept a contribution from a 23
corporation, directly or indirectly, except to the extent that the contribution is 24
designated to a state executive committee's building fund account established under 25
KRS 121.172. 26
(20)[(19)] Nothing in this section shall be construed to restrict the ability of a 27
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corporation to administer its permanent committee insofar as its actions can be 1
deemed not to influence an election as prohibited by KRS 121.025. 2
(21)[(20)] No candidate, slate of candidates, or committee, nor anyone on their behalf, 3
shall solicit a contribution of money or services from a state employee, whether or 4
not the employee is covered by the classified service provisions of KRS Chapter 5
18A. However, it shall not be a violation of this subsection for a state employee to 6
receive a solicitation directed to him or her as a registered voter in an identified 7
precinct as part of an overall plan to contact voters not identified as state 8
employees. 9
(22)[(21)] No candidate or slate of candidates for any office in this state shall accept a 10
contribution, including an in -kind contribution, which is made from funds in a 11
federal campaign account. No person shall make a contribution, including an in -12
kind contribution, from funds in a federal campaign account to any candidate or 13
slate of candidates for any office in this state. 14
(23)[(22)] It shall be permissible for a married couple to make a contribution with one 15
(1) check that reflects the combined individual contribu tion limits of each 16
individual spouse per election, as set forth in subsection (6) of this section, for all 17
elections in a calendar year and the following shall be required to be written on the 18
check: 19
(a) The signatures of both spouses on the signature line of the check; and 20
(b) The designation of each contribution amount and the election or elections to 21
which they apply shall be memorialized on the memo line of the check. 22