Session of 2023 HOUSE BILL No. 2167 By Committee on Elections 1-25 AN ACT concerning campaign finance; regulating the use of cryptocurrency; prohibiting the use of campaign funds for a candidate for federal office; amending K.S.A. 25-4153 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas: Section 1. K.S.A. 25-4153 is hereby amended to read as follows: 25- 4153. (a) The aggregate amount contributed to a candidate and such candidate's candidate committee and to all party committees and political committees and dedicated to such candidate's campaign, by any political committee or any person except a party committee, the candidate or the candidate's spouse, shall not exceed the following: (1) For the pair of offices of governor and lieutenant governor or for other state officers elected from the state as a whole, $2,000 for each primary election (or in lieu thereof a caucus or convention of a political party) and an equal amount for each general election. (2) For the office of member of the house of representatives, district judge, district magistrate judge, district attorney or a candidate for local office, $500 for each primary election (or in lieu thereof a caucus or convention of a political party) and an equal amount for each general election. (3) For the office of state senator or member of the state board of education, $1,000 for each primary election (or in lieu thereof a caucus or convention of a political party) and an equal amount for each general election. (b) For the purposes of this section, the face value of a loan at the end of the period of time allocable to the primary or general election is the amount subject to the limitations of this section. A loan in excess of the limits herein provided may be made during the allocable period if such loan is reduced to the permissible level, when combined with all other contributions from the person making such loan, at the end of such allocable period. (c) For the purposes of this section, all contributions made by unemancipated children under 18 years of age shall be considered to be contributions made by the parent or parents of such children. The total amount of such contribution shall be attributed to a single custodial parent 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 HB 2167 2 and 50% of such contribution to each of two parents. (d) The aggregate amount contributed to a state party committee by a person other than a national party committee or a political committee shall not exceed $15,000 in each calendar year; and the aggregate amount contributed to any other party committee by a person other than a national party committee or a political committee shall not exceed $5,000 in each calendar year. The aggregate amount contributed by a national party committee to a state party committee shall not exceed $25,000 in any calendar year, and the aggregate amount contributed to any other party committee by a national party committee shall not exceed $10,000 in any calendar year. The aggregate amount contributed to a party committee by a political committee shall not exceed $5,000 in any calendar year. (e) Any political funds which have been collected and were not subject to the reporting requirements of this act shall be deemed a person subject to these contribution limitations. (f) (1) Any political funds which have been collected and were subject to the reporting requirements of the campaign finance act shall not be used in or for the campaign of a candidate for a federal elective office. (2) Any political funds that have been collected by a candidate or candidate committee and were subject to the reporting requirements of the campaign finance act shall not be used in or for the campaign of a candidate for a federal elective office. (g) The amount contributed by each individual party committee of the same political party other than a national party committee to any candidate for office, for any primary election at which two or more candidates are seeking the nomination of such party shall not exceed the following: (1) For the pair of offices of governor and lieutenant governor and for each of the other state officers elected from the state as a whole, $2,000 for each primary election (or in lieu thereof a caucus or convention of a political party). (2) For the office of member of the house of representatives, district judge, district magistrate judge, district attorney or a candidate for local office, $500 for each primary election (or in lieu thereof a caucus or convention of a political party). (3) For the office of state senator or member of the state board of education, $1,000 for each primary election (or in lieu thereof a caucus or convention of a political party). (h) When a candidate for a specific cycle does not run for office, the contribution limitations of this section shall apply as though the individual had sought office. (i) No person shall make any contribution or contributions to any candidate or the candidate committee of any candidate in the form of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2167 3 money or currency of the United States which in the aggregate exceeds $100 for any one primary or general election, and no candidate or candidate committee of any candidate shall accept any contribution or contributions in the form of money or currency of the United States which in the aggregate exceeds $100 from any one person for any one primary or general election. (j) (1) No person shall make or accept any cryptocurrency contribution for any candidate or candidate committee that in the aggregate exceeds $100 for any one primary or general election from any one person. The value of a cryptocurrency contribution is the fair market value of the cryptocurrency at the time the payment processor obtains possession of the contribution; (2) no person shall make or accept any cryptocurrency contribution for any political committee or party committee that in the aggregate exceeds $100 for any calendar year from any one person. The value of a cryptocurrency contribution is the fair market value of the cryptocurrency at the time the payment processor obtains possession of the contribution; (3) a candidate, candidate committee, political committee or party committee shall immediately convert a cryptocurrency contribution to United States currency and deposit the proceeds into the campaign account. A campaign shall not make expenditures in the form of cryptocurrency nor hold cryptocurrency as a campaign asset; (4) a candidate, candidate committee, political committee or party committee shall obtain the following information before accepting a cryptocurrency contribution: (A) The contributor's full name; (B) the contributor's physical address; (C) an affirmation from the contributor that they are the owner of the cryptocurrency; and (D) an affirmation from the contributor that they are not a foreign national; (5) a campaign finance contribution in the form of cryptocurrency may only be accepted if the contribution is made and received through a United States-based cryptocurrency payment processor that utilizes procedures that enable the processor to form a reasonable belief that it knows the true identity of each contributor and collects the name and address of each contributor at the time the contribution is made and transmits this information to the committee; and (6) when reporting a contribution of cryptocurrency on a campaign finance report, a treasurer shall report the amount and type of virtual currency received. Sec. 2. K.S.A. 25-4153 is hereby repealed. Sec. 3. This act shall take effect and be in force from and after its 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2167 4 publication in the statute book.1