UNOFFICIAL COPY 24 RS BR 1691 Page 1 of 12 XXXX 1/18/2024 3:41 PM Jacketed 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 slate 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, but does not include an entity established 14 solely by a candidate which is managed solely by a candidate and a campaign 15 treasurer and whose name is generic in nature, such as "Friends of (the 16 candidate)," and does not reflect that other persons have structured themselves 17 as a committee, designated officers of the committee, and assigned 18 responsibilities and duties to each officer with the purpose of managing a 19 campaign to support or oppose a candidate in an election; 20 (b) "Caucus campaign committee," which means members of one (1) of the 21 following caucus groups who receive contributions and make expenditures to 22 support or oppose one (1) or more specific candidates or slates of candidates 23 for nomination or election, or a committee: 24 1. House Democratic caucus campaign committee; 25 2. House Republican caucus campaign committee; 26 3. Senate Democratic caucus campaign committee; 27 UNOFFICIAL COPY 24 RS BR 1691 Page 2 of 12 XXXX 1/18/2024 3:41 PM Jacketed 4. Senate Republican caucus campaign committee; or 1 5. Subdivisions of the state executive committee of a minor political party, 2 which serve the same function as the above-named committees, as 3 determined by regulations promulgated by the registry; 4 (c) "Political issues committee," which means three (3) or more persons joining 5 together to advocate or oppose a constitutional amendment or public question 6 which appears on the ballot if that committee receives or expends money in 7 excess of one thousand dollars ($1,000); 8 (d) "Permanent committee," which means a group of individuals, including an 9 association, committee, or organization, other than a campaign committee, 10 political issues committee, inaugural committee, caucus campaign committee, 11 or party executive committee, which is established as, or intended to be, a 12 permanent organization having as a primary purpose expressly advocating the 13 election or defeat of one (1) or more clearly identified candidates, slates of 14 candidates, or political parties, which functions on a regular basis throughout 15 the year; 16 (e) An executive committee of a political party; and 17 (f) "Inaugural committee," which means one (1) or more persons who receive 18 contributions and make expenditures in support of inauguration activities for 19 any candidate or slate of candidates elected to any state, county, city, or 20 district office; 21 (4) "Contributing organization" means a group which merely contributes to candidates, 22 slates of candidates, campaign committees, caucus campaign committees, or 23 executive committees from time to time from funds derived solely from within the 24 group, and which does not solicit or receive funds from sources outside the group 25 itself. Any contributions made by the groups in excess of one hundred dollars 26 ($100) shall be reported to the registry; 27 UNOFFICIAL COPY 24 RS BR 1691 Page 3 of 12 XXXX 1/18/2024 3:41 PM Jacketed (5) "Testimonial affair" means an affair held in honor of a person who holds or who is 1 or was a candidate for nomination or election to a political office in this state 2 designed to raise funds for any purpose not charitable, religious, or educational; 3 (6) "Contribution" means any: 4 (a) Payment, distribution, loan, deposit, or gift of money or other thing of value, 5 to a candidate, his or her agent, a slate of candidates, its authorized agent, a 6 committee, or contributing organization. As used in this subsection, "loan" 7 shall include a guarantee, endorsement, or other form of security where the 8 risk of nonpayment rests with the surety, guarantor, or endorser, as well as 9 with a committee, contributing organization, candidate, slate of candidates, or 10 other primary obligor. No person shall become liable as surety, endorser, or 11 guarantor for any sum in any one (1) election which, when combined with all 12 other contributions the individual makes to a candidate, his or her agent, a 13 slate of candidates, its agent, a committee, or a contributing organization, 14 exceeds the contribution limits provided in KRS 121.150; 15 (b) Payment by any person other than the candidate, his or her authorized 16 treasurer, a slate of candidates, its authorized treasurer, a committee, or a 17 contributing organization, of compensation for the personal services of 18 another person which are rendered to a candidate, slate of candidates, 19 committee, or contributing organization, or for inauguration activities; 20 (c) Goods, advertising, or services with a value of more than one hundred dollars 21 ($100) in the aggregate in any one (1) election which are furnished to a 22 candidate, slate of candidates, committee, or contributing organization or for 23 inauguration activities without charge, or at a rate which is less than the rate 24 normally charged for the goods or services; or 25 (d) Payment by any person other than a candidate, his or her authorized treasurer, 26 a slate of candidates, its authorized treasurer, a committee, or contributing 27 UNOFFICIAL COPY 24 RS BR 1691 Page 4 of 12 XXXX 1/18/2024 3:41 PM Jacketed organization for any goods or services with a value of more than one hundred 1 dollars ($100) in the aggregate in any one (1) election which are utilized by a 2 candidate, slate of candidates, committee, or contributing organization, or for 3 inauguration activities; 4 (7) Notwithstanding the foregoing meanings of "contribution," the word shall not be 5 construed to include: 6 (a) Services provided without compensation by individuals volunteering a portion 7 or all of their time on behalf of a candidate, a slate of candidates, committee, 8 or contributing organization; 9 (b) A loan of money by any financial institution doing business in Kentucky 10 made in accordance with applicable banking laws and regulations and in the 11 ordinary course of business; or 12 (c) An independent expenditure by any individual or permanent committee; 13 (8) "Expenditure" means a payment, contribution, loan, or promise of payment of 14 money or anything of ascertainable monetary value for goods, materials, services, 15 or facilities in assistance of, or in opposition to, the nomination or election of a 16 candidate, or the passage or defeat of a ballot question. For reporting purposes, 17 an expenditure is considered to be made at the time the payment, contribution, 18 loan, or promise of payment of money is obligated. 19 (9) "Candidate" means any person who has received contributions or made 20 expenditures, has appointed a campaign treasurer, or has given his or her consent 21 for any other person to receive contributions or make expenditures with a view to 22 bringing about his or her nomination or election to public office, except federal 23 office; 24 (10)[(9)] "Slate of candidates" means: 25 (a) Between the time a certificate or petition of nomination has been filed for a 26 candidate for the office of Governor under KRS 118.365 and the time the 27 UNOFFICIAL COPY 24 RS BR 1691 Page 5 of 12 XXXX 1/18/2024 3:41 PM Jacketed candidate designates a running mate for the office of Lieutenant Governor 1 under KRS 118.126, a slate of candidates consists of the candidate for the 2 office of Governor; and 3 (b) After that candidate has designated a running mate under KRS 118.126, that 4 same slate of candidates consists of that same candidate for the office of 5 Governor and the candidate's running mate for the office of Lieutenant 6 Governor. Unless the context requires otherwise, any provision of law that 7 applies to a candidate shall also apply to a slate of candidates; 8 (11)[(10)] "Knowingly" means, with respect to conduct or to a circumstance described 9 by a statute defining an offense, that a person is aware or should have been aware 10 that his or her conduct is of that nature or that the circumstance exists; 11 (12)[(11)] "Fundraiser" means an individual who directly solicits and secures 12 contributions on behalf of a candidate or slate of candidates for a statewide-elected 13 state office or an office in a jurisdiction with a population in excess of two hundred 14 thousand (200,000) residents; 15 (13)[(12)] "Independent expenditure" means the expenditure of money or other things of 16 value for a communication which expressly advocates the election or defeat of a 17 clearly identified candidate or slate of candidates, and which is made without any 18 coordination, consultation, or cooperation with any candidate, slate of candidates, 19 campaign committee, or any authorized person acting on behalf of any of them, and 20 which is not made in concert with, or at the request or suggestion of any candidate, 21 slate of candidates, campaign committee, or any authorized person acting on behalf 22 of any of them; 23 (14)[(13)] "Electronic reporting" means the use of technology, having electrical, digital, 24 magnetic, wireless, optical, electromagnetic, or similar capabilities, by which an 25 individual or other entity submits, compiles, or transmits campaign finance reports 26 to the registry, or by which the registry receives, stores, analyzes, or discloses the 27 UNOFFICIAL COPY 24 RS BR 1691 Page 6 of 12 XXXX 1/18/2024 3:41 PM Jacketed reports; 1 (15)[(14)] "Security procedure" means a procedure employed for the purpose of 2 verifying that an electronic signature, record, or performance is that of a specific 3 person or for detecting changes or errors in the information in an electronic record. 4 The term includes a procedure that requires the use of algorithms or other codes, 5 identifying words or numbers, encryption, or callback or other acknowledgment 6 procedures; 7 (16)[(15)] "Electronic signature" means an electronic sound, symbol, or process attached 8 to or logically associated with a record and executed or adopted by a person with 9 the intent to sign the record; 10 (17)[(16)] "Filer" means any candidate, a slate of candidates, committee, or other 11 individual or entity required to submit financial disclosure reports to the registry; 12 (18)[(17)] "Filer-side software" means software provided to or used by the filer that 13 enables transmittal of financial reports to the registry; and 14 (19)[(18)] "Form" means an online web page or an electronic document designed to 15 capture, validate, and submit data for processing to the registry, unless the context 16 otherwise prescribes. 17 Section 2. KRS 121.150 is amended to read as follows: 18 (1) No contribution shall be made or received, directly or indirectly, other than an 19 independent expenditure, to support inauguration activities or to support or defeat a 20 candidate, slate of candidates, constitutional amendment, or public question which 21 will appear on the ballot in an election, except through the duly appointed campaign 22 manager, or campaign treasurer of the candidate, slate of candidates, or registered 23 committee. Any person making an independent expenditure, shall report these 24 expenditures when the expenditures by that person exceed five hundred dollars 25 ($500) in the aggregate in any one (1) election, on a form provided or using a 26 format approved by the registry and shall sign a statement on the form, under 27 UNOFFICIAL COPY 24 RS BR 1691 Page 7 of 12 XXXX 1/18/2024 3:41 PM Jacketed penalty of perjury, that the expenditure was an actual independent expenditure and 1 that there was no prior communication with the campaign on whose behalf it was 2 made. 3 (2) Except as provided in KRS 121.180(10), the solicitation from and contributions by 4 campaign committees, caucus campaign committees, political issues committees, 5 permanent committees, and party executive committees to any religious, charitable, 6 civic, eleemosynary, or other causes or organizations established primarily for the 7 public good is expressly prohibited; except that it shall not be construed as a 8 violation of this section for a candidate or a slate of candidates to contribute to 9 religious, civic, or charitable 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 cash 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 UNOFFICIAL COPY 24 RS BR 1691 Page 8 of 12 XXXX 1/18/2024 3:41 PM Jacketed identifies both the payor and payee shall be treated as a contribution 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, committee, 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 who 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, shall 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 Price 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 behalf, 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 UNOFFICIAL COPY 24 RS BR 1691 Page 9 of 12 XXXX 1/18/2024 3:41 PM Jacketed considered as one (1) committee for purposes of applying the contribution 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. 4 (9) No person shall contribute funds to a permanent committee, political issues 5 committee, or contributing organization for the purpose of circumventing the 6 contribution limits of subsection (6) of this section. 7 (10) No person shall contribute more than two thousand dollars ($2,000) as indexed for 8 inflation every odd-numbered year using the preceding year's percent increase in 9 the non-seasonally adjusted annual average Consumer Price Index for all Urban 10 Consumers (CPI-U), U.S. City Average, All Items, for that year as published by the 11 United States Bureau of Labor Statistics and rounded to the nearest hundred dollars, 12 to a permanent committee or contributing organization in any one (1) year. 13 (11) (a) No person shall contribute more than five thousand dollars ($5,000) to the 14 state executive committee of a political party in any one (1) year. The 15 contribution limit in this paragraph shall not apply to a contribution 16 designated exclusively for a state executive committee's building fund account 17 established under KRS 121.172. 18 (b) No person shall contribute more than five thousand dollars ($5,000) to a 19 subdivision or affiliate of a state political party in any one (1) year. 20 (c) No person shall contribute more than five thousand dollars ($5,000) to a 21 caucus campaign committee in any one (1) year. 22 (12) No person shall make a payment, distribution, loan, advance, deposit, or gift of 23 money to another person to contribute to a candidate, a slate of candidates, 24 committee, contributing organization, or anyone on their behalf. No candidate, slate 25 of candidates, committee, contributing organization, nor anyone on their behalf 26 shall accept a contribution made by one (1) person who has received a payment, 27 UNOFFICIAL COPY 24 RS BR 1691 Page 10 of 12 XXXX 1/18/2024 3:41 PM Jacketed distribution, loan, advance, deposit, or gift of money from another person to 1 contribute to a candidate, a slate of candidates, committee, contributing 2 organization, or anyone on their behalf. 3 (13) No candidate, slate of candidates, committee, contributing organization, or 4 anyone on their behalf shall make an expenditure to an intermediary, including 5 subcontractors, for the purpose of making a payment to another person. 6 Expenditures shall be made directly to the provider of goods or personal services. 7 (14) Subject to the provisions of subsection (18)[(17)] of this section, no candidate or 8 slate of candidates for nomination to any state, county, city, or district office, nor 9 their campaign committees, nor anyone on their behalf, shall solicit or accept 10 contributions for primary election expenses after the date of the primary. No person 11 other than the candidate or slate of candidates shall contribute for primary election 12 expenses after the date of the primary. 13 (15)[(14)] Subject to the provisions of subsection (18)[(17)] of this section, no candidate 14 or slate of candidates for any state, county, city, or district office at a regular 15 election, nor their campaign committees, nor anyone on their behalf, shall solicit or 16 accept contributions for regular election expenses after the date of the regular 17 election. No person other than the candidate or slate of candidates shall contribute 18 for regular election expenses after the date of the regular election. 19 (16)[(15)] Subject to the provisions of subsection (18)[(17)] of this section, no candidate 20 or slate of candidates for nomination or election to any state, county, city, or district 21 office, nor their campaign committees, nor anyone on their behalf, shall solicit or 22 accept contributions for special election expenses after the date of the special 23 election. No person other than the candidate or slate of candidates shall contribute 24 for special election expenses after the date of the special election. 25 (17)[(16)] The provisions of subsections (14)[(13)] and (15)[(14)] of this section shall 26 apply only to those candidates in a primary or regular election which shall be 27 UNOFFICIAL COPY 24 RS BR 1691 Page 11 of 12 XXXX 1/18/2024 3:41 PM Jacketed conducted subsequent to January 1, 1989. The provisions of subsection (16)[(15)] 1 of this section shall apply only to those candidates or slates of candidates in a 2 special election which shall be conducted subsequent to January 1, 1993. 3 (18)[(17)] A candidate, slate of candidates, or a campaign committee may solicit and 4 accept contributions after the date of a primary election, regular election, or special 5 election to defray necessary expenses that arise after the date of the election 6 associated with election contests, recounts, and recanvasses of a specific election, 7 complaints regarding alleged campaign finance violations that are filed with the 8 registry pertaining to a specific election, or other legal actions pertaining to a 9 specific election to which a candidate, slate of candidates, or campaign committee 10 is a party, and for repayment of debts and obligations owed by the campaign. 11 Reports of contributions received and expenditures made after the date of the 12 specific election shall be made in accordance with KRS 121.180. 13 (19)[(18)] No candidate, slate of candidates, committee, except a political issues 14 committee, or contributing organization, nor anyone on their behalf, shall 15 knowingly accept a contribution from a corporation, directly or indirectly, except to 16 the extent that the contribution is designated to a state executive committee's 17 building fund account established under KRS 121.172. 18 (20)[(19)] Nothing in this section shall be construed to restrict the ability of a 19 corporation to administer its permanent committee insofar as its actions can be 20 deemed not to influence an election as prohibited by KRS 121.025. 21 (21)[(20)] No candidate, slate of candidates, or committee, nor anyone on their behalf, 22 shall solicit a contribution of money or services from a state employee, whether or 23 not the employee is covered by the classified service provisions of KRS Chapter 24 18A. However, it shall not be a violation of this subsection for a state employee to 25 receive a solicitation directed to him or her as a registered voter in an identified 26 precinct as part of an overall plan to contact voters not identified as state 27 UNOFFICIAL COPY 24 RS BR 1691 Page 12 of 12 XXXX 1/18/2024 3:41 PM Jacketed employees. 1 (22)[(21)] No candidate or slate of candidates for any office in this state shall accept a 2 contribution, including an in-kind contribution, which is made from funds in a 3 federal campaign account. No person shall make a contribution, including an in-4 kind contribution, from funds in a federal campaign account to any candidate or 5 slate of candidates for any office in this state. 6 (23)[(22)] It shall be permissible for a married couple to make a contribution with one 7 (1) check that reflects the combined individual contribution limits of each 8 individual spouse per election, as set forth in subsection (6) of this section, for all 9 elections in a calendar year and the following shall be required to be written on the 10 check: 11 (a) The signatures of both spouses on the signature line of the check; and 12 (b) The designation of each contribution amount and the election or elections to 13 which they apply shall be memorialized on the memo line of the check. 14