UNOFFICIAL COPY 24 RS BR 1692 Page 1 of 9 XXXX 1/19/2024 10:49 AM 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 1692 Page 2 of 9 XXXX 1/19/2024 10:49 AM 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 1692 Page 3 of 9 XXXX 1/19/2024 10:49 AM 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 1692 Page 4 of 9 XXXX 1/19/2024 10:49 AM 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) "Candidate" means any person who has received contributions or made 14 expenditures, has appointed a campaign treasurer, or has given his or her consent 15 for any other person to receive contributions or make expenditures with a view to 16 bringing about his or her nomination or election to public office, except federal 17 office; 18 (9) "Slate of candidates" means: 19 (a) Between the time a certificate or petition of nomination has been filed for a 20 candidate for the office of Governor under KRS 118.365 and the time the 21 candidate designates a running mate for the office of Lieutenant Governor 22 under KRS 118.126, a slate of candidates consists of the candidate for the 23 office of Governor; and 24 (b) After that candidate has designated a running mate under KRS 118.126, that 25 same slate of candidates consists of that same candidate for the office of 26 Governor and the candidate's running mate for the office of Lieutenant 27 UNOFFICIAL COPY 24 RS BR 1692 Page 5 of 9 XXXX 1/19/2024 10:49 AM Jacketed Governor. Unless the context requires otherwise, any provision of law that 1 applies to a candidate shall also apply to a slate of candidates; 2 (10) "Knowingly" means, with respect to conduct or to a circumstance described by a 3 statute defining an offense, that a person is aware or should have been aware that 4 his or her conduct is of that nature or that the circumstance exists; 5 (11) "Fundraiser" means an individual who directly solicits and secures contributions on 6 behalf of a candidate or slate of candidates for a statewide-elected state office or an 7 office in a jurisdiction with a population in excess of two hundred thousand 8 (200,000) residents; 9 (12) "Independent expenditure" means the expenditure of money or other things of value 10 for a communication which expressly advocates the election or defeat of a clearly 11 identified candidate or slate of candidates, and which is made without any 12 coordination, consultation, or cooperation with any candidate, slate of candidates, 13 campaign committee, or any authorized person acting on behalf of any of them, and 14 which is not made in concert with, or at the request or suggestion of any candidate, 15 slate of candidates, campaign committee, or any authorized person acting on behalf 16 of any of them; 17 (13) "Electronic reporting" means the use of technology, having electrical, digital, 18 magnetic, wireless, optical, electromagnetic, or similar capabilities, by which an 19 individual or other entity submits, compiles, or transmits campaign finance reports 20 to the registry, or by which the registry receives, stores, analyzes, or discloses the 21 reports; 22 (14) "Security procedure" means a procedure employed for the purpose of verifying that 23 an electronic signature, record, or performance is that of a specific person or for 24 detecting changes or errors in the information in an electronic record. The term 25 includes a procedure that requires the use of algorithms or other codes, identifying 26 words or numbers, encryption, or callback or other acknowledgment procedures; 27 UNOFFICIAL COPY 24 RS BR 1692 Page 6 of 9 XXXX 1/19/2024 10:49 AM Jacketed (15) "Electronic signature" means an electronic sound, symbol, or process attached to or 1 logically associated with a record and executed or adopted by a person with the 2 intent to sign the record; 3 (16) "Filer" means any candidate, a slate of candidates, committee, or other individual or 4 entity required to submit financial disclosure reports to the registry; 5 (17) "Filer-side software" means software provided to or used by the filer that enables 6 transmittal of financial reports to the registry;[ and] 7 (18) "Form" means an online web page or an electronic document designed to capture, 8 validate, and submit data for processing to the registry, unless the context otherwise 9 prescribes; and 10 (19) "Campaign consultant" means any person or entity that provides one (1) or more 11 of the following services for pay: social media and legacy media strategy, creating 12 and buying ads and other branded material, research and polling, analyzing and 13 collecting data, voter targeting and field planning, fundraising, writing press 14 releases, organizing campaign rallies and events, or writing speeches. A 15 registered agent shall be considered a campaign consultant if the registered agent 16 provides any of the above services with or without pay. A person or entity 17 convicted of fraud, bribery, or electioneering shall be prohibited from serving as a 18 campaign consultant. 19 SECTION 2. A NEW SECTION OF KRS CHAPTER 121 IS CREATED TO 20 READ AS FOLLOWS: 21 (1) Each campaign consultant and employer, within seven (7) days following 22 engagement of a campaign consultant, shall file with the registry an initial 23 registration statement listing the following: 24 (a) The name, business address, telephone number, and occupation of the 25 campaign consultant; 26 (b) The name, brief description of the nature of the business, nature and 27 UNOFFICIAL COPY 24 RS BR 1692 Page 7 of 9 XXXX 1/19/2024 10:49 AM Jacketed identity of the organized association, coalition, or public interest entity, and 1 business address and telephone number of the employer. For the purposes 2 of this section, if a trade association or other charitable or fraternal 3 organization that is exempt from federal income taxation under Section 4 501(c) of the Internal Revenue Code is the employer, the statement shall not 5 list the names and addresses of each member of the association or 6 organization, if the association or organization itself is listed; 7 (c) The date on which the campaign consultant was engaged; and 8 (d) Certification by the employer and campaign consultant that the information 9 contained in the registration statement is complete and accurate. 10 (2) The registration shall be valid through the next thirty-first day of December of an 11 odd-numbered year, unless previously terminated. 12 (3) (a) In addition to the initial registration statement required by subsection (1) of 13 this section, each campaign consultant and employer shall file an updated 14 registration statement with the registry to be received by the registry, not 15 later than 4 p.m. on the fifteenth day of January, February, March, April, 16 May, and September of each year, for the period since the end of the period 17 covered by the previous report until the last day of the month preceding the 18 filing date. The registry may grant a reasonable extension of time for filing 19 the updated registration statement for good cause shown. 20 (b) The updated registration statement shall confirm the continuing existence 21 of each engagement described in an initial registration statement. 22 (4) If a campaign consultant is engaged by more than one (1) employer, the 23 consultant shall file a separate initial and updated registration statement for each 24 engagement. If an employer engages more than one (1) campaign consultant, the 25 employer shall file only one (1) updated registration statement under subsection 26 (3) of this section, which shall contain the information required by subsection (3) 27 UNOFFICIAL COPY 24 RS BR 1692 Page 8 of 9 XXXX 1/19/2024 10:49 AM Jacketed of this section regarding all campaign consultants engaged by the employer. 1 (5) (a) A change in any information required by subsection (1)(a) or (b) of this 2 section shall be reflected in the next updated registration statement filed 3 under subsection (3) of this section. 4 (b) Within thirty (30) days after the termination of an engagement, the 5 campaign consultant who was employed under the engagement shall file 6 written notice of the termination with the registry. 7 (c) If the termination of a campaign consultant leaves an employer without the 8 engagement of any campaign consultants, within thirty (30) days after the 9 termination, the employer shall file written notice with the registry of its 10 intent to terminate its current registration. 11 (6) Upon registration pursuant to subsection (1) of this section, the campaign 12 consultant shall be issued a card by the registry, showing that the campaign 13 consultant is registered. The registration card shall be valid from the date of its 14 issuance through the next thirty-first day of December of an odd-numbered year. 15 (7) Any campaign consultant or employer who fails to file the initial registration 16 statement or updated registration statement, or who fails to remedy a deficiency 17 in any filing in a timely manner, may be fined by the registry an amount not to 18 exceed one hundred dollars ($100) per day, up to a maximum total fine of one 19 thousand dollars ($1,000) without the necessity of a complaint being filed, but 20 only after notice has been given to the alleged violator of the intent of the registry 21 to impose a fine, including the amount of the fine, and an opportunity has been 22 afforded the alleged violator to appear before the registry or otherwise offer 23 evidence as he may choose in mitigation of the imposition of the fine. 24 (8) Any campaign consultant or employer who intentionally fails to register shall be 25 guilty of a Class D felony. 26 SECTION 3. A NEW SECTION OF KRS CHAPTER 121 IS CREATED TO 27 UNOFFICIAL COPY 24 RS BR 1692 Page 9 of 9 XXXX 1/19/2024 10:49 AM Jacketed READ AS FOLLOWS: 1 (1) Each employer of one (1) or more campaign consultants shall pay a registration 2 fee of two hundred fifty dollars ($250) to the registry. 3 (2) All fees collected by the registry under the provisions of this section shall be 4 deposited in the State Treasury in a trust and agency fund account to the credit of 5 the registry. These agency funds shall be used to supplement general fund 6 appropriations to the registry. 7