UNOFFICIAL COPY 25 RS BR 1544 Page 1 of 4 XXXX 2/6/2025 11:08 AM Jacketed AN ACT relating to campaign finance. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 ď˘Section 1. KRS 121.175 is amended to read as follows: 3 (1) 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. "Allowable campaign expenditures" means expenditures 6 including reimbursement for actual expenses, made directly and primarily in 7 support of or opposition to a candidate, constitutional amendment, or public 8 question which will appear on the ballot and includes, but is not limited to, 9 expenditures for staff salaries, gifts and meals for volunteer campaign workers, 10 food and beverages provided at a campaign rally, advertising, office space, 11 necessary travel if reported, campaign paraphernalia, purchases of advertisements 12 in athletic and scholastic publications, communications with constituents or 13 prospective voters, polling and consulting, printing, graphic arts, or advertising 14 services, postage, office supplies, stationery, newsletters, and equipment which is 15 used primarily for the administration of the campaign, or for fees incurred from 16 legal services while defending a matter before the Kentucky Legislative Ethics 17 Commission in which the final adjudication is rendered in favor of the candidate. 18 "Allowable campaign expenditures" does not include necessary travel unless 19 reported, expenditures of funds in a campaign account for any purpose made 20 unlawful by other provisions of the Kentucky Revised Statutes or which would 21 bestow a private pecuniary benefit, except for payment of the reasonable value of 22 goods and services provided upon a candidate, member of the candidate's family, 23 committee, or contributing organization, or any of their employees, paid or unpaid, 24 including: tickets to an event which is unrelated to a political campaign or 25 candidacy; items of personal property for distribution to prospective voters except 26 items bearing the name, likeness, or logo of a candidate or a campaign-related 27 UNOFFICIAL COPY 25 RS BR 1544 Page 2 of 4 XXXX 2/6/2025 11:08 AM Jacketed communication; expenditures to promote or oppose a candidacy for a leadership 1 position in a governmental, professional, or political organization, or other entity; 2 and equipment or appliances the primary use of which is for purposes outside of the 3 campaign. The provisions of KRS 121.190 notwithstanding, a candidate shall not be 4 required to include a disclaimer on campaign stationery purchased with funds from 5 his campaign account. 6 (2) A member of the General Assembly may utilize funds in his or her campaign 7 account to: 8 (a) Contribute up to five thousand dollars ($5,000) per year to a political party or 9 caucus campaign committee; 10 (b) Make allowable campaign expenditures in both election years and nonelection 11 years; 12 (c) Upon approval by the President of the Senate or the Speaker of the House of 13 Representatives, depending on the member's chamber: 14 1. Attend a conference, meeting, reception, or similar event; or 15 2. Attend an educational course or seminar that maintains or improves 16 skills employed by the member in carrying out the duties of his or her 17 elective office; and 18 (d) Pay for fees incurred from legal services while defending a matter arising 19 from his or her campaign or election or the performance of his or her official 20 duties. 21 (3) (a) The use of campaign funds to pay for the reasonable costs of security 22 measures for a state candidate, officeholder, member of his or her family, 23 and employees of the candidate's campaign or the officeholder's office, is 24 an allowable campaign expenditure, so long as the security measures 25 address ongoing dangers or threats that would not exist irrespective of the 26 individual's status or duties as a candidate or officeholder. Disbursements 27 UNOFFICIAL COPY 25 RS BR 1544 Page 3 of 4 XXXX 2/6/2025 11:08 AM Jacketed for security measures shall be for the usual and normal charge for such 1 goods or services. 2 (b) As used in this subsection: 3 1. "Security measure " includes but is not limited to: 4 a. Non-structural security devices, such as security hardware, 5 locks, alarm systems, motion detectors, and security camera 6 systems; 7 b. Structural security devices, such as wiring, lighting, gates, doors, 8 and fencing, so long as such devices are intended solely to 9 provide security and not to improve the property or increase its 10 value; 11 c. Security personnel and services that are bona fide, legitimate, 12 and professional; and 13 d. Cybersecurity software, devices, and services; and 14 2. "Usual and normal charge" means: 15 a. In the case of goods, the price of those goods in the market in 16 which they are ordinarily purchased; and 17 b. In the case of services, the hourly or piecework charge for the 18 services at a commercially reasonable rate prevailing at the time 19 the services were rendered. 20 (4)[(3)] By December 31, 1993, the registry shall promulgate administrative 21 regulations to implement and enforce the provisions of subsection (1) of this 22 section. 23 (5)[(4)] In lieu of the penalties provided in KRS 121.140 and 121.990 for a violation 24 of this section, the registry may, after hearing: 25 (a) For a violation which was not committed knowingly, order the violator to 26 repay the amount of campaign funds which were expended for other than 27 UNOFFICIAL COPY 25 RS BR 1544 Page 4 of 4 XXXX 2/6/2025 11:08 AM Jacketed allowable campaign expenditures, and if not repaid within thirty (30) days, 1 may impose a fine of up to one hundred dollars ($100) for each day the 2 amount is not repaid, up to a maximum fine of one thousand dollars ($1,000); 3 and 4 (b) For a violation which was committed knowingly, in addition to referring the 5 matter for criminal prosecution, order the violator to repay the amount of 6 campaign funds which were expended for other than allowable campaign 7 expenditures, and if not repaid within thirty (30) days, may impose a fine of 8 up to one hundred dollars ($100) for each day the amount is not repaid, up to 9 a maximum fine of one thousand dollars ($1,000). 10