UNOFFICIAL COPY 25 RS BR 1862
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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 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, 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, and 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 contributions 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 UNOFFICIAL COPY 25 RS BR 1862
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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 constitutional amendment or public question 14
which appears on the ballot if that committee receives or expends money in 15
excess of one thousand dollars ($1,000); 16
(e) "Permanent committee," which means a group of individuals, including an 17
association, committee, or organization, other than a campaign committee, 18
independent expenditure-only committee, federally registered political 19
committee, political issues committee, inaugural committee, caucus campaign 20
committee, or party executive committee, which is established as, or intended 21
to be, a permanent organization having as a primary purpose expressly 22
advocating the election or defeat of one (1) or more clearly identified 23
candidates, slates of candidates, or political parties, which functions on a 24
regular basis throughout the year; 25
(f) An executive committee of a political party; and 26
(g) "Inaugural committee," which means one (1) or more persons who receive 27 UNOFFICIAL COPY 25 RS BR 1862
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contributions and make expenditures in support of inauguration activities for 1
any candidate or slate of candidates elected to any state, county, city, or 2
district office; 3
(4) "Contributing organization" means a group which merely contributes to candidates, 4
slates of candidates, campaign committees, caucus campaign committees, or 5
executive committees from time to time from funds derived solely from within the 6
group, and which does not solicit or receive funds from sources outside the group 7
itself. Any contributions made by the groups in excess of one hundred dollars 8
($100) shall be reported to the registry; 9
(5) "Testimonial affair" means an affair held in honor of a person who holds or who is 10
or was a candidate for nomination or election to a political office in this state 11
designed to raise funds for any purpose not charitable, religious, or educational; 12
(6) "Contribution" means any: 13
(a) Payment, distribution, loan, deposit, or gift of money or other thing of value, 14
to a candidate, his or her agent, a slate of candidates, its authorized agent, a 15
committee, or contributing organization. As used in this subsection, "loan" 16
shall include a guarantee, endorsement, or other form of security where the 17
risk of nonpayment rests with the surety, guarantor, or endorser, as well as 18
with a committee, contributing organization, candidate, slate of candidates, or 19
other primary obligor. No person shall become liable as surety, endorser, or 20
guarantor for any sum in any one (1) election which, when combined with all 21
other contributions the individual makes to a candidate, his or her agent, a 22
slate of candidates, its agent, a committee, or a contributing organization, 23
exceeds the contribution limits provided in KRS 121.150; 24
(b) Payment by any person other than the candidate, his or her authorized 25
treasurer, a slate of candidates, its authorized treasurer, a committee, or a 26
contributing organization, of compensation for the personal services of 27 UNOFFICIAL COPY 25 RS BR 1862
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another person which are rendered to a candidate, slate of candidates, 1
committee, or contributing organization, or for inauguration activities; 2
(c) Goods, advertising, or services with a value of more than one hundred dollars 3
($100) in the aggregate in any one (1) election which are furnished to a 4
candidate, slate of candidates, committee, or contributing organization or for 5
inauguration activities without charge, or at a rate which is less than the rate 6
normally charged for the goods or services; or 7
(d) Payment by any person other than a candidate, his or her authorized treasurer, 8
a slate of candidates, its authorized treasurer, a committee, or contributing 9
organization for any goods or services with a value of more than one hundred 10
dollars ($100) in the aggregate in any one (1) election which are utilized by a 11
candidate, slate of candidates, committee, or contributing organization, or for 12
inauguration activities; 13
(7) Notwithstanding the foregoing meanings of "contribution," the word shall not be 14
construed to include: 15
(a) Services provided without compensation by individuals volunteering a portion 16
or all of their time on behalf of a candidate, a slate of candidates, committee, 17
or contributing organization; 18
(b) A loan of money by any financial institution doing business in Kentucky 19
made in accordance with applicable banking laws and regulations and in the 20
ordinary course of business; or 21
(c) An independent expenditure by any individual or permanent committee; 22
(8) "Candidate" means any person who has received contributions or made 23
expenditures, has appointed a campaign treasurer, or has given his or her consent 24
for any other person to receive contributions or make expenditures with a view to 25
bringing about his or her nomination or election to public office, except federal 26
office; 27 UNOFFICIAL COPY 25 RS BR 1862
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(9) "Slate of candidates" means: 1
(a) Between the time a certificate or petition of nomination has been filed for a 2
candidate for the office of Governor under KRS 118.365 and the time the 3
candidate designates a running mate for the office of Lieutenant Governor 4
under KRS 118.126, a slate of candidates consists of the candidate for the 5
office of Governor; and 6
(b) After that candidate has designated a running mate under KRS 118.126, that 7
same slate of candidates consists of that same candidate for the office of 8
Governor and the candidate's running mate for the office of Lieutenant 9
Governor. Unless the context requires otherwise, any provision of law that 10
applies to a candidate shall also apply to a slate of candidates; 11
(10) "Knowingly" means, with respect to conduct or to a circumstance described by a 12
statute defining an offense, that a person is aware or should have been aware that 13
his or her conduct is of that nature or that the circumstance exists; 14
(11) "Fundraiser" means an individual who directly solicits and secures contributions on 15
behalf of a candidate or slate of candidates for a statewide-elected state office or an 16
office in a jurisdiction with a population in excess of two hundred thousand 17
(200,000) residents; 18
(12) "Independent expenditure" means the expenditure of money or other things of value 19
for a communication which expressly advocates the election or defeat of a clearly 20
identified candidate or slate of candidates, and which is made without any 21
coordination, consultation, or cooperation with any candidate, slate of candidates, 22
campaign committee, or any authorized person acting on behalf of any of them, and 23
which is not made in concert with, or at the request or suggestion of any candidate, 24
slate of candidates, campaign committee, or any authorized person acting on behalf 25
of any of them; 26
(13) "Electronic reporting" means the use of technology, having electrical, digital, 27 UNOFFICIAL COPY 25 RS BR 1862
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magnetic, wireless, optical, electromagnetic, or similar capabilities, by which an 1
individual or other entity submits, compiles, or transmits campaign finance reports 2
to the registry, or by which the registry receives, stores, analyzes, or discloses the 3
reports; 4
(14) "Security procedure" means a procedure employed for the purpose of verifying that 5
an electronic signature, record, or performance is that of a specific person or for 6
detecting changes or errors in the information in an electronic record. The term 7
includes a procedure that requires the use of algorithms or other codes, identifying 8
words or numbers, encryption, or callback or other acknowledgment procedures; 9
(15) "Electronic signature" means an electronic sound, symbol, or process attached to or 10
logically associated with a record and executed or adopted by a person with the 11
intent to sign the record; 12
(16) "Filer" means any candidate, a slate of candidates, committee, or other individual or 13
entity required to submit financial disclosure reports to the registry; 14
(17) "Filer-side software" means software provided to or used by the filer that enables 15
transmittal of financial reports to the registry; 16
(18) "Form" means an online web page or an electronic document designed to capture, 17
validate, and submit data for processing to the registry, unless the context otherwise 18
prescribes;[ and] 19
(19) "Reasonable cause" means an event, happening, or circumstance entirely beyond 20
the knowledge or control of the candidate, slate of candidates, or committee, which 21
has exercised due care and prudence in maintaining the records of the campaign or 22
committee pursuant to statute or administrative regulation; 23
(20) "Directly" means acting alone; 24
(21) "Indirectly" means acting jointly with, through, or on behalf of any other 25
political issues committee, permanent committee, organization, person, or other 26
entity; 27 UNOFFICIAL COPY 25 RS BR 1862
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(22) "Foreign national" means: 1
(a) An individual who is not a citizen or lawful permanent resident of the 2
United States; 3
(b) A government, political subdivision, or municipality of a foreign country; 4
(c) A foreign political party; 5
(d) Any entity, including but not limited to a partnership, association, 6
corporation, organization, or other combination of persons, that is 7
organized under the laws of or has its principal place of business in a 8
foreign country; or 9
(e) Any entity in the United States, including but not limited to a partnership, 10
association, corporation, or organization that is wholly or majority owned 11
by any foreign national, unless: 12
1. Any contribution or expenditure the entity makes derives entirely from 13
funds generated by the entity's United States operations; and 14
2. All decisions concerning the contribution or expenditure, except for 15
setting overall budget amounts, are made by individuals who are 16
United States citizens or permanent residents; 17
(23) "Ballot measure" means a question, other than the nomination or election of a 18
candidate for public office, which has been: 19
(a) Approved by a political subdivision or the General Assembly and is required 20
by law to be placed before the voters of the territory affected; or 21
(b) Initiated or referred by citizen petition as authorized by KRS 242.020 and 22
placed before the voters of the territory affected; 23
(24) "Person" means an individual, partnership, association, corporation, 24
organization, political committee, or any other combination or group of 25
individuals; 26
(25) "Preliminary activity" includes but is not limited to: 27 UNOFFICIAL COPY 25 RS BR 1862
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(a) Participating in focus groups; 1
(b) Making telephone calls; 2
(c) Traveling; 3
(d) Conducting polls; and 4
(e) Drafting ballot measure language; 5
(26) "Prohibited source" means any contribution from or expenditure by a foreign 6
national; and 7
(27) "Tax-exempt organization" means an organization described in 26 U.S.C. sec. 8
501(c) and exempt from federal taxation under 26 U.S.C. sec. 501(a). This 9
subsection shall not be construed to treat a political organization under 26 U.S.C. 10
sec. 527 as a tax-exempt organization for purposes of this chapter. 11
SECTION 2. A NEW SECTION OF KRS CHAPTER 121 IS CREATED TO 12
READ AS FOLLOWS: 13
(1) Upon registering a political issues committee, the treasurer shall file an 14
accompanying certification that no preliminary activity was directly or indirectly 15
funded by a prohibited source. 16
(2) After a political issues committee has been registered, the committee shall not 17
knowingly or willfully receive, solicit, or accept contributions or expenditures that 18
are directly or indirectly funded by a prohibited source. 19
(3) A political issues committee shall affirm in its report that it has not knowingly or 20
willfully received, solicited, or accepted contributions or expenditures from a 21
prohibited source. 22
(4) Any person who makes an independent expenditure in support or opposition of a 23
ballot measure shall keep records of any contribution or independent expenditure 24
and retain those records for six (6) years following the date the contribution or 25
expenditure was made. 26
(5) A political issues committee that receives an independent expenditure or 27 UNOFFICIAL COPY 25 RS BR 1862
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contribution shall keep records of any contribution or independent expenditure 1
and retain those records for six (6) years following the date the contribution or 2
expenditure was received. 3
SECTION 3. A NEW SECTION OF KRS CHAPTER 121 IS CREATED TO 4
READ AS FOLLOWS: 5
(1) Upon a political issues committee's receipt of a contribution, the treasurer shall 6
obtain from the donor an affirmation that the donor is not a foreign national and 7
has not knowingly or willfully accepted funds aggregating in excess of one 8
hundred thousand dollars ($100,000) from a prohibited source during the four 9
(4) years immediately preceding the date the contribution was made. 10
(2) The treasurer of a political issues committee shall affirm in its report that the 11
donor associated with each contribution is not a foreign national and has not 12
knowingly or willfully received, solicited, or accepted, whether directly or 13
indirectly, contributions or expenditures aggregating in excess of one hundred 14
thousand dollars ($100,000) from a prohibited source during the four (4) years 15
immediately preceding the date the contribution was made. 16
(3) Within forty-eight (48) hours of making an independent expenditure supporting 17
or opposing a ballot measure, the entity making the expenditure shall: 18
(a) Certify to the registry that it has not knowingly or willfully accepted funds 19
aggregating in excess of one hundred thousand dollars ($100,000) from a 20
prohibited source for four (4) years immediately preceding the date the 21
expenditure was made, and that it will not do so through the remainder of 22
the calendar year in which the ballot measure will appear on the ballot; and 23
(b) Affirm in its report that it has not knowingly or willfully accepted funds 24
aggregating in excess of one hundred thousand dollars ($100,000) from a 25
prohibited source during the four (4) years immediately preceding the date 26
the expenditure was made. 27 UNOFFICIAL COPY 25 RS BR 1862
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(4) Any determination that an entity required to file one (1) or more certifications 1
under subsection (1) or (3)(a) of this section has accepted funds aggregating in 2
excess of one hundred thousand dollars ($100,000) from one (1) or more 3
prohibited sources during the four (4) years immediately preceding the date the 4
contribution or independent expenditure at issue was made shall create a 5
presumption that the entity has violated this section. 6
SECTION 4. A NEW SECTION OF KRS CHAPTER 121 IS CREATED TO 7
READ AS FOLLOWS: 8
(1) A foreign national shall not, directly or indirectly: 9
(a) Make a donation, contribution, or expenditure in support or opposition of a 10
ballot measure; 11
(b) Solicit another person to make a donation, contribution, or expenditure to 12
influence a ballot measure; or 13
(c) Direct, dictate, control, or participate in another person's decision to 14
influence a ballot measure. 15
(2) Nothing in this section shall be deemed to create or eliminate any donor 16
disclosure rights or duties beyond those specifically enumerated in Section 6 of 17
this Act. 18
SECTION 5. A NEW SECTION OF KRS CHAPTER 121 IS CREATED TO 19
READ AS FOLLOWS: 20
(1) The registry may bring a civil action to enforce Sections 2 and 3 of this Act and a 21
committee, person, or entity alleged to have violated Section 2 or 3 of this Act 22
shall be provided full opportunity of notice, discovery, and an opportunity to be 23
heard before being found liable for a violation of Section 2 or 3 of this Act. 24
(2) In all actions brought under subsection (1) of this section, the registry bears the 25
burden of proof and the action shall proceed as follows: 26
(a) Prior to discovery, the court shall set a hearing to determine whether there 27 UNOFFICIAL COPY 25 RS BR 1862
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is probable cause that a committee or person has violated Section 2 or 3 of 1
this Act; 2
(b) If, after the hearing in paragraph (a) of this subsection, the court 3
determines that no probable cause exists to believe that a violation of 4
Section 2 or 3 of this Act has occurred, the court shall enter an order of 5
dismissal with prejudice; 6
(c) If, after the hearing in paragraph (a) of this subsection, the court 7
determines that probable cause does exist to believe that a violation of 8
Section 2 or 3 of this Act has occurred, the court shall enter an order to that 9
effect and the case shall proceed to trial on an expedited basis. Subject to 10
Section 6 of this Act, the entity alleged to have violated Section 2 or 3 of this 11
Act may, prior to the scheduling of trial, present evidence sufficient to rebut 12
the finding of probable cause by making an ex parte presentation of records 13
to the court for in camera review; and 14
(d) The losing party under paragraph (c) of this subsection has the right to: 15
1. An interlocutory expedited appeal; and 16
2. A stay of proceedings in the trial court. 17
(3) Within thirty (30) days of a finding that a committee has violated Section 2 or 3 of 18
this Act, the committee shall refund the contribution to the original contributor. 19
In the event of an appeal, the contribution shall be placed in escrow, after which 20
the funds shall be disbursed in accordance with the final order. If the committee 21
is unable to return the funds, the directors, officers, or executive members of the 22
committee shall be liable in their personal capacity, jointly and severally, for the 23
refund of said funds. 24
(4) Within thirty (30) days of a finding that any person or committee required to 25
report independent expenditures has violated Section 2 or 3 of this Act, the entity 26
making the independent expenditure shall disgorge funds in an amount equal to 27 UNOFFICIAL COPY 25 RS BR 1862
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the reported cost of the independent expenditure to the registry. If the entity is 1
unable to disgorge the requisite funds, the directors, officers, or executive 2
members of the entity shall be liable in their personal capacities, jointly and 3
severally, for the payment of the amount due. In the event of an appeal, the funds 4
subject to disgorgement shall be placed in escrow, after which they shall be 5
disbursed in accordance with the final order. 6
(5) If any lobbyist, as defined in KRS 11A.010, violates Section 2 or 3 of this Act, the 7
lobbyist's registration may be revoked or suspended and the lobbyist may be 8
enjoined from receiving compensation or making expenditures for lobbying. 9
(6) If the registry prevails in an action brought under this section, the court may 10
award: 11
(a) Injunctive relief sufficient to prevent the defendant from violating or 12
engaging in acts that aid or abet violations of Sections 2 and 3 of this Act; 13
and 14
(b) Statutory damages up to two (2) times the amount of the prohibited 15
contribution or expenditure. 16
(7) In addition to the penalties in subsection (6) of this section, and any other 17
remedies provided by law, if the court finds a knowing or willful violation of 18
Section 2 or 3 of this Act, the court may assess a penalty of up to three (3) times 19
the statutory damages. 20
SECTION 6. A NEW SECTION OF KRS CHAPTER 121 IS CREATED TO 21
READ AS FOLLOWS: 22
(1) A lawful donor to a tax-exempt organization possesses a right of privacy in his or 23
her donations. Any investigation of an alleged violation of Section 2 or 3 of this 24
Act, or lawful court order in an action brought under Section 5 of this Act, shall 25
shield the identity of lawful donors as far as possible. No state or local 26
governmental entity, court, or officer of the court shall collect or require the 27 UNOFFICIAL COPY 25 RS BR 1862
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submission of information on the identity of any donor to a tax-exempt 1
organization other than those directly related to an alleged violation of Section 2 2
or 3 of this Act. 3
(2) No state or local governmental entity, court, or officer of the court shall disclose 4
to the public, or to another government official not directly involved in the 5
investigation, information revealing the identity of any donor to a tax-exempt 6
organization, unless the information is regarding the identity of a donor that 7
engaged in conduct prohibited by Section 2 or 3 of this Act after a final 8
determination has been made that the donor violated Section 2 or 3 of this Act. 9
(3) Any state or local governmental entity, court, or officer of the court who 10
knowingly or willfully violates subsection (2) of this section shall be guilty of a 11
Class A misdemeanor. 12
Section 7. KRS 121.190 is amended to read as follows: 13
(1) All newspaper or magazine advertising, posters, circulars, billboards, handbills, 14
sample ballots, and paid-for television or radio announcements which expressly 15
advocate the election or defeat of a clearly identified candidate, slate of candidates, 16
or group of candidates for nomination or election to any public office, or expressly 17
advocate or oppose a ballot measure, shall be identified by the words "paid for by" 18
followed by the name and address of the individual or committee which paid for the 19
communication; except that if paid for by a candidate, slate of candidates, or 20
campaign committee, it shall be identified only by the words "paid for by" followed 21
by the name of the candidate, slate of candidates, or campaign committee, 22
whichever is applicable. For television and radio broadcasts, compliance with 23
Federal Communications Commission regulations regarding sponsored programs 24
and broadcasts by candidates for public office shall be considered compliance with 25
this section. 26
(2) The disclaimer described in subsection (1) of this section shall appear and be 27 UNOFFICIAL COPY 25 RS BR 1862
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presented in a clear and conspicuous manner to give the reader or observer adequate 1
notice of the identity of the purchaser of the communication. A disclaimer does not 2
comply with this section if the disclaimer is difficult to read or if the placement of 3
the disclaimer is easily overlooked. 4
(3) The provisions of subsection (1) of this section shall not apply to: 5
(a) Any news articles, editorial endorsements, opinion, or commentary writings, 6
or letter to the editor printed in a newspaper, magazine, flyer, pamphlet, or 7
other periodical not owned or controlled by a candidate or committee; 8
(b) Any editorial endorsements or opinions aired by a broadcast facility not 9
owned or controlled by a candidate or committee; 10
(c) Any communication by a person made in the regular course and scope of the 11
person's business or any communication made by a membership organization 12
solely to members of the organization and the members' families; and 13
(d) Any communication that refers to any candidate only as part of the popular 14
name of a bill or statute. 15
(4) (a) A person shall not use, cause or permit to be used, or continue to use any 16
published, distributed, or broadcast political advertising containing express 17
advocacy that the person knows does not include the disclosure required by 18
subsection (1) of this section. A person is presumed to know that the use of 19
political advertising is prohibited by this subsection if the registry notifies the 20
person in writing that the use is prohibited. 21
(b) A person who learns that political advertising signs that have been distributed 22
do not include the disclosure required by subsection (1) of this section or 23
include a disclosure that does not comply with subsection (1) of this section 24
does not commit a violation of this subsection if the person makes a good-25
faith attempt to remove or correct those signs within forty-eight (48) hours 26
and provides the registry with proof of correction. 27 UNOFFICIAL COPY 25 RS BR 1862
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(5) The management of newspapers and magazines shall keep a one (1) year record of 1
all statements, articles, or advertisements referred to in subsection (1) of this 2
section, that appear in their publications, however, nothing in subsection (1) of this 3
section shall be construed to require editors or editorial writers of newspapers and 4
magazines to identify themselves in the manner therein required with any article or 5
editorial written by them as part of their duties as an employee or employer. 6