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Greetings from Registry Chairman

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Notice of Exemption

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Ten Important Campaign Finance Questions

KENTUCKY REGISTRY OF ELECTION FINANCE

TEN IMPORTANT CAMPAIGN FINANCE QUESTIONS

1.        When is a disclaimer required?

            KRS 121.190(1); 32KAR 2:110

All newspaper or magazine advertising, posters, circulars, billboards, handbills, sample ballots, and paid - for television or radio advertisements which expressly advocate the election or defeat of a clearly identified candidate or group of candidates is required to have a disclaimer. 

For television and radio broadcasts, compliance with Federal Communication Commission regulations regarding sponsored programs and broadcasts by candidates for public office shall be considered compliance with Kentucky law.

2.           What is the proper wording of the disclaimer?         

            KRS 121.190(1)

The phrase “paid for by candidate” is NEVER a correct disclaimer!

If paid for by the candidate or the campaign committee, the disclaimer must state “paid for by” and the candidate’s first and last name or the committee’s name.  If paid for by an individual or other entity, the disclaimer must list the name and complete address of the individual or other entity. 

3.        Is the money a candidate spends out of his/her own pocket during the campaign considered a contribution?

KRS 121.180(9)(b); KRS 121.220

The personal funds of a candidate used in connection with seeking elective office should be deposited directly into the campaign account.  Any money spent “out of pocket” by the candidate must be reimbursed to the candidate from the campaign account or reported as a debt owed by the campaign to the candidate.  Take caution, as expenditures using personal funds outside the campaign account may subject the candidate’s personal accounts to an audit if the campaign cannot adequately document the source of funds expended.

4.        Same example as #3, but the candidate does not want to be reimbursed. Can the candidate’s “out of pocket expenses” be an in-kind contribution to the campaign?

KRS 121.015(6); KRS 121.180(9)(b); KRS 121.220

The candidate’s “out of pocket expenses” should be reimbursed or reported as debt owed by the campaign to the candidate.  A candidate may make unlimited contributions to his/her own campaign by depositing funds in the candidate’s campaign account. A candidate may provide goods, advertising, or services (e.g. the use of a personal computer) privately owned prior to the campaign, which would constitute an in-kind contribution. However, the payment of funds by a candidate for gas, lodging, meals, printing or other such expenses, constitutes an expenditure, which should be made or subsequently reimbursed from the candidate campaign account’s primary depository or otherwise reported as a debt owed by the campaign.

5.        What determines if and/or when a candidate files a report?

KRS 121.180

The exemption chosen on the Statement of Intent is the most important factor in determining if and/or when a candidate files a report.  If a candidate indicated on the Statement of Intent that he/she intended to raise and spend over $3,000 but actually spent under $1,000, the candidate is still required to file reports as if the campaign spent over $3,000.  If a candidate indicated on the Statement of Intent that he/she intended to raise and spend under $1,000 but actually exceeds $1,000, the candidate must notify the Registry as soon as he/she has exceeded the amount elected in the Statement of Intent and then begin filing all subsequent pre-election and post-election finance statements. 

6.        What if the intent is not checked on the Statement of Intent? 

KRS 121.180

If the amount intended to be raised/spent is not indicated on the Statement of Intent, the candidate is required to file all pre-election and post-election finance statements.

7.        When does a person become a candidate?

KRS 121.015(8)

A person is considered a candidate when he/she has received contributions or made expenditures with a view to bringing about his/her nomination or election to public office.

8.        A contributor is self-employed.  On the campaign finance report why is “self-employed” not an allowable description for the contributor’s occupation and/or place of employment?

KRS 121.160 (2)(b)

The statute specifically requires the name under which the contributor is doing business to be listed on the campaign finance statement.

9.        What may a candidate purchase using the funds in the campaign account?

KRS 121.175; KRS 121.180(10); 32 KAR 2:200

Allowable campaign expenses are only those expenditures which directly benefit the campaign.  The statutes prohibit the purchase of items which provide a personal benefit to the candidate or another but do not directly benefit the campaign.

10.      How should candidate loans be reported?  

KRS 121.180(3), (4) & (7); 32 KAR 2:100

Candidate loans should be reflected on both the Schedule 1A and Schedule 4. Since the candidate is putting money into the campaign account, the transaction must be indicated on Schedule 1A.  Since a candidate loan is considered a debt until repaid or assumed, it should also be listed on Schedule 4.  The repayment of candidate loans will also be documented on Schedule 1A and Schedule 4.

Need additional help?  Have more questions?  Contact Registry Staff at (502) 573-2226 or visit our website at www.kref.ky.gov.