KRS 121.175: Allowable campaign expenditures -- Administrative regulations --

Penalties.

(1) (a) No candidate, committee, or contributing organization shall permit funds in a

campaign account to be expended for any purpose other than for allow able

campaign expenditures.

(b) As used in this section, "allowable campaign expenditures":

1. Means expenditures including reimbursement for actual expenses, made

directly and primarily in support of or opposition to a candidate,

constitutional amendment, or public question which will appear on the

ballot and includes, but is not limited to, expenditures for staff salaries,

gifts and meals for volunteer campaign workers and fundraisers, food

and beverages provided at a campaign rally, advertising, office s pace,

necessary travel if reported, campaign paraphernalia, purchases of

advertisements in athletic and scholastic publications, communications

with constituents or prospective voters, polling and consulting, printing,

graphic arts, or advertising services , postage, office supplies, stationery,

newsletters, and equipment which is used primarily for the

administration of the campaign, or for fees incurred from legal services

while defending a matter before the Kentucky Legislative Ethics

Commission in which the final adjudication is rendered in favor of the

candidate; and

2. Does not include necessary travel unless reported, expenditures of funds

in a campaign account for any purpose made unlawful by other

provisions of the Kentucky Revised Statutes or which would bestow a

private pecuniary benefit, except for payment of the reasonable value of

goods and services provided upon a candidate, member of the

candidate's family, committee, or contributing organization, or any of

their employees, paid or unpaid, incl uding: tickets to an event which is

unrelated to a political campaign or candidacy; items of personal

property for distribution to prospective voters except items bearing the

name, likeness, or logo of a candidate or a campaign -related

communication; expen ditures to promote or oppose a candidacy for a

leadership position in a governmental, professional, or political

organization, or other entity; and equipment or appliances the primary

use of which is for purposes outside of the campaign.

(c) The provisions of KRS 121.190 notwithstanding, a candidate shall not be

required to include a disclaimer on campaign stationery purchased with funds

from his campaign account.

(2) A member of the General Assembly may utilize funds in his or her campaign

account to:

(a) Contribute up to five thousand dollars ($5,000) per year to a political party or

caucus campaign committee;

(b) Contribute directly to another candidate, slate of candidates, political party, or

caucus campaign committee until his or her campaign funds have been

exhausted and the account has been closed, if the amount of the contribution

does not exceed the contribution limits contained in KRS 121.150(6) and (11);

(c) Make allowable campaign expenditures in both election years and nonelection

years;

(d) Upon approval by the President of the Senate or the Speaker of the House of

Representatives, depending on the member's chamber:

1. Attend a conference, meeting, reception, or similar event; or

2. Attend an educational course or seminar that maintains or improves

skills employed by the member in carrying out the duties of his or her

elective office; and

(e) Pay for fee s incurred from legal services while defending a matter arising

from his or her campaign or election or the performance of his or her official

duties.

(3) (a) The use of campaign funds to pay for the reasonable costs of security

measures for a state candid ate, officeholder, member of his or her family, and

employees of the candidate's campaign or the officeholder's office is an

allowable campaign expenditure, so long as the security measures address

ongoing dangers or threats that would not exist irrespecti ve of the individual's

status or duties as a candidate or officeholder. Disbursements for security

measures shall be for the usual and normal charge for such goods or services.

(b) As used in this subsection:

1. "Security measure" includes but is not limited to:

a. Nonstructural security devices, such as security hardware, locks,

alarm systems, motion detectors, and security camera systems;

b. Structural security devices, such as wiring, lighting, gates, doors,

and fencing, so long as such devices are inten ded solely to provide

security and not to improve the property or increase its value;

c. Security personnel and services that are bona fide, legitimate, and

professional; and

d. Cybersecurity software, devices, and services; and

2. "Usual and normal charge" means:

a. In the case of goods, the price of those goods in the market in

which they are ordinarily purchased; and

b. In the case of services, the hourly or piecework charge for the

services at a commercially reasonable rate prevailing at the time

the services are rendered.

(4) The registry shall promulgate administrative regulations to implement and enforce

the provisions of subsection (1) of this section.

(5) In lieu of the penalties provided in KRS 121.140 and 121.990 for a violation of this

section, the registry may, after hearing:

(a) For a violation which was not committed knowingly, order the violator to

repay the amount of campaign funds which were expended for other than

allowable campaign expenditures, and if not repaid within thirty (30) days,

may impose a fine of up to one hundred dollars ($100) for each day the

amount is not repaid, up to a maximum fine of one thousand dollars ($1,000);

and

(b) For a violation which was committed knowingly, in addition to referring the

matter for criminal prose cution, order the violator to repay the amount of

campaign funds which were expended for other than allowable campaign

expenditures, and if not repaid within thirty (30) days, may impose a fine of

up to one hundred dollars ($100) for each day the amount is not repaid, up to

a maximum fine of one thousand dollars ($1,000).