KRS 121.230: Use of portion of income tax designated to political party -- Records and

reports -- Audit.

(1) (a) No state or local governing authority of a political party to which funds are

remitted under KRS 141.071 to 141.073 shall use such funds other than in

support of the party's candidates in a general election and for the

administrative costs of maintaining a political party headquarters.

(b) Permissible expenditures for the administrative costs of maintaining a

political party headquarters shall be limited to payments for or purchases of:

1. Leases, mortgages, insurance, property taxes, and legal expenses;

2. Appliances and fixtures;

3. Utilities, pest control, lawn care, security, cleaning, trash removal, and

necessary equipment and supplies related thereto;

4. Equipment for internet, telephone, cable or satellite television, or other

communications services;

5. Major and minor repairs to the political party headquarters, including

but not limited to the facility's roof, foundation, and structure, and to the

facility's plumbing, HVAC, and electrical systems; and

6. Office supplies, including but not limited to desks, chairs, computers,

printers, copiers, paper, and ink.

(2) Each state or local governing authority of a political party to which funds are

remitted under KRS 141.071 to 141.073 shall deposit such funds in a bank account

and shall report the amount of such funds received as a separate entry on its

committee report. All expenditures from such remitted funds shall be by check. A

copy of each canceled check written on the account of funds remitted under KRS

141.071 to 141.073 shall be retained by the state or local governing authority of the

political party for a period of not less than four (4) years.

(3) The designated official of each state or local governing authority of a political party

to which funds are remitted under KRS 141.071 to 141.073 shall maintain a current

record of the receipts, balance, and expenditur es of the funds so remitted. In

addition, the official shall, by January 31 each year, forward to the Registry of

Election Finance a report of:

(a) The unexpended and unobligated balance of such remitted funds; and

(b) An itemized listing of each expenditu re authorized, incurred or made from

such remitted funds, indicating the amount, date, and purpose of each

expenditure, regardless of the amount, and the name, address, and occupation

of each person to whom an expenditure of fifty dollars ($50) or more was

made, since the date of the last report.

(4) The reports required by subsection (3) of this section shall be a matter of public

record open to inspection by any member of the public immediately upon receipt of

the report by the registry.

(5) The Registry of Election Finance may annually audit the accounts and records of

receipts and expenditures of funds in the amount of one thousand five hundred

dollars ($1,500) or less that are remitted to each state or local governing authority

of a political party under KRS 141.071 to 141.073. The registry shall annually audit

the accounts and records of receipts and expenditures of funds in the amount of

more than one thousand five hundred dollars ($1,500) that are remitted to each state

or local governing authority of a political party under KRS 141.071 to 141.073. The

registry shall report the results of each audit conducted to the General Assembly. In

the course of such audits, the registry or its authorized agents may ascertain the

amount of such remitted funds on d eposit in the separate bank account, required by

subsection (2) of this section, of the political party audited and may audit the

account on the books of the bank. No bank shall be liable for making available to

the registry any of the information required under this section.