KANSAS CAMPAIGN FINANCE AND BALLOT MEASURE GUIDE These resources are current as of 7/28/14. We do our best to periodically update these resources and welcome any comments or questions regarding new developments in the law. Please email us at [email protected]. This guide summarizes key aspects of laws and regulations governing lobbying on the state level. It is not intended to provide legal advice or to serve as a substitute for legal advice. In some jurisdictions, city and/or county regulations may also apply to certain political activities. Check with the appropriate local jurisdiction before undertaking any activity. 1 I. Overview II. Contribution Limits and Source Restrictions a. Restrictions on Contributions i. Aggregation ii. Contributions during legislative session prohibited iii. Location of contributions iv. Cash contributions v. Campaign surplus vi. No restrictions based on type of donor vii. Contributions by another/Anonymous contributions b. In-Kind Contributions i. Definition ii. Made in cooperation with or with the consent of a candidate iii. Volunteer service c. Corporate contributions III. Communications a. Issue Advocacy vs. Express Advocacy b. Member Communications c. Electioneering Communications d. Independent Expenditures i. Definition ii. No limits on Independent Expenditures iii. Reporting Independent Expenditures e. Disclaimers IV. Coordination V. Registration and Reporting Requirements a. In-State PACs i. Definition ii. Organization and Registration iii. Reporting b. Out-of-State and Other PACs i. Reporting ii. Exceptions c. PAC Termination VI. Ballot Measures a. Constitutional Amendments b. Local Ballot Measures VII. Enforcement and Penalties VIII. Contact Information for State and Local Agencies 2 OVERVIEW The Kansas Campaign Finance Act is located at K.S.A. § 25-4142 et seq. and the regulations are located at K.A.R. § 19-20-1 through 19-30-4. The Kansas Governmental Ethics Commission regulates campaign finance. It issues opinions concerning campaign finance. A few judicial opinions discuss the campaign finance act: State v. Palmer, 248 Kan. 681 (1991) (Violations of act involving theft, conspiracy, false writing, criminal solicitation, and acts constituting concealment); Legislative Coordinating Council v. Stanley, 264 Kan. 698 (1998) (Payment of vouchers for contested election costs by director of accounts and reports does not violate K.S.A. 25-4169a); Kansans for Life, Inc. v. Gaede, 38 F.Supp.2d 928 (U.S.D.C. Kan. 1999) (First amendment rights violated, statute held unconstitutionally vague); and Cole v. Mayans, 276 Kan. 866 (2003) (Campaign funds from state office not transferable to city office). CONTRIBUTION LIMITS AND SOURCE RESTRICTIONS To Candidates 1 (limits for each primary (P) and general (G) election) To Committees (per calendar year) For Constitutional 2 Amendments Senate House and Local Offices PAC Parties (state-S, recognized-R, congressional3 C, county-Co) $2,000P ,G $1,000P,G $500-P,G No limit $15,000-S 5,000-R,C,Co No limit $2,000 P,G $2,000P,G $1,000P,G $500-P,G No limit $5,000-S,R,C,Co No limit State Party Committee $2,000-P No limit-G $2,000-P No limit-G $1,000-P No limit-G $500-P No limit-G No limit $5,000R,C,Co No limit Congressional or Recognized Party Comm. $2,000-P No limit-G $2,000-P No limit-G $1,000-P No limit-G $500-P No limit-G No limit $15,000-S $5,000-R,C,Co No limit County Central Committee 2,000-P No limit-G 2,000-P No limit-G 1,000-P No limit-G 500-P No limit-G No limit 15,000-S 5,000-R,C,Co No limit From Governor Other Statewide Individuals/ Corporations/ Organizations $2,000P,G PACs K.S.A. § 25-4153. 1 These limits only apply in contested primary elections. All persons promoting or opposing constitutional amendments must report contributions in excess of $50 for that purpose. K.S.A. § 25-4180. 3 For contributions from a national party committee to a party committee, the limits are $25,000 to state committees and $10,000 to recognized, congressional and county committees. 2 3 Restrictions on Contributions Aggregation There are no separate aggregate limits for contributions to multiple donees. Contributions during legislative session prohibited After January 1st and prior to adjournment sine die of the legislature or at any other time it is in session, no lobbyist, political committee or person, other than an individual, shall make a contribution to a legislator, to an officer elected statewide, to a candidate for either, to their candidate committee or to a political committee for the senate or house. K.S.A. § 25-4153a. Location of Contributions There are no restrictions on locations where contributions may be delivered (e.g., state office buildings), although there are some restrictions on the use of public property, public employee time and municipal buildings for campaigning, violations of which are a class C misdemeanor. K.S.A. § 25-4169a. Cash Contributions Contributions which in the aggregate exceed $100 for any one primary or general election cannot be made in cash. K.S.A. § 25-4153(i). A check, credit card or money order must then be used. Campaign Surplus At the time of termination of any campaign, all of a candidate’s residual funds not obligated for expenses incurred in the campaign or the holding of office must be contributed to charity, contributed to a party committee, refunded to the contributors or paid into the state general fund. K.S.A. § 25-4157a(d). No restrictions based on type of donor There are no special contribution restrictions for particular kinds of contributors, such as lobbyists, unions or state contractors, other than the above legislative session restrictions, which apply to all donors except individuals. Contributions by another/Anonymous contributions Contributions must be made in the name of the person providing the contribution, and contributions in excess of $10 must be accompanied with the name and address of the contributor. K.S.A. § 25-4154(a) and (b). Teacher’s Unions and Other Public Employee Unions The legislature recently placed limits on how teacher’s unions and other public employee unions can raise funds for political purposes from union members. Previously unions could allow members to vote to allocate a portion of member dues to be used for political purposes. Under this new law, unions must raise funds only through voluntary donations. K.S.A. § 75-4333. In-Kind Contributions 4 Definition In-kind contributions such as goods or services are treated the same as monetary contributions and are valued at fair market value. “Contributions” regulated by the Finance Act are broadly defined as (A) any advance, conveyance, deposit, distribution, gift, loan or payment of money or other thing of 5 value given to a candidate, candidate committee, party committee or political committee or (B) otherwise made. In either case they must be given or made for the purpose of causing or expressly advocating the nomination, election or defeat of a clearly identified candidate for state or local office. K.S.A. § 254143(e)(1)(A) and (B). Kansas does not regulate contributions or expenditures for issue advocacy ads (electioneering communications), as explained below. Made in cooperation with or with the consent of the candidate In-kind contribution also means the use of any goods, services, or anything of value, or the spending of any money, for the benefit of any candidate, candidate committee, party committee, or political committee when the use or expenditure is made in cooperation with or with the consent of the candidate, committee, or representative of them. K.A.R. § 19-20-2(b). However, to be a regulated in-kind contribution there must again be express advocacy. Opinion 2008-10 (in-kind contributions must involve express advocacy in order to be regulated contributions, http://www.kansas.gov/ethics/opinion/opinions/2008-10.html). Volunteer service The value of volunteer services provided without compensation does not constitute an in-kind contribution. K.S.A. § 25-4143(e)(2)(A). Corporate Contributions COMMUNICATIONS Issue Advocacy vs. Express Advocacy Express advocacy is any communication that falls under the “magic words” test as laid out in Buckley v. Valeo. These include communications that state “vote for the secretary of state”, “re-elect your senator”, “support the democratic nominee”, vote for or vote against Smith, etc. K.S.A. § 25-4143(h). Although this statute states that express advocacy is “not limited to” these terms, the Kansas Ethics Commission considers the magic words, or at least minor variations on them, to be the test for express advocacy. The Kansas Legislature considered, but rejected, amendments to K.S.A. § 254143 which would have constitutionally broadened the scope of express advocacy to include communications “which in context have no other reasonable meaning than to support or oppose” a candidate. Thus, although K.S.A. § 254143(h) states that express advocacy is “not limited to” the magic words listed, 6 the statute’s judicial and legislative history support its construction that express advocacy requires the magic words or at least minor variations of them. Member Communications Expenditures for express advocacy communications made in the form of internal organizational communications of business, labor, professional, or other organizations are not regulated or reportable as in-kind contributions. K.A.R. § 19-24-3. Therefore, there is no limit on or reporting of expenditures made for these communications. The Ethics Commission has stated that K.A.R. § 19-24-3 would apply regardless of whether the association is incorporated. It has also stated that this exception is for communications made in the ordinary course to members or shareholders and suggesting which candidates to support or oppose. If the communications are part of a concerted express advocacy campaign effort, the Commission might not view them as “merely endorsing” a candidate. Electioneering Communications Because it is not express advocacy, Kansas does not regulate electioneering communications, issue ads or nonexpress advocacy communications. The Ethics Commission’s website provides the following information on issue ads: “Issue ads are communications, sometimes referred to as electioneering communications, that do not expressly advocate for the election or defeat of a clearly identified candidate for state or local office. These advertisements or mailings may ask you to contact a candidate or current office holder to give them your viewpoint on a specific subject, but the literature or advertisement does not ask you to vote for or against a specific candidate. Because there is no express advocacy, individuals and/or organizations that use these types of advertisements or communications do not fall under the jurisdiction of the Campaign Finance Act. Therefore, there is no reporting of this activity.” However, Kansas law does prohibit candidates for elected office form appearing in certain public service announcements or advertisements or allowing the candidate's name to be used in a public service announcements or advertisements during a period beginning 60 days before any primary election in which the candidate's name appears on the ballot and ending with the conclusion of the general election. K.S.A. § 25-4189(a). This prohibition applies only to a message “broadcast by electronic, telephone or print media" in which time or space is either (1) donated on behalf of the media, (2) paid for with public sector funds, or (3) paid for with private sector funds from the current contractor of the sponsoring government entity. A candidate may personally appear on a scheduled radio or television program and may participate in a newspaper interview and discuss, announce or promote an issue of public importance, concern or welfare during the specified time frame. Additionally, advertisements paid for by a candidate, PAC or a third party not covered by the 7 ban would be allowed. Kansas Ethics Commission Op No. 2012-03. Independent Expenditures Definition of Independent Expenditure o Independent expenditures are expenditures made without the cooperation or consent of a candidate, or agent of such candidate, intended to be benefitted and which expressly advocate the election or defeat of a clearly identified candidate. K.S.A. § 25-4148c(d)(2). o Independent Expenditures may be made by a political action committee, party committee, individual, corporation or other person. 8 No limits on independent expenditures Independent expenditures are not subject to contribution limits because the expenditure is not made with the consent or cooperation of the candidate or his or her agent. K.A.R. § 19-20-2(b). Reporting Independent Expenditures o PACs and party committees are required to report all independent expenditures. The vendor to whom the payment is made must be disclosed. For independent expenditures in excess of $300, the name and address of the candidate expressly advocated or opposed, as well as the expenditure amount and the service or product provided, must be disclosed. K.S.A. § 45-4148c. o Individuals, corporations or other persons making independent expenditures of $100 or more must file a one page report showing the name and address of each contributor of $50 or more, the name and address of each vendor paid $50 or more for the expenditure and the name of the candidate expressly advocated or opposed. K.S.A. § 254150. o They must also file reports for last minute independent expenditures made or accrued and contributions received in excess of $300 beginning 11 days before a primary or general election and ending at 11:59 p.m. on the Wednesday preceding the date of the election. K.S.A. §§ 25-4148c(b)(1) and 4148d(b)(1). Four daily reports are also due for the Thursday, Friday, Saturday and Sunday preceding the election, due before 5 p.m. the next day. K.S.A. § 25-4148c(b)(2) and 4148d(b)(2). Disclaimers Published, broadcasted, telephoned or internet communications containing express advocacy must have certain disclosures. K.S.A. § 25-4156, K.A.R. § 1920-4. Newspapers must contain the word “advertisement” or “adv.” and the name of the sponsor’s representative and organization or individual sponsor. Broadcast, telephoned and brochure express advocacy must state “Paid for” or “Sponsored by” and contain similar information. Failure to make these disclosures is the offense of corrupt political advertising, punishable as a class C misdemeanor. K.S.A. § 25-4156(b)(2). COORDINATION The statutes and regulations provide no guidance as to how and when an expenditure for express advocacy is made with the consent or cooperation of the 9 candidate or his or her agent, thus making it a reportable in-kind contribution. If a communication is only issue advocacy (contains no express advocacy), the expenditure for the communication is unregulated even if it is made with the consent or cooperation of the candidate or his or her agent. Kansas Ethics Commission, Opinion No. 2008-10. If a candidate is also the chairman of a PAC, and the PAC makes expenditures for express advocacy endorsing the candidate/chairman, those expenditures will amount to in-kind contributions because they were made in cooperation with a candidate. Kansas Ethics Commission, Opinion No. 2006-17. REGISTRATION AND REPORTING REQUIREMENTS In-State PACs Definition A political [action] committee (PAC) means any combination of two or more individuals or any person (including a nonprofit organization) other than an individual, a major purpose of which is to expressly advocate the nomination, election or defeat of a clearly identified candidate for state or local office in Kansas or to make contributions or expenditures for that purpose. K.S.A. § 254143(k). Note that individuals or entities that make expenditures supporting or opposing constitutional amendments will not have to register as a PAC, but are subject to separate reporting requirements, discussed in “Ballot Measures”, below. Organization and Registration o A PAC which anticipates receiving such contributions or making such expenditures must appoint a chairperson and treasurer, and the chairperson must file a statement of organization with the Secretary of State within 10 days after establishment of the committee. K.S.A. § 254145 (a). o Annual registration is also required on or before July 1st of each year and an annual registration fee is required. K.S.A. § 25-4145(d). o The PAC bank account need not be in-state nor need the treasurer be a resident. o Registration Fees For PACs anticipating receipt of $2,501 or more in any calendar year the registration fee is $240; for PACs anticipating receipt of more than $500 but less than $2,501 the registration fee is $35; 10 for PACs anticipating receipt of less than $500 the registration fee is $20. If a PAC that paid a lower fee for registration subsequently surpasses the monetary threshold must, within three days of surpassing this amount, amend their registration and submit payment to make up the difference in registration fees (for PACs that initially paid $20 but then surpass the $500 threshold, they must pay an additional $20 registration fee). K.S.A. § 25-4145(d). Reporting o Every treasurer of a PAC must file reports period campaign finance reports with the Secretary of State. K.S.A. § 25-4148(c), (b); K.A.R. §§ 19-29-1a, 19-29-2. Forms may be filed electronically, or paper copies may be submitted to the Secretary of State’s office. o Regular and last minute report periods and their due dates vary each year and may be obtained from the Kansas Ethics Commission website: 2014 Election Cycle Reporting Periods Due Dates for Campaign Finance Reports. o Special last minute reports of independent expenditures and contributions must also be filed for the period commencing 11 days before and ending on the Wednesday preceding an election. K.S.A. §§ 25-4148c, 25-4148d. o Local candidate reports are filed in the office of the county election officer of the county in which the name of the candidate is on the ballot. Party committees file reports only with the Secretary of State’s office. In State and Out-of-State PACs file reports with the Secretary of State’s office while local PACs file reports in the county in which the local PAC is domiciled. o Reports are posted for view on the Ethics Commission website. Donors are listed on the reports and their names are searchable. Out-of-State and Other PACs Reporting o Any combination of three or more individuals or a person other than an individual, not domiciled in Kansas, which makes or intends to make a contribution to a candidate, candidate committee, party committee or political committee in this state must either: File a verified statement containing (a) the names and addresses of the responsible individuals, (b) the name and address of each person who has contributed more than $50 to it within the past 12 months and (c) the aggregate amount of contributions to it within 11 the past 12 months. These reports must be filed for each regular treasurer reporting period. K.S.A. § 25-4172(a)(1). The statement shall include the names and addresses of contributors who are residents of Kansas, non-residents with jobs in Kansas, and those making contributions earmarked for use in Kansas. Other contributions may be disclosed in aggregate. K.A.R. § 19-21-6. OR File a statement of organization under K.S.A. § 25-4145, establish a separate fund for the purpose of receiving contributions and making expenditures relating to any election for state office in this state and file statements and reports involving such fund in the manner provided by K.S.A. 25-4148 for political committees and party committees. K.S.A. § 25-4172(a)(2). K.S.A. § 25-4172. o Exceptions The above reporting requirements do not apply to: (1) any political party having a national organization which reports under federal law, (2) a bona fide corporation organized under the laws of another state or (3) a union, if the contribution is made from union funds. K.S.A. § 25-4172(b). PAC Termination To terminate, a PAC’s treasurer must file a termination report with the Secretary of State if it has been involved with a candidate for state office. If the PAC has been involved with a candidate for local office, a report must be filed with the county election officer. The termination report shall include full information on the disposition of residual funds. Any report of final contributions and expenditures may include a termination report. K.S.A. § 25-4157. BALLOT MEASURES Important Note: Kansas does not allow for statewide initiative or referendums at the state level. However, Kansas does allow for legislatively-referred constitutional amendments, in which the state legislature, by a 2/3 vote, approves the placement of a constitutional amendment on the ballot, which requires a simple majority vote in order to be approved. Constitutional Amendments Contributions to any person promoting or opposing constitutional amendments trigger registration and reporting requirements. There are no contribution limits. An annual report is required showing all individual contributions or contributions 12 in-kind which in the aggregate exceed $50 in a calendar year. The annual report must be filed with the secretary of state on or before February 15 of each year for the preceding calendar year. An additional report is required by such persons 15 days prior to the constitutional election. K.S.A. § 25-4180(a). The rules do not differ for out-of-state contributors, and independent expenditures are reasonably determined in the same manner as described above. Local Ballot Measures Popular vote elections for city, county and other local measures do occur in Kansas. Persons promoting their adoption or defeat must file an annual report of contributions and expenditures with the county election officer. K.S.A. § 25-901. ENFORCEMENT AND PENALTIES The Governmental Ethics Commission sends notice to any person who fails to file a required report, and a civil penalty of $10 per day up to $300 may be imposed. K.S.A. § 25-4152. Commission hearings to determine violation issues may also be initiated by a complaint. K.S.A. §§ 25-4160 to 4163. The commission may impose fines of $5,000 to $15,000 per violation, may issue cease and desist orders and may seek an injunction. K.S.A. §§ 25-4181 to 4183. If a violation is found, it is referred to the state attorney general for criminal prosecution. K.S.A. § 25-4164. If the violator is a state legislator, it is referred to the Legislature for possible censure or disqualification. If the violator is an elected judicial officer, it is referred to the Supreme Court for possible action. Other violators may be ousted from office. K.S.A. § 25-4166. Violations for fraudulent reports, failure to file reports, misuse of public property and excessive contributions are class A misdemeanors. K.S.A. § 25-4167 to 4171. 13 CONTACT INFORMATION FOR STATE AND LOCAL AGENCIES Kansas Government Ethics Commission 109 SW 9th Street, Suite 504 Topeka, KS 66612 785-296-4219 www.kansas.gov/ethics Kansas Secretary of State Elections and Legislative Matters Memorial Hall, 1st Floor 120 SW 10th Avenue Topeka, KS 66612-1594 785-296-4564 www.kssos.org Written by David Prager, III. Topeka, KS. FOR FURTHER ASSISTANCE For assistance regarding these resources or for more information about federal law, please contact our attorney one-on-one counseling service: Email: [email protected] Telephone: 1-866-NPLOBBY (675-6229) For assistance regarding state law in Kansas, please contact: David Prager, III 3929 S.W. Friar Rd. Topeka, KS 66610 785-554-6768 [email protected] © Copyright 2012. These materials are copyrighted and may not be reproduced without permission. 14
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