KentuckyHB 452025 Regular SessionHouseWALLET

AN ACT relating to campaign finance.

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 2 benefits, 6 costs, 2 mixed.

Campaign accounts gain more spending options

Campaign accounts can pay for volunteer fundraisers' and campaign workers' gifts and meals when spending directly and mainly supports ballot-related campaigns. Accounts can also give to other state or federal candidates or slates, or buy tickets to their fundraising or testimonial events. These payments must stay within the applicable individual contribution limit for each election. Kentucky legislators can give campaign funds to other candidates, slates, parties, or caucus campaign committees, subject to contribution limits. Their authority continues until campaign funds are exhausted and the account is closed.

Organization donors gain stronger privacy protections

Government offices, courts, and court officers can collect donor-identifying information only when directly related to an alleged foreign-funding or certification violation. They generally cannot disclose that information publicly. Disclosure is allowed after a final finding that the donor engaged in prohibited conduct. Knowing or willful violations of the disclosure restriction are Class A misdemeanors.

Ballot committees must check foreign funding

At registration, a ballot-measure committee's treasurer must certify that foreign nationals did not directly or indirectly fund its early activity. Committee reports must affirm no knowing or willful receipt, solicitation, or acceptance of foreign-national contributions or spending. For each contribution, treasurers must obtain the donor's affirmation that the donor is not a foreign national. Donors must also affirm they have not knowingly or willfully accepted over $100,000 total from foreign nationals during the preceding four years. Treasurers must affirm in committee reports that each donor meets the stated foreign-funding requirements.

Campaign violators face stronger court penalties

The Registry can sue to enforce the foreign-funding and certification rules and bears the burden of proof. Courts must hold a probable-cause hearing before evidence discovery, with an expedited trial for cases that continue. If the Registry wins, courts can order conduct stopped and damages up to twice the prohibited contribution or spending. Knowing or willful violations can bring an additional penalty up to three times those damages. Lobbyist violators can face suspended or revoked registration and court orders barring lobbying pay or spending.

Foreign funding barred from ballot campaigns

Foreign nationals cannot directly or indirectly fund ballot-measure campaigns, solicit that funding, or take part in others' campaign decisions. Registered ballot-measure committees cannot knowingly or willfully receive, seek, or accept foreign-funded contributions or spending. Foreign nationals include noncitizens without permanent residency, foreign governments and entities, and some foreign-owned U.S. entities. A wholly or majority foreign-owned U.S. entity is excluded when its political funds come entirely from U.S. operations. U.S. citizens or permanent residents must also make all related decisions, except setting overall budgets.

Independent ballot spenders face funding checks

Independent ballot-measure spenders must certify their foreign-funding history to the Kentucky Registry of Election Finance within 48 hours after spending. They must certify no knowing or willful acceptance of over $100,000 total from foreign nationals in the preceding four years. They must also promise not to accept over that amount for the rest of the measure's ballot calendar year. Their reports must include the required four-year affirmation. Covered certifying persons and committees face a presumed violation if they accepted over $100,000 in the relevant four-year period.

More campaign activity faces finance rules

Groups of three or more people count as ballot-measure committees when they receive or spend more than $1,000 advocating a measure. Uncoordinated spending on messages expressly supporting or opposing a measure counts as independent spending. Coordination includes acting at a committee's request or suggestion. People seeking nonfederal office count as candidates when they raise or spend campaign money, appoint a treasurer, or authorize campaign activity. The candidate definition remains subject to the law's stated exception.

Political advertisers must identify who pays

Covered public political ads must clearly say “paid for by” and identify the purchaser by name and address. This covers ads expressly supporting or opposing a clearly identified candidate, slate, group of candidates, or ballot measure. Ads paid for by a candidate, slate, or campaign committee need the applicable name, without an address. Existing legal exceptions for certain communications remain.

Campaign filers face electronic reporting rules

Starting with the 2020 primary, covered candidates, slates, committees, contributing organizations, and independent spenders must file campaign reports electronically. The Registry must offer electronic filing when adequate and appropriate agency funds are available; reports become official upon receipt. Filers must affirm completeness and accuracy under penalty of perjury; unreadable or uncopyable reports do not comply. Ballot-measure committees and independent ballot spenders must keep contribution and spending records for six years after each transaction. Eligible filers with no new receipts, loans, items of value, or authorized, incurred, or completed spending can report “No change” and their carried-forward balance.

Campaign violations trigger refunds and repayments

After a foreign-funding or certification violation finding, committees must return the affected contributions to original donors within 30 days. People or entities required to report independent spending must pay the Registry its reported cost within 30 days. On appeal, the money stays in escrow until a final order. If an entity cannot pay, its directors, officers, or executive members are each liable for the full unpaid amount.

Sponsors & Cosponsors

Sponsor

John Hodgson
Republican • House

Cosponsors

Daniel Elliott
Republican • House
Daniel Grossberg
Democrat • House
Derek Lewis
Republican • House
Josh Branscum
Republican • House
Kim Banta
Republican • House
Peyton Griffee
Republican • House
Pamela Stevenson
Democrat • House
Walker Thomas
Republican • House
Wade Williams
Republican • House

Roll Call Votes

All Roll Calls

Yes: 191 • No: 30

Senate vote • 3/14/2025

passed

Yes: 77 • No: 12

Senate vote • 3/11/2025