Chapter 09-277

Chapter 277

2009 -- H 5570

Enacted 11/13/09

A N A C T

RELATING TO ELECTIONS

Introduced By: Representatives Handy, Naughton, Jacquard, and Walsh

Date Introduced: February 25, 2009

It is enacted by the General Assembly as follows:

SECTION 1. Section 17-25-7.2 of the General Laws in Chapter 17-25 entitled "Rhode

Island Campaign Contributions and Expenditures Reporting" is hereby amended to read as

follows:

17-25-7.2. Personal use of campaign funds prohibited. -- (a) The personal use by any

elected public office holder or by any candidate for public office, as defined in section 17-25-3, of

campaign funds contributed after April 29, 1992, is prohibited. For the purposes of this section,

"personal use" is defined as any use other than expenditures related to gaining or holding public

office and for which the candidate for public office or elected public official would be required to

treat the amount of the expenditure as gross income under section 61 of the Internal Revenue

Code of 1986, 26 U.S.C. section 61, or any subsequent corresponding Internal Revenue Code of

the United States, as from time to time amended.

(b) Expenditures that are specifically prohibited under this chapter include:

(1) Any residential or household items, supplies or expenditures, including mortgage,

rent or utility payments for any part of any personal residence of a candidate or officeholder or a

member of the candidate's or officeholder's family;

(2) Mortgage, rent, or utility payments for any part of any non-residential property that is

owned by a candidate or officeholder or a member of a candidate's or officeholder's family and

used for campaign purposes, to the extent the payments exceed the fair market value of the

property usage;

(3) Funeral, cremation, or burial expenses, including any expenses related to deaths

within a candidate's or officeholder's family;

(4) Clothing, other than items of de minimis value that are used in the campaign;

(5) Tuition payments;

(6) Dues, fees, or gratuities at a country club, health club, recreational facility or other

nonpolitical organization, unless they are part of a specific fundraising event that takes place on

the organization's premises;

(7) Salary payments to a member of a candidate's family, unless the family member is

providing bona fide services to the campaign. If a family member provides bona fide services to a

campaign, any salary payments in excess of the fair market value of the services provided is

personal use;

(8) Admission to a sporting event, concert, theater, or other form of entertainment, unless

part of a specific campaign or officeholder activity;

(9) Payment of any fines, fees, or penalties assessed pursuant to this chapter.

campaign funds. Such expenditures may include:

(1) The defrayal of ordinary and necessary expenses of a candidate or officeholder;

(2) Office expenses and equipment, provided the expenditures and the use of the

equipment can be directly attributable to the campaign or the officeholder's duties and

responsibilities;

(3) Donations to charitable organizations, provided the candidate or officeholder does

not personally benefit from the donation or receive compensation from the recipient organization;

(4) Travel expenses for an officeholder, provided that the travel is undertaken as an

ordinary and necessary expense of seeking, holding, or maintaining public office, or seeking,

holding, or maintaining a position within the legislature or other publicly elected body. If a

candidate or officeholder uses campaign funds to pay expenses associated with travel that

involves both personal activities and campaign or officeholder activities, the incremental

expenses that result from the personal activities are personal use, unless the person(s) benefiting

from this use reimburse(s) the campaign account within thirty (30) days for the amount of the

incremental expenses;

(5) Gifts of nominal value and donations of a nominal amount made on a special

occasion such as a holiday, graduation, marriage, retirement or death, unless made to a member

of the candidate's or officeholder's family;

(6) Meal expenses which are incurred as part of a campaign activity or as a part of a

function that is related to the candidate's or officeholder's responsibilities, including meals

between and among candidates and/or officeholders that are incurred as an ordinary and

necessary expense of seeking, holding, or maintaining public office, or seeking holding, or

maintaining a position within the legislature or other publicly elected body;

(7) Food and beverages which are purchased as part of a campaign or officeholder

activity. ;

(8) Communication access expenses which are incurred as part of a campaign activity

and operation to ensure that deaf and hard of hearing citizens are fully participating, are

volunteers, and/or are otherwise maintaining a position with the campaign committee. Examples

of communication access expenses include, but are not limited to, the following: captioning on

television advertisements; video clips; sign language interpreters; computer aided real time

(CART) services; and assistive learning devices.

(d) Any campaign funds not used to pay for the expenses of gaining or holding public

office may:

(1) Be maintained in a campaign account(s);

(2) Be donated to a candidate for public office, to a political organization, or to a

political action committee, subject to the limitation on contributions in section 17-25-10.1;

(3) Be transferred in whole or in part into a newly established political action committee

or ballot question advocate;

(4) Be donated to a tax exempt charitable organization as that term is used in section

501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. section 501, or any subsequent

corresponding internal revenue code of the United States as from time to time amended;

(5) Be donated to the state of Rhode Island; or

(6) Be returned to the donor.

SECTION 2. This act shall take effect upon passage.

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LC01867

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