STATEMENT OF EMERGENCY

32 KAR 1:045E

 

      This emergency administrative regulation is being promulgated in response to the changes to KRS Chapter 121 under Senate Bill 75, effective June 29, 2017, as passed by the 2017 Kentucky General Assembly during regular session and signed by the Governor on March 27, 2017. The Kentucky Registry of Election Finance ("Registry") is expressly required to promulgate administrative regulations necessary to carry out the provisions of KRS Chapter 121 under KRS 121.120(1)(g) and to prescribe official forms for the making of required reports under KRS 121.120(4)(a). This administrative regulation must be filed on an emergency basis to meet a deadline for an administrative regulation required by state law, specifically KRS 121.172(1), (8), and KRS 121.180(2)(b), (c). An ordinary administrative regulation would be insufficient because a state executive committee building fund is a new reporting entity under the campaign finance law. The reporting form for a state executive committee building fund account must be made available to ensure that state executive committees that desire to establish building fund accounts comply with the new law. This emergency administrative regulation shall be replaced by an ordinary administrative regulation. The emergency administrative regulation is identical to the ordinary administrative regulation.

 

MATT G. BEVIN, Governor

CRAIG C. DILGER, Chairman

 

DEPARTMENT OF STATE

Kentucky Registry of Election Finance

(New Emergency Administrative Regulation)

 

      32 KAR 1:045E. Election Finance Statement - State Executive Committee Building Fund.

 

      RELATES TO KRS 121.172(8), 121.180(2)(b), (c)

      STATUTORY AUTHORITY: KRS 121.120(1)(g), (4), 121.172(1)

      EFFECTIVE: September 29, 2017

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 121.120(1)(g) grants the Registry the authority to promulgate administrative regulations necessary to carry out the provisions of KRS Chapter 121. KRS 121.120(4) requires the Registry to promulgate administrative regulations and prescribe forms for the making of reports under KRS Chapter 121. KRS 121.172(1) requires the Registry to promulgate administrative regulations to implement provisions permitting a state executive committee of a political party to establish a building fund account. KRS 121.172(8) requires a state executive committee to report all contributions to and expenditures from a building fund account to the Registry of Election Finance on a quarterly basis. KRS 121.180(2)(b) and (c) requires a state executive committee of a political party that has established a building fund account under KRS 121.172 to make full report to the Registry, to be received by the registry within five (5) days after the close of each calendar quarter. This administrative regulation establishes a single form for the reporting of finances by a state executive committee building fund account.

 

      Section 1. Any state executive committee of a political party that establishes a building fund account under KRS 121.172 shall file the report required by KRS 121.180 on the form incorporated by reference in this administrative regulation.

 

      Section 2. Incorporation by Reference. (1) The "State Executive Committee – Building Fund Election Finance Statement", reference KREF 006/E-BF, revised 09/2017, is incorporated by reference.

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the office of the Kentucky Registry of Election Finance, 140 Walnut Street, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.

 

CRAIG C. DILGER, Chairman

      APPROVED BY AGENCY: September 27, 2017

      FILED WITH LRC: September 29, 2017 at 11 a.m.

      CONTACT PERSON: EMILY DENNIS, General Counsel, Kentucky Registry of Election Finance, 140 Walnut Street, Frankfort, Kentucky 40601, phone (502) 573-2226, fax (502) 573-5622, email Emily.Dennis@ky.gov.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Emily Dennis

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This new administrative regulation – 32 KAR 1:045 - establishes a form for the reporting of the finances of a state executive committee building fund account in Kentucky. This administrative regulation is required by KRS 121.172(1) and (8), as established by 2017 Senate Bill 75, requiring a state executive committee of a political party to report all contributions to and expenditures from a building fund account to the Registry of Election Finance on a quarterly basis, under KRS 121.180(2)(b) and (c).

      (b) The necessity of this administrative regulation: KRS 121.120(1)(g) requires the Registry to promulgate administrative regulations to carry out the provisions of KRS Chapter 121. KRS 121.172(1) requires the Registry to promulgate administrative regulations to implement KRS 121.172 relative to the establishment of a state political party building fund account.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation specifically conforms to the provisions of KRS 121.120(1)(g), as it promulgates an administrative regulation to carry out the provisions of Chapter 121, and KRS 121.172(1), as it prescribes a form for the reporting of a state executive committee building fund account.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: The administrative regulation assists in the effective administration of the reporting requirements under KRS 121.172 and KRS 121.180 and specifically complies with the provisions of 2017 Senate Bill 75.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: Question does not apply, as this is a new administrative regulation.

      (b) The necessity of the amendment to this administrative regulation: Question does not apply, as this is a new administrative regulation.

      (c) How the amendment conforms to the content of the authorizing statutes: Question does not apply, as this is a new administrative regulation.

      (d) How the amendment will assist in the effective administration of the statutes: Question does not apply, as this is a new administrative regulation.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: All state executive committee of political parties that choose to establish a building fund account under KRS 121.172 will be affected by this administrative regulation.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: State executive committees of political parties that choose to establish a building fund account under KRS 121.172 shall report to the Registry on a quarterly basis all contributions to and expenditures from the building fund account as required by KRS 121.180.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): No cost will be incurred by regulated entities as a result of this amendment.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): The finance of a state executive committee building fund account will be disclosed to the public, in compliance with KRS Chapter 121 and required by 2017 Senate Bill 75.

      (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

      (a) Initially: Initial costs to administer the program are estimated to be less than $10,000.

      (b) On a continuing basis: Ordinary printing costs for forms are anticipated in the Registry’s budget, as well as ordinary programming costs for resulting database changes.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Registry budget funding will be used for implementation and enforcement.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: No increase in fees or funding will be necessary to implement this administrative regulation.

      (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: This administrative regulation establishes no fees either directly or indirectly.

      (9) TIERING: Is tiering applied? No, tiering is not applied because the provisions of this regulation apply equally to all state executive committees of political parties that choose to establish a building fund account.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? Commonwealth of Kentucky - General Government – Registry of Election Finance

      2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 121.120(1)(g), (4), KRS 121.172(1), (8), 121.180(2)(b), (c)

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? No revenue will be generated as a result of this administrative regulation.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? No revenue will be generated in subsequent years as a result of this administrative regulation.

      (c) How much will it cost to administer this program for the first year? Initial costs to administer this program are estimated to be less than $10,000.

      (d) How much will it cost to administer this program for subsequent years? No additional costs are anticipated in subsequent years.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-): None.

      Expenditures (+/-): + less than $10,000 in year 1

      Other Explanation: N/A