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Request By:

Mr. Raymond E. Wallace
Executive Director
Kentucky Registry of Election Finance
1604 Louisville Road
Frankfort, KY 40601

Opinion

Opinion By: Frederic J. Cowan, Attorney General; John S. Gillig, Director, Criminal Appellate Division

You have asked this office to examine KRS 121.150(18) to determine whether this would in any way restrict the Registry's current policy of requiring corporate Political Action Committees (PACs) to reimburse, out of PAC funds, any expenditures made by the corporate hosts in administering the PAC.

As you point out in your letter, the General Assembly recently added the following subsection to KRS 121.150:

(18) Nothing in this section shall be construed to restrict the ability of a corporation to administer its permanent committee insofar as its actions can be deemed not to influence an election as prohibited by KRS 121.025.

Subsection (18) makes reference to KRS 121.025, which is a general, but also very explicit and forceful, limitation upon corporate support of candidates. KRS 121.025 states:

No corporation, and no officer or agent of a corporation on its behalf, shall contribute, either directly or indirectly, any money, service or other thing of value towards the nomination or election of any state, county, city or district officer, or pay, promise, loan or become liable in any way for any money or other valuable thing on behalf of any candidate for office at any election, primary or nominating convention held in this state. No attorney or other person shall accept employment and compensation from a corporation with the understanding or agreement, either direct or implied, that he will contribute to any such candidate, or on his behalf, any part or all of such compensation, towards the nomination or election of such candidate.

KRS 121.150(18) makes clear that the various provisions of subsections (1) to (17) do not bear upon or attempt to restrict the ability of a corporation to administer its permanent committee as long as its actions "can be deemed not to influence an election as prohibited by KRS 121.025." The Kentucky Registry of Election Finance has consistently maintained the position that corporate PACs are responsible for reimbursing and reporting the corporation's in-kind contributions such as office space, photocopying, telephone service, etc. In this way, there is a clear delineation between the activities of the PAC, which the corporation merely hosts at its business location, and the activities of the corporation itself.

This office agrees with the interpretation of the Registry of Election Finance that KRS 121.150(18) does not alter this traditional interpretation. There is a strong prohibition, found in Section 150 of the Kentucky Constitution, against corporate contributions "to influence the result of any election, " and this prohibition is echoed in Krs 121.025. In light of the Constitutional prohibition and the language of KRS 121.025, this office believes that the Registry's longstanding practice should be continued, and that the use of corporate facilities or other "things of value" by a sponsored PAC should be reimbursed to the corporation and reported to the Registry, if funds from that PAC are to be contributed to candidates in a Kentucky election.

Disclaimer:
The Sunshine Law Library is not exhaustive and may contain errors from source documents or the import process. Nothing on this website should be taken as legal advice. It is always best to consult with primary sources and appropriate counsel before taking any action.
Type:
Opinion
Lexis Citation:
1991 Ky. AG LEXIS 80
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