KRS Section(s) - KRS 6.797, KRS 6.807, KRS 6.821, KRS 6.827, KRS 6.829.
Each legislative agent and employer is also required to file an updated registration statement accompanied by any statement of expenditures required to be filed by KRS 6.821 and any details of financial transactions required to be filed by KRS 6.824. [KRS 6.807(3) and KRS 6.821(1)]
The employer who engages more than one legislative agent is required to file only one updated registration statement containing the information required regarding all legislative agents engaged by the employer. [KRS 6.807(4)]
When must the updated registration statements be filed? What is the reporting period?
The reporting periods and due dates are as follows:
|January 1 - 31
|February 1 - 28
|March 1 - 31
|April 1 - 30
|May 1 - August 31
|September 1 – December 31
For the purpose of assessing administrative penalties, the Commission considers updated registration statements timely if filed online, postmarked or faxed by the due date listed on the form. OLEC 94-5.
The Commission is permitted to grant a reasonable extension of time, for good cause shown, for filing the updated registration statement. (KRS 6.807) If you would like to fax your report, our fax number is (502) 573-2929. Please do not mail if you fax the form.
Who is required to file a statement of expenditures? With Whom?
- The legislative agent is required to file a separate statement of expenditures for each employer engaging him. (KRS 6.821)
- Any employer of one or more legislative agents is required to file a statement of expenditures. (KRS 6.821)
- The employer who is also registered as a legislative agent is only required to file an employer’s updated registration statement and is not required to file a separate legislative agent form.
What information is required in the statement of expenditures?
Legislative agents and employers are required to report expenditures for meals, beverages and cost of attendance at events, lodging, and other expenses for individual legislators and candidates, and their immediate family members by name of recipient, amount, description, and date and location of expenditure. For specific details of that information, see KRS 6.821(2). If it is impossible or impractical for a legislative agent or employer to determine exact dollar amounts or values of expenditures, reporting of good faith estimates, based upon reasonable accounting procedures, constitutes compliance with KRS 6.821(5). A copy of the statement of expenditures must be delivered to the official with whom or for whose benefit the transaction was made at least 10 days before the date on which the statement is filed with the Commission. [KRS 6.827(1)]
In addition to that information, a legislative agent is required to show the total amount of lobbying expenditures he/she made during the statement's reporting period including expenditures for events, if not reimbursed by the employer. He/she is also required to show the amounts he/she expended for informational, educational, or promotional items or activities, and other expenses directly associated with his/her lobbying activities if not reimbursed by the employer. KRS 6.821(3).
In addition to the general information required in KRS 6.821(2), an employer is required to list certain detailed information listed in KRS 6.821(4)(a), including the cost of advertising. No employer is required to show any expenditure that is reported on an expenditure statement filed by one of his/her legislative agents. [KRS 6.821(4)(b)]
Is an updated registration statement required to be filed if no money has been spent on lobbying during a particular reporting period?
Yes. However, the Commission allows a legislative agent who has expended no sums for lobbying activities during a reporting period and a legislative employer who has expended no sums for lobbying activities other than legislative agent compensation to file a "Short Form."
The legislative agent and employer must not have engaged in a financial transaction during the reporting period in order to file the "Short Form."
See Administrative Regulation 2 KAR 2:040 for detailed reporting requirements.
How long must legislative agents and employers retain and maintain records?
Legislative agents and employers are required to retain receipts or maintain records for all reportable expenditures until December 31 of the second calendar year after the year in which the expenditure was made.
What does the Commission do with expenditure statements?
The Commission reviews the statements for compliance; notifies persons regarding failure to file or deficiencies in filing; retains and computerizes the statements for easy public accessibility; and makes copies available to the public. See KRS 6.829.
What penalties apply to statements of expenditures?
During the 2000 Legislative Session, the Code of Ethics was amended to allow the Commission to levy administrative penalties without the filing of a formal complaint. This allows staff to monitor the filings of all statements required by the Code to ensure compliance with the filing deadlines. Failure to timely file required forms may result in the assessment of a monetary fine ranging anywhere from a minimum of $50 up to the statutory maximum of $1000 per occurrence.
Intentionally filing false information or omitting required information is a Class D felony. [KRS 6.821(8)]
Failure to file a required statement or to remedy any deficiency in a filing in a timely manner may result in a fine by the Commission not to exceed $100 per day, up to a maximum total fine of $1,000. [KRS 6.821(7)]
An employer or legislative agent who files a false statement of expenditures is liable in a civil action to any official or employee who sustains damage as a result of the filing or publication of the statement. [KRS 6.827(3)]
KRS 6.797(2)(a), 6.807(7), and 6.821(7) currently allow the Commission to levy administrative penalties for failing to file the required initial and updated registration statements in KRS 6.807 and KRS 6.821, and the statement of financial interests in KRS 6.797 without the necessity of a complaint, but only after notice has been given to the alleged violator to appear before the commission or otherwise offer evidence as he/she may choose in mitigation of the imposition of the fine.