M.G.L. c. 55 is a comprehensive and specific statute which covers a variety of areas concerning the financing of political campaigns in the Commonwealth for state, county, city and town elections. It regulates the sources from, and manner in which, campaign funds may be raised and spent. It provides for the disclosure of all contributions received and expenditures made. The statute also regulates certain conduct surrounding the raising and spending of campaign funds, such as the activities of public employees.

970 CMR 2.00 is promulgated pursuant to M.G.L. c. 55, § 6 which is concerned with political expenditures. In accordance with the statute, 970 CMR 2.00 governs two different categories of political committees. Political committees which are established on behalf of candidates for statewide offices are governed by 970 CMR 2.05, and as such can only expend campaign funds for reasonable and necessary expenses directly related to the campaign of the candidate, as 970 CMR 2.05 provides. All ballot question committees, non-statewide candidate committees, people's committees, political action committees, party committees and any other political committees are governed by 970 CMR 2.06. As such, these political committees can only expend campaign funds for the enhancement of the political future of the candidate or principle for which the committee was organized, as 970 CMR 2.06 provides. Notwithstanding any of the above, M.G.L. c. 55, § 6 strictly prohibits any expenditure the purpose of which is primarily for a candidate's or any other person's personal use.

970 CMR 2.00 governs all expenditures by political committees organized for the purpose of participation in Massachusetts campaign finance activity.

Terms used in 970 CMR shall have the meanings provided in M.G.L. c. 55. In addition:

Ballot Question Committee means a political committee which receives or expends money or other things of value for the purpose of favoring or opposing the adoption or rejection of a specific question or questions submitted to the voters including, without limitation, a charter change, an initiative or referendum question or a constitutional amendment.

Candidate Committee means the political committee organized on behalf of a candidate in accordance with M.G.L. c. 55, § 5, and shall also apply to the campaign fund or account of a candidate who has not organized a candidate committee or who receives contributions or makes expenditures independently of such a committee where the fund or account is used or intended to be used to support the candidate's campaign or enhance the candidate's political future.

Constitutional Candidate Committee means the political committee organized on behalf of a candidate for governor, lieutenant governor, secretary of state, attorney general, treasurer and receiver general or auditor in accordance with M.G.L. c. 55, § 5.

Duly Organized means a political committee which has filed a Statement of Organization with the Office of Campaign and Political Finance or, if active solely for the purpose of a city or town election, with the city, town or district clerk or election commission.

Joint Fundraiser means an event sponsored by two or more candidates or political committees, pursuant to 970 C.M.R. 2.12, which is intended to raise funds, through the device of tickets, advertisements, or otherwise, to further the political future of the sponsoring candidates or political committees.

Local Election Official means any city, town or district clerk or board of election commissioners.

Membership Organization means any organization which identifies the individuals within the organization as members. Such organizations include, but are not limited to, clubs, unions and associations. Political committees and corporations or other entities subject to M.G.L. c. 55, § 8 are not "membership organizations."

Non-resident Fundraiser means an event sponsored by a candidate for public elected office in Massachusetts, within the scope of M.G.L. c. 55, § 18B, which is intended to raise funds for: any person seeking nomination or election to state or federal office, including President or Vice President, in:

(a) any state other than the commonwealth;

(b) the federal government; the District of Columbia, or any territory or possession of the United States.

Political Party Committee means a political committee organized in accordance with M.G.L. c. 52 on behalf of a political party, as defined in M.G.L. c. 55, § 1, whether elected or non-elected.

People's Committee means any political committee which is not a candidate's committee, political party committee, or ballot question committee, which:

(a) only receives contributions from individuals;

(b) limits contributions received from any individual to the aggregate of $100 (indexed biennially in accordance with M.G.L. c. 55, § 1) during a calendar year;

(c) has been in existence for at least six months;

(d) contributes to five or more candidates; and

(e) files a Declaration of Status Form (CPF Form 101 DS-1) with OCPF.

Political Action Committee means any political committee which is not a candidate's committee, political party committee, ballot question committee or people's committee.

Primarily for the Candidate's or any Other Person's Personal Use means an expenditure by the committee the purpose of which is primarily to benefit personally the candidate or any other person.

Reasonable and Necessary Expenses means those expenses which are not extreme or excessive and which are integral and central to the political campaign for that public office.

Residual Funds means any and all assets of the political committee which the committee has legal and rightful title to at the time of its dissolution, and any and all assets of a candidate's account at the time of its dissolution.

(1) Authority. 970 CMR 2.00 is promulgated under authority of M.G.L. c. 55, §§ 3 and 6.

(2) Amendments. 970 CMR 2.00 may be amended at any time, and such amendments shall take effect in accordance with M.G.L. c. 30A, § 6.

(1) Any person may request in writing an advisory opinion or guidance letter concerning the specific application of M.G.L. c. 55, or any regulation contained in 970 CMR.

(2) The written advisory opinion or guidance letter request shall describe a specific activity or transaction and shall pose specific questions. The request may be accompanied by such data, views and arguments as the requesting person deems pertinent.

(3) The Director shall review all requests for Advisory Opinions and guidance letters. He may request that additional or more specific information or questions be submitted by the requesting person.

The Director may determine that:

(a) a particular request for an advisory opinion or guidance letter poses issues which are not within his jurisdiction;

(b) the questions posed are not appropriate to an advisory opinion or guidance letter;

(c) sufficient information has not been provided by the requesting person.

The Director may, for these reasons, determine that an advisory opinion or guidance letter will not be rendered. If such a determination is made, he shall, within a reasonable time, notify the requesting person that the advisory opinion or guidance letter will not be rendered. If such a determination is not made the Director shall, within a reasonable time, issue to the requesting person a written advisory opinion or guidance letter.

(4) All advisory opinion or guidance letter requests and all advisory opinions and guidance letters shall be public records, under M.G.L. c. 4, § 7, and shall be subject to public inspection as required by M.G.L. c. 66, § 10. Other requests for guidance shall be confidential.

(5) The Director may, in his discretion, issue Interpretive Bulletins and Memoranda which concern matters of general application of M.G.L. c.55 and 970 CMR 2.00.

(1) Expenditures by constitutional candidate committees shall be governed by 970 CMR 2.05.

(2) Such constitutional candidate committees may pay and expend money or other things of value for reasonable and necessary expenses directly related to the campaign of the candidate on whose behalf the committee is organized, provided that such expenditures are not primarily for the candidate's or any other person's personal use, and subject to any other prohibitions and limitations contained in M.G.L. c. 55 and 970 CMR 2.00. The following expenditures, as well as any other expenditures which are similar to the following and not inconsistent with 970 CMR 2.00, M.G.L. c. 55 or any other law shall be permitted by political committees governed by this 970 CMR 2.05:

(a) Postage incurred for mailing campaign literature and for conducting relevant campaign business;

(b) Television and radio advertising;

(c) Newspaper, billboard and magazine advertising;

(d) Printing;

(e) Computer use, subject to the limitations set forth in 970 CMR 2.00;

(f) Polling voters;

(g) Reasonable public relations expenses, provided they meet the following requirements:

1. For a part-time or full-time campaign staff person or persons whose primary responsibilities are to function as a Public Relations Consultant, and relevant expenses;

2. For the hiring of a public relations firm or agency and relevant expenses.

(h) Reasonable and necessary expenses in connection with the operation of a campaign office or offices, including:

1. Telephones, the use of which is restricted to campaign purposes except for an incidental activity;

2. Furniture, the nature and use of which is consistent with appropriate activity in a campaign office;

3. Office rent, provided that a political committee which is paying less than the fair market value of the space it rents is receiving a contribution in-kind from the landlord or owner of this office space. Such a contribution in-kind is subject to all the provisions of M.G.L. c. 55 regarding disclosure, limitations and prohibitions on contributions;

4. Office equipment, including typewriters, postage meters and copying machines;

5. Utilities.

(i) Campaign staff and consultants. Such individuals may be compensated in a reasonable manner solely for work actually done for that political committee;

(j) The reasonable traveling expenses for the candidate, speakers, and other agents of the committee, which may include the leasing of a car for campaign related travel, subject to the following:

1. Expenses are relative to a political activity or function, the direct purpose of which is to solicit votes or contributions;

2. All activities held and expenses incurred under 970 CMR 2.05(2)(j) must be within the Commonwealth of Massachusetts.

(k) Reasonable traveling expenses for a candidate in connection with conferences or seminars which are;

1. Specifically designed for candidates for public office or those holding public office; and

2. Sponsored by associations or organizations whose memberships consist primarily of candidates for public office or those holding public office.

(l) Reasonable travel and related expenditures for a candidate and agents of a political committee in connection with meetings, conferences or conventions, provided that the issues with which any such meeting, conference or convention is concerned are within the scope of that person's direct and substantial responsibilities as a candidate or agent of the committee, and whose subject matter is related to at least one of the following:

1. party politics;

2. campaigning for votes;

3. fundraising;

4. substantive issues which are directly related to the campaign of the candidate.

(m) Reasonable travel and related expenses for a candidate and agents of a political committee in connection with obtaining services for which the political committee is permitted to make expenditures under 970 CMR 2.00;

(n) Rental of halls and other space for political activities;

(o) Expenses for fundraising, for obtaining votes and for other similar activities, which may include beverages, food, entertainment, decorations, bartenders, security officers and service and maintenance persons;

(p) Bumper stickers, signs, placards, brochures, leaflets and other such campaign items;

(q) Delivery services, express mail, telegraph services;

(r) Paper supplies;

(s) Newspaper and magazines, literature, clipping services;

(t) Inaugural expenses, which may include room rental, printing, decorations, entertainment, food and beverages;

(u) The repayment of loans, if such loans:

1. were received by the political committee in accordance with the requirements of 970 CMR 1.00 and M.G.L. c. 55;

2. were used to defray expenditures permitted by 970 CMR 2.00; and

3. did not exceed the maximum amounts set forth in 970 CMR 1.05(2).

(v) Taxes;

(w) Charitable contributions, if the expenditure is clearly made from funds of the political committee other than those funds received as public financing pursuant to M.G.L. c. 55C, and if all of the following requirements are met:

1. The contribution is made to an entity which is subject to either M.G.L. c. 12, § 8(f), M.G.L. c. 67 or M.G.L. c. 180;

2. Neither the candidate, treasurer, or any official of the political committee is a trustee, officer, principal or beneficiary or involved in any manner in the operations of said entity;

3. Neither the candidate, treasurer, nor any official of the political committee is related by consanguinity of affinity to any trustee, officer, principal, or beneficiary of said entity;

4. Making such charitable contributions is a usual and customary practice of that political committee;

5. The candidate or political committee will receive publicity and foster political goodwill towards the particular campaign during which the contribution is made as a result of making the contribution.

(3) Any candidate or political committee subject to 970 CMR 2.05 may request an advisory opinion, under 970 CMR 2.04, to determine the permissibility of any other expenditure under 970 CMR 2.05.

(4) Prohibitions.

(a) Personal Use. Notwithstanding any of the above, no such political committee may make any expenditure that is primarily for the candidate's or any other person's personal use. Expenditures prohibited under 970 CMR 2.05(4)(a) shall include, but not be limited to, the following:

1. The payment of fines, penalties, restitution or damages incurred for a violation of M.G.L. c. 268A or 268B. This prohibition shall not apply, however, to payments made in relation to allegations of violations of such chapters of the General Laws.

2. Any expenditure which acknowledges any guilt as to the violation of any law, except for expenditures to pay for parking tickets issued to candidates or agents of political committees who receive tickets while undertaking travel for the candidate or committee.

3. Any expenses relative to alleged violations of law, other than those which have arisen solely as a function of an individual assuming and performing necessary duties and responsibilities as an incumbent office holder, candidate or treasurer of a political committee. However, under no circumstances may funds of a political committee be used for any such expenses incurred after conviction of the incumbent office holder, candidate or treasurer has incurred.

4. Any expenses relative to civil suits or administrative proceedings, except that this prohibition shall not apply to:

a. expenses which have arisen solely as a result of one's interest in being a candidate for public office, such as expenses involved in proceedings before the State Ballot Law Commission;

b. expenses relative to certain civil suits where an individual's alleged liability stems solely from that person's legal performance of his duties as an incumbent office holder, candidate, treasurer or other agent of a political committee; and

c. expenses relative to necessary legal action to protect or further the interests of the political committee.

5. Normal clothing attire which is usual to the ordinary course of everyday living. 970 CMR 2.05(4) shall not apply to:

a. clothing items such as tuxedos or gowns rented or purchased by a candidate for his use exclusively at political or governmental functions;

b. novelty clothing items and costumes which are worn primarily to advertise one's candidacy; and

c. clothing items rented by a candidate for his use exclusively for a particular political function, which is different than that ordinarily purchased by individuals.

(b) No political committee subject to 970 CMR 2.05 may receive, pay or expend money or anything of value unless such transaction is a reasonable and necessary expense directly related to the campaign of a candidate on whose behalf the committee is organized. Expenditures prohibited under 970 CMR 2.05(4)(b) shall include, but not be limited to the following:

1. Gifts. This prohibition shall not apply to gifts to campaign workers if:

a. the gift accurately reflects the contribution made by those workers to the efforts of the political campaign of the committee; and

b. the gift is made in a timely fashion as to clearly indicate its purpose is to express gratitude for work done on behalf of the campaign; and

c. no gifts may be made to campaign workers for any other purpose or for any other occasion.

An expenditure for a gift not prohibited under 970 CMR 2.05(4) is only permitted to the extent that the expenditure is clearly made from funds of the political committee other than those funds received as public financing pursuant to M.G.L. c. 55C.

2. Flowers. This prohibition shall not apply to flowers sent on behalf of the candidate and political committee where:

a. the candidate or treasurer has no personal relationship with the individual or his or her family receiving the flowers; and

b. sending flowers is appropriate to the occasion; and

c. the flowers would not be sent but for the existence of an important political relationship between the candidate or political committee and the individual who is being honored or memorialized with the sending of the flowers.

An expenditure for flowers not prohibited under 970 CMR 2.05(4) is only permitted to the extent that the expenditure is clearly made from funds of the political committee other than those funds received as public financing pursuant to M.G.L. c. 55C.

3. Memberships in any organizations and associations, except that this prohibition shall not apply to memberships for the candidate in organizations which are specifically designed for political candidates;

4. Expenses for room and board expenses and delegate fees for any delegates to state or national political party conventions, other than such expenses solely for the candidate on whose behalf the political committee making the expenditure is organized.

(c) No such political committee may contribute any money or any thing of value to any other political committee or to the campaign fund of any other candidate provided that such political committee may contribute to a political party committee if:

1. the aggregate of all contributions to any one political party committee shall not exceed the sum of $100 per calendar year; and

2. the aggregate of all such contributions to all political party committees shall not exceed the sum of $1,500 per calendar year.

Expenditures by Candidates Receiving Public Financing. No candidate or committee which has been certified by the director to receive public financing pursuant to M.G.L. c. 55C may make a contribution to a candidate seeking nomination or election in any jurisdiction not subject to the Massachusetts campaign finance law or to an independent expenditure PAC from the date of such certification until the date any required surplus funds are to be paid to the State Treasurer.

(1) Expenditures by all other political committees not governed by 970 CMR 2.05 shall be governed by 970 CMR 2.06.

(2) Such political committees may pay and expend money or other things of value for the enhancement of the political future of the candidate or principle for which the committee was organized, and subject to any other prohibitions and limitations contained in M.G.L. c. 55 and 970 CMR 2.00.

(3) Expenditures which may be made for the enhancement of the political future of the candidate or principle for which that political committee was organized shall include those categories listed in 970 CMR 2.05(2)(a) through (v). In addition, the following expenditures, as well as any expenditures which are similar to the following and not inconsistent with 970 CMR 2.00, M.G.L. c. 55 or any other law shall be permitted by political committees governed by 970 CMR 2.06:

(a) Charitable contributions, if all of the following requirements are met:

1. The contribution is made to an entity which is subject to either M.G.L. c. 12, § 8(f), M.G.L. c. 67 or M.G.L. c. 180;

2. Neither the candidate, treasurer, or any official of the political committee is a trustee, officer, principal or beneficiary or involved in any manner in the operations of said entity;

3. Neither the candidate, treasurer, nor any official of the political committee is related by consanguinity or affinity to any trustee, officer, principal or beneficiary of said entity;

4. Making such charitable contributions is a usual and customary practice of that political committee;

5. The candidate or political committee will receive publicity and foster political goodwill as a result of making the contribution.

(b) Gifts and Flowers, of reasonable value, if the purpose of the expenditure falls within one of the following categories:

1. Gifts to campaign workers, if:

a. The gift accurately reflects the contribution made by those workers to the efforts of the political campaign of the committee; and

b. the gift is made in a timely fashion as to clearly indicate its purpose is to express gratitude for work done on behalf of the campaign; and

c. no gifts may be made to campaign workers for any other purpose or for any other occasion.

2. The political committee or candidate will receive publicity and foster political goodwill as a result of making the gift or contribution, if:

a. The candidate, treasurer, or other officers of the committee, and in the case of a local party committee, the members of the committee, have no personal relationship with the individual or his or her family; and

b. the gift is appropriate to the occasion which has prompted the gift; and

c. making such a gift is a usual and customary practice of the political committee; and

d. the gift would not be made but for the interest in it enhancing the political future of the candidate or principle for which the committee was organized.

3. No gifts may be made under 970 CMR 2.06(3)(b)1. or 2. unless all the provisions of each subdivision are satisfied.

(c) Memberships for the candidate in organizations and associations, provided that the candidate would not be participating in the particular organization or association but for the candidate's interest in it enhancing the candidate's political stature. This shall not be construed to permit the payment of memberships in professional organizations other than those specifically designed for political candidates;

(d) Reasonable travel expenses for a candidate in connection with functions or activities where the candidate's participation is important to political relations with the candidate's constituents or contributors, if the primary interest in participating in the event is the enhancement of the political future of the candidate;

(e) Reasonable travel expenses for officers and employees of elected political committees, if the following requirements are met;

1. The expenses are in connection with functions or activities where the individual's participation is critical to political relations with contributors or members of the political party which the political committee represents;

2. The individual's primary interest in participating in the event or undertaking the activity is to enhance the political future of the elected political committee which he or she represents.

(f) Reasonable travel expenses of the treasurer and chairperson of a non-elected political committee, if the following requirements are met:

1. The non-elected political committee is organized to:

a. promote or defeat the election of more than one candidate; or

b. oppose or promote a charter change, referendum question, constitutional amendment or other question submitted to the voters.

2. The expenses are in connection with functions or activities where the individual's participation is critical to political relations with constituents or contributors to the political committee;

3. The primary interest in participating in the event is to enhance the political future of the committee of which he or she is treasurer or chairperson.

(4) Any candidate or political committee subject to 970 CMR 2.06 may request an advisory opinion, pursuant to 970 CMR 2.04, to determine the permissibility of any other expenditure under 970 CMR 2.06.

(5) Such political committee may contribute to other political committees and to other candidates subject to the following limitations:

(a) The contributions by a candidate committee to another candidate committee shall not exceed $100 per calendar year;

(b) the aggregate of all such contributions by a candidate committee to all other candidate committees shall not exceed the sum of $1,500 per calendar year.

(6) Prohibitions.

(a) Personal Use. Notwithstanding any of the above, no such political committee may make an expenditure that is primarily for the candidate's or any other person's personal use. Expenditures prohibited under 970 CMR 2.06(6) shall include, but are not limited to, the following:

1. The payment of fines, penalties, restitution or damages incurred for a violation of M.G.L. c. 268A or 268B. This prohibition shall not apply, however, to payments made in relation to allegations of violations of such chapters of the General Laws;

2. Any expenditure which acknowledges any guilt as to the violation of any law, except for expenditures to pay for parking tickets issued to candidates or agents of political committees who receive tickets while undertaking travel for the candidate or committee.

3. Any expenses relative to alleged violations of law, other than those which have arisen solely as a function of an individual assuming and performing necessary duties and responsibilities as an incumbent office holder, candidate or treasurer of a political committee. However, under no circumstances may funds of a political committee be used for any such expenses incurred after conviction of the incumbent office holder, candidate or treasurer has occurred;

4. Any expenses relative to civil suits or administrative proceedings, except that this prohibition shall not apply to:

a. expenses which have arisen solely as a result of one's interest in being a candidate for public office, such as expenses involved in proceedings before the State Ballot Law Commission;

b. expenses relative to certain civil suits where an individual's alleged liability stems solely from that person's legal performance of his duties as an incumbent office holder, candidate, treasurer or other agent of a political committee; and

c. expenses relative to necessary legal action to protect or further the interests of the political committee;

5. Normal clothing attire which is usual to the ordinary course of everyday living. 970 CMR 2.06(6)(a)5. shall not apply to:

a. clothing items such as tuxedos or gowns rented or purchased by a candidate for his use exclusively at political or governmental functions;

b. novelty clothing items and costumes which are worn primarily to advertise one's candidacy; and

c. clothing items rented by a candidate for his use exclusively for a particular function, which is different than that ordinarily purchased by individuals.

(b) No political committee subject to 970 CMR 2.06 may pay or expend money or any thing of value unless such transaction will enhance the political future of the candidate or principle on whose behalf the committee was organized. Expenditures prohibited under 970 CMR 2.06(6)(b) shall include, but not be limited to the following:

1. Expenditures for room and board expenses, and delegate fees, for any delegate to a state or national political party convention, including any delegate who is also an agent or officer of a political committee organized on behalf of a candidate, unless such expenditures are for:

a. The candidate on whose behalf the political committee making the expenditure was organized;

b. The delegates representing a ward, city or town political party committee and the expenditures for each such delegate are paid by the committee in an equal manner; or

c. The delegates who represent the principle for which a political action committee or people's committee was organized and the expenditures for each such delegate are paid by the committee in an equal manner.

(7) A debit card linked to the bank account of any candidate or committee not required to appoint a depository in accordance with M.G.L. c. 55, § 19 may be used to make an expenditure consistent with M.G.L. c. 55, § 6 and 970 CMR 2.06. Such candidates and committees may also make online and other electronic expenditures linked to such account provided that the bank statement for the account provides sufficient information to document the name and address of the vendor/payee for any debit card transaction or online payment. Like all other expenditures made by such candidates or committees, debit card and electronic expenditures shall be reported in accordance with M.G.L. c. 55, § 18, and records of electronic and debit card expenditures shall be maintained pursuant to M.G.L. c. 55, §§ 2 and 5 and 970 CMR 1.10. An electronic transaction or a transaction using a debit card shall be considered a transaction by check for purposes of M.G.L. c. 55, § 9, but shall not be considered a special check required by M.G.L. c. 55, § 7 for candidates required to designate a depository in accordance with M.G.L. c. 55, § 19. A debit card may not be used to obtain cash.

(1) Any expenditure made by a political action committee or a people's committee for the benefit of a clearly identified candidate must be disclosed as a contribution or contribution in-kind received by that candidate or his or her political committee. This requirement shall not apply to an expenditure which is made by such a political action committee or a people s committee without the cooperation or prior consent of, or without any consultation with the candidate or any authorized agent of his or her political committee.

(2) Items acquired by a political committee must be primarily used by such political committee for the purposes permitted by 970 CMR 2.00. Under no circumstances may the use of an item in a manner other than that permitted by 970 CMR 2.00 be more than incidental to the overall use of the item. A political committee must be reimbursed for any such incidental use of an item. Reimbursement shall be made:

(a) By the person or persons to whose benefit that incidental use is attributable;

(b) By check payable to the political committee for the reasonable fair market value of that portion of the item s use for which the political committee is not benefiting.

(3) The use of anything of value by a political committee, other than of those things which are owned by the political committee or for which the political committee has paid the fair market value for the use thereof, shall constitute a contribution in-kind to that political committee by the person or entity which has ownership of the thing of value. Such contributions in-kind are subject to all limitation and disclosure requirements of M.G.L. c. 55. 970 CMR 2.07(3) shall include, but not be limited to, the use of:

(a) office equipment;

(b) function rooms;

(c) equipment;

(d) transportation vehicles.

Notwithstanding the above, 970 CMR 2.07(3) shall not apply to the use of space provided free of charge or at less than a fair market value to a political committee when it is a usual and customary practice for the owner to provide such space in such a manner to the general public.

(4) No individual, candidate, political committee or person acting on behalf of such individual, candidate or political committee shall make an expenditure for an amount exceeding $50 except by check, other than as provided for in M.GLc. 55, § 9 and 970 CMR 2.09.

(5) A political committee may invest its funds only in the following:

(a) savings accounts, which shall include any interest bearing account or deposit in a bank or savings institution;

(b) money market instruments, or in any fund which invests primarily in money market instruments, if such instruments are short term and may include the following:

1. United States Government Obligations: Debt Securities issued by the United States Treasury or by an agency or instrumentality of the United States Government;

2. Certificates of Deposit: Negotiable certificates issued by a savings bank and commercial bank which earn specified rates of interest over given periods;

3. Banker's Acceptances: Negotiable obligations of a bank to pay a draft which has been drawn on it;

4. Commercial Paper: Short-term promissory notes of large corporations with high commercial paper ratings;

5. Repurchase Agreements: The purchase of securities with the condition that the securities will be sold back to the original owner at the end of a specified term for a negotiated rate of interest which yields a higher price, provided however, that such repurchase agreements are limited to member banks of the Federal Reserve System or primary dealers in United States Government Securities.

(c) All investments authorized under 970 CMR 2.07(5) shall be made in the exercise of the judgment and care consistent with the prudent man rule, so-called.

(6) In the event of the dissolution of a political committee, any residual funds, which shall include all funds received as the result of the disposition of the assets of the political committee as provided in 970 CMR 2.08, must be donated in accordance with the provisions of the residual funds clause of M.G.L. c. 55, § 18. In accordance with the residual funds clause, residual funds may be donated to the General Fund of the Commonwealth, or to the entities specified in parts (ii) through (iv) of the clause.

(7) The disposition of residual funds, as provided in 970 CMR 2.07(7), shall apply to all assets of a political committee organized on behalf of a candidate at the time of the death of said candidate, other than those funds which are necessary to pay the following expenses:

(a) Obligations incurred by the committee prior to the candidate's death, provided that such expenditures are permitted by 970 CMR 2.05 and 970 CMR 2.06;

(b) Costs clearly associated with administering the termination of the committee;

(c) Obligations to employees which would be reasonable and payable as a usual and customary business practice;

(d) Federal and state taxes, such as employee taxes and interest income taxes.

(8) Identification Numbers. The director shall assign each candidate and political committee registered with this office a unique identification number.

(a) Each political committee shall include, on any statement, affidavit or report filed with the director:

1. the political committee's identification number, and

2. the identification number of any political action committee or people's committee from which it receives or to which it makes a contribution or transfer of funds.

(b) All political action committees and people's committees shall have the committee's identification number printed on all committee checks.

(9) A person nominated by the governor for a position that requires confirmation by the executive council, if confirmed prior to January 1, 2010, is not required to dissolve any political committee organized on behalf of such person in accordance with M.G.L. c. 55, § 18.

(10) In accordance with M.G.L. c. 55, § 5, a candidate who does not have a committee organized on the candidate's behalf may not sign campaign checks payable to himself or herself. A candidate without a committee must authorize another person to sign checks on the candidate's behalf if the candidate is to be reimbursed for any campaign expenditures.

(11) Political committees, when filing statements of organization in accordance with M.G.L. c. 55, § 5, shall include the email address (if any) of the principal officers of the committee, and of the candidate, if the committee is organized on behalf of a candidate.

(1) For the purposes of 970 CMR 2.08, "assets" shall mean any one item that has a useful life of more than one year, would be depreciable in a normal business environment, and has a cost or value of $1,000 or more at the time of its acquisition.

(2) Each political committee shall disclose the disposition of its assets. A Disclosure of Assets Statement, as prescribed by the director, shall be filed with the director, or with a local election official, if applicable, with the campaign finance report due January 20th of any year in which an asset has been disposed of and upon the filing of any dissolution report.

(3) A Disclosure of Assets Statement filed by a political committee which has not filed such form in a prior year shall contain the information required by the form for all assets of the political committee.

(4) A Disclosure of Assets Statement filed by a political committee which has filed such form in a prior year shall contain the information required by the form for all assets acquired by the committee, or disposed of by the committee, during the period since the end of the period covered by the last Disclosure of Assets Statement filed.

(5) All assets of a political committee must remain the property of that political committee and may not accrue to the personal benefit of a candidate or any other person.

(6) Assets of a political committee may only be disposed of in a manner which conforms to the provisions of M.G.L. c. 55.

(1) Definitions. For the purposes of 970 CMR 2.09, the following words have the following meanings:

Credit Card shall mean a card or plate issued by a bank or other credit institution for the purpose of obtaining goods or services on credit.

Credit Card Statement shall mean the statement prepared periodically by the lending institution which has issued the credit card, which discloses all activity relative to the credit card during a given period.

(2) A political committee may apply for and receive a credit card for the purpose of making expenditures, which are permitted by and subject to all provisions of 970 CMR 2.00. Alternatively, a candidate may personally apply for a credit card to be dedicated in its entirety for use solely by that candidate's political committee, subject to the following:

(a) The committee makes all payments directly to the credit card company;

(b) The credit card bears the name of the committee on its face, or if the financial institution issuing the card will not allow the committee's name to be placed on the card, the candidate obtaining the card agrees with the committee, in writing, that the card will be maintained and used exclusively by the committee and that the committee will comply with the requirements of 970 CMR 2.09; and

(c) Only the candidate or the candidate committee may provide collateral or funds to guaranty payment for purposes of obtaining the credit card.

(3) Any application for a credit card to be maintained and used by a political committee must be considered and processed by the bank or other lending institution in accordance with applicable banking laws and in the ordinary course of business. This means that the determination of the credit worthiness of the committee applicant or candidate must be subject to the same criteria as other similar applicants in a like financial position.

(4) Any extension of credit, and the terms of the credit, must be commercially reasonable.

(5) Any credit card maintained and used by a political committee must, except as provided in 970 CMR 2.09(2)(b), bear the name of the political committee on the face of the card. The card may also bear the name of the candidate, treasurer or other agent of the political committee, who has been authorized as a card holder by the political committee.

(6) Any individual guarantees which are provided to the lending institution considering a credit card application, whether voluntarily or at the request of the lending institution, are subject to all contribution limitations of M.G.L. c. 55. Therefore, no individual, other than the candidate, may be a guarantor on a credit card for any amount which, together with all other contributions by that individual to that political committee, results in a contribution in excess of the amount permitted by statute.

(7) A political committee may not use a credit card for the purpose of obtaining any cash advance or loan of money. Such credit cards may only be used for the purpose of obtaining goods and services.

(8) Any political committee which maintains and uses a credit card shall file reports disclosing all campaign finance activity. Such reports shall be filed as follows:

(a) For all candidates and political committees required to designate a depository account under M.G.L. c. 55, § 19, on or before the 15^th day of each month covering the entire statement period of the most recent credit card statement received prior to the date of filing.

(b) For city or town ballot question committees, the credit card disclosure must be filed on the same schedule and accompany the campaign finance reports required to be filed on or before the eighth day preceding a city or town preliminary or primary, the eighth day preceding a city or town election, and if a city election, the 20^th day of January in the following year complete as to the 31^st day of December of the prior year, and if a town election, the 30^th day following said election. All such reports shall be complete as of the final day of the most recent credit card statement received prior to the date of filing.

(c) For all other political committees and candidates relative to city or town elections, the credit card disclosure shall accompany the campaign finance report required to be filed the eighth day preceding the primary; the eighth day preceding the election; in a town election the 30^th day following said election; and the 20^th day of January. All such reports shall be complete as of the most recent credit card statement received prior to the date of the filing.

(d) For state ballot question committees the credit card disclosure must be filed on the same schedule and accompany the campaign finance reports required to be filed the 60^th day prior to the election, the subsequent campaign finance reports required to be filed on the 20^th day of each month until the election; the campaign finance reports (if any) required to be filed the fifth day of each month thereafter and the campaign finance reports required on or before the 20^th of January. All such reports shall be complete as of the final day of the most recent credit card statement received prior to the date of the filing.

(e) For all other candidates and political committees, the credit card disclosure shall accompany the campaign finance report required to be filed on or before the eighth day preceding the primary; on or before the eighth day preceding the election and on or before the 20^th day of January. All such reports shall be complete as of the final day of the most recent credit card statement received prior to the date of the filing.

(f) A separate report shall be filed for each credit card account of the political committee.

(g) For the purposes of 970 CMR 2.09, the date of each expenditure made with a credit card shall be the transaction date shown on the credit card statement.

(1) The provisions of 970 CMR 2.10 shall apply to all expenditures made by a political committee for the purpose of reimbursing a candidate or any other individual.

(2) A candidate or other individual may be reimbursed for expenses paid out by that individual or candidate if:

(a) The expenditures made by said individual or candidate, for which he or she is being reimbursed, is permitted by, and entirely consistent with, M.G.L. c. 55 and 970 CMR; and

(b) The individual or candidate receiving such reimbursement has made the expenditure out of his or her own personal funds and is the true source of those funds;

(c) The individual or candidate has not been reimbursed for said expenditure, by any other individual or entity; and

(d) The reimbursement is made promptly. If a committee does not reimburse an individual for goods or services purchased by that individual for the committee within 30 days of the purchase, the committee should consider the individual's expenditure as an in-kind contribution or a loan.

(3) A candidate or individual which has been reimbursed by a political committee, under 970 CMR 2.10 may not be reimbursed, at any time, for said expense by any other individual or entity.

(4) A political committee may not make an expenditure where the expenditure has already been paid directly or indirectly, by the candidate, other individual or any other entity, other than in accordance with 970 CMR 2.10.

(5) Any reimbursement to the candidate or any other individual may not result in any payment of funds greater than the amount expended by the candidate or individual.

(6) A political committee which is not required to designate a depository in accordance with M.G.L. c. 55, § 19, which reimburses any person more than $50 in any reporting period shall disclose such reimbursement on a form provided by the director. The form shall be filed with the campaign finance report prepared for the period during which the reimbursement is made and shall itemize, for each such expenditure, the date and amount of the expenditure, the name and address of the vendor, the purpose of the expenditure, the amount of the expenditure, the name of the person being reimbursed, and the date and amount of the reimbursement.

(7) Candidates and political committees required to designate a depository by M.G.L. c. 55, § 19 may not make reimbursements in excess of $50 except as specified by M.G.L. c. 55, §§ 9 and 19(c). Such candidates and committees, however, which reimburse any person more than $50 shall disclose such reimbursement, on a form provided by the director, within 30 days of making the expenditure and shall itemize, for each such expenditure, the date and amount of the expenditure, the name and address of the vendor, the purpose of the expenditure, the amount of the expenditure, the name of the person being reimbursed, and the date and amount of the reimbursement.

(8) Any reimbursement that is not documented as required by 970 CMR 2.10(6) or (7) creates a presumption that the expenditure was made for the personal use of the person receiving the funds. The presumption may be rebutted if a committee files the required disclosure with OCPF and submits sufficient evidence demonstrating that the expenditure was made for purposes consistent with M.G.L. c. 55, § 6.

Two or more Massachusetts candidate committees or political party committees may jointly make expenditures including but not necessarily limited to expenditures for a joint fundraising event in accordance with 970 CMR 2.12, or the purchase of campaign materials, media services or political flyers for a joint campaign event. The expenditures defined in 970 CMR 2.11, as well as any expenditure which is similar to the following and not inconsistent with M.G.L. c. 55 and 970 CMR, shall be permitted:

(1) Definitions. For the purposes of 970 CMR 2.11, the following phrases shall have the following meanings:

Campaign Material means any materials used in political campaigns including, but not limited to, buttons, bumper stickers, signs, balloons, hats, or T-shirts.

Media Services means a media service including, but not limited to, advertisements or announcements in newspapers, radio, broadcast or cable television, video, or billboards.

Political Flyer means any written material used in political campaigns including, but not limited to, a flyer, pamphlet, booklet, brochure, or slate card prepared by a candidate or political committee.

(2) Primary Purpose of Expenditure. An expenditure by a candidate committee or political party committee for the purpose of making a joint expenditure with another candidate or political party committee is permitted only if the primary purpose of the expenditure is the promotion of the nomination or election of the candidate whose committee makes the expenditure, or the promotion of the political party for which the committee was organized.

(3) Resulting Contribution. An expenditure by any political committee made in connection with another political committee which is not expressly authorized by 970 CMR 2.11 or does not comply with the requirements of 970 CMR 2.11, shall be considered a contribution as defined by M.G.L. c. 55, § 1 from the committee making the expenditure to the other committee(s) involved in and benefitting from the expenditure, and will be subject to the contribution limitations of M.G.L. c. 55, §§ 6, 6A and 6B.

(4) Cost Allocation. Costs incurred pursuant to 970 CMR 2.11 shall be allocated between the participating committees according to the benefit reasonably expected to be derived by each committee based upon factors that include, but are not limited to, the amount of print space, airtime, consultant or staff time, or office space allocated to each committee, or the comparative benefit or use of goods or services received by each committee. The relative prominence or popularity of the participating candidates are not appropriate factors to consider when allocating costs for joint expenditures.

(5) Distribution of Joint Campaign Materials. Candidate committees or political party committees making expenditures to purchase joint campaign materials shall distribute such materials in a manner which benefits each candidate or committee.

(6) Reporting.

(a) Each candidate or committee making joint expenditures must disclose the expenditures to the director, or with the local election official, if applicable, in campaign finance reports as required by M.G.L. c. 55, §§ 18 and 19. Each participating candidate or committee's report must identify the other candidate(s) or committee(s) participating in the joint expenditure.

(b) Reports shall be filed according to the schedule provided in M.G.L. c. 55, §§ 18 and 19.

(7) Maintenance of Records. Each candidate committee or political party committee making joint expenditures must maintain complete records, consistent with M.G.L. c. 55, §§ 2 and 5, reflecting all expenditures made.

(8) Exemptions for Certain Committees. Through the 30^th day after the relevant general election, 970 CMR 2.11(2) and 2.11(4) shall not apply to joint expenditures by committees organized to promote candidates for Governor and Lieutenant Governor once they are deemed to be running as a ticket in the general election if the primary purpose of the expenditure is the promotion of the election of the candidates" ticket. For the purposes of 970 CMR 2.11(8), the following candidates are deemed to be running as a ticket in the general election:

(a) party candidates who have been nominated at a primary election; or

(b) designation and unenrolled candidates who have been jointly nominated pursuant to M.G.L. c. 53.

(9) Joint Campaign Events. Two or more Massachusetts candidate committees or political party committees may sponsor a joint campaign event if they allocate costs according to the benefit reasonably expected to be derived by each committee, they each pay vendors directly, and they each have contributors write checks directly to sponsoring committees. If a joint campaign event is held in this manner, the provisions of 970 CMR 2.12(2) and 2.12(3) are not applicable. Each candidate or committee sponsoring a joint campaign event must maintain complete records, consistent with M.G.L. c. 55, § § 2 and 5, regarding the event.

(1) Massachusetts candidates and political party committees may jointly sponsor fundraising events as provided in 970 CMR 2.12.

(a) One or more state or local committees of a political party may sponsor a joint fundraising event with one or more candidates or candidate committees.

(b) One or more candidates or candidate committees may sponsor a joint fundraising event with other candidates or candidate committees.

(c) One or more political party committees may sponsor a joint fundraising event with other political party committees.

(d) Committees sponsoring a joint fundraising event, must designate an individual to be a "joint fundraising agent" to make expenditures, accept contributions, allocate proceeds and maintain records in accordance with 970 CMR 2.12.

(e) All funds received by a joint fundraising agent must be deposited in a separate, segregated account designated for that purpose.

(f) Political action committees and people's committees may not sponsor joint fundraising events with any candidate or committee.

(g) Ballot question committees may not sponsor joint fundraising events with candidates or candidate committees.

(2) Expenditures incurred and contributions received by candidates and committees sponsoring joint fundraising events are subject to the following restrictions.

(a) Primary Purpose of Expenditure.

1. An expenditure by a sponsoring committee in connection with a fundraising event is permitted only if the primary purpose of the expenditure is the enhancement of the political future of the candidate or the enhancement of the political party for which the committee was organized.

2. An expenditure by a sponsoring committee in connection with a joint fundraiser which does not comply with the requirements of 970 CMR 2.12(2)(a)1., shall be considered a contribution as defined by M.G.L. c. 55, § 1 from the committee making the expenditure to the committee benefiting from the expenditure and will be subject to the contribution limitations of M.G.L. c. 55, § 6.

(b) Allocation of Expenditures and Liabilities.

1. Funding of Joint Fundraising Agent. To the extent the committees sponsoring an event provide funds to a joint fundraising agent to allow the joint fundraising agent to make expenditures in connection with the event, each participating committee must provide funds and incur liabilities equally.

2. Expenditures by Joint Fundraising Agent. A joint fundraising agent may make expenditures only to defray the costs of a joint fundraising event. Such expenditures may be made from funds provided by sponsoring committees or from proceeds received from contributors.

(c) Attribution and Distribution of Contributions. Contributions received at or in connection with a joint fundraising event must be "attributed" to each participating committee in accordance with one of the alternatives defined in 970 CMR 2.12(2)(c). Attribution is based on gross proceeds received, i.e., no deduction is made to reflect expenditures by a joint fundraising agent. After attribution, net proceeds must be distributed, in accordance with 970 CMR 2.12(2)(c), to each participating committee.

1. Pro Rata Attribution and Distribution. Unless participating committees agree otherwise, and such agreement complies with 970 CMR 2.12(2)(c)2. or 3., contributions will be attributed equally to each participating committee and each committee will receive equal shares of net proceeds. Prior to purchasing a ticket or making a contribution, contributors must be informed that contributions are understood to be made to each participating committee in equal shares.

a. Attribution. Each contributor shall be understood to be a contributor to each participating committee, and the pro rata portion of an individual's contribution, shall be attributed to each participating committee. For example, if a person contributes $60, and three candidate committees participate in an event, $20 is attributed to each committee, which amount is applied to the maximum contribution allowed by M.G.L. c. 55, § 7A.

b. Distribution. Net proceeds shall be distributed to each participating committee in equal shares. For example, if three candidate committees participate in a joint fundraising event which receives $3,500 in contributions, but the joint fundraising agent spends $500 in connection with the event, each committee is entitled to a 1/3 share ($1,000) of the $3,000 in net proceeds.

2. Attribution and Distribution Based on Committee Selling Ticket or Arranging for Contribution. Prior to the event, participating committees may agree, in writing, to allocate contributions and distribute net proceeds based on which committee sells a particular ticket or arranges for a particular contribution. Contributors must be informed, prior to making a contribution or buying a ticket, that the contribution will be reported as a contribution to the committee which sold the ticket and the proceeds will be given to that committee.

a. Attribution. Each contributor shall be understood to be a contributor to the committee which sells the contributor a ticket or arranges for the contributor's contribution. For example, if three committees hold a joint fundraising event and one committee sells tickets to six individuals, but the other two committees do not sell any tickets, the contributions would be attributed, in their entirety, to the first committee.

b. Distribution. Net proceeds shall be distributed to each participating committee in proportion to the total amount of contributions arranged by each committee. For example, if three candidate committees participate in a joint fundraising event which receives $3,000 in contributions, but the joint fundraising agent spends $1,000 in connection with the event, distribution of the $2,000 in net proceeds will be determined by the total contributions arranged by each participating committee. If one of the three committees arranged for $1,500 (½ of the total contributions received by the joint fundraising agent), that committee would receive a distribution of ½ of the net proceeds, or $1,000. The remaining $1,000 of net proceeds would be distributed to the other two committees based on the percentage of contributions arranged by each.

3. Distribution Based on Agreement of Sponsoring Party Committees. Prior to the event, if all participating committees are committees organized on behalf of state, city, ward, or town political party committees, the participating committees may agree in writing to distribute net proceeds and allocate contributions based on various objective factors, including factors which objectively measure the relative benefit which should be applied to each participant.

a. Attribution. Attribution of contributions shall be determined in accordance with the committees' agreement. For example, if three town committees agree to attribute contributions based on a contributor's residence, and 50% of the total of $3,000 in contributions is from one town, 50% of total contributions ($1,500) would be attributed to that town's committee.

b. Distribution. Distribution of net proceeds shall be determined in accordance with the committees' agreement. In the above example, if $500 of the $3,000 total contributed is used to pay expenses, the town committee which is attributed 50% of the contributions would receive $1,250 (the attributable amount less the event's expenses multiplied by 50%).

(d) Limitation on Contributions to Joint Fundraising Agents. Fundraising agents must ensure that contributions received on behalf of candidates and political committees comply with M.G.L. c. 55's limitations on contributions.

1. Contributions Received by Joint Fundraising Agents. Such contributions are subject to the combined limitation of those participating in the joint fundraising event. For example, if three candidates hold an event, and they choose to attribute and distribute contributions on a pro rata basis, i.e., as defined in 970 CMR 2.12(2)(c)1., an individual could contribute up to $1,500, assuming:

a. the proceeds are divided equally among the candidates; and

b. the individual has given no other contributions to any of the three candidates during the calendar year.

On the other hand, if the participating candidates choose to attribute and distribute contributions based on which committee sells the tickets, i.e., as defined in 970 CMR 2.12(c)2., an individual could contribute up to $500 to any one committee selling tickets, assuming no other contributions are made to that committee during a calendar year.

2. Treatment of Excess Contributions. A contribution may not be accepted by a fundraising agent to the extent the contribution exceeds the limits imposed by M.G.L. c. 55. If a contribution is accepted by a fundraising agent and then later determined to be, in whole or in part, in excess of the amount permitted by M.G.L. c. 55, the excess amount must immediately be refunded by the fundraising agent to the contributor.

(e) Identification and Distribution of Contributions Received at Joint Fundraising Events.

1. Contributions over $50.00 must be by check made payable to the joint fundraising agent.

2. All expenditures shall be paid and all proceeds of an event shall be distributed to sponsoring committees within 30 days of the event, pursuant to 970 CMR 2.12(2)(c), to each sponsor.

(3) Reporting.

(a) Each joint fundraising agent must disclose to the sponsoring candidates and committees, on a form prescribed by the director:

1. the date of the event;

2. the total contributions received by the joint fundraising agent;

3. the amount paid to the joint fundraising agent by each sponsoring committee (these amounts will also be reflected, as expenditures, in the campaign finance report filed by a sponsoring committee);

4. the name and address of each contributor, regardless of the amount contributed;

5. the amount contributed by each contributor;

6. the attribution method used and the amount attributable to each sponsoring committee;

7. the occupation and employer of each contributor making a contribution if a participating committee would receive, in connection with the event, $200 or more;

8. a listing of all in-kind contributions received by the joint fundraising agent reflecting the date received, the contributor, the residential address of the contributor, the occupation and employer of the contributor (if the value of the contribution, together with any other contribution received from the contributor, would result in a participating committee receiving $200 or more in connection with the event), and a description of the contribution and its total value (which will be allocated pro rata or as agreed prior to the event, among each sponsoring committee);

9. the full name and address of each person to whom an expenditure is made by the joint fundraising agent, the amount, date and purpose of each expenditure, and a total of all such expenditures, whether from funds received from sponsoring committees or from proceeds of the event;

10. the date proceeds are distributed; and

11. the share of proceeds received by each committee (which will also appear as a receipt in a sponsoring committee's campaign finance report).

(b) The report shall be duplicated by the joint fundraising agent who shall provide a copy of the report to each sponsoring committee. The report shall be provided to each sponsoring committee within 30 days of the event.

(c) Sponsoring committees not required to designate a depository by M.G.L. c. 55, § 19 shall file, in paper format, the joint fundraising report on the same day the committee files the campaign finance report which reflects the distribution of proceeds from the joint fundraising agent.

(d) Sponsoring committees required to designate a depository pursuant to M.G.L. c. 55, § 19 shall deposit all funds received from the joint fundraising agent within seven days of receipt from the joint fundraising agent. Thereafter, such committees shall file the joint fundraising report with the director on or before the fifth day of the month following the deposit of the proceeds.

(e) Sponsoring candidates and treasurers of sponsoring committees shall review the joint fundraising report, verify the determination of the share of contributions and expenditures attributable to the sponsoring committee.

(f) Sponsoring candidates and treasurers of sponsoring committees and joint fundraising agents are responsible for ensuring the accuracy of the information contained in the joint fundraising report.

(g) Sponsoring candidates and treasurers shall refund any contribution or portion thereof, of contributions attributed to the candidate, or portion thereof, which, when considered together with other contributions received from a contributor, exceed the limitations of the campaign finance law, including the limitations established in M.G.L. c. 55, § 7A, or is otherwise not consistent with the requirements established by the campaign finance law.

(4) Maintenance of Records.

(a) A joint fundraising agent must make copies of all records, pursuant to M.G.L. c. 55, §§ 2 and 5, reflecting contributions received and expenditures made in connection with the event and provide a set of copied records to each participating committee.

(b) Each committee participating in a joint fundraising event must maintain complete records reflecting expenditures made and contributions received in connection with the activity.

(c) A committee participating in a joint fundraising event must donate funds received to a charitable or other entity specified in the residual funds clause of M.G.L. c. 55, § 18, if the joint fundraising agent or participating committee has failed to maintain records reflecting the allocation of contributions and expenditures.

(1) Sponsorship of Event. A candidate or elected official will be deemed to "sponsor" a fundraising event on behalf of a non-resident candidate, and will be subject to the reporting requirements defined in M.G.L. c. 55, § 18B, if the Massachusetts candidate or elected official is primarily responsible for taking any one or more of the following actions:

(a) Arranging for fundraising events or endorsing fundraising events; or

(b) Taking action to encourage attendance at the event.

(2) A sponsor of a non-resident fundraising event must file the report required by M.G.L. c. 55, § 18B with the director within 30 days of the event. Where an event is sponsored by more than one person, sponsors may file one joint report.

(1) Campaign Finance Reports, Generally. Failure to file any of the following campaign finance reports required to be filed with the director, in accordance with the schedule specified in M.G.L. c. 55, § 18, will result in the immediate assessment of a civil penalty, pursuant to M.G.L. c. 55, § 3: CPF Forms 102ND, D102, 102PC, and 102BQ.

(2) Ward, Town and City Committee Reports. Failure to file a campaign finance report that is required to be filed with the director in accordance with M.G.L. c. 55, § 18 on the date that it is due will result in the immediate assessment of a civil penalty pursuant to M.G.L. c. 55, § 3 if the committee has received contributions, made expenditures, incurred liabilities, or acquired or disposed of assets in excess of $1,000 during the relevant reporting period or during the calendar year.

(3) Miscellaneous Reports. Failure to file any of the following reports or affidavits required to be filed with the director, within 14 days after notification by the director or his designee that filing in accordance with M.G.L. c. 55 has not taken place, will result in the assessment of a civil penalty, pursuant to M.G.L. c. 55, § 3, commencing on the 15th day after the date of the director's notification letter:

(a) Reports of independent expenditures promoting the election or defeat of candidates (CPF Forms 18A and M18A);

(b) Reports of corporate treasurers or other persons reflecting expenditures made to influence or affect the vote on any question submitted to the voters (CPF Form 22);

(c) Reports of governmental treasurers reflecting expenditures made to influence or affect the vote on any question submitted to the voters (CPF Forms 22A and M22A);

(d) Affidavit reflecting change of treasurer and acceptance of office by new treasurer (CPF Forms T101 and M-T101);

(e) Change of purpose of candidate's political committee (CPF Form 101P);

(f) Disclosures of committee credit card activity (CPF Forms 9 and M9);

(g) Certificate of appointment of depository (CPF D103);

(h) Report of fundraising event for non-resident candidate (CPF 102NR);

(i) Reports of treasurers of ward, town and city committees not subject to the provisions of 970 CMR 2.14(2); and

(j) Any other report, statement or affidavit required to be filed by M.G.L. c. 55 or 970 CMR including, but not limited to subvendor reports (CPF Form 18D), Reports of Donations to inauguration, recount or legal defense funds (CPF Form 18E), and Reports of electioneering communication expenditures (CPF Form 18F).

(4) Failure to File Timely Reports with Local Election Officials.

(a) Local election officials shall inspect campaign finance reports (CPF Form M102) within 30 days of the reporting dates required by M.G.L. c. 55 and other reports or statements within 60 days of the date such reports or statements are due.

(b) If a person fails to file a required report or statement in a timely manner the election official must provide written notification to the person(s) required to file that the report or statement must be filed within ten days to avoid the assessment of penalties.

(c) If a person who receives notification from the local election official fails to respond within ten days of receiving notice, the election official shall notify the director and furnish the director with a copy of the notification letter required by 970 CMR 2.00 and M.G.L. c. 55, § 28, together with any other information which may be relevant to the referral, such as correspondence from the election official notifying the candidate or treasurer of the due-date of a report or statement, the portion of the ballot containing the candidate's name, if applicable, the statement of organization of the political committee and the last report filed by the candidate.

(d) Upon receiving notification from the local election official, the director shall assess a penalty, pursuant to M.G.L. c. 55, § 3, against the person responsible for filing the late report or statement, and may refer the candidate or treasurer to the attorney general pursuant to M.G.L. c. 55, § 3.

(5) Requests for Waiver of Penalty.

(a) Candidates, treasurers, and other persons who have been assessed a penalty may submit a request for a waiver of part or all of any such penalty to the director in accordance with M.G.L. c. 55, § 3.

(b) Requests for waiver must be in writing and signed by the person who has been assessed a penalty. Such requests may be accompanied by documentation, if any, demonstrating the cause of a delay.

(c) The filing of a request for waiver does not suspend the due date of a report, statement or affidavit and does not suspend the assessment of the $25 per day penalty specified in M.G.L. c. 55, § 3.

(d) The determination of whether "good cause" exists to waive a penalty or portion thereof depends on a number of factual circumstances and shall be made by the director or his designee based upon the specific facts of each case. Examples of "good cause" may include, but are not necessarily limited to:

1. A death, incapacitating illness, or hospitalization of the candidate, treasurer, or other person who has been assessed a penalty, or in the immediate family of such person.

a. Requests submitted due to illness or hospitalization must be accompanied by sufficient documentation, which would consist of a doctor's statement noting the name of the patient, the incapacitating illness or hospitalization, and the date(s) of the illness or hospitalization.

b. In the case of death, a death certificate or obituary notice would constitute adequate documentation.

2. Serious accident involving the candidate or treasurer or other person who has been assessed a penalty. Requests for waiver for this reason must be accompanied by a copy of the hospital bill, a doctor's statement, or other adequate documentation.

3. Unforeseen severe weather conditions, e.g., hurricane or major snowstorm at the time of filing.

4. Other good cause.

(e) The following circumstances generally do not constitute "good cause":

1. Postal delay.

2. Change of treasurer.

3. Relocation of campaign office.

4. Forms not received by committee.

5. Ignorance of requirement to file form.

6. Candidate or treasurer moved without notifying OCPF.

7. Lack of access to campaign records.

(f) The director or his designee shall issue a written determination for each waiver request within 30 days. The request may be approved or denied in whole or in part.

(g) Within 30 days of receiving the director's decision regarding a waiver request, a candidate or treasurer may submit a written request for a hearing to appeal the decision.

1. Within 30 days of receipt of such request, a hearing shall be scheduled before the director or his designee.

2. Hearings shall be brief and informal; rules of evidence shall not apply.

3. At the request of the director, his designee or a person requesting a hearing, such hearing shall be tape recorded and testimony shall be taken under oath administered by the person conducting the hearing.

4. The person requesting the hearing must, unless excused in accordance with 970 CMR 2.14(5)(g)4., be present at the hearing. If the person requesting the hearing is unable to attend due to unforeseen circumstances that person may request that the hearing proceed in his absence. If the director approves the request the hearing may proceed notwithstanding that person's absence.

5. Within 30 days of the hearing, the director or his designee shall issue a written decision approving or denying, in whole or in part, the waiver request. The decision is subject to judicial review in accordance with M.G.L. c. 55, § 3 and c. 30A.

(6) All reports, statements and affidavits referenced in M.G.L. c. 55 or 970 CMR shall be signed under the penalties of perjury.

An elected officer's political committee may pay or expend money or other things of value for the provision of constituent or legislative services including the opening and maintaining of a district office.

(1) General Expenditures. The following expenditures, as well as any expenditure which is similar to the following and not inconsistent with M.G.L. c. 55 and 970 CMR, shall be permitted by an elected officer's political committee:

(a) The reasonable costs of providing services to constituents including requests for information, assistance in gaining access to governmental services, and responding to district issues and concerns by an elected officer if each of the following requirements are met:

1. the service is provided to a member of the public who is not a family member of the elected officer;

2. the service is provided by an elected officer or an officer's aide in the officer's or aide's official capacity; and

3. the provision of said service is not otherwise prohibited by M.G.L. c. 55 or 970 CMR.

(b) The reasonable and necessary costs associated with carrying out the customary or official duties or responsibilities of a legislator which otherwise comply with M.G.L. c. 55 and 970 CMR, including, but not limited to, payments for the use of meeting rooms, food and beverages provided that such costs are not:

1. usual costs associated with the ordinary course of everyday living or recreational activities, or

2. made primarily for the elected officer's or any other person's personal use.

(2) District Offices.

(a) Political committees organized on behalf of legislators may pay the reasonable costs of opening and maintaining a district office.

1. Examples of such costs may include:

a. the purchase, lease and use of telephones, office furniture, office equipment including computers, copying machines, fax machines, typewriters and postage meters and utilities;

b. the cost of leasing or renting but not purchasing office space; and

c. all other necessary and reasonable costs associated with the opening and maintenance of a district office.

2. All expenditures authorized by 970 CMR 2.15 shall be reasonable and consistent with the use and purpose of a district office.

3. No district office nor any of the district office's equipment shall be used for the personal use of a candidate or any other person.

(b) Campaign activities may be undertaken in a district office provided each of the following requirements are satisfied and such activity is otherwise permitted by law:

1. Public resources may not be used to support the candidate's campaign. Such resources include, but are not limited to, legislative aides during their work hours, stationery, and other materials or services provided by or paid for by the state or other public entity.

2. Campaign activities may not be performed during the hours the office is open for constituent services, unless campaign and constituent service functions are physically separated and the candidate clearly delineates that part of the office used for constituent services from that part used for campaign purposes.

3. Such use of a district office for campaign purposes must comply with M.G.L. c. 55, § 14.

(3) Campaign Finance Reports. A political committee may file a constituent and legislative services report as an attachment to any campaign finance report in order to identify the purpose of each constituent and legislative expenditure or portion thereof and the total of all such expenditures or portions thereof reported on a political committee's campaign finance report which were made for the purposes set forth in 970 CMR 2.15. The attachment authorized by 970 CMR 2.15 shall be voluntary and does not supersede a political committee's obligation to provide the information regarding expenditures required by M.G.L. c. 55, § 18.

(4) Nothing in 970 CMR 2.15 shall be construed to authorize a political committee to pay for any district office expense which is otherwise paid or reimbursed by the commonwealth.

(1) Definitions. For the purpose of 970 CMR 2.16 the following terms shall have the following meanings:

Allocable Expense means any expense that may be allocated between the non-federal and federal accounts of a state committee in accordance with regulations promulgated by the Federal Election Commission.

Federal Account means the separate federal account of a state committee established under regulations promulgated by the Federal Election Commission.

State Account means the separate state or any non-federal account of a state committee established under regulations promulgated by the Federal Election Commission, and in accordance with M.G.L. c. 55, § 19.

State Committee means the state committee of a political party, as defined in M.G.L. c. 50, § 1, organized in accordance with M.G.L. c. 52.

(2) All state committee expenditures made primarily for the purpose of aiding, promoting or preventing the nomination or election of any person to a state or local public office must be made from the state account, unless such expenditure is required to be made out of the federal account of the state committee by the Federal Election Campaign Act or regulations promulgated under its authority.

(3) Monetary contributions by state committees to any political committee organized pursuant to M.G.L. c. 55, § 5 must be made from the state committee's state account.

(4) A state committee may transfer, from its state account to its federal account, the full amount of the state share of any allocable expense in accordance with regulations promulgated by the Federal Election Commission.

(1) Persons Required to File Reports. The following persons are required to file reports:

(a) Any individual, group or association not defined as a political committee who makes an independent expenditure exceeding $250 or independent expenditures exceeding $250 in the aggregate during a calendar year for the express purpose of promoting the election or defeat of one or more clearly identified candidate(s).

(b) For the purposes of M.G.L. c. 55, § 18A and 970 CMR 2.17, the term "association" includes, but is not limited to, corporations, partnerships, limited liability companies and limited liability partnerships.

(2) Filing of Preliminary Reports. The term "any election" as used in M.G.L. c. 55, § 18A(b) and (c), shall mean any preliminary, primary, special or general election. All preliminary reports required by M.G.L. c. 55, § 18A(b) and (c) must be filed electronically, in accordance with M.G.L. c. 55, § 18C.

(3) Independent Expenditure PACs. A political action committee that only receives donations to make independent expenditures, and only makes independent expenditures, is an "independent expenditure PAC."  Unlike other PACs, independent expenditure PACs may receive donations from individuals without limit, and from corporations and other entities that are otherwise prohibited from contributing to PACs pursuant to M.G.L.c 55, § 8.

(a) Independent expenditure PACs are subject to all other requirements that apply to other PACs, including disclosure.

(b) An independent expenditure PAC may not directly or indirectly coordinate its campaign activity with any Massachusetts candidate or political committee. If such independent expenditure PAC makes coordinated expenditures with a candidate or candidate's committee, the independent expenditure PAC would become a PAC subject to all requirements, including limits on contributions that apply to other PACs.

(c) An independent expenditure PAC must include the words "independent expenditure political action committee" in its name.

(4) A political committee, other than a ballot question committee, which files reports with the director, may make independent expenditures to promote the election or defeat of one or more candidates who file with a city or town clerk.

(a) If such independent expenditures are made and the aggregate amount of the independent expenditures exceeds $250 during any calendar year, or otherwise must be filed in accordance with M.G.L. c. 55, § 18A, the committee must, in addition to disclosing the expenditures in the committee’s campaign finance report that is filed with the director, also file a report of independent expenditures with the city or town clerk in the city or town in which the candidate is on the ballot.

(b) The independent expenditure reports filed with the city or town clerk must be filed by the dates specified in M.G.L. c. 55, § 18A.

(5) A political committee, other than a ballot question committee, which files reports with a city or town clerk, may make independent expenditures to promote the election or defeat of one or more candidates who file with the director.

(a) If such independent expenditures are made and the aggregate amount of the independent expenditures exceeds $250 during any calendar year, or otherwise must be filed in accordance with M.G.L. c. 55, § 18A, the committee must, in addition to disclosing the expenditures in the committee's campaign finance report that is filed with the city or town clerk, also file a report of independent expenditures with the director.

(b) The independent expenditure reports filed with the director must be filed by the dates specified in M.G.L. c. 55, § 18A and must be filed electronically, in accordance with M.G.L. c. 55, § 18C.

(1) Persons Required to File Reports with the Director. Reports required to be filed by M.G.L. c. 55, § 18D are filed with the director. Therefore, the words "committee" and "political committee" as used in M.G.L. c. 55, § 18D refer to committees that file with the director, and only those committees are required to file subvendor reports under M.G.L. c. 55, § 18D(c).

(2) Vendor Accounting of Expenditures. A vendor that makes an expenditure on behalf of a political committee shall, once the vendor has made expenditures to a particular subvendor that aggregate $500 during a calendar year, provide the political committee with a detailed account of the expenditures within five days, in accordance with M.G.L. c. 55, § 18D(b). Vendors are not required to provide this information to the committee prior to reaching the $500 threshold. Upon reaching the $500 threshold, the detailed account provided to the committee shall describe all expenditures made, including those made prior to reaching the threshold.

(3) Definition of subvendor. A "subvendor" is any individual who provides goods or services to a vendor or who contracts with a vendor to provide goods or services to a committee, except the following persons or businesses are not considered subvendors under M.G.L. c. 55, § 18D.

(a) A person who is an employee of a vendor, and has been an employee of the vendor for a period of at least three consecutive months prior to any month in which a committee is required to file a subvendor report.

(b) An individual or business that provides goods or services to another business or individual in the usual course of business. For example, a business that has an existing agreement to provide a printing company with paper and ink is not a subvendor.

(c) An individual or business that provides goods or services to a subvendor.

(4) Obligation of political committee to obtain subvendor information.

(a) A political committee which makes a payment to a vendor of $5,000 or more in the aggregate during a calendar year, or which incurs liabilities to a vendor in that amount, must make inquiry to the vendor regarding whether subvendors were paid by the vendor. A committee satisfies this requirement by asking at least once for subvendor information.

(b) A political committee which does not receive an account of subvendor expenditures from a vendor shall keep a copy of any written correspondence it sends to the vendor seeking such information.

(1) A corporation, association, organization or other group of persons, other than a political committee, or an individual which makes an expenditure to influence or affect the vote on a ballot question must file a report disclosing the expenditure, pursuant to M.G.L. c. 55, § 22 unless such expenditures:

(a) are made for campaign materials such as signs or literature, and the materials are not distributed prior to the relevant election;

(b) are made for campaign materials and the purchase takes place more than six months prior to distribution, in which event the disclosure may take place at the time of distribution, rather than at the time the expenditure was made; or

(c) are contributions to a ballot question committee.

(2) For purposes of completing a report of expenditures pursuantto M.G.L. c. 55, § 22, an expenditure must be disclosed when a promise to pay is made or a liability is incurred. Subsequent expenditures made to retire the liability do not also have to be disclosed unless paid by a person other than the person or entity that filed the report that initially disclosed the promise to pay or liability.

(3) For purposes of filing the reports required by M.G.L. c. 55, § 22, the ending date for a report required to be filed 60 days before an election to disclose expenditures made in connection with a question that appears on ballots at a state election shall be the preceding fifth day from the date the report is due.

(4) A political committee, other than a ballot question committee, which files reports with the director, may make expenditures to influence or affect a ballot question that appears on the ballot at a city or town election or that appears on the ballot for use in a city or town at a state election.

(a) If the amount of any such expenditure equals or exceeds $250, the committee must, in addition to disclosing the expenditure in the committee's campaign finance report filed with the director, also file a report of expenditure with the city or town clerk in the city or town in which the question is on the ballot.

(b) The report of ballot question expenditures filed with the city or town clerk must be filed according to the schedule applicable for reporting of expenditures relating to questions appearing on ballot questions appearing on the ballot at a city or town election or on the ballot for use in a city or town at a state election, as specified in M.G.L. c. 55, § 22.

(5) A political committee, other than a ballot question committee, which files reports with a city or town clerk, may make expenditures to influence or affect a ballot question that appears on the ballot at a state election.

(a) If the amount of any such expenditure equals or exceeds $250, the committee must, in addition to disclosing the expenditure in the committee's campaign finance report filed with the city or town clerk, also file a report of the expenditure with the director.

(b) The report of ballot question expenditures filed with the director must be filed according to the schedule applicable for questions that appear on ballots at a state election, as specified in M.G.L. c. 55, § 22 and must be filed electronically, in accordance with M.G.L. c. 55, § 18C.

REGULATORY AUTHORITY
970 CMR 2.00: M.G.L. c. 55, §§ 3 and 6.