Rhode Island General Laws 17-25-7.2. Personal use of campaign funds prohibited
(a) The personal use by any elected public office holder or by any candidate for public office, as defined in § 17-25-3, of campaign funds contributed after April 29, 1992, is prohibited. For the purposes of this section, “personal use” is defined as any use other than expenditures related to gaining or holding public office and for which the candidate for public office or elected public official would be required to treat the amount of the expenditure as gross income under § 61 of the Internal Revenue Code of 1986, 26 U.S.C. § 61, or any subsequent corresponding Internal Revenue Code of the United States, as from time to time amended.
Terms Used In Rhode Island General Laws 17-25-7.2
- Accounts payable: means credit extended to a candidate or political committee, for campaign expenditures; provided that, the credit extended is in the ordinary course of the vendor's business, and the terms are substantially similar, in risk and amount, to extensions of credit to nonpolitical customers. See Rhode Island General Laws 17-25-3
- Candidate: means any individual who undertakes any action, whether preliminary or final, which is necessary under the law to qualify for nomination for election or election to public office, and/or any individual who receives a contribution or makes an expenditure, or gives his or her consent for any other person to receive a contribution or make an expenditure, with a view to bringing about his or her nomination or election to any public office, whether or not the specific public office for which he or she will seek nomination or election is known at the time the contribution is received or the expenditure is made and whether or not he or she has announced his or her candidacy or filed a declaration of candidacy at that time. See Rhode Island General Laws 17-25-3
- donation: means all transfers of money, credit or debit card transactions, on-line or electronic payment systems such as "pay pal" paid personal services, or other thing of value to or by any person, business entity, or political action committee. See Rhode Island General Laws 17-25-3
- Donor: The person who makes a gift.
- donor: means a person, business entity, or political action committee that makes a donation. See Rhode Island General Laws 17-25-3
- expenditures: include all transfers of money, credit or debit card transactions, on-line or electronic payment systems such as "pay pal" paid personal services, or other thing of value to or by any candidate, committee of a political party, or political action committee or ballot question advocate. See Rhode Island General Laws 17-25-3
- in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Political action committee: means any group of two (2) or more persons that accepts any contributions to be used for advocating the election or defeat of any candidate or candidates. See Rhode Island General Laws 17-25-3
- Public office: means any state, municipal, school, or district office or other position that is filled by popular election, except political party offices. See Rhode Island General Laws 17-25-3
- State: means state of Rhode Island. See Rhode Island General Laws 17-25-3
- United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8
(b) Expenditures that are specifically prohibited under this chapter include:
(1) Any residential or household items, supplies, or expenditures, including mortgage, rent, or utility payments for any part of any personal residence of a candidate or officeholder or a member of the candidate’s or officeholder’s family;
(2) Mortgage, rent, or utility payments for any part of any nonresidential property that is owned by a candidate or officeholder or a member of a candidate’s or officeholder’s family and used for campaign purposes, to the extent the payments exceed the fair-market value of the property usage;
(3) Funeral, cremation, or burial expenses, including any expenses related to deaths within a candidate’s or officeholder’s family;
(4) Clothing, other than items of de minimis value that are used in the campaign;
(5) Tuition payments;
(6) Dues, fees, or gratuities at a country club, health club, recreational facility or other nonpolitical organization, unless they are part of a specific fundraising event that takes place on the organization’s premises;
(7) Salary payments to a member of a candidate’s family, unless the family member is providing bona fide services to the campaign. If a family member provides bona fide services to a campaign, any salary payments in excess of the fair-market value of the services provided is personal use;
(8) Admission to a sporting event, concert, theater, or other form of entertainment, unless part of a specific campaign or officeholder activity;
(9) Payment of any fines, fees, or penalties assessed pursuant to this chapter.
(c) Any expense that results from campaign or officeholder activity is permitted use of campaign funds. Such expenditures may include:
(1) The defrayal of ordinary and necessary expenses of a candidate or officeholder;
(2) Office expenses and equipment, provided the expenditures and the use of the equipment can be directly attributable to the campaign or the officeholder’s duties and responsibilities;
(3) Donations to charitable organizations, provided the candidate or officeholder does not personally benefit from the donation or receive compensation from the recipient organization;
(4) Travel expenses for an officeholder, provided that the travel is undertaken as an ordinary and necessary expense of seeking, holding, or maintaining public office, or seeking, holding, or maintaining a position within the legislature or other publicly elected body. If a candidate or officeholder uses campaign funds to pay expenses associated with travel that involves both personal activities and campaign or officeholder activities, the incremental expenses that result from the personal activities are personal use, unless the person(s) benefiting from this use reimburse(s) the campaign account within thirty (30) days for the amount of the incremental expenses;
(5) Gifts of nominal value and donations of a nominal amount made on a special occasion such as a holiday, graduation, marriage, retirement, or death, unless made to a member of the candidate’s or officeholder’s family;
(6) Meal expenses that are incurred as part of a campaign activity or as a part of a function that is related to the candidate’s or officeholder’s responsibilities, including meals between and among candidates and/or officeholders that are incurred as an ordinary and necessary expense of seeking, holding, or maintaining public office, or seeking, holding, or maintaining a position within the legislature or other publicly elected body;
(7) Food and beverages that are purchased as part of a campaign or officeholder activity;
(8) Communication access expenses that are incurred as part of a campaign activity and operation to ensure that deaf and hard-of-hearing citizens are fully participating, are volunteers, and/or are otherwise maintaining a position with the campaign committee. Examples of communication access expenses include, but are not limited to, the following: captioning on television advertisements; video clips; sign language interpreters; computer-aided real-time (CART) services; and assistive listening devices;
(9) Childcare expenses that are incurred as a result of campaign activity or the officeholder’s responsibilities.
(d) Any campaign funds not used to pay for the expenses of gaining or holding public office may:
(1) Be maintained in a campaign account(s);
(2) Be donated to a candidate for public office, to a political organization, or to a political action committee, subject to the limitation on contributions in § 17-25-10.1;
(3) Be transferred, in whole or in part, into a newly established political action committee or ballot question advocate;
(4) Be donated to a tax-exempt charitable organization as that term is used in § 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501, or any subsequent, corresponding internal revenue code of the United States as from time to time amended;
(5) Be donated to the state of Rhode Island; or
(6) Be returned to the donor; provided, however:
(e) Any funds remaining in a campaign account(s) of a candidate or officeholder, or former candidate or former officeholder, who dies, after repayment of loans and accounts payable, shall be disposed, in accordance with the instructions in writing, on a form prescribed by the board of elections, which funds may:
(1) Be donated to a candidate for public office, to a political organization, or to a political action committee, subject to the limitation on contributions in § 17-25-10.1;
(2) Be transferred, in whole or in part, into a newly established political action committee or ballot question advocate;
(3) Be donated to a tax-exempt charitable organization as that term is used in § 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501, or any subsequent, corresponding internal revenue code of the United States as from time to time amended; or
(4) Be returned to the donor.
(5) The candidate’s or officeholder’s, or former candidate’s or former officeholder’s, campaign account(s) shall be dissolved by the board of elections;
(6) Any penalties assessed to the candidate or officeholder, or former candidate or former officeholder, that are outstanding at the time of their death shall be waived by the board of elections.
History of Section.
P.L. 1992, ch. 21, § 2; P.L. 2001, ch. 176, § 2; P.L. 2006, ch. 174, § 1; P.L. 2006, ch. 292, § 1; P.L. 2009, ch. 277, § 1; P.L. 2009, ch. 311, § 1; P.L. 2017, ch. 441, § 1; P.L. 2017, ch. 443, § 1; P.L. 2021, ch. 406, § 1, effective July 14, 2021; P.L. 2021, ch. 407, § 1, effective July 14, 2021.