Code of Massachusetts Regulations › 970 CMR - OFFICE OF CAMPAIGN AND POLITICAL FINANCE › Title 970 CMR 1.00 - Campaign finance activity › Section 1.20 - Legal Defense, Inauguration and Recount Funds

Current through Register 1525, July 5, 2024
A candidate or candidate's committee may establish a separate
				legal defense fund, inauguration fund, or recount fund, and a state party
				committee, may establish a separate legal defense fund in accordance with
				M.G.L. c. 55, § 18E.
(1) The
			 candidate or committee on whose behalf the fund is established, or the person
			 establishing the fund, must notify the Director or local election official, in
			 writing, of the creation of the fund. Such notification must be filed prior to
			 the date the first report disclosing donations is due, and shall indicate the
			 name of the fund, and the name, address, email address, and phone number of the
			 person who will be filing the reports. The name of the fund shall include the
			 full name of the candidate or committee on whose behalf the fund is created and
			 shall also indicate whether the fund is a legal defense, inauguration or
			 recount fund.
(2) If the fund
			 concerns a candidate who files reports with the Director, or a committee that
			 files with the Director, the notification must be submitted to the Director. If
			 the fund concerns a candidate who files with a city or town clerk, the
			 notification must be submitted to the clerk.
(3) Notwithstanding the testimonial
			 provisions of M.G.L. c. 55, § 1, payments made by a legal defense,
			 inauguration, or recount fund, and donations received by such a fund, shall not
			 be considered "expenditures" or "contributions" subject to the campaign finance
			 law.
(4) Monthly reports of
			 donations, required by M.G.L. c. 55, § 18E(b), shall not be filed if
			 donations are not received by a legal defense, inauguration or recount fund
			 during the month that would be covered by a report.
(5) Fundraising for legal defense, recount,
			 and inauguration funds, is subject to M.G.L. c. 55, §§ 13 through 17.
			 Persons employed for compensation by the Commonwealth or any of its
			 subdivisions may not directly or indirectly solicit or receive donations for a
			 legal defense, recount or inaugural fund, and donations for such funds may not
			 be solicited or received in any building occupied for state, county or local
			 governmental purposes.
(6) A
			 candidate or committee that has a separate legal defense fund, inauguration
			 fund or recount fund may also use the candidate's committee account to make
			 expenditures for legal defense, inauguration and recount purposes if the
			 expenditures for such purposes comply with M.G.L. c. 55, § 6. Where a
			 legal defense fund has been created by a state party committee, the state party
			 committee may use either the legal defense fund or the state party committee's
			 account to make legal expenditures consistent with M.G.L. c. 55, § 6.
			 Funds raised solely for such purposes must be deposited into a separate legal
			 defense, recount or inauguration fund account, and may not be deposited into a
			 committee's campaign finance account.
(7) Legal defense funds may be used to defend
			 against a criminal matter or to pay costs associated with a civil matter if the
			 criminal or civil or administrative matter is not primarily personal in nature.
			 Such costs may include fines or penalties assessed or amounts agreed to be paid
			 in a settlement agreement reached in such matter.
(8) When all donations have been received and
			 all payments made to accomplish the purposes of a legal defense, inauguration,
			 or recount fund, any money remaining in the fund's account must be disposed of
			 in a manner consistent with the residual fund's clause of M.G.L. c. 55, §
			 18, and the Director notified in writing that the fund has been closed.
			 Inaugural funds shall dissolve no later than one year after the inaugural
			 event. Any money remaining in the fund's account may not be deposited into a
			 candidate's or political committee's account or used for any other purpose not
			 consistent with the residual funds clause.