Session of 1999
HOUSE BILL No. 2562
By Committee on Federal and State Affairs
3-17
9 AN ACT concerning elections; enacting the Kansas clean money cam-
10 paign reform act; amending K.S.A. 1998 Supp. 25-4148 and repealing
11 the existing section.
12
13 Be it enacted by the Legislature of the State of Kansas:
14 New Section 1. Sections 1 to 18, inclusive, and amendments thereto,
15 shall be known and may be cited as the "Kansas clean money campaign
16 reform act."
17 New Sec. 2. Unless the context clearly requires otherwise, the defi-
18 nitions in K.S.A. 25-4143, and amendments thereto, shall apply to this
19 act. In addition, as used in this act, unless the context otherwise requires:
20 (a) "Fund" means the clean money election campaign fund.
21 (b) "Grant" means a contribution from the clean money election cam-
22 paign fund.
23 (c) "Legislative office" means a member of the Kansas house of rep-
24 resentatives or Kansas senate.
25 (d) (1) "Qualifying contribution" means:
26 (A) A contribution contributed to a candidate or such candidate's can-
27 didate committee for statewide office in the amount of $100 or less;
28 (B) a contribution contributed to a candidate or such candidate's can-
29 didate committee for legislative office in the amount of $50 or less;
30 (C) a contribution by and from a qualified voter residing or registered
31 to vote in the state of Kansas; and
32 (D) a contribution received on or after January 1 of an election year
33 in which the recipient is a candidate for office.
34 (2) "Qualifying contribution" does not mean:
35 (A) A loan, pledge, or in-kind contribution;
36 (B) any contribution or contributions in which the aggregate amount
37 contributed to a candidate and such candidate's candidate committee ex-
38 ceeds the limits of paragraph (A) or (B) of subsection (d)(1) of this section,
39 and amendments thereto.
40 (e) "Receipt and expenditure report" means a report of accounts of
41 all contributions and other receipts received and all expenditures made
42 by or on behalf of the treasurer's candidate or committee as required
43 under the campaign finance act.
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1 (f) "Statewide office" means the governor, lieutenant governor, sec-
2 retary of state, attorney general, state treasurer and insurance
3 commissioner.
4 (g) "Commission" means the Kansas commission on governmental
5 standards and conduct.
6 (h) (1) "Independent expenditure" means:
7 (A) Any purchase, payment, distribution, loan, advance, deposit or
8 gift of money or any other thing of value that has the effect of directly or
9 indirectly influencing the nomination or election of any individual to state
10 office or providing information which has the effect of directly or indi-
11 rectly influencing the nomination or election of any individual to state
12 office;
13 (B) any contract to make an independent expenditure;
14 (C) a transfer of funds between any two or more candidate commit-
15 tees, party committees or political committees; or
16 (D) payment of a candidate's filing fees.
17 (2) Independent expenditure does not mean:
18 (A) The value of volunteer services provided without compensation;
19 (B) costs to a volunteer incidental to the rendering of volunteer serv-
20 ices not exceeding a fair market value of $500 during an allocable election
21 period as provided in K.S.A. 25-4149 and amendments thereto;
22 (C) payment by a candidate or candidate's spouse for personal meals,
23 lodging and travel by personal automobile of the candidate or candidate's
24 spouse while campaigning or payment of such costs by the treasurer of a
25 candidate or candidate committee;
26 (D) the value of goods donated to events such as testimonial events,
27 bake sales, garage sales and auctions by any individual not exceeding fair
28 market value of $500 per event;
29 (E) any communication by an incumbent elected state officer with
30 one or more individuals unless the primary purpose thereof is to directly
31 or indirectly influence the nomination or election of any candidate or
32 providing information which has the effect of directly or indirectly influ-
33 encing the nomination or election of any candidate;
34 (F) costs associated with any news story, commentary or editorial dis-
35 tributed in the ordinary course of business by a broadcasting station,
36 newspaper, other periodical publication or by internet communication;
37 (G) costs associated with nonpartisan activities designed to encourage
38 individuals to register to vote or to vote; or
39 (H) costs associated with internal organizational communications of
40 business, labor, professional or other associations.
41 New Sec. 3. (a) Each individual filing an income tax return for any
42 taxable year who has a state income tax liability or is entitled to an income
43 tax refund or other payment from the department of revenue may des-
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1 ignate an amount of $4 ($8 for individuals filing a joint return) to be
2 deposited into the clean money election campaign fund which is hereby
3 established in the state treasury.
4 (b) Such designation shall not increase a taxpayer's liability or de-
5 crease a refund or other payment to the taxpayer from the department
6 of revenue.
7 (c) The department of revenue shall place on the top 1/3 of the first
8 page of all tax returns to be filed the following language:
9 KANSAS CLEAN MONEY ELECTION CAMPAIGN FUND
10 Do you want $4 to go to this fund?
11 Yes No
12 If joint return, does your spouse want $4 to go to this fund?
13 Yes No
14 Note: Checking "Yes" will not increase your tax or reduce your refund.
15 (d) The director of taxation of the department of revenue shall de-
16 termine annually the total amount designated for use in the Kansas clean
17 money election campaign fund pursuant to this section and shall report
18 such amount to the state treasurer who shall credit the entire amount
19 thereof to such fund. All expenditures from such fund shall be made in
20 accordance with appropriation acts upon warrants of the director of ac-
21 counts and reports issued pursuant to vouchers approved by the chair-
22 person of the Kansas commission on governmental standards and conduct
23 or the chairperson's designee.
24 (e) For each fiscal year in which an election for legislative or statewide
25 office is required by law, the legislature shall appropriate from the state
26 general fund, an amount sufficient to fully fund all candidates eligible to
27 receive grants pursuant to this act. The commission shall provide the
28 director of taxation of the department of revenue with a written estimate
29 of the amount necessary to fully fund all eligible candidates no later than
30 January 1 of any such election year. If insufficient funds are appropriated
31 by the legislature to pay such sums, the finance council, upon the request
32 of the commission, shall transfer sufficient moneys from the appropriation
33 for contingencies to make all payments authorized by the provisions of
34 this act.
35 New Sec. 4. (a) Each candidate for statewide or legislative office shall
36 file a statement of intent to accept or reject a grant from the fund. The
37 statement shall be filed no later than the deadline for filing nomination
38 petitions.
39 (b) A candidate who intends to accept a grant shall swear or affirm
40 that the candidate and the candidate's authorized agent or agents have
41 complied with and will continue to comply with all applicable contribution
42 and expenditure limits at all times to which the limits apply to the can-
43 didate's candidacy for the office sought.
44 (c) A candidate who intends to accept a grant shall designate in the
45 statement of intent whether the candidate will accept or reject a grant in
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1 either the primary or the general election. A candidate may designate
2 both.
3 (d) A candidate who designated the primary and not the general elec-
4 tion in the statement of intent may designate the general election no later
5 than 15 calendar days after the date of the primary election.
6 (e) A candidate may rescind the acceptance in the statement of intent:
7 (1) For a primary election grant no later than 15 calendar days after
8 the deadline for filing nomination petitions; or
9 (2) for a general election grant no later than 15 calendar days after
10 the date of the primary election.
11 New Sec. 5. (a) The commission shall approve the payment of a pri-
12 mary or a general election grant or both a primary election grant and a
13 general election grant if an eligible candidate meets all of the following
14 requirements:
15 (1) The candidate has filed a timely statement of intent to accept the
16 grant;
17 (2) the candidate is certified to appear on the ballot for the election
18 and office for which the grant is sought;
19 (3) the candidate is opposed by a candidate for the same office:
20 (A) Who has qualified to receive a grant; or
21 (B) whose campaign finance reports or notification provided for in
22 subsection (b) indicate that the opposing candidate has received, ex-
23 pended or has cash on hand of at least 25% of the applicable expenditure
24 limit;
25 (4) the financial reports filed by or on behalf of the candidate as of
26 the date of qualification indicates that the candidate has received:
27 (A) In the case of candidates for statewide office, qualifying contri-
28 butions equal to at least 5% of the expenditure limits; or
29 (B) in the case of candidates for legislative office, qualifying contri-
30 butions equal to at least 10% of the expenditure limits.
31 (b) A candidate whose report indicates that the candidate has not
32 received, expended or has cash on hand of at least 25% of the applicable
33 expenditure limit shall notify the commission within 48 hours of the date
34 in which the contribution or contributions were received or expenditure
35 or expenditures were made which caused the candidate to have received,
36 expended, or have cash on hand of at least 25% of the applicable ex-
37 penditure limit.
38 New Sec. 6. (a) A candidate filing a statement of intent to accept a
39 grant shall not receive a contribution or contributions from the candi-
40 date's own funds that exceed 200% of the qualifying contribution which
41 an individual may contribute to a candidate for that office, or from those
42 funds of the candidate's spouse that exceed 200% of the qualifying con-
43 tribution an individual may contribute to a candidate for that office.
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1 (b) A candidate filing a statement of intent to accept a grant shall not
2 receive a contribution or contributions from any committee, corporation,
3 union, partnership, trust, organization, association, recognized political
4 committee, political committee or political party committee. If such con-
5 tributions are received before the candidate files a statement of intent to
6 accept a grant, the candidate shall return such contributions to be eligible
7 for a grant.
8 (c) A qualifying candidate for statewide office filing a statement of
9 intent to accept a grant may receive a primary election grant, a general
10 election grant, or both a primary election grant and a general election
11 grant equal to 95% of the applicable expenditure limit. A qualifying can-
12 didate for legislative office filing a statement of intent to accept a grant
13 may receive a primary election grant, a general election grant, or both a
14 primary election grant and a general election grant equal to 90% of the
15 applicable expenditure limit. A qualifying candidate, in an uncontested
16 primary for statewide or legislative office, filing a statement of intent to
17 accept a grant may receive a primary election grant equal to 25% of the
18 amount provided in a contested primary if the qualifying candidate will
19 have a contested general election.
20 New Sec. 7. (a) Neither a candidate for statewide or legislative office
21 who files a statement of intent to accept a grant from the fund nor such
22 candidate's agent shall make an expenditure or expenditures in excess of
23 the following amounts:
24 (1) For the pair of candidates of governor and lieutenant governor,
25 $710,000 in the primary election and $1,420,000 in the general election;
26 (2) for a candidate for other statewide office, $135,000 in the primary
27 election and $265,000 in the general election;
28 (3) for a candidate for state senator, $25,000 in the primary election
29 and $25,000 in the general election;
30 (4) for a candidate for state representative, $15,000 in the primary
31 election and $15,000 in the general election.
32 (b) (1) For purposes of the expenditure limits:
33 (A) An expenditure made by the date of the primary election of the
34 general election year shall be considered a primary election expenditure;
35 (B) an expenditure made from midnight on the date of a primary
36 election through and including December 31 of the general election year
37 shall be considered a general election expenditure.
38 (2) Notwithstanding the provisions of paragraphs (A) and (B), if pay-
39 ments are made, but the goods or services are not used during the period
40 purchased, the payments shall be considered expenditures for the time
41 period when they are used or during which benefit is derived from them.
42 Payment for goods and services used in both time periods shall be
43 prorated.
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1 (c) A candidate filing a statement of intent to reject a grant from the
2 fund may file an affidavit agreeing to voluntarily comply with the appli-
3 cable contribution and expenditure limits no later than the deadline for
4 filing nomination petitions. An affidavit filed under this section shall be
5 binding unless rescinded:
6 (1) No later than 15 calendar days after the deadline for filing nom-
7 ination petitions in the case of primary expenditure limits; or
8 (2) no later than 15 calendar days after the date of the primary elec-
9 tion in the case of general election expenditure limits.
10 New Sec. 8. (a) (1) If the commission determines that a candidate
11 for statewide office who is eligible to receive a grant is opposed by a
12 candidate who has rejected a grant and who has not agreed voluntarily to
13 limit contributions and expenditures under subsection (c) of section 7,
14 and amendments thereto, the candidate who is eligible to receive the
15 grant also shall be eligible for an additional grant equal to 50% of the
16 applicable grant amount; or
17 (2) if the commission determines a candidate for a legislative office
18 who is eligible to receive a grant is opposed by a candidate who has
19 rejected a grant and who has not agreed voluntarily to limit contributions
20 and expenditures under subsection (c) of section 7, and amendments
21 thereto, the candidate who is eligible to receive the grant also shall be
22 eligible for an additional grant equal to 100% of the applicable grant
23 amount.
24 (b) If aggregate independent expenditures are made in an amount
25 greater than 10% of the applicable expenditure limit in support of or in
26 opposition to a candidate for such office, the candidate who is affected
27 negatively by such expenditure and who is eligible to receive a grant, also
28 shall be eligible for additional grant funds equal to the amount of such
29 expenditure up to a maximum amount of 25% of the applicable expend-
30 iture limit for either the primary election or general election as
31 appropriate.
32 (c) The expenditure limit for a candidate who receives the additional
33 grant described in this section shall be raised in an amount equal to the
34 amount of the additional grant.
35 New Sec. 9. A candidate or campaign treasurer may exclude the fol-
36 lowing items when computing expenditure limits:
37 (a) A contribution or contributions returned to the contributor;
38 (b) repayment of a loan to the campaign;
39 (c) expenses incurred as a direct result of an election recount; and
40 (d) a refund of a deposit paid.
41 New Sec. 10. (a) The commission immediately shall review the state-
42 ments of intent, nomination petitions, and receipt and expenditure re-
43 ports of candidates to determine the eligibility of candidates who have
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1 filed statements of intent to accept a grant.
2 (b) The commission shall certify whether a candidate is eligible to
3 receive a primary election grant no later than 10 calendar days after the
4 deadline for filing nomination petitions.
5 (c) The commission shall certify whether a candidate is eligible to
6 receive a general election grant no later than 10 calendar days after the
7 date of the primary election.
8 (d) A separate determination shall be made for a primary and a gen-
9 eral election grant.
10 (e) The certification by the commission shall indicate whether a can-
11 didate is eligible to receive a grant and the amount of the grant the can-
12 didate is eligible to receive.
13 (f) If a candidate who has filed a statement of intent to accept a grant
14 is not eligible to receive a grant, the certification shall state the reasons
15 why the candidate is not eligible to receive a grant and what action, if
16 any, the candidate may take to qualify for a grant.
17 (g) The commission immediately shall certify a candidate who be-
18 comes eligible after the dates specified in subsections (b) and (c) but
19 before the date of the primary election or general election for which the
20 funds are sought.
21 (h) Immediately after the commission certifies a candidate for a
22 grant, the commission shall deliver a copy of such certification along with
23 a voucher approved by the chairperson of the commission or the chair-
24 person's designee to the department of revenue. Upon receipt of the
25 certification and voucher, the department of revenue shall issue a check
26 immediately to the certified candidate or candidate committee for the
27 amount indicated on the voucher. The department of revenue shall de-
28 liver such check and certification immediately to the treasurer of the
29 certified candidate or candidate committee.
30 (i) A candidate may file a written request to review the determination
31 of the commission no later than five calendar days after such
32 determination.
33 New Sec. 11. All grant funds shall be deposited in a bank account
34 designated as the candidate's campaign fund by the treasurer of the can-
35 didate or the candidate's candidate committee.
36 New Sec. 12. (a) (1) Grant funds disbursed under this act shall re-
37 main the property of the state until disbursed for lawful campaign
38 purposes.
39 (2) Grant funds that are unspent by a candidate on the eighth day
40 preceding the general election for a primary election grant or January 10
41 of the year after the election year for a general election grant shall revert
42 to the state. A deposit or refund derived from grant funds that are re-
43 ceived by a candidate after the eighth day preceding the general election
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1 for a primary election grant or January 10 of the year after the election
2 year for a general election grant shall revert to the state. All reversions
3 shall be returned to the department of revenue which shall deposit the
4 money in the clean money election campaign fund.
5 (b) Return of grant funds after the withdrawal date set forth in sub-
6 section (d) of section 4, and amendments thereto, shall not remove ap-
7 plicable contribution and expenditure limits.
8 New Sec. 13. (a) A person shall not expend, authorize the expendi-
9 ture of, or incur an obligation to expend a grant for a purpose other than
10 to advance the candidacy by lawful means of the specific candidate or
11 candidates who qualify for the grant.
12 (b) A person shall not expend, authorize the expenditure of or incur
13 an obligation to expend a grant after the date of an election where the
14 grant is subject to return to the state under subsection (a)(1) of section
15 12, and amendments thereto.
16 (c) A candidate shall not expend, authorize the expenditure of or in-
17 cur an obligation to expend a grant if the candidate violates the pledge
18 required under subsection (b) of section 4 and amendments thereto.
19 (d) Every report or statement made under the Kansas clean money
20 campaign reform act shall be made on forms prescribed by the commis-
21 sion, and contain substantially the following:
22 "I declare that this (report)(statement) including any accompanying schedules and state-
23 ments, has been examined by me and to the best of my knowledge and belief is true, correct
24 and complete. I understand that the failure to file this document or filing a false document
25 is a class A misdemeanor."
28 Every report or statement shall be dated and signed by the treasurer.
29 New Sec. 14. (a) The candidate or the candidate's treasurer shall
30 deliver or transmit to the commission sufficient proof of payment of all
31 disbursements made from grant funds no later than the eighth day pre-
32 ceding the general election for a primary grant and no later than January
33 10 of the year after the election for a general election grant.
34 (b) The commission shall determine what constitutes sufficient proof
35 of payment.
36 (c) The commission may conduct a random audit of the accounts and
37 records of a candidate filing a statement of intent to accept a grant.
38 New Sec. 15. (a) A candidate or a candidate's treasurer may use the
39 candidate's statement of intent to accept a grant as security for a loan
40 made for campaign purposes from a financial institution that ordinarily
41 makes loans in the courses of its business.
42 (b) To the extent that proceeds of a loan obtained under the provi-
43 sions of subsection (a) of this section are used for expenditures as defined
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1 in K.S.A. 25-4143, and amendments thereto, repayment of such a loan
2 may be made from grant funds.
3 New Sec. 16. (a) At least seven days prior to making an independent
4 expenditure, any person who makes independent expenditures in an ag-
5 gregate amount of $1,000 or more within the time period beginning 60
6 days prior to a primary election and ending on the day of the general
7 election following such primary election, shall make and file a statement
8 prescribed by this section. Such statement shall be filed in the office of
9 the secretary of state. Every statement shall include:
10 (1) The name and address of the person; and
11 (2) the name and address of a responsible individual, if the person is
12 not an individual.
13 (b) Any person required to file a statement pursuant to subsection
14 (a) also shall file reports containing the information required by K.S.A.
15 25-4148, and amendments thereto. Such reports shall be filed at the times
16 and in the manner provided by K.S.A. 25-4148, and amendments thereto.
17 New Sec. 17. It is a violation of this act for any candidate knowingly
18 to accept more benefits than those to which such candidate is entitled,
19 spend more than the amount of clean money funding such candidate has
20 received r misuse such benefits of clean money funding. If it is deter-
21 mined that the violation was intentional and involved an amount that had
22 or could have been expected to have a significant impact on the outcome
23 of the election, the candidate may be fined up to $25,000 or imprisoned
24 for up to five years, or both. Any other violation of any provision of the
25 Kansas clean money campaign reform act is a class A misdemeanor.
26 New Sec. 18. The commission shall adopt rules and regulations for
27 the administration of the Kansas clean money campaign reform act. For
28 purposes of civil enforcement, conducting hearings, rendering advisory
29 opinions and other powers, the commission shall retain all authority
30 granted pursuant to the campaign finance act.
31 Sec. 19. K.S.A. 1998 Supp. 25-4148 is hereby amended to read as
32 follows: 25-4148. (a) Every treasurer shall file a report prescribed by this
33 section. Reports filed by treasurers for candidates for state office, other
34 than officers elected on a state-wide basis, shall be filed in both the office
35 of the secretary of state and in the office of the county election officer of
36 the county in which the candidate is a resident. Reports filed by treasurers
37 for candidates for state-wide office shall be filed only with the secretary
38 of state. Reports filed by treasurers for candidates for local office shall be
39 filed in the office of the county election officer of the county in which
40 the name of the candidate is on the ballot. Except as otherwise provided
41 by subsection (h), all such reports shall be filed in time to be received in
42 the offices required on or before each of the following days:
43 (1) For candidates for legislative and statewide offices as defined by
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1 section 2, on the day which is the last day for filing nomination petitions.
2 Such report shall be for the period beginning January 1 of the election
3 year and ending eight days before the day which is the last day for filing
4 nomination petitions. For all other candidates, the eighth day preceding
5 the primary election, which report shall be for the period beginning on
6 January 1 of the election year for the office the candidate is seeking and
7 ending 12 days before the primary election, inclusive;
8 (2) the eighth day preceding a general election, which report shall be
9 for the period beginning 11 days before the primary election and ending
10 12 days before the general election, inclusive;
11 (3) January 10 of the year after an election year, which report shall
12 be for the period beginning 11 days before the general election and end-
13 ing on December 31, inclusive;
14 (4) for any calendar year when no election is held, a report shall be
15 filed on the next January 10 for the preceding calendar year;
16 (5) a treasurer shall file only the annual report required by subsection
17 (4) for those years when the candidate is not participating in a primary
18 or general election.
19 (b) Each report required by this section shall state:
20 (1) Cash on hand on the first day of the reporting period;
21 (2) the name and address of each person who has made one or more
22 contributions in an aggregate amount or value in excess of $50 during the
23 election period together with the amount and date of such contributions,
24 including the name and address of every lender, guarantor and endorser
25 when a contribution is in the form of an advance or loan;
26 (3) the aggregate amount of all proceeds from bona fide sales of po-
27 litical materials such as, but not limited to, political campaign pins, but-
28 tons, badges, flags, emblems, hats, banners and literature;
29 (4) the aggregate amount of contributions for which the name and
30 address of the contributor is not known;
31 (5) each contribution, rebate, refund or other receipt not otherwise
32 listed;
33 (6) the total of all receipts;
34 (7) the name and address of each person to whom expenditures have
35 been made in an aggregate amount or value in excess of $50, with the
36 amount, date, and purpose of each ; the names and addresses of all per-
37 sons to whom any loan or advance has been made; when an expenditure
38 is made by payment to an advertising agency, public relations firm or
39 political consultants for disbursement to vendors, the report of such ex-
40 penditure shall show in detail the name of each such vendor and the
41 amount, date and purpose of the payments to each;
42 (8) the name and address of each person from whom an in-kind con-
43 tribution was received or who has paid for personal services provided
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1 without charge to or for any candidate, candidate committee, party com-
2 mittee or political committee, if the contribution is in excess of $50 and
3 is not otherwise reported under subsection (b)(7), and the amount, date
4 and purpose of the contribution;
5 (9) the aggregate of all expenditures not otherwise reported under
6 this section; and
7 (10) the total of expenditures.
8 (c) Treasurers of candidates and of candidate committees shall be
9 required to itemize, as provided in subsection (b)(2), only the purchase
10 of tickets or admissions to testimonial events by a person who purchases
11 such tickets or admissions in an aggregate amount or value in excess of
12 $50 per event, or who purchases such a ticket or admission at a cost
13 exceeding $25 per ticket or admission. All other purchases of tickets or
14 admissions to testimonial events shall be reported in an aggregate amount
15 and shall not be subject to the limitations specified in K.S.A. 25-4154,
16 and amendments thereto.
17 (d) If a contribution or other receipt from a political committee is
18 required to be reported under subsection (b), the report shall include the
19 full name of the organization with which the political committee is con-
20 nected or affiliated or, name or description sufficiently describing the
21 affiliation or, if the committee is not connected or affiliated with any one
22 organization, the trade, profession or primary interest of the political com-
23 mittee as reflected by the statement of purpose of such organization.
24 (e) The commission may require any treasurer to file an amended
25 report for any period for which the original report filed by such treasurer
26 contains material errors or omissions, and notice of the errors or omissions
27 shall be part of the public record. The amended report shall be filed
28 within 30 days after notice by the commission.
29 (f) The commission may require any treasurer to file a report for any
30 period for which the required report is not on file, and notice of the failure
31 to file shall be part of the public record. Such report shall be filed within
32 five days after notice by the commission.
33 (g) For the purpose of any report required to be filed pursuant to
34 subsection (a) by the treasurer of any candidate seeking nomination by
35 convention or caucus or by the treasurer of the candidate's committee or
36 by the treasurer of any party committee or political committee, the date
37 of the convention or caucus shall be considered the date of the primary
38 election.
39 (h) If a report is sent by certified or registered mail on or before the
40 day it is due, the mailing shall constitute receipt by that office.
41 Sec. 20. K.S.A. 1998 Supp. 25-4148 is hereby repealed.
42 Sec. 21. This act shall take effect and be in force from and after
43 January 1, 2000, and its publication in the statute book.