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

(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.