(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.
Debit Card shall mean a card or plate
issued by a bank or other credit institution for the purpose of obtaining goods
or services by using funds in the cardholder's account.
Wire Transfer (also referred to as an
Electronic Expenditure) shall mean a payment by a
political committee from its campaign account, initiated by telephone or
electronically not using a credit or debit card.
(2)
Debit Card
Expenditures. A political committee may apply for and receive a
debit card linked to the committee's account, for the purposes of making
expenditures.
(a) Any debit card maintained
and used by a political committee must 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.
(b) A candidate or political committee may
not use a debit card for the purpose of obtaining any cash advance or loan of
money. Such debit cards may only be used for the purpose of obtaining goods and
services.
(c) Candidates and
committees not required to appoint a depository in accordance with M.G.L. c.
55, § 19 may make electronic expenditures linked to the committee 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. Debit card expenditures shall be reported in accordance with
M.G.L. c. 55, § 18 or 19 if made by a committee required to appoint a
depository.
(d) Candidates and
committees required to appoint a depository, in accordance with M.G.L. c. 55,
§ 19, shall review the expenditure reports filed by their depository bank
and must, within seven days of the date its bank files a report disclosing an
expenditure made by debit card, append the bank's report to disclose the
specific purpose of the expenditure.
(3)
Credit Card
Expenditures. 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 card may bear the name of the candidate, provided that 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. The card may also
bear the name of the treasurer or other agent of the political committee, who
has been authorized as a card holder by the political committee.
(c) Only the candidate or the candidate
committee may provide collateral or funds to guaranty payment for purposes of
obtaining the credit card.
(d) 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.
(e) Any extension of credit, and the terms of
the credit, must be commercially reasonable. (f) 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.
(g) A
candidate or 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.
(h) 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:
1. For all candidates and political
committees required to designate a depository account under M.G.L. c. 55,
§ 19, other than candidates for the state senate or house of
representatives, on or before the 5th day of each
month covering the entire statement period of the most recent credit card
statement received prior to the date of filing.
2. For all candidates for the state senate or
house of representatives, according to the following schedule:
a. on or before:
(A) in each odd-numbered year: January
20th, complete as to December
31st of the previous year; April
20th, complete as to March
31st; July 20th, complete
as to June 30th; and October
20th, complete as to September
30th;
(B) in each even-numbered year: January
20th, complete as to December
31st of the previous year; April
20th, complete as to March
31st; July 20th, complete
as to June 30th; the eighth day preceding a primary;
and the eighth day preceding a biennial state election.
b. Each such candidate participating in a
special election shall file the following additional reports, on or before: the
eighth day preceding a special primary, including a convention or a caucus; the
eighth day preceding a special election; the 30th
day following a special election; and January 20th
of the following year, complete as to the December
31st of the prior year.
3. 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
20th day of January in the following year complete
as to the 31st day of December of the prior year,
and if a town election, the 30th 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.
4. For all other political committees and
candidates relative to city or town elections requiring filing of campaign
finance reports with the city or town clerk, 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 30th day following said election; and
the 20th 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.
5. 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
60th day prior to the election, the subsequent
campaign finance reports required to be filed on the
20th 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
20th 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.
6. 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 20th 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.
7. A separate report shall be filed for each
credit card account of the political committee.
8. 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.
(4)
Expenditures by Electronic
Means
(a) An electronic payment
of a committee's credit card bill or other invoice (e.g., a
payment online, by phone, or by other electronic means) by a candidate or
committee shall be considered a transaction by check for purposes of M.G.L. c.
55, § 9.
(b) Candidates and
committees required to appoint a depository in accordance with M.G.L. c. 55,
§ 19 shall review the expenditure reports filed by their depository bank
and must append the bank's report to accurately disclose the recipient and the
specific purpose of each individual charge comprising an expenditure made by
electronic means. Committees organized on behalf of candidates for the state
senate or house of representatives must append the bank's reports according to
the schedule specified in M.G.L. c. 55, § 19(b)(3). All other committees
must append the bank's reports within seven business days of the date the bank
files a report disclosing an expenditure made by electronic means.
(5)
Recordkeeping
Requirements. Records of all electronic expenditures including all
payments made by credit and debit card shall be maintained pursuant to M.G.L.
c. 55, §§ 2 and 5 and
970 CMR
1.10: Recordkeeping and Disclosure of
In-kind Contributions.