Background: Contribution and Expenditure Reports. Within two weeks of becoming a candidate, each candidate must designate to the Public Disclosure Commission (PDC) a legally competent individual to serve as the candidate's campaign treasurer. A candidate may serve as their own campaign treasurer. The treasurer is responsible for filing reports with the PDC detailing the campaign's contributions received and expenditures made at the following intervals:

on the tenth day of the month, if the candidate has received a contribution or made an expenditure in the preceding calendar month and either the total contributions received or total expenditures made since the last report exceed $200;
21 days before the election;
seven days before the election; and
on the tenth day of the month following the election.

The report of contributions and expenditures must contain the following information:

funds on hand at the beginning of the reporting period;
the names and addresses of contributors of more than $25 during the period;
loans, promissory notes, or securities to be used by the candidate, including the dates and amounts of loans, and the persons liable for the loan;
the name and address of each person to whom an expenditure was made;
the name and address of each person owed for any debt of at least $250 or, if the debt is outstanding for over 30 days, of at least $50;
the surplus or deficit of contributions over expenditures;
disposition of any surplus funds; and
any other information required by the PDC by rule.

Books of Account. Political committees must maintain books that accurately reflect all contributions and expenditures. The books must be kept current within five business days of a receipt or an expenditure until the last eight days of the campaign, during which time the books must be kept current within one business day of a receipt or an expenditure.Political committees must keep the books open for public inspection on the eighth day before the election for public inspection by appointment between 8:00 a.m. and 8:00 p.m. at a location designated by the committee. Neither the candidate nor a political committee may refuse a request for an appointment, which must be allowed within 24 hours of the date and time requested.

Summary of Bill (Recommended Substitute): On the day a candidate designates their campaign's treasurer, the candidate must also declare whether they will use a credit card for campaign expenditures. A political committee may not make a credit card expenditure unless the committee maintains the credit card statement and records related to payment of the statement in its books of account. If a candidate makes an out-of-pocket expense by credit card for campaign expenses and is not reimbursed by the candidate's authorized committee within 21 days, the candidate is considered to have made a loan to the committee. A third party's payment of a candidate's credit card balance incurred for campaign expenditures is treated as an in-kind contribution to the candidate.

Monthly contribution and expenditure reports must include the following:

the method of payment for each expenditure. If an expenditure is a reimbursement for an out-of-pocket expense, the report must include the amount, date, method of payment, and purpose of the original expenditure being reimbursed;
any credit card balance incurred for campaign-related expenditures; and
sources of funds used to pay the campaign-related credit card balance.

EFFECT OF CHANGES MADE BY GOVERNMENT OPERATIONS & SECURITY COMMITTEE (Recommended Substitute): A political committee may not make a credit card expenditure unless the committee maintains the credit card statement and records related to payment of the statement in its books of account. If a candidate makes an out-of-pocket expense by credit card for campaign expenses and is not reimbursed by the candidate's authorized committee within 21 days, the candidate is considered to have made a loan to the committee. A third party's payment of a candidate's credit card balance incurred for campaign expenditures is treated as an in-kind contribution to the candidate.

Monthly contribution and expenditures reports must include the method of payment for each expenditure. If an expenditure is a reimbursement for an out-of-pocket expense, the report must include the amount, date, method of payment, and purpose of the original expenditure being reimbursed.

The requirement that credit card balances for campaign-related expenditures owed by candidates be paid in full within 30 days is removed.

Staff Summary of Public Testimony on Original Bill: PRO: One can use a credit card for just about anything in a campaign. But in the last couple of campaigns, I’ve had opponents who have used credit cards, and I wondered who was paying for it. If someone doesn’t have assets or a job, it seems like something funny is going on. This is an area of our public disclosure system that needs review, and it would help the public understand what’s going on.

OTHER: The PDC has not taken an official position on the bill. PDC staff is not aware of major complaints, questions, or concerns raised about the issue. Current law addresses these issues, and to make the changes proposed would be a substantial alteration in the way campaigns report and with PDC forms. The PDC has statutory authority to audit campaigns, but doesn't have the resources to perform the audits the PDC used to perform.