Expenditures by Debit Card, Credit Card, or Wire Transfer

(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.