Expenditures Subject to Expenditure Limitations

(1) General. Candidates and political committees may pay and expend money or other thing of value including funds received pursuant to M.G.L. c. 55C, receive in-kind contributions and incur liabilities, for reasonable and necessary expenses directly related to the campaign of such candidates provided such expenditures, in-kind contributions and liabilities comply with M.G.L. c. 55, § 6, 970 CMR 2.06: Expenditures by Candidates and Political Committees and 970 CMR 4.00. (a) Primary Election Campaign. All expenditures made, in-kind contributions received and liabilities incurred, other than liabilities incurred as a result of loans made by a candidate to that candidate's committee in accordance with M.G.L. c. 55, § 7, during the primary election campaign whether or not such expenditures, contributions or liabilities comply with M.G.L. c. 55, c. 55C, 970 CMR or any other law or regulation shall count toward the campaign expenditure limit, if any, of the primary election campaign except as provided in 970 CMR 4.11(2). In addition, all expenditures made, in-kind contributions received or liabilities incurred, other than liabilities incurred as a result of loans made by a candidate to that candidate's committee in accordance with M.G.L. c. 55, § 7, prior to the primary election campaign for goods or services used during the primary election campaign, shall count toward such expenditure limit. (b) General Election Campaign. All expenditures made, in-kind contributions received and liabilities incurred, other than liabilities incurred as a result of loans made by a candidate, including a candidate for governor or a candidate for lieutenant governor of a candidate team to that candidate's committee in accordance with M.G.L. c. 55, § 7, during the general election campaign whether or not such expenditures, contributions or liabilities comply with M.G.L. c. 55 and 970 CMR shall count toward the campaign expenditure limit, if any, of the general election campaign of such candidate or candidate team except as provided in 970 CMR 4.11(2). In addition, all expenditures made, in-kind contributions received or liabilities incurred, other than liabilities incurred as a result of loans made by a candidate, including a candidate for governor or a candidate for lieutenant governor of a candidate team, to that candidate's committee in accordance with M.G.L. c. 55, § 7, prior to the general election campaign for goods or services used during the general election campaign, shall count toward such expenditure limit. Exempt Expenditures. A candidate may elect to exempt from the primary or general election campaign expenditure limit, if any, expenditures made, in-kind contributions received or liabilities incurred prior to or during the relevant election period for goods and services which comply with 970 CMR 4.11(2)(a) through (f). To qualify as an exempt expenditure, a candidate must demonstrate that an expenditure meets the requirements of 970 CMR 4.11(2). Exempt expenditures include: (a) Candidate's Bond. The cost of obtaining the bond required by M.G.L. c. 55C, § 9. (b) Capital Goods. Expenditures made, in-kind contributions received and liabilities incurred for capital goods that have a useful life of more than one year, would be depreciable in a usual business environment, and have a cost or value of $1,000 or more at the time of acquisition. (c) Legal Services. Expenditures made, in-kind contributions received or liabilities incurred for legal services and other related services solely in connection with one's interest in being a candidate such as proceedings before the director, hearings before the state ballot law commission and petitions for recounts. Such exempt expenditures, in-kind contributions and liabilities under 970 CMR 4.11(2)(c) shall not include: 1. prorated expenses for administration and overhead; 2. the cost of maintaining accounts or records; or 3. the cost of preparing and filing reports, affidavits and statements required by M.G.L. c. 55, c. 55C and 970 CMR. (d) Liabilities. Expenditures made or in-kind contributions received to satisfy liabilities incurred during the primary election campaign or the general election campaign for goods or services not used in such campaign. (e) Unused Goods and Services. Expenditures made, in-kind contributions received or liabilities incurred for goods or services which are not used during the campaign election period when purchased provided, however, that such expenditures, contributions or liabilities shall be considered campaign expenditures for the primary or general election campaign in which such goods or services are used. (f) Election Night Party. Expenditures made, in-kind contributions received or liabilities incurred solely for goods or services provided in connection with a party held after the primary election by any candidate whose name will not appear on the ballot at the subsequent general election or provided in connection with a party held after the general election by any candidate. (3) Prorated Expenditures. Expenditures made, in-kind contributions received or liabilities incurred for goods and services which are used in both the primary election campaign and the general election campaign shall be allocated between the primary and general election campaigns on a 50-50 basis unless the candidate can document with detailed accounts and records an allocation of any such goods and services based upon time, space, use of materials or other objective basis.