2 KAR 2:010reg. Required forms

      Section 1. Definition[Definitions]. "Personal expenses" means expenses that are not:

      (1) Reimbursable to the legislative agent by the employer; or

      (2) Deductible as a business expense under the Internal Revenue Code.

 

      Section 2. Initial Registration Form. Within seven (7) days of engagement of a legislative agent and to renew a registration that has expired as set out in KRS 6.807(2), the legislative agent and employer shall complete and sign the Initial Legislative Agent/Employer Registration Statement.

 

      Section 3. Employer's Forms. (1) An[The] employer shall complete the [include the information specified by this section on the:

      (a) "]Employer's Updated Registration Statement[";] and

      [(b) "]Employer's Notice of Termination of Engagement forms in accordance with this section["].

      (2)(a) Source of [funds and financial resources that are designated primarily for lobbying-related expenditures shall include the name and address of the contributor.

      (b) Lobbying-related funds obtained from a pro rata assessment for general membership dues by an association shall not require the reporting of the names and addresses of members.

      (c)] funds and financial resources shall[may] be reported by types of categories, such as "membership dues", "contributions", "grants", or "interest"[, and "scholarships"].

      (b)[(d)] Records shall be maintained that will allow[in such a way that] a more detailed accounting to[can] be made if requested.

      (c) Expenditures shall be reported using the accrual accounting method.

      (d) Expenditures reported shall not include personal expenses.

 

      Section 4. Legislative Agent’s Forms. (1) A legislative agent shall complete the Legislative Agent’s Updated Registration Statement and Legislative Agent’s Notice of Termination of Engagement forms in accordance with this section.

      (2)(a) Records shall be maintained that will allow a more detailed accounting to be made if requested.

      (b) Expenditures shall be reported using the accrual accounting method.

      (c) Expenditures reported shall not include personal expenses.

 

      Section 5. Filing Schedule. Updated Registration Statement forms shall be filed in accordance with the schedule set out in KRS 6.807(3). Notice of Termination of Engagement forms shall be filed within thirty (30) days after termination as required by KRS 6.807(5).

 

      Section 6.[3.] The completed Initial Legislative Agent/Employer Registration Statement[registration forms and termination forms required by KRS 6.807] shall be mailed or delivered to the Kentucky Legislative Ethics Commission, 22 Mill Creek Park, Frankfort, Kentucky 40601. All other registration and termination forms required by KRS 6.807 shall be filed electronically at www.klec.ky.gov unless the employer or legislative agent is unable to use electronic filing. If electronic filing is not possible, the forms shall be mailed or delivered to the commission.

 

      Section 7.[4.] Incorporation by Reference. (1) The following material is[documents are] incorporated by reference:

      (a) "Initial Legislative Agent/Employer Registration Statement", 10/16[(03/01)"];

      (b) "Legislative Agent's Updated Registration Statement", 10/16[(03/01)"];

      (c) "Legislative Agent's Notice of Termination of Engagement", 10/16[(03/01)"];

      (d) "Employer's Updated Registration Statement", 10/16[(03/01)"]; and

      (e) "Employer's Notice of Termination of Engagement", 10/16[(03/01)"].

      (2) This material[These documents] may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Legislative Ethics Commission, 22 Mill Creek Park, Frankfort, Kentucky 40601,[8 a.m. to 4:30 p.m.,] Monday through Friday, 8:00 a.m. to 4:30 p.m.

 

JOHN SCHAAF, Executive Director

      APPROVED BY AGENCY: June 15, 2016

      FILED WITH LRC: June 15, 2016 at 11 a.m.

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on July 21, 2016 at 9:00 a.m. at the Legislative Ethics Commission, 22 Mill Creek Park, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing five workdays prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until close of business, August 1, 2016. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: Kara L. Daniel, Counsel, Kentucky Legislative Ethics Commission, 22 Mill Creek Park, Frankfort, Kentucky 40601, phone [phone], fax [phone].

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Kara Daniel

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This regulation incorporates by reference forms that are required to be filed by legislative agents and employers and provides information about completion and submission of the forms.

      (b) The necessity of this administrative regulation: It is necessary to comply with the requirements of KRS 6.666, 6.807, and 6.829 and to reflect an amendment to KRS 6.611(22).

      (c) How this administrative regulation conforms to the content of the authorizing statutes: This regulation sets out prescribed forms that are statutorily authorized and required for legislative agents and employers.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: The regulation and material incorporated by reference sets out forms that are required to be filed by legislative agents and employers to register and provide information to KLEC as required by statute.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: The amendment updates the forms and instructions for completion.

      (b) The necessity of the amendment to this administrative regulation: To conform to the requirements of KRS 6.666, 6.807, and 6.829 and to reflect an amendment to KRS 6.611(22).

      (c) How the amendment conforms to the content of the authorizing statutes: It updates the prescribed forms for legislative agents and employers to register and report information required by statute.

      (d) How the amendment will assist in the effective administration of the statutes: The amendment provides additional guidance for completing the prescribed forms and updates the forms to make them clearer and easier to complete.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: This affects the KLEC, 565 legislative agents, and 684 employers of legislative agents.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Legislative agents and employers will have to complete the revised forms in accordance with the requirements in the regulation and statutes.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): An exact cost of compliance is unknown, but it is not anticipated that the amendment to this administrative regulation will increase current costs.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): The KLEC will receive the information required by statute in a uniform format and legislative agents and employers will benefit from instructions and forms that enable them to easily comply with statutory requirements.

      (5) Provide an estimate of how much it will cost to implement this administrative regulation:

      (a) Initially: No increase in fees or funding is anticipated.

      (b) On a continuing basis: No increase in fees or funding is anticipated.

      (6) What is the source of funding to be used for the implementation and enforcement of this administrative regulation: Kentucky Legislative Ethics Commission budgeted funds for the biennium.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change, if it is an amendment: No increase in fees or funding is anticipated.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This regulation does not establish fees or directly or indirectly increase fees.

      (9) TIERING: Is tiering applied? No, tiering was not appropriate in this administrative regulation because the administrative regulation applies equally to all those individuals or entities regulated by it.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      (1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The amendments to this regulation impact the Kentucky Legislative Ethics Commission.

      (2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 6.666, 6.807, and 6.829.

      (3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? The amendments to this regulation do not create any additional revenue for the Kentucky Legislative Ethics Commission or other government entity.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? The amendments to this regulation do not create any additional revenue for the Kentucky Legislative Ethics Commission or other government entity.

      (c) How much will it cost to administer this program for the first year? The amendments are not expected to increase costs for the Kentucky Legislative Ethics Commission budgeted funds for the biennium.

      (d) How much will it cost to administer this program for subsequent years? The amendments are not expected to increase costs for the Kentucky Legislative Ethics Commission budgeted funds for the biennium.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: The amendments only affect the format of required forms and the information gathered. They are not expected to have any fiscal impact.

Notation

      RELATES TO: KRS 6.666(6)-(13), 6.807, 6.821, 6.824, 6.827, 6.829(3)

      STATUTORY AUTHORITY: KRS 6.666(5), (6)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 6.666(5) and (6) require the commission to promulgate administrative regulations to implement KRS 6.601 to 6.849 and to prescribe required forms. KRS 6.807 requires each legislative agent and employer to file an initial registration statement, periodic updated registration statements, and a notice of termination of engagement. KRS 6.829(3) requires the commission to prescribe appropriate forms to file the information required by KRS 6.807[engagements]. This administrative regulation incorporates by reference the required forms.