D.C. Mun. Regs. tit. 3, r. 3-3015

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 3-3015 - USE OF SURPLUS FUNDS

3015.1

Surplus funds of a constituent-service program (except for that of an at- large council member who has been elected to the office of Chairman of the Council) or a Statehood Fund shall be disbursed within one hundred twenty (120) days of the date that the elected official:

(a) Vacates the public office held; or

(b) Notifies the Director in writing of any determination that the constituent-service program or Statehood Fund shall no longer receive contributions or make expenditures.

3015.2

Surplus funds of a constituent-service program shall be disbursed only for the following purposes:

(a) To retire the debts of the program; and/or

(b) To donate to a not- for-profit organization, within the meaning of the federal tax laws, that is in good standing in the District of Columbia for a minimum of one (1) calendar year prior to the date of donation.

3015.3

Surplus funds of a Statehood Fund shall be disbursed by a U.S. Senator or Representative to retire debts and obligations for the following:

(a) Salaries;

(b) Office expenses; and

(c) Other expenses necessary to support the purposes and operations of the public office.

3015.4

Upon retirement of debts and obligations, a U.S. Senator or Representative shall donate any remaining funds to a not-for-profit organization within the meaning of the federal tax laws.

3015.5

Surplus funds of a candidate or candidate-elect shall be disbursed to the donors within six (6) months of one (1) of the following events:

(a) Used to retire the debts of the committee that received the funds;

(b) Returned to donors;

(c) Contributed to a political party for political purposes; and/or

(d) Transferred to a political committee, a charitable organization that meets the requirements of the tax laws of the District of Columbia, or in the case of an elected official, an established constituent-services fund.

3015.6

Surplus campaign funds of a principal campaign committee received by or on behalf of a candidate shall be:

(a) Contributed to a political party for political purposes;

(b) Use funds to retire the proper debts of the candidate's political committee that received funds, within twelve (12) months after an election; otherwise, the candidate shall be personally liable for any remaining debts; provided, that:

(1) Personal liability shall not attach until the Office of Campaign Finance is no longer auditing the principal campaign committee; and

(2) Any loans made by a candidate to support his or her campaign may only be repaid up to the amount of twenty- five thousand ($25,000) dollars;

(c) Transferred to:

(1) A political committee;

(2) A nonprofit organization within the meaning of section 501 (c) of the Internal Revenue Code, operating in good standing in the District for a minimum of one (1) calendar year before the date of any transfer; or

(3) An established constituent service program for the office of Mayor or a Councilmember: or

(d) Returned to the donors as follows:

(1) Within six (6) months after the election in which an individual was defeated in an election;

(2) Within six (6) months after the election in which an individual as elected to public office; and

(3) Within six (6) months after an individual cease to be a candidate.

3015.7

Surplus funds of a committee formed to collect signatures or advocate the ratification or defeat of any initiative, referendum, or recall measure may be transferred to any charitable, scientific, literary, or educational organization or any other organization that meets the requirements of the tax laws of the District of Columbia.

3015.8

A campaign committee shall continue to function after the election for which the committee was organized, as a political committee, until all debts and obligations are extinguished.

3015.9

A campaign committee, pursuant to § 3015.8, shall:

(a) Dispose of all surplus funds in accordance with § 3015;

(b) Refrain from collecting or spending money to support a candidate in a future election;

(c) Adhere to contribution limitations in accordance with § 3011; and

(d) File R&E Reports in accordance with § 3008.

3015.10

A constituent-service program or a Statehood Fund shall continue to file R&E Reports, pursuant to §§ 3008 and 3017, until all debts are satisfied.

3015.11

Use of surplus funds under § 3015 shall not apply to candidates seeking certification and participating in the Fair Elections Program, who are subject to the requirements of § 4211.

3015.12

No public official elected to office shall fundraise after six (6) months after the election to retire the proper debts of the public official's political committee.

D.C. Mun. Regs. tit. 3, r. 3-3015

Final Rulemaking published at 45 DCR 3161, 3178-80 (May 20, 1998); as amended by Final Rulemaking published at 47 DCR 2171, 2182-83 (March 24, 2000); as amended by Final Rulemaking published at 57 DCR 2229, 2247 (March 19, 2010); as amended by Final Rulemaking published at 60 DCR 1402 (February 8, 2013); as amended by Final Rulemaking published at 60 DCR 11864 (August 16, 2013); Amended by Final Rulemaking published at 62 DCR 3025 (3/13/2015); amended by Final Rulemaking published at 66 DCR 8118 (7/12/2019); amended by Final Rulemaking published at 66 DCR 15416 (11/22/2019)

Authority: D.C. Official Code § 1-1001.05(a)(14), in conformity with the Board of Ethics and Government Accountability Establishment and Comprehensive Ethics Reform Amendment Act of 2011, enacted February 27, 2012 (D.C. Act 19-318; D.C. Official Code § 1-1161.01 et seq. (2012 Supp.)).