AB497 - Revises provisions relating to campaign finance. (BDR 24-996)

- 83rd Session (2025) Assembly Bill No. 497–Assemblymember Yeager CHAPTER.......... AN ACT relating to campaign finance; authorizing a committee for political action to use money in its campaign finance account for certain purposes; providing that a labor union and certain business organizations and corporations are not a committee for political action for purposes of campaign finance requirements; revising provisions relating to the disposal of unspent campaign contributions; requiring certain persons that are not committees for political action to report certain expenditures; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires every committee for political action to, not later than 1 week after receiving contributions the sum of which, in the aggregate is $1,000 or more, open and maintain a separate account in a financial institution located in the United States for the deposit of any contributions received. (NRS 294A.130) Section 1 of this bill authorizes a committee for political action to use money in the account for certain purposes. Existing law provides that, except in certain circumstances, certain corporations and other business organizations as well as labor unions are excluded from the definition of a “committee for political action.” (NRS 294A.0055) Section 2 of this bill revises the definition of a “committee for political action” to exclude from the definition: (1) any nonprofit organization or nonprofit corporation duly organized under federal law or under the laws of this State, any other state, the District of Columbia or any territory of the United States; (2) all individual corporations and business organizations that have filed certain organizational information with the Secretary of State; and (3) all labor unions. Existing law requires certain persons, committees and political parties to report certain independent expenditures or other expenditures. (NRS 294A.210) Section 3.5 of this bill requires any entity excluded from the definition of “committee for political action” pursuant to section 2 that makes certain expenditures in excess of $1,000 to report such expenditures. Existing law governs the disposition of unspent campaign contributions by a candidate or former public officer. Under existing law, a candidate who is elected to office may use unspent contributions in the candidate’s next election, but a candidate who is defeated is required to dispose of unspent contributions. (NRS 294A.160) Section 3 of this bill authorizes a candidate who is defeated to use unspent contributions in the candidate’s next election. If, within 4 years, such a candidate doesn’t file a declaration of candidacy or appear on an official ballot at any election, section 3 requires the defeated candidate to dispose of unspent contributions. Existing law authorizes certain former public officers who resigned or did not run for reelection to use unspent contributions in a future election. In such a circumstance, existing law requires such unspent contributions to be disposed of within 4 years if the former public officer does not file a declaration of candidacy or appear on the ballot. (NRS 294A.160) Section 3 of this bill instead requires any former public officer to dispose of unspent contributions not later than 15 days after the 4-year period immediately following leaving office. – 2 – - 83rd Session (2025) Section 4 of this bill requires any candidate who was defeated and any former officer who resigned or did not run for reelection who have unspent contributions, and for whom the time period in which he or she is required to dispose of such contributions has yet to expire, to dispose of such contributions not later than October 1, 2029. EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 294A of NRS is hereby amended by adding thereto a new section to read as follows: A committee for political action may use money in the separate account opened and maintained pursuant to subsection 3 of NRS 294A.130 to: 1. Subject to the limitations set forth in NRS 294A.100, make a contribution to a candidate; 2. Make a contribution to a legal defense fund; 3. Make a contribution to a nonprofit corporation; 4. Make a contribution to another committee for political action; 5. Make a contribution to a committee for the recall of a public officer; 6. Make a contribution to a political party or a committee sponsored by a political party; or 7. Make any expenditure, including, without limitation, an independent expenditure. Sec. 2. NRS 294A.0055 is hereby amended to read as follows: 294A.0055 1. “Committee for political action” means: (a) Any group of natural persons or entities that solicits or receives contributions from any other person, group or entity and: (1) Makes or intends to make contributions to candidates or other persons; or (2) Makes or intends to make expenditures,  designed to affect the outcome of any primary election, general election, special election or question on the ballot. (b) [Any] Except as otherwise provided in subsection 2, any business or social organization, corporation, partnership, association, trust [,] or unincorporated organization : [or labor union:] (1) Which has as its primary purpose affecting the outcome of any primary election, general election, special election or any question on the ballot and for that purpose receives contributions in – 3 – - 83rd Session (2025) excess of $1,500 in a calendar year or makes expenditures in excess of $1,500 in a calendar year; or (2) Which does not have as its primary purpose affecting the outcome of any primary election, general election, special election or any question on the ballot, but for the purpose of affecting the outcome of any election or question on the ballot receives contributions in excess of $5,000 in a calendar year or makes independent expenditures in excess of $5,000 in a calendar year. 2. “Committee for political action” does not include: (a) An organization made up of legislative members of a political party whose primary purpose is to provide support for their political efforts. (b) An entity solely because it provides goods or services to a candidate or committee in the regular course of its business at the same price that would be provided to the general public. (c) An individual natural person. (d) [Except as otherwise provided in paragraph (b) of subsection 1, an] An individual corporation or other business organization who has filed articles of incorporation or other documentation of organization with the Secretary of State pursuant to title 7 of NRS. (e) [Except as otherwise provided in paragraph (b) of subsection 1, a] A labor union. (f) A personal campaign committee or the personal representative of a candidate who receives contributions or makes expenditures that are reported as contributions or expenditures by the candidate. (g) A committee for the recall of a public officer. (h) A major or minor political party or any committee sponsored by a major or minor political party. (i) Any nonprofit organization or nonprofit corporation duly organized under federal law or under the laws of this State, any other state, the District of Columbia or any territory of the United States. Sec. 3. NRS 294A.160 is hereby amended to read as follows: 294A.160 1. It is unlawful for: (a) A candidate to spend money received as a contribution: (1) For the candidate’s personal use; or (2) To pay himself or herself a salary. (b) A public officer to spend unspent contributions: (1) For the public officer’s personal use; or (2) To pay himself or herself a salary. 2. Notwithstanding the provisions of NRS 294A.286, a candidate or public officer may use contributions to pay for any – 4 – - 83rd Session (2025) legal expenses that the candidate or public officer incurs in relation to a campaign or serving in public office without establishing a legal defense fund. Any such candidate or public officer shall report any expenditure of contributions to pay for legal expenses in the same manner and at the same time as the report filed pursuant to NRS 294A.120 or 294A.200. A candidate or public officer shall not use contributions to satisfy a civil or criminal penalty imposed by law. 3. Except as otherwise provided in [subsection 5,] this section, every candidate for office at a primary election, general election or special election who is elected to that office and received contributions that were not spent or committed for expenditure before the primary election, general election or special election shall dispose of the money through one or any combination of the following methods: (a) Return the unspent money to contributors; (b) Use the money in the candidate’s next election or for the payment of other expenses related to public office or his or her campaign, regardless of whether he or she is a candidate for a different office in the candidate’s next election; (c) Contribute the money to: (1) The campaigns of other candidates for public office or for the payment of debts related to their campaigns; (2) If the candidate was elected to the office of a Legislator, another member of the Legislature who is authorized to solicit or accept contributions pursuant to NRS 294A.117; (3) A political party; or (4) Any combination of persons or groups set forth in subparagraphs (1), (2) and (3); (d) Donate the money to any tax-exempt nonprofit entity; or (e) Donate the money to any governmental entity or fund of this State or a political subdivision of this State. A candidate who donates money pursuant to this paragraph may request that the money be used for a specific purpose. 4. Except as otherwise provided in subsection 5, every candidate for office at a primary election, general election or special election who withdraws pursuant to NRS 293.202 or 293C.195 after filing a declaration of candidacy [,] or is removed from the ballot by court order [or is defeated for or otherwise not elected to that office] and who received contributions that were not spent or committed for expenditure before the primary election, general election or special election shall, not later than the 15th day of the second month after the election, dispose of the money through one or any combination of the following methods: – 5 – - 83rd Session (2025) (a) Return the unspent money to contributors; (b) Contribute the money to: (1) The campaigns of other candidates for public office or for the payment of debts related to their campaigns; (2) A political party; or (3) Any combination of persons or groups set forth in subparagraphs (1) and (2); (c) Donate the money to any tax-exempt nonprofit entity; or (d) Donate the money to any governmental entity or fund of this State or a political subdivision of this State. A candidate who donates money pursuant to this paragraph may request that the money be used for a specific purpose. 5. Every candidate for office at a special election to recall a public officer shall dispose of the unspent contributions through one or any combination of the methods set forth in subsection 4 not later than the 15th day of the second month following the last day for the candidate to receive a contribution pursuant to NRS 294A.115. 6. Every candidate for office who withdraws after filing a declaration of candidacy, is defeated for that office at a primary election or is removed from the ballot by court order before a primary election or general election and who received a contribution from a person in excess of $5,000 shall, not later than the 15th day of the second month after the primary election or general election, as applicable, return any money in excess of $5,000 to the contributor. 7. Except [for a former public officer who is subject to the provisions of subsection 11, every person who qualifies as a] as otherwise provided in this subsection, every candidate [by receiving one or more qualifying contributions in excess of $100 but who,] who appears on the ballot but is defeated at a primary election or general election may use unspent contributions in the candidate’s next election. Such a candidate is subject to the reporting requirements set forth in NRS 294A.120, 294A.125, 294A.128, 294A.200 and 294A.362 for as long as the candidate has unspent contributions. If, within 4 years [after the date of receiving the first of those qualifying contributions,] , the candidate does not: (a) File a declaration of candidacy; or (b) Appear on an official ballot at any election,  the candidate shall, not later than the 15th day of the month after the end of the 4-year period, dispose of all contributions that have not been spent or committed for expenditure through one or any combination of the methods set forth in subsection 4. – 6 – - 83rd Session (2025) 8. [Except as otherwise provided in subsection 9, every] Every former public officer who [: (a) Does not run for reelection to the office which he or she holds; (b) Is not a candidate for any other office and does not qualify as a candidate by receiving one or more qualifying contributions in excess of $100; and (c) Has] has contributions that are not spent or committed for expenditure remaining from a previous election [, ] shall, not later than [the 15th day of the second month] 15 days after [the expiration of the public officer’s term of] the 4-year period immediately following leaving office, dispose of those contributions in the manner provided in subsection 4. 9. [Every public officer who: (a) Resigns from his or her office; (b) Is not a candidate for any other office and does not qualify as a candidate by receiving one or more qualifying contributions in excess of $100; and (c) Has contributions that are not spent or committed for expenditure remaining from a previous election,  shall, not later than the 15th day of the second month after the effective date of the resignation, dispose of those contributions in the manner provided in subsection 4. 10. Except as otherwise provided in subsection 11, every public officer who: (a) Does not run for reelection to the office which he or she holds or who resigns from his or her office; (b) Is a candidate for any other office or qualifies as a candidate by receiving one or more qualifying contributions in excess o [Text truncated for display. Full text available on LegiScan.]