Rule 1-07 Funds Originally Received for Other Elections

(a) Use. Funds originally received by a committee not otherwise involved in a covered election may be used in a covered election subject to the requirements of this rule, but may not be claimed as matchable contributions for that election.

(b) Surplus funds. The Board deems the cash balance reported in the candidate's first semi-annual form or Board disclosure statement at the beginning of the first reporting period for an election to be the total amount of surplus funds the committee had from a previous election; except that the amount deemed to be surplus funds may be reduced by the following: (1) the total amount of debts and obligations outstanding at the beginning of the reporting period; (2) the total amount subsequently transferred to a political committee that is not involved in a covered election; and (3) if the candidate was a participant in the previous election, the total amount of public funds subsequently repaid.

When requested by the Board, candidates shall provide additional information regarding totals and transactions reported in State forms or Board disclosure statements.

(c) Contribution limit; prohibited contributions. Candidates have the burden of demonstrating that surplus funds and transfers of funds from committees not otherwise involved in the covered election do not derive from: (1) contributions in excess of the Act's contribution limits, including contributions that would exceed the Act's contribution limits when aggregated with other contributions accepted from the same source; or (2) contributions from sources prohibited by the Act or the Charter. In addition, participants have the burden of demonstrating that funds transferred from a committee, other than another principal committee of the same candidate, derive solely from contributions for which records demonstrating the contributors' intent to designate the contributions for the covered election have been submitted and maintained as required pursuant to Rules 3-03(c)(2) and 4-01(b) (4), respectively.

For purposes of enforcing the contribution limit and contribution prohibitions, the Board shall attribute surplus funds and such transfers to the last monetary contributions, loans, and other receipts received by 1. the candidate on or before the date of the cash balance described in subdivision (b), in the case of surplus funds; or 2. the transferor committee before making the transfer. The candidate shall either promptly return the portion of any contribution that exceeds the Act's contribution limit or violates a prohibition of the Act or Charter, as provided in Rule 1-04(c)(1), or deposit the excess portion or amount of the prohibited contribution, as the case may be, into a separate account not to be used in a covered election.

(d) Related expenditures. Expenditures made in connection with raising or administering funds transferred from a committee not otherwise involved in a covered election are subject to the expenditure limits of the Act and shall be reported as provided in Rule 3-03(c)(2). As provided for in Rule 1-08(o), the participant shall have the burden of demonstrating that any expenditures incurred by the transferor committee are not subject to the expenditure limits of the Act.