N.R.S. 294A.160 - Personal use by candidate prohibited; use authorized for certain legal expenses; disposition of unspent contributions; penalty.
Overview of Statute
This section prohibits personal use of campaign funds by a candidate.
Statute
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 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, 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) A political party; or
(3) Any combination of persons or groups set forth in subparagraphs (1) and (2);
(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, 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:
(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 candidate by receiving one or more qualifying contributions in excess of $100 but who, within 4 years after the date of receiving the first of those qualifying contributions, does not:
(a) File a declaration of candidacy; or
(b) Appear on an official ballot at any election, 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.
8. Except as otherwise provided in subsection 9, every 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 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 expiration of the public officer’s term of 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 of $100; and
(c) Has contributions that are not spent or committed for expenditure remaining from a previous election, may use the unspent contributions in a future election. Such a public officer 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 public officer is a candidate for any office or qualifies as a candidate by receiving one or more qualifying contributions in excess of $100.
11. Every former public officer described in subsection 10 who qualifies as a candidate by receiving one or more qualifying contributions in excess of $100 but who, within 4 years after the date of receiving the first of those qualifying contributions, does not:
(a) File a declaration of candidacy; or
(b) Appear on an official ballot at any election, 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.
12. In addition to the methods for disposing of the unspent money set forth in this section, a Legislator may donate not more than $500 of that money to the Nevada Silver Haired Legislative Forum created pursuant to NRS 427A.320.
13. Any contributions received before a candidate for office at a primary election, general election or special election dies that were not spent or committed for expenditure before the death of the candidate must be disposed of in the manner provided in subsection 4.
14. The court shall, in addition to any penalty which may be imposed pursuant to NRS 294A.420, order the candidate or public officer to dispose of any remaining contributions in the manner provided in this section.
15. As used in this section:
(a) “Contribution” includes, without limitation, any interest and other income earned on a contribution.
(b) “Qualifying contribution” means the receipt of a contribution that causes a person to qualify as a candidate pursuant to subsection 3 of NRS 294A.005.
(Added to NRS by 1991, 1922; A 1997, 244; 2001, 3028; 2003, 3004; 2011, 880, 2110, 3302; 2013, 1343, 2392; 2015, 1179; 2019, cc.288, 546, 604.)
1. Definition for Contribution
1. “Contribution” means a gift, loan, conveyance, deposit, payment, transfer or distribution of money or of anything of value other than the services of a volunteer, and includes:
(a) The payment by any person, other than a candidate, of compensation for the personal services of another person which are rendered to a:
(1) Candidate;
(2) Person who makes an independent expenditure; or
(3) Committee for political action, political party or committee sponsored by a political party which makes an expenditure for or against a candidate or group of candidates, without charge to the candidate, person, committee or political party.
(b) The value of services provided in kind for which money would have otherwise been paid, such as paid polling and resulting data, paid direct mail, paid solicitation by telephone, any paid paraphernalia that was printed or otherwise produced to promote a campaign and the use of paid personnel to assist in a campaign.
2. As used in this section, “volunteer” means a person who does not receive compensation of any kind, directly or indirectly, for the services provided to a campaign.
See Nev. Rev. Stat. § 294A.007.
2. Definition for Political Party
Any minor or major political party.
See Nev. Rev. Stat. § 293.073.
3. Definition for General election
The election held pursuant to NRS 293.12755.
See Nev. Rev. Stat. § 293.060.
4. Definition for Primary election
The election held pursuant to NRS 293.175.
See Nev. Rev. Stat. § 293.080.
5. Definition for Legal defense fund
An account established to defray attorney’s fees or other legal costs incurred by a candidate or public officer if such a candidate or public officer becomes subject to any civil, criminal or administrative claim or proceeding arising from a campaign, the electoral process or the performance of official duties.
See Nev. Rev. Stat. § 294A.0078.
6. Definition for State
A state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States.
See Nev. Rev. Stat. § 293D.080.
7. Definition for Ballot
The record of a voter’s preference of candidates and questions voted upon at an election. The term includes, without limitation, any paper given to a voter upon which the voter places his or her vote and any electronic storage tapes.
See Nev. Rev. Stat. § 293.025.
8. Definition for Person
1. A natural person;
2. Any form of business or social organization;
3. Any nongovernmental legal entity, including, without limitation, a corporation, partnership, association, trust, unincorporated organization, labor union, committee for political action, political party and committee sponsored by a political party; or
4. A government, governmental agency or political subdivision of a government.
See Nev. Rev. Stat. § 294A.009.
9. Definition for Candidate
Any person:
1. Who files a declaration of candidacy;
2. Who files an acceptance of candidacy;
3. Whose name appears on an official ballot at any election; or
4. Who has received one or more contributions in excess of $100, regardless of whether:
(a) The person has filed a declaration of candidacy or an acceptance of candidacy; or
(b) The name of the person appears on an official ballot at any election.
See Nev. Rev. Stat. § 294A.005.
Regulations & Guidance
Attorney General's Opinions
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AGO 2002-23 (2002) Pursuant to NRS 294A.160, a candidate is prohibited from spending money received as a campaign contribution for his "personal use." Although "personal use" is not defined in NRS 294A.160, the legislative history surrounding that section that section indicates the legislature intended to disallow expenditures of campaign monies for typical personal and household expenses such as food, clothing, rent, utilities and the like. In addition, federal law and persuasive authority from other states indicate as a more general rule, that NRS 294A.160 prohibits the use of funds in a campaign account if the particular use would fulfill a commitment, obligation or expense that would exist irrespective of the candidate's campaign or duties as an officeholder. In applying the analysis of whether a given use of campaign funds would exist irrespective of a candidate's campaign or duties as an officeholder, each item or expense must be analyzed individually. Employing the analysis of determining whether a particular use of campaign funds would fulfill a commitment, obligation or expense that would exist irrespective of a candidate's campaign or duties as an officeholder, the use of campaign funds by a public officer to pay attorney fees for defending the officer against an ethics violation charge would not constitute "personal use" of those funds in violation of NRS 294A.160. In contrast to a charge of a crime such as armed robbery, an ethics violation charge may be related directly to a candidate's campaign or duties as an officeholder. Thus, the cost of defending an ethics violation charge would likely not be an expense that exists irrespective of a candidate's campaign or duties as an officeholder.
Additional Resources
Notes from "State of Nevada Elections 2015," published on January 1, 2016, by Barbara K. Cegavske, Nevada Secretary of State.
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Subsection 2 of this section was moved in revision from NRS 294A.286 as amended by section 54, chapter 501, Statutes of Nevada 2011, at p. 3302. Ch. 249, Stats. 2015, which amended this section, contains the following provisions not included in NRS: "Sec. 3. 1. Notwithstanding the provisions of NRS 294A.160, as amended by section 2 of this act, or any other provisions of law, a former public officer shall, on or before September 30, 2017: (a) File a declaration of candidacy or acceptance of candidacy; (b) Appear on an official ballot at any election held in the State; or (c) Dispose of unspent contributions through one or any combination of the methods set forth in subsection 4 of NRS 294A.160. 2. A former public officer is subject to the reporting requirements set forth in chapter 294A of NRS for as long as the former public officer has unspent contributions. The provisions of this subsection apply to contributions remaining from a previous election and contributions that the former public officer has received since the expiration of his or her term of office. 3. A former public officer who violates a provision of this section is subject to the same penalties and procedure as if the person had violated the provisions of chapter 294A of NRS. In enforcing the provisions of this section, the Secretary of State has the powers prescribed in NRS 294A.410 and 294A.420. 4. As used in this section: (a) "Contribution" has the meaning ascribed to it in NRS 294A.007 and includes, without limitation, any interest and other income earned on a contribution. (b) "Former public officer" means a person who, on October 1, 2015: (1) Previously held a state, district, county, city or township office; (2) Does not currently hold that or any other office; and (3) Has contributions that are not spent or committed for expenditure remaining from a previous election."