Title 032 | Chapter 002 | Regulation 240REG


PROPOSED
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GENERAL GOVERNMENT CABINET
Kentucky Registry of Election Finance
(New Administrative Regulation)

32 KAR 2:240.Administrative hearing procedures.

Section 1.

Definitions.

(1)

"Executive director" means the executive director appointed by the registry pursuant to KRS 121.120.

(2)

"Initiating order" means the document issued by the registry to initiate an administrative proceeding to determine whether there has been a violation as provided by KRS 121.140(5).

Section 2.

Initiating Order.

(1)

If the registry and the respondent fail to reach a conciliation agreement, the registry shall initiate an administrative proceeding by issuing an initiating order to the alleged violator, who shall be referred to as the respondent during the course of the administrative proceeding.

(2)

The initiating order shall:

(a)

Be served on the respondent by certified mail, return receipt requested, or registered mail sent to the last known address of the respondent, or by personal service. Service by certified or registered mail shall be complete upon the date on which the registry receives the return receipt or the returned notice;

(b)

Include a statement that conciliation negotiations have been extended for the maximum period allowed by 32 KAR 2:050 and that the conciliation negotiations were unsuccessful;

(c)

Include a statement of the allegations contained in the original complaint or notice of noncompliance;

(d)

Include the registry's findings of fact and conclusions of law in support of a finding of probable cause, or its notice of noncompliance with reporting requirements pursuant to 32 KAR 2:040, Section 8;

(e)

Include all other information required by KRS 13B.050(3), except for the information required in KRS 13B.050(3)(a) and (b);

(f)

State that all material submitted to the registry by the respondent or the respondent's attorney shall be addressed to the registry;

(g)

State the deadline for submitting an answer and the ramifications of failing to file an answer as provided in Section 4 of this administrative regulation; and

(h)

State that the procedural schedule will be set by a subsequent order after the designation of a hearing officer.

Section 3.

Answer.

(1)

The respondent shall file a written answer to the initiating order with the registry within twenty (20) days of service of the initiating order.

(2)

The answer shall be filed by the:

(a)

Respondent, if no counsel has been retained; or

(b)

Respondent's attorney, if counsel has been retained.

(3)

The answer shall be signed by the respondent or by counsel for respondent.

(4)

The executive director may grant reasonable extensions of time to file an answer at the respondent's request.

Section 4.

Default. If the respondent fails to file a timely answer, the registry may:

(1)

Accept the failure to answer as an admission of the allegations in the initiating order;

(2)

Find that the respondent has engaged in the alleged conduct in violation of KRS Chapter 121;

(3)

Enter a final order of default against the respondent; and

(4)

Levy the appropriate possible penalty allowed under KRS 121.140(5).

Section 5.

Counsel.

(1)

If a respondent has retained counsel, the attorney shall file an entry of appearance with the registry.

(2)

If a respondent has retained counsel, notices, correspondence, and orders relating to the administrative proceeding shall thereafter be transmitted to the attorney instead of the respondent.

Section 6.

Assignment of a Hearing Officer.

(1)

If the respondent files a timely answer, then the registry shall designate a hearing officer.

(2)

The registry shall designate a roster of hearing officers as provided by KRS 13B.030(2)(a) and as dictated by KRS Chapter 45A.

(3)

A person qualified to serve as a hearing officer for the registry shall:

(a)

Maintain the qualifications required by KRS 13B.040;

(b)

Be an attorney in good standing with the Kentucky Bar Association or otherwise have approval by the Kentucky Bar Association to practice law in the Commonwealth of Kentucky;

(c)

Comply with the provisions of 32 KAR 2:080; and

(d)

Not be a current member of the registry board or staff.

(4)

Once the roster of hearing officers is established, the executive director shall randomly assign administrative proceedings initiated by the registry pursuant to KRS 121.140(5) to a hearing officer from the roster of hearing officers.

Section 7.

Hearing Officer.

(1)

After the hearing officer is designated by the registry, the hearing officer shall within ten (10) days of the designation send notice to the parties of the date and time of the first telephonic prehearing conference.

(2)

The hearing officer shall follow the requirements of KRS Chapter 13B for the conduct of administrative hearings.

(3)

All hearings shall be held in person at a location designated by the registry.

Section 8.

Settlement.

(1)

At any time during the proceedings, the registry's counsel may enter into informal settlement procedures pursuant to KRS 13B.070 with the respondent.

(2)

An agreed order or settlement reached through this process shall be reviewed by the registry and, upon approval by the registry, shall be signed by the registry chairman and the respondent.

(3)

The registry shall not approve a settlement that provides for the confidentiality of:

(a)

The existence of the settlement; or

(b)

Any of the terms of the settlement.

Section 9.

Ex Parte Communications. Once an administrative proceeding has commenced, the registry, its executive director, registry counsel, the respondent, respondent's counsel, or other person acting on behalf of the respondent shall not initiate, participate in, or consider ex parte communications concerning the subject matter of a hearing or a related issue of fact or law, except upon notice and opportunity for all parties to participate.

Section 10.

Record to be Maintained.

(1)

The hearing shall be transcribed by a court stenographer or recorded by means of electronic media.

(2)

A transcript or electronic media copy of the testimony taken during the hearing shall:

(a)

Be kept by the registry;

(b)

Be available to the respondent upon request and payment of the appropriate fee; and

(c)

Be available to all registry board members.

(3)

Any documents or exhibits introduced into evidence shall be kept with the transcript or copy of the electronic media recording of the hearing or as ordered by the hearing officer.

JOHN R. STEFFEN, Executive Director
APPROVED BY AGENCY: June 10, 2026
FILED WITH LRC: June 10, 2026 at 2:12 p.m.
CONTACT PERSON: Leslie Saunders, General Counsel, Kentucky Registry of Election Finance, 140 Walnut Street, Frankfort, Kentucky 40601, phone (502) 573-2226, fax (502) 573-5622, email LeslieM.Saunders@ky.gov.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Leslie Saunders, General Counsel, Kentucky Registry of Election Finance, Phone: (502) 573-2226, Email: LeslieM.Saunders@ky.gov
Subject Headings:
Election Finance, Elections and Voting, Administrative Hearing Procedures
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes procedures to govern administrative hearings before the Registry of Election Finance ("Registry").
(b) The necessity of this administrative regulation:
This administrative regulation is necessary because KRS 121.140(4) requires the Registry to conduct an administrative hearing if an alleged violator declines to accept a conciliation agreement or fails to respond within the time allowed.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 121.120(1)(g) grants the Registry the authority to "promulgate administrative regulations necessary to carry out the provisions of this chapter[.]"KRS 121.140(4) requires the Registry to conduct administrative hearings when necessary pursuant to the provisions of KRS Chapter 13B. This administrative regulation establishes procedures to govern those hearings.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation will assist in the administrative hearing process under KRS Chapter 13B, which is used to determine whether KRS Chapter 121 has been violated. While this administrative regulation is new, it replaces 32 KAR 2:210, which established procedural guidelines for the Registry’s prior hearing process, which was amended by 2024 HB 595 (2024 Ky. Acts Ch. 107). The provisions of KRS Chapter 13B now apply to all Registry administrative hearings.
(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:
This administrative regulation is new.
(b) The necessity of the amendment to this administrative regulation:
This administrative regulation is new.
(c) How the amendment conforms to the content of the authorizing statutes:
This administrative regulation is new.
(d) How the amendment will assist in the effective administration of the statutes:
This administrative regulation is new.
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
Yes. 2024 HB 595 (2024 Ky. Acts Ch. 107).
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
Candidates, committees, and contributing organizations charged with violating KRS Chapter 121 are potentially affected by this administrative regulation.
(5) Provide an analysis of how the entities identified in question (4) 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 (4) will have to take to comply with this administrative regulation or amendment:
Regulated entities charged with violating KRS Chapter 121 will use this regulation as guidance during the administrative hearing process.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
The entities will incur no additional costs in complying with the regulation.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
Compliance will assist the entities with the administrative hearing process.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There will be no initial cost to the administrative body to implement this administrative regulation.
(b) On a continuing basis:
There will be no cost on a continuous basis to the administrative body to implement this administrative regulation.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
While no additional funding will be required for the implementation and enforcement of this administrative regulation, the administrative body operates solely on General Funds.
(8) 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:
It will not be necessary to increase fees or funding to implement this administrative regulation.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
No fees will be established or increased.
(10) TIERING: Is tiering applied?
This administrative regulation does not apply tiering because these general provisions apply equally to any regulated individual or entity who is charged with violating KRS Chapter 121.

FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 121.120(1)(g) and 121.140
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
Yes, 2024 HB 595 (2024 Ky. Acts Ch. 107).
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Kentucky Registry of Election Finance is the promulgating agency. No other state units, parts, or divisions are affected.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
This administrative regulation will not result in any additional expenditures by the Registry for the first year.
For subsequent years:
This administrative regulation will not result in any additional expenditures by the Registry for subsequent years.
2. Revenues:
For the first year:
This administrative regulation will not generate revenue for the Registry for the first year.
For subsequent years:
This administrative regulation will not generate revenue for the Registry for subsequent years.
3. Cost Savings:
For the first year:
This administrative regulation will not generate any cost savings for the Registry for the first year.
For subsequent years:
This administrative regulation will not generate any cost savings for the Registry for subsequent years.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
This administrative regulation will not affect local entities
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
No local entities are affected.
For subsequent years:
No local entities are affected.
2. Revenues:
For the first year:
No local entities are affected.
For subsequent years:
No local entities are affected.
3. Cost Savings:
For the first year:
No local entities are affected.
For subsequent years:
No local entities are affected.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
The administrative regulation will affect candidates, committees, and contributing organizations as defined in KRS 121.015 who are charged with violating KRS Chapter 121.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
This administrative regulation will not result in any additional expenditures for the first year.
For subsequent years:
This administrative regulation will not result in any additional expenditures for subsequent years.
2. Revenues:
For the first year:
This administrative regulation will not generate revenue for the first year.
For subsequent years:
This administrative regulation will not generate revenue for subsequent years.
3. Cost Savings:
For the first year:
This administrative regulation will not generate any cost savings for the first year.
For subsequent years:
This administrative regulation will not generate any cost savings for subsequent years. (6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a),and (5)(a):
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
There are no fiscal impacts as the regulation only establishes procedures to govern administrative hearings before the Registry.
(b) Methodology and resources used to reach this conclusion:
A review of the criteria of the administrative regulation: the regulation does not have any fiscal impacts to any entity, including the Registry.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
This administrative regulation will not have a major economic impact.
(b) The methodology and resources used to reach this conclusion:
This administrative regulation has no fiscal impact thus no methodology was applied nor resource analysis undertaken to determine that there is not a "major economic impact."

7-Year Expiration: 6/12/2033


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