REQUESTED BY: The Honorable John W. DeCamp, State Senator, Room 1116 State Capitol, Lincoln, Nebraska 68509
QUESTION: 1. May candidate committee funds be invested in interest bearing and other securities and in tangible personal property such as valuable coins?
2. If so, what are the reporting requirements?
2. See analysis for reporting requirements.
There is no prohibition in the Nebraska Political Accountability and Disclosure Act to the investment of committee funds.
When campaign funds are used to purchase securities or other property, such purchases are "expenditures" within the meaning of the Act, and must be reported in the same manner as any other expenditures.
When interest is received from such investments, the interest is to be reported as interest on Line 12, Summary of Receipts, NADC Form B-1.
When the security or other property is sold by the candidate committee, the proceeds are not contributions but an adjustment for cash receipts on line 7, Cash Balance Summary, NADC Form B-1 to be explained in the space provided for such adjustments on the last page of the B-1.
All transactions must be reflected in the committee's official depository account. An investment may not be made except from funds deposited in or transferred to that account, and in order to make an expenditure, an investment account or the proceeds of a sale or conversion of other assets must be transferred back to the official depository account. Sections 49-1445(3), 49-1447 and 49-1471.