Current through Register Vol. XLI, No. 19, May 10, 2024
Section 146-1-4 - ExceptionsThe provisions of Section 3 of this rule shall not be deemed to prohibit:
4.1. Expenditures made for public editorials or commentaries produced in the ordinary course of business by corporations whose primary purpose is journalism or public communications.4.2. Direct communications by a corporation or membership organization to its restricted group on any subject by any means not intended to reach the general public. Such communications by a corporation or membership organization to its restricted group may be made by, but are not limited to, the following means: 4.2.1. The distribution of printed material by a corporation or membership organization to its restricted group: Provided, that:4.2.1.a. The material is disseminated at the expense of the corporation or membership organization; and4.2.1.b. The material clearly states that it constitutes a communication of the views of the corporation or membership organization.4.2.2. The allowing of a candidate or party representative to address the restricted group of the corporation or membership organization at any meeting, convention or other regularly scheduled function of the corporation or membership organization which is primarily held for other purposes. The corporation or membership organization shall pay no compensation whatsoever to such candidates. The candidate or party representative may address members of the restricted group in their individual rather than corporate or membership organization capacities, and may at such time ask for individual contributions to his or her campaign or party, ask that such contributions to be sent to his or her campaign or party, or ask that contributions to a separate segregated fund of a corporation or membership organization be designation for his or her campaign or political party committee.4.2.3. The establishment and operation of phone banks by a corporation or membership organization to communicate with its restricted group urging them to register and/or vote for a particular candidate or candidates.4.2.4. The conducting of nonpartisan registration and get-out-the-vote drives, as by providing transportation to the polls, by a corporation or membership organization aimed at its restricted group. If a registration drive is undertaken, assistance in registering or voting may not be withheld or refused on a partisan basis, and if transportation or other services are offered in connection with a registration or get-out-the-vote drive, such transportation or services may not be withheld or refused on a partisan basis.4.3. Establishment and administration of a separate segregated fund of a corporation or membership organization. A separate segregated fund of a corporation or membership organization or persons acting on its behalf may, subject to the authorization of such corporation or membership organization, use the real or personal property, facilities and equipment of any corporation that participated in the establishment or participates in the administration or solicits contributions on behalf of such separate segregated fund of a corporation or membership organization. The cost of such use of property, real or personal, facilities or equipment need not be reimbursed to the corporation so long as such costs are incurred in setting up and running the separate segregated fund of a corporation or membership organization. Such costs that need not be reimbursed include the costs of office space, phones, utilities and supplies.4.4. Use of corporate facilities by other persons.4.4.1. A corporation or membership organization may, at its discretion, allow use of its real or personal property, facilities or equipment beyond such uses as described in Section 4.3 of this Rule, in connection with any political activity by any person. However, the cost of any such use of corporate or membership organization property, real or personal, facilities or equipment under this rule must be reimbursed to the corporation or membership organization within a commercially reasonable time, at normal and usual commercial rental rates; except that:4.4.2. Stockholders (as defined in Section 2 of this rule) of the corporation and any employees of the corporation or membership organization making use of corporate or membership organization real or personal property, facilities and equipment under this Section 4.3 of this Rule must reimburse all costs in excess of those that would arise from "Occasional, Isolated or Incidental" use. As to such occasional, isolated or incidental use, reimbursement will be required only to the extent that the overhead or operating costs of the corporation or membership organization are increased. As used here, "Occasional, Isolated or Incidental Use" generally means:4.4.2.a. When use by corporate or membership organization employees during working hours, an amount of activity during any particular work period which does not prevent the employee from completing the normal amount of work which that employee usually carries out during such work period; or4.4.2.b. When used by corporate stockholders other than employees during the working period, such use does not interfere with the corporation in carrying out its normal activities; and/or4.4.2.c. Any such activity which does not exceed one (1) hour per week or four (4) hours per month, regardless of whether the activity is undertaken during or after normal working hours, shall be considered an occasional, isolated or incidental use.