(a)

1. (1) At the time when the candidate's final report is due, the candidate shall:

   1. (A) Determine the current status of the campaign account; and
   2. (B) Ascertain whether the campaign ended with remaining campaign funds or in debt.
2. (2) In order to determine whether there is a net debt outstanding from a particular election, the candidate must prove net debts outstanding as of the date of the election.

(b) For purposes of this section, “net debts outstanding” means the total amount of unpaid debts, loans, and obligations incurred with respect to the campaign, less the sum of:

1. (1) The total cash on hand available to pay those debts, loans, and obligations, including:

   1. (A) Currency;
   2. (B) Balances on deposit in banks and other financial institutions;
   3. (C) Checks;
   4. (D) Drafts;
   5. (E) Money orders;
   6. (F) Traveler’s checks;
   7. (G) Certificates of deposit;
   8. (H) Treasury bills; and
   9. (I) Any other candidate or committee investments valued at fair market value; and

2. (2) The total amount owed to the candidate or political committee in the form of credits, refunds of deposits, returns, or receivables or a commercially reasonable amount based on the collectability of those:

   1. (A) Credits;
   2. (B) Refunds;
   3. (C) Returns; or
   4. (D) Receivables.

(d) Matters that will not be considered as legitimate campaign debts include, but are not limited to:

1. (1) Campaign workers' salary bonuses;
2. (2) Mileage on behalf of the candidate or any member of the candidate's immediate family, unless said mileage was regularly paid by the candidate throughout the campaign; and
3. (3) Postage, photocopying, meals, lodging or utility bills, or other miscellaneous bills that, during the campaign, were not billed to the campaign nor paid by the campaign, but billed to and/or paid by the candidate or the candidate's family unless, at the time of filing the final report, the candidate is able to provide an itemization of each bill that constitutes the debt and for which retirement is sought.

(e)

1. (1) For purposes of this section, “reasonable and legitimate costs and administrative expenses of debt retirement” means those post-election expenses directly related to a particular debt retirement function, performed not for matters generally incidental to political activity or holding an office, but for matters specifically and solely related to retiring a legitimate campaign debt.
2. (2) If the expense is for personnel services or staff salaries, such services or salaries must be directly and solely for the express purpose of retiring the campaign debt or debts noted by the candidate in his or her final report and not related to general political functions incidental to holding an office or campaigning for a future office.
3. (3) An expense is reasonably and legitimately related to debt retirement if it is generated by activity which, but for the existence of a legitimate campaign debt and efforts to retire same, would not otherwise have been undertaken and the related expense not otherwise incurred.

(f)

1. (1) Contributions received for debt retirement shall be treated as contributions to the candidate's previous election, and all campaign contribution limits shall continue to apply.
2. (2) If a contributor makes a contribution after the general election to retire a debt associated with the general election, the campaign limits applicable to contributions for the general election would apply.

(g)

1. (1) Contributors shall be given notice that the campaign contributions are for the purpose of retiring a campaign debt.
2. (2) Any invitation to or notice of a fundraiser to retire a campaign debt of a previous campaign shall state that the funds will be used to retire a campaign debt.

(i)

1. (1) A person shall file a Campaign Contribution and Expenditure Report concerning a campaign debt if, since the last report concerning the debt, the person has received cumulative contributions in excess of five hundred dollars ($500).
2. (2) The report shall be filed not later than fifteen (15) days after a calendar quarter in which a report becomes required.
3. (3) No report is required in any calendar quarter in which the cumulative contribution or cumulative expenditure limit has not been exceeded since the person’s last report.