Fec Workshop: Federal Campaigns, Federal Pacs And

Rules Political Party Committees

Kansas City, MO August 5-6, 2009 Prepared by the Federal Election Commission

Program Overview 1. Raising Money 2. Spending Money 3. Reporting

Prepared by the Federal Election Commission

Objectives •

Review federal contribution limits, prohibitions, exemptions and fundraising restrictions

•

Introduce new lobbyist bundling rules

•

Look at ways to support candidates

•

Review reporting periods and filing dates

•

Help you manage accounts and disclose allocable expenses correctly Prepared by the Federal Election Commission

Three Types of Accounts  Federal Account: Funds subject to the limits, prohibitions and reporting requirements of the Federal Election Campaign Act.  Nonfederal Account: Funds governed by state law.  Levin Account: Funds must comply with certain limits and prohibitions of the Act and are also governed by state law. $10,000 limit. Use for FEA. Prepared by the Federal Election Commission

Three Types of Funds With respect to federal elections . . . Nonfederal Funds Levin Funds Federal Funds Prepared by the Federal Election Commission

Contribution Limits 2009-2010

Candidate per election

National Party per year

State, District & Local Party per year $10,000 (combined)

Any PAC per year

Special Limits

$5,000

$115,500 biennial limit

Individual

$2,400

$30,400

National Party

$5,000

No Limit

No Limit

$5,000

$42,600 per Senate campaign

State, District & Local Party

$5,000 (combined)

No Limit

No Limit

$5,000 (combined)

None

PAC: multicandidate

$5,000

$15,000

$5,000 (combined)

$5,000

None

PAC: not multicandidate

$2,400

$30,400

$10,000 (combined)

$5,000

None

Prepared by the Federal Election Commission

Prohibited Sources In connection with federal elections: • Corporations • Labor Organizations • Federal Government Contractors • Contributions in the Name of Another • Cash over $100 • Anonymous over $50 Prepared by the Federal Election Commission

Prohibited Sources In all elections: • Foreign Nationals • Federally Chartered Corporations • National Banks

Prepared by the Federal Election Commission

Questionable Contributions

• Deposit while confirming legality • If unable to verify permissibility, must refund within 30 days

Prepared by the Federal Election Commission

Federal Funds Funds deposited into the federal account must meet one of these conditions: ► Designated or Solicited for Federal Account ► Contributors Informed that Contribution is

Subject to Federal Limits/Prohibitions

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Levin Funds ► Raised only by a state or local party committee ► Funds must comply with state law ► $10,000 limit (unless lower limit under state law) ► Separate account not required ► Each committee has separate Levin fund limit ► Costs of raising Levin funds ► Used to pay for certain allocable “Federal Election Activity” (FEA) Prepared by the Federal Election Commission

Registration Thresholds Political Committee Status ►

Unregistered local party organization may be required to register if it: Makes contributions or expenditures aggregating over $1,000/year Receives federal contributions over $5,000/year Spends more than $5,000/year on exempt activities Prepared by the Federal Election Commission

Party Affiliation 

State party committees and registered local party committees are presumed to be affiliated



A local party committee may rebut this presumption—demonstrate independence

Prepared by the Federal Election Commission

Party Affiliation Contribution Limits 

Contributions made and received by local party committees count against the state committee’s limit



State party committee should set up system to monitor all contributions made and received by local party committees

Prepared by the Federal Election Commission

Volunteer Exemptions Volunteer Services Personal Property Home Event – $2,000/year Unreimbursed Travel – $2,000/year Prepared by the Federal Election Commission

Computer Services Exemptions Sending/Forwarding Emails Creating/Maintaining/Hosting Website Providing a Hyperlink to a Website Posting Comments to a Blog Using Work Computer for Online Political Activity Prepared by the Federal Election Commission

Food/Beverage Exemption • Amount charged = actual cost to vendor • Discount limited to $2,000/year • Vendor may be incorporated

Prepared by the Federal Election Commission

Legal/Accounting Exemption • Services cannot directly further election of candidate • Person paying for the services is the employer • Employer does not hire a replacement • Party must report name of provider, date of service and value Prepared by the Federal Election Commission

Fundraising by Candidates Federal candidates, officeholders and their agents may not raise funds for federal elections outside the limits, prohibitions and reporting requirements of the Act. Federal candidates, officeholders and their agents may only raise funds in connection with nonfederal elections in amounts and from sources that are consistent with state law and within the limits and prohibitions of the Act. Prepared by the Federal Election Commission

State/Local Party Fundraisers • Federal candidate/officeholder may attend, speak or be featured guest at state/local party fundraiser where nonfederal/Levin funds are raised. Candidates/officeholders may speak at such event without restriction or regulation.* • Parties may advertise/publicize appearance and candidates/officeholders. * These rules were challenged in the “Shays III” litigation. Shays v. FEC (06-1247) Prepared by the Federal Election Commission

State/Local Party Fundraisers Federal candidate/officeholder prohibited from: • Serving on host committee for party fundraising event at which nonfederal funds are raised • Signing solicitation in connection with event • Note: Rules only apply to fundraisers for state, district, local party committees, not to other fundraising events (e.g., state candidate events) Prepared by the Federal Election Commission

Objectives •

Review federal contribution limits, prohibitions, exemptions and fundraising restrictions

•

Introduce new lobbyist bundling rules

•

Look at ways to support candidates

•

Review reporting periods and filing dates

•

Help you manage accounts and disclose allocable expenses correctly Prepared by the Federal Election Commission

General Information Campaigns, parties & leadership PACs must disclose certain bundled contributions from lobbyists/registrants and their PACs Effective Dates ►Recordkeeping

for bundled contributions:

► March

19, 2009 for lobbyist/registrant bundlers ► April 18, 2009 for lobbyist/registrant PAC bundlers

First Disclosure by Campaigns: July 15, 2009 (for bundling activity through June 30, 2009) Prepared by the Federal Election Commission

New Disclosure Rule If a lobbyist/registrant or lobbyist/registrant PAC forwards or is credited with raising two or more bundled contributions that total more than $16,000 during a covered period, the recipient committee must report that on FEC Form 3L. Prepared by the Federal Election Commission

Lobbyist/Registrant PACs

www.fec.gov/finance/disclosure/lobbyist.shtml www.fec.gov/info/guidance/hlogabundling.shtml Prepared by the Federal Election Commission

New Disclosure Rule If a lobbyist/registrant or lobbyist/registrant PAC forwards or is credited with raising two or more bundled contributions that total more than $16,000 during a covered period, the recipient committee must report that on FEC Form 3L. Prepared by the Federal Election Commission

Definitions of Key Terms Bundled Contributions   

Forwarded Contributions Received AND Credited Contributions Exception for Lobbyist/ Registrant/ PAC own contributions

Tracking and Crediting  

Records Designations or Other Means of Recognizing (including Titles, Tracking Identifiers, Access or Mementos) Prepared by the Federal Election Commission

New Disclosure Rule If a lobbyist/registrant or lobbyist/registrant PAC forwards or is credited with raising two or more bundled contributions that total more than $16,000 during a covered period, the recipient committee must report that on FEC Form 3L. Prepared by the Federal Election Commission

Covered Periods Quarterly-Filing Parties • Semi-annual Periods:

January 1 – June 30; July 1 – December 31

AND • Quarterly Reporting Periods: ►

Non-Election Year (2009): Semi-annual, plus any applicable special election reporting periods

►

Election Year (2010): Calendar quarters ending 3/31, 6/30, 9/30 and 12/31, plus applicable pre- and post-election reporting periods Prepared by the Federal Election Commission

Covered Periods Monthly Filers • Semi-annual Periods:

January 1 – June 30; July 1 – December 31

AND •Monthly Reporting Periods: ►

Non-Election Year (2009): 20th of each month, except January 31Year-End

►

Election Year (2010): 20th of each month, except Pre- and Post-General election reports and January 31 Year-End

Prepared by the Federal Election Commission

Does the reporting committee accept bundled contributions?

NO

No obligation to file Form 3L

NO

YES

Is the bundler a lobbyist/registrant or lobbyist/registrant PAC?

YES NO

Lobbyist Bundling Disclosure Flow Chart

Does the aggregate amount of bundled contributions exceed $16,000 for a covered period?

YES The committee must file Form 3L

Objectives •

Review federal contribution limits, prohibitions, exemptions and fundraising restrictions

•

Introduce new lobbyist bundling rules

•

Look at ways to support candidates

•

Review reporting periods and filing dates

•

Help you manage accounts and disclose allocable expenses correctly Prepared by the Federal Election Commission

What is FEA? Type 1 Voter registration conducted 120 days before an election Type 2 Voter identification, GOTV, generic campaign activity conducted “in connection with an election in which a federal candidate is on the ballot”

Type 3 Public communication that promotes, attacks, supports or opposes any federal candidate Type 4 Salary of an employee of a state or local party who spends more than 25% of time on federal elections

Prepared by the Federal Election Commission

FEA Voter Registration Type 1: Voter registration* conducted 120 days before an election

Type 2: GOTV*, voter identification and generic campaign activity conducted “in connection with an election in which a federal candidate is on the ballot”

Type 3: Public communication that promotes, attacks, supports or opposes (PASOs) any federal candidate

Type 4: Salary of an employee of a state or local party who spends more than 25% of time on federal elections Prepared by the Federal Election Commission

Examples of Voter Registration Activity

Register to Vote

Ask me how

• • •

Booth at County Fair Phone Bank Campaign Rally

Prepared by the Federal Election Commission

FEA Voter I.D. Type 1: Voter registration conducted 120 days before an election

Type 2: Voter identification, GOTV and generic campaign activity conducted “in connection with an election in which a federal candidate is on the ballot”

Definition: 

Creating or enhancing voter lists by adding information about voters’ likelihood of voting in a particular election or voting for a particular candidate

Time Period: 

“In connection with an election in which a federal candidate is on the ballot”

Prepared by the Federal Election Commission

FEA Time Period “In connection with an election in which a federal candidate appears on the ballot” means: 



For a regularly scheduled election: Primary ballot access deadline (or January 1st) until the general election For a special election: The day special election is set under state law until the general election

Prepared by the Federal Election Commission

FEA GOTV Activity Type 1: Voter registration conducted 120 days before an election

Type 3: Public communication that promotes, attacks, supports or opposes (PASOs) any federal candidate

Type 2: Voter identification, GOTV and generic campaign activity conducted “in connection with an election in which a federal candidate is on the ballot”

Type 4: Salary of an employee of a state or local party who spends more than 25% of time on federal elections Prepared by the Federal Election Commission

FEA Generic Campaign Activity Type 1: Voter registration conducted 120 days before an election

Type 3: Public communication that promotes, attacks, supports or opposes (PASOs) any federal candidate

Type 2: GOTV, voter identification and generic campaign activity conducted “in connection with an election in which a federal candidate is on the ballot”

Type 4: Salary of an employee of a state or local party who spends more than 25% of time on federal elections Prepared by the Federal Election Commission

FEA Public Communication Type 1: Voter registration conducted 120 days before an election

Type 2: GOTV, voter identification and generic campaign activity conducted “in connection with an election in which a federal candidate is on the ballot”

Type 3: Public communication that promotes, attacks, supports or opposes (PASOs) any federal candidate

Type 4: Salary of an employee of a state or local party who spends more than 25% of time on federal elections Prepared by the Federal Election Commission

FEA Salaries and Wages Type 1: Voter registration conducted 120 days before an election

Type 2: GOTV, voter identification and generic campaign activity conducted “in connection with an election in which a federal candidate is on the ballot”

Type 3: Public communication that promotes, attacks, supports or opposes (PASOs) any federal candidate

Type 4: Salary of an employee of a state or local party who spends more than 25% of time on federal elections Prepared by the Federal Election Commission

Not FEA • Public communications that refer only to nonfederal candidates • Contributions to candidates for state/local office • Party meetings and conventions • Grassroots materials for nonfederal candidates Prepared by the Federal Election Commission

Financing FEA Type 1: Voter registration conducted 120 days before an election Type 2: GOTV, voter identification and generic campaign activity conducted “in connection with an election in which a federal candidate is on the ballot”

Federal/Levin Allocation Prepared by the Federal Election Commission

Financing FEA Type 3: Public communication that promotes, attacks, supports or opposes (PASOs) any federal candidate

100% Federal

Type 4: Salary of an employee of a state or local party who spends more than 25% of time on federal elections

Type 1 or Type 2 FEA if any Federal candidate is mentioned

Prepared by the Federal Election Commission

Exempt Activities Special Features: • Unlimited-- Contribution limits do not apply • Must use federally permissible funds • Disclaimer Required

Prepared by the Federal Election Commission

Exempt Activities • Slate Cards/Sample Ballots • Campaign Materials for General Election • Presidential Voter Registration and GOTV Drives

Prepared by the Federal Election Commission

Exempt Activities Allocation of Exempt Activity 

If conducted in conjunction with nonfederal activity: allocate the costs between Federal and non-Federal funds.



DO NOT allocate between Federal and nonfederal, any exempt activity that mentions ONLY Federal candidates.

Exempt Activity that is also FEA 

If Exempt Activity also meets one of the definitions of FEA then it must be paid for as FEA, i.e. with Federal funds. Prepared by the Federal Election Commission

441a(d) Expenditures • National Party Committee 

House, Senate, Presidential candidates

• State Party Committee 

House, Senate candidates



Presidential candidates (only if designated)

• Local/District Party Committee 

No Coordinated Party Spending authority unless designated Prepared by the Federal Election Commission

441a(d) Expenditures Designation of limit: 

In advance



In writing



Keep written designation for 3 years



Monitor and disclose expenditures made by designated agents Prepared by the Federal Election Commission

441a(d) Expenditures • Funds spent by party • Made for general election of party’s candidate • Separate limits apply; May designate limit to other party committee • Party reports; disclaimer required

Prepared by the Federal Election Commission

Coordinated Communications • If communication is coordinated, it is considered an in-kind or a 441a(d) expenditure, subject to limits.

• Coordination three-part test: Source of payment; “Content standard*” re: timing and subject matter of communication; AND

“Conduct standard*” re: interaction between campaign and payee. *Subject of litigation challenge in Shays v. FEC (Shays III) Prepared by the Federal Election Commission

Independent Expenditures Communication that expressly advocates the election or defeat of a clearly identified candidate and is not made in cooperation, consultation, or concert with, or at the request or suggestion of a candidate or his/her agents.

Prepared by the Federal Election Commission

Objectives •

Review federal contribution limits, prohibitions, exemptions and fundraising restrictions

•

Introduce new lobbyist bundling rules

•

Look at ways to support candidates

•

Review reporting periods and filing dates

•

Help you manage accounts and disclose allocable expenses correctly Prepared by the Federal Election Commission

Reporting • Non-Election Years: 

Semi-Annual Filing



Monthly Filing

• Other Considerations: 

No Extensions



Registered v. Overnight Mail Prepared by the Federal Election Commission

Objectives •

Review federal contribution limits, prohibitions, exemptions and fundraising restrictions

•

Introduce new lobbyist bundling rules

•

Look at ways to support candidates

•

Review reporting periods and filing dates

•

Help you manage accounts and disclose allocable expenses correctly Prepared by the Federal Election Commission

Paying Bills Two Types of Bills: 

100% Federal 



No allocation

Allocable Payment split between Federal/Nonfederal funds or Federal/Levin funds  Follow FEC allocation sequence to pay bill 

Prepared by the Federal Election Commission

Paying Allocable Expenses Option 1: Use Federal Account  

Pay allocable bill from federal account Transfer in appropriate amount of nonfederal or Levin to cover share of each allocated expense

Option 2: Establish Allocation Account  



“Zero balance” account Transfer in appropriate amount of nonfederal or Levin to cover share of each allocated expense Pay all allocable expenses from allocation account Prepared by the Federal Election Commission

Payment Sequence • Federal or Allocation Account Pays Total Bill • Nonfederal/Levin Account Transfers its Share within a 70-Day Window ► Window opens 10 days before bill is paid,

closes 60 days after bill is paid

Prepared by the Federal Election Commission

Non-Allocable Expenses ►Fundraising for the

federal account

100% Federal

►Exempt activity references

only federal candidates ►Type 1 and Type 2 FEA

references federal candidate ►Type 3 and Type 4 FEA

Prepared by the Federal Election Commission

Fed/Nonfederal Allocation ► Administrative Expenses 

Rent, utilities, staff salaries

► “Exempt Activities” 

Slate cards, campaign materials, Presidential GOTV and voter drives that mention Federal and nonfederal candidates

► Non-FEA Generic Voter Drives ► Fundraising Costs

Prepared by the Federal Election Commission

Federal/Levin Allocation ► Type 1 FEA •

Voter registration 120 days before election

► Type 2 FEA •

Voter identification, generic campaign activity and GOTV activity

Provided no federal candidates named Prepared by the Federal Election Commission

Allocation: Fixed Percentage ► Fixed Percentage: •

Presence of a Senate or Presidential candidate on the next ballot in next general election

•

Percentage used for entire two-year cycle

Prepared by the Federal Election Commission

Allocation: Fixed Percentage Candidates on the Ballot

Federal Share

►

If both President and Senate on ballot

36%

►

If President but no Senate on ballot

28%

►

If Senate but no President on ballot

21%

►

Neither President nor Senate on ballot

15%

Prepared by the Federal Election Commission

Allocation: Funds Received Funds Received: federal receipts for program or event total receipts for program or event • Estimate ratio based on prediction • Within 60 days, adjust ratio and transfer funds to reflect actual funds received • Further transfers may be necessary if more federal funds received than estimated Prepared by the Federal Election Commission

For More Information: Publications Conferences and Workshops Our web site: www.fec.gov Toll free information line: (800) 424–9530 FAXLINE: (202) 501–3413 [email protected]

Prepared by the Federal Election Commission

Objectives •

Review federal contribution limits, prohibitions, exemptions and fundraising restrictions

•

Introduce new lobbyist bundling rules

•

Look at ways to support candidates

•

Review reporting periods and filing dates

•

Help you manage accounts and disclose allocable expenses correctly Prepared by the Federal Election Commission

Workshop Evaluation

Help Us Help You!

Please complete an evaluation of this workshop.

Prepared by the Federal Election Commission

Thank You! SAVE THE DATE: FEC REGIONAL CONFERENCE

Chicago, IL Sept. 15-16, 2009