PAC Operations Part 3 PAC Operations Part 3 February 23, 2012
9:15 - 10:45 am Tab 4
Slide 3
Objectives Part 3 Highlight Methods For Supporting Federal
CandidatesHighlight Methods For Supporting Federal Candidates
Identify Types of PAC CommunicationsIdentify Types of PAC
Communications 2012 Federal Election Commission
Slide 4
Supporting Federal Candidates Direct ContributionsDirect
Contributions Earmarked ContributionsEarmarked Contributions
In-Kind ContributionsIn-Kind Contributions 2012 Federal Election
Commission
Slide 5
Contributions to Candidates Per Election LimitsPer Election
Limits $2,500 (indexed) from nonmulticandidate SSFs$2,500 (indexed)
from nonmulticandidate SSFs $5,000 from multicandidate
committees$5,000 from multicandidate committees Only for election
in which candidate participatesOnly for election in which candidate
participates Includes in-kind contributionsIncludes in-kind
contributions Recommended: Designate electionRecommended: Designate
election Electronic redesignations OKElectronic redesignations OK
Review 2012 Federal Election Commission
Slide 6
Contributions Made 0302 0301 June 3, 2012 Committee to Elect
Becky Johnson Seven thousand and xx/100
------------------------------------------ 7,000.00 Kathy Sheffield
5,000.00 XYZ Organization PAC A Qualified Multicandidate Committee
999 C Street Miami, FL 00000 June 3, 2012 Five thousand and xx/100
------------------------------------------ $5,000 for 2012 primary;
$2,000 for 2012 general The Purple Eyed Susan Fund XYZ Organization
PAC A Qualified Multicandidate Committee 999 C Street Miami, FL
00000 2012 Federal Election Commission
Slide 7
Reporting Example Itemizing Monetary Contributions Made and
Refunded How must the committee disclose the transactions?How must
the committee disclose the transactions? What information from the
scenario do we need to disclose this correctly?What information
from the scenario do we need to disclose this correctly? Tricky
Issues?Tricky Issues? 2012 Federal Election Commission
Slide 8
Contribution to Candidate XYZ Organization Political Action
Committee Committee to Elect Becky Johnson 555 5 th Avenue City, ST
00000 Contribution Becky Johnson 06 03 2012 5,000.00 2,000.00 x x
xx x 2012 FL 2012 Federal Election Commission
Slide 9
Contribution to Leadership PAC 1 2 x XYZ Organization Political
Action Committee 06 03 2012 The Purple Eyed Susan Fund 557 5 th
Avenue City, ST 00000 5,000.00 Contribution 011 Schedule B, Line 23
Not Applicable 2012 Federal Election Commission
Slide 10
Returned vs. Refunded Returned, Lost or Voided ChecksReturned,
Lost or Voided Checks Negative entry on line number transaction was
originally disclosedNegative entry on line number transaction was
originally disclosed RefundsRefunds Refund check from another
committee appears on Schedule A for Line 16Refund check from
another committee appears on Schedule A for Line 16 2012 Federal
Election Commission
Slide 11
Returned, Lost or Voided 1 2 x x x XYZ Organization Political
Action Committee 08 01 2012 Committee to Elect Becky Johnson 555 5
th Avenue City, ST 00000 - 5,000.00 Check returned Becky Johnson FL
Check Uncashed from 2011 July Monthly Negative Entry, Schedule B,
Line 23 Primary 2012 2012 Federal Election Commission
Slide 12
Refund of Contribution XYZ Organization Political Action
Committee 557 5 th Avenue City, ST 00000 08 01 2012 5,000.00
Contribution itemized in 2012 July Monthly x 1 00000001 5,000.00
Schedule A, Line 16 The Purple Eyed Susan Fund 2012 Federal
Election Commission
Slide 13
Supporting Federal Candidates Direct ContributionsDirect
Contributions Earmarked ContributionsEarmarked Contributions
In-Kind ContributionsIn-Kind Contributions 2012 Federal Election
Commission
Slide 14
Earmarked Contributions DefinitionDefinition A contribution to
a candidate that the contributor directs (either orally or in
writing) through an intermediary or conduit ConduitConduit Anyone
who receives and forwards an earmarked contribution to a candidate
(including SSF) Connected organization may not be a
conduitConnected organization may not be a conduit Subject to
special reporting obligationsSubject to special reporting
obligations 2012 Federal Election Commission
Slide 15
Effect on Contribution Limits An earmarked contribution counts
against: The contributors limit for the recipient candidate ANDThe
contributors limit for the recipient candidate AND The PACs limits
IF:The PACs limits IF: Direction or control exercised over
recipientDirection or control exercised over recipient Deferred
earmarking done through PAC via payroll deduction program (See AO
1995-15)Deferred earmarking done through PAC via payroll deduction
program (See AO 1995-15) Solicitation for earmarked contribution
sent by organization to restricted class and collected by
PACSolicitation for earmarked contribution sent by organization to
restricted class and collected by PAC 2012 Federal Election
Commission
Slide 16
Other Requirements Transmittal to Campaign SSF must forward
earmarked contribution to recipient campaign within 10 days of
receiving contribution along with contributor information for FEC
reportSSF must forward earmarked contribution to recipient campaign
within 10 days of receiving contribution along with contributor
information for FEC report Reporting by PAC / Conduit to FEC PAC or
individual must disclose earmarked contributions to FEC on report
(for PAC, this goes on regular report)PAC or individual must
disclose earmarked contributions to FEC on report (for PAC, this
goes on regular report) 2012 Federal Election Commission
Slide 17
Reporting Example Disclosing Earmarked Contributions How must
the committee disclose the transaction(s)?How must the committee
disclose the transaction(s)? What information from the scenario do
we need to disclose this correctly?What information from the
scenario do we need to disclose this correctly? Tricky
Issues?Tricky Issues? 2012 Federal Election Commission
Slide 18
Earmarked Contribution Big Show Corporation Political Action
Committee Kenny Chathouse 1111 Down Road, NW Big Show Corporation
City, ST 00000 Chief Executive Officer 10 20 2012 500.00 Earmarked
for David Grant, Senate, FL x x 1 2 If Deposited by PAC 2012 2012
Federal Election Commission
Slide 19
Forwarded by PAC Check 1 2 x x x Big Show Corporation Political
Action Committee 10 22 2012 Committee to Elect David Grant 555 5 th
Avenue City, ST 00000 500.00 David Grant Transmitted w/ PAC check;
PAC limit unaffected 011 FL Earmarked contribution by Kenny
Chathouse Earmarked Contribution 2012 2012 Federal Election
Commission
Slide 20
Supporting Federal Candidates Direct ContributionsDirect
Contributions Earmarked ContributionsEarmarked Contributions
In-Kind ContributionsIn-Kind Contributions 2012 Federal Election
Commission
Slide 21
Fundraiser for Campaign PAC may host fundraiser for candidate
at corporation/association/labor/member organization facilitiesPAC
may host fundraiser for candidate at
corporation/association/labor/member organization facilities Costs
Incurred by SSF = In-Kind ContributionCosts Incurred by SSF =
In-Kind Contribution Advance payment is required for:Advance
payment is required for: Staff: fair market value of salary and
benefits Mailing list: fair market value Catering or food services:
fair market value Meeting room/other connected org. facilities:
fair market value 2012 Federal Election Commission
Slide 22
Fundraiser for Campaign If PAC collects contributions, campaign
and PAC will need to report earmarked contributionsIf PAC collects
contributions, campaign and PAC will need to report earmarked
contributions Avoid earmarking rules by having campaign
representative collect contributionsAvoid earmarking rules by
having campaign representative collect contributions 2012 Federal
Election Commission
Slide 23
Scenario #3 Itemizing In-Kind Contributions What type of
transactions are these?What type of transactions are these? How
must the committee disclose the transactions?How must the committee
disclose the transactions? What information from the scenario do we
need to disclose this correctly?What information from the scenario
do we need to disclose this correctly? Tricky Issues?Tricky Issues?
2012 Federal Election Commission
Slide 24
In-Kind Contribution 1 2 x x x XYZ Organization Political
Action Committee 03 22 2012 XYZ Organization 123 Worth Avenue City,
ST 00000 350.00 Staff time & email list (In-kind contribution)
Sam Thomas 011 FL02 Disclosure of Date Made 2012 See Schedule B for
Line 21b. 2012 Federal Election Commission
Slide 25
In-Kind Contribution 1 2 x x x XYZ Organization Political
Action Committee 03 22 2012 Grand Plush Hotel 123 Worth Avenue
City, ST 00000 1,578.00 Reception (In-kind contribution) Sam Thomas
011 FL02 Disclosure of Date Made 2012 2012 Federal Election
Commission
Slide 26
Advance Payment 1 2 x x x XYZ Organization Political Action
Committee 02 22 2012 XYZ Organization 123 Worth Avenue City, ST
00000 350.00 Staff time & email list (In-kind contribution) Sam
Thomas 011 FL02 Disclosure of Payment Date 2012 See Schedule B for
Line 23. MEMO 2012 Federal Election Commission
Slide 27
1 1 x x x XYZ Organization Political Action Committee 04 22
2012 Grand Plush Hotel 123 Worth Avenue City, ST 00000 1,578.00
Reception (In-kind contribution) Sam Thomas 011 FL02 MEMO; See
April Quarterly, Schedule B, Line 23 Disclosure of Payment Date
Payment to Vendor 2012 2012 Federal Election Commission
Slide 28
Objectives Part 3 Highlight Methods For Supporting Federal
CandidatesHighlight Methods For Supporting Federal Candidates
Identify Types of PAC CommunicationsIdentify Types of PAC
Communications 2012 Federal Election Commission
Slide 29
Coordinated Communication Coordinated Communication Independent
Expenditure Independent Expenditure PAC Communications 2012 Federal
Election Commission
Slide 30
Coordination Basic Definition of Coordination:Basic Definition
of Coordination: Made in cooperation, consultation or concert with,
or at the request or suggestion of, a candidate, a candidates
authorized committee, or their agents, or a party committee or its
agents Treated as in-kind contribution, subject to limitations and
prohibitionsTreated as in-kind contribution, subject to limitations
and prohibitions Reportable by committees making and receiving the
contributionReportable by committees making and receiving the
contribution 2012 Federal Election Commission
Slide 31
Three-Part Coordinated Communication Test Source of Payment
Content Standard Conduct Standard Source of Payment Paid for by the
PAC
Slide 32
Content Standard Meeting one of these: Meeting one of these:
Electioneering Communication Republication of Campaign Materials
Express Advocacy Public Communication within Certain Time Frame
before Election NEW: Communication that is Functional Equivalent of
Express Advocacy Three-Part Coordination Test
Slide 33
Time Frames 1. House or Senate candidates = 90 days or fewer
before a primary or general election 2. Presidential candidates =
entire period from 120 days before the primary through date of
general election. 3. Political parties = If during a presidential
election cycle, 120 days before the primary through the general
election; if during a midterm cycle, 90 days before the primary or
the general. 2012 Federal Election Commission
Slide 34
Conduct Standard Request or SuggestionRequest or Suggestion
Material InvolvementMaterial Involvement Substantial
DiscussionSubstantial Discussion Common VendorCommon Vendor Former
Employee/Independent ContractorFormer Employee/Independent
Contractor Three-Part Coordination Test
Slide 35
Source of payment Source of payment +Content standard +Conduct
standard +Conduct standard = Coordinated Communication = In-Kind
Contribution Subject to Limits and Prohibitions Three-Part
Coordination Test 2012 Federal Election Commission
Slide 36
Coordinated Communication Coordinated Communication Independent
Expenditure Independent Expenditure PAC Communications 2012 Federal
Election Commission
Slide 37
Independent Expenditure Expenditure for communication that:
Expressly advocates the election or defeat of a clearly identified
candidate AND Is not made in cooperation, consultation or in
concert with, or at the request or suggestion of, the candidate or
his/her campaign, or a political party committee or the agents of
either. EXPRESS ADVOCACY No Coordination 2012 Federal Election
Commission
Slide 38
Message unmistakably urges election or defeat of clearly
identified federal candidate. Two Part Definition: Part A: Specific
Call to ActionPart A: Specific Call to Action Part B: Only
Reasonable Interpretation TestPart B: Only Reasonable
Interpretation Test Express Advocacy 2012 Federal Election
Commission
Slide 39
Independent = Unlimited Expenditure for a communication
expressly advocating the election or defeat of a clearly identified
candidate, that is not made in cooperation, consultation, or
concert with, or at the request or suggestion of a candidate or
his/her agents. No Limit on Amount 2012 Federal Election
Commission
Slide 40
Independent Expenditures Example
Slide 41
Disclosure PACs report using Schedule EPACs report using
Schedule E Date made = Date disseminatedDate made = Date
disseminated Aggregate on per calendar year, per election, per
office sought basisAggregate on per calendar year, per election,
per office sought basis 2012 Federal Election Commission
Slide 42
48-Hour Notices Required for IEs aggregating $10,000 made 20
days or more before an election 24-Hour Notices Required for IEs
aggregating $1,000 made < 20 days but more than 24 hours before
an election. Disclose again on next regular report Disclosure 2012
Federal Election Commission
Slide 43
Reporting Independent Expenditures Scenario 2012 Federal
Election Commission
Slide 44
48-Hour IE Notice Key Biscayne Times Newspaper Ad Arthur
Fonzarelli $6,000.00 00000004 $6,000.00 10142012 11 X X FL X X 135
Biscayne Blvd. Key Biscayne FL 00000 4 2012 general Emerald Coast
Consulting, Inc. PAC 2012 Federal Election Commission
Slide 45
135 Biscayne Blvd. Key Biscayne FL 00000 Newspaper Ad Pinky
Tuscadero $10,200.00 00000004 $4,200.00 10162012 11 X X FL X X
Emerald Coast Consulting, Inc. PAC Key Biscayne Times 4 2012
general 48-Hour IE Notice 2012 Federal Election Commission
Slide 46
Schedule E (Pre-General) 135 Biscayne Blvd. Newspaper Ad Arthur
Fonzarelli $6,000.00 00000004 $6,000.00 10142012 11 MEMO X X FL X
Emerald Coast Consulting, Inc. PAC Key Biscayne Times Key
BiscayneFL00000 4 2012 general 2012 Federal Election
Commission
Slide 47
Schedule E (Pre-General) 135 Biscayne Blvd. Newspaper Ad Pinky
Tuscadero $10,200.00 00000004 $4,200.00 10162012 11 X X WI X MEMO
Emerald Coast Consulting, Inc. PAC Key Biscayne Times Key
BiscayneFL00000 4 2012 general 2012 Federal Election
Commission
Slide 48
IE Report Debt Owed 135 Biscayne Blvd. Newspaper Ads/IEs
10/14/12 and 10/16/12 11 X $10,200.00 $0.00 Other Reporting - Debt
Emerald Coast Consulting, Inc. PAC Key Biscayne Times Key
BiscayneFL00000 2012 Federal Election Commission
Slide 49
Schedule E (Post-General) 135 Biscayne Blvd. Newspaper Ad
10/14/12 Arthur Fonzarelli $17,700.00 00000004 $6,000.00 11242012
11 X X FL X Emerald Coast Consulting, Inc. PAC Key Biscayne Times
Key BiscayneFL00000 4 2012 general 2012 Federal Election
Commission
Slide 50
135 Biscayne Blvd. Newspaper Ad 10/16/12 Pinky Tuscadero
$17,700.00 00000004 $4,200.00 11242012 11 X X FL X Emerald Coast
Consulting, Inc. PAC Key Biscayne Times Key BiscayneFL00000 4 2012
general Schedule E (Post-General) 2012 Federal Election
Commission
Slide 51
IE Debt Payment 135 Biscayne Blvd. Newspaper Ads/IEs 10/14/12
and 10/16/12 11 X $10,200.00 $0.00 Other Reporting - Debt Emerald
Coast Consulting, Inc. PAC Key Biscayne Times Key BiscayneFL00000
2012 Federal Election Commission
Slide 52
24-Hour IE Notice WBQW-FM 12100 West Howard Avenue Radio Ad
Arthur Fonzarelli $17,700.00 00000004 $7,500.00 11042012 11 X X FL
X X Emerald Coast Consulting, Inc. PAC MiamiFL00000 4 2012 general
2012 Federal Election Commission
Slide 53
Schedule E (Post-General) Emerald Coast Consulting, Inc. PAC
WBQW-FM 12100 West Howard Avenue MiamiFL00000 Radio Ad 11/4/12
Arthur Fonzarelli $17,700.00 00000004 $7,500.00 11242012 11 X X FL
X 4 2012 general 2012 Federal Election Commission
Slide 54
Workshop Evaluation Help Us Help You! Please complete an
evaluation of this workshop. 2012 Federal Election Commission
Slide 55
Next Workshop Best Practices for FEC Compliance 2012 Federal
Election Commission