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Party Operations Part 1: Committee Basics and Fundraising February 22, 2012 11:15 a.m. – 12:45 p.m. Tab #3.

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Presentation on theme: "Party Operations Part 1: Committee Basics and Fundraising February 22, 2012 11:15 a.m. – 12:45 p.m. Tab #3."— Presentation transcript:

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2 Party Operations Part 1: Committee Basics and Fundraising February 22, :15 a.m. – 12:45 p.m. Tab #3

3 2012 FEC Information Division Objectives Identify different types of accountsIdentify different types of accounts Review contribution limits, prohibitions and exemptionsReview contribution limits, prohibitions and exemptions Discuss disclosure rules for contributions bundled by lobbyistsDiscuss disclosure rules for contributions bundled by lobbyists Examine methods of supporting candidatesExamine methods of supporting candidates

4 2012 FEC Information Division Party Accounts Party Accounts Political committees must have > one checking account at a federally insured institutionPolitical committees must have > one checking account at a federally insured institution Committees may invest funds, but all receipts and disbursements thru checking accountCommittees may invest funds, but all receipts and disbursements thru checking account Review

5 2012 FEC Information Division Impact of BCRA on Parties  Prohibit national parties from raising or spending nonfederal funds  Require state/local parties to pay for certain Federal Election Activities (FEA) with 100% federal funds; may use combination of Federal and Levin funds for other FEA  Restrict fundraising by federal candidates and officeholders on behalf of party committees

6 2012 FEC Information Division National Party Accounts National Party Accounts Post-BCRA, national parties cannot raise/spend nonfederal funds—federal accounts only NATIONAL PARTY COMMITTEE FEDERAL ACCOUNT

7 2012 FEC Information Division State/Local Party Accounts State/Local Party Accounts State/Local parties may have three different accounts—federal, nonfederal and Levin

8 2012 FEC Information Division State/Local Party Accounts State/Local Party Accounts Federal Account: Funds subject to limits, prohibitions and reporting requirements of Federal Election Campaign Act

9 2012 FEC Information Division State/Local Party Accounts State/Local Party Accounts Nonfederal Account: Funds governed by applicable state law

10 2012 FEC Information Division State/Local Party Accounts State/Local Party Accounts Levin Account : Levin Account (optional): Funds comply with certain limits and prohibitions of the Act and are also governed by state law

11 2012 FEC Information Division Three Types of Funds Nonfederal Funds With respect to federal elections... Levin Funds Federal Funds

12 2012 FEC Information Division Three Types of Funds Nonfederal Funds With respect to federal elections... Levin Funds Federal Funds

13 2012 FEC Information Division Federal Account Deposits Federal Account Deposits Must meet one of these conditions: 1.Designated or Solicited for Federal Account 2.Contributors Informed that Contribution is Subject to Federal Limits/Prohibitions

14 2012 FEC Information Division ► Solicitations must include request for information “Federal Law requires us to use our best efforts to collect and report the name, mailing address, occupation and name of employer of individuals whose contributions exceed $200 in a calendar year.” ► Follow-up request w/in 30 days of receipt if info not received “Best Efforts” Review Federal Account Deposits Federal Account Deposits

15 2012 FEC Information Division Objectives Identify different types of accountsIdentify different types of accounts Review contribution limits, prohibitions and exemptionsReview contribution limits, prohibitions and exemptions Discuss disclosure rules for contributions bundled by lobbyistsDiscuss disclosure rules for contributions bundled by lobbyists Examine methods of supporting candidatesExamine methods of supporting candidates

16 2012 FEC Information Division 2011 FEC Information Division Contribution Limits For Elections Review

17 2012 FEC Information Division Limits to Parties For Elections Review

18 2012 FEC Information Division Prohibited Contributions CorporationsCorporations Labor OrganizationsLabor Organizations Federal Government ContractorsFederal Government Contractors Cash over $100Cash over $100 Anonymous over $50Anonymous over $50 Contributions in the Name of AnotherContributions in the Name of Another Review

19 2012 FEC Information Division Prohibited for All Elections Foreign NationalsForeign Nationals Federally Chartered CorporationsFederally Chartered Corporations National BanksNational Banks Review

20 2012 FEC Information Division Reporting Contributions to the Federal Account Scenario

21 2012 FEC Information Division Reporting Federal Receipts Reporting Federal Receipts Schedule A, Line 11(a)(i) The Freedom Party Committee Dr. Cliff Huxtable 162 Seventh Avenue Brooklyn NY Processing question: 09 $ X Self-EmployedObstetrician

22 2012 FEC Information Division Volunteer Exemptions  Volunteer Services  Personal Property  Home Event – $2,000/year  Unreimbursed Travel – $2,000/year

23 2012 FEC Information Division Computer Services Exemptions  Sending/Forwarding s  Creating/Maintaining/Hosting Website  Providing a Hyperlink to a Website  Posting Comments to a Blog  Using Work Computer for Online Political Activity

24 2012 FEC Information Division Food/Beverage Exemption Charge must = actual cost to vendorCharge must = actual cost to vendor Discount limited to $2,000/yearDiscount limited to $2,000/year Vendor may be incorporatedVendor may be incorporated

25 2012 FEC Information Division Legal & Accounting Exemption Services cannot directly further election of candidateServices cannot directly further election of candidate Person paying for the services is the employerPerson paying for the services is the employer Employer does not hire a replacementEmployer does not hire a replacement Party must report name of provider, date of service and valueParty must report name of provider, date of service and value

26 2012 FEC Information Division Objectives Identify different types of accountsIdentify different types of accounts Review contribution limits, prohibitions and exemptionsReview contribution limits, prohibitions and exemptions Discuss disclosure rules for contributions bundled by lobbyistsDiscuss disclosure rules for contributions bundled by lobbyists Examine methods of supporting candidatesExamine methods of supporting candidates

27 2012 FEC Information Division Lobbyist Bundling 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 $16,700 during a covered period, the recipient committee must report that on FEC Form 3L.

28 2012 FEC Information Division Objectives Identify different types of accountsIdentify different types of accounts Review contribution limits, prohibitions and exemptionsReview contribution limits, prohibitions and exemptions Discuss disclosure rules for contributions bundled by lobbyistsDiscuss disclosure rules for contributions bundled by lobbyists Examine methods of supporting candidatesExamine methods of supporting candidates

29 2012 FEC Information Division Supporting Candidates ► Contributions ► Exempt Activities ► Coordinated Party Expenditures ► Independent Expenditures ► Federal Election Activities (FEA)

30 2012 FEC Information Division Contribution Limits Cycle House CandidateSenate Candidate National May Give: $5,000/election$5,000/election from National CCC plus $43,100 from National/Senatorial State and Registered Local May Give: $5,000/election (combined limit) Unregistered Local May Give: $2,500/election; will trigger registration

31 2012 FEC Information Division Reporting Contributions to Federal Candidates Scenario

32 2012 FEC Information Division Contribution to Candidate Contribution to Candidate x The Freedom Party Cliff Clavin in ‘10 x x Cliff Clavin 011 Boston MA $2, MA9 84 Beacon Street Contribution to Retire Candidate Debt 2010 Debt Retirement

33 2012 FEC Information Division Methods of Support  Contributions  Exempt Activities  Coordinated Party Expenditures  Independent Expenditures  Federal Election Activities (FEA)

34 2012 FEC Information Division Exempt Activities Key Facts: Contribution limits do not applyContribution limits do not apply Must use federally permissible fundsMust use federally permissible funds Count toward $5,000 Exempt Activity Registration ThresholdCount toward $5,000 Exempt Activity Registration Threshold

35 2012 FEC Information Division Slate Cards To be Exempt: Must name 3 or more candidatesMust name 3 or more candidates No general public political advertising (except direct mail)No general public political advertising (except direct mail) Content limitedContent limited Name of candidateName of candidate Office held/soughtOffice held/sought Party affiliationParty affiliation

36 2012 FEC Information Division To be Exempt: Only for general election nomineesOnly for general election nominees Distributed by volunteersDistributed by volunteers No general public political advertisingNo general public political advertising Paid for by local/state party committeePaid for by local/state party committee Party may not use funds designated for a candidateParty may not use funds designated for a candidate May not use funds or materials provided by National committee for purchase of the materialsMay not use funds or materials provided by National committee for purchase of the materials Campaign Materials

37 2012 FEC Information Division To be Exempt:To be Exempt: Only Presidential and Vice Presidential candidates mentionedOnly Presidential and Vice Presidential candidates mentioned Contribution results if other candidates are identifiedContribution results if other candidates are identified No general public political advertisingNo general public political advertising Phone bank activity exempt if operated by volunteersPhone bank activity exempt if operated by volunteers No payment with funds designated for a candidate or with funds donated by the NationalNo payment with funds designated for a candidate or with funds donated by the National Presidential Voter Registration/GOTV

38 2012 FEC Information Division Paying for Exempt Activities Allocate Federal/Nonfederal funds only if activity mentions both Federal/Nonfederal candidatesAllocate Federal/Nonfederal funds only if activity mentions both Federal/Nonfederal candidates If Exempt Activity meets one or more definitions of FEA:If Exempt Activity meets one or more definitions of FEA: Still “Exempt” from Contribution/ExpenditureStill “Exempt” from Contribution/Expenditure Must be Paid as FEA (100% Federal)Must be Paid as FEA (100% Federal)

39 2012 FEC Information Division Supporting Candidates ► Contributions ► Exempt Activities ► Coordinated Party Expenditures ► Independent Expenditures ► Federal Election Activities (FEA)

40 2012 FEC Information Division Coordinated Party Expenditures Funds spent by partyFunds spent by party Made for general election of party’s candidateMade for general election of party’s candidate Separate limits apply; May designate limit to other party committeeSeparate limits apply; May designate limit to other party committee Party reports; disclaimer requiredParty reports; disclaimer required Also known as 441a(d) expendituresAlso known as 441a(d) expenditures

41 2012 FEC Information Division National Party CommitteeNational Party Committee House, Senate, Presidential candidatesHouse, Senate, Presidential candidates State Party CommitteeState Party Committee House, Senate candidatesHouse, Senate candidates Presidential candidates (only if designated)Presidential candidates (only if designated) Local/District Party CommitteeLocal/District Party Committee No Coordinated Party Spending authority unless designatedNo Coordinated Party Spending authority unless designated Coordinated Party Expenditures

42 2012 FEC Information Division Designation: In advanceIn advance In writingIn writing Keep written designation for 3 yearsKeep written designation for 3 years Monitor and disclose expenditures made by designated agentsMonitor and disclose expenditures made by designated agents Coordinated Party Expenditures

43 2012 FEC Information Division House CandidatesHouse Candidates $10,000 plus COLA, or the Senate limit for states with only one representative$10,000 plus COLA, or the Senate limit for states with only one representative Senate CandidatesSenate Candidates $20,000 plus COLA, or the State’s VAP x $.02 plus COLA$20,000 plus COLA, or the State’s VAP x $.02 plus COLA Presidential CandidatesPresidential Candidates National VAP x $.02 plus COLANational VAP x $.02 plus COLA Coordinated Party Expenditures

44 2012 FEC Information Division Disclaimer on Public Communications: Name of the party committee paying for the communicationName of the party committee paying for the communication If communication made with the candidate’s approval and after the nomination, then authorization statement requiredIf communication made with the candidate’s approval and after the nomination, then authorization statement required Subject to disclaimer rules for printed communicationsSubject to disclaimer rules for printed communications Coordinated Party Expenditures Review

45 2012 FEC Information Division Coordination If communication is coordinated, considered in- kind or 441a(d) expenditure, subject to limits. If communication is coordinated, considered in- kind or 441a(d) expenditure, subject to limits. Coordination three-part test: Coordination three-part test: Source of payment; Source of payment; “Content standard” re: timing and subject matter of communication; AND “Content standard” re: timing and subject matter of communication; AND “Conduct standard” re: interaction between campaign and payee. “Conduct standard” re: interaction between campaign and payee.

46 2012 FEC Information Division ▼ Source of payment Party committeeParty committee Three-Part Coordination Test

47 2012 FEC Information Division ▼ Content Standard 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

48 2012 FEC Information Division 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.

49 2012 FEC Information Division Revised Rules Approved by the Commission in 2010: Add new standard to content prong for public communications that are “functional equivalent of express advocacy” Add new standard to content prong for public communications that are “functional equivalent of express advocacy” Further explain 120-day time period for common vendor and former employee tests Further explain 120-day time period for common vendor and former employee tests

50 2012 FEC Information Division Three-Part Coordination Test ▼ Conduct Standard Request or SuggestionRequest or Suggestion Material InvolvementMaterial Involvement Substantial DiscussionSubstantial Discussion Common VendorCommon Vendor Former Employee/Independent ContractorFormer Employee/Independent Contractor

51 2012 FEC Information Division Safe Harbors  Safe harbor for endorsements and solicitations by Federal candidates  120-day temporal limit for common vendor and former employee conduct standards  Safe harbor for establishment and use of “firewall”  Safe harbor for use of publicly available information  NEW: Safe harbor for certain commercial transactions

52 2012 FEC Information Division Supporting Candidates ► Contributions ► Exempt Activities ► Coordinated Party Expenditures ► Independent Expenditures ► Federal Election Activities (FEA)

53 2012 FEC Information Division Independent Expenditure 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.

54 2012 FEC Information Division Disclaimer and Reporting Name of party committee paying for itName of party committee paying for it Not authorized by any candidate or candidate’s committeeNot authorized by any candidate or candidate’s committee Printed communications subject to disclaimer rulesPrinted communications subject to disclaimer rules Report on Schedule EReport on Schedule E

55 2012 FEC Information Division Reporting Coordinated Party Expenditures Scenario

56 2012 FEC Information Division Coordinated Expenditures Coordinated Expenditures x The Milwaukee Journal Sentinel 135 Morrissey Blvd. Milwaukee WI Arthur Fonzarelli x $6, Newspaper Ad $6, Reporting 441(a)(d) Expenditures WI 4 11 The Freedom Party Committee

57 2012 FEC Information Division Reporting Independent Expenditures Scenario

58 2012 FEC Information Division Independent Expenditures Independent Expenditures  Date made = date disseminated  48-Hour Reports Required for IEs aggregating ≥ $10,000 made 20 days or more before an election  24-Hour Reports Required for IEs aggregating ≥ $1,000 made < 20 days but more than 24 hours before an election.  Disclose again on next regular report

59 2012 FEC Information Division 48-Hour IE Notice Freedom Party Committee Milwaukee Journal Newspaper Ad Arthur Fonzarelli $6, $6, X X WI X X 135 Morrissey Blvd. Milwaukee WI

60 2012 FEC Information Division 135 Morrissey Blvd. Milwaukee WI Newspaper Ad Pinky Tuscadero $10, $4, X X WI X X Freedom Party Committee Milwaukee Journal 4 48-Hour IE Notice

61 2012 FEC Information Division Schedule E (Pre-General) Schedule E (Pre-General) 135 Morrissey Blvd. Newspaper Ad Arthur Fonzarelli $6, $6, MEMO X X WI X Freedom Party Committee Milwaukee Journal MilwaukeeWI

62 2012 FEC Information Division 135 Morrissey Blvd. Newspaper Ad Pinky Tuscadero $10, $4, X X WI X MEMO Freedom Party Committee Milwaukee Journal MilwaukeeWI Schedule E (Pre-General) Schedule E (Pre-General)

63 2012 FEC Information Division IE – Report Debt Owed 135 Morrissey Blvd. Newspaper Ads/IEs 10/14/12 and 10/16/12 11 X $10, $0.00 Other Reporting - Debt Freedom Party Committee Milwaukee Journal MilwaukeeWI53201

64 2012 FEC Information Division Schedule E (Post-General) Schedule E (Post-General) 135 Morrissey Blvd. Newspaper Ad – 10/14/12 Arthur Fonzarelli $17, $6, X X WI X Freedom Party Committee Milwaukee Journal MilwaukeeWI

65 2012 FEC Information Division Schedule E (Post-General) Schedule E (Post-General) 135 Morrissey Blvd. Newspaper Ad – 10/16/12 Pinky Tuscadero $17, $4, X X WI X Freedom Party Committee Milwaukee Journal MilwaukeeWI

66 2012 FEC Information Division IE – Debt Payment 135 Morrissey Blvd. Newspaper Ads/IEs 10/14/12 and 10/16/12 11 X $10, $0.00 Other Reporting - Debt Freedom Party Committee Milwaukee Journal MilwaukeeWI53201

67 2012 FEC Information Division 24-Hour IE Notice WBQW-FM West Howard Avenue Radio Ad Arthur Fonzarelli $17, $7, X X WI X X Freedom Party Committee GreenfieldWI

68 2012 FEC Information Division Schedule E Post General Schedule E Post General Freedom Party Committee WBQW-FM West Howard Avenue GreenfieldWI53228 Radio Ad – 11/4/12 Arthur Fonzarelli $17, $7, X X WI X 4

69 2012 FEC Information Division Supporting Candidates ► Contributions ► Exempt Activities ► Coordinated Party Expenditures ► Independent Expenditures ► Federal Election Activities (FEA)

70 2012 FEC Information Division Workshop Evaluation Help Us Help You! Please complete an evaluation of this workshop.

71 Next Workshop: Party Operations Part 2 2:00 – 3:30 p.m.

72 2012 FEC Information Division Party Operations Part 2: Levin Funds, Federal Election Activity and Nonfederal Fundraising February 22, :00 – 3:30 p.m. Tab #3, Page 65

73 2012 FEC Information Division Objectives Define Levin Funds and Federal Election Activity (FEA)Define Levin Funds and Federal Election Activity (FEA) Examine financing of FEAExamine financing of FEA Review restrictions on nonfederal fundraising by candidates and officeholdersReview restrictions on nonfederal fundraising by candidates and officeholders

74 2012 FEC Information Division Three Types of Funds Nonfederal Funds With respect to federal elections... Levin Funds Federal Funds

75 2012 FEC Information Division What Are Levin Funds? What Are Levin Funds?  Type of funds raised only by a state or local party committee  May be solicited from sources prohibited under Federal law but NOT foreign nationals or sources prohibited by state law  $10,000 limit (unless lower limit under state law)  Separate Levin account or deposited in nonfederal  Used to pay for certain allocable “Federal Election Activity” (FEA)

76 2012 FEC Information Division Reporting Levin Donations Scenario

77 2012 FEC Information Division Levin Funds: Itemization Levin Funds: Itemization Receipt of Levin Funds The Freedom Party X Carmine Ragusa 123 Bank Road Milwaukee WI The Big Ragu Dance Studio Dance Instructor $10,

78 2012 FEC Information Division Levin Funds: Aggregation Levin Funds: Aggregation Aggregate Levin Fund Receipts The Freedom Party The Freedom Party Levin Account $10, $6, $16, $0.00

79 2012 FEC Information Division Supporting Candidates ► Contributions ► Exempt Activities ► Coordinated Party Expenditures ► Independent Expenditures ► Federal Election Activities (FEA)

80 2012 FEC Information Division 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 (PASOs) any clearly identified federal candidate Type 4 Salary of a state or local party employee who spends more than 25% of time on federal elections in one month

81 2012 FEC Information Division 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” Definition: Contacting individuals by individualized or any other means to assist them in registering to vote Contacting individuals by individualized or any other means to assist them in registering to vote REVISED: Now covers contacting individuals by any means to urge or encourage them to register to vote REVISED: Now covers contacting individuals by any means to urge or encourage them to register to vote REVISED: Specific list of activities REVISED: Specific list of activities REVISED: Excludes brief AND incidental exhortations to register to vote REVISED: Excludes brief AND incidental exhortations to register to vote Time Period: Within 120 days of a regularly scheduled federal election Within 120 days of a regularly scheduled federal election

82 2012 FEC Information Division 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” FEA Voter I.D. 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”

83 2012 FEC Information Division 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 electionFor 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 electionFor a special election: The day special election is set under state law until the general election

84 2012 FEC Information Division 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” FEA GOTV Activity Definition of GOTV Activity:  Encouraging individuals by individualized or any other means to vote  REVISED: Now covers contacting individuals by any means to vote  REVISED: Specific list of activities  REVISED: Excludes brief AND incidental exhortations to vote Time Period:  “In connection with an election in which a federal candidate is on the ballot”

85 2012 FEC Information Division Exceptions to FEA Rules Certain costs during FEA time period are not subject to FEA funding restrictions:  Voter ID conducted solely in connection with nonfederal election, which is not used in subsequent federal election  GOTV activity conducted solely in connection with nonfederal election, provided communications made refer exclusively to nonfederal candidates, ballot referenda, polling hours or locations  De minimus costs incurred for certain internet activities and for placing forms or absentee ballots in party offices.

86 2012 FEC Information Division 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” FEA Generic Campaign Activity Definition: ► A public communication that promotes or opposes a political party and does not promote or oppose a clearly identified federal or nonfederal candidate Time Period:  “In connection with an election in which a federal candidate is on the ballot”

87 2012 FEC Information Division Type 3: Public communication that promotes, attacks, supports or opposes (PASOs) any clearly identified federal candidate Type 4: Salary of an employee of a state or local party who spends more than 25% of time on federal elections in one month FEA Public Communication Definition: ► A public communication that promotes attacks, supports or opposes any federal candidate ► Regardless of whether the communication mentions a nonfederal candidate Time Period:  At any time during a calendar year

88 2012 FEC Information Division Public Communication Cable, satellite or broadcast communication; Newspaper or magazine; Mass mailing (> 500 pieces); Outdoor advertising facility; Phone bank (> 500 calls w/same info); Communications placed for a fee on another person’s web site (but not any other Internet or activity); or Any other form of general public political advertising Review

89 2012 FEC Information Division Type 3: Type 3: Public communication that promotes, attacks, supports or opposes (PASOs) any clearly identified federal candidate Type 4: Salary of an employee of a state or local party who spends more than 25% of time on federal elections in a month FEA Salaries and Wages Definition: ► The salary and wages of a state party employee when that employee spends more than 25% of his or her time in a month on federal elections, including FEA. ► Includes fringe benefits Time Period:  At any time during a calendar year

90 2012 FEC Information Division Not Considered FEA FEA does not include:  Public Communications referring solely to nonfederal candidates  Contributions to state/local candidates  Costs of party conventions and meetings  Grassroots materials for nonfederal candidates (i.e., buttons, pins, bumper stickers, etc.)

91 2012 FEC Information Division Financing FEA Type 1: Voter registration conducted 120 days before an election Federal/Levin Allocation Type 2: GOTV, voter identification and generic campaign activity conducted “in connection with an election in which a federal candidate is on the ballot”

92 2012 FEC Information Division Financing FEA 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 100% Federal Type 1 or Type 2 FEA if any Federal candidate is mentioned

93 2012 FEC Information Division Reporting Federal Election Activity (FEA) Scenario

94 2012 FEC Information Division Paying for FEA Payment for Non-Allocable FEA X Freedom Party Billboards by Chrissy Snowe Jack Tripper $1, Billboard Janet Drive Santa Monica CA 90401

95 2012 FEC Information Division Three Types of Funds Nonfederal Funds With respect to federal elections... Levin Funds Federal Funds

96 2012 FEC Information Division State/Local Party Accounts State/Local Party Accounts Nonfederal Account: Funds governed by applicable state law Often used to support candidates for state and local offices Often used to support candidates for state and local offices

97 2012 FEC Information Division Prohibited Activity Generally, federal candidates and officeholders cannot solicit, receive, direct, transfer, spend or disburse funds outside of Federal limits or from prohibited sources in connection with elections. Party Fundraising by Candidates/Officeholders

98 2012 FEC Information Division Party Nonfederal Fundraisers Candidate/Officeholder may: Candidate/Officeholder may: Attend, speak or be a featured guest at event where nonfederal or Levin funds are raisedAttend, speak or be a featured guest at event where nonfederal or Levin funds are raised Solicit funds at event only if solicitation limited to Federal fundsSolicit funds at event only if solicitation limited to Federal funds Written notice limiting solicitation to Federal Funds ORWritten notice limiting solicitation to Federal Funds OR Oral statement limiting solicitation to Federal FundsOral statement limiting solicitation to Federal Funds Must be clear and conspicuous; Not clear and conspicuous if difficult to read or hear or if placement is easily overlookedMust be clear and conspicuous; Not clear and conspicuous if difficult to read or hear or if placement is easily overlooked

99 2012 FEC Information Division Publicity for Nonfederal Fundraisers Publicity for Nonfederal Fundraisers Use of Candidate/Officeholder name or likeness in publicity: That does not contain a solicitation -That does not contain a solicitation - That solicits only Federal funds -That solicits only Federal funds - That solicits nonfederal or Levin funds -That solicits nonfederal or Levin funds - The Candidate/Officeholder is identified in manner not specifically related to fundraising (featured guest, honored guest, special guest, featured speaker, or honored speaker) ANDThe Candidate/Officeholder is identified in manner not specifically related to fundraising (featured guest, honored guest, special guest, featured speaker, or honored speaker) AND The publicity includes disclaimer that solicitation is not being made by the Candidate/OfficeholderThe publicity includes disclaimer that solicitation is not being made by the Candidate/Officeholder YES YES CONDITIONAL ONLY IF:

100 2012 FEC Information Division Publicity for Nonfederal Fundraisers Publicity for Nonfederal Fundraisers MAY NOT use Candidate/Officeholder name or likeness in publicity that solicits nonfederal funds if Candidate/Officeholder:MAY NOT use Candidate/Officeholder name or likeness in publicity that solicits nonfederal funds if Candidate/Officeholder: Serves in a position specifically related to fundraising, or is extending an invitation to the event, even if the communication contains a written disclaimer; ORServes in a position specifically related to fundraising, or is extending an invitation to the event, even if the communication contains a written disclaimer; OR Signs the communication, even if the communication contains a written disclaimerSigns the communication, even if the communication contains a written disclaimer A Candidate/Officeholder may not disseminate publicity for a nonfederal fundraising event that contains a solicitation of nonfederal or Levin funds by someone other than the Federal candidate or officeholder.A Candidate/Officeholder may not disseminate publicity for a nonfederal fundraising event that contains a solicitation of nonfederal or Levin funds by someone other than the Federal candidate or officeholder.

101 2012 FEC Information Division Publicity for Nonfederal Fundraising Events Scenario

102 2012 FEC Information Division Example PERMISSIBLE!!! The Freedom Party (nonfederal account) cordially invites you to a fundraising event with HONORARY CHAIR U.S. REPRESENTATIVE JANE DOE Saturday, September 24, 7 P.M. Hotel California 1234 Maine Avenue Paid for by the Freedom Party and not authorized by any candidate or candidate’s committee. Note: Federal candidates and officeholders may be identified in any role or manner on publicity that does not contain a solicitation No solicitation Because this example does not contain a solicitation, no additional disclaimer is required other than any existing applicable federal disclaimer. (This example does not address any other applicable requirement under State law.)

103 2012 FEC Information Division Example PERMISSIBLE!!! The Freedom Party (nonfederal account) cordially invites you to a fundraising event with EVENT CHAIRMAN U.S. SENATOR JOHN SMITH Saturday, September 24, 7 P.M. Hotel California 1234 Maine Avenue Please RSVP with your $500 contribution (no corporations, labor organizations, national banks, federal contractors or foreign nationals, please) to (123) Make checks payable to the Freedom Party (nonfederal account) and mail to: 222 Central Avenue, Union, ST Paid for by the Freedom Party and not authorized by any candidate or candidate’s committee. Contains a solicitation within the federal amount limits and source prohibitions Because this example contain a solicitation that complies with the federal limits and prohibitions, no additional disclaimer is required other than any existing applicable federal disclaimer. (This example does not address any other applicable requirement under State law.) Note: Federal candidates and officeholders may be identified in any role or manner on publicity that contains a solicitation of funds within the federal amount limitations and prohibitions.

104 2012 FEC Information Division Example PERMISSIBLE!!! The Freedom Party (nonfederal account) cordially invites you to a fundraiser with: HONORED SPEAKER U.S. SENATOR JANE SMITH Saturday, September 24, 7 P.M. Hotel California 1234 Maine Avenue Please RSVP with your $25,000 donation to (123) Make checks payable to the Freedom Party and mail to: 222 Central Avenue, Union, ST All solicitations of funds in connection with this event are by the Freedom Party and not by Senator Smith. Paid for by the Freedom Party and not authorized by any candidate or candidate’s committee. Contains a solicitation outside the federal amount limits and source prohibitions Federal officeholder must be identified in a non-fundraising role because this contains a solicitation outside the federal amount limitations Because this contains a solicitation outside the federal limits and prohibitions, it requires a clear & conspicuous disclaimer that the solicitation is not being made by the federal officeholder. (The solicitation disclaimer may be placed in the same box as any other applicable federal disclaimer requirement. Any other applicable disclaimer requirement under state law, which this example does not address, should be placed outside of the federal box.

105 2012 FEC Information Division Example IMPERMISSIBLE!!! U.S. Senator John Smith cordially invites you to a fundraising event for the Freedom Party (nonfederal account). Saturday, September 24, 7 P.M. Hotel California 1234 Maine Avenue Please RSVP with your $25,000 contribution to (123) Make checks payable to the Freedom Party (nonfederal account) and mail to: 222 Central Avenue, Union, ST All solicitations of funds in connection with this event are by the Freedom Party and not by Senator Smith. Paid for by the Freedom Party and not authorized by any candidate or candidate’s committee. Contains a solicitation outside the federal amount limits and source prohibitions This problem cannot be “cured” by including a disclaimer that the impermissible solicitation is not being made by the federal officeholder. In this example, the federal officeholder impermissibly is extending the invitation on publicity containing a solicitation for funds outside the federal limits and prohibitions.

106 2012 FEC Information Division Example IMPERMISSIBLE!!! Join Honorary Chair U.S. Senator John Smith at a fundraiser for the Freedom Party (nonfederal account). Saturday, September 24, 7 P.M. Hotel California 1234 Maine Avenue Please RSVP with your $25,000 contribution to (123) Make checks payable to the Freedom Party (nonfederal account) and mail to: 222 Central Avenue, Union, ST All solicitations of funds in connection with this event are by the Freedom Party and not by Senator Smith. Paid for by the Freedom Party and not authorized by any candidate or candidate’s committee. Contains a solicitation outside the federal amount limits and source prohibitions This problem cannot be “cured” by including a disclaimer that the impermissible solicitation is not being made by the federal officeholder. In this example, the federal officeholder impermissibly is identified in a role specifically related to fundraising on publicity containing a solicitation for funds outside the federal limits and prohibitions.

107 2012 FEC Information Division Workshop Evaluation Help Us Help You! Please complete an evaluation of this workshop.

108 2012 FEC Information Division Next Workshops: Tomorrow Morning 8:00 am Breakfast with the IRS 9:15 am Party Operations Part 3


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