Presentation on theme: "COMMITTEE TREASURER’S 2009 WORKSHOP California Democratic Party Executive Board Meeting July 18, 2009 Presented by: LANCE H. OLSON RICHARD R. RIOS Olson,"— Presentation transcript:
COMMITTEE TREASURER’S 2009 WORKSHOP California Democratic Party Executive Board Meeting July 18, 2009 Presented by: LANCE H. OLSON RICHARD R. RIOS Olson, Hagel & Fishburn, LLP 555 Capitol Mall, Suite 1425 Sacramento, California 95814 (916) 442-2952 www.olsonhagel.com
BASIC CONCEPTS Volunteer activities are not regulated by local, state or Federal campaign finance laws. The receipt and expenditure of money for political activities may result in registration and reporting under state and/or Federal campaign finance laws. The type of political organization (Central Committee v. Club) may determine how it is regulated under state and/or Federal campaign finance laws (e.g., limits on contributions to candidates).
BASIC CONCEPTS Different political activities e.g., voter registration, GOTV will likely be regulated in different ways by state and Federal campaign finance laws Many election activities at the State or local level are Federally regulated and subject to Federal contribution limits and source prohibitions Other state and Federal laws may impact your political organization (e.g., IRS, state employment laws, ADA) “Contribution” includes monetary contributions, non-monetary contributions and loans
BASIC CONCEPTS Nonmonetary contributions can include use of office space, phones, equipment, paid staff, public communications and other payments coordinated with a candidate or political party organization An independent expenditure is a payment for a communication that identifies a candidate or ballot measure and expressly advocates the election or defeat of the candidate or measure, but is not done in coordination with the candidate or ballot measure Must have individual who will be responsible for learning and complying with laws and regulations
WORKSHOP OBJECTIVES Educate treasurers and bookkeepers for County Central Committees and Democratic Clubs Overview of Federal and State Campaign Reporting laws Topics covered include qualification as a committee, contribution limits, disclaimers, prohibitions and reporting Materials include copy of this presentation and Campaign Finance Guide for Local Democratic Party Organizations in California
FEDERAL LAW Qualification as a Federal Committee – Registration and Reporting for County Central Committees Make more than $1,000 in contributions (including nonmonetary) or expenditures on behalf of specific federal candidates in a calendar year Receive more than $5,000 in contributions during a calendar year raised to be used in connection with Federal elections. Specific solicitations for contributions refer to a Federal candidate or Federal election Making contributions to Federal candidates or committees
FEDERAL LAW Make more than $5,000 in expenditures for “exempt party” activities Mailed slate cards featuring Federal candidates Volunteer distributed and non-commercially mailed campaign literature, buttons, brochures, signs featuring Federal candidates Voter registration and GOTV on behalf of presidential nominee Qualification as a Federal Committee – Clubs Receives contributions in excess of $1,000 or makes expenditures in excess of $1,000 during a calendar year for the purpose of influencing a Federal election
FEDERAL LAW Federal Prohibitions and Limitations on Contributions Received and Made Receipt of corporate, union and foreign national contributions prohibited and should not be deposited into Federal bank accounts $5,000 per calendar year limit on contributions from permissible sources received by Clubs or Central Committees $10,000 limit from individuals and PACs for Central Committees if affiliated with State Party; $5,000 per year from multi-candidate PACs $2,400 per election limit on contributions made to Federal candidates unless “multi-candidate committee,” then $5,000 per election Expenditures by County Central Committees for exempt party activities are not limited Slate mail Volunteer distributed brochures, buttons, bumper stickers Voter registration for presidential nominee
FEDERAL LAW Affiliation with State Party FEC presumes Central Committees are affiliated with State Party, but... County Central Committees are not affiliated if not established, financed, maintained or controlled by State Party; FEC Form 1 Section 5(d) should indicate that Central Committees are subordinate (SUB) Section 6 should indicate “None” to reflect no affiliation with CDP. Clubs are not affiliated with County Central Committees or State Party
FEDERAL LAW General Rules for Operating a Federal Political Committee for Central Committees and Clubs Solicitation of contributions to a Federal committee must advise donor of use, limitations and prohibitions of Federal law No cash contributions over $100 Must use “best efforts” to collect donor occupation / employer information Disclaimer rules require printed materials contain “paid for by” with committee name, and phone number, address or website printed in 12- point type in box. Also, if communication is authorized by any federal candidate
FEDERAL LAW SUPPORT FROM FEDERAL CANDIDATES FOR FUNDRAISING Federal candidates are prohibited from raising non-Federal money. There is an exception that allows Federal officeholders or candidates to attend local party fundraising events (not Clubs) as featured speakers or honored guests. Federal Candidate may participate fully if only Federally- permissible funds are raised. May appear on “save the date” announcements that do not solicit funds. Must provide disclaimer if soliciting funds at event where non- Federal funds are being raised.
FEDERAL LAW Operating a Federal Political Committee and State Committee of a County Central Committee Maintain separate bank account for Federal committee Deposit only Federally permissible funds in Federal account Except as noted below, pay for all activities from Federal bank account and reimburse allocated share from state bank account - Exceptions for using non-Federal account: - contributions to state and local candidates - meetings and conventions - 100% non-federal fundraising expenses - Employees who spend no time influencing federal elections
FEDERAL LAW Basic allocation ratio is 21% Federal / 79% non-Federal for 2009-2010 cycle (e.g., rent and other overhead expenses) Employee salaries vary –Employees who spend more than 25% of their time working in connection with a federal election must be paid with 100% Federal funds –Employees who spend between 1% and 25% of their time working in connection with Federal elections may be paid 21% Federal/79% non-Federal Fundraising expenses allocated based on “funds received”
FEDERAL LAW Paying Bills BILL Federal Account Non-Federal Account WITHIN 60 DAYS
FEDERAL LAW Federal Election Activity Applies to County Central Committees but not Clubs Basic Rule: “Federal Election Activity” must be paid with Federal hard dollars. No union or corporate funds may be used Exception: BCRA allows local parties to pay a share of some “Federal Election Activity” with either a share of federal and non-federal funds ora share of federal and Levin funds Levin Funds: Non-Federal contributions (e.g., unions and corporations) up to $10,000 per source per calendar year.
FEDERAL LAW Federal Election Activity Includes: Voter Registration Voter Identification Get-out-the-vote activity (GOTV) Generic campaign activity Public communication Salary of a party employee (if more than 25% of time is spent in connection with a Federal election)
FEDERAL LAW VOTER REGISTRATION Contacting individuals by telephone, in person or by other individualized means to assist in registering to vote in the 120 days before an election at which Federal candidate will appear No reference to a Federal candidate is required Includes: Printing and distributing registration and voting information Providing people with voter registration forms Assisting individuals in completing and filing voter registration forms Within 120 days of election must pay with 100% Federal funds or allocate 21% Federal and 79% Levin Outside 120 days of election may pay with 100% federal funds or allocate 21% federal and 79% non-federal
FEDERAL LAW VOTER IDENTIFICATION Creating or enhancing voter lists by verifying or adding information about the voters’ likelihood of voting in an upcoming election or their likelihood of voting for specific candidates No reference to a Federal candidate is required Time Frame: March 12 through November 2, 2010; March 10 through July 14, 2009 for CD32 Special Election During the time frame must pay with 100% Federal funds or allocate 21% Federal and 79% Levin
FEDERAL LAW GOTV Contacting voters by phone, in person or in other individualized ways to assist them in voting Includes providing individual voters, within 72 hours of the election information such as: Date of election (Los Angeles DCC exception) Time polls are open Polling place information Offering or providing transportation to the polls GOTV activity need not mention a Federal candidate Time Frame: March 12 through November 2, 2010; Note: March 10 through July 14, 2009 for CD32 Special Election During time frame must pay with 100% Federal funds or allocate 21% Federal and 79% Levin.
FEDERAL LAW GENERIC CAMPAIGN ACTIVITY Campaign activity that promotes a political party and does not promote any Federal or non-Federal candidates Includes: Public communication urging voter to “VOTE DEMOCRAT!!” Promotes party principles Time Frame: March 12 through November 2, 2010; Note: March 10 through July 14, 2009 for CD32 Special Election During Time Frame must pay with 100% Federal funds or allocate 21% Federal and 79% Levin.
FEDERAL LAW PUBLIC COMMUNICATIONS Communications that refer to a clearly identified candidate for Federal office (regardless of whether a state or local candidate is also mentioned) that promotes, supports, attacks or opposes a candidate for Federal office Includes –TV, radio, magazines, billboards, mass mailings (more than 500 pieces), telephone banks (more than 500 substantially similar phone calls) or other general public political advertising –Use of the internet (i.e., a website or email) is not public communication, unless paid for and posted on the website of a third party Applies at any time Must be paid with 100% Federal funds
FEDERAL LAW 25% OF EMPLOYEE SERVICES Salary of a State or Local Party employee who spends over 25% of his or her compensated time in a month in connection with any federal election must pay with 100% Federal funds If 25% or less pay with 100% Federal funds or allocate 21% Federal and 79% non-Federal If 0% spent in connection with Federal elections, then may pay 100% non-Federal Rules apply at all times
FEDERAL LAW WHAT IS NOT FEDERAL ELECTION ACTIVITY? Voter registration outside 120 days before a Federal election (allocate 21% federal funds and 79% non-Federal funds) The cost of a state or local political convention and meetings (100% non-Federal funds) Public communications that refer only to a candidate for state or local office as long as it is not a form of “Federal Election Activity”, e.g., GOTV activity (100% non-Federal funds) Contributions to state or local candidates (100% non-Federal funds) Grassroots campaign materials (buttons, posters, yard signs, and bumper stickers) that depict only candidates for state or local office (100% non-Federal funds)
FEDERAL LAW VOTER IDENTIFICATION For Central Committees voter identification activities between March 12, 2010 and November 2, 2010 must be paid with 100% Federal funds or allocated between Federal 21% and Levin 79% funds
FEDERAL LAW GOTV EFFORTS GOTV activity outside the Federal Election Activity window if specific to a non-Federal candidate may be paid for with 100% non- Federal funds GOTV within the FEA window must be paid with 100% Federal funds or allocated between Federal and Levin funds (21% Federal and 79% Levin)
FEDERAL LAW MAILERS For Central Committees, more than 500 pieces of substantially-similar mail that refer to a clearly identified candidate for Federal office and promote, support, attack or oppose a candidate for that office must be paid using 100% Federal funds – no allocation permitted
FEDERAL LAW MAILERS For Central Committees mail pieces that promote a political party (e.g. Vote Democrat), do not promote any candidates, and are sent outside the FEA window may be paid with 100% Federal funds or allocated between Federal and non-Federal funds (21% Federal and 79% non-Federal)
FEDERAL LAW PHONE BANKS For Central Committees, more than 500 substantially-similar calls that refer to a clearly identified candidate for Federal office and promote, support, attack or oppose a candidate for that office must be paid using 100% Federal funds.
FEDERAL LAW PHONE BANKS For Central Committees, phone banks that promote a political party (e.g., Vote Democrat), do not promote any candidates, and are sent between March 12 through November 2, 2010 may be paid with 100% Federal funds or allocated between Federal and Levin funds 21% Federal and 79% Levin)
FEDERAL LAW VOTER REGISTRATION Central Committees conducting voter registration within 120 days of Federal election must pay with 100% Federal funds or allocate between Federal 21% and Levin 79% funds. Central Committees conducting voter registration outside 120 days must pay with 100% Federal funds or allocate between Federal 21% and non- Federal 79% funds.
FEDERAL LAW OFFICE SPACE AND RELATED EXPENSES If expenditure for office space is nonmonetary contribution to a Federal candidate then must be paid with 100% Federal funds If registered with FEC, Central Committees must pay general office overhead expenditures with 100% Federal funds or with allocated Federal and non-Federal funds (21% Federal and 79% non- Federal)
CALIFORNIA LAW Qualification as a Political Committee – Registration and Reporting Required Central Committees and Clubs which receive $1,000 in con- tributions for political purposes. Includes receiving funds to: Make Contributions to state and local candidates and ballot measures Make independent expenditures for state and local candidates and ballot measures Conduct partisan voter registration or GOTV activities
CALIFORNIA LAW Contribution Limits – Clubs Contributions Received (including nonmonetary) $6,500 calendar year limit on contributions from any one source received for the purpose of making contributions to candidates for state elective office (“All Purpose” account) No limit on contributions received for activities that do not involve contributions to candidates for state elective office, e.g., voter registration, general overhead expenses or independent expenditures (“Restricted Use” account) Local jurisdictions may impose limits for use in local elections Contributions received not aggregated with State or County Central Committees
CALIFORNIA LAW Contribution Limits – Clubs Contributions made (including nonmonetary) $3,900 per election on contributions to legislative candidates $7,800 per election on contributions to legislative candidates if a “small contributor committee” $6,500 per election on contributions to statewide candidates other than Governor
CALIFORNIA LAW $12,900 per election on contributions to Statewide candidates other than Governor if a “small contributor committee” $25,900 per election on contributions to candidates for Governor Primary and General are separate elections Local jurisdictions may impose limits on contributions to local candidates
CALIFORNIA LAW Contribution Limits – County Central Committees Contributions Received (including nonmonetary) $32,400 calendar year limit on contributions from any one source received for the purpose of making contributions to candidates for state elective office (“All Purpose” account) No limit on contributions received for activities that do not involve contributions to candidates for state elective office, e.g., voter registration, general overhead, ballot measures or independent expenditures (“Restricted Use” account) Local jurisdictions may impose limits for use in local elections Contributions received are not aggregated with contributions to State Party
CALIFORNIA LAW Contribution Limits – County Central Committees Contributions made (including non-monetary) No limit on contributions made to candidates for state elective office Local jurisdictions may impose limits on contributions to local candidates County Central Committees may coordinate contribution activity with State Party
CALIFORNIA LAW Member Communications Payment by County Central Committees for targeted communication to voters registered as Democrats for the purpose of supporting or opposing candidates are not contributions or independent expenditures Expenditures by County Central Committees for member communications must still be reported by the committee (but not the candidate) If the member communication is coordinated with a candidate, the expenditure must be paid from the “All Purpose” account
CALIFORNIA LAW Member Communications This rule applies to communications to the families of members in the same household This rule applies in all state and local elections, although some charter cities (e.g. Los Angeles) impose different rules This exemption does not apply to general public advertising (T.V., radio billboards, lawn signs, web sites, etc.) Registration as a Democrat does not make a voter a “member” of a Club
CALIFORNIA LAW General Requirements / Prohibitions No cash receipts or expenditures of $100 or more (includes money orders and cashiers checks) Subvendor disclosure ($500 threshold) Disclose street address and occupation / employer information on all $100 or more donors – return contributions within 60 days if missing No foreign national contributions File campaign reports timely – SOS / FPPC Penalties Sender identification rules require name and address of committee printed in 6-point type on outside of mailers Disclaimer requirements for phone banks of 500 or more calls. Does not apply to all volunteer phone banks Required to keep records for four years Independent expenditure communications must include a “not authorized by a candidate” statement
CALIFORNIA LAW ELECTRONIC FILING Required to file electronically with the Secretary of State if Central Committee or Club has received cumulative contributions or made expenditures totaling $50,000 or more since January 1, 2000. Paper filing still required even if an electronic filer
CALIFORNIA LAW WHERE TO FILE County Central Committees are by definition “State general purpose Committees and file original reports with SOS and copies with Los Angeles and San Francisco Democratic Clubs must conduct quarterly check of activities to determine if State, County or City filer If 50 percent or more of activities at City, County or State Level, then amend Form 410 to reflect status If 70 percent or more of activities to support candidates or measures on same ballot (other than state candidates), then club is primarily formed to support candidates or measures Calculation period is either the prior 24 month period or current 2-year period beginning Jan. 1 of odd year. Pick time frame that best represents current or upcoming activities
CALIFORNIA LAW WHEN TO FILE Semi-Annual Statement (Form 460) ●Due July 31 (period ending June 30) ●Due January 31 (period ending December 31) ●Mandatory Reports Odd Year Reporting (Form 460) ● Odd year Quarterly Reports required if contributions of $10,000 or more to elected state officials during First and Third Quarters (Due April 30 and October 31)
CALIFORNIA LAW Pre-election Reports County Central Committees file Pre-election reports in connection with State elections, including special elections, if they receive contributions of $1,000 or more, or make contributions or expenditures of $500 or more during a pre- election period. Contributions and expenditures do not have to relate to the State election. Supplemental IE Report (Form 465) Required if independent expenditures of $1,000 or more are made during the calendar year. May be filed pre-election and/or semi-annually Supplemental Pre-Election Reports (Form 495) Required if contributions totaling $10,000 or more are made in connection with an election other than June/November even year election (e.g., odd-year local elections Example: City of Hayward has election with a ballot measure and candidates. Alameda Central Committee contributes $5,000 to Candidate A + $5,000 in support of Ballot Measure X, Central Committee files supplemental pre-election report.
CALIFORNIA LAW Late Contribution Reports (Form 497) County Central Committees – required if committee either receives a contribution of $1,000 or more, or makes a contribution of $1,000 or more to a candidate or ballot measure within 16 days of an election This includes contributions of $1,000 or more received within 16 days of a special election (e.g., SD 26), or contributions of $1,000 or more to special election candidates in the final 16 days of the election Clubs have a different rule – required only if committee makes a contribution of $1,000 or more to a candidate or ballot measure within 16 days of an election at which the candidate or measure appear Must be filed within 24 hours
CALIFORNIA LAW Late Independent Expenditure Reports (Form 496) Required within 24 hours if committee makes an IE of $1,000 or more within 16 days of an election Umberg Reports (Form 496/497) -- Electronic filers file within ten days of making contributions or IE’s of $5,000 or more to support or oppose State ballot measures
CALIFORNIA LAW Special Online Independent Expenditure Report Required if committee makes an IE of $1,000 or more within 90 days of an election Only for electronic filers – no paper report required Only for support or opposition to state candidates or state ballot measures See State Reporting Calendars in Survival Guide, Appendix 1-2.
CALIFORNIA LAW VOTER REGISTRATION No limits on contributions received or expenditures made for voter registration Unless express advocacy for candidate, no nonmonetary contribution results from coordinating with non-Federal candidate
CALIFORNIA LAW VOTER IDENTIFICATION Coordinated expenditures with non-Federal candidate may result in nonmonetary contribution, and expenditures would have to be paid from “All Purpose” account subject to contribution limits.
CALIFORNIA LAW OFFICE SPACE AND RELATED EXPENSES If expenditure for office space is an in-kind contribution to a non-Federal candidate then must be paid from “All Purpose” account subject to limits
CALIFORNIA LAW GOTV EFFORTS Coordinated expenditures with non- Federal candidate may result in an in- kind contribution. Expenditures would have to be paid from “All Purpose” account subject to limits
CALIFORNIA LAW MAILERS Coordinated expenditures which expressly advocate the election of a non-Federal candidate may result in a nonmonetary contribution, and expenditures would have to be paid from “All Purpose” account subject to limits.
CALIFORNIA LAW PHONE BANKS Coordinated expenditures with non-Federal candidate may result in nonmonetary contribution and expenditures would have to be paid from “All Purpose” account subject to limits
RESOURCE LIST Fair Political Practices Commission 428 J Street, Suite 450 Sacramento, CA 95814 Phone: (916) 322-5660 Fax: (916) 322-0886 Telephone Assistance: (866) ASK-FPPC Enforcement Complaints: (800) 561-1861 www.fppc.ca.gov California Secretary of State 1500 11thStreet Sacramento, CA 95814 Phone: (915) 653-6814 www.ss.ca.gov Federal Election Commission 999 E St. NW Washington, DC 20463 Phone: (800) 424-9530 In Washington (202) 694-1100 www.fec.gov
RESOURCE LIST – Cont’d. Los Angeles City Ethics Commission 200 N. Spring Street City Hall, 24 th Floor Los Angeles, CA 90012 Phone: (213) 978-1960 Fax: (213) 978-1988 www.ethics.lacity.org San Francisco Ethics Commission 30 Van Ness Avenue, Suite 3900 San Francisco, CA 94102 Phone: (415) 581-2300 Fax: (415) 581-2317 Ethics.firstname.lastname@example.org www.sfgov.org/site/ethics_index.asp
RESOURCE LIST – Cont’d. Oakland City Ethics Commission One Frank Ogawa Plaza Oakland, CA 94612 Phone: (510) 238-3593 Phone: (510) 238-6620 Fax: (510) 238-3315 Ethicscommission@oaklandnet.com www.oaklandnet.com/government/public_ethics/webpage.html Olson Hagel & Fishburn LLP 555 Capitol Mall, Suite 1425 Sacramento, CA 95814 (916) 442-2952 (916) 442-1280 www.olsonhagel.com