2. PAC Operations Part 3 PAC Operations Part 3 February 23, 2012 9:15 - 10:45 am Tab 4

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

4. Supporting Federal Candidates Direct ContributionsDirect Contributions Earmarked ContributionsEarmarked Contributions In-Kind ContributionsIn-Kind Contributions 2012 Federal Election Commission

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

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

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

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

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

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

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

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

13. Supporting Federal Candidates Direct ContributionsDirect Contributions Earmarked ContributionsEarmarked Contributions In-Kind ContributionsIn-Kind Contributions 2012 Federal Election Commission

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

15. Effect on Contribution Limits An earmarked contribution counts against: The contributor’s limit for the recipient candidate ANDThe contributor’s limit for the recipient candidate AND The PAC’s limits IF:The PAC’s 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

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

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

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

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

20. Supporting Federal Candidates Direct ContributionsDirect Contributions Earmarked ContributionsEarmarked Contributions In-Kind ContributionsIn-Kind Contributions 2012 Federal Election Commission

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

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

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

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

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

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

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

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

29. Coordinated Communication Coordinated Communication Independent Expenditure Independent Expenditure PAC Communications 2012 Federal Election Commission

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 candidate’s 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

31. Three-Part Coordinated Communication Test ► Source of Payment ► Content Standard ► Conduct Standard ▼ Source of Payment Paid for by the PAC

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

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

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

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

36. Coordinated Communication Coordinated Communication Independent Expenditure Independent Expenditure PAC Communications 2012 Federal Election Commission

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

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

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

40. Independent Expenditures Example

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

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

43. Reporting Independent Expenditures Scenario 2012 Federal Election Commission

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

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

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

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

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

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

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

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

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

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

54. Workshop Evaluation Help Us Help You! Please complete an evaluation of this workshop. 2012 Federal Election Commission

55. Next Workshop Best Practices for FEC Compliance 2012 Federal Election Commission