1. Political Tools & Legal Issues Midwest Association of Chamber Executives Nov. 4, 2015

2. Today’s Agenda Shameless Self-Promotion Foundations & Basic Considerations Advocacy 101 Levels of Political Ninjitsu White – Grassroots Engagement/Education Yellow - Lobbying Green – Grassroots Advocacy Brown – Political Education Black – Political/Candidate Advocacy

3. Promotional Considerations Paid For by the Following: Grassroots & Campaign Professionals Past & Present Clients Include: AT&T Twin Metals Minnesota Mayo Clinic Long-Term Care Imperative Enbridge Energy Minnesota Chamber of Commerce “Wrong About Everything” Podcast – Debuted in May 2014 Politics the way it should be – irreverent and fun.

4. So you want to get into politics…. You decided that when you incorporated 501(c)(6): “Organizations described in IRC 501(c)(6) may engage in an unlimited amount of lobbying, provided that the lobbying is related to the organization‘s exempt purpose.“ ( “IRC 501(c)(6) organizations may engage in political campaigns on behalf of or in opposition to candidates for public office provided that such intervention does not constitute the organization‘s primary activity.

5. Basic Considerations Pick your market Be prepared to say no to friends Also be prepared to say yes Know thy Rules Know a Lawyer. No one can be an expert by themselves.

6. Let’s Define Advocacy A spectrum of potential activities Newsletter to members = advocacy “Vote for Al Smith” = advocacy “HF 1414 would kill manufacturing in Wisconsin” = advocacy “Learn more about your candidates” = advocacy EACH EXAMPLE HAS RULES! Know thy rules – but don’t use rules as an excuse for inaction. (Political) life is hard. Get a helmet. (And a lawyer)

7. White Belt – Grassroots Engagement/Education Essential Activity = Ensuring a decisionmaker understands the impacts of a policy from the perspective of your members. Not necessarily any formal Chamber action – just a “heads up” from your members Examples Newsletter Column Facility Tour Coffee with Legislator Impact Level – LOW TO MEDIUM Cost – LOW (sometimes virtually zero) Legal Consideration – DEFCON 5 (least concern)

8. Yellow Belt - Lobbying Expressly Contemplated in 501(c)(6) Essential Activity = Going “on the record” publicly on a specific policy Examples City Hall – Offering a Letter to Council Members regarding a proposed lodging tax State Capitol – Offering testimony in front of a committee, or spending $$ to encourage a legislator to vote NO on HF 1351 U.S. Capitol - Impact Level – MEDIUM TO HIGH Cost – MEDIUM to HIGH Legal Consideration – DEFCON 4 (“above normal readiness”)

9. Yellow Belt – Lobbying (cont.) When are you a lobbyist? Contacting a Legislator? - MAYBE Telling members to support/oppose a bill? – MAYBE “A government action” Spending time at a capitol/City Hall? - MAYBE Spending $$ on any of the above? – YES…maybe... Federal - $3,000 for a firm; $12,500 for an organization State – depends, but usually turns on compensation – and there are exceptions

10. Green Belt – Grassroots Advocacy/Lobbying A little more intensive than just education – contemplates strategic advocacy efforts Why do this? Examples Impact Level – HIGH Cost – MEDIUM to HIGH Legal Consideration – DEFCON 4 (“above normal readiness”)

11. Green Belt – Grassroots Advocacy/Lobbying Are you lobbying? Maybe…

12. Brown Belt – Political Education Examples City Hall – Offering a Letter to Council Members regarding a proposed lodging tax State Capitol – Offering testimony in front of a committee, or spending $$ to encourage a legislator to vote NO on HF 1351 U.S. Capitol - Impact Level – MEDIUM Cost – LOW to MEDIUM Legal Consideration – DEFCON 4 (“above normal readiness”) for a candidate forum; DEFCON 3 (“Ready to Mobilize”)

13. Brown Belt – Political Education

14. Black Belt – Political Candidate/Advocacy Examples City Hall – Offering a Letter to Council Members regarding a proposed lodging tax State Capitol – Offering testimony in front of a committee, or spending $$ to encourage a legislator to vote NO on HF 1351 U.S. Capitol - Impact Level – HIGH Cost – MEDIUM to HIGH Legal Consideration – DEFCON 2 (“Ready to Engage Quickly”) for positive messaging; DEFCON 1 (“Maximum Readiness”) for negative messaging

15. Citizens United v. FEC Overturned Austin, and held that the government could not prohibit independent expenditures just because they are made by a corporation. Distinction between expenditure and contribution: “[I]ndependent expenditures, including those made by corporations, do not give rise to corruption or the appearance of corruption.”

16. Q & A Some Sample Questions in case you’re shy… Do we need a full-time staffer to do this? What about internal procedures/policies? What of tax exempt status? What is “dark money?” Seriously, a Lawyer? Is this real life?

17. Thank you! Mike Franklin mike@weberjohnsonpa.com @m_a_franklin (612) 578-5372