FEC Workshop: Federal Campaigns, Federal PACs and

Rules Political Party Committees
Kansas City, MO
August 5-6, 2009
Prepared by the Federal Election Commission
Program Overview
1. Raising Money
2. Spending Money
3. Reporting

Objectives
• Review federal contribution limits, prohibitions,
exemptions and fundraising restrictions
• Introduce new lobbyist bundling rules
• Look at ways to support candidates
• Review reporting periods and filing dates
• Help you manage accounts and disclose
allocable expenses correctly
Three Types of Accounts
 Federal Account: Funds subject to the limits,
prohibitions and reporting requirements of the
Federal Election Campaign Act.
 Nonfederal Account: Funds governed by state
law.
 Levin Account: Funds must comply with certain
limits and prohibitions of the Act and are also
governed by state law. $10,000 limit. Use for
FEA.
Three Types of Funds
With respect to federal elections . . .
Nonfederal Funds
Levin Funds
Federal Funds

Contribution Limits
Candidate National State, District Any PAC Special
2009-2010 per Party & Local per year Limits
election per year Party
per year
Individual $2,400 $30,400 $10,000 $5,000 $115,500
(combined) biennial
limit
National Party $5,000 No No $5,000 $42,600
Limit Limit per Senate
campaign
State, District & $5,000 No No $5,000 None

Local Party (combined) Limit Limit (combined)
PAC: $5,000 $15,000 $5,000 $5,000 None

multicandidate (combined)
PAC: not $2,400 $30,400 $10,000 $5,000 None

multicandidate (combined)

Prohibited Sources
In connection with federal elections:

• Corporations
• Labor Organizations
• Federal Government Contractors
• Contributions in the Name of Another
• Cash over $100
• Anonymous over $50

Prohibited Sources
In all elections:
• Foreign Nationals
• Federally Chartered Corporations

• National Banks

Questionable Contributions
• Deposit while confirming legality
• If unable to verify permissibility, must

refund within 30 days

Federal Funds
Funds deposited into the federal account

must meet one of these conditions:
► Designated or Solicited for Federal Account
► Contributors Informed that Contribution is

Subject to Federal Limits/Prohibitions

Levin Funds
► Raised only by a state or local party committee

► Funds must comply with state law
► $10,000 limit (unless lower limit under state law)
► Separate account not required
► Each committee has separate Levin fund limit
► Costs of raising Levin funds
► Used to pay for certain allocable “Federal Election
Activity” (FEA) Prepared by the Federal Election Commission
Registration Thresholds
Political Committee Status

► Unregistered local party organization may be
required to register if it:
Makes contributions or expenditures aggregating
over $1,000/year
Receives federal contributions over $5,000/year
Spends more than $5,000/year on exempt

activities

Party Affiliation
 State party committees and registered

local party committees are presumed to
be affiliated
 A local party committee may rebut this
presumption—demonstrate independence

Party Affiliation
Contribution Limits
 Contributions made and received by local party
committees count against the state committee’s limit

State party committee should set up system to
monitor all contributions made and received by local
party committees

Volunteer Exemptions
Volunteer Services
Personal Property
Home Event – $2,000/year
Unreimbursed Travel – $2,000/year

Computer Services Exemptions
Sending/Forwarding Emails
Creating/Maintaining/Hosting Website
Providing a Hyperlink to a Website

Posting Comments to a Blog
Using Work Computer for Online Political
Activity
Food/Beverage Exemption
• Amount charged = actual cost to vendor
• Discount limited to $2,000/year
• Vendor may be incorporated

Legal/Accounting Exemption
• Services cannot directly further election of

candidate
• Person paying for the services is the
employer
• Employer does not hire a replacement
• Party must report name of provider, date of
service and value

Fundraising by Candidates
Federal candidates, officeholders and their

agents may not raise funds for federal
elections outside the limits, prohibitions and
reporting requirements of the Act.
Federal candidates, officeholders and their
agents may only raise funds in connection with
nonfederal elections in amounts and from
sources that are consistent with state law and
within the limits and prohibitions of the Act.
State/Local Party Fundraisers
• Federal candidate/officeholder may attend,

speak or be featured guest at state/local party
fundraiser where nonfederal/Levin funds are
raised. Candidates/officeholders may speak at
such event without restriction or regulation.*
• Parties may advertise/publicize appearance and
candidates/officeholders.
* These rules were challenged in the “Shays III” litigation. Shays v. FEC (06-1247)
State/Local Party Fundraisers
Federal candidate/officeholder prohibited from:

• Serving on host committee for party fundraising
event at which nonfederal funds are raised
• Signing solicitation in connection with event
• Note: Rules only apply to fundraisers for state,
district, local party committees, not to other
fundraising events (e.g., state candidate events)
Objectives
General Information
Campaigns, parties & leadership PACs must
disclose certain bundled contributions from
lobbyists/registrants and their PACs
Effective Dates
►Recordkeeping for bundled contributions:
► March 19, 2009 for lobbyist/registrant bundlers
► April 18, 2009 for lobbyist/registrant PAC bundlers
First Disclosure by Campaigns: July 15, 2009

(for bundling activity through June 30, 2009)
New 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 $16,000 during a covered
period, the recipient committee must
report that on FEC Form 3L.
Lobbyist/Registrant PACs
www.fec.gov/finance/disclosure/lobbyist.shtml
www.fec.gov/info/guidance/hlogabundling.shtml
New Disclosure Rule
Definitions of Key Terms
Bundled Contributions
 Forwarded Contributions
 Received AND Credited Contributions
 Exception for Lobbyist/ Registrant/ PAC own
contributions
Tracking and Crediting

 Records
 Designations or Other Means of Recognizing
(including Titles, Tracking Identifiers, Access or
Mementos)
New Disclosure Rule

Covered Periods
Quarterly-Filing Parties
• Semi-annual Periods:
January 1 – June 30; July 1 – December 31
AND
• Quarterly Reporting Periods:
► Non-Election Year (2009):
Semi-annual, plus any applicable special election
reporting periods
► Election Year (2010):
Calendar quarters ending 3/31, 6/30, 9/30 and 12/31,
plus applicable pre- and post-election reporting periods
Covered Periods
Monthly Filers
• Semi-annual Periods:
January 1 – June 30; July 1 – December 31
AND
•Monthly Reporting Periods:
► Non-Election Year (2009):
20th of each month, except January 31Year-End
► Election Year (2010):
20th of each month, except Pre- and Post-General
election reports and January 31 Year-End
Does the reporting committee
accept bundled contributions?
NO YES
No obligation to Is the bundler a lobbyist/registrant

or lobbyist/registrant PAC?
file Form 3L NO
YES
NO Does the aggregate amount

of bundled contributions exceed
$16,000 for a covered period?
YES
Lobbyist Bundling
Disclosure The committee must
Flow Chart file Form 3L
Objectives
What is FEA?
Type 1 Type 3
Voter registration Public communication that
conducted 120 days promotes, attacks, supports or
before an election opposes any federal candidate
Type 2 Type 4
Voter identification, Salary of an employee of a

GOTV, generic campaign state or local party who spends
activity conducted “in more than 25% of time on
connection with an federal elections
election in which a
federal candidate is on
the ballot”
FEA Voter Registration
Type 1: Type 3:
Voter registration* Public communication that
before an election opposes (PASOs) any federal
candidate
Type 2:
GOTV*, voter Type 4:
identification and generic
campaign activity Salary of an employee of a
conducted “in connection state or local party who spends
with an election in which more than 25% of time on
a federal candidate is on
the ballot” federal elections
Examples of Voter
Registration Activity
Register to Vote • Booth at County Fair

• Phone Bank
Ask me how
• Campaign Rally

FEA Voter I.D.
Type 1: Definition:
Voter registration
 Creating or enhancing voter lists by
conducted 120 days adding information about voters’
before an election likelihood of voting in a particular
election or voting for a particular
candidate
Type 2:
Time Period:
Voter identification,
GOTV and generic
 “In connection with an election in
campaign activity which a federal candidate is on the
conducted “in connection ballot”
with an election in which
the ballot”
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 election
 For a special election: The day special election is set under
state law until the general election

FEA GOTV Activity
Type 3:
Type 1:
Public communication that
Voter registration promotes, attacks, supports or
conducted 120 days
candidate
Type 2:
Voter identification, Type 4:
GOTV and generic
FEA Generic Campaign Activity
Type 3:
Type 1:
Public communication that
Voter registration promotes, attacks, supports or
conducted 120 days
candidate
Type 2:
GOTV, voter Type 4:
identification and generic
FEA Public Communication
Type 1: Type 3:
before an election
opposes (PASOs) any federal
candidate
Type 2:
GOTV, voter
identification and generic Type 4:
campaign activity
conducted “in connection Salary of an employee of a
with an election in which state or local party who spends
a federal candidate is on more than 25% of time on
the ballot”
federal elections
FEA Salaries and Wages
Type 1: Type 3:
before an election
opposes (PASOs) any federal
candidate
Type 2:
GOTV, voter
identification and generic Type 4:
campaign activity
conducted “in connection Salary of an employee of a
with an election in which state or local party who spends
a federal candidate is on more than 25% of time on
the ballot”
federal elections
Not FEA
• Public communications that refer only

to nonfederal candidates
• Contributions to candidates for
state/local office
• Party meetings and conventions
• Grassroots materials for nonfederal
candidates
Financing FEA
Type 1:
Voter registration
conducted 120 days before
an election
Type 2:
GOTV, voter
Federal/Levin
identification and
generic campaign Allocation
activity conducted “in
connection with an
election in which a
federal candidate is on
the ballot” Prepared by the Federal Election Commission
Financing FEA
Type 3:
Public communication that promotes,
attacks, supports or opposes (PASOs)
any federal candidate
100% Federal Type 4:

Salary of an employee of a state or
local party who spends more than
25% of time on federal elections
Type 1 or Type 2 FEA if any
Federal candidate is mentioned

Exempt Activities
Special Features:
• Unlimited-- Contribution limits do not
apply
• Must use federally permissible funds
• Disclaimer Required

Exempt Activities
• Slate Cards/Sample Ballots

• Campaign Materials for General Election
• Presidential Voter Registration and GOTV
Drives

Exempt Activities
Allocation of Exempt Activity
 If conducted in conjunction with nonfederal activity:
allocate the costs between Federal and non-Federal
funds.
 DO NOT allocate between Federal and nonfederal, any
exempt activity that mentions ONLY Federal candidates.
Exempt Activity that is also FEA

 If Exempt Activity also meets one of the definitions of
FEA then it must be paid for as FEA, i.e. with Federal
funds.
441a(d) Expenditures
• National Party Committee
 House, Senate, Presidential candidates
• State Party Committee
 House, Senate candidates
 Presidential candidates (only if designated)
• Local/District Party Committee
 No Coordinated Party Spending authority unless
designated
Designation of limit:
 In advance
 In writing
 Keep written designation for 3 years
 Monitor and disclose expenditures made
by designated agents

• Funds spent by party

• Made for general election of party’s
candidate
• Separate limits apply; May designate limit
to other party committee
• Party reports; disclaimer required

Coordinated Communications
• If communication is coordinated, it is considered an

in-kind or a 441a(d) expenditure, subject to limits.
• Coordination three-part test:
Source of payment;
“Content standard*” re: timing and subject matter of
communication; AND
“Conduct standard*” re: interaction between campaign
and payee.
*Subject of litigation challenge in Shays v. FEC (Shays III)

Independent Expenditures
Communication that expressly advocates the

election or defeat of a clearly identified
candidate and is not made in cooperation,
consultation, or concert with, or at the request
or suggestion of a candidate or his/her agents.

Objectives
Reporting
• Non-Election Years:
 Semi-Annual Filing

Monthly Filing
• Other Considerations:
 No Extensions
 Registered v. Overnight Mail

Objectives
Paying Bills
Two Types of Bills:


100% Federal
 No allocation
 Allocable

Payment split between Federal/Nonfederal
funds or Federal/Levin funds
 Follow FEC allocation sequence to pay bill

Paying Allocable Expenses
Option 1: Use Federal Account


Pay allocable bill from federal account
 Transfer in appropriate amount of nonfederal or Levin to
cover share of each allocated expense
Option 2: Establish Allocation Account

 “Zero balance” account
 Transfer in appropriate amount of nonfederal or Levin to
cover share of each allocated expense
 Pay all allocable expenses from allocation account

Payment Sequence
• Federal or Allocation Account Pays Total Bill

• Nonfederal/Levin Account Transfers its Share
within a 70-Day Window
► Window opens 10 days before bill is paid,
closes 60 days after bill is paid

Non-Allocable Expenses
►Fundraising for the

federal account
►Exempt activity references
100% Federal only federal candidates
►Type 1 and Type 2 FEA
references federal candidate
►Type 3 and Type 4 FEA

Fed/Nonfederal Allocation
► Administrative Expenses
 Rent, utilities, staff salaries
► “Exempt Activities”
 Slate cards, campaign materials, Presidential
GOTV and voter drives that mention Federal and
nonfederal candidates
► Non-FEA Generic Voter Drives
► Fundraising Costs

Federal/Levin Allocation
► Type 1 FEA
• Voter registration 120 days before election

► Type 2 FEA
• Voter identification, generic campaign activity

and GOTV activity
Provided no federal candidates named

Allocation: Fixed Percentage
► Fixed Percentage:
• Presence of a Senate or Presidential candidate on

the next ballot in next general election
• Percentage used for entire two-year cycle

Allocation: Fixed Percentage
Federal
Candidates on the Ballot
Share
► If both President and Senate on ballot 36%
► If President but no Senate on ballot 28%
► If Senate but no President on ballot 21%
► Neither President nor Senate on ballot 15%

Allocation: Funds Received
Funds Received:
federal receipts for program or event
total receipts for program or event
• Estimate ratio based on prediction

• Within 60 days, adjust ratio and transfer funds
to reflect actual funds received
• Further transfers may be necessary if more
federal funds received than estimated
For More Information:
Publications
Conferences and Workshops
Our web site: www.fec.gov
Toll free information line:
(800) 424–9530
FAXLINE: (202) 501–3413
info@fec.govPrepared by the Federal Election Commission
Objectives
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Please complete an evaluation
of this workshop.

Thank You!
SAVE THE DATE:
FEC REGIONAL CONFERENCE
Chicago, IL
Sept. 15-16, 2009

FEC Workshop: Federal Campaigns, Federal PACs and

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Rules Political Party Committees

Prepared by the Federal Election Commission

With respect to federal elections . . .

Prepared by the Federal Election Commission

State, District & $5,000 No No $5,000 None

PAC: $5,000 $15,000 $5,000 $5,000 None

PAC: not $2,400 $30,400 $10,000 $5,000 None

Prepared by the Federal Election Commission

In connection with federal elections:

Prepared by the Federal Election Commission

• Federally Chartered Corporations

Prepared by the Federal Election Commission

• Deposit while confirming legality

• If unable to verify permissibility, must

Prepared by the Federal Election Commission

Funds deposited into the federal account

► Designated or Solicited for Federal Account

► Contributors Informed that Contribution is

Prepared by the Federal Election Commission

► Raised only by a state or local party committee

Political Committee Status

Spends more than $5,000/year on exempt

Prepared by the Federal Election Commission

 State party committees and registered

Prepared by the Federal Election Commission

Prepared by the Federal Election Commission

Home Event – $2,000/year

Unreimbursed Travel – $2,000/year

Providing a Hyperlink to a Website

• Amount charged = actual cost to vendor

• Discount limited to $2,000/year

• Vendor may be incorporated

Prepared by the Federal Election Commission

• Services cannot directly further election of

Prepared by the Federal Election Commission

Federal candidates, officeholders and their

• Federal candidate/officeholder may attend,

Federal candidate/officeholder prohibited from:

First Disclosure by Campaigns: July 15, 2009

Tracking and Crediting

Prepared by the Federal Election Commission

No obligation to Is the bundler a lobbyist/registrant

NO Does the aggregate amount

Voter identification, Salary of an employee of a

Register to Vote • Booth at County Fair

Prepared by the Federal Election Commission

“In connection with an election in which a federal

Prepared by the Federal Election Commission

• Public communications that refer only

100% Federal Type 4:

Prepared by the Federal Election Commission

Prepared by the Federal Election Commission

• Slate Cards/Sample Ballots

Prepared by the Federal Election Commission

Exempt Activity that is also FEA

Prepared by the Federal Election Commission

• Funds spent by party

Prepared by the Federal Election Commission

• If communication is coordinated, it is considered an

Prepared by the Federal Election Commission

Communication that expressly advocates the

Prepared by the Federal Election Commission

Prepared by the Federal Election Commission