Transcript COMMITTEE TREASURER’S 2007 WORKSHOP

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 12point 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 Federallypermissible funds are raised.
• May appear on “save the date” announcements that do not
solicit funds.
• Must provide disclaimer if soliciting funds at event where nonFederal 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
WITHIN 60 DAYS
Non-Federal
Account
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% nonFederal 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 nonFederal 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% nonFederal)
CALIFORNIA LAW
Qualification as a Political Committee –
Registration and Reporting Required
Central Committees and Clubs which receive $1,000 in contributions 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 preelection 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 nonFederal candidate may result in an inkind 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, 24th 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
[email protected]
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
[email protected]
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