Legislative Wrap-Up, 1113 ALBJ, 74 The Alabama Lawyer 420 (2013)
| Author | Othni J. Lathram Greg Butrus. |
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\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0The Long and Winding Road of Reform: Campaign Finance Changes 2010-2013
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0A year from now, in November 2014, we will be in the midst of a significant general election. Alabama will be holding elections for governor and other constitutional offices, a number of appellate judges, district and circuit judges, all members of the legislature, all sheriffs, and a number of local elected officials. This means that today candidates are in the midst of campaigning and fundraising for those elections.
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Few areas of the law have undergone such a dramatic change since the 2010 elections than Alabama's campaign finance statutes (which are primarily found in the Fair Campaign Practices Act or FCPA).1 Changes began in the December 2010 special session and have continued through the regular session of 2013. In all, six significant pieces of legislation have been enacted over the past three years to reshape the landscape of how campaigns are financed and operated in Alabama2 . A summary of those changes is set forth below.
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0PAC-to-PAC Ban
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0During the 2010 Special Session, the legislature generally banned political action committees (PACs) from contributing or transferring funds to any other PAC except for transfers from a PAC to a candidates' principal campaign committees [PCC].3 Some revisions to these restrictions were enacted in 2013.4
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Prohibited Contributions and Expenditures
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0The 2010 revisions made it unlawful for any PAC, PCC or Section 527 political organization5 to make a "contribution, expenditure or any other transfer of funds" to any other PAC or 527 organization. The PAC-to-PAC ban also prohibits a candidate's PCC from contributing or transferring funds to a PAC or to another candidate's PCC.6
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Candidates Contributions/Payments to Political Parties
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0While the PAC-to-PAC ban prohibits a candidate's PCC from contributing or transferring funds to a PAC, there is a limited exception that permits a PCC to contribute funds to a political party (which is, by definition, a PAC under the FCPA) for qualifying fees. In addition, under the 2010 revisions, a PCC could also expend up to $5, 000 of campaign funds during the term of office for tickets to political party dinners and functions and state and local political party dues or similar expenses incurred by independent or write-in candidates. During the 2013 Session, the legislature amended this provision to provide that the $5, 000 allowance for such political party expenditures applies over a two-year period (from one November general election to the next).7 The 2013 revision prevents any discrepancy between office holders whose terms of office are for six years versus those with four-year terms.
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Permitted Contributions and Expenditures
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Under the 2010 revisions, a PAC may make contributions to a candidate's PCC. In addition, another exception permits a PCC to transfer funds to the same person's PCC for another state office. For example, a state representative running for governor would be permitted to transfer funds from his state representative campaign committee to his gubernatorial campaign committee. It should be noted that, under federal law, a state officeholder with an existing state PCC could not transfer funds from that PCC to a federal candidate committee or PAC.
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Use of Funds Raised by a Federal Candidate Committee
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0The 2010 revisions include restrictions on a candidate's PCC receiving (or spending) funds that were raised by a federal candidate's "principal campaign committee."8 According to the secretary of state's guidance during the 2012 election cycle, a PCC may not receive (or spend) more than $1, 000 in campaign funds that were raised by a federal candidate's campaign committee.
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\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0As originally enacted in 2010, the PAC-to-PAC ban did not affect a provision in Title 10A (the business entities code] that arguably permitted certain corporate and association PACs (separate, segregated funds) to transfer funds among themselves. The 2013 revisions to the FCPA remove the language that may have permitted those types of transfers.9
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Electronic Reporting
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0The 2011 revisions require that beginning with the 2014 election cycle, disclosure reports for most candidates who file with the secretary of state must be filed electronically on the new system that the secretary of state has developed.10
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Schedule for Campaign Finance Disclosure Reports
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Under the 2011 revisions to the FCPA, PCCs and PACs are required to file many more campaign finance disclosure reports and must now do so on an annual, monthly, weekly and (in some cases) daily basis. The 2012 revisions further modified the requirements for filing these reports in the 2014 election cycle when electronic filing will be in place and eliminated some duplicative, overlapping reporting obligations. The 2013 revisions implement additional technical changes, including some regarding the duplicative reporting schedule. The secretary of state has posted a helpful listing of all these filing deadlines at http://www.sos.alabama.gov/downloads/election/2014/2014fcpafilingcalendar. pdf.
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0Monthly Reports
\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0For the 12 months prior to the date of an election, monthly reports must be filed by a PCC or PAC that makes a contribution or expenditure "with a view toward influencing an election's results." Reports covering each month are due on the second business day of the subsequent month.
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\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0For the four weeks prior to an election, weekly reports covering each week must be filed on Monday of the...
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