PAC 101

1. PAC 101 Stephen L. Lacey, Esq. Olsson, Frank and Weeda, P.C. (312)346-4842 slacey@ofwlaw.com

2. Overview • Growing Role of PACs • Purpose of SNA PAC • Raising Money for SNA PAC • Solicitations • State Affiliate Issues • Corporate Member Issues

3. Growing Role of PACs • Demand for political contributions from all sources continues to increase • 2002 cycle: campaigns raised $969.5 million • 2004 cycle: campaigns raised $1.206 billion • The 2004 cycle represents an increase of nearly $9.9 million per month • 2006 Election Cycle – numbers to date • $470.3 million raised in 2005 • A 20% increase over 2003 (first year of the last election cycle)

4. Growing Role of PACs • 2005 Receipts For Top 5 Senate Campaigns • Clinton (D-NY) $21.4 million • $1.78 million per month • $58,630 per day • $2,443 per hour • Santorum (R-PA) $10.2 million • Nelson (D-FL) $7.5 million • Allen (R-VA) $6.8 million • Cantwell (D-WA) $6.88 million

5. Growing Role of PACs

6. Growing Role of PACs

7. Purpose of SNA PAC • PAC contributions a necessary compliment lobbying activities • Allows SNA to thank supporters • Does not “buy” support • PAC Committee Makes Contribution Decisions • Also develops long term goals and fundraising strategy

8. Raising Money For The PAC • Solicitation Rules • Defining a “Solicitation” • What is a solicitation • What is not a solicitation • State Affiliate Issues • Corporate Member Issues

9. Solicitation Rules • SNA’s PAC is limited in who it can solicit for donations • At any time it may solicit: • Non-corporate members • With prior approval, executive and managerial employees of corporate members • Executive and managerial employees of the association • The families of these groups

10. Solicitation Rules • Twice a year may solicit association’s non-executive/managerial employees • Cannot solicit a broad range of individuals and groups (other PACs, outside consultants, etc.) • Can accept unsolicited donations provided they are not from a prohibited source (e.g. foreign national, corporate funds, dead person, etc.)

11. What Is a Solicitation • FEC takes a broad view – essentially any communication that encourages support: • Specific request for money • Publicly commending people that have contributed • Reminding people that the PAC can accept unsolicited contributions

12. What Is Not A Solicitation • Communications that do not solicit, encourage, or facilitate contributions: • Announcing the existence of the PAC • Explaining the legal requirements that apply, such as who may contribute; • Providing factual information about a PAC’s activities, such as how much money raised, number and identity of recipients, etc. • FEC rule of thumb: anything available on its website is ok

13. State Affiliate Issues • If you have or are considering establishing a PAC be careful and consider consulting an attorney when appropriate • State and federal election laws are often very different • If you have a state PAC it complicates, but does not prohibit, federal contributions

14. State Affiliate Issues • If you want to collect money for the SNA PAC • Make sure you know FEC requirements and limitations before soliciting funds • Need to keep appropriate records of who contributes • Restrictions on depositing funds • Timeframes for forwarding funds • Record retention requirements

15. Corporate Member Issues • SNA PAC needs prior approval to solicit contributions • Separate authorization required for each year • Authorization forms have been sent and are available from the SNA PAC