Federal Election Commission Main Page
August 22, 1984
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
ADVISORY OPINION 1984-31
Mr. James B. Cardle
Assistant Vice President and Economist
First Bank & Trust Company
Box 200
Booker, Texas 79005
Dear Mr. Cardle:
This responds to your letter of April 9, 1984, as
supplemented by your letters of June 25 and August 10, 1984,
requesting an advisory opinion concerning application of the
Federal Election Campaign Act of 1971, as amended, ("the Act"),
to a proposed transfer to a separate segregated fund established
by the First Bank & Trust Company.
You state that in late March 1984 you filed a Statement of
Organization with the Commission for a separate segregated fund
("the Federal PAC") that proposes to make contributions in
Federal elections. You also state that approximately two years
ago your bank established a political action committee for state
election purposes ("the State PAC"), and you propose to continue
the operation of this committee for State election activity.
Your request indicates that the State PAC solicited donations
during the bank's Board of Directors meeting in February 1984, as
well as during bank officer meetings held in early March 1984.
You state that in all cases, donations to the State PAC were made
on a voluntary basis. Furthermore, you indicate that
contributions to the State PAC were made by (1) bank directors
(who in all cases are also stockholders) and (2) officers of the
bank (some of whom are also stockholders). You note that bank
officers include individuals in both the executive and
administrative areas of the bank. Your letter of August 10
states that the State PAC proposes to transfer $2,500 to $3,000
to the Federal PAC. This amount consists of 48 contributions
including 18 contributions of $150 each from Board members.
You ask whether such a transfer may be made from the bank's
State PAC to its Federal PAC. The Commission concludes that the
proposed transfer may be made if the conditions noted below are
satisfied.
The Commission notes initially that if the State PAC makes
the proposed transfer of funds to the Federal PAC, the State PAC
would become a political committee under 2 U.S.C. SS 431(4) and
11 CFR 100.5 and would be subject to the registration and
reporting requirements for political committees. See Advisory
Opinions 1982-46 and 1983-3, copies enclosed. On the other hand
in this case, because your corporation has already established a
Federal PAC, if the State PAC acts as a collecting agent under
Commission regulations at 11 CFR 102.6(b) and (c), such a
transfer may be made through the state account without the State
Committee becoming a political committee with a reporting
obligation to the Commission. In order to make such a transfer,
the State PAC would be required to obtain written authorizations
from the contributors involved stating their intent to make a
contribution to the separate segregated fund under the
regulations at SS 102.6(b) and (c) and SS 114.5. Any contributors
who do not so state must either be given a refund, or their
contributions must remain with the State PAC. Each contribution
included in the amount transferred must be reported by the
Federal PAC as a contribution from the original contributor to
the extent required by Commission regulations. 11 CFR
102.6(c)(7), 104 .12.
The Federal PAC is subject to all requirements of the Act
and Commission regulations 1/ including the contribution
solicitation provisions set forth at 11 CFR 102.5 and 114.5. All
contributions it receives are subject to the prohibitions and
limits of the Act. In this case the Commission assumes that the
1/ If the State PAC is used exclusively for state and local
political activity, it would not be required to register and file
reports with the Commission. It would, however, be subject to
the prohibition on contributions by national banks and Federally
chartered corporations, 2 U.S.C. SS 441b, and the prohibition on
contributions from foreign nationals, 2 U.S.C. SS 441e.
contributions are from individuals 2/ and comply with the
limitations of 2 U.S.C. SS 441a(a)(1).3/ However, inasmuch
as the initial solicitation was for the State PAC, the
contributors were not informed that their contributions should be
designated for the Federal PAC, that they would be used in
Federal elections, and that they were subject to the limitations
of the Act. 11 CFR 102.5(a)(2). Accordingly, in order for the
State PAC to be viewed as the collecting agent, the donors must
state their intention, in writing, to contribute to the Federal
PAC. Future contribution solicitations for the Federal PAC must
meet all of the requirements of 11 CFR 114.5 and 102.5.
This response constitutes an advisory opinion concerning
application of the Act, or regulations prescribed by the
Commission, to the specific transaction or activity set forth in
your request. See 2 U.S.C. SS 437f.
2/ The Commission notes that on the basis of the information you
have provided, all of the persons solicited by the State PAC were
apparently either stockholders or executive or administrative
personnel of the bank and were therefore permissible solicitees.
See 2 U.S.C. SS 441b(b)(4)(A), SS 441b(b)(7).
3/ The $25,000 annual limit is also applicable to the
contributions in question, and their contributions are counted
against their 1984 limit. 2 U.S.C. SS 441a(a)(3), 11 CFR 110.5.