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      FEC Record: Advisory opinions
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      AO 2014-18: Two corporate PACs are not affiliated

FEC Record: Advisory opinionsAO 2014-18: Two corporate PACs are not affiliatedDecember 22, 2014 The  separate segregated funds (SSFs) for Rayonier Inc. (Rayonier) and Rayonier  Advanced Materials Inc. (RYAM) are not affiliated because the companies’  overall relationship reflects independence post-spin-off. **Background**                      RYAM, a company  specializing in the manufacturing and sale of “performance fibers,” was formed  via a spin-off from Rayonier in June 2014.   Prior to that spin-off, the performance fibers business had been a  wholly owned business unit of Rayonier, which also operated (and continues to  operate) other, distinct business units.   RYAM stock began being publicly traded on June 30, 2014. RYAM and Rayonier asked whether their SSFs are considered affiliated under the Federal  Election Campaign Act (the Act) and Commission regulations. **Legal analysis and  conclusions**                      Political  committees, including SSFs, are “affiliated” if they are established, financed,  maintained, or controlled by the same corporation, labor organization, person,  or group of persons. See 52 U.S.C. § 30116(a)(5) (formerly 2 U.S.C.  §441a(a)(5)); 11 CFR 100.5(g)(2), 110.3(a)(1)(ii)). For instance, SSFs  established by a corporation and its subsidiaries are *per se* affiliated.  The relationship between Rayonier and RYAM does not meet any of those criteria. Absent *per se* affiliation, the Commission considers the overall relationship between the  sponsoring organizations and between the committees themselves to determine  whether SSFs are affiliated. FEC regulations provide a non-exhaustive list of  10 affiliation factors for consideration in the overall context of the  relationship. These include governance, hiring authority, common officers or employees  and ongoing financial or material support. See 11 CFR 100.5(g)(4)(i)-(ii),  110.3(a)(3)(i)-(ii). Neither Rayonier  nor RYAM owns stock in the other, controls the day-to-day operations of the  other, provides financing to the other, or has overlapping directors or  officers with the other. While the two companies entered into a number of  agreements as part of their separation process, RYAM has been financially and  administratively independent of Rayonier since the spin-off. Based on these  facts, the Commission concluded the companies’ SSFs are not affiliated. *Date Issued: 12/22/2014;  Length 10 pages.* **Resources:** Advisory Opinion 2014-18 [PDF]            Commission discussion of AO 2014-18
 Author
          Alex  Knott


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This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public. The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.


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