Source: https://www.tn.gov/tref/topic/tref-pac-faqs
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PAC FAQs - TN.Gov
PAC Filing Deadlines
PAC Delinquent Filers
The purpose of the Campaign Finance Guidelines for PACs is to help advise multi candidate committees how they may legally take an active part in the election process. This guide explains how to participate in State and Local elections in compliance with Tennessee law. It is important to note that this guide focuses on political activity in State and Local elections—not Federal elections.
If you would like to view a printable version of the guide, along with the rules and statues please click the link, PAC Guide. You may click any of the questions below and be taken to the section that will answer the question.
Political Action Committees (PACs). Reports are required of any multi-candidate political campaign committee, popularly known as a PAC, that participates in any state or local election. “Multi-Candidate committee” is defined as a committee that makes expenditures to support or oppose two or more candidates for public office or two or more measures in a referenda election. T.C.A. § 2-10-102(9)
"Political campaign committee" Is defined as “any corporation or any other organization making expenditures to support or oppose a measure; or any committee, club, corporation, association, or other group of persons which receives contributions or makes expenditures to support or oppose any candidate for public office or measure during a calendar year in an aggregate amount exceeding one thousand dollars ($1,000); T.C.A. § 2-10-102(12)
2. Where must committees file reports?
Political Action Committees (PACs). Multi-Candidate political campaign committees supporting candidates for state public office must file all required reports with the Registry. Multi-Candidate committees that support candidates for local public office must file with the local election commission in each county where the committees plan to support candidates. Multi-Candidate committees supporting candidates for both state public office and local public office must file with both the Registry and the appropriate county election commission. T.C.A. § 2-10-105(a) and T.C.A. § 2-10-105(b)
3. What must a committee do to begin a campaign operation?
Political Campaign Treasurers. Before any monies can be received or spent, each political campaign committee must certify the name and address of its political treasurer to the Registry of Election Finance for a state election and to the county election commission for a local election. This is accomplished by completing and filing an appointment of political treasurer statement. T.C.A. § 2-10-105(4)(e)(1) and T.C.A. § 2-10-105(4)(e)(2)
Campaign Bank Account. A political campaign committee must open and maintain a separate bank account into which all campaign contributions are to be deposited. Additionally, all expenditures from campaign funds must be expended from this bank account. Rule 0530-1-1-.01(1), Rule 0530-1-1-.02(1) and Rule 0530-1-1-.02(4)
4. Are there fees for registering as a PAC?
Starting in 2003 an annual fee was instituted for PACs. This fee is to be paid on an annual basis by all PACs, except those affiliated with a statewide political party, registered with the Registry of Election Finance. The annual fee is $100. T.C.A. § 2-10-121 and Rule 0530-1-1-.07
A bill will be sent to each registered PAC at the beginning of each calendar year. Any PAC registering with our office during the year will be required to pay the fee at that time. Rule 0530-1-1-.07
5. How long is an appointment of treasurer statement effective?
Multi-Candidate Committee Treasurers. A political treasurer for a multi-candidate political campaign committee serves as long as the committee remains active or until a replacement is made.
Change of Treasurers. Political campaign committees must notify the Registry or the appropriate county election commission of any changes in the office of political treasurer. An appointment of political treasurer statement must be completed and filed for the individual who replaces the previous treasurer.
6. What information must be reported in a campaign financial disclosure statement?
Contributions. A reportable contribution is defined by the law as being “any advance, conveyance, deposit, distribution, transfer of funds, loan, loan guaranty, personal funds of a candidate, payment, gift, pledge or subscription, of money or like thing of value, and any contract, agreement, promise or other obligation. . . .made for the purpose of influencing a measure or nomination for election or the election of any person for public office.” T.C.A. § 2-10-102(4)
If the actual cost of an in-kind contribution is not known at the time when it is reportable, an estimate of the cost shall be reported during the period that the contribution is made or performed, and the disclosure report shall indicate that the amount reported is estimated. If the actual cost of the in-kind contribution as indicated on the bill for the goods or services is different than the amount reported, the candidate or committee shall adjust the amount reported on a later disclosure statement covering the period in which payment for the in-kind contribution is made. T.C.A. § 2-10-107(d)
Loans. A loan must be disclosed by the PAC during the reporting period that the loan is made. A loan must continue to be disclosed on future campaign financial disclosure statements until the loan is paid back in full or a statement has been filed with the appropriate campaign financial disclosure statement by the PAC stating that the loan will not be repaid and is to be considered a contribution to the campaign. Rule 0530-1-1-.06(1) and Rule 0530-1-1-.06(2)
Obligations. Goods and services received on credit which are not paid for during the reporting period received must be disclosed as an obligation by the PAC or during the reporting period that the obligation is incurred. This obligation must continue to be disclosed by the PAC on campaign financial disclosure statements until fully paid. Payments on the obligation shall be disclosed as expenditures by the PAC on the appropriate campaign financial disclosure statement(s). Rule 0530-1-1-.10(1)
7. What details are required in campaign financial disclosure statements?
Short Form. PACs are exempt from filing a detailed disclosure statement if neither contributions received nor expenditures made during a reporting period for which a statement is submitted exceed one thousand dollars ($1,000). The PAC must report the balance of contributions on hand, outstanding loans and outstanding obligations. T.C.A. § 2-10-107(a)(1)
Detailed Disclosure. A PAC which has over one thousand dollars ($1,000) in contributions and/or expenditures must complete a detailed disclosure and list contributions, expenditures, loans and obligations as described below. T.C.A. § 2-10-107(2)(A)(i)
PACs are required to list the full name, complete address, amount, date of receipt of contribution, and the election the contribution is designated for, for each person or organization who contributes a total of more than one hundred dollars ($100) during a reporting period. In addition, if this contribution is from an individual you must also list the occupation and employer of the contributor. A candidate that makes a "best effort" to obtain the address, occupation and employer for a contribution is considered to be in compliance with the requirement. "Best Effort" would include requesting the information on an invitation and stating that the information is required by state law for contributions over $100 or requesting the information in a letter sent by first class postage and stating that the information is required by state law for contributions over $100. T.C.A. § 2-10-107(a)(2)(A)(i)
For example, a person who contributes fifty dollars ($50) one day, fifty dollars ($50) the following day and one dollar ($1) the next day would have to be specifically listed on the campaign financial disclosure statement as having contributed one hundred one dollars ($101), if all those monies were contributed during one reporting period. Likewise, a person who buys five (5) tickets to a campaign fundraiser at twenty-five dollars ($25) each would have to be specifically listed on the campaign financial disclosure statement as having contributed one hundred twenty-five dollars ($125).
Expenditures. Expenditures totaling one hundred dollars ($100) or less to a single payee during the reporting period are not required to be itemized. These expenditures may be broken down and totaled by general categories (such as gas, food, etc.). For example, purchases of twenty-five dollars ($25) of gas at five different service stations would be shown as “Gas -- $125.” T.C.A. § 2-10-107(a)(2)(B)
The law requires candidates to list the full name, complete address, amount and purpose for each person or organization to whom a total of more than one hundred dollars ($100) was paid during a reporting period. T.C.A. § 2-10-107(a)(2)(B)
8. When must PACs file reports?
Multi-Candidate political campaign committees (PACs) are required to file quarterly campaign financial disclosure statements during state election years (even numbered years). In addition, during election years PACs are required to file pre-primary and pre-general reports. During non-election years (odd numbered years) PACs are required to file on a semi-annual basis. These reports are due to be filed as follows for 2016 and 2017: T.C.A. § 2-10-105(c)(1) and T.C.A. § 2-10-105(c)(3)
July 1, 2018 - July 23, 2018
July 24, 2018 - September 30, 2018
October 28, 2018 - January 15, 2019
A PAC must continue to file campaign financial disclosure reports until its campaign account has been closed with the Registry.
9. Does the Registry have electronic filing for PACs?
Yes, PACs can file their campaign financial disclosure statements electronically. The electronic filing system is an Internet based software maintained by the Registry. T.C.A. § 2-10-211
If you are interested in filing your PAC's campaign financial disclosure reports electronically you will need to submit a PAC ID and Password Registration form to the Registry. The form can also be faxed or mailed to you, just contact the Registry at (615) 741-7959. If you would like to see a demo of the system, go https://apps.tn.gov/tncamp/ and click on the "online demo" link.
While the electronic filing system is easy to use, if you feel you need training or you just have questions, please contact us at (615) 741-7959.
10. Will a PAC receive notice when a disclosure report is due?
The Registry of Election Finance is required to notify a PAC fourteen (14) days before any report is due. The county election commission is required to give seven (7) days notice for any report due in the county. T.C.A. § 2-10-103(a)(4) and T.C.A. § 2-10-206(a)(9)
11. What activities are not campaign contributions
a)Volunteer Work. Services, including expenses provided without compensation by a candidate, or any individuals who volunteer a portion or all of their time on behalf of a candidate are not contributions. T.C.A. § 2-10-102(4)(A)
b)Publicity. Not included within the meaning of contribution is any news story, commentary or editorial distributed through the facilities of any broadcasting station, newspaper, magazine or other periodical publication, unless such facilities are owned wholly or in part or controlled by a political party, political committee or candidate. T.C.A. § 2-10-102(4)(B)
c)Voter Registration Efforts. Any nonpartisan activity designed to encourage individuals to vote or to register to vote is not considered a campaign contribution. T.C.A. § 2-10-102(4)(C)
d)Internal Communications. Not included within the meaning of contribution is any written, oral or electronically transmitted communication by any membership organization or corporation to its members or stockholders, if such membership organization or corporation is not organized primarily for the purpose of influencing the nomination for election or election of any person to public office. However, if the organization or corporation simply finances the dissemination, distribution or republication in whole or in part of campaign materials prepared by the candidate or candidate’s committee, then such financing shall be considered a campaign contribution. T.C.A. § 2-10-102(4)(D)
e)Other Candidate-Related Activities. Not included within the meaning of contribution is the use of real or personal property and the cost of invitations, food and beverages not exceeding one hundred dollars ($100), voluntarily provided on an individual’s residential premises for candidate-related activities. T.C.A. § 2-10-102(4)(E)
12.Are there any dollar limitations on the amount of campaign contributions that a PAC may give to a candidate?
Campaign contributions made to candidates by affiliated PACs shall be considered made by a single PAC. T.C.A. § 2-10-303(4)
"Affiliated PACs" are defined as follows:
a) “Affiliated political campaign committees” means political campaign committees established, financed, maintained, or controlled by any corporation, labor organization, or any other person, including any parent, subsidiary, branch, division, department, or local unit of such corporation, labor organization, or any other person, or by any group of such persons. T.C.A. § 2-10-102(1)
b) All committees established, financed, maintained or controlled by a single corporation and/or its subsidiaries shall be affiliated political campaign committees. T.C.A. § 2-10-102(A)
c) All committees established, financed, maintained or controlled by a single national or international union and/or all its state and the local central bodies shall be affiliated political campaign committees, but such committees shall not be affiliated with the political campaign committees established, financed, maintained or controlled by any union that is a member of the organization. T.C.A. § 2-10-102(B) and T.C.A. § 2-10-102(C)
d) All committees established, financed, maintained or controlled by a membership organization, other than political party committees, including trade or professional associations and/or related state and local entities of that organization or group shall be affiliated political campaign committees. T.C.A. § 2-10-102(D)
e) All committees established, financed, maintained or controlled by the same person or group of persons shall be affiliated political campaign committees. T.C.A. § 2-10-102(E)
f) Owners, officers, employees, members or other individuals associated with a corporation, labor organization, membership organization or any other person or group of persons that has established, financed, maintained or controlled a political campaign committee shall not be considered affiliated with such political campaign committees. T.C.A. § 2-10-102(F)
13. What is included as a contribution for purposes of the contribution limitations?
Campaign contributions made by cash or a written instrument, such as a check, would be subject to the dollar limitations of the law, as well as in-kind contributions. A person who endorses or guarantees a candidate's campaign loan shall be considered to have made a contribution to the candidate's campaign in the amount of the endorsement or guaranty. Where the portion of the loan for which the endorser or guarantor is liable is not specified in the written agreement, each endorser or guarantor shall be considered to have made a contribution in that proportion of the unpaid balance that each endorser or guarantor bears to the total number of endorsers or guarantors. T.C.A. § 2-10-102(4)
14.What are the restrictions on how and when PACs can make campaign contributions?
Cash Contributions. PACs may not make cash contributions to candidates. T.C.A. § 2-10-311(c)
15. Are corporate campaign contributions allowed in Tennessee
16. Are there any dollar limitations on the amount of contributions an individual may make to a PAC?
No, there are no limits on the amount of contributions that may be made to a PAC.
17.When must a report be filed if the due date falls on a weekend or holiday?
18.How does a PAC close out a campaign account?
A campaign account may be closed out at any time when the political campaign committee has filed a campaign financial disclosure statement that shows no unexpended balance, continuing debts or obligations or expenditure deficit. In addition, if a PAC is operating in several states, they may close in Tennessee by notifying the Registry with their last report that the PAC is now closed in Tennessee.
19. What recordkeeping procedures are required for political campaign committees?
A PAC is prohibited from commingling personal monies or any other funds with funds maintained in a campaign bank account. Rule 0530-1-1-.02(1)
Within ten (10) business days of the receipt of a campaign contribution, a political campaign committee is required to deposit the contribution into the PACs campaign bank account. For contributions received from a single source during a reporting period which total more than $100, a committee is required to maintain a listing of the names and addresses of those contributors and the amount and date of the contributions made by those contributors. Rule 0530-1-1-.02(2)
Additionally, political campaign committees must maintain copies of all checks, bank statements and vendor receipts for a period of two years after the election to which they refer. When feasible, a committee should make copies of campaign contribution checks. Rule 0530-1-1-.02(5) and Rule 0530-1-1-.02(6)
Campaign bank account reconciliations must be performed by a PAC to ensure that the bank account balances with the financial disclosure reports filed by the committee. Rule 0530-1-1-.02(8)
20. How long must campaign records be maintained?
All financial records used by a PAC to prepare a campaign financial disclosure statement must be retained for at least two (2) years after the date of election to which the records refer. T.C.A. § 2-10-105(f)
If investigative procedures or an administrative hearing have been initiated against a political campaign committee, financial records relating to a campaign account must be maintained by the committee until the investigation or administrative hearing has been completed. Rule 0530-1-1-.02(7)
21. How does an individual inspect or obtain a copy of a campaign financial disclosure statement?
2004 elections forward, Campaign financial disclosure reports are available online. Go to https://apps.tn.gov/tncamp/ and click on the "Search Database" tab to find PAC and Candidate reports.
22. What happens if a PAC does not file the required reports on time or violates other provisions of the law?
The Registry of Election Finance has the authority to impose civil penalties against a PAC for failing to file a statement on time and ignoring subsequent warnings about the required report. The Registry also has the authority to impose civil penalties for other violations. T.C.A. § 2-10-207(6) and T.C.A. § 2-10-207(7)
A committee that files the required report within that five-day grace period will not be subject to civil penalties.
The law requires the Registry staff to send an assessment letter to the committee before any class two (2) civil penalties are imposed by the Registry, advising the committee of the factual basis of the violation, the maximum penalty and the date that a response must be filed. T.C.A. § 2-10-110(a)(2)
A campaign contribution made or accepted in excess of the limitations of this Act shall not be a violation if the committee refunds or returns the contribution to the person making the contribution within sixty (60) days of its receipt. T.C.A. § 2-10-307(b)
23. What happens if a PAC fails to pay an assessed civil penalty after an assessment order becomes final?
For any civil penalty that is assessed against a PAC by the Registry, the treasurer of the PAC is personally liable for payment of that penalty. T.C.A. § 2-10-110(f)
24. Is there any criminal liability of a treasurer or other responsible party of a PAC when required campaign disclosure reports are not filed?
It is unlawful for a responsible party of a PAC who has a prior civil penalty assessment record to intentionally fail to file a required quarterly campaign disclosure report. "Responsible party" includes the PAC treasurer or if no treasurer has been appointed, any person who organizes or directs the fundraising activities of a PAC. T.C.A. § 2-10-118
The responsible party is considered to have a prior assessment record if during the person's service as a responsible party to one or more PACs the committee(s) violates the campaign finance law on two (2) or more occasions and those violations result in a civil penalty assessment against the PAC(s). T.C.A. § 2-10-118
25. How does the Registry of Election Finance begin an investigation?
26. What guidelines will the Registry of Election Finance provide to PACs regarding the Campaign Financial Disclosure Law?