Exempt party activities

Public communications authorized by a candidate, candidate committee, or a party committee that qualify as exempt party activities are required to carry a “paid for by” disclaimer. However, the disclaimer does not need to state whether the communication is authorized by a candidate, or any authorized committee or agent of any candidate.

In an exempt activity communication such as slate cards, sample ballots, or get-out-the-vote materials, the disclaimer notice must identify the committee that paid for the message, but need not state whether the communication is authorized by a candidate.

EXAMPLE

"Paid for by the XYZ State Party Committee."

A state or local party committee may prepare and distribute a slate card, sample ballot, palm card or other printed list naming candidates for any public office. The payments are not considered contributions or expenditures on behalf of any federal candidate listed, as long as the following conditions are met:

• The list names at least three candidates running for election to any public office in the state in which the committee is organized.
• The list is not distributed through broadcast stations, newspapers, magazines and similar types of public political advertising (for example billboards). Direct mail, however, is an acceptable method of distributing a slate card or sample ballot.
• The content is limited to the identification of each candidate (pictures may be used), the office or position currently held, the office sought and party affiliation. Additional descriptions, designs, images and photographs must not provide supplemental biographical information, descriptions of candidates’ positions on the issues or statements of party philosophy. Certain voting information, however, may be given, such as time, place and instructions on voting a straight party ticket.
• Costs allocable to federal candidates are paid with permissible funds.

A state or local party committee may prepare and distribute campaign materials such as pins, bumper stickers, handbills, brochures, posters and yard signs. The payments are not considered contributions or expenditures if the following conditions are met:

• The activity is conducted on behalf of the party’s nominees or presumptive nominees.
• The materials are distributed by volunteers.
• The materials are not distributed through public political advertising such as television, radio, newspapers, magazines, billboards or direct mail (i.e., mailings by a commercial vendor or from commercial lists).
• The party committee does not use materials purchased by the national party committee or money transferred from the national committee for the purchase of such materials.
• The party committee does not use funds designated for a particular federal candidate.
• A payment from a nonfederal campaign to help pay for the materials does not exceed its allocated share of the expenses.
• Costs allocable to federal candidates are paid with permissible funds.

State and local party committees may support the party’s presidential ticket through exempt party activities.

A state or local party committee may conduct a voter registration or get-out-the-vote drive on behalf of the party’s presidential and vice presidential nominees without the payments being considered contributions or expenditures as long as the following conditions are met:

• The activity does not involve the use of public political advertising such as television, radio, newspapers, magazines, billboards or direct mail (mailings by a commercial vendor or from commercial lists).
• Phone banks are operated by volunteers (although paid professionals may design the system, develop calling instructions and train supervisors).
• The party committee does not use funds transferred by the national party committee for such voter drive activities.
• Costs allocable to federal candidates are paid with permissible funds.
• Any reference to a U.S. House or Senate candidate must be incidental to the overall activity; otherwise, the cost allocable to the House or Senate candidate is an in-kind contribution or coordinated party expenditure on behalf of that candidate.
• The party committee does not use funds designated for a particular federal candidate.

State, district and local party committees may allocate from their federal and nonfederal accounts expenses for exempt party activities that are conducted in conjunction with nonfederal activity and are not Federal Election Activity (FEA) from their federal and nonfederal accounts. If the exempt activity does not qualify as FEA and mentions only federal candidates, then it cannot be allocated with federal and nonfederal funds and should be disclosed as an operating expenditure on Schedule B, supporting Line 21(b).

Note: Any of these activities that qualify as Federal Election Activity must be paid for under unique rules.

Allocation Ratio (H1)

A state or local party committee uses Schedule H1 to state its fixed percentage allocation ratio at the beginning of each calendar year.

Calculation:

Under this allocation ratio, the minimum percentage of federal funds depends upon which federal offices appear on the ballot during the relevant even-numbered election year (and in the preceding year):

• If both a presidential candidate and a Senate candidate appear on the ballot, then at least 36 percent of the expenses must be allocated to the federal account;
• If a presidential candidate, but not a Senate candidate, appears on the ballot, then at least 28 percent of the expenses must be allocated to the federal account;
• If a Senate candidate, but not a presidential candidate, appears on the ballot, then at least 21 percent of the expenses must be allocated to the federal account; and
• If neither a presidential candidate nor a Senate candidate appears on the ballot, then at least 15 percent of the expenses must be allocated to the federal account.

Nonfederal transfers (H3)

Each reporting period, the committee discloses transfers from the nonfederal account to the federal (or allocation) account to pay the allocated nonfederal portion of administrative, voter drive and exempt activity costs. As previously noted, transfers must be made within a 70-day window (no more than 10 days before or 60 days after an allocated payment is made).

The total amount of transfers itemized on Schedule H3 is entered on Line 18(a) of the Detailed Summary Page.

Payments (H4)

Each reporting period, the committee uses Schedule H4 to itemize all payments for administrative, voter drive and exempt activity costs, showing the allocated federal and nonfederal shares.

The federal and nonfederal payment totals that appear on Schedule H4 are entered on Lines 21a(i) and (ii) of the Form 3X Detailed Summary Page.

Note: while all independent expenditures and certain coordinated party expenditures qualify as FEA and must be paid with 100 percent federal funds, they must be reported on Schedule E and Schedule F, respectively.

Public communications that do not qualify as exempt party activity or Federal Election Activity, refer to a clearly identified federal candidate, and expressly advocate the election or defeat of the federal candidate are be disclosed as:

• an in-kind contribution to the candidate;
• an independent expenditure; or
• a coordinated party expenditure.