AO 2009-06: Federal officeholder's state campaign committee may raise nonfederal funds to retire debts
A U.S. Senator who was formerly a lieutenant governor may, under certain circumstances, solicit, receive and spend funds outside of the Federal Election Campaign Act's (the Act) amount limitations and source prohibitions for the sole purpose of retiring debts from a previous state campaign.
Background
Prior to becoming a U.S. Senator, Senator Jim Risch served as Lieutenant Governor of Idaho. He set up the Jim Risch for Lieutenant Governor Committee (the Committee) as his campaign committee for this state office. As of December 1, 2008, the Committee had outstanding debts of more than $331,000, which is the balance of a loan Senator Risch made to the committee in connection with the 2002 primary election.
The Committee wishes to raise funds in accordance with Idaho state law to retire this debt. Under Idaho law, individuals, corporations and other recognized legal entities may contribute up to $5,000 per election to state candidate committees. Also, if a political committee has debt outstanding, it may accept additional contributions to retire the debt, subject to the prescribed limits.
Analysis
Under the Act, federal candidates and officeholders cannot raise or spend funds in connection with a nonfederal election unless those funds comply with the amount limitations and source prohibitions of the Act. 2 U.S.C. §441i(e)(1)(B) and 11 CFR 300.62. However, the Act provides a limited exception for federal candidates and officeholders who also seek, or have sought, state or local office. Specifically, the restrictions on raising and spending funds for nonfederal elections do not apply to any federal candidate or officeholder who is or was also a candidate for a state or local office, so long as the solicitation, receipt or spending of funds:
- Is solely in connection with his or her state or local campaign;
- Refers only to him or her, to other candidates for that same state or local office, or both; and
- Is permitted under state law.
Because Senator Risch is a federal officeholder, and the Committee is directly established, financed, maintained and controlled by him, the Committee and its agents are subject to the Act’s restriction on raising and spending nonfederal funds. 2 U.S.C. §441i(e)(1)(B) and 11 CFR 300.62. However, soliciting, receiving and spending funds solely to retire debts outstanding from a previous state candidacy are actions that are solely in connection with that election to state office. See AO 2007-01. As long as (1) the Committee raises funds solely to retire debts outstanding from Senator Risch’s previous state candidacy, (2) the Committee's fundraising solicitations refer only to James Risch, to one or more of his former opponents in the campaign for lieutenant governor of Idaho, or both, and (3) the Committee's fundraising is permitted under Idaho law, the three criteria for the exception will be satisfied and the Committee's proposed fundraising will be permissible.
AO 2009-06: Date Issued: April 23, 2009; Length: 3 pages.