FEC Approves Two Advisory Opinions, Discusses Audit Memorandum

WASHINGTON –The Federal Election Commission today approved two advisory opinions and discussed another advisory opinion request. The Commission also discussed an Audit Division Recommendation Memorandum.

Advisory Opinion 2012-04 (Justice Party of Mississippi). The Commission concluded that the Justice Party of Mississippi (JPMS) will qualify as a state committee of a political party when a JPMS nominee for federal office whose name appears on the election ballot qualifies as a "candidate" under the Federal Election Campaign Act of 1971, as amended, (the Act) and Commission regulations. A state party organization not affiliated with a national political party qualifies as a state committee of a political party if three criteria are met: (1) the state party organization itself must qualify as a "political party"; (2) the state party organization itself must possess an official party structure; and (3) the state party organization must be responsible for the day-to-day operation of the party at the state level.

Advisory Opinion 2012-03 (ActRight). The Commission concluded that ActRight, a nonconnected political committee, may solicit unlimited contributions from individuals, political committees, corporations, and labor organizations that are earmarked for nonconnected political committees that make only independent expenditures or nonconnected committees that accept the funds into a separate non-contribution account for the purpose of making independent expenditures, and ActRight may forward the earmarked contributions to those committees. ActRight will be required to forward contributions and contribution information to the treasurers of the recipient committees within the time frames as defined in the Act and Commission regulations and to comply with the Commission's reporting requirements.

Advisory Opinion Request 2012-01 (Stop This Insanity, Inc. Employee Leadership Fund). The Commission discussed and voted on two draft advisory opinions but did not reach consensus on either draft based on a request from Stop This Insanity, Inc. (STI), regarding the activities of STI’s separate segregated fund, the Employee Leadership Fund (ELF). ELF maintains an account consisting of funds subject to the limitations, prohibitions, and reporting requirements of the Act, which are solicited from STI's restricted class. ELF asked whether it may open a separate non-contribution account into which STI and ELF would solicit unlimited contributions from STI's restricted class as well as other STI employees and members of the general public, including individuals, political committees, corporations, and labor organizations. Funds in ELF's non-contribution account would be used to finance independent expenditures.

Audit Division Recommendation Memorandum on Chris Dodd for President, Inc. The Commission discussed the Audit Division’s recommendation memorandum on revisions to the Draft Final Audit Report on Chris Dodd for President, Inc., covering campaign finance activity between January 24, 2007 and September 30, 2008, and directed the Audit Division to prepare a Proposed Final Audit Report reflecting the Commission's discussion. The Audit Division Recommendation Memorandum proposed revisions to the findings of: (1) net outstanding campaign obligations; (2) the receipt of prohibited or excessive contributions; and (3) the misstatement of financial activity.

The Federal Election Commission (FEC) is an independent regulatory agency that administers and enforces federal campaign finance laws. The FEC has jurisdiction over the financing of campaigns for the U.S. House of Representatives, the U.S. Senate, the Presidency and the Vice Presidency. Established in 1975, the FEC is composed of six Commissioners who are nominated by the President and confirmed by the U.S. Senate.

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