Current through Register 1518, March 29, 2024
(1)
Independent Expenditure PACs. A political action
committee that receives contributions to make independent expenditures is an
"independent expenditure PAC". Independent expenditure PACs may receive
contributions from individuals without limit, and from corporations and other
entities that are otherwise prohibited from contributing to PACs pursuant to
M.G.L. c. 55, § 8. Any entity that raises or solicits funds for the
purpose of making a contribution to an independent expenditure PAC is an
independent expenditure PAC subject to all requirements applicable to
independent expenditure PACs.
(a) The
required content and timing of reports filed by independent expenditure PACs is
defined in 970 CMR 2.22(2). Except as indicated in 970 CMR 2.22, independent
expenditure PACs are subject to all reporting requirements that apply to other
PACs.
(b) An independent
expenditure PAC makes all of its expenditures without cooperating or consulting
with any political committee as defined in
970 CMR
2.21. If an independent expenditure PAC makes
coordinated expenditures with a candidate or candidate's committee, a PAC that
is not another independent expenditure PAC, or a political party committee, the
independent expenditure PAC immediately becomes a traditional PAC subject to
the limits on contributions that may be received or made by other
PACs.
(c) An independent
expenditure PAC must include the words "independent expenditure political
action committee" in its name.
(d)
For purposes of 970 CMR 2.22, a "traditional PAC" is a PAC that is not an IE
PAC.
(2)
Content and Timing of Reports Filed by Independent Expenditure
PACs.
(a) "
Seven
Business Day Reports ".
1.
Initial 18A IE PAC "Seven Business Day" Reports. When
goods or services obtained by the first independent expenditure exceed $250 in
the aggregate, and those goods or services are utilized to support or oppose a
candidate or candidates, an independent expenditure PAC shall file an IE PAC
Report within seven business days after the goods or services are utilized ("IE
PAC Seven Business Day Report"). The IE PAC Seven Business Day Report shall
disclose the date of the expenditure, the amount paid, the vendor, a
description of the expenditure, e.g., "TV ad" or "mailing," the name of the
candidate(s) supported or opposed, and the office sought by the candidate(s)
including the legislative district of the office sought, if applicable. The
report shall also itemize the names and address of persons or entities
contributing more than $50 to the IE PAC, whether in money or in-kind, and
shall also disclose liabilities incurred by the IE PAC during the reporting
period. The date parameter for the report starts on the day the committee was
organized (or January 1st if the IE PAC was
organized in a preceding year) and is complete through the date the goods or
services are utilized.
2.
Subsequent "Seven Business Day" Reports. After the
Initial IE PAC seven business day report is filed, additional seven business
day reports shall be filed each time goods or services obtained through
independent expenditure(s) aggregating more than $250 to support or oppose a
candidate or candidates are utilized, unless such independent expenditures are
disclosed in a 24-hour report in accordance with 970 CMR 2.22(2)(b). The
reporting period for each IE report shall commence on the date following the
last date included in the previous seven business day report and be complete
through the date of the independent expenditure(s)
disclosed.
(b)
"24-Hour" Reports. If goods or services obtained by
independent expenditure(s) exceeding $250 in the aggregate to support or oppose
a candidate or candidates are utilized after the tenth day, but more than 24
hours before an election, a report disclosing the independent expenditure(s)
must be filed within 24 hours of when the goods or services are utilized. The
report shall disclose the information required by 970 CMR 2.22(2)(a).
Additional 24-hour reports shall be filed when additional expenditures are made
within the ten-day period before an election, in accordance with M.G.L. c. 55,
§ 18A(b).
(c)
Year-end Reports. Independent expenditure PACs shall,
in addition to reports required by 970 CMR 2.22(a) and (b), file year-end
reports on or before the 20th day of January each
year the committee remains in existence. The reporting period for the year-end
report shall be cumulative for the calendar year, commencing on January
1st and ending on December 31st
of each calendar year, and shall include all campaign finance
information previously disclosed in the reports filed by the committee during
the calendar year, and shall, to the extent such information has not been
included in seven business day or 24-hour reports that have been filed, itemize
all contributions received, expenditures made, including expenditures not made
to support or oppose candidates, and liabilities incurred, of more than
$50 during the calendar year. An independent expenditure PAC
that makes expenditures requiring the filing of a subvendor report under M.G.L.
c. 55, § 18D shall electronically file a subvendor report as part of its
year-end report.
(d)
Dissolution Reports. Independent expenditure PACs
shall file a final report on dissolution. The dissolution report shall also
include a statement detailing the disposition of any residual funds, which may
be disposed of only as provided in the residual funds clause of M.G.L. c. 55,
§ 18.
(e)
Electronic Filing. The reports required to be filed by
970 CMR 2.22, if filed with the Director, shall be filed
electronically.
(f)
Contributions from One Independent Expenditure PAC to Another IE
PAC. If an IE PAC makes a contribution to another IE PAC, the
first IE PAC files its IE reports based on the date it makes the contribution
to the other IE PAC. The recipient IE PAC, however, files reports based on the
date the goods and services it purchases are utilized, even if the purchase is
made with funds received from the contributing IE PAC.
(3)
Content and Timing of Reports
Filed by Political Committees That Are Not IE PACs, Including Traditional
PACs. Political committees other than ballot question committees
may make independent expenditures if making the independent expenditures is
consistent with the principle for which the committee was organized. If such
independent expenditures are made and the total amount of independent
expenditures to support or oppose any candidate or candidates exceeds $250 in
the aggregate during any calendar year, the committee must, in addition to
disclosing the expenditures in the committee's periodic campaign finance
reports filed with the Director (or local election official, if organized to
support or oppose candidates who file with the local election official), also
file Reports of Independent Expenditures according to the following schedule:
(a) "
Seven Business Day
Reports ".
1.
18A
"Seven Business Day" IE Reports. When goods or services obtained
by a committee's first independent expenditure exceed $250 in the aggregate,
and those goods or services are utilized to support or oppose a candidate or
candidates, the committee shall file an independent expenditure report within
seven business days after the goods or services are utilized ("Seven Business
Day IE Report"). The Seven Business Day IE Report shall disclose all financial
activity required by M.G.L. c. 55, § 18A, including the date of the
expenditure, the amount paid, the vendor, and a description of the expenditure,
e.g., "TV ad" or "mailing." The report shall also disclose the
name of the candidate(s) supported or opposed and the office sought by the
candidate(s) including the legislative district of the office sought, if
applicable, that the expenditure is an independent expenditure, and whether the
expenditure promoted or opposed the named candidate(s).
2.
Subsequent "Seven Business
Day" Reports. After the initial seven business day report is
filed, additional seven business day reports shall be filed each time goods or
services obtained through independent expenditure(s) exceeding $250 to support
or oppose a candidate or candidates are utilized, unless such independent
expenditures are disclosed in a 24-hour report in accordance with 970 CMR
2.22(3)(b). The reporting period for each IE report shall commence on the date
following the last date included in the previous seven business day report and
be complete through the date of the expenditure(s) disclosed.
(b)
"24-Hour"
Reports. If goods or services obtained by independent
expenditure(s) exceeding $250 in the aggregate to support or oppose a candidate
or candidates are utilized within ten days before an election, but more than 24
hours before an election, a report disclosing the independent expenditure(s)
must be filed within 24 hours of when the goods or services are utilized. The
report shall disclose the information required by 970 CMR 2.22(3)(a).
Additional 24-hour reports shall be filed when additional expenditures
exceeding $250 are made in the aggregate within the ten-day period before an
election, in accordance with M.G.L. c. 55, § 18A(b).
(4)
Disclosure of Independent
Expenditures Made by Political Committees That File with the Director to
Disclose Expenditures Made to Support or Oppose Local Candidates.
Political committees other than ballot question committees, which file reports
with the Director, may, in addition to making independent expenditures to
support or oppose candidates who file with the Director, make independent
expenditures to promote the election or defeat of one or more candidates who
file with a city or town clerk.
(a) If such
independent expenditures are made and the aggregate amount of the independent
expenditures to support or oppose a candidate or candidates during any calendar
year exceeds $250, the committee must, in addition to disclosing the
expenditures in the committee's periodic campaign finance report that is filed
with the Director, also file a report of independent expenditures or a copy of
the report that was filed with OCPF, with the city or town clerk in the city or
town in which the candidate is on the ballot.
(b) The independent expenditure reports filed
with the city or town clerk or the copy of the report filed with OCPF must be
filed in accordance with the schedule in 970 CMR 2.22(3).
(5)
Disclosure of Independent
Expenditures Made by Political Committees That File with a City or Town Clerk
to Disclose Expenditures Made to Support or Oppose Candidates That File with
OCPF. A political committee, other than a ballot question
committee, which file reports with a city or town clerk, may, in addition to
making expenditures to support or oppose candidates who file with the clerk,
make independent expenditures to promote the election or defeat of one or more
candidates who file with the Director.
(a) If
such independent expenditures are made and the aggregate amount of the
independent expenditures to support or oppose a candidate or candidates during
any calendar year exceeds $250, the committee must, in addition to disclosing
the expenditures in the committee's periodic campaign finance report that is
filed with the city or town clerk, also file a report of independent
expenditures with the Director.
(b)
The independent expenditure reports filed with the Director must be filed
electronically, in accordance with M.G.L. c. 55, § 18C, in accordance with
the schedule in 970 CMR 2.22(3).
(6)
Restrictions on Fundraising
by Traditional PACs that Make Independent Expenditures.
Traditional political action committees that make independent expenditures
remain subject to the limits applicable to traditional political action
committees making contributions, and also to the limits that apply to
traditional PACs when raising funds. If a traditional PAC contributes to a
candidate's committee, that contribution alone does not result in a presumption
of coordination under
970 CMR
2.21.
(7)
Disclosure of Independent
Expenditures Relating to Multiple Candidates. Reports of
independent expenditures and IE PAC reports reflecting expenditures that
support or oppose multiple candidates must identify each candidate referenced
in a communication, and the proportionate value of the expenditure attributable
to each candidate referenced in the communication, if the
value of the communication in the aggregate exceeds $250.
(8)
Application of M.G.L. c. 55,
§ 5A. The restrictions of M.G.L. c. 55, § 5A apply to IE
PACs. No candidate or individual holding elective public office shall, in
accordance with M.G.L. c. 55, § 5A and 970 CMR 1.24: Website and
Social Media Use by Public Employees, establish, finance, maintain,
control, or serve as a principal officer of an IE PAC or a traditional
PAC.
(9)
Disclaimers. Persons or entities making independent
expenditures, in addition to disclosing such activity in reports filed with the
Director or local election official as required by
970
CMR 2.20, must also include disclaimers on
independent expenditure communications, as required by M.G.L. c. 55, § 18G
and
970
CMR 2.20.
(10)
In-kind Contributions by
Traditional PACs. An expenditure by a traditional PAC to support
or oppose a candidate is either an independent expenditure or an in-kind
contribution. If the PAC has coordinated the activity with the candidate, as
defined in
970 CMR
2.21, then the activity by the PAC would be
considered an in-kind contribution rather than an independent expenditure. If
an in-kind contribution is made by the PAC to a candidate, the PAC must advise
the candidate's committee of the value of the in-kind contribution, to ensure
that the in-kind contribution is accurately disclosed by the recipient. If a
traditional PAC publishes a communication to support or oppose multiple
candidates and the communication is coordinated with the candidates, each
candidate must be informed of the value that may be apportioned to the
candidate, and the PAC's reports must reflect the itemized value of the
contribution as received by each committee.
(11)
Expenditures Relating to
Ballot Questions.
(a)
Expenditures by Traditional PACs. Traditional PACs may
make expenditures to support or oppose ballot questions subject to the
following restrictions:
1. The expenditures
must be made to enhance the principle for which the PAC was
organized;
2. The expenditures must
be disclosed in a timely manner in the PAC's campaign finance reports;
and
3. If the expenditures are made
in coordination with a ballot question committee, the ballot question committee
must disclose the receipt of an in-kind contribution.
(b)
Expenditures by Independent
Expenditure PACs. Independent expenditure PACs may make
expenditures to support or oppose ballot questions, or may contribute to ballot
question committees, subject to the following restrictions:
1. The expenditure must be disclosed in the
IE PAC's year-end campaign finance report; and
2. If made as an in-kind contribution to a
ballot question committee, the recipient ballot question committee must
disclose its receipt in the campaign finance report filed for the period in
which the contribution was received.
