PACs – Disclosure and Other Requirements

(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.