Tobacco Documents Online

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C POLITICAL ACTION COMMITTEES State Activities Division was asked to study and report on the feasibility of establishing Political Action Committees (PAC's)primarily in states where contributions of corporate funds are not permitted. Twenty-nine states and the District of Columbia permit the use of corporate funds for political contributions, and~in 1982 TI made contributions in 23 states. Every state permits political contributions to be made by Political Action Committees; but, in 20 states, PAC funds can only come from contributions of personal funds. Currently, 12 state wholesale distributor associations have established PAC's which are controlled primarily by the wholesalers within each-state. We firmly believe that some method,of participating in the legislative process through political contributions is essential in every state. However, we are highly skeptical at this time that in most states the formation of state PAC's can be an efficient, effective or, in most instances, even viable niethod of participating in the .legislative process for the following reason~s: - Fund Raising The ultimate success of any PAC lies iniits ability to generate sufficient funds for a meaningful level of contributions. A weak PAC can be viewed as a demonstration to a legislature of a weak industry and a weak lobby. The tobacco industry in all but a few states is relatively small in numbers and size of businesses, and~is diffused ininterest with a relatively low self-image. The prospect of establishing successful PAC's, therefore, is not good until some or all of these factors can be changed. The larger businesses within the industry have established corporate PAC's and in all probability have depleted a large portion of the personal contribution money that might be available. p W ~ ~ U1 ~ C11 H

C Funds Dispersal The second most important factor in establishing a useful PAC is the ability to control the dispersal of funds. Until the industry is in concert on the relative priorities in a legislative program, frequent disagreements on who should receive PAC funds would negate much of the good that could be done. We need only to look at our recent experience in Arkansas for a good example. To set up competitive or conflicting PAC's iniany state could be disastrous in terms of the somewhat tenuous spirit of cooperation that now exists in the various states. Fund Administration A further confounding factor in the establishment of any state PAC is the careful administration and reporting that are required by local laws. Experts whom we have consulted on this subject issue dire warnings about the consequences of failure to adequately research the law in each state, to constantly monitor state-by-state • regulatory changes and to reconcile f requently conf licting interpretations. - While these problems are manageable, because of them PAC's are extremely expensive to direct. Unless administrative costs are pay- able from:sources other than PAC funds, suchiadministrative costs can be expected to consume an inordinately large part of a PAC's funds.

STATES WHERE CORPORATE CONTRIBUTIONS ARE'ALLOWED Alaska Arkansas California Colorado Delaware District of Columbia Florida Georgia (except public utilities) : Hawaii Idaho Illinois (except insurance companies and horse racing operations) Indiana Kansas .(except banks, insurance companies, utilities & corporations with eminent domain) Louisiana Maine Maryland Mississippi (limited to $1,000 per committee or candidate) Missouri Nebraska Nevada , New Jersey (except banks, insurance companies, railroads gambling interests, trust companies, safety deposits, telephone companies) New Mexico (except insurance companies) New York (limited to $5,000 per year) Oregon (except banks, insurance companies, utilities, companies eminent domaini) Rhode Island South Carolina Utah Vermont Virginia Washington with,

a . C STATES WHERE CORPORATE CONTRIBUTIONS ARE PROHIBITED Alabama Arizona Connecticut Iowa Kentucky Massachusetts Michigan Minnesota Montana New Hampshire North Carolina North Dakota Ohio Oklahoma Pennsylvania: South Dakota: Tennessee Texas West Virginia Wisconsin Wyoming

_~- LTIAL- - 51ATE CONTRIBlfTIOF;S CONTRIBUTI(1NS ' CONTRIBUTIONS UNIDENTIFIED CONTRIBUTIONS OR DEDUCTION P~.IVERTISING ACTION CONTRI8U7-InPtS REGULATIONS COMI1TEES - AL Limited: $500/ Allowed Allowed Allowed Allowed None -Sponsor Permitted by candidate Identified Statute 17-, ; -Paid Adver- 22-3 tisement Identified -Publisher Identified AK Limited: Limited: Limited: Prohibitedi Limited to Credit: $100 Sponsors Allowed $1000/yr/ 51000/yr/ f10001!yr/ 15.13.070(a) $100; 15.13. 43.20.031(f) identified candidate; candidate; candidate; 070(b) (15.13,090) 15.13.070(a) 15/13/070(a) 15.13.010(a) Paid Politi- cal Adver- tisement ~. identified (15.13.090) AZ ProhiRfited Prohibited IAilowed Allowed Allowed Deduction: Tampering Permitted'by 16-919; Excep- 16-919 $100 (Ch. with poli- Statute tion: Polit'i- 191. 1979) tical signs cal Action 16-1019 16-922 Comwittee AR Limited: Limited: Limited: Prohibited: Limited: Deduction: Sponsors Allowed $1500/candi- $1500/candi- j1500/candi- Anonymous in $100 3-1116 $25 84- identified ` date/elec- date/elec- date/elec- excess $50 3- 2016.5 3-1104(1) tion 3-1110 tion 3-1110 tion 3-1110 1117 in name - Paid Poli- of another tical Adver- 3-1117 tisement identified ~ ., 3-1104(b) CA Allowed Title Allowed Title Allowed Title Anonymous over Prohibited Deduction: Sponsor Allowed 9, 82047 9. 82047 9, 82047' $100 Prohibited over $100 $100 Revenue identified :; Title 9, 84304 Title 9, and Tax Code Ch.976 Laws ;_ Actual contri- 84300 17234 of 1977 Paid bution disclosed advertisement Tiitle 9, 84302 identified Election Code - - - - 11708 (1977)

N US - R h D L L CAL STATE CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS UNIDENTIFIED CONTRIBUTIONS OR DEDUCTION ADVERTISING ACTION CONTRIBUTIONS REGULATIONS COMNITTEES t CO Allowed Allowed Allowed Allowed Limited to $100 None Rate Regula- Allowed 1-45-103(9) 1-45-103(9) 1-45-103(9) 1-45-111 tion 1-45-118 CT Prohibited in Prohibited in Limitedt $2500 Prohibited: Limited to $50 None None Permitted'by part 9-336(b) part 9-336(c) for Governor, Anonymous over I 9-348K(i) Statute 9= Exception: $1500 for Lt. $30. 9-348(b) 336(b) Political Gov. & Atty. In name of Action Gen., $1000 another Committees for Sheriff, 9-348K(g) $500 for State Senator, $250 for State Rep. 9-348R Aggre- gate: $15,000 9=348R(b)~ $5000 to State .. Central Com- mittee, $1000 r to other poli- tical committees or to munici Pal candidates 9-348S(a) Aggregate: f5000/yr• 9-3485(a) DE Limited: Limited: Limited: $1000/ Prohibited Limited'to Allow item- Sponsors Allowed $1000/single $1000/single single state- Sect. 8004(d) $50 Sect. lized federal I identified statewide statewide wide election 8004(c) Ideduction, ,8005(b) election - election _ $500/non-state- Tdtle 30 ; $500/non- $500/non- wide election ; Sect.1109(a) ' statewide statewide 8001(fi) election; election; 8001(g) 8001(1)

STATf __- 'pbPATE_ C0B3YRIBUTIONS - -- - Ti~ CONTRIBUTIONS - h._ CONTRlBhI'IONS N UNIDENTIFIED CONTRIBUTIONS CONTRIBUTIONS OR DEDUCTION T A ADUERTISiNG REGULATIONS `_ TICAL ACTION COMMITTEES ' : ~ DC Limited: $4000/ ~._ Same as Corpo- See Corporate Prohibited in - Limited to un- - - --- - Credit: maxi- - - Sponsor iden- _ . . Allowed . .. election; $2000 rate Contribu- Contrihut:ions; name of another der $50 Sect. mua f25/per- tified, 1-1140 for Mayor; $1500 tions Sect. 1- 1-1161(b) Sect. L-1161(f) 1-1161(e) son Sect. Paid adver- for Council 1161(b) 47-1567(f) tisement, Chairman; $1000 1-1140 for Council Mem- ber (large); $400 for Bd. of Educa. (large); $200 for Bd. of Educa. (ward); $200 for poli'- tical party of- fice; $1000 for initiative or referendum measure; 1-1161' (b) FL Limited: $1000 Same as Corpo- Saara as Corpo- Prohibited Limited to None Rates Sect. Allowed _- to countywide rate Contribu- rate Contribu- Sect. 106.08(3) $100 Sect. 106.16 Paid candidate or tions Sect: tions Sect. 106.09 ~Advert'ise- less; $1000 to 106.08(1) 106.08(1) ment Iden- legislative or Independent tified Sect. multicounty expenditure 106.071 candidate; $1000 limit Sponsors iden f3000 to state- tified, wide candidate . . • 106.071 Pre- or issue; election cam- $1000 to dis- , paign litera- trict, county- ture, 104.37 wide or less issue; $1000 to coamittee supporting aore than one can- didbte• $1000- $3000 to judi- cial candidates; 106:08(1)

UNION INDIVIDUAL N POLITICAL - L AL " STATE CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS UNIDENTIFIEO CONTRIBUTIONS OR DEDUCTION ADVERTISING ACTION CONTRIBUTIONS REGULATIONS COMMI!TTEES GA Prohibited in Allowed Allowed Prohibited Allowed None Sponsor Iden- Allowed part Act Ho, tified 803(1979) Sect. ' @9 and Code Sect. 22-5105 Except: Poli- tical Action Commi ttees HI Allowed Sect. Allowed Sect. Allowed Sect. Anonymous con- Receipts given __ Deduction: Sponsor Iden- -- Allowed 1L-191(17) 11-191(16) 11-191(16) tribution pro- for cash in maximum 5100/ tifled Sect. Limited to Limited to Limited to hibited'unless excess of $100 taxpayer or 11-210 f2000/elec- 52000/elec- $2000/elec- under $500 from Sect. 11-199(d) aggregate de- tion tion tion 10 or more per- duction up to sons; 11-202 In $500/yr/indi- another name vidual', but prohibited, 11- not more than I 202 $100/candidate - .Sect. 11-229 ID Allowed Sect. Allowed Sect. Allowed Sect. Prohibited Sect. .__ Allowed -- - Credit: maxi- - - 'Sponsor Iden- ' IAllowed 67-6602 67-6602 67-6602 67-6614 mumiE5/person, tified 67- Sect. 63- 6614A Media 30248 Expenditures Recorded 67- 6613 - IL Allowed Sect. Allowed Sect. Allowed Sect. Prohibited Sect. Allowed None Sponsor Iden- Allowed sr.: 9-1.6 9-1.6 9-1.6 9-25 tified 46-29- 14, 46-9-8 Advertisement Soliciting Funds 46-9-9

N i U l NUK _ A C L ICAL S11:1E CONTRIBUTIONS CONIRIBUTIONS CONTRIBUTIONS UNIDENT1fTEU CONTFIEtLIlONS OR DEDUCTION ADVERTISING ~ _ - ACTION CONTRIRLRIONS . ' REGULATIONS COt4fITTEES LA Allowed Sect. ~Allowed Allowed rohibited: Allowed None Sponsor Iden- Allowed 1488(c) nonymous 1488 tifled'Sect. (a) Dn another's 1531 Rates, aeue Sect. 1488 Sect. 1533 (a) ME Limited: s5000L' Limited: $5000/ Limited: $1000/ Prohibited: A11owed- -Allow-item- - -Sponsor-iden- A11owed--- candidate/elec- candidate/elec- eandidate/elec- fn another's ized fedpral tified 21 tion 21 Sect. tion 21 Sect. tion 21iSect. pawe 21 Sect. deductions Sect. 1394 1395(2) 1395(2) 1395(1) Aggre- 1401 36 Sect. gate $25,000 5125.1 . to all candi- dates 21 Sect. 1395(3) HO Limited: 51000/ Limited: $1000/ Limited: s1000/ Prohibited: Limited-to-- '--Aii!ow i-tem--- ~ Sponsor Iden-- Allowed candidate $2500 candidate $2500 candidate $2500 Anonymous Arti- $100 Article ized federal tified Arti- tn total Article in total Article In total!Article cle 33,26-7(c) 33 Sect. 26- deductions cle 33 Sect. 33 Sect. 26-9(b) 33 Sect. 26-9(b) 33 Sect. 26-9 in another's 9(b) Article 81 26-16 (a)(7) (b) name Article Sect. 281 Paid Adver- 33,26-16(a)(5) 33,26-16(a)(5) tisement Identified " Article 33, Sect. 26-17(a) Rates Article 33, Sect. 26- 17(e) j !tA Prohibited fn Allowed Limited: f1000/ Prohibited tt Limited to None- -- Sponsor Iden- 'Allowed ~ part 55 Sect. candidate/yr, Sect. 10 $50 55 Sect. tified, 56 8 Except: Poli- plus $1000/party 9 Sect. 39; tical Action committee/yr; Advertise- Coamittees plus t1000/non- ments Iden- party committee/ tified 56 yr; 55 Sect. 7 Sect. 39 Edi'- Kinors: limited - torial Suppor to S25/yr Prohibited 56 Sect. 38