AO 2022-06: Committee is neither a leadership PAC nor affiliated with those of its board members
A nonconnected political committee that has Members of Congress as its officers and on its board of directors is not a leadership PAC of those Members nor is it affiliated with those Members’ existing leadership PACs.
Background
Hispanic Leadership Trust (“HLT”) registered with the FEC in March 2022 as a nonconnected political committee. HLT expects its initial board of directors to include incumbent members of the Congressional Hispanic Caucus. HLT states that it would like to name Representatives Mario Diaz-Balart and Tony Gonzales as its Chair and Vice Chair, respectively. Each representative currently sponsors a separate leadership PAC.
HLT submitted draft bylaws which vest its powers in a board of directors. HLT does not expect federal officeholders or candidates to be involved in its day-to-day operations; it expects that consultants will perform those duties “at the direction of the HLT’s officers and directors.” HLT’s draft bylaws present three alternative provisions (Alternative A, Alternative B and Alternative C) governing fundraising for, and contributions by, HLT.
Analysis
HLT asked a series of questions about whether its structure, activities, and leadership would result in HLT becoming a leadership PAC of HLT’s officers (the Chair and Vice Chair) or directors or affiliated with the leadership PACs of those officers or directors. HLT also asked whether any of three alternative draft bylaw provisions governing its officers’ fundraising activities would allow it to remain unaffiliated with those officers’ and directors’ leadership PACs.
The Commission concluded that “Representatives Gonzales and Diaz-Balart would each ‘control’ HLT, within the meaning of the leadership PAC definition under draft bylaw provisions Alternative A and Alternative B.”
However, under Alternative C, HLT would not be a leadership PAC of the proposed Chair or Vice Chair, or Members of Congress on its board of directors, if no officer or director who is a Member of Congress represents more than 33% of the seats required for a quorum of HLT’s board of directors. HLT would also not be affiliated with existing leadership PACs of its officers and directors, if HLT adopts Alternative C and no officer or director who is a Member of Congress or current candidate for federal office represents more than 33% of the seats required for a quorum of HLT’s board of directors.
Date issued: July 29, 2022; Length: 18 pages
Citations
11 C.F.R. § 100.5
Political committee
11 C.F.R. § 110.3
Contribution limitations for affiliated committees and political party committees; transfers
11 C.F.R. § 300.2
Definitions
Resources