Identifying independent expenditures
An independent expenditure is any expenditure made to influence the outcome of a covered election that is
made without the cooperation or consultation with any campaign and
not made in concert with or at the request or suggestion of any campaign.
Essentially, an independent expenditure is the opposite of a coordinated expenditure.
Example 1: Mayoral candidate Othello gives Shakespeare PAC a template for a door hanger. Shakespeare PAC spends $5,000 to print door hangers based on the template and spends $10,000 to distribute them a month before the Primary. Both the $5,000 printing expenditure and the $10,000 spent on distribution are coordinated expenditures and are therefore in-kind contributions to Othello subject to the contribution limits.
Example 2: Youse Can Fish (an independent expenditure committee supporting fishing piers) spends $50,000 on radio ads in support of Council candidate Nemo. The campaign does not have any communication with the committee prior to the expenditure. The $50,000 expenditure is an independent expenditure and is not subject to the contribution limits.
Reporting independent expenditures: Individuals & non-PAC entities
Reporting of an independent expenditure depends on
when it was made,
how much was spent, and
whether it was for electioneering communications.
State law requires that you report each independent expenditure of $100 or more. This requirement applies even if the expenditure is for electioneering communications.
If the independent expenditure was for $500 or more and was made during the 24 hour reporting period, you will also need to file a 24 hour independent expenditure report.
If the expenditure is for electioneering communications and is for $5,000 or more you will also need to file a full campaign finance report for that cycle.
Reporting independent expenditures: PACs
PAC refers to political committees other than the candidate committee of a current candidate for City elective office. PACs generally must file for any reporting period in which they spend any amount of money to influence a City election (including contributions to City candidates).
24 hour reporting
From the close of the pre-election report (Cycle 2 or 5) through election day, anyone other than a candidate must disclose any independent expenditures made of $500 or more. The report is due within 24 hours of making or incurring debt for the expenditure. The report should not include contributions received.
A PAC that files a 24 hour report disclosing expenditure must also disclose that independent expenditure in their post-election (Cycle 3 or 6) report.
Electioneering communications
An electioneering communication is any publicly distributed* broadcast, cable, radio, print, Internet, or satellite communication that
promotes, attacks, supports, or opposes a candidate, or
within 50 days of a covered election names, refers to, includes, or depicts a candidate in that election.
*A publicly distributed communication does not include a communication made solely to the members of a union, association, or corporation.
When do I have to report expenditures for electioneering communications?
A PAC must file a report for Cycles 1, 2, 3, 4, 5, 6, or 7 if it spends any amount on electioneering communications in that reporting cycle. A PAC must file for Cycles 101, 201, 202, 401, 501, or 502 if it spends $5,000 or more on electioneering communications. For each filing, a PAC must disclose all transactions during that reporting period.
An individual or non-PAC entity must file a report for any reporting cycle other than Cycle 7 in which they spend $5,000 or more on electioneering communications that are published within 50 days of a covered election.
Special disclosure rules for organizations
If an organization (other than a PAC) spends $5,000 or more on electioneering communications within 50 days of a covered election, it must file a full Campaign Finance Report with the Board of Ethics that discloses:
all expenditures for electioneering communications or any other campaign related spending;
any contributions as defined by the State Election Code; and
all donations of $5,000 or more received during the reporting period regardless of whether they are designated for a political purpose unless the organization uses a segregated account for political spending. If the organization uses a segregated account for amounts used for political purposes, it need only disclose contributions deposited into that account.
Example: Nonprofit Sanctuary for Seals receives two checks. One is a $2,000 contribution to support the Sanctuary's electioneering communications in support of a candidate for Controller. The other is a general $3,000 donation to the Sanctuary. Both checks are deposited into the Sanctuary's general account. The Sanctuary must file a Campaign Finance Report to disclose the $2,000 contribution. The Sanctuary need not disclose the $3,000 donation because it falls below the $5,000 threshold for non-political donations.
Special disclosure rules for individuals
An individual required to file a report regarding electioneering communications is only required to disclose contributions that they received or solicited in order to fund the expenditures disclosed in the report.