Last week the Federal Election Commission (FEC) took incremental steps toward defining the rules for those considering becoming a candidate and how candidates interact with Super PACs. FEC AO 2015-09 (Senate Majority PAC and House Majority PAC).  As expected, the agency could not reach consensus on most of the legal issues raised, but it did provide some marginally useful guidance, much of it a reaffirmation of its existing regulations and prior decisional law.

Here are the most salient things the agency said.

  • Individuals who are “testing the waters” to decide if they should run for federal office must still comply with the FEC’s rules requiring the use of federally permissible funds. This seems to preclude “testing the waters” Super PACs or 501(c)(4) organizations.
  • You become a “candidate” when you decide that you are going to run. It is this personal decision, and not the formal filing of papers with the FEC, that makes you a “candidate.”
  • There is no limit to how long you can think about running. You can “test the waters” for months or years, so long as you remain truly undecided about whether to run.
  • “I meant what I said and I said what I meant.” D. Seuss, Horton Hatches the Egg. If you publicly tell people you are running, the FEC will assume you mean it.
  • Telling the press the date you will announce your candidacy is good evidence you have decided to run.
  • Individuals who are “agents” of a candidate’s campaign for fundraising purposes can also raise money for multicandidate Super PACs, so long as they don’t do so on behalf of the candidate. The FEC could not agree on whether the same rule would apply to “agents” who fundraise for single candidate Super PACs.
  • Potentially the most significant part of the opinion was a sanctioning of “small room” fundraising events for Super PACs. There is no minimum number of attendees necessary for an event to qualify under the FEC’s rules for when a federal candidate or officeholder can attend an event — including a Super PAC fundraising event — where non-federal funds are raised.

The Commission could not find consensus on the more weighty issues presented, including the role of a potential candidate in setting up a Super PAC that would support her or his campaign, a potential candidate sharing strategic information with a Super PAC, whether there is a dollar threshold for how much a potential candidate can raise while still remaining undecided about whether to run, and whether a potential candidate’s coordination with a Super PAC taints that Super PAC’s spending after the person announces his or her candidacy. On these important questions, the agency could provide no guidance on how the law should apply.

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Photo of Robert Lenhard Robert Lenhard

Robert Lenhard has helped guide decision makers in corporations, trade associations, and advocacy groups on complying with the laws regulating political activity for over 20 years. As a senior member of the firm’s Election and Political Law Practice Group, he provides compliance advice…

Robert Lenhard has helped guide decision makers in corporations, trade associations, and advocacy groups on complying with the laws regulating political activity for over 20 years. As a senior member of the firm’s Election and Political Law Practice Group, he provides compliance advice relating to federal and state campaign finance, lobbying, pay-to-play, and government ethics laws. As an advocate, counselor, and regulator, Mr. Lenhard brings a depth of experience on matters that involve legal as well as political risk.

Bob led Covington’s representation of the Biden for President campaign, the Super PAC supporting President Obama’s re-election, as well as several prominent professional sports leagues, pharmaceutical manufacturers, technology companies, advocacy groups, and trade associations.

Prior to joining the firm in 2008, Mr. Lenhard served as Chairman of the Federal Election Commission (FEC) in 2007 and Vice Chairman of the agency in 2006, during which time the agency handled over 10 major rulemakings, had among its most productive years in enforcement and audit, and adopted several reforms to the enforcement process. Mr. Lenhard also led the Presidential Transition Team that reviewed the FEC for the incoming Obama administration in 2008-2009.

Mr. Lenhard is frequently quoted in the press, has lectured at major law schools, and Before his service to the FEC, Mr. Lenhard provided legal advice to labor organizations active in the political process at the federal, state, and local levels. Mr. Lenhard also was involved in litigation in the Florida trial and appellate courts over the counting of absentee ballots in Seminole County, Florida in 2000.

Robert Lenhard is a member of the firm’s Election and Political Law Practice Group and advises corporations, trade associations, not-for-profit organizations, and high-net-worth individuals on compliance with federal and state campaign finance, lobbying, and government ethics laws.

Mr. Lenhard routinely assists clients in establishing and operating federal and state PACs, compliance programs associated with campaign finance and pay-to-play laws; advises advocacy groups and their donors; conducts compliance trainings and audits of federal and state lobbying and political programs; and counsels clients on compliance with congressional gift and travel rules. According to Chambers, sources report: “He is strategic and always sees the big picture. He is a great person who provides excellent non-legal counsel as well.”