1 complaint and appx a

8/6/2019 1 Complaint and Appx A

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IN THE DISTRICT COURT OF THE UNITED STATES

FOR THE NORTHERN DISTRICT OF ALABAMA,

NORTHEASTERN DIVISION

THE ALABAMA DEMOCRATICCONFERENCE, an Alabama political

action committee, DR. EDDIE GREENE,

JAMES GRIFFIN, BOB HARRISON,

EMMITT E. JIMMAR, and JIMMIE

PAYNE,

Plaintiffs,

v.

LUTHER STRANGE in his official

capacity as the Attorney General of

Alabama; ROBERT L. BROUSSARD, in

his official capacity as District Attorney

for the 23rd Judicial Circuit; BRYCE U.

GRAHAM, JR., in his official capacity as

District Attorney for the 31st Judicial

Circuit,

Defendants.

CIVIL ACTION NO.

Complaint

1. This action arises under Section 2 of the Voting Rights Act

of 1965, as amended, 42 U.S.C. 1973; and the First and Fourteenth

Amendments to the United States Constitution. This court has

jurisdiction to hear this action under 28 U.S.C. 1331 and 1343 and 42

U.S.C. 1973l.

FI2011 Jul-06 A

U.S. DISTRICT

N.D. OF AL

Case 5:11-cv-02449-JEO Document 1 Filed 07/06/11 Page 1 of 19


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2. This action seeks relief against Alabama Act 2010-765, the

Congressman Mike Rogers/Jeff McLaughlin Campaign Finance

Transparency Act (Act 2010-765).

Parties

3. Plaintiff Alabama Democratic Conference (ADC) is

registered with the Alabama Secretary of State as a political action

committee.

4. Plaintiff Bob Harrison is an African-American citizen of the

United States and a registered voter in Madison County. He has been a

candidate for county commission, elected to that office twice, and

expects to run for office again. ADC has endorsed him and made GOTV

efforts on his behalf. For approximately 20 years he has been a member

of the ADC.

5. Plaintiff Emmitt E. Jimmar is an African-American citizen

of the United States and a registered voter in Colbert County. He has

been a candidate for county commission, elected to that office several

times, and expects to run for office again. ADC has endorsed him and

made GOTV efforts on his behalf. For approximately 46 years he has

been a member of the ADC and has held office as Chairman and

Coordinator of the 5th Congressional Distinct and Chairman of the

Colbert County ADC.

6. Plaintiff James Griffin is an African-American citizen of the

United States and a registered voter in Madison County. For

approximately 10 years he has been a member of the ADC.



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7. Plaintiff Jimmie Payne is an African-American citizen of the

United States and a registered voter in Madison County. For

approximately 15 years he has been a member of the ADC and has held

office as vice-chair in the Madison County branch of ADC.

8. Plaintiff Dr. Eddie Greene is an African-American citizen of

the United States and a registered voter in Madison County. He has

been a member of the ADC for approximately 15 years.

9. Defendant Luther Strange is the Attorney General of

Alabama and is being sued in his official capacity.

10. Defendant Robert L. Broussard is the District Attorney for

the 23rd Judicial Circuit (containing Madison County) and is being sued

in his official capacity.

11. Defendant Bryce U. Graham, Jr., is the District Attorney

for the 31st Judicial Circuit (containing Colbert County) and is being

sued in his official capacity.

Facts: the ADC

12. The Alabama Democratic Conference (the Black Political

Caucus of Alabama) was founded in 1960 when Arthur Shores, Dr. C. G.

Gomillion, and other black citizens associated for the advancement of

their beliefs and ideas, specifically in an effort to communicate with

black voters and influence them to support the Democratic presidential

ticket of John F. Kennedy and Lyndon B. Johnson. From its beginnings

ADC has expanded its communications activity and has grown to

become the states largest and most effective grassroots political



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organization. Today ADCs advocacy extends into most of the counties

in the state, through its county units.

13. Since 1960 ADCs basis mission has been to communicate

with, educate, organize, and unify black voters in order to give greater

strength to their petitions to state and local government for the redress

of grievances, to have the black community respected by candidates and

elected officials, and to work toward associating with white individuals

of goodwill and progressive organizations in biracial coalitions. In 1970

the ADC began formally to screen and endorse candidates for public

office. At that time white candidates were reluctant to associate

publicly with black political organizations for fear that their opponents

would use the association in overt racial appeals to white voters. In

order to gain respect and equal treatment for black citizens and to

associate more freely with white candidates, voters and organizations in

biracial coalitions, the ADC adopted a rule that year requiringDemocratic candidates to come before an ADC screening committee in

person before they could be endorsed. The ADC endorsements were

publicized by ADC in a number of ways, including through the now

well-known ADC yellow sample ballot distributed to voters at polling

places and other locations across the state.

14. In addition to its endorsement of candidates and related

speech, ADC has been active in conducting regular voter registration

drives and get-out-the-vote (GOTV) drives; maintaining and

communicating with knowledgeable political units in counties and



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congressional districts; associating with white candidates and

predominantly white organizations in election campaigns and other

advocacy; getting more blacks and white candidates of goodwill elected

to public office; monitoring the voting, employment, and appointments

records of elected officials and communicating that information to

voters; securing legislation for the benefit of black and white citizens of

Alabama; and sponsoring litigation to create more opportunities for

black citizens to vote and otherwise to participate in the political

process and to achieve fair and equitable representation at all levels of

government.

15. ADC has made expenditures, as that term is defined by the

Alabamas Fair Campaign Practices Act (FCPA,) during past elections

in GOTV and other communications efforts in support of candidates it

has endorsed. ADC intends to continue to run such GOTV programs

and to continue its voter education, biracial-coalition building, andother activities.

16. Because, like all other organizations with significant

political involvement, ADC routinely spends more than $1,000 in each

primary or general election, it has been required to register as a PAC

with the Alabama Secretary of State.

17. The average family income of black citizens of Alabama is

substantially less than that of white citizens. Census data demonstrate

that households occupied by black citizens are more likely than whites

to lack access to vehicles, that black individuals and households have



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lower income than white household, that black persons are more likely

than white persons to be hourly wage-earners, and that accordingly

black voters have a greater need than white persons for organizational

support in getting rides to polls. In order to fund its GOTV drives, to

print and distribute sample ballots, and to build biracial coalitions, the

ADC has associated itself with other political groups which provide

funding to the ADC.

18. Alabama has a long history of discrimination in voting at

polling places, and this history has lingering effects in terms of the need

for poll watchers, voter assistance and other voter protection support on

election day.

19. Black voters in Alabama have a higher need for assistance

in voting and a greater dependence on organizational sample ballots as

a result of past discrimination in education.

20. ADC has received contributions (as that term is defined bythe FCPA) during past elections from the Alabama Democratic Party,

the Alabama Education Association (AEA), A-VOTE (a political action

committee affiliated with the AEA), other political action committees,

and candidates. ADC will continue to solicit and expects to continue to

receive such contributions to support its election communication

activities, if they are legal.

Facts: Act 2010-765

21. Alabamas Fair Campaign Practices Act has been in effect

since 1988 and has been amended several times since then.



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22. The Legislature adopted Act 2010-765 in a Special Session

in December 2010, and the bill was signed by the Governor on 20

December 2010. A copy of the Act, showing the changes from the

previous law, is attached as Exhibit A. Act 2010-765 became effective

upon its approval by the Governor.

23. Act 2010-765 amends the FCPA, Ala. Code 17-5-15 to add

the following new provisions:1

(b) [1] It shall be unlawful for any political action

committee, 527 organization, or private foundation,

including a principal campaign committee, to make acontribution, expenditure, or any other transfer of

funds to any other political action committee, 527

organization, or private foundation.

[2] It shall be unlawful for any principal campaign

committee to make a contribution, expenditure, or any

other transfer of funds to any other principal campaign

committee, except where the contribution, expenditure,

or any other transfer of funds is made from a principalcampaign committee to another principal campaign

committee on behalf of the same person.

[3] Notwithstanding the foregoing, a political action

committee that is not a principal campaign committee

may make contributions, expenditures, or other

transfers of funds to a principal campaign committee

and a separate segregated fund established by a

corporation under federal law if the fund does notreceive any contributions from within this state other

than contributions from its employees and directors is

not restricted by this subsection in the amount it may

1 For ease in reading and reference, the three sentences of the

subsection are presented separately and numbered.



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transfer to a political action committee established

under the provisions of Section 10A-21-1.01 by the

same or an affiliated corporation.

24. Political action committee and principal campaign

committee are defined by Ala. Code 17-5-2 as follows:

(10) POLITICAL ACTION COMMITTEE. Any political

action committee, club, association, political party, or

other group of one or more persons which receives or

anticipates receiving contributions or makes or

anticipates making expenditures to or on behalf of any

elected official, proposition, candidate, principal

campaign committee or other political action

committee. For the purposes of this chapter, an

individual who makes a personal political contribution

shall not be considered a political action committee.

(11) PRINCIPAL CAMPAIGN COMMITTEE. The

principal campaign committee designated by a

candidate under Section 17-5-4. A political action

committee established primarily to benefit an

individual candidate or an individual elected official

shall be considered a principal campaign committee forpurposes of this chapter.

25. Neither Act 2010-765 nor the FCPA defines the term 527

organization. It is not clear if the Act adopts by implication the

following definition found in the Internal Revenue Code, 26 U.S.C.

527(e):

(1) Political organization

The term political organization means a party,

committee, association, fund, or other organization

(whether or not incorporated) organized and operated

primarily for the purpose of directly or indirectly



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accepting contributions or making expenditures, or

both, for an exempt function.

(2) Exempt function

The term exempt function means the function ofinfluencing or attempting to influence the selection,

nomination, election, or appointment of any individual

to any Federal, State, or local public office or office in a

political organization, or the election of Presidential or

Vice-Presidential electors, whether or not such

individual or electors are selected, nominated, elected,

or appointed. Such term includes the making of

expenditures relating to an office described in the

preceding sentence which, if incurred by the individual,would be allowable as a deduction under section 162(a).

26. Act 2010-765 prohibits transfers to or from PACs, 527

organizations, private foundations, principal campaign committees of

candidates, and political parties, with the exception of the following:

a. Any political entity may contribute to a principal

campaign committee of a state candidate (except for a limitation of$1,000 on transfers from a federal principal campaign committee to a

principal campaign committee of the same individual running for a

state office) [contained in Section 3 of the Act].

b. [A] principal campaign committee, during a term of

office commencing on the day after the election for the seat or office the

candidate seeks and ending on the day of the next general election for

that seat or office, may pay qualifying fees to a political party and may

expend up to a cumulative total of five thousand dollars ($5,000) of

campaign contributions, and any proceeds from investing the



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contributions, for the following purposes: (1) Tickets for political party

dinners or functions[;] (2) State or local political party dues or similar

expenses incurred by independent or write-in candidates [added to

17-5-7(d)].

c. [A] separate segregated fund established by a

corporation under federal law if the fund does not receive any

contributions from within this state other than contributions from its

employees and directors is not restricted by this subsection in the

amount it may transfer to a political action committee established by

the same or an affiliated corporation [added to 17-5-15(b)]. This

provision is inconsistent with federal law which allows a corporation to

solicit contributions to its separate segregated fund from its

stockholders and their families and its executive or administrative

personnel and their families. 11 C.F.R. 114.5(g)(1). Federal law also

allows [a] labor organization, or a separate segregated fund establishedby a labor organization [to solicit] contributions to such a fund from

its members and executive or administrative personnel, and their

families. 11 C.F.R. 114.5(g)(2).

27. Violation of Ala. Code 17-5-15 is a Class A misdemeanor

punishable to twelve months imprisonment and a fine of two thousand

dollars. Ala. Code 13A-5-7 and -12 and 17-17-35.

28. Violation of the new provision added by Section 3 is a Class

C felony punishable by imprisonment of not less than a year and a day

and not more than ten years. Ala. Code 13A-5-6(a)(3).



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Count One: Violation of the First Amendment

29. All paragraphs above are realleged as if set out fully

herein.

30. Act No. 2020-765 interferes with the rights and benefits of

association of the ADC, its members, and those who wish to assist in its

mission.

31. Under Act 2010-765, it is illegal for the ADC to receive

contributions from political action committees such as the Alabama

Democratic Party, the AEA, and A-VOTE. Ala. Code 17-5-15(b),

sentence [1].

32. Under Act 2010-765 it is illegal for the ADC to associate

with like-minded PACs, including the Democratic Party and others, and

expend or receive funds so that the associated groups can more

effectively petition the government for the redress of their grievances,and associate to persuade and encourage voters to cast ballots for

candidates of their choice.

33. Under Act 2010-765, it is illegal for the ADC to receive

contributions from principal campaign committee of candidates wishing

to associate with the ADC and to communicate with and encourage

participation by black voters. Ala. Code 17-5-15(b), sentence [2].

34. The Attorney General of Alabama and the respective

district attorneys may prosecute violations of Title 17, Chapter 5. Ala.

Code 17-17-35(d), (e).



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35. The U.S. Court of Appeals for the D.C. Circuit recently

summarized the Supreme Court case law on campaign contribution

limits in SpeechNow.org v. Federal Election Comn, 599 F.3d 686, 692

(D.C. Cir. 2010) (citations omitted):

When the government attempts to regulate the

financing of political campaigns and express advocacy

through contribution limits, therefore, it must have a

countervailing interest that outweighs the limits

burden on the exercise of First Amendment rights.

Thus a contribution limit involving significant

interference with associational rights must be closelydrawn to serve a sufficiently important interest. The

Supreme Court has recognized only one interest

sufficiently important to outweigh the First

Amendment interests implicated by contributions for

political speech: preventing corruption or the

appearance of corruption.

36. The only type of corruption that may be used as a basis of

a restriction on campaign contributions or expenditures is quid pro quo

corruption involving contributions to candidates for office.

37. The only interest stated by legislators in favor of Act 2010-

765 was that expressed in its title transparency, that is, the right of

the public to know who was making contributions to candidates.

38. The source of campaign contributions by PACs in the State

of Alabama already is disclosed to the public. The Alabama Secretary ofState maintains on her official web site a searchable database of all

contributions to and by PACs that meet the legal threshold for

reporting. As stated by then-candidate Bradley Byrne to the

Montgomery Advertiser when that paper asked him at an October 2009



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news conference whether there was a way to be certain he was not

receiving any money indirectly from the Alabama Education Association

(AEA):

Yeah, yall know how to read the financial reports. You

can follow a PAC contribution, even if they wash it

through this PAC-to-PAC thing. If you see A-vote

money or one of the other PACs that (AEA) have given

to this PAC, giving to that PAC and it ends up in my

campaign or somebody elses campaign, its going to tell

you.

And were going to be watching that very carefully.Were going to make it very clear to anybody thats

trying to send us money ... if youre going to make a

PAC contribution, dont put it in a PAC that has any

AEA money in it because we dont want it.

Montgomery Advertiser, March 16, 2010.

39. In the 2011 Regular Session, the Legislature adopted two

Acts which provide actual transparency in campaign finance by means

other than the restrictions on the ADC in Act 201-765:

a. Act No. 2011-687 (SB136) requires monthly campaign

finance reports beginning 12 months before a primary, special, or

general election, weekly reports during the month before an election,

and daily reports during the last eight days before an election. This Act

becomes effective on 1 September 2011, but has not yet been submitted

for preclearance pursuant to Section 5 of the Voting Rights Act, 42

U.S.C. 1973c.

b. Act No. 2011-697 (SB284) provides, with certain

exceptions, that electioneering communications and political



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advertisements paid for by an organization or entity shall disclose the

names of the source of the funding of the organization or entity. This

Act becomes effective on 1 July 2011, but has not yet been submitted for

Section 5 preclearance.

40. Act 2010-765 was not adopted to prevent quid pro quo

corruption or the appearance of such corruption in organizations such

as the ADC.

41. Act 2010-765 is not closely drawn to achieve the legitimate

interest in preventing quid pro quo corruption or the appearance of

such corruption.

a. The Act prohibits transfers of funds that will be used

for independent expenditures, for GOTV activities, for voter protection

activities, and for other communication expenditures, as well as

transfers of funds which will ultimately be given to candidates

principal campaign committees.b. Since ADCs receipt of contributions from candidates,

the Alabama Democratic Party, or other PACs does not involve a

contribution to a candidate, there is no danger ofquid pro quo

corruption. Since the ADCs expenditures for GOTV drives, voter

protection, and other communication expenditures do not involve a

contribution to a candidate, there is no danger ofquid pro quo

corruption.

c. The ADC has established procedures to isolate

donations from individuals and businesses and to ensure that no funds



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from other PACs, 527 organizations, or private foundations will be

contributed to candidates. To the extent that the prevention ofquid pro

quo corruption or the appearance of such corruption is a valid basis of

Act 2010-765, this isolation of donations will prevent both corruption

and the appearance of corruption.

42. The State of Alabama has no legitimate interest in

preventing or interfering with the efforts of the ADC to encourage black

citizens to register and vote by providing rides to the polls, protection

against harassment, or communication of election-related information

to voters.

Prayer for Relief (Count One)

43. WHEREFORE, the plaintiffs respectfully pray that this

Court will grant it the following relief:

a. Enjoin the defendants, their successors, and those

acting in concert with them or at their direction from enforcing the

amendment to Ala. Code 17-5-15(b) made by Act 2010-765 against any

organization making transfers or contributions to the plaintiff ADC or

against ADC for receiving such transfers or contributions;

b. Enjoin the defendants, their successors, and those


amendment to Ala. Code 17-5-15(b) made by Act 2010-765 against

ADC for making contributions to candidates if the funds for such

contributions were received directly from individuals or businesses.



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c. Grant such other and further equitable relief as may be

necessary.

d. Award plaintiffs their costs incurred in prosecuting

this action, including an award of attorneys fees and expenses,

pursuant to 42 U.S.C. 1988.

Count Two: Violation of 2 of the Voting Rights Acts ResultsStandard

44. All paragraphs above are realleged as if set out fullyherein.

45. This Count is a claim to enjoin violations of Section 2 of the

Voting Rights Act of 1965, as amended, 42 U.S.C. 1973. Pursuant to

42 U.S.C. 1973j, 1973l, 1983, and 1988, this Court has jurisdiction to

afford plaintiffs the judicial relief they seek for violation of their rights

protected by the aforesaid statutory and constitutional provisions.

46. This Count is brought by all plaintiffs against all

defendants.

47. Act 2010-765 will have a disparate impact on African

Americans because of the needs of African-American voters as set forth

above.

48. Act 2010-765 contains standards, practices, and procedures

that result in the abridgement or dilution of the right to vote or to

participate in the political process on account of the voters race or color

in violation of 2 of the Voting Rights Act, 42 U.S.C. 1973. As noted



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above, African-American voters in Alabama disproportionately have a

need for GOTV programs. ADC has fulfilled that task for several

decades. Act 2010-765 will prohibit and interfere with ADCs

fundraising for an effective GOTV program.

49. As result of Act No. 2010-765 and its interference with

GOTV efforts of ADC, a number of black voters will be unable to get to

the polls to vote, and thus will be effectively barred from access to the

franchise. Black citizens will be disproportionately disadvantaged by

such interference.

50. As a result of Act No. 2010-765 and its interference with

voter protection efforts of ADC, a number of black voters will suffer

discriminatory treatment at the polls so as to deny their ability to cast

an independent and informed ballot, and so as to chill their future

participation. Black citizens will be disproportionately disadvantaged

by such interference.51. Act No. 2010-765 disproportionately reduces and forecloses

the access of minority candidates to amassing the resources necessary

to run an effective campaign against their majority-race opponents.

Accordingly, as a result of Act No. 2010-765 the political processes

leading to nomination or election in the State or political subdivision

are not equally open to participation by members of a class of citizens

protected by subsection (a) of this section. 42 U.S.C. 1973(b).

52. Under the totality of circumstances test, Act No. 2010-765

has a discriminatory effect on the ability of black voters in Alabama to



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participate in the political process and elect candidates of their choice to

public office.

Prayer for Relief (Count Two)53. WHEREFORE, the plaintiffs respectfully pray that this

Court will grant it the following relief:

a. Enter a declaratory judgment that Act 2010-765

violates the rights of plaintiffs and the class they seek to represent

protected by 2 of the Voting Rights Act, 42 U.S.C. 1973.

b. Enjoin the defendants, their successors, and those


amendment to Ala. Code 17-5-15(b) made by Act 2010-765 against any

organization making transfers or contributions to the plaintiff ADC for

use in GOTV efforts;

c. Enjoin the defendants, their successors, and those


amendment to Ala. Code 17-5-15(b) made by Act 2010-765 against the

plaintiff ADC for receipt of any transfer from any organization made for

use in GOTV efforts;

d. Grant such other and further equitable relief as may

be necessary.

e. Award plaintiffs their costs incurred in prosecuting

this action, including an award of attorneys fees and expenses,

pursuant to 42 U.S.C. 1973l and 1988.



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Osaygefo GrubbsJoe M. Reed & Associates, LLC

524 S. Union Street

Montgomery, AL 36104

Phone: 334-834-2000

Fax: 334-834-2088

email: [email protected]

Submitted by,

/s/ Edward Still

Edward StillAla. Bar No. ASB-4786-I47W

130 Wildwood Parkway

STE 108 PMB 304

Birmingham AL 35209

Phone & fax: 205-320-2882

email: [email protected] K. Tanner

3743 Military Rd, NWWashington DC 20015

Phone: 202-503-7696

Email:

[email protected]

(Motion forpro hac vice

admission pending)



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Exhibit A

FI2011 Jul-06 A

U.S. DISTRICT

N.D. OF AL

Case 5:11-cv-02449-JEO Document 1-1 Filed 07/06/11 Page 1 of 4


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Exhibit A

AL LEGIS 1SS 2010-765 Page 1

2010 Alabama Laws 1st Sp. Sess. Act 2010-765 (H.B. 9)(Publication page references are not available for this document.)

Copr. West 2008 No Claim to Orig. Govt. Works

ALABAMA 2010 SESSION LAW SERVICE2010 FIRST SPECIAL SESSION

Additions and deletions are identified in House Bills.

Act 2010-765H.B. No. 9

ELECTIONS--FAIR CAMPAIGN PRACTICES ACT--CONTRIBUTION REGULATIONS

By: Representatives McCutcheon, Long, Sanderford, Weaver, McMillan, McClendon, Galliher, Hubbard (M), Can-field, Boman, Collins, Wren, Greer, Boothe, Lee, Williams (D), Henry, Farley, Moore (B), Hill, Clouse, Chesteen,Beckman, Ison, Johnson (W), Barton, Wood, Johnson (K), Hammon, Gaston, Wallace, Vance, Ball, Fincher, Buttram,

Williams (P), Rich, Shiver, Nordgren, Faust, McClurkin, Williams (J), Treadaway, Baughn, Roberts, Drake, Davis,Patterson, Brown, Tuggle, Baker and Love

Enrolled, An Act, To amend Sections 17-5-7 and 17-5-15, Code of Alabama 1975, to prohibit campaign contribu-tions, expenditures, and other transfers of funds between political action committees; and to limit certain politicalparty expenditures to $5,000 per election cycle; and in connection therewith would have as its purpose or effect therequirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Consti-tution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution ofAlabama of 1901, as amended.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. This act shall be known and may be cited as the Congressman Mike Rogers/Jeff McLaughlin Campaign

Finance Transparency Act.

Section 2. Sections 17-5-7 and 17-5-15 of the Code of Alabama 1975, are amended to read as follows:

>

" 17-5-7.

"(a) A candidate, public official, or principal campaign committee as defined in this chapter, may only use campaigncontributions, and any proceeds from investing the contributions that are in excess of any amount necessary to defrayexpenditures of the candidate, public official, or principal campaign committee, for the following purposes:

"(1) Necessary and ordinary expenditures of the campaign.

"(2) Expenditures that are reasonably related to performing the duties of the office held. For purposes of this section,expenditures that are reasonably related to performing the duties of the office held do not include personal and leg-islative living expenses, as defined in this chapter.

"(3) Donations to the State General Fund, the Education Trust Fund, or equivalent county or municipal funds. Do-nations to an organization to which a federal income tax deduction is permitted under subparagraph (A) of paragraph



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AL LEGIS 1SS 2010-765Exhibit A Page 2


Copr. West 2008 No Claim to Orig. Govt. Works

(1) of subsection (b) of Section 170 of the Internal Revenue Code of 1986, as amended, or any other charitable,educational, or eleemosynary cause of Section 501 of Title 26 of the U. S. Code.

"(4) Transfers to another political committee as defined in this chapter.

"(4) (5) Inaugural or transitional expenses.

"(b) Notwithstanding any other provision of law, including, but not limited to, Section 13A-10-61, a candidate, publicofficial, or principal campaign committee may only accept, solicit, or receive contributions:

"(1) To influence the outcome of an election.

"(2) For a period of 12 months before an election in which the person intends to be a candidate. Provided, however,candidates for state office and their principal campaign committees may not accept, solicit, or receive contributionsduring the period when the Legislature is convened in session. For purposes of this section, the Legislature is con-vened in session at any time from the opening day of the special or regular session and continued through the day of

adjournment sine die for that session. However, this subdivision shall not apply within 120 days of any primary,runoff, or general election, and shall not apply to the candidates or their principal campaign committees participatingin any special election as called by the Governor. This subdivision shall not apply to a loan from a candidate to his orher own principal campaign committee.

"(3) For a period of 120 days after the election in which the person was a candidate, but only to the extent of anycampaign debt of the candidate or principal campaign committee of the candidate as indicated on the campaign fi-nancial disclosure form or to the extent of reaching the threshold that is required for qualification as a candidate for theoffice which he or she currently holds, or both.

"(4) For the purpose of paying all expenses associated with an election challenge including, but not limited to, quowarranto challenges.

"(c) Notwithstanding any other provision of law, including, but not limited to, Section 13A-10-61, a candidate, publicofficial, or principal campaign committee shall not accept, solicit, or receive contributions for any of the followingreasons:

"(1) As a bribe, as defined by Sections 13A-10-60 to 13A-10-63, inclusive.

"(2) For the intention of corruptly influencing the official actions of the public official or candidate for public office.

"(d) Notwithstanding any other provision of law, a principal campaign committee, during a term of officecommencing on the day after the election for the seat or office the candidate seeks and ending on the day of thenext general election for that seat or office, may pay qualifying fees to a political party and may expend up to acumulative total of five thousand dollars ($5,000) of campaign contributions, and any proceeds from investingthe contributions, for the following purposes:

"(1) Tickets for political party dinners or functions.

"(2) State or local political party dues or similar expenses incurred by independent or write-in candidates.

>



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AL LEGIS 1SS 2010-765Exhibit A Page 3


" 17-5-15.

"(a) It shall be unlawful for any person to make a contribution in the name of another person, or knowingly permit hisor her name to be used to effect such a contribution made by one person in the name of another person, or for any

candidate, principal campaign committee, or political action committee to knowingly accept a contribution made byone person in the name of another person; provided, however, that nothing in this chapter would prohibit any personfrom soliciting and receiving contributions from other persons for the purpose of making expenditures to a candidate,political campaign committee, political action committee, or elected state or local official required to file reportspursuant to Section 17-5-8.

"(b) It shall be unlawful for any political action committee, 527 organization, or private foundation, includinga principal campaign committee, to make a contribution, expenditure, or any other transfer of funds to anyother political action committee, 527 organization, or private foundation. It shall be unlawful for any principalcampaign committee to make a contribution, expenditure, or any other transfer of funds to any other principalcampaign committee, except where the contribution, expenditure, or any other transfer of funds is made froma principal campaign committee to another principal campaign committee on behalf of the same person.Notwithstanding the foregoing, a political action committee that is not a principal campaign committee may

make contributions, expenditures, or other transfers of funds to a principal campaign committee and a sepa-rate segregated fund established by a corporation under federal law if the fund does not receive any contri-butions from within this state other than contributions from its employees and directors is not restricted bythis subsection in the amount it may transfer to a political action committee established under the provisions ofSection 10A-21-1.01 by the same or an affiliated corporation."

Section 3. (a) A principal campaign committee of a state or local candidate may not receive or spend, in a campaignfor state or local office, campaign funds in excess of one thousand dollars ($1,000) that were raised by a principalcampaign committee of a federal candidate.

(b) Any receipt or expenditure of campaign funds in violation of subsection (a) shall be a Class C felony.

Section 4. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure oflocal funds, the bill is excluded from further requirements and application under Amendment 621, now appearing asSection 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the billdefines a new crime or amends the definition of an existing crime.

Section 5. This act shall become effective immediately following its passage and approval by the Governor, or itsotherwise becoming law.

Approved December 20, 2010.

AL LEGIS 1SS 2010-765

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