challenging the narrative & opening minds: pacs and the ... · 21.11.2018 · 1961 american...

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PRESENTED BY: Jan Baran and Caleb Burns—Wiley Rein LLP; John Feehery—EFB Advocacy; Paul Brathwaite—Federal Street Strategies; Catherine McDaniel—WSWA November 15, 2018 Challenging the Narrative & Opening Minds: PACs and the 116 th Congress The National Association of Business Political Action Committees

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Page 1: Challenging the Narrative & Opening Minds: PACs and the ... · 21.11.2018 · 1961 american medical association pac 1971 federal election campaign act; allowed corporations and unions

PRESENTEDBY:JanBaranandCalebBurns—WileyReinLLP;JohnFeehery—EFBAdvocacy;Paul

Brathwaite—FederalStreetStrategies;CatherineMcDaniel—WSWANovember15,2018

ChallengingtheNarrative&OpeningMinds:PACsandthe

116thCongress

TheNationalAssociationofBusinessPoliticalActionCommittees

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CampaignFinanceReformHistoryandNABPAC’sRoleof

Engagement

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1904TILLMANACTBANNEDDIRECTCORPORATECONTRIBUTIONS

1943SMITHCONNALLYACTBANNED

DIRECTLABORUNIONCONTRIBUTIONS

1943COUNCILOFINDUSTRIALORGANIZATIONSPAC

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1961AMERICANMEDICALASSOCIATIONPAC

1971FEDERALELECTIONCAMPAIGNACT;ALLOWEDCORPORATIONSANDUNIONSTOUSETHEIR

TREASURYFUNDSTOESTABLISHPACS

1974CREATIONOFTHEFEC

1974PACCONTRIBUTIONLIMITSSETAT$5,000

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1976BUCKLEYV.VALEO

SPENDINGBYGROUPS,

INDIVIDUALS,ORCANDIDATESCANNOLONGERBE

LIMITED;CONTRIBUTION

LIMITSSTILLAPPLY

197751BUSINESSESCOME

TOGETHERTOFORMTHENATIONALASSOCIATIONOF

BUSINESSPACS

1986REPUBLICANMAJORITYSENATEPASSESBILL69-30REDUCINGPACCONTRIBUTIONLIMITSANDCAPPINGAGGREGATEPACCONTRIBUTIONS

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199617PACBANBILLSINTRODUCEDINCONGRESS;OTHERBILLSCALL

FORREDUCINGPACLIMITS;NABPACLAUNCHESADVOCACY

CAMPAIGN

1997NABPACKILLSBIPARTISANSENATE

PROVISIONTOREDUCEPAC

CONTRIBUTIONLIMITS

1987NABPACINVITESASSOCIATIONSTOJOINNABPACAND

LAUNCHESCOMPREHENSIVEREFORMINITIATIVE

1997NRSCCHAIRMITCHMCCONNELLGIVENNABPAC“GUARDIANOFFREESPEECH”AWARD

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2001NABPACOPPOSES

MCCAIN-FEINGOLD&SHAYSMEEHANBILLS,SAYSPARTIESWILL

SUFFERANDWEALTHYWILLCONTROL

POLITICS

2002REPUBLICANMAJORITIESINSENATEAND

HOUSEPASSREFORMSTHATELIMINATESOFTMONEY,INCREASEINDIVIDUALLIMITS,BUT

KEEPPACSAT1974LIMITS

2002PRESIDENTGEORGEW.BUSHSIGNSBIPARTISANCAMPAIGNREFORMACT

INTOLAW

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2010CITIZENSUNITEDV.FEC-SCOTUSALLOWSCORPORATEINDEPENDENTEXPENDITURES;

TILLMANANDSMITH-CONNALLYBANSREMAININPLACE;SUPERPACSEMERGE

2010NABPAC

DEFEATSANTI-PACPROVISIONINH.R.5175“FOREIGN

NATIONAL”/USSUBSIDIARIES

2003SUPREMECOURTUPHOLDSMCCAIN-FEINGOLDSOFTMONEYBANANDELECTIONEERINGPROVISIONS

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2012NABPACANNOUNCESSUPPORTFORINCREASEANDINDEXATIONOFPACLIMITS,PRIORAPPROVAL

REFORM;ENDTOANNUIALAGGREGATECONTRIBUTION

LIMITS

2018ANTI-

CORPORATEPACRHETORIC

SURGES,NABPACGEARSUPFORANOTHERFIGHT

2012NABPACCALLS

FORDIFFERENTIATION

BETWEENTRADITIONAL

PACSANDSUPERPACS

2014SCOTUSSTIKESDOWNANNUALAGGREGATECONTRIBUTIONLIMITS

2014MCCONNELL,REIDAGREETONEWPARTYCOMMITTEELIMITSINOMNIBUS

2015FREEDOMCAUCUSSCUTTLESMCCONNELLOMNIBUSPLANTOINCREASEPARTYCOORDINATEDSPENDINGLIMITS

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Consequencesof2018Elections

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Developments

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|11

o Legislativeo BallotMeasureso Judicialo CorporateAccountability

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Legislative

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|12

o S.1585–DemocracyIsStrengthenedbyCastingLightonSpendinginElectionsActof2017“DISCLOSEAct.”o PrimarilydirectedtoforcingadditionaldisclosuresbyorganizationsengaginginindependentpoliticalspeechafterCitizensUnitedv.FEC.

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Legislative

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|13

o Wouldredefineasaforeignnational–andsubjecttotheforeignnationalprohibitionsoffederalcampaignfinancelaw–acompanythat,amongotherthings:o 20%foreignowned;or

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Legislative

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|14

o Whereaforeignnational“hasthepowertodirect,dictate,orcontrolthedecisionmakingprocessofthecorporationwithrespecttoitsinterestsintheUnitedStates.”

o AnysuchcompanywouldbeprohibitedfromoperatingaPAC.

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Legislative

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|15

o H.R.1615–GetForeignMoneyOutofU.S.ElectionsAct.o TakessameapproachasDISCLOSEActregardingclassificationasaforeignnational.

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Legislative

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|16

o Democrats’2019“ABetterDeal”Proposal.o CampaignfinanceportionincludesDISCLOSEActprovisions.

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Legislative

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|17

o S.2039/H.R.4170–DisclosingForeignInfluenceAct.o WouldremovetheexemptionfromregistrationandreportingundertheForeignAgentsRegistrationActifregisteredundertheLobbyingDisclosureAct.

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Legislative

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|18

o Statelegislativeproposals:o Disclosureofindependentpoliticalspeech–o AL,AR,CO,CT,GA,ID,KS,LA,ME,MN,MO,MT,NE,NH,NJ,OK,PA,SC,SD,TX,WV,WY

o Foreigncorporatepoliticalactivity–o MA

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BallotMeasures

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|19

o Stateballotmeasureproposals:o Disclosureofindependentpoliticalspeech–o AZ,MA,ND

o Banonforeigncorporatecontributions–o ND

o ApplyingstaterequirementsonfederalPACs–o MO

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Judicial

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|20

o Federalcourtcaseshavefocusedondisclosure.o CREWv.FEC:struckdownregulationlimitingdisclosureofdonorstoorganizationsmakingindependentexpenditures.

o CREWv.AmericanActionNetwork:assertingclaimthat501(c)(4)’spoliticalactivitiesrequireittodisclosedonorslikeaPAC.

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CorporateAccountability

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|21

o CPA-ZicklinIndexo Appearstobegrowinginscopeandprominence.

o ShareholderProposalso Continuetobeproposedandhavecausedcorporationstoreactbyplacinginformationaboutpoliticalactivitiesonwebsites.

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ChangingtheNarrativeandOpeningMinds

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DefiningtheProblem

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|23

CurrentEnvironment

o Anti-PACpledgeso CorporatePACsaredarkmoneyo Anti-PACrhetoric

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CreatingaPlan

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|24

EFBAdvocacyandFederalStreetStrategies

o ExcellentCFRknowledge/historyo Relationshipswithkeyinfluencers/reporters/MOCs

o Socialmediaadvocacyo Bi-partisanteam

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NABPACplan:

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|25

1)  ShiftthepublicnarrativethatcorporatePACsarebad/neutralize

2)  EducateCongressontheneedto“modernize”campaignlaw…akareform

Goal:Createan18thmonthstrategicplanforNABPACtoimplement

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NABPACplan:

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|26

Objectives:•  Developfocused,moderninitiativedesignedtochange

dialogue•  ReintroducetraditionalPACstolawmakers,Hillstaffand

media(whiledifferentiatingfromSuperPACs)•  Explaintheneedforwide-rangingreformonan

antiquatedyettransparenthard-moneysystem•  Providemembershipwithfacts,talkingpointstodefend,

protectandpromotetheirPACsinternally•  Energizeabi-partisangroupofHillchampionsto

preserve•  PromoteandadvancetherolesofPACintheCFsystem

throughspecificlegislativeinitiatives

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Dynamics:DividedGovernmentinChangingWorld

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|27

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TheNewHouseDynamics

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|28

LeadersandFollowers

o Democratso Leadershipo CommitteeChairso NewFaces

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TheNewHouseDynamics

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|29

LeadersandFollowers

o Republicanso LeadershipChallengeso RankingMemberso Changingideologicalbalance

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TheSenate:Sameasiteverwas

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|30

Republicans

o MitchMcConnell:Strongerthanevero JohnCornyn:Poisedtoleado MovingonUp(Thune,Barasso,Blunt)o Eyeon2020(21R’svs12D’s)

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TheSenate:Sameasiteverwas

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|31

Democrats

o Schumer:CanHeMakeaDeal?o ProgressivesRunningforPresidento PACsvs.Grassroots

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THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|32

PACsAreNotPartoftheProblem

PACsarepart of thesolut ion andtheyhavebeens ince1974

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HowDoWeChangeTheDebate?

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|33

o Westartengaginginit

o Weofferclear,concisearguments

o Weprovidedatatoproveourpoints

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HowDoWeChangeTheDebate?

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|34

o Wehitourtargetaudiences

o Weeducate,educate,educate

o Weuseallofthetoolsavailabletous:Membercontacts,socialmedia,earnedmedia,video

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RebuttheAttacks

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|35

o PACcontributionsarethecleanestmoneyinpolitics

o PACcontributionsarethemostbipartisaninpolitics

o PACcontributionsinspirepoliticalinvolvement

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RebuttheAttacks

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|36

o PACcontributionscomenotfromcorporationsbutfromemployees

o PACcontributionsmoderatethepoliticaldiscourse,becausePACsseekresults

o Weneedtomaketheseargumentsconsistently.

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PACsvs.DarkMoney

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|37

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ElementsoftheToolKit

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|38

o WhatIsaPAC?o WhatisASuperPAC?o PACvs.SUPERPACvs501(c)(4)o PACStatso NoteCardonLegislativePrioritieso ElevatorSpeecho OurStatement

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TheyaretheChampions(WeHope)

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|39

Leadership

o MitchMcConnellandKevinMcCarthy

o ChuckSchumerandStenyHoyer

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TheyaretheChampions(WeHope)

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|40

CommitteesofJurisdiction

o HouseAdministration

o SenateRules

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TheyaretheChampions(WeHope)

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|41

PartyCommitteeso NRCCandNRSC

o DCCCandDSCC

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TheyaretheChampions(WeHope)

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|42

PartyCaucuseso Tri-Caucus

o RSCandTuesdayGroup

o PossibleWomen’sGroups

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Educate,Educate,Educate

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|43

Journalists

o KateAckleyandCatCamilia|RollCallo ScottBlandandTheoMeyer|Politicoo MichelleLeeandPaulKane|WashingtonPosto AlexBurnsandCarlHulse|NewYorkTimeso BrodyMullinsandRebeccasBallhaus|WSJ

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Educate,Educate,Educate

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|44

Politicalreformers

o NormOrnstein

o FredWertheimer

o NormEisen

o ThomasMann

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Educate,Educate,Educate

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|45

ThinkTanks

o Brookings

o AEI

o BipartisanPolicyCenter

o CATO

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TheLegislativeFramework:Whatdowewantandwhatcanwegive?

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|46

Whatwewant?o IncreasePACcontributionlimittocandidatesforfederalofficeto$10,000andindexforinflation

o IncreasecontributionlimittoPACsfromapprovedemployeesto$10,000

o Reformpriorapprovallawsfortradeassociationswithcorporatemembers

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TheLegislativeFramework:Whatdowewantandwhatcanwegive?

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|47

Whatcanwegive?o IncreasetransparencyofcampaignfinancedatatothepublicthroughtheFEC

o ImprovedisclosurelawsforSuperPACsandstrengthenscrutinyofC4’s

Otheroptions?

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THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|48

InsideGameo MeetwithMembersandstaff

o Cultivatechampions

o DraftLegislation

TacticsandTools

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THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|49

OutsideGameo InfluencetheInfluencers

o Makethecaseonsocialmedia

o Berealisticontargetaudience

o Rapidlyrespondtotheanti-PACcrowd

o Alwaysbepro-reform

TacticsandTools

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TacticsandTools

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|50

Toolso Data:Weneedyourdata(averagecontributiontoPAC,averagedisbursementtocandidate,etc)

o RelationshipswithMemberso Fundraiserso Lobbyists

o EarnedMediao PaidMediao Socialmedia:Facebook,Twitter,LinkedIno Videoo Infographics

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WhatAretheDeliverables

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|51

o Developmentofmessaging,presentationandcollateralmaterialsforusebyyoutouseinternallyatyourorganizationandforeducationbriefingsontheHill

o Astrategiclobbyingplanfocusedono Leadershipoutreacho BuildingabipartisanCongressionalChampionsProgram

o PartyCommitteeeducationandoutreach

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WhatAretheDeliverables

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|52

o Acomprehensivesocialmediastrategy

o Presentations,talkingpointsandbackgroundmaterialstobeusedwiththenationalmedia,MembersofCongressandtheirstaffandkeyinfluentials

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WhatIstheTimeline?

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|53

ThestrategicplanisduemidDecemberconsistsof4maincomponents:

o EducationPhaseo Media&Influencerso MOCs&Staff

o LobbyingPhaseo ChampionDevelopment&Activationo LegislativeFix

o AdvocacyPhaseo Social,EarnedandPaidMedia

o RapidResponsePhase

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WhatIstheTimeline?

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|54

January2019

June2019

March2019

September2019

December2019

March2020

June2020

RAPIDRESPONSE

LOBBYING

EDUCATION

ADVOCACY

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THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|55

1.  Provideuswithdata(surveyquestions)2.  Decidewhetherornotyou/yourcompany

comfortableparticipatinginthisNABPACinitiative3.  Reviewandbecomeknowledgeableutilizingthe

toolkitwewillprovide4.  InviteHeadofGR/CommstoJanuaryNAPACRap

Sessiontobetterunderstandthisinitiative

Takeawaysandtodos

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THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|56

QuestionsandDiscussion