perry fec letter

8/3/2019 Perry FEC Letter

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P R E S I D E N T

FEIIERAL ELECTIONCOKMISSiON

2012 FEB 13 Pf1l2:38

OFFICE OF GEr^ERAL

COUNSEL

February 13,2012

AnthonyHermanOfiice ofthe General CounselFederal Election Commission999 E Street, NWWashington, DC 20463

Re: Advisory OpinionRequest

Dear Mr. Herman:

Govemor Rick Perry was aRepublicancandidate for Presidentof the United Statesduring the2012primary-election. RickPerry.org, Inc. ("the Committee") is his principalcampaign committee, as defined in 2 U.S.C. § 431(5).

Question 1

On Januaiy 19, 2012Govemor Perry suspendedhis campaign and wasno longer acandidate after that date, thereforedie Committee would like to transition to "non-connected PAC" status by amending its Form 1 by April 30th, 2012. See 2U.S.C. s..441a(a)(4); FEC Adv. Op. 1978-86.

The Committee has not accepted or solicitedanycontributions for the Committee (norany for the new proposed PAC) since January 19, 2012, but would like to potentially useboth newcontributions and residual fimds in its primary-election account to finance itsactivitiesonce it transitions to non-connected PAC status. The Committee has not yetdetemiined whether it will become a multi-candidate PAC, non-multi-candidatePAC or aSuper PAC, though itwill happily accept any guidance fix)m the Commissionas to apreferred course ofactionbased on the requested AOR outlined below.

The Committee received donations designated for the 2012 general-election in theamount ofapproximately $270,000. These donations are kept in a separate bank accounttoensure that none of these funds were used for the primary-election in accordance with11C.F.R. § 102.9(e). TheCommittee still holds these general-election funds in thatsegregated bank account.



On January 19, 2012 the Committee mailed out letters asking general-electioncontributors to redesignate their contributions so that they may remain in theCommittee's account and be used for purposes consistent with the Conmiittee*s proposednew non-connected PAC status. All general-election contributions not redesignatedwithin 60days (not including days during which this Advisory Opinion Request ispending before the Commission)will be refunded. As of the date of this AOR theCommittee has already received written redesignationrequests for nearly $30,000 andhasreceived written refundrequests for at least $100,000ofthese funds.

The Committee hasadetailed tracking sheet, updated daily thatdenotes the followingstatus for each donation:

1 Whether thedonor hasresponded that they want to redesignate their funds,2. Whether thedonor would like a refund or3. Whether thedonor has not yetresponded to theCommittee letter.

Afterapproval of this AOR the Committeewill then,use all remaining redesignatedfunds for purposes consistent with its new non-connected PAC status. None of thesefunds will be spent until such time as the Commission has reviewed andapproved ourAOR. Any donors who have responded and requested arefundwill be mailed theirchecks no later thanMarch 19*̂, 2012

(Note: If the Committee chose todo so in accordance with 11 CFR §102.3(a)(l) theCommittee currently could apply to the FEC to terminate its existence as ithas no netdebts or obligations outstanding related to the primary-election.)

Question2Altematively, the Committee would like the Commission to consider whether or notGovemor Rick Perry,as a former federalcandidate for President of the United States,may within 60 days (not including the days that this AORis pending before theCommission) instead redesignate donations originally earmarked for the 2012 general-election cycleonbehalf of his principalcampaign committee "RickPerry.org, Inc." to astate campaign committee in this case Govemor Perry's gubematorial campaigncommittee, Texans for Rick Perry whichwill comply with and follow all applicableTexas state laws. 2 U.S.C. 439a(a); seealso 11 CFR 113.2.

The Committee respectively requests a reply fromthe Commission if there is anyobjection toeither of these two proposed courses of action or if the Commissionbelieves

these courses of action are not consistent with federal campaign finance mles as theCommittee understands them.



L E G A L DISCUSSION

It is clear from prior F E C mlings that any principal campaign committee can at a later

date transformitself into a non-connected P A C and/or multicandidate P A C . FEC

Advisory Opinion 1988-41 confirms that:

The Commissionhas previously recognized that the principal campaign

committee of an individual who is no longer a candidate may convert to

multicandidate committee status. See, e.g.. Advisory Opinions 1987-11

and 1985-30. The Commissionnotes that the converting committee must

amend its Statement of Organization toredesignate itself as a

nonconniectedpolitical committee *no later than 10 days after the date of

the change.' 2 U.S .C . 433(c).

The Commissionhas also previously providedguidance in Advisory Opinions

1992-15 and 2008-04 that speaks directly toallowing a principal campaign

committee toredesignate general-election funds fo r an election in a futureelection cycle.

The F E C stated in Advisory Opinion 1992-15:

A contribution is redesignated fo r another election i f several conditions are

satisfied. The treasurer of the recipient authorized comniittee must request

that the contributor submit a written redesignation and must informthe

contributor that he or she may instead request a refund, and

the contributor must provide a valid written and signed redesignation

within 60 days of the treasurer's receipt of the contribution. 11 CFR

110.1(b)(5)(ii)(A)and (B ) and 110.2(b)(5)(ii)(A)and (B). Redesignation

to a particular election may only occur to the extent that the amountredesignated does not cause the contributor to exceed his or her limit fo r

that election. If redesignation is for a previous election, the amounts

redesignated cannot exceed the net debts outstanding fromthat election.

11 CFR 110.1(b)(5)(iii) and (b)(3)(i), 110.2(b)(5)(iii) and (b)(3)(i).

A nd the F E C declared in Advisory Opinion 2008-04:

A presidential candidate receiving general-election funds prior to

becoming the party's nominee, and who does not become the party's

nominee, may refund any general-election fimds received from

contributors. See 11 CFR 102.9(e)(3); Advisory Opinion 2007-03(Obama). Altematively, the presidential candidate in such a situation may

obtain redesignations for a different election in accordance with 11 CFR

110.1(b)(5) or 11 CFR 110.2.

After a detailed review of prior A O requests the F E C does not seem to have

specifically referenced any opinions or decisions to our current two questions:



(1)Whethergeneral-election donors may redesignate their contributions foruse ina future election cycle directly for anon-connected PAC founded by theCommittee's principal candidate or(2)To redesignate tiieir contributions to a state campaigncommittee on behalfof

the Committee's principal candidate.

Nevertheless, the Committee believes that the use ofredesignated funds for non-connected PAC purposes is highly analogous to the previous instances raised inthe AOs discussed above,whichparticularlyapproved by the FEC for principalcandidate campaign committees' future use ofredesignated funds between federalaccounts. For example, the FEC should vote in favor ofthis AOR basedon theprecedent ofAdvisory Opinion2008-04, where then-Senator Dodd's contributorswere allowed to redesignate presidential general-election contributions to hisSenate campaign, because asofthis date former Senator Dodd nowhas surplusfunds inhis old Senate campaign account thathe can at any time convert to anewnon-coimected PAC. Put differently, like cases ought to be treated alike. Senator

Dodd's surplus funds beganasgeneral-election presidential contributions andnowmay be converted foruse to anon-coimected PA C shouldhe choose to formone. The FEC shouldnot prevent the Committee's redesignated general-electionpresidential contributions from beingused fornon-connected PAC purposessimply because it does notpossessan affiliated Senate campaign to actasanintermediary inbetween cycles.

In conclusion, the Committee would like to pursue either ofthese courses ofaction by April30th, 2012. The Committee therefore respectfully requests thatthe Commission issue an opinion letting the Committee know if its plan to usegeneral-election contributions redesignated by contributors for non-coimectedPA C purposes is not permissible under federal law.

Altematively, the Committee would also like to know ifthe Commission wouldissue an opinion letting the Coinmittee know ifit would insteadbe allowed to usegeneral-election contributions redesignated by contributors foruse ina statecampaign committee on behalfof GovemorRickPerry.

Sincerely,

Salvatore PurpuraTreasurerRickPerry.org, Inc.POBox 1708Austin, TX 78767

perry fec letter

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