Challenging the Narrative & Opening Minds: PACs and the 116 th Congress

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Abner McCormick
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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

1 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 The National Association of Business Political Action Committees Challenging the Narrative & Opening Minds: PACs and the 116 th Congress

2 Campaign Finance Reform History and NABPAC s Role of Engagement

3 1943 SMITH CONNALLY ACT BANNED DIRECT LABOR UNION CONTRIBUTIONS 1904 TILLMAN ACT BANNED DIRECT CORPORATE CONTRIBUTIONS 1943 COUNCIL OF INDUSTRIAL ORGANIZATIONS PAC

4 1971 FEDERAL ELECTION CAMPAIGN ACT; ALLOWED CORPORATIONS AND UNIONS TO USE THEIR TREASURY FUNDS TO ESTABLISH PACS 1974 CREATION OF THE FEC 1961 AMERICAN MEDICAL ASSOCIATION PAC 1974 PAC CONTRIBUTION LIMITS SET AT $5,000

REDUCING PAC CONTRIBUTION LIMITS AND CAPPING AGGREGATE

5 1976 BUCKLEY V. VALEO SPENDING BY GROUPS, INDIVIDUALS, OR CANDIDATES CAN NO LONGER BE LIMITED; CONTRIBUTION LIMITS STILL APPLY 1986 REPUBLICAN MAJORITY SENATE PASSES BILL REDUCING PAC CONTRIBUTION LIMITS AND CAPPING AGGREGATE PAC CONTRIBUTIONS BUSINESSES COME TOGETHER TO FORM THE NATIONAL ASSOCIATION OF BUSINESS PACS

1996 17 PAC BAN BILLS INTRODUCED IN CONGRESS; OTHER BILLS CALL FOR REDUCING PAC LIMITS; NABPAC LAUNCHES ADVOCACY CAMPAIGN 1987 NABPAC INVITES ASSOCIATIONS TO JOIN NABPAC AND LAUNCHES

6 PAC BAN BILLS INTRODUCED IN CONGRESS; OTHER BILLS CALL FOR REDUCING PAC LIMITS; NABPAC LAUNCHES ADVOCACY CAMPAIGN 1987 NABPAC INVITES ASSOCIATIONS TO JOIN NABPAC AND LAUNCHES COMPREHENSIVE REFORM INITIATIVE 1997 NABPAC KILLS BIPARTISAN SENATE PROVISION TO REDUCE PAC CONTRIBUTION LIMITS 1997 NRSC CHAIR MITCH MCCONNELL GIVEN NABPAC GUARDIAN OF FREE SPEECH AWARD

7 NABPAC OPPOSES MCCAIN-FEINGOLD & SHAYS MEEHAN BILLS, SAYS PARTIES WILL SUFFER AND WEALTHY WILL CONTROL POLITICS PRESIDENT GEORGE W. BUSH SIGNS BIPARTISAN CAMPAIGN REFORM ACT INTO LAW 2002 REPUBLICAN MAJORITIES IN SENATE AND HOUSE PASS REFORMS THAT ELIMINATE SOFT MONEY, INCREASE INDIVIDUAL LIMITS, BUT KEEP PACS AT 1974 LIMITS

8 2010 CITIZENS UNITED V. FEC - SCOTUS ALLOWS CORPORATE INDEPENDENT EXPENDITURES; TILLMAN AND SMITH-CONNALLY BANS REMAIN IN PLACE; SUPER PACS EMERGE 2003 SUPREME COURT UPHOLDS MCCAIN- FEINGOLD SOFT MONEY BAN AND ELECTIONEERING PROVISIONS 2010 NABPAC DEFEATS ANTI- PAC PROVISION IN H.R.5175 FOREIGN NATIONAL / US SUBSIDIARIES

9 2012 NABPAC ANNOUNCES SUPPORT FOR INCREASE AND INDEXATION OF PAC LIMITS, PRIOR APPROVAL REFORM; END TO ANNUIAL AGGREGATE CONTRIBUTION LIMITS 2012 NABPAC CALLS FOR DIFFERENTIATION BETWEEN TRADITIONAL PACS AND SUPER PACS 2014 SCOTUS STIKES DOWN ANNUAL AGGREGATE CONTRIBUTION LIMITS 2015 FREEDOM CAUCUS SCUTTLES MCCONNELL OMNIBUS PLAN TO INCREASE PARTY COORDINATED SPENDING LIMITS 2014 MCCONNELL, REID AGREE TO NEW PARTY COMMITTEE LIMITS IN OMNIBUS 2018 ANTI- CORPORATE PAC RHETORIC SURGES, NABPAC GEARS UP FOR ANOTHER FIGHT

10 Consequences of 2018 Elections

11 Developments o Legislative o Ballot Measures o Judicial o Corporate Accountability THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 11

12 Legislative o S Democracy Is Strengthened by Casting Light on Spending in Elections Act of 2017 DISCLOSE Act. o Primarily directed to forcing additional disclosures by organizations engaging in independent political speech after Citizens United v. FEC. THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 12

13 Legislative o Would redefine as a foreign national and subject to the foreign national prohibitions of federal campaign finance law a company that, among other things: o 20% foreign owned; or THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 13

14 Legislative o Where a foreign national has the power to direct, dictate, or control the decision making process of the corporation with respect to its interests in the United States. o Any such company would be prohibited from operating a PAC. THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 14

15 Legislative o H.R Get Foreign Money Out of U.S. Elections Act. o Takes same approach as DISCLOSE Act regarding classification as a foreign national. THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 15

16 Legislative o Democrats 2019 A Better Deal Proposal. o Campaign finance portion includes DISCLOSE Act provisions. THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 16

17 Legislative o S. 2039/H.R Disclosing Foreign Influence Act. o Would remove the exemption from registration and reporting under the Foreign Agents Registration Act if registered under the Lobbying Disclosure Act. THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 17

18 Legislative o State legislative proposals: o Disclosure of independent political speech o AL, AR, CO, CT, GA, ID, KS, LA, ME, MN, MO, MT, NE, NH, NJ, OK, PA, SC, SD, TX, WV, WY o Foreign corporate political activity o MA THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 18

19 Ballot Measures o State ballot measure proposals: o Disclosure of independent political speech o AZ, MA, ND o Ban on foreign corporate contributions o ND o Applying state requirements on federal PACs o MO THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 19

20 Judicial o Federal court cases have focused on disclosure. o CREW v. FEC: struck down regulation limiting disclosure of donors to organizations making independent expenditures. o CREW v. American Action Network: asserting claim that 501(c)(4) s political activities require it to disclose donors like a PAC. THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 20

21 Corporate Accountability o CPA-Zicklin Index o Appears to be growing in scope and prominence. o Shareholder Proposals o Continue to be proposed and have caused corporations to react by placing information about political activities on websites. THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 21

22 Changing the Narrative and Opening Minds

23 Defining the Problem Current Environment o Anti-PAC pledges o Corporate PACs are dark money o Anti-PAC rhetoric THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 23

24 Creating a Plan EFB Advocacy and Federal Street Strategies o Excellent CFR knowledge/history o Relationships with key influencers/ reporters/mocs o Social media advocacy o Bi-partisan team THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 24

25 NABPAC plan: 1) Shift the public narrative that corporate PACs are bad/ neutralize 2) Educate Congress on the need to modernize campaign law aka reform Goal: Create an 18 th month strategic plan for NABPAC to implement THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 25

26 NABPAC plan: Objectives: Develop focused, modern initiative designed to change dialogue Reintroduce traditional PACs to lawmakers, Hill staff and media (while differentiating from Super PACs) Explain the need for wide-ranging reform on an antiquated yet transparent hard-money system Provide membership with facts, talking points to defend, protect and promote their PACs internally Energize a bi-partisan group of Hill champions to preserve Promote and advance the roles of PAC in the CF system through specific legislative initiatives THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 26

27 Dynamics: Divided Government in Changing World THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 27

28 The New House Dynamics Leaders and Followers o Democrats o Leadership o Committee Chairs o New Faces THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 28

29 The New House Dynamics Leaders and Followers o Republicans o Leadership Challenges o Ranking Members o Changing ideological balance THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 29

30 The Senate: Same as it ever was Republicans o Mitch McConnell: Stronger than ever o John Cornyn: Poised to lead o Moving on Up (Thune, Barasso, Blunt) o Eye on 2020 (21 R s vs 12 D s) THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 30

31 The Senate: Same as it ever was Democrats o Schumer: Can He Make a Deal? o Progressives Running for President o PACs vs. Grassroots THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 31

32 PACs Are Not Part of the Problem PACs are part of the solution and they have been since 1974 THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 32

33 How Do We Change The Debate? o We start engaging in it o We offer clear, concise arguments o We provide data to prove our points THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 33

34 How Do We Change The Debate? o We hit our target audiences o We educate, educate, educate o We use all of the tools available to us: Member contacts, social media, earned media, video THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 34

35 Rebut the Attacks o PAC contributions are the cleanest money in politics o PAC contributions are the most bipartisan in politics o PAC contributions inspire political involvement THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 35

36 Rebut the Attacks o PAC contributions come not from corporations but from employees o PAC contributions moderate the political discourse, because PACs seek results o We need to make these arguments consistently. THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 36

37 PACs vs. Dark Money THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 37

38 Elements of the Tool Kit o What Is a PAC? o What is A Super PAC? o PAC vs. SUPER PAC vs 501 (c)(4) o PAC Stats o Note Card on Legislative Priorities o Elevator Speech o Our Statement THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 38

39 They are the Champions (We Hope) Leadership o Mitch McConnell and Kevin McCarthy o Chuck Schumer and Steny Hoyer THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 39

40 They are the Champions (We Hope) Committees of Jurisdiction o House Administration o Senate Rules THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 40

41 They are the Champions (We Hope) Party Committees o NRCC and NRSC o DCCC and DSCC THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 41

42 They are the Champions (We Hope) Party Caucuses o Tri-Caucus o RSC and Tuesday Group o Possible Women s Groups THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 42

43 Educate, Educate, Educate Journalists o Kate Ackley and Cat Camilia Roll Call o Scott Bland and Theo Meyer Politico o Michelle Lee and Paul Kane Washington Post o Alex Burns and Carl Hulse New York Times o Brody Mullins and Rebeccas Ballhaus WSJ THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 43

44 Educate, Educate, Educate Political reformers o Norm Ornstein o Fred Wertheimer o Norm Eisen o Thomas Mann THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 44

45 Educate, Educate, Educate Think Tanks o Brookings o AEI o Bipartisan Policy Center o CATO THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 45

46 The Legislative Framework: What do we want and what can we give? What we want? o Increase PAC contribution limit to candidates for federal office to $10,000 and index for inflation o Increase contribution limit to PACs from approved employees to $10,000 o Reform prior approval laws for trade associations with corporate members THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 46

47 The Legislative Framework: What do we want and what can we give? What can we give? o Increase transparency of campaign finance data to the public through the FEC o Improve disclosure laws for Super PACs and strengthen scrutiny of C4 s Other options? THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 47

48 Tactics and Tools Inside Game o Meet with Members and staff o Cultivate champions o Draft Legislation THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 48

49 Tactics and Tools Outside Game o Influence the Influencers o Make the case on social media o Be realistic on target audience o Rapidly respond to the anti-pac crowd o Always be pro-reform THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 49

50 Tactics and Tools Tools o Data: We need your data (average contribution to PAC, average disbursement to candidate, etc) o Relationships with Members o Fundraisers o Lobbyists o Earned Media o Paid Media o Social media: Facebook, Twitter, LinkedIn o Video o Infographics THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 50

51 What Are the Deliverables o Development of messaging, presentation and collateral materials for use by you to use internally at your organization and for education briefings on the Hill o A strategic lobbying plan focused on o Leadership outreach o Building a bipartisan Congressional Champions Program o Party Committee education and outreach THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 51

52 What Are the Deliverables o A comprehensive social media strategy o Presentations, talking points and background materials to be used with the national media, Members of Congress and their staff and key influentials THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 52

53 What Is the Timeline? The strategic plan is due mid December consists of 4 main components: o Education Phase o Media & Influencers o MOCs & Staff o Lobbying Phase o Champion Development & Activation o Legislative Fix o Advocacy Phase o Social, Earned and Paid Media o Rapid Response Phase THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 53

54 What Is the Timeline? ADVOCACY LOBBYING EDUCATION RAPID RESPONSE January 2019 March 2019 June 2019 September 2019 December 2019 March 2020 June 2020 THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 54

55 Takeaways and to dos 1. Provide us with data (survey questions) 2. Decide whether or not you/your company comfortable participating in this NABPAC initiative 3. Review and become knowledgeable utilizing the tool kit we will provide 4. Invite Head of GR/Comms to January NAPAC Rap Session to better understand this initiative THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 55

56 Questions and Discussion THE NATIONAL ASSOCIATION OF BUSINESS POLITICAL ACTION COMMITTEES 56

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