Introduction
Under provisions of the Bipartisan
Campaign Reform Act (BCRA) known as the "Millionaires'
Amendment,"candidates running against a self-financed opponent
may be eligible to receive contributions from individuals at increased
limits and to have increased coordinated party expenditures made on
their behalf.
Threshold Amounts
The provisions of the Millionaires' Amendment may, in certain circumstances,
increase the contribution limits for House and Senate candidates facing
opponents who spend personal funds in excess of certain threshold amounts.
The threshold amounts and the triggers for increased limits for House
and Senate candidates differ. For House candidates, the threshold amount
is $350,000. 11
CFR 400.9(b). House candidates whose opponent's personal spending
exceeds that threshold may trigger increased limits. For Senate
candidates, the threshold
amount is the sum of $150,000 plus an amount equal to the voting
age population of the State in question multiplied by $0.04.
[1]
11
CFR 400.9(a). Senate candidates may qualify for increased limits
only after an opposing candidate's personal spending exceeds twice
the threshold amount.
Opposition Personal Funds Amount
An opposing candidate's campaign-related expenditures from personal
funds in excess of the triggering threshold do not automatically result
in increased contribution limits. The Millionaires' Amendment also takes
into account fundraising by the campaigns. Campaigns must use the "opposition
personal funds amount" formula to determine whether an opposing candidate
has spent sufficient personal funds in comparison to the amounts raised
by the campaigns to trigger increased contribution limits
A candidate with a significant fundraising advantage over a self-financed
opponent might not receive an increased contribution limit. In this
way, the regulations avoid giving increased contribution limits to candidates
whose campaigns have a significant fundraising advantage over their
opponents.
Increased
Individual Contribution Limits
Under federal law, individuals typically may contribute no more than
$2,300 per election to a House or Senate candidate. However, under
the conditions discussed below, an individual may make contributions
in excess of $2,300 per election.
[2]
House
When a House candidate's "opposition personal funds amount" exceeds
$350,000:
- The contribution limits for the candidate triple ($6,900 per election
for 2007-08); and
- The national and State party committees may make unlimited coordinated
expenditures on behalf of the candidate.
11
CFR 400.41.
Senate
For Senate candidates, the extent to which a candidate's "opposition
personal funds amount" exceeds the
threshold determines the amount of the increase in contribution
limits. If it exceeds:
- Twice the threshold ($300,000 + ($0.08 x VAP)), then the individual
contribution limits for the candidate are tripled ($6,900 per election
for 2007-08);
- Four times the threshold ($600,000 + ($0.16 x VAP)), then the individual
contribution limits for the candidate are raised six-fold ($13,800
per election for 2007-08);
- Ten times the threshold ($1,500,000 + ($0.40 x VAP)), then the contribution
limits for the candidate are raised six-fold ($13,800 per election
for 2007-08), and the national and State party committees may make
unlimited coordinated expenditures on the candidate's behalf.
11
CFR 400.40.
Avoiding
Excessive Contributions and Coordinated Party Expenditures Under the
Increased Limits
Campaigns that accept contributions and coordinated party expenditures
under the increased limits must continually monitor the opposition personal
funds amount to ensure their continued eligibility for the increased
limits, and that they have not accepted excessive contributions.
When the aggregate amount of contributions at the increased limit and
coordinated party expenditures at the increased limit is equal to 100%
of the opposition personal funds amount (for House candidates)
or 110% of the opposition personal funds amount (for Senate candidates),
then:
Reporting and Notification
In order to facilitate continuous monitoring of fundraising, personal
spending by candidates and coordinated party expenditures, new reporting
and notification requirements have been added to FEC regulations.
Form 2
Declaration of Intent in Statement of Candidacy
At the outset, candidates must estimate on their Statement of Candidacy
(FEC Form 2 [PDF]) the amount
by which their personal spending on the campaign will exceed the applicable
threshold amount. 11
CFR 101.1(a). This must be faxed to each opposing campaign (Senate
candidates must fax the form to the FEC in addition to filing the
original with the Secretary of the Senate).
Form
3Z-1
Disclosure of Gross Receipts and Aggregate Expenditures from Personal
Funds
To facilitate opposition personal funds calculations, by July 15 of
the year before the election and January 31 of the year in which the
election takes place, each principal campaign committee must file a
report disclosing the campaign's aggregate gross receipts for the primary
and general elections, and the candidate's aggregate contributions from
personal funds for the primary and general elections (FEC
Form 3Z-1 [PDF]). 11
CFR 104.19.
Form 10
Notification of Expenditures from Personal Funds
A candidate's principal campaign committee must notify the Commission
[3]
and each opposing candidate within 24 hours when the candidate
makes an expenditure from personal funds that aggregates in excess of
the triggering threshold
(i.e., $350,000 for House candidates and $300,000 + ($0.08 x VAP) for
Senate candidates). 11
CFR 400.21.
[4]
From that time on, the committee must also notify all
of the above-listed entities within 24 hours whenever the candidate
makes an additional expenditure from personal funds in excess of $10,000.
11
CFR 400.22. This notification must be made by either faxing
a copy of FEC Form 10 [PDF]
or e-mailing a copy of FEC Form 10 or equivalent information to all
of the entities mentioned above. 11
CFR 400.24.
[5]
Form 3X
Schedule F (Party Committees)
National or State political party committees that make coordinated
expenditures on behalf of a candidate whose limits have been raised
in accordance with the above provisions must notify the Commission and
the candidate on whose behalf the expenditure is made within 24 hours.
This is done by faxing or e-mailing a copy of Schedule
F [PDF] to the Commission and to the candidate or authorized candidate
committee on whose behalf the expenditure was made. 11
CFR 400.30(c)(2).
Form 11
Calculation of Opposition Personal Funds Amount
Each time a candidate committee receives a Form 10 from an opponent,
it must recalculate its opposition personal funds amount (use the worksheet
provided with the instructions
for FEC Form 11 [PDF]). If the committee's opposition personal
funds amount exceeds
the threshold for increased coordinated party expenditures (i.e.,
$350,000 for House candidates and $1,500,000 + ($0.40 x VAP) for Senate
candidates), then it must file a calculation of its opposition personal
funds amount with the FEC and with its national and State party committees
on FEC Form 11 [PDF] within
24 hours. 11
CFR 400.30(b)(2).
Form 12
Notice of Suspension of Increased Limits
Candidates operating under increased limits (or their principal campaign
committees) must fax or e-mail FEC
Form 12 [PDF] to their national and State party committees and the
FEC within 24 hours after the aggregate amount of contributions accepted
and coordinated party expenditures made under the increased limits reaches:
- 100 percent of the opposition personal funds amount for House candidates;
or
- 110 percent of the opposition personal funds amount for Senate candidates.
11 CFR 400.31(d) and (e).
Withdrawal of Opponent
If a candidate's self-financed opponent withdraws from the election:
- The candidate may no longer accept any contribution under the increased
limits; and
- The national and State party committees must not make any coordinated
expenditures on the candidate's behalf at the increased limits.
400.32(b)
and (c).
An opponent is considered to have withdrawn from the election on the
earlier of the following dates:
- The date on which the candidate publicly announces that he or she
is no longer a candidate and ceases to conduct campaign activities;
or
- The date on which the candidate becomes ineligible for nomination
or election by operation of law.
400.32(a)(2)(i)
and (ii).
Disposal of Excess Contributions Made
at Increased Limit
Special rules apply for disposing of any excess contributions
[6]
made at the increased limit:
- The candidate's committee must refund any excess contributions within
50 days of the election for which they were designated. 11
CFR 400.51;
- Contributions made at the increased limit cannot be redesignated
for another election. 11
CFR 400.52;
- The candidate's committee must refund the excess contributions to
individuals who made them. 11
CFR 400.53(a);
- Any refund checks not cashed within six months of the date on the
check must be disgorged to the U.S. Treasury within nine months of
the election. 11
CFR 400.53(b); and
- The committee must disclose the source, amount and manner in which
any excess contributions were refunded on their next report falling
more than 50 days after the election. 11
CFR 400.54.
Footnotes:
[1]
Differently formulated: $150,000 + (.04 x (voting age population))
= Senate threshold.
[2]
It is important to note that contributions made at the increased
limit may not be redesignated for a different election. See the
FEC brochure on Contributions.
[3]
Senate candidates must also inform the Secretary of the Senate.
11
CFR 400.21(a).
[4]
House candidates must also notify the national party committee
of each opposing candidate. 11
CFR 400.21(b).
[5]
Senate candidates must file the original Form 10 with the Secretary
of the Senate. 11
CFR 400.24(a).
[6]
Excess contributions are contributions that were made at the increased
limit but were not spent in connection with the election to which they
relate. 11
CFR 400.50.
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