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

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PRESENTEDBY:JanBaranandCalebBurns—WileyReinLLP;JohnFeehery—EFBAdvocacy;Paul

Brathwaite—FederalStreetStrategies;CatherineMcDaniel—WSWANovember15,2018

ChallengingtheNarrative&OpeningMinds:PACsandthe

116thCongress

TheNationalAssociationofBusinessPoliticalActionCommittees

CampaignFinanceReformHistoryandNABPAC’sRoleof

Engagement

1904TILLMANACTBANNEDDIRECTCORPORATECONTRIBUTIONS

1943SMITHCONNALLYACTBANNED

DIRECTLABORUNIONCONTRIBUTIONS

1943COUNCILOFINDUSTRIALORGANIZATIONSPAC

1961AMERICANMEDICALASSOCIATIONPAC

1971FEDERALELECTIONCAMPAIGNACT;ALLOWEDCORPORATIONSANDUNIONSTOUSETHEIR

TREASURYFUNDSTOESTABLISHPACS

1974CREATIONOFTHEFEC

1974PACCONTRIBUTIONLIMITSSETAT$5,000

1976BUCKLEYV.VALEO

SPENDINGBYGROUPS,

INDIVIDUALS,ORCANDIDATESCANNOLONGERBE

LIMITED;CONTRIBUTION

LIMITSSTILLAPPLY

197751BUSINESSESCOME

TOGETHERTOFORMTHENATIONALASSOCIATIONOF

BUSINESSPACS

1986REPUBLICANMAJORITYSENATEPASSESBILL69-30REDUCINGPACCONTRIBUTIONLIMITSANDCAPPINGAGGREGATEPACCONTRIBUTIONS

199617PACBANBILLSINTRODUCEDINCONGRESS;OTHERBILLSCALL

FORREDUCINGPACLIMITS;NABPACLAUNCHESADVOCACY

CAMPAIGN

1997NABPACKILLSBIPARTISANSENATE

PROVISIONTOREDUCEPAC

CONTRIBUTIONLIMITS

1987NABPACINVITESASSOCIATIONSTOJOINNABPACAND

LAUNCHESCOMPREHENSIVEREFORMINITIATIVE

1997NRSCCHAIRMITCHMCCONNELLGIVENNABPAC“GUARDIANOFFREESPEECH”AWARD

2001NABPACOPPOSES

MCCAIN-FEINGOLD&SHAYSMEEHANBILLS,SAYSPARTIESWILL

SUFFERANDWEALTHYWILLCONTROL

POLITICS

2002REPUBLICANMAJORITIESINSENATEAND

HOUSEPASSREFORMSTHATELIMINATESOFTMONEY,INCREASEINDIVIDUALLIMITS,BUT

KEEPPACSAT1974LIMITS

2002PRESIDENTGEORGEW.BUSHSIGNSBIPARTISANCAMPAIGNREFORMACT

INTOLAW

2010CITIZENSUNITEDV.FEC-SCOTUSALLOWSCORPORATEINDEPENDENTEXPENDITURES;

TILLMANANDSMITH-CONNALLYBANSREMAININPLACE;SUPERPACSEMERGE

2010NABPAC

DEFEATSANTI-PACPROVISIONINH.R.5175“FOREIGN

NATIONAL”/USSUBSIDIARIES

2003SUPREMECOURTUPHOLDSMCCAIN-FEINGOLDSOFTMONEYBANANDELECTIONEERINGPROVISIONS

2012NABPACANNOUNCESSUPPORTFORINCREASEANDINDEXATIONOFPACLIMITS,PRIORAPPROVAL

REFORM;ENDTOANNUIALAGGREGATECONTRIBUTION

LIMITS

2018ANTI-

CORPORATEPACRHETORIC

SURGES,NABPACGEARSUPFORANOTHERFIGHT

2012NABPACCALLS

FORDIFFERENTIATION

BETWEENTRADITIONAL

PACSANDSUPERPACS

2014SCOTUSSTIKESDOWNANNUALAGGREGATECONTRIBUTIONLIMITS

2014MCCONNELL,REIDAGREETONEWPARTYCOMMITTEELIMITSINOMNIBUS

2015FREEDOMCAUCUSSCUTTLESMCCONNELLOMNIBUSPLANTOINCREASEPARTYCOORDINATEDSPENDINGLIMITS

Consequencesof2018Elections

Developments

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o Legislativeo BallotMeasureso Judicialo CorporateAccountability

Legislative

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

Legislative

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

Legislative

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o Whereaforeignnational“hasthepowertodirect,dictate,orcontrolthedecisionmakingprocessofthecorporationwithrespecttoitsinterestsintheUnitedStates.”

o AnysuchcompanywouldbeprohibitedfromoperatingaPAC.

Legislative

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

Legislative

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

Legislative

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

Legislative

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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

BallotMeasures

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

o Banonforeigncorporatecontributions–o ND

o ApplyingstaterequirementsonfederalPACs–o MO

Judicial

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o Federalcourtcaseshavefocusedondisclosure.o CREWv.FEC:struckdownregulationlimitingdisclosureofdonorstoorganizationsmakingindependentexpenditures.

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

CorporateAccountability

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o CPA-ZicklinIndexo Appearstobegrowinginscopeandprominence.

o ShareholderProposalso Continuetobeproposedandhavecausedcorporationstoreactbyplacinginformationaboutpoliticalactivitiesonwebsites.

ChangingtheNarrativeandOpeningMinds

DefiningtheProblem

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CurrentEnvironment

o Anti-PACpledgeso CorporatePACsaredarkmoneyo Anti-PACrhetoric

CreatingaPlan

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EFBAdvocacyandFederalStreetStrategies

o ExcellentCFRknowledge/historyo Relationshipswithkeyinfluencers/reporters/MOCs

o Socialmediaadvocacyo Bi-partisanteam

NABPACplan:

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1)  ShiftthepublicnarrativethatcorporatePACsarebad/neutralize

2)  EducateCongressontheneedto“modernize”campaignlaw…akareform

Goal:Createan18thmonthstrategicplanforNABPACtoimplement

NABPACplan:

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Objectives:•  Developfocused,moderninitiativedesignedtochange

dialogue•  ReintroducetraditionalPACstolawmakers,Hillstaffand

media(whiledifferentiatingfromSuperPACs)•  Explaintheneedforwide-rangingreformonan

antiquatedyettransparenthard-moneysystem•  Providemembershipwithfacts,talkingpointstodefend,

protectandpromotetheirPACsinternally•  Energizeabi-partisangroupofHillchampionsto

preserve•  PromoteandadvancetherolesofPACintheCFsystem

throughspecificlegislativeinitiatives

Dynamics:DividedGovernmentinChangingWorld

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TheNewHouseDynamics

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LeadersandFollowers

o Democratso Leadershipo CommitteeChairso NewFaces

TheNewHouseDynamics

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LeadersandFollowers

o Republicanso LeadershipChallengeso RankingMemberso Changingideologicalbalance

TheSenate:Sameasiteverwas

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Republicans

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

TheSenate:Sameasiteverwas

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Democrats

o Schumer:CanHeMakeaDeal?o ProgressivesRunningforPresidento PACsvs.Grassroots

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PACsAreNotPartoftheProblem

PACsarepart of thesolut ion andtheyhavebeens ince1974

HowDoWeChangeTheDebate?

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o Westartengaginginit

o Weofferclear,concisearguments

o Weprovidedatatoproveourpoints

HowDoWeChangeTheDebate?

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o Wehitourtargetaudiences

o Weeducate,educate,educate

o Weuseallofthetoolsavailabletous:Membercontacts,socialmedia,earnedmedia,video

RebuttheAttacks

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o PACcontributionsarethecleanestmoneyinpolitics

o PACcontributionsarethemostbipartisaninpolitics

o PACcontributionsinspirepoliticalinvolvement

RebuttheAttacks

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o PACcontributionscomenotfromcorporationsbutfromemployees

o PACcontributionsmoderatethepoliticaldiscourse,becausePACsseekresults

o Weneedtomaketheseargumentsconsistently.

PACsvs.DarkMoney

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ElementsoftheToolKit

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

TheyaretheChampions(WeHope)

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Leadership

o MitchMcConnellandKevinMcCarthy

o ChuckSchumerandStenyHoyer

TheyaretheChampions(WeHope)

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CommitteesofJurisdiction

o HouseAdministration

o SenateRules

TheyaretheChampions(WeHope)

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PartyCommitteeso NRCCandNRSC

o DCCCandDSCC

TheyaretheChampions(WeHope)

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PartyCaucuseso Tri-Caucus

o RSCandTuesdayGroup

o PossibleWomen’sGroups

Educate,Educate,Educate

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Journalists

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

Educate,Educate,Educate

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Politicalreformers

o NormOrnstein

o FredWertheimer

o NormEisen

o ThomasMann

Educate,Educate,Educate

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|45

ThinkTanks

o Brookings

o AEI

o BipartisanPolicyCenter

o CATO

TheLegislativeFramework:Whatdowewantandwhatcanwegive?

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Whatwewant?o IncreasePACcontributionlimittocandidatesforfederalofficeto$10,000andindexforinflation

o IncreasecontributionlimittoPACsfromapprovedemployeesto$10,000

o Reformpriorapprovallawsfortradeassociationswithcorporatemembers

TheLegislativeFramework:Whatdowewantandwhatcanwegive?

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Whatcanwegive?o IncreasetransparencyofcampaignfinancedatatothepublicthroughtheFEC

o ImprovedisclosurelawsforSuperPACsandstrengthenscrutinyofC4’s

Otheroptions?

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InsideGameo MeetwithMembersandstaff

o Cultivatechampions

o DraftLegislation

TacticsandTools

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OutsideGameo InfluencetheInfluencers

o Makethecaseonsocialmedia

o Berealisticontargetaudience

o Rapidlyrespondtotheanti-PACcrowd

o Alwaysbepro-reform

TacticsandTools

TacticsandTools

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|50

Toolso Data:Weneedyourdata(averagecontributiontoPAC,averagedisbursementtocandidate,etc)

o RelationshipswithMemberso Fundraiserso Lobbyists

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

WhatAretheDeliverables

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o Developmentofmessaging,presentationandcollateralmaterialsforusebyyoutouseinternallyatyourorganizationandforeducationbriefingsontheHill

o Astrategiclobbyingplanfocusedono Leadershipoutreacho BuildingabipartisanCongressionalChampionsProgram

o PartyCommitteeeducationandoutreach

WhatAretheDeliverables

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o Acomprehensivesocialmediastrategy

o Presentations,talkingpointsandbackgroundmaterialstobeusedwiththenationalmedia,MembersofCongressandtheirstaffandkeyinfluentials

WhatIstheTimeline?

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|53

ThestrategicplanisduemidDecemberconsistsof4maincomponents:

o EducationPhaseo Media&Influencerso MOCs&Staff

o LobbyingPhaseo ChampionDevelopment&Activationo LegislativeFix

o AdvocacyPhaseo Social,EarnedandPaidMedia

o RapidResponsePhase

WhatIstheTimeline?

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|54

January2019

June2019

March2019

September2019

December2019

March2020

June2020

RAPIDRESPONSE

LOBBYING

EDUCATION

ADVOCACY

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|55

1.  Provideuswithdata(surveyquestions)2.  Decidewhetherornotyou/yourcompany

comfortableparticipatinginthisNABPACinitiative3.  Reviewandbecomeknowledgeableutilizingthe

toolkitwewillprovide4.  InviteHeadofGR/CommstoJanuaryNAPACRap

Sessiontobetterunderstandthisinitiative

Takeawaysandtodos

THENATIONALASSOCIATIONOFBUSINESSPOLITICALACTIONCOMMITTEES|56

QuestionsandDiscussion

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