PART II

SUMMARIES OF STATE CAMPAIGN FINANCE LAWS

Summaries of the campaign finance laws in each state and the District of Columbia are presented in this part of the report. Each summary is a synopsis of the state law in effect through December 31, 2001, concerning the following campaign finance-related subjects:

Contributions and solicitation limitations

Expenditure limitations

Reporting requirements

Post-election requirements

Tax provisions

Public financing provisions

Offenses and penalties

Responsible state agencies

The summaries include the most important requirements of the law as found in statutory codes, and, if available, administrative codes, advisory opinions of the state attorney general, court decisions, and guidance and compliance manuals, materials, and interpretations prepared by the responsible state agency. Since each state summary is current through December 31, 2001, and changes in state statutory and case law after that date are not included, the reader is advised that it is essential that other sources be consulted for subsequent changes. The reader should contact the state agency responsible for the administration and enforcement of the state's campaign finance law (names, addresses, and telephone numbers are included in Chart 1 of the preceding part of the report), or review the most recent amendments to the state's statutory and administrative codes.

The law concerning state and local elections is covered in each summary; however, state requirements for federal elections are also included to the extent that state law has not been superceded by the Federal Election Campaign Act. The provisions of this act and regulations of the Federal Election Commission supercede and preempt any provision of state law with respect to federal office, and the Federal Election Commission has stated by regulation that the act supercedes state law concerning the organization and registration of political committees supporting federal office candidates, disclosure of receipts and expenditures regarding federal office candidates and political committees, and limitations on contributions and expenditures regarding federal office candidates and political committees.

CAMPAIGN FINANCE LAW

IN ALABAMA

I. INTRODUCTION

Alabama requires all political committees to file information on all contributions and expenditures before each election. Corporate contributions are limited to $500 to any one candidate, political committee, or political party per election, and public utilities may not make direct campaign contributions. Government employees may contribute to political activities at all levels of government. All other individuals and entities may contribute unlimited amounts to candidates and committees. Candidates for state office are prohibited from soliciting or accepting contributions when the legislature is in session. Alabama offers no tax incentives for political contributions, but provides a tax surcharge mechanism for designating contributions to political parties. The Secretary of State is responsible for overseeing the campaign finance provisions of the law. The state political parties have imposed a separate set of regulations for party primaries.

II. CONTRIBUTION AND SOLICITATION LIMITATIONS

A. Definition of and Solicitations for Candidates. A candidate is an individual who has done any of the following: either taken the action necessary under Alabama law to qualify himself or herself for nomination or election for any state or local office, including, as an independent seeking ballot access, on the date when he or she files a petition in the appropriate office for the elected position sought, or; received contributions or made expenditures, or given another person consent to do so, with the view of bringing about his or her nomination or election to a state office or local office [1]. A person is not considered to be a candidate until he or she has contributions or expenditures in the following amounts: 1) $25,000 or more for election or nomination to a state office other than the one filled by election of the registered voters of any circuit or district within the state; 2) $5,000 or more for nomination or election to any state office, excluding legislative office, filled by election of the registered voters of any circuit or district; 3) $10,000 or more when seeking nomination or election to the Alabama Senate and $5,000 when seeking nomination or election to the Alabama House of Representatives; and 4) $1,000 or more when seeking nomination or election to any local office [2].

A candidate, public official or principal campaign committee may only accept, solicit or receive contributions to influence the outcome of an election and not more than 12 months before an election in which a person intends to become a candidate [3]. The candidate may also solicit contributions for a period of 120 days after the election in which that person was a candidate, but only to the extent of their campaign debt as indicated on the campaign financial disclosure form or to the extent of reaching the threshold that is required for qualification as a candidate for the office which he or she currently holds [4]. The section on the campaign debt of the candidate or of his or her principal campaign committee does not apply to any prior candidate or current elected official who filed a verified statement of such debt on or before October 1, 1995 [5]. Such debt must have been created on or before January 1, 1995 and be directly related to lawful campaign expenditures, provided, however, that any candidate or elected official whose election is challenged may then accept, solicit and receive campaign contributions for the purpose of paying all expenses associated with the election challenge [6].

B. Definition of Contribution. A contribution is a gift, loan advance, deposit of money or anything of value, a payment, forgiveness of a loan, or payment of a third party, made for the purpose of influencing the result of an election [7]. A contribution includes a contract or agreement to make a gift, subscription, loan, advance, or deposit of money or anything of value for the purpose of influencing the result of an election [8]. A contribution also includes a transfer of anything of value received by a political committee from another political committee, political party, or other source [9], or the payment of compensation by any person for the personal services or expenses of any other person if such services are rendered or expenses incurred on behalf of a candidate, political committee, or political party without payment of full and adequate compensation by the candidate or entity [10].

A contribution does not include payment of compensation by a corporation to establish, administer, or solicit voluntary contributions to a separate segregated fund established under law [11]. A contribution also does not include the value of services provided without compensation by individuals who volunteer a portion or all of their time on behalf of a candidate or political committee [12]; the use of real or personal property and the cost of invitations and food or beverages that are voluntarily provided by an individual to a candidate or political committee in rendering voluntary personal services on the individuals residential or business premises for election-related activities [13]; sale of food or beverage by a vendor for use in an election campaign at a charge to a candidate or political committee less than the normal comparable charge, if the charge to the political committee is at least equal to the vendors cost [14]; an unreimbursed payment for travel expenses made by an individual who on his or her own behalf volunteers personal services to a candidate or political committee [15]; payment by a state or local committee of a political party of the cost of preparation, display, or mailing or other distribution incurred by the committee with respect to a printed slate card or sample ballot, or other printed listing of two or more candidates for public office [16]; or the value or cost of polling and voter reference data and information if provided to a candidate or political committee, unless the information was compiled with the advance knowledge and approval of the candidate or political committee [17].

B. Limitations on Nature of Contributions. A corporation may contribute to an individual seeking public office even though the person has not yet formally qualified nor made a public announcement of candidacy [18].

A person may not make a contribution in the name of another, or permit another person to use his or her name for such a purpose [19].

C. Limitations on Amount of Contributions. An individual, political party, labor union, political action committee, or other political committee is permitted to contribute unlimited amounts to any individual campaign [20].

A corporation, other than a public utility that is regulated by the public service commission, is permitted, in each separate election, to contribute money or inkind services not to exceed $500 to any one candidate, political committee, or political party, or to aid or defeat any question or proposition [21]. A parentsubsidiary corporation is considered to be a single entity for the purposes of the $500 limit [22]. A corporation is not limited in the number of $500 contributions that it may make [23]. The Attorney General of Alabama has issued an opinion that the $500 limitation on corporate contributions to aid or defeat a ballot question or proposition is unconstitutional [24]. A nonprofit corporation may contribute unlimited amounts in support of, or in opposition to, any ballot question or proposition [25]. A corporation regulated by the publ