Chapter 12: Independent Expenditures (The "Super PAC" Rules)

Official Source: Chapter 12 - Primarily Formed Committees Reporting Independent Expenditures

Introduction

This chapter is for committees that want to spend serious money to support or oppose a candidate without asking for that candidate's permission or input. In the political world, these are often called "Independent Expenditure" committees or "Primarily Formed Committees."

The defining feature of this chapter is the Iron Wall. On one side is the candidate; on the other is you. You can spend unlimited amounts of money helping them, but you cannot talk to them about it. If you coordinate, your unlimited spending becomes a "contribution" and is subject to strict limits (and potential legal violations).

What is a "Primarily Formed Committee"?

You fall into this category if you form a group specifically to:

Support or oppose a single state candidate.
Support or oppose a specific group of candidates on the same ballot (e.g., "Recall the School Board").

Since you are not the candidate, and you aren't controlled by them, you are "Independent."

What is an Independent Expenditure (IE)?

An Independent Expenditure is a payment for a communication (like an ad, mailer, or billboard) that meets two criteria:

Express Advocacy: It clearly urges voters to "Vote For" or "Vote Against" a specific candidate or measure.
No Coordination: It is not made at the behest, request, or suggestion of the candidate or their agents.

The "Iron Wall" of Non-Coordination

To keep your expenditure "independent," you must maintain total separation from the candidate.

You cannot discuss campaign strategy with the candidate.
You cannot use the candidate's consultants.
You cannot ask the candidate for feedback on your ads.

If you break this wall, your spending counts as a Non-Monetary Contribution (subject to the limits in Chapter 1). Since most ad buys cost far more than the contribution limit, "coordinating" usually results in an immediate and massive violation of the law.

The Paperwork Triggers

When you start spending money independently, the public has a right to know immediately. The reporting deadlines here are extremely fast—often 24 hours.

1. Form 496: The "Speed Ticket" (24-Hour Report)

This is the most critical form for independent groups during election season.

The Trigger: Making independent expenditures that total $1,000 or more to support/oppose a single candidate during the 90-day election cycle.
The Deadline: You must file within 24 hours of making the expenditure.
Where to File: Electronically with the Secretary of State.
Public Notice: This form is immediately viewable by the public and the press.

Crucial Note: If you buy a TV ad on Monday for $5,000, you file on Tuesday. If you buy another $2,000 ad on Wednesday, you file again on Thursday. Every batch of $1,000+ gets reported.

2. Form 462: The "Sworn Oath" (Verification)

The state requires a human being to sign a legal document swearing that they did not coordinate with the candidate.

The Trigger: Making an independent expenditure of $1,000 or more in a calendar year.
The Deadline: Within 10 days of the first independent expenditure that hits the threshold.
Who Signs: The Principal Officer. This cannot be a figurehead; it must be the person primarily responsible for approving the political activity.
Where to File: Email the signed form to the FPPC at [email protected]. (Do not file this with the Secretary of State).
Frequency: You typically only file this once per election for each candidate you support/oppose.

3. Form 460: The Regular Report

Just like candidate committees, you must file the standard Form 460 at semi-annual and pre-election intervals (see Chapter 10).

Schedule E: List the payment to the vendor (e.g., the printer or TV station).
Schedule D: Summarize the spending by candidate (e.g., "Support Smith" or "Oppose Jones").

The Top 10 Contributor List (Form T10)

If your committee is a major player, you have extra disclosure rules.

The Trigger: If a Primarily Formed Committee raises $1,000,000 or more for the purpose of supporting/opposing a state candidate.
The Requirement: You must file Form T10 listing your top 10 donors.
Updates: You must update this list whenever there is a change in the top 10 donors.

Special Rules for Candidates

Can a candidate spend their own campaign funds to independently support another candidate?

The Prohibition: NO. A state candidate's controlled committee cannot make independent expenditures to support or oppose another state candidate. (This prevents candidates from circumventing contribution limits by "helping" each other independently).
The Exception: A candidate can make independent expenditures to support or oppose a ballot measure.

Action Plan: Making an Independent Expenditure

If you plan to run an ad supporting "Jane Doe for Senate" without her involvement:

Step	Action	Form	Deadline
1	Check Coordination	Ensure no one on your team has talked to Jane Doe's team about this ad.	N/A
2	Buy the Ad	Spend the money (e.g., $5,000 for a mailer).	N/A
3	File 24-Hour Report	Report the $5,000 spend.	Form 496
4	File Verification	Principal Officer signs oath of non-coordination.	Form 462
5	Quarterly/Semi-Annual	Log the expense on your regular ledger.	Form 460

FAQ: Common Stumbling Blocks

Q: I sent a mailer supporting a candidate, but I didn't ask them to approve it. However, I did use a photo I found on their website. Is that coordination? A: Generally, no. Using "republished" materials like photos available to the public is usually allowed. However, if you use their video footage, be careful—it can sometimes trigger coordination presumptions depending on the specific facts.

Q: I am the treasurer. Can I sign the Form 462 Verification? A: Only if you are also the Principal Officer (the person making the decisions). If you are just the bookkeeper, you cannot sign it. The law wants the person calling the shots to be on the hook for the perjury penalty.

Q: I filed the Form 496 with the Secretary of State. Do I need to send the Form 462 there too? A: No. Form 462 goes to the FPPC via email. Sending it to the Secretary of State does not count.

Q: What happens if I accidentally talk to the candidate about the ad? A: You have pierced the "Iron Wall." The expenditure is now a contribution. If the ad cost $10,000, and the contribution limit is $5,500, you have violated the law. You will likely be fined, and the candidate may have to return the "excess" value (which is impossible for an ad that already ran), leading to significant legal issues.