During a recent special session of the Ohio General Assembly, a new law was enacted that will now prohibit certain, previously allowable campaign contributions and expenditures. This law change will impact donors, candidates, campaigns, and political action committees over the Labor Day weekend, and may require immediate steps be taken by Ohio political action committees (PACs) and campaigns to ensure compliance with the new law.
Contributions by Foreign Nationals Prohibited. Amended Substitute House Bill Number 1 of the Special Session of the 135th General Assembly enacted Revised Code Section 3517.121, which prohibits foreign nationals from:
Making contributions, expenditures, or independent expenditures in support of or opposition to either (1) a candidate for any elective office in Ohio, or (2) a statewide ballot issue or question in Ohio;
Making a contribution to a candidate, campaign committee, a PAC, or various other similar entities;
Making a disbursement for the direct cost of producing or airing an electioneering communication; and
Promising, either expressly or implicitly, to do any of the above.
Broadly speaking, the term “foreign national” not only includes non-U.S. citizens including green card holders, but also includes a business entity that is organized under the laws of, or has its principal place of business, in a foreign country.
Soliciting and Receiving Contributions from Foreign Nationals Similarly Prohibited. The new law also prohibits individuals, candidates, PACs, and various other similar organizations from knowingly soliciting, accepting, or receiving any funds from a foreign national that would violate the restrictions described above. Further, individuals, candidates, PACs, and various other similar organizations are prohibited from knowingly making a contribution, expenditure, or independent expenditure with funds received from a foreign national for any of the purposes described above.
PACs Should Take Immediate Action. PACs operating in Ohio could run afoul of this new law in a number of ways, including:
1. By soliciting and/or accepting contributions from foreign nationals for any of the purposes above.
2. By contributing to Ohio candidates, campaigns, or other PACs using funds they know were provided by foreign nationals for any of the purposes above.
These new restrictions raise a plethora of issues and pitfalls for unsuspecting PACs, and some best practices should be adopted to mitigate violations or the appearance of violations.
Our legal team is ready to help businesses understand how these new restrictions could impact their own PACs. If you have questions or want to discuss your concerns, contact Frank Strigari or Tom Zaino of our Firm.
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