§1491.9. Joint fundraising; joint fundraising representative or committee; authority,
requirements, and prohibitions
A.
(1)Committees may, pursuant to a written joint fundraising agreement, engage in
joint fundraising efforts with other committees registered with the supervisory committee
pursuant to this Chapter, committees registered with the Federal Election Commission, or
with unregistered committees and organizations including any of the following:
(a)A principal campaign committee.
(b)A state party central committee, or committee designated thereby.
(c)A leadership committee.
(d)An independent expenditure-only committee.
(e)An organization exempt from federal income tax under Section 501 of the
Internal Revenue Code.
(f)An entity that accepts contributions and makes expenditure
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§1491.9. Joint fundraising; joint fundraising representative or committee; authority,
requirements, and prohibitions
A.(1) Committees may, pursuant to a written joint fundraising agreement, engage in
joint fundraising efforts with other committees registered with the supervisory committee
pursuant to this Chapter, committees registered with the Federal Election Commission, or
with unregistered committees and organizations including any of the following:
(a) A principal campaign committee.
(b) A state party central committee, or committee designated thereby.
(c) A leadership committee.
(d) An independent expenditure-only committee.
(e) An organization exempt from federal income tax under Section 501 of the
Internal Revenue Code.
(f) An entity that accepts contributions and makes expenditures for a gubernatorial
transition and inauguration pursuant to R.S. 18:1501.3.
(2) For purposes of this Section, "participants" means all committees and
organizations that enter into a joint fundraising agreement.
B.(1) Prior to engaging in joint fundraising activities, the participants shall execute
a joint fundraising agreement. The agreement shall designate a joint fundraising
representative as provided in Subsection C of this Section and establish an allocation formula
as provided in Subsection E of this Section.
(2) The joint fundraising representative shall file the written agreement with the
supervisory committee within ten days after the date that the agreement is executed. If a
committee is designated as the joint fundraising representative, the committee chairman shall
file the written joint fundraising agreement with the supervisory committee within ten days
after the date that the agreement is executed or within ten days following the date that the
committee's statement of organization is filed with the supervisory committee, whichever is
later. A joint fundraising committee's statement of organization and written joint fundraising
agreement may be filed electronically by facsimile or through the Board of Ethics
Computerized Data Management System as provided in R.S. 18:1485 and R.S. 42:1158.
(3) The joint fundraising representative shall retain the written joint fundraising
agreement for a period of at least six years following the last joint fundraising effort
conducted pursuant to the agreement.
C. The participants shall designate a joint fundraising representative pursuant to one
of the following:
(1) The participants may designate a person, including a professional fundraising
firm, accounting firm, or other agent, to serve as the joint fundraising representative. In such
case, each participant shall report the contributions received through a joint fundraising effort
as if the contributions were received directly by the participant from the contributor and as
if the participant's share of expenses of the joint fundraising effort were made directly by the
participant, to be reported as an expenditure of the participant. Notwithstanding R.S.
18:1483(24), a person shall not be considered a political committee if acting solely as a
financial agent to solicit and receive contributions for participants, distribute contributions
to participants, or make expenditures on behalf of participants as provided in this Section.
(2) The participants may designate a political committee to serve as the joint
fundraising representative, referred to in this Section as a "joint fundraising committee". A
joint fundraising committee shall report all contributions made to the joint fundraising effort
as contributions to the joint fundraising committee and shall report the distribution of
proceeds pursuant to this Section as expenditures made to the participants pursuant to R.S.
18:1491.6, 1491.6.1, and 1491.7. Each participant shall report the amounts received from
the joint fundraising committee as contributions from each contributor. The joint fundraising
committee chairman shall be responsible for all duties of the joint fundraising representative
provided for in this Section. Within ten days following the execution of the joint fundraising
agreement, the joint fundraising committee shall file a statement of organization with the
supervisory committee as provided in R.S. 18:1491.1.
D.(1) The joint fundraising representative shall make expenditures and shall collect
contributions, pay fundraising costs from gross proceeds and from funds advanced by
participants, and disburse net proceeds to each participant as provided in this Section.
(2) The joint fundraising representative shall be responsible for managing all joint
fundraising activities, including but not limited to the following:
(a) Recordkeeping and reporting as required by this Chapter or federal law.
(b) Collecting all contributions on behalf of the participants.
(c) Paying all costs of the joint fundraising effort incurred with gross proceeds from
the dedicated depository account or from funds contributed to the dedicated depository
account by the participants.
(d) Distributing net proceeds to each participant according to the allocation formula
or as otherwise provided in this Section.
E. The allocation formula adopted by the participants shall be stated in the written
agreement as the amount or percentage of each contribution received to be allocated to each
participant. If a participant participates solely for purposes of receiving contributions to retire
outstanding debts, the allocation formula shall provide that if contributions allocated to the
participant exceed the outstanding debts, the allocation formula shall be adjusted.
F. The joint fundraising representative shall establish a dedicated depository account
to be used solely for the receipt of contributions received through the joint fundraising effort,
the payment of costs associated with the joint fundraising effort, and distribution of
contributions received to the participants. Only lawful contributions and advanced funds
shall be deposited into the dedicated depository account.
G.(1) The fundraising representative shall collect and provide to participants all
contributor information required by R.S. 18:1491.7.
(2) Participants shall provide to the joint fundraising representative all contributor
information related to contributions received by the participant during the contribution
period.
(3) Prior to distributing any contributions received through the joint fundraising
effort, the joint fundraising representative and participants shall review contributor records
and determine whether any contributions violate the provisions of this Chapter.
H.(1) Except as provided in Paragraph (2) of this Subsection, the amount of funds
advanced by each participant for fundraising costs shall be made in proportion to the
allocation formula.
(2) A participant may advance more than its proportionate share of the fundraising
costs, however, the amount advanced in excess of the participant's proportionate share shall
be considered a contribution made to the other participants in accordance with the allocation
formula, subject to the contribution limitations provided in R.S. 18:1505.2.
I.(1) A person not otherwise prohibited by this Chapter from making contributions
to each participant may make a contribution to a joint fundraising effort, subject to the
contribution limits provided in R.S. 18:1505.2.
(2) The maximum contribution that may be received by the joint fundraising
representative from a contributor shall not exceed the contribution limitations set forth in
R.S. 18:1505.2 for each participant in the aggregate less any contributions previously
received by each respective participant from the specific contributor.
(3) Contributions may be designated by a contributor for a specific participant or
participants. The calculation of the maximum contribution limitation for that specific
contribution shall only include the maximum lawful amount for the participant or
participants from the particular contributor.
(4) For purposes of calculating the maximum contribution limitation, gross proceeds
shall be considered for the calculation of the amount of funds received by each participant.
J. The joint fundraising representative shall deposit all contributions received
through the joint fundraising effort in the dedicated depository account. If one or more
participants may lawfully accept contributions that another participant may not lawfully
accept, the joint fundraising representative may either deposit such contributions in a second
depository account established for that purpose or may forward such contributions directly
to the appropriate participant or participants.
K.(1) The joint fundraising representative may distribute fundraising proceeds to
participants only after sufficient contributions are received and correlating fundraising costs
are paid.
(2) For reporting purposes, the date a contribution is deposited in the account of the
party responsible for reporting the contribution shall be deemed the date of receipt of the
contribution. For electronic transmission of a contribution, the date of the completed
transmission to the party responsible for reporting the contribution shall be deemed the date
of the receipt of the contribution.
(3) Participants shall report joint fundraising proceeds in accordance with R.S.
18:1491.6, 1491.6.1, and 1491.7 in the reporting period in which they are received by the
participant. If any contributor's information is not known by the close of the reporting
period, the participant or participants shall report all available information and amend the
appropriate report once all contributor information is known, but no later than fifteen days
after the close of the reporting period.
L.(1) Reallocation of surplus funds shall be based upon the remaining participants'
proportionate shares under the allocation formula. However, if reallocation would result in
a violation of a contribution limit provided in R.S. 18:1505.2 or federal law, the joint
fundraising representative shall return to the contributor the amount of the contribution that
exceeds the limit.
(2) Notwithstanding Paragraph (1) of this Subsection, designated contributions
which exceed the contributor's limit to the designated participant may not be reallocated by
the fundraising representative without the prior written permission of the contributor.
M.(1) Fundraising costs of a joint fundraising event shall be paid by the joint
fundraising representative from the gross proceeds of the event.
(2) The joint fundraising representative shall calculate each participant's
proportionate share of fundraising costs based on the allocation formula set forth in the joint
fundraising agreement. If any contributions are received from prohibited sources and
distributed only to participants that may lawfully accept such contributions or contributions
are designated for a certain participant or participants, those funds shall not be included in
gross proceeds for the purpose of allocating expenses.
(3) The joint fundraising representative shall calculate each participant's share of the
proceeds by subtracting fundraising costs from the gross proceeds and allocating the
remaining amount in accordance with the allocation formula.
(4) The costs from a series of fundraising events or activities shall be allocated
among the participants of each individual event.
N. Any solicitation for contributions made pursuant to this Section shall include a
joint fundraising notice. The notice may be made accessible via a hyperlink or QR code,
provided the recipient shall take no more than one action to view the disclaimer. The notice
shall include the following information:
(1) The names of all the participants of the joint fundraising effort.
(2) The allocation formula adopted by the participants.
(3) A statement that, notwithstanding the allocation formula, a contributor may
designate a contribution for a particular participant or participants.
(4) A statement that contributions will be distributed in accordance with the
allocation formula unless the distribution would exceed the maximum contribution that may
be received by a participant, a participant is prohibited from accepting a contribution from
the contributor, or the contribution is designated for a particular participant or participants.
(5) If one or more participants engage in a joint fundraising activity solely to receive
contributions to pay outstanding debts, a statement informing contributors that the allocation
formula may be adjusted if a participant receives sufficient contributions to pay its
outstanding debts.
(6) A statement that contributions will be distributed only to those participants that
may lawfully accept them.
O. The joint fundraising representative shall retain all records required by R.S.
18:1491.5 regarding disbursement of contributions for a period of at least six years following
the date of the disbursement.