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Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release August 29, 2003 #03-36
E-mail: [email protected]

AMERICA’S COMMUNITY BANKERS PETITIONS FEC TO ALLOW PAYROLL DEDUCTIONS OF CAMPAIGN CONTRIBUTIONS

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WASHINGTON, D.C. — America’s Community Bankers and COMPAC, its political action committee, petitioned the Federal Election Commission today to make it easier for certain individuals to make campaign contributions by using payroll deduction.

The petition builds on an advisory opinion issued on Aug. 28 clarifying that executives of companies may collect and forward contribution checks to their trade group’s political action committee.

The ACB petition seeks to allow the use of payroll deduction to facilitate the voluntary contributions from a company’s executives and administrative staff and employee shareholders.

“This change would make it easier for individuals to participate in the electoral process and allow for trade associations to raise fully regulated federal funds more efficiently,” said Michael W. Briggs, ACB’s chief legal officer.

“The change also would more accurately reflect the transformation of the American payments system that has occurred since the law was enacted in 1976,” he added. “Direct depositing and debiting have become a primary medium for making regularly scheduled deductions.”

Briggs explained that there is nothing in the statute that would limit the method of facilitating contributions, nor is there any discussion in the commission’s regulations about why the payroll mechanism was previously rejected.

The new Bipartisan Campaign Reform Act of 2002 eliminated the unlimited donations individuals and corporations were making to the political parties. “One easy way for individuals to remain active in the political process is to make contributions to their company and trade association political action committees,” said Matthew D. Smyth, vice president of COMPAC. “The commission can simplify the method by which individuals can contribute by allowing the use of a payroll deduction mechanism.”

The campaign reform law put new pressure on political action committees by keeping the contribution limits for PACs the same as they were in 1976, but raising individual contribution limits to candidates and parties and indexing them for inflation. “To the extent that the difference between individual and PAC limits continues to diminish, corporations will be less able to make contributions and be involved in the political process,” said Briggs.

The BCRA would also prohibit trade associations from funding certain broadcasts that mention a candidate for federal office. “Because trade associations will have to fund more activity from their PACs, allowing the use of the payroll deduction mechanism will provide trade associations with a greater ability to raise contributions and participate in the political process,” said Briggs.

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America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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