Contribution "Conduit" Must Register as Ohio PAC

Maria J. Armstrong
Bricker & Eckler LLP
April 2006

Full text of the OEC opinion

An on-line "conduit" for political contributions must register with the Ohio Secretary of State as a political action committee ("PAC") in order to participate in Ohio elections. On March 30, 2006, the Ohio Elections Commission ("OEC") ruled that ActBlue, a political committee registered with the Federal Elections Commission, must also register with the Ohio Secretary of State before making contributions to state and local candidates in Ohio. ActBlue solicits from contributors across the country, then acts as a "conduit" to forward contributions to the candidates or other political organizations identified by those contributors.

In reaching its decision, the OEC distinguished organizations like ActBlue from independent vendors who are paid by campaign committees to process credit and debit card transactions over the Internet. Unlike a paid vendor, ActBlue actively solicits contributions and is not paid for its services by the candidate committee. Under Ohio law, the OEC ruled, ActBlue's activities require that it be defined and treated as a PAC. Significantly, ActBlue cannot make contributions in the name of its individual donors, but must make contributions under its own name and subject to contribution limits applicable to all Ohio PACs.

As a result of this Opinion, ActBlue and similar conduit companies must register with the Ohio Secretary of State and abide by all Ohio laws regulating activities of PACs regarding state and local candidates, parties, and other political committees.