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Current
Law
Ohio campaign finance law
is very complicated. Ohio law requires that all contributions to
candidates and political parties be reported. This information is
available on the Ohio Secretary of State’s website.
Individuals and Political Action
Committees (PACs) are limited to contributing $10,000 per candidate
per election (Primary and General elections are considered two
elections).
Children under age seven are not
permitted to contribute to candidates.
Political Parties
Direct corporate contributions
are permitted only to the political party committees for operating
expenses. These corporations are limited to $10,000 per election.
However, during federal election years, the political parties’
"Levin Accounts" may accept direct corporate contributions
up to $10,000 for "party building."
There are no limits on
candidate-to-candidate or candidate-to-political party giving and
there are no limits on in-kind contributions from the political party
committees to candidates. This effectively means that there are no
limits on transferring funds between and among candidates, which
allows candidates to circumvent contribution limits. For the
political parties, this has another upside – candidates and office
holders who are good fundraisers are able to help candidates who are
in more competitive races.
When we think of political
parties, we usually think of the two major political parties –
Democrat and Republican. The Ohio Democratic Party and the Ohio
Republican Party each have a committee to support candidates. Each of
the 88 counties also has a local county political party committee.
Only contributors who reside within the county of that county
political party committee are permitted to give to the county
political party.
Electioneering communication.
In Ohio, disclosure extends to
"electioneering communication" or those television or radio
advertisements that include candidates from the time when the
candidate files for office through to 30 days prior to Election Day.
These ads may be paid for with direct corporate and union dollars.
The traditional understanding of "electioneering" is that
it is intended to influence the election. However, in Ohio’s
Alice-in-Wonderland-like law, "electioneering communication"
is not intended to influence elections. These communications
simply include candidates or are "issue ads."
During the 30 days immediately
prior to the primary or general election, any ad with an identifiable
candidate is considered to be "for the purpose of influencing
the election." During these 30-day periods, only "direct
advocacy" is permitted and "electioneering communication"
(as described above) is prohibited. "Direct advocacy" or
PAC advertisements may not be paid for with direct corporate or union
dollars. This is quite different from the definition of
"electioneering communication" in the Bipartisan Campaign
Finance Reform Act of 2002 (BCRA, also known as "McCain-Feingold").
Ohio law means that there is full disclosure of ads with candidates
for an extended period of time, well beyond the scope of BCRA.
It is unlikely that Ohio’s
definition of "electioneering communication" will be upheld
as constitutional. It flips the definition of "electioneering
communication" to mean communication that does not affect
elections. Also, Ohio law requires disclosure beyond the 30 days
before the primary and the 60 days before the general elections that
was upheld as constitutional in McConnell v. FEC in 2003.
No-bid contracts
Ohio law limits campaign
contributions from firms and individuals who receive no-bid contracts
to $1,000 per candidate in the two calendar years prior to a
contract’s approval. A contractor may give after securing a state
contract and a contractor also may have other members of his/her
company give. A contractor may give a maximum of $10,000 per year to
a county political party State Candidate Fund, provided he lives in
that county. Contractors may also give to state political parties.
There is no special disclosure requirement for government
contractors. As a result, the Ohio Secretary of State and the Ohio
Elections Commission are unable to track who is receiving government
contracts and whether the government contractors are violating the
contribution limits.
Tax credits
Any Ohioan who pays state income
tax is entitled to claim a 100 % tax credit for contributions to Ohio
candidates, up to a limit of $50 per individual or $100 for two
persons filing jointly. The tax credit applies only to statewide
(including the Ohio Supreme Court but not including U.S. Senate) and
to state legislative candidates.
Ohio Elections Commission
The Ohio Elections Commission
was created in 1974 as a result of the circumstances surrounding the
Watergate scandal in the early 1970s. Similar to the Federal Election
Commission, the Ohio Commission was created as a means of enforcing
the state’s campaign finance and fair campaign practices laws. The
Ohio Elections Commission has seven members. Six members (three from
each major political party in Ohio) are appointed by the Governor
upon recommendations from the Democratic and Republican caucuses of
the General Assembly. The seventh member may not be affiliated with
either major political party and is appointed by the six partisan
members of the Commission.
The Ohio Elections Commission
provides advice on Ohio election laws, but it does not have
investigative powers. It functions similarly to a court and it hears
complaints from the Ohio Secretary of State, the county Boards of
Elections, or members of the public. The vast majority of its cases
deal with candidates, campaign committees, PACs or corporations that
either file late or fail to file the required campaign finance
reports.
The remainder of the cases
concern whether someone did or did not include a disclaimer on their
political literature, corporate activities in the political arena or
the inclusion of allegedly false statements in campaign materials.
Individuals may file a complaint but only if they have direct
knowledge of some election or campaign finance misdeed. This makes
enforcement of campaign finance and election laws difficult. |