Frequently Asked Questions
- How can a PAC spend its money?
A political action committee can spend money advocating for or opposing candidates, legislation and ballot measures. A PAC also can donate to specific candidates. However, contributions it receives from corporations or union organization cannot be given to a candidate and can only be spent on administrative costs or certain costs associated with soliciting donations.
- What is a specific purpose action committee?
A specific purpose political action committee is one that is created to support or oppose a candidate for municipal office or is created to support or oppose a municipal ballot measure.
- What is a general purpose action committee?
A general purpose political action commitee supports or opposes particular issues or points of views, but not a particular candidate.
- Other than purpose, what is the difference between the two committees?
A noteworthy difference between the two types is that general purpose committees have more flexibility in how they spend contributions. A general purpose committee is able to spend on personal activities, such as a candidate’s entertainment trip (with the exception of money raised from corporations and labor organizations), while a specific purpose committee cannot.
- Is there a limit on how much can be given to a PAC?
No. Texas is one of the few states that impose no limits on how much an individual, business or union can contribute to a political action committee. However, a PAC must appoint a treasurer before receiving more than $500 in contributions. While cities are allowed to impose contribution limits, there are no such regulations in Amarillo. The City of Austin, for example, caps individual contributions to council and mayoral candidates at $350. Because PACs are considered “persons,” the cap in Austin also extends to the committees.
- Can individual contributions be bundled?
No. A specific person can solicit donations, but donations exceeding $50 must be individually logged on the PACs financial report.
- Do political action committees have to report pledged contributions?
Yes. Even if a PAC has not received the actual donation, they must report pledges on their campaign finance report. Those pledges would be listed on a document titled “Schedule B” within the campaign finance report for general contributions and on “Schedule D” for pledged contributions from corporations or labor organizations. Promises to transfer money, goods, services or other things of value are considered contributions.
