Late last year, the Colorado Secretary of State's Office promulgated new regulations that will significantly increase the reporting requirements for Federal PACs making state or local contributions in Colorado. As interpreted by the Secretary of State's Office, the new regulations require a Federal PAC to do all of the following in order to make contributions to state or local candidates in Colorado:
- Itemize all contributions and expenditures of $20 or more on reports filed with the FEC, even those that do not pertain to Colorado elections;
- List the occupation and employer of any person who has made a contribution of $100 or more on reports filed with the FEC;
- Use only contributions received by the committee that are within contribution limits established by Colorado law to support or oppose state or local candidates in Colorado; and
- Create a separate, stand-alone bank account in which to deposit funds intended to support or oppose state or local candidates in Colorado.
These regulations will go into effect January 30, 2008. Given the burdens imposed by these new rules, many Federal PACs may decide to cease participating in Colorado state and local elections. We can advise you on the process for terminating your Federal PAC registration in Colorado as well as on the process for creating a new Colorado state PAC.