Can a corporation (or a legal business entity) may make contributions for the purpose of influencing state elections in Georgia?  Specifically, can a corporation may make a contribution to a state PAC?

 

THE ANSWER IS YES!

 

You are correct that federal campaign finance law prohibits a corporation from making contributions related to federal elections.  See 11 C.F.R. s 114.2. 

 

There is no similar state prohibition, however, that restricts a corporation from making a state campaign contribution.  In fact, under state law, a corporation is specifically included in the definition of "independent committee," which is an entity that receives donations and "expends such funds for the purpose of affecting the outcome of an election for any elected office or to advocate for the election or defeat of any particular candidate."  O.C.G.A. s 21-5-3(15). Corporations are also included in the definition of "political action committee."  See id. at s 21-5-3(20)(A).

 

Georgia law provides that "a person, corporation, political committee, or political party may contribute up to the maximum amount otherwise allowable under this article to such [candidate] or such [candidate's] campaign committee for the purpose of influencing such candidate's nomination or election . . . " Id. at s 21-5-42(emphasis added).

 

The statute that sets forth the contribution limits applies those limits to corporations: "No person, corporation, political committee, or political party shall make, and no candidate or campaign committee shall receive from any such entity, contributions to any candidate for state-wide elected office which in the aggregate for an election cycle exceed . . . "  Id. at s 21-5-41(a) (emphasis added).

 

Take a look at the Georgia Administrative Code, rule 189-6-.03, which is entitled "Maximum Allowable Contribution by Corporation."

 

Keep in mind that the contribution limits described in the statues apply to contributions made to candidates, not to PACs, but the points made show that corporations are entitled to make campaign contributions.