PCC, Inc. as corporation can engage in political activity...but...

In response to my query about the PCC, Inc. and their "support" for candidates in the most recent election, Counsel from Ralph Mollis's office sent the following reply today which affirms the rights of corporations to engage in such activities — purely from the perspective of RI corporate law. It defers to the RI Board of Elections (from whom, still no reply) on the campaign finance implications.

Your e-mail touches on two areas: corporations and campaign finances. I will first address the corporations aspect. In Rhode Island, pursuant to R.I.G.L. Section 7-6-4, a non-profit corporation may be created to promote political activity. The statute sets forth in part the following purposes:
   (1) Charitable; benevolent; eleemosynary; educational; civic; patriotic; political; religious; social; recreational; fraternal; literary; cultural; athletic; scientific; agricultural; horticultural; animal husbandry; health services; and professional, commercial, industrial, or trade association;
I have reviewed the purpose set forth in the Articles of Incorporation filed by the Portsmouth Concerned Citizens, Inc. and find that its purpose is in accordance with the statute referenced above and that the activity you describe is a political one which is clearly authorized by the statute.

As for your concerns as to the filing as a political action committee and the campaign finance laws, I would set forth to you that the Secretary of State’s Office does not have any involvement in such. Pursuant to Title 17 of the Rhode Island General Laws, the enforcement of campaign finance laws rests with the Board of Elections.

While I'm pretty sure the candidates who received support are in the clear (there was no implication of coordination, as far as I can tell from what they have said to me) I'm looking forward to hearing what the Board of Elections has to say about the PCC's activity.

And, for those who might have wondered, bloggers, at least on the Federal level, are immune from campaign finance restrictions, per an FEC ruling this week. Just in case anybody wasn't sure.