Associations Sign On to Prior Approval Letter.

A letter signed by ASAE and more than 50 associations was distributed to all members of Congress to ask for their support in eliminating the "prior approval" requirement for trade association political action committees (PACs).

The Federal Election Campaign Act of 1971 states that corporate member trade association PACs can solicit the executive and administrative employees, stockholders, and families of member companies, but first requires that the associations obtain prior written approval from member companies. Additionally, companies can only give one association per year permission to solicit contributions. No other PAC--corporate, labor, or independent--is restricted in a similar fashion. "These two provisions in the law constitute a political gag order for nonprofit trade associations and their corporate members," the letter states. For more information, contact ASAE's Public Policy Division at 202-626-2703.