State Farm’s Stance on PACs

State Farm encourages agents and employees (“Associates”) to take an interest in political affairs, to become educated on public policy matters of importance to our business, and to vote. However, State Farm’s long-standing policy prohibits the company’s providing of financial support in any form to candidates for political office. This broad prohibition means that company phones and e-mail cannot be used in supporting candidates, nor can efforts to support candidates be conducted on company time.

PAC Compliance and Operation: Independent from the Company

PACs must comply with what can be fairly complex formation and operational legal requirements. Formation typically requires certain filings with the state; operation typically requires detailed record-keeping and reporting of revenue raised and then donated. PAC leaders, typically Board members, assume full responsibility in ensuring the PAC’s compliance with applicable campaign finance laws. Use of company time or resources in ensuring compliance is prohibited.

In carrying out a primary goal of soliciting and collecting contributions, Associate PACs are prohibited from using company resources (i.e. company time, company phones, company e-mail). Thus, the logical challenges are not insignificant, though they can be overcome through PAC leaders who are willing to dedicate their personal time and resources to the effort.