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NADA, AIADA: 1 too many PACs?

November 18, 2010

Dealers could inadvertently violate federal election law if they donate to the political action committee of the National Automobile Dealers Association and to the newly created PAC of the American International Automobile Dealers Association.


Under federal election law, two kinds of PACs exist: connected and non-connected. The PACs of both dealer associations are connected, meaning they solicit funding from only their members. Federal law forbids a connected PAC even from soliciting contributions from a business owner or employee unless that entity has granted written permission for such solicitation.


Important, a dealer who holds memberships in both the NADA and the AIADA can grant solicitation permission to only one connected PAC a year, effectively banning the dealer from donating to both.


The NADA’s political action committee is named the Dealer Election Action Committee, or DEAC. The AIADA’s political action committee is named AIADA PAC.